Property details
Investment Opportunity | Senior Living - Memory Care, Northeast Region
Property Description
Investment Opportunity | Senior Living - Memory Care
This property is being purchased by an experienced senior housing operator buyer who is seeking $3,000,000 from an equity investor.
Projecting a 19.7% IRR return.
The structure is a 9% preferred return, and thereafter a 70%/30% cash flow split.
Upon full repayment of equity or achieving a 20% IRR, the cash flow split shifts to 50%/50%.
The exit strategy for both assets is to refinance with HUD debt.
The HUD refinance will aim to return 100% of the initial equity investment in approximately 30-36 months.
The Investor’s equity and interest will have priority over the principal’s equity.
22.8% IRR (deal level) and 19.7% IRR (investor level).
Total costs are $10.7mm
Stabilized NOI in year 3 and onward is $1,100,000
And the price per unit of $98k per unit that this buyer is purchasing a nice B class asset for is extremely below replacement cost (replacement cost is close to $250 PSF).
Images
Highlights
- Status:
- Available
- Price:
- $3,000,000
- Cap Rate:
- 19.70%
Property Information
- Property Type:
- Equity Investment
- Industry Type:
- Senior Housing
- Units/Spaces:
- 1
- Purchase Tenure:
- Fee Simple
Existing financing information
- N/A
The information contained herein contains confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient will be prohibited. The information contained herein has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about the accuracy or completeness of the information. As a buyer, it is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this property to you depends on factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. We have no knowledge of this offering other than the information received from Seller or their representatives. We are neither your agent or an agent for the seller. We will not participate in the negotiation of the purchase price or attend the showing of this property. As a buyer, you will be required to indemnify us and hold us harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property.