Magnolia-Primrose Senior Living FOR...

tel +1 415 727 9006cell +1 310 962 0781fax +1 510 588 5599

Magnolia-Primrose Senior Living

Jim McKieSenior Housing AdvisorO: (415) 727-9006M: (310) 962-0781F: (510) [email protected] BRE #01240186

Confidential Offering Memorandum presented by:

4630/4620 Song Lane, Santa Maria, CA 98455

4630/4620 Song Lane | Santa Maria, CA

FOR SALE

ContentsTable of

5 Section 1Property Information

9 Section 2Location Information

12 Section 3Financial Analysis

21 Section 4Demographics

23 Section 5About The Company

Confidentiality &Disclosure Agreement

The information contained in the following Investment Summary is proprietary and strictly confidential. It is intended to be reviewed only by the party

receiving it from NAI Northern California Investment Real Estate Brokerage and should not be made available to any other person or entity without the

written consent of Broker. This Investment Summary has been prepared to provide summary, unverified information to prospective purchasers, and to

establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence

investigation. Broker has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the

subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the

presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of

improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue occupancy of the

subject property.

The information contained in the Marketing Brochure has been obtained from sources we believe to be reliable; however, Broker has not verified, and

will not verify, any of the information contained herein, nor has Broker conducted any investigation regarding these matters and makes no warranty or

representation whatsoever regarding the accuracy or completeness of the information provided. All potential purchasers must take appropriate

measures to verify all of the information set forth herein.

4

1Magnolia-PrimroseSenior Living

PROPERTY INFORMATION

ExecutiveSummary

Location Map

1 Mile 5 Miles 10 Miles

Total Households: 855 22,613 51,167

Total Population: 2,183 67,460 169,628

Average HH Income: $84,444 $73,037 $68,031

Demographics

Property Details

Sale Price $8,000,000

Price/Bed $285,714

Price/SF $867

Beds 28

Cap Rate 9.77%

Market Cap Rate 11.46%

NOI $781,456

Lot Size 2.04 Acres

Building Size 9,225 SF

Year Built 2010

6

1 PROPERTY INFORMATION

7

Property Overview

Magnolia and Primrose assisted living senior care homes offer specialized care for adults withAlzheimer’s or other forms of dementia and memory loss. They are located side by sideconsisting of one campus in Orcutt, just outside of Santa Maria, California. The world-famouswine country of Santa Barbara County surrounds the property. Magnolia and Primroseredefine skilled nursing facilities, senior care homes, assisted-living, senior housing, and allother forms of residences that provide long-term health care for the elderly. The carephilosophy is based on the common-sense ideology that human beings thrive in garden-likeenvironments.

Location Overview

The subject is located in North Santa Barbara County, approximately 90 miles northwest ofLos Angeles. Santa Barbara’s economy is expanding at a healthy pace since the beginning of2014, with both the public and private sectors adding jobs. Population growth is forecasted tobe approximately 0.6 percent per year. Per capita income is above statewide levels and abovethe national average, with a relatively high cost of living.

PropertyDescription


8

PhotosAdditional



LOCATION INFORMATION

10

4630/4620 Song Lane

2 LOCATION INFORMATION

RegionalMap

11

2 LOCATION INFORMATION

MapAerial


FINANCIAL ANALYSIS

13

SummaryFinancial

Investment Overview CURRENT PRO FORMA

Price $8,000,000 $8,000,000Number of Beds 28 28Price per Beds $285,714 $285,714Approximate Square Footage 9,225 9,225Price per Square Foot $867 $867CAP Rate 9.77% 11.46%

Operating Data CURRENT PRO FORMA

Gross Scheduled Income $2,040,804 $2,128,608Vacancy Cost - $79,152 - $63,858Gross Operating Income $1,961,652 $2,064,750Operating Expenses - $1,180,197 - $1,148,113Net Operating Income $781,456 $916,637EBITDA $806,772 $999,036Debt Service - $341,667 - $341,667Pre-Tax Cash Flow $439,789 $574,970Cash-on-Cash Return % (yr 1) 22% 28.75%Principal Reduction (yr 1) + $106,582 + $106,582Total Return (yr 1) $546,371 $681,552Return on Investment % 27.31% 34.08%

Financing Data CURRENT PRO FORMA

Loan Amount $6,000,000 $6,000,000LTV 75.00% 75.00%Interest Rate 3.950% 3.950%Debt Service $341,667 $341,667Debt Service Monthly $28,472 $28,472Amortization 30 30

3 FINANCIAL ANALYSIS

14

UnitNumber

Current MonthlyRent

Market MonthlyRent

P-1 $6,896 $6,896

P-2 $6,896 $6,896

P-3a $1,400 $5,835

P-3b $5,835 $5,835

P-4 $6,896 $6,896

P-5 $6,896 $6,896

P-6 $6,896 $6,896

P-7 $6,896 $6,896

P-8 $6,896 $6,896

P-9 $6,896 $6,896

P-10 $6,896 $6,896

P-11 $6,896 $6,896

P-12a $6,153 $6,153

P-12b $6,153 $6,153

M-1a $0 $5,835

M-1b $5,835 $5,835

M-2a $4,800 $5,835

M-2b $5,835 $5,835

M-3a $5835 $5,835

M-3b $5835 $5,835

M-4a $5,835 $5,835

M-4b $3,245 $5,835

M-5a $5,835 $5,835

M-5b $5,835 $5,835

M-6 $6,896 $6,896

M-7 $6,896 $6,896

M-8a $6,153 $6,153

M-8b $6,153 $6,153

Totals/Averages $163,471 $177,384

RentRoll


15

Fixed Expenses Expense Expense / Unit % Of Total % Gross Notes

Insurance and Taxes $27,521 $982 2.33% 1.46%

TOTAL FIXED EXPENSES $27,521 $982 2.33% 1.46%

Operational Expenses:

Operations $410,056 $14,644 34.74% 21.72%

Marketing $74,174 $2,649 6.28% 3.93%

Culinary $72,221 $2,579 6.12% 3.83%

Housekeeping $15,748 $562 1.33% 0.83%

Activities $5,216 $186 0.44% 0.28%

Maintenance and Reserves $29,030 $1,036 2.46% 1.54%

Administrative $525,783 $18,777 44.55% 27.85%

Utilities $20,448 $730 1.73% 1.08%

TOTAL OPERATIONAL EXPENSES $1,152,676 $41,167 97.67% 61.05%

TOTAL EXPENSES: $1,180,197 $42,149 100% 62.51%

SummaryExpense


16

Fixed Expenses Expense Expense / Unit % Of Total % Gross Notes

Projected Insurance Taxes and CapEx Reserves $108,786 $3,885 9.48% 5.27%

TOTAL FIXED EXPENSES $108,786 $3,885 9.48% 5.27%

Operational Expenses:

Operations $410,056 $14,644 35.72% 19.86%

Marketing $45,350 $1,619 3.95% 2.2%

Culinary $83,729 $2,990 7.29% 4.06%

Housekeeping $15,748 $562 1.37% 0.76%

Activities $11,496 $410 1.0% 0.56%

Maintenance and Reserves $29,030 $1,036 2.53% 1.41%

Administrative $317,040 $11,322 27.61% 15.35%

Utilities $20,448 $730 1.78% 0.99%

Management $106,430 $3,801 9.27% 5.15% 5% of Gross

TOTAL OPERATIONAL EXPENSES $1,039,327 $37,118 90.52% 50.34%

TOTAL EXPENSES: $1,148,113 $41,004 100% 55.61%

SummaryPro Forma Expense


17

Sales ComparablesComps

SUBJECT PROPERTY

4630/4620 Song Lane | Santa Maria, CA 98455

$8,000,000Sale Price: 2010Year Built:

$867.21Price PSF: 9,225 SFBuilding SF:

28No. Units: $285,714Price / Unit:

9.77%Cap: $781,456NOI:

750 N MCDOWELL BLVD750 N McDowell Blvd | Petaluma, CA 94954

$14,500,000Sale Price: 23,022 SFBuilding SF:

$629.83Price PSF 60No. Units

$241,666Price / Unit 9.6%CAP:

12/24/2008Closed:

1

1

8190 ARROYO DRIVE8190 Arroyo Drive | Sacramento, CA 92617



$95,138Price / Unit 7.95%CAP:

03/27/0015Closed:

2

2


18

Sales ComparablesComps

20259 LAKE CHABOT ROAD20259 Lake Chabot Road | Castro Valley, CA 94546



$85,054Price / Unit 11%CAP:

04/01/2016Closed:

3

3


19

4630/4620 Song Lane | Santa Maria, CA 98455SUBJECT PROPERTY

Sales ComparablesMap

1

750 N McDowell BlvdPetaluma, CA 94954

2

8190 Arroyo DriveSacramento, CA 92617

3

20259 Lake Chabot RoadCastro Valley, CA 94546


20

SummarySales Comparables

Subject Property Price Bldg. SF Price/SF Price/Unit CAP # Of Units

Magnolia-Primrose Senior Living4630/4620 Song LaneSanta Maria, CA 98455

$8,000,000 9,225 SF $867.21 $285,714 9.77% 28

Sale Comps Price Bldg. SF Price/SF Price/Unit CAP # Of Units Close

1750 N McDowell Blvd

Petaluma, CA94954

$14,500,000 23,022 SF $629.83 $241,666 9.60% 60 12/24/2008

28190 Arroyo Drive

Sacramento, CA92617

$6,850,000 40,236 SF $170.25 $95,138 7.95% 72 03/27/0015

320259 Lake Chabot Road

Castro Valley, CA94546

$7,740,000 25,360 SF $305.21 $85,054 11.00% 91 04/01/2016

Totals/Averages Price Price/SF Price/Unit CAP # Of Units Close$9,696,667 $328.27 $130,454 9.52% 74.33



DEMOGRAPHICS

* Demographic data derived from 2010 US Census

22

Population 1 Mile 5 Miles 10 Miles

TOTAL POPULATION 2,183 67,460 169,628

MEDIAN AGE 49.6 36.7 32.8

MEDIAN AGE (MALE) 49.3 35.5 31.9

MEDIAN AGE (FEMALE) 51.9 37.9 33.6

Demographics

Households & Income 1 Mile 5 Miles 10 Miles

TOTAL HOUSEHOLDS 855 22,613 51,167

# OF PERSONS PER HH 2.6 3.0 3.3

AVERAGE HH INCOME $84,444 $73,037 $68,031

AVERAGE HOUSE VALUE $531,289 $437,125 $406,824

Map

Ethnicity 1 Mile 5 Miles 10 Miles

% HISPANIC 21.4% 41.1% 57.3%

Race 1 Mile 5 Miles 10 Miles

% WHITE 90.5% 85.0% 82.0%

% BLACK 1.1% 1.9% 1.8%

% ASIAN 3.4% 5.1% 5.0%

% HAWAIIAN 0.0% 0.0% 0.0%

% INDIAN 0.5% 0.7% 0.7%

% OTHER 4.4% 7.3% 10.5%

4 DEMOGRAPHICS


ABOUT THE COMPANY

BRE #01240186o +1 415 727 9006c +1 310 962 [email protected]

Senior Housing Advisor

NAI Northern California

Jim McKie

24

5 ABOUT THE COMPANY

Jim brings a wealth of experience in both the real estate and senior living industries to the Company. He began as a residential property managerin 1982. Over the next twenty-six years Jim’s career spanned the gamut from the sale of all manner of real estate including the development ofnew residential home communities, to sales and general management of nationally recognized homebuilders and residential sales companies.While the majority of Jim's professional background has been in real estate, he focused his career into the senior living field in 2008. Jim has heldsenior living industry positions as: Director of Sales and Marketing; Executive Director for both privately owned and publicly traded companies;Regional Director of Operations in the Los Angeles market; and Vice President of Operations of Operations in the San Francisco Bay Area market.Jim is very enthusiastic about bringing all of his qualifications and work experiences together at NAI Northern California.

Senior Living Housing

• Liberal Studies, Northwest Community College• Business Administration, University of Mississippi• Mississippi REALTORS Institute• Sociology, Millsaps College• Certified with California Department of Social Services as a Residential Care Facility for the Elderly, Administrator # 6009611740

• California Alzheimer's Association, active volunteer

Professional Experience & Background

Areas of Specialization

Education

Professional Affiliations & Designations

AgentProfile

o +1c +1

NAI Northern California

25

5 ABOUT THE COMPANY

Memberships & Affiliations

AgentProfile

Magnolia-Primrose Senior Living FOR...

Documents

Transcript of Magnolia-Primrose Senior Living FOR...