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.