JFC Windsor DST

Windsor Senior Living is located along the northwest boundary of downtown Richmond, Virginia. The property is located approximately 4 miles from Richmond’s central business district. The proximity to downtown Richmond also provides access to other economic amenities and benefits. Per the appraisal, the occupancy rate of assisted living in the market is strong with an average occupancy of 96%. The Windsor has reported occupancy of 92%. Windsor Senior Living is located within five miles of 3 different hospitals. Virginia’s population in 2014 is estimated to be 8,334,847 and Virginia is estimated to add another 800,000 every decade with a projected population of 10.5 million by 2049. By 2030, it is estimated that 20% of Virginia’s population will be over 65. According to Geography QuickFacts, Virginia has a population of 1,106,894 in the age range of 65 and older for 2013.

WINDSOR SENIOR LIVING is a Senior Living/Continue Care: Alzheimer Care facility comprised of one building. The Property was completed in 1956, fully renovated in 2013, and is considered to be of generally good quality construction. Windsor Senior Living contains 44 residential dwelling units with capacity for 60 residents. All units are dedicated to memory care services. The building comprises a gross building area of 24,685 square feet, and a net rentable area of 22,501 square feet and is situated on a 2.27-acre site and located at 3600 Grove Avenue, Richmond VA 23221. Since 2012, an additional $2,000,000 was invested in the property, in renovations and conversion to a 100% memory care property. The Project is a two story building constructed of masonry, brick. The masonry structure includes: common hallways, office space, stairways, half baths in each assisted living room, and a common shower/restroom, centrally located. There is a kitchen, dining room, dayrooms, living room, private dining room, nurses station, storage rooms, beauty shop, boiler room, electric room, housekeeping and dietary room, wide hallways, etc. Overall occupancy is around 90% with a majority of the residents private pay.

MERIDIAN SENIOR LIVING – COMPANY PROFILE

Meridian Senior Living (“MSL”) is one of the ten largest seniors housing managers in the country. Based in Hickory, North Carolina and Silver Spring, Maryland, MSL’s management team brings more than a century of senior housing development, acquisition, and management experience. As of January 2015, MSL owns or manages 108 senior care facilities in 12 different states with the capacity to serve more than 8,200 residents. MSL is known for providing senior care services ranging from Independent Living (IL) to Assisted Living and Memory Care (AL, MC).

POTENTIAL CASH FLOW

Seniors housing in general and Windsor Senior Living specifically have proven to provide strong long-term cash flow from operations. Per the terms of this offering, initial cash yields to the investors are projected to be 7.0%. In addition, the senior mortgage is an amortizing loan with amortization starting in the first month of ownership, further strengthening the potential cash flow benefits to investors, as shown in the chart below. These projections are based on various assumptions and may not be achieved if one or more of such assumptions does not occur.