OFFERING MEMORANDUM Private Pay Memory Care Facility Offering ALBUQUERQUE NEW MEXICO OFFERING MEMORANDUM KW COMMERCIAL 6703 Academy Rd. NE Albuquerque, NM 87109 PRESENTED BY: TIM LOPEZ Senior Managing Director 505.249.8282 TimLopez@KW.com NM #47364 - NM #383210 LORI PARTAIN Associate Director 505.659.1912 LoriPartain@KW.com NM #49013
OFFERING MEMORANDUM Confidentiality & Disclaimer ALBUQUERQUE, NM All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party s intended use or any and all other matters. Neither KW Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party s active conduct of its own due diligence to determine these and other matters of significance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. KW Commercial makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. KW Commercial does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by Albuquerque in compliance with all applicable fair housing and equal opportunity laws. PRESENTED BY: KW COMMERCIAL 6703 Academy Rd. NE Albuquerque, NM 87109 TIM LOPEZ Senior Managing Director 505.249.8282 TimLopez@KW.com NM #47364 - NM #383210 LORI PARTAIN Associate Director 505.659.1912 LoriPartain@KW.com NM #49013 We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction. www.kwcommercial.com 2
OFFERING MEMORANDUM PRIVATE PROPOSAL PAY FOR MEMORY COMMERCIAL CARE PORTFOLIO SERVICES SALE PROPERTY INFORMATION 1 PROPERTY INFORMATION PRIVATE PAY MEMORY CARE PORTFOLIO SALE PROPERTY INFORMATION 1 EXECUTIVE SUMMARY COMPLETE HIGHLIGHTS www.kwcommercial.com 3
PRIVATE PAY MEMORY CARE PORTFOLIO SALE 1 PROPERTY INFORMATION Executive Summary SALE PRICE: $4,000,000 PRIVATE ROOMS: 30 PRICE PER UNIT: $133,333 CAP RATE: 8.1% 2016 NOI: $327,460 MARKET: Memory Care PROPERTY OVERVIEW Since 1995 this private pay facility has provided exceptional and personalized care 24 hours a day. Licensed as Assisted Living this facility is not an institution but rather an assortment of homes built to suit and designed to care for 5 residents each. A staff ratio of 1:5 providing exceptional care in a home setting. PROPERTY FEATURES All Private Rooms Secured Front Door & Backyards Secure Environment Built to Suit Operational since 1995 100% occupancy/waiting list Conveniently located throughout Alb and Rio Rancho Landscaped yards, fruit trees and vegetable gardens www.kwcommercial.com 4
PRIVATE PAY MEMORY CARE PORTFOLIO SALE Complete Highlights 1 PROPERTY INFORMATION PROPERTY HIGHLIGHTS Private Pay Residents All Private Rooms Secured Front Door & Backyards Secure Environment 1:5 Staffing Personalized Care RN on Staff Medication Assistance Daily Activities/Activity Director (2) Home-Cooked Meals Licensed Hairdresser Licensed Massage Therapists INDUSTRY SEGMENT HIGHLIGHTS 1 in 10 Adults 65 or older has Alzheimers 5.5 Million Americans are living with Alzheimers Projected 38,000 Residents in NM will be living with Alzheimers in 2017 Projected 53,000 Residents in NM will be living with Alzheimers by 2025 By 2025, the number of people age 65 and older with Alzheimers is estimated to reach 7.1 million INVESTMENT HIGHLIGHTS Strong verifiable financials Updated homes, built to suit, maintained professionally 100% Occupancy Private Pay Clientele Operational since 1995 www.kwcommercial.com 5
OFFERING MEMORANDUM PRIVATE PROPOSAL PAY FOR MEMORY COMMERCIAL CARE PORTFOLIO SERVICES SALE FINANCIAL ANALYSIS 2 FINANCIAL ANALYSIS PRIVATE PAY MEMORY CARE PORTFOLIO SALE FINANCIAL ANALYSIS 2 FINANCIAL SUMMARY STATEMENT OF REVENUE & EXPENSES 2016
PRIVATE PAY MEMORY CARE PORTFOLIO SALE 2 FINANCIAL ANALYSIS Financial Summary INVESTMENT OVERVIEW Price $4,000,000 Price per Bed 133,333 CAP Rate As Stated Dec 2016 8.1% Real Property/FF&E Tax Cost (Stated 2016) 1,953,542 OPERATING DATA 2016 Contract Revenues 1,755,288 Total Operating Expenses 1,427,827 Net Operating Income 327,460 FINANCING @ LTV 80% AMORTIZED 30 YRS 4% ANNUAL RATE Loan Amount 3,200,000 Down Payment 800,000 Debt Service 183,327 Monthly P&I 15,277 Principal Reduction (yr 1) 56,353 www.kwcommercial.com 7
PRIVATE PAY MEMORY CARE PORTFOLIO SALE Statement Of Revenue & Expenses 2016 2 FINANCIAL ANALYSIS www.kwcommercial.com 8
OFFERING MEMORANDUM PRIVATE PROPOSAL PAY FOR MEMORY COMMERCIAL CARE PORTFOLIO SERVICES SALE Industry Facts & Summary 3 Industry Facts & Summary PRIVATE PAY MEMORY CARE PORTFOLIO SALE Industry Facts & Summary 3 COSTS OF LONG TERM MEMORY CARE FACTS AND FIGURES MEMORY CARE OPPORTUNITY
PRIVATE PAY MEMORY CARE PORTFOLIO SALE Costs Of Long Term Memory Care 3 Industry Facts & Summary www.kwcommercial.com 10
PRIVATE PAY MEMORY CARE PORTFOLIO SALE 3 Industry Facts & Summary Facts And Figures www.kwcommercial.com 11
PRIVATE PAY MEMORY CARE PORTFOLIO SALE Memory Care Opportunity 3 Industry Facts & Summary www.kwcommercial.com 12