MADISON REALTY SENIOR CARE II - AZ, DST

Mesa, Arizona 85206 | Apache Junction, Arizona 85119

Offering Size: $8,600,000

Loaded Purchase Price: $14,800,000

  • Loan Proceeds: $6,200,000
  • Loan-to-Offering Price Ratio: 41.90%
  • Target Master Lease Distribution: 6.65% to 7.40%
  • Minimum Investment[1031]: $100,000

Madison Realty Companies is a full service real estate investment management company. Collectively, its management team has over 150 years of real estate experience. For over 25 years, Madison and its affiliates have purchased, managed, and disposed of over $1 billion in commercial real estate including multifamily, industrial, self-storage, assisted living, senior apartments, skilled nursing, and single-family homes.

American Meadows|American Vistas PROPERTIES

Investors have an opportunity to invest in two stabilized senior care properties with a return objective of both fixed income and value-add.1 The value-add component includes increasing the level of care to capitalize on the fastest growing senior population — those living with Alzheimer’s disease and other forms of Dementia.

INVESTMENT HIGHLIGHTS

Ownership Entity : Madison Realty Senior Care II – AZ, DST (the “Trust” or “DST”)

Managing Broker-Dealer : Orchard Securities, LLC

Offering Structure : DST (for 1031 exchanges)

Offering Size : $8,600,000

Anticipated Percentage of Capital Invested Into the Real Estate  : 87%

Minimum 1031 Investment : 1.162791% Interest ($100,000 equity and $72,093 est. attributable debt)

Who May Invest : Accredited Investors as set forth in the Memorandum

Real Estate Purchase Price : $12,445,000 (Appraised at $12,500,000 as of February 15, 2016)

Combined Price Per Bed : $136,758

Loaded Purchase Price (Including $620,743 of Reserves) :  $14,800,0006

Loans : $6,200,000 (7 years; 25-year amortization; no interest-only period)

Loans to Loaded Purchase Price : 41.9%

Debt Coverage Ratio (Year 1)  : 2.66x

Target Master Lease Distribution : 6.65% to 7.40% (Increases every two years)

Target Yield Amount with Loan Amortization : 8.19% to 9.45%

Estimated Hold Period : 5 to 7 years

INVESTMENT OBJECTIVES

:: STABILITY OF PRINCIPAL

:: INCREASING CASH FLOW

:: GROWTH POTENTIAL

PROPERTY OVERVIEW

American Meadows

537 South Higley Road | Mesa, Arizona 85206

  • Licensed Beds: 35
  • Constructed: 2011-2012
  • Stabilized Occupancy: 90%
  • Location: Phoenix MSA

American Vistas

1510 East Broadway Avenue | Apache Junction, Arizona 85119

  • Licensed Beds: 56
  • Constructed: 2012/2013
  • Stabilized Occupancy: 90%
  • Location: Phoenix MSA

ABOUT MADISON REALTY COMPANIES, LLC

Madison Realty Companies is a full service real estate investment management company that currently operates 22 senior housing properties, two of which are in Utah. Collectively, its management team has over 150 years of real estate experience. For over 25 years, Madison and its affiliates have purchased,managed, and disposed of over $1 billion in commercial real estate including: assisted living, senior apartments, and skilled nursing. All in all, the Sponsor’s primary focus is acquiring cash flowing assets with value-add upside for clients.