Powerful Assisted Living Partnership Seeking Equity, Pacific West Region

Property Description

Powerful Assisted Living Partnership Seeking Equity

Baby Boomers who started turning 65 in 2011. Today, Baby Boomers are now turning 65 at a rate of more than 10,000 per day. The population aged 65 and over is forecasted to grow at an annual rate of 2.9% over the next five years. A 6.2% increase in the number of seniors is more than the total number of the entire existing supply of professionally managed Senior Housing units. To combat this increasing demand, developers from all backgrounds have increased new construction to highs that haven’t been seen since the late 90’s. Despite this increase in construction, occupancy and rent growth have increased since the recession. Additionally, the total return of senior housing from 2007 to 2014 (Great Recession) was 10.2%, which is double that of any other major real estate asset type.

Successful and strong partnership seeking high net worth individuals looking for a solid, passive investment in these uncertain times.

This Partnership consists of:

(1) A respected and successful assisted living owner and operator, with over 30 years of experience.

(2) One of the most well respected and experienced assisted living and memory care providers in the nation with a current estimated portfolio that exceeds $1 billion.

The following are current projects available for investment on a First Come, First Serve basis:

1. Florida: $7 million investment

Built in 2017. Its Certificate of Occupancy was given in June, 2017. The seller is a doctor who built this property as an investment. He manages it himself with no senior housing operational experience. Current occupancy is struggling at 35%. The Property is the newest Assisted Living facility in the area market, allowing for tremendous upside potential. With the experience and expertise this partnership, the acquisition lends itself to be a very exciting investment.

2. Los Angeles, CA Portfolio: $22 million investment.

Very strong real estate.

This portfolio represents a compelling investment opportunity for the following reasons: Attractive Growing Communities: Located in communities with growing population, strong median household incomes, strong average home prices and large populations with strong average household net worth.

Strong Revenues with Low Margins: On a trailing twelve month (“TTM”) basis the portfolio generated approximately $12.19 million of revenue and NOI of $3.19 million for an NOI margin of 26.0%. The partnership believes the portfolio should have an average NOI margin of 30.0%. Improving this margin would increase NOI by approximately $487,000 and improve the in-place yield to 6.5%.

Additional Bed Capacity: Based on the initial inspection, the partnership believes there is physical capacity to add beds, reprice new shared units and generate additional revenue without significant cost increases.

Sustained Revenue Growth: Given the affluence and density of the communities, the partnership believes the portfolio can sustain topline revenue increases well in excess of general inflation and could achieve 5.0% or greater growth in revenues.

Rent Discount: Based on third party rent comparable information the one of the communities, the community has rates that are discounted to competitor communities by an average of $1,394. Capturing a portion of this would increase revenues and cash flows without increases in costs.

This portfolio consisting of three communities containing approx. 225 units and 260 beds.

This portfolio has a mix of standalone-independent, assisted living and memory care.

The partnership has an agreement to acquire the portfolio.

Occupancy for the portfolio has been in the low-90% range with average revenues per unit in the AL/MC operations of approximately $5,000 per month. Based on in-place revenues and expenses, the facility generates approximately $3,189,267 of net operating income representing an in-place capitalization rate of approximately 5.5%.

3. Las Vegas: $6 million investment
Inquire further for details.

The following are generally offered as terms to Limited Partners
Operations Cash Flow:
8% Preferred Cash on Cash Return to LP investors from Operations
60%/40% split on remaining cash flow
Capital Event:
Return 100% capital to LP investment
Return 100% capital to GP investment
60%/40% split on remaining equity from Refinance and Sale

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