The Oaks at Lynchburg DST
1148 W. Legacy Crossing Blvd. Ste. 400 Centerville, Utah 84014
First Mortgage Loan: $4,725,000
Equity Amount: $4,050,000
- Minimum 1031 investment of $100,000
- Projected 7.0% cash-on-cash return in Year 1
- 5 3 .85% LTV
- 1 0 -year term
THE OAKS AT LYNCHBURG, Lynchburg, VA, is an assisted living facility completed in 1991 with an addition in 1999 (the “Project”). The building contains 40 units and is licensed for 61 beds. The 21,887 square foot building is situated on a 4.27-acre site.
1148 W. Legacy Crossing Blvd. Ste. 400 Centerville, Utah
The Project is a single story building consisting of exterior wood-frame walls, brick veneer, a double pane window system, and an asphalt composition roof.
INVESTMENT OPPORTUNITY HIGHLIGHTS
Experienced operator and sponsor principals
- Established assisted living community
- A v erage occupancy over last 3 years of 90% +
- $4,050,000 equity amount
- Minimum 1031 investment of $100,000
- Projected 7.0% cash-on-cash return in Year 1
- $4,725,000 first mortgage loan with Fanny Mae
- 5 3 .85% LTV
- 1 0 -year term
- 3 0 -year amortization starting in month 1
- Anticipated hold period of 8-10 years
THE OAKS AT LYNCHBURG, Lynchburg, VA, is an assisted living facility completed in 1991 with an addition in 1999 (the “Project”). The building contains 40 units and is licensed for 61 beds. The 21,887 square foot building is situated on a 4.27-acre site. The Project is a single story building consisting of exterior wood-frame walls, brick veneer, a double pane window system, and an asphalt composition roof. Common area amenities include a family style dining room with patio, library with fireplace, sun room, walking path, front porch, and distinctive furnishings that accent a rich decor. Each unit is laid out for one or two beds and has a full bathroom. Other building features include an emergency call system, as well as a complete fire and sprinkler system.
Market Overview
Lynchburg is located in central Virginia, in the foothills of the Blue Ridge Mountains along the banks of the James River. Its population as of 2013 was 78,014 (quickfacts.census.gov). Nearby cities include Roanoke, Charlottesville, and Danville. The local market has been recovering well following the recent economic downturn. The unemployment rate at the end of 2013 was 5.3%, which was lower than the national average of 6.7% (www.bls.gov). The population is expected to continue to grow over the next several years with an overall increase in the 65+ age group (US Census Bureau; 2012 National Population Projections).
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 2014, MSL owns or manages 123 senior care facilities in 15 different states with the capacity to serve more than 8,000 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 The Oaks at Lynchburg 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.
ABOUT JF Capital Senior Living
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.
JF Capital Senior Living, LLC
1148 W. Legacy Crossing Blvd. Ste. 400 Centerville, Utah 84014
For more information or to request a PPM, please contact our office at:
Tel: (801) 335-8500
Email: info@jfcapital.com
Securities offered through Orchard Securities, LLC.
Member FINRA/SIPC.