magnolia-primrose senior living for...
TRANSCRIPT
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.
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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
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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
1 PROPERTY INFORMATION
8
PhotosAdditional
1 PROPERTY INFORMATION
2Magnolia-PrimroseSenior Living
LOCATION INFORMATION
10
4630/4620 Song Lane
2 LOCATION INFORMATION
RegionalMap
11
2 LOCATION INFORMATION
MapAerial
3Magnolia-PrimroseSenior Living
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
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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
3 FINANCIAL ANALYSIS
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
3 FINANCIAL ANALYSIS
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
3 FINANCIAL ANALYSIS
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
$6,850,000Sale Price: 40,236 SFBuilding SF:
$170.25Price PSF 72No. Units
$95,138Price / Unit 7.95%CAP:
03/27/0015Closed:
2
2
3 FINANCIAL ANALYSIS
18
Sales ComparablesComps
20259 LAKE CHABOT ROAD20259 Lake Chabot Road | Castro Valley, CA 94546
$7,740,000Sale Price: 25,360 SFBuilding SF:
$305.21Price PSF 91No. Units
$85,054Price / Unit 11%CAP:
04/01/2016Closed:
3
3
3 FINANCIAL ANALYSIS
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
3 FINANCIAL ANALYSIS
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
3 FINANCIAL ANALYSIS
4Magnolia-PrimroseSenior Living
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
5Magnolia-PrimroseSenior Living
ABOUT THE COMPANY
BRE #01240186o +1 415 727 9006c +1 310 962 [email protected]
Senior Housing Advisor
NAI Northern California
Jim McKie
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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
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5 ABOUT THE COMPANY
Memberships & Affiliations
AgentProfile