midway meadows - nic
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MIDWAY MEADOWS110-UNIT SENIORS HOUSING COMMUNITY
MT. PROSPECT, ILLINOIS
This Offering Memorandum has been designed solely for the purposes of the 2017 NIC Fall Conference Seniors Housing Boot Camp,and will serve as a primary resource for the workshop discussions. The operations, properties and entities in this memorandum areentirely fictitious. Any resemblance or similarity to actual properties, care types, unit mixes or comparable’ is entirely coincidental.
2017 NIC Fall Conference
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CASE STUDY OFFERING MEMORANDUM
CONFIDENTIALITY & DISCLAIMER
The operations, properties and entities depicted in this offeringmemorandum are entirely fictitious. Any resemblance or similarityto actual properties, care types, unit mixes or comparables isentirely coincidental.
EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUEDILIGENCE.
Any party contemplating or under contract or in escrow for a transaction is urgedto verify all information and to conduct their own inspections and investigationsincluding those completed through appropriate third party independentprofessionals selected by such party. All financial data should be verified by theparty and applicable documents should be obtained and reviewed by each partyand/or its third party independent professionals and consultants. There are nowarranties and/or representations regarding the veracity, completeness, orrelevance of any financial data or assumptions. All data and assumptionsregarding financial performance, including that used for financial modelingpurposes, may differ from actual data or performance. Any estimates of marketrents and/or projected rents that may be provided to a party do not necessarilymean that rents can be established at or increased to that level. Parties mustevaluate any applicable contractual and governmental limitations as well asmarket conditions, vacancy factors and other issues in order to determine rentsfrom or for the property.
Legal questions should be discussed by the party with an attorney. Tax questionsshould be discussed by the party with a certified public accountant or taxattorney. Title questions should be discussed by the party with a title officer orattorney. Questions regarding the condition of the property and whether theproperty complies with applicable governmental requirements should bediscussed by the party with appropriate engineers, architects, contractors, otherconsultants, and governmental agencies.
CONTENTS
Pages
1. OFFERING OVERVIEW 3
2. PROPERTY INFORMATION 6
3. COMPETITIVE LANDSCAPE 9
4. COMPARABLE SALES 10
5. FINANCIAL DATA 11
OFFERING OVERVIEW
MIDWAY MEADOWS | 110 UNITS | MT. PROSPECT, IL
Name: Midway Meadows
Location: Mount Prospect, IL
Care Type(s): AL | MC
Total Units: 110 Units
Licensed Beds: 120 Beds
Lot Size: 1.5 AC
Building Size: 95,623 SF
Year Built: 2001
OFFERING OVERVIEW
We are pleased to present the offering of Midway Meadows, a 110-unit assisted living
community located within the affluent sub-market of Mount Prospect, a part of the
greater Chicago metropolitan area. Midway Meadows presents an attractive
opportunity to acquire a reputable community with strong in-place operations
accompanied by multiple paths to achieve additional upside for an incoming investor.
The building stands to increase its competitive position in the local market by
completing a resident unit renovation project currently underway. Additionally, an
incoming investor will have the potential to boost the community’s value through
several operational enhancement initiatives including: increasing the acuity mix
among the resident population, converting vacant two-bedroom units to in-demand
studio and one-bedroom units and finally, converting a portion of the building’s first
floor to a secure memory care wing. Currently the building is 92.7% occupied and
generating approximately $1,853,000 in cash flow. Following the completion of these
operational initiatives, the community is projected to achieve stabilized cash flow of
approximately $3,076,000.
Midway Meadows is being offered unencumbered by property-level debt and free and
clear of a management agreement or a master lease.
KEY INVESTMENT CONSIDERATIONS
• Attractive location along a high-traffic retail corridor in Mount Prospect, IL
• Easy accessibility north of O’Hare International Airport and east of Interstate 294
• 100% Private Pay with strong in-place cash flow
• Multiple ‘value-add’ paths to increase the competitive position & achieve upside:
– Completing on-going unit renovation project (58 units)
– Pushing up acuity mix by increasing utilization of assisted living services
– Converting three vacant two-bedrooms AL units to 7 AL studios & 1 AL one-bed
– Converting a portion of the building to a secured memory care wing(* 13 units available for conversion)
• According to NIC MAP® there are only 403 AL & 139 MC units in the PMA
– Average seniors housing occupancy for the PMA is 88.7%
– AL & MC reported average market rents are $4,460 & $6,634, respectively
• Affluent market with attractive adult children and senior demographics
– Median household income (ages 45-54) within a 3-mile radius equals $105,856,
32.2% higher than the state average
– Median housing value of $318,970 within a 3-mile radius, 32% above average
for the Chicago MSA
– Of the total population within a 3-mile radius (110,266 residents):
o 23.2% (21,076) are of the ages 65+, expected to grow 10.4% by 2022
o 12.4% (9,764) are of the ages 75+, expected to grow 5.4% by 2022
Page 3
**Pro Forma Summary reflects Year 5 operations following the 2-bedroom and memory care conversions, bringing the total unit count to 120 beds/units (101 AL and 19 MC)
* Trending Operating Summary reflects the trailing twelve month period between 9/1/2016 and 8/31/2017* with the current unit count of 110 AL units
PROPERTY SUMMARY
TRENDING OPERATING SUMMARY*
PRO FORMA SUMMARY* *
Average Monthly Census: 102.0
Average Monthly Rate: $4,542
Avg. Occupancy: 92.7%
Total Revenue: $5,559,600
EBITDAR: $1,853,420
Operating Margin: 33.3%
Average Monthly Census: 114.1
Average Monthly Rate: $6,004
Avg. Occupancy: 95.1%
Total Revenue: $8,223,500
EBITDAR: $3,075,925
Operating Margin: 37.4%
OFFERING OVERVIEW
MIDWAY MEADOWS | 110 UNITS | MT. PROSPECT, IL
The offering of Midway Meadows represents a rare and unique opportunity for an incoming investor to acquire a reputable senior
housing asset with strong in-place cash flow accompanied by multiple paths to achieve operational upside. The community is
located in the affluent sub-market of Mt. Prospect, a part of the Chicago MSA, the third largest metropolitan area in the U.S. and a
top NIC MAP® market for seniors housing activity. It is conveniently situated nearby the intersection of Interstates 294 & 90, just
minutes from O’Hare International Airport, allowing for easy access to the community. Midway Meadows is well-positioned to
leverage strong market demographics over the next several years, continuing to draw age, income and acuity qualified seniors to
the community.
Page 4
OPERATIONAL ENHANCEMENTS
Originally built in 2001, the 110-unit community is well-maintained and
competitively positioned. Current occupancy is 90%+ and the
community is generating revenues and cash flow of approximately
$5,560,000 and $1,853,000, respectively. Despite operating at a healthy
margin of 33.3%, ownership has conceived of multiple strategic options
to further optimize the asset’s performance.
First, in order to maintain Midway Meadows’ competitive position, a
large portion of the community’s apartment units are undergoing
interior renovations. Current renovations include new carpet, base
boards, window blinds, lighting, kitchenette cabinets, sinks, appliances,
stone countertops as well as flooring, counters and lighting in resident
bathrooms. By renovating resident units as they turn over, the
community will continue to be up-to-date with evolving consumer
demands fending off new entrants to the market.
Additionally, ownership has identified an opportunity to drive revenues
by increasing the utilization of assisted living services among the
resident population. The community has traditionally been marketed
as an independent living community that offers assisted living services.
Given the age of the community, predominance of studios and its
position in the marketplace it makes sense to alter the focus of the
community and emphasize the quality, hospitality-based assisted living
services that can be provided.
Ownership estimates a conservative increase in monthly AL care fees
from $530 per resident now to $675 per resident in year five.
TRENDING OPERATIONAL PERFORMANCE
Receiving Limited AL Services
Total Current Residents
ACUITY STATUS:
Receiving No AL Service
Receiving Only Medication Reminders 13
59
37
102
RESIDENTS
Un-Renovated
Fully Renovated
RENOVATION STATUS:
Sufficiently Renovated
Remaining Units (To-be-Converted) 13
58
23
16
UNITS
*Estimated cost per conversion: $9,000 - $12,000
1. TTM defined as the operating performance during trailing twelve-month period between 9/1/2016 – 8/31/20172. AMC defined as Average Monthly Census by care type3. Per Mo. defined as effective monthly revenues and expensesrealized Per Occupied Unit (total)
TTM1
(9/1/2016 - 8/31/2017)
ASSISTED LIVING UNITS 110
MEMORY CARE UNITS1 0
TOTAL UNITS 110
TOTAL BEDS 120
OCCUPANCY METRICS AMC Per Mo. %-CENSUS
Assisted Living 102.0 - 92.7%
Memory Care 0.0 - 0.0%
TOTAL OCCUPIED UNITS 102.0 $4,542 92.7%
TOTAL RESIDENTS 106.1 $4,367 88.4%
REVENUE TTM Per Mo. %-REV
Room & Board $4,680,000 $3,824 84.2%
Assisted Living Services $673,200 $529 12.1%
Memory Care Services $0 - 0.0%
TOTAL MEMORY CARE REVENUE $5,353,200 $4,374 96.3%
Other Resident Revenue $177,600 $145 3.2%
Miscellaneous $28,800 $24 0.5%
TOTAL REVENUE $5,559,600 $4,542 100.0%
OPERATING EXPENSES TTM Per Mo. %-REV
Assisted Living Services4 $368,400 $301 6.6%
Memory Care Services5 $0 - 0.0%
Dietary Services $762,000 $623 13.7%
Housekeeping & Laundry $117,600 $96 2.1%
Guest Services $273,600 $224 4.9%
Marketing $402,000 $328 7.2%
General & Administrative $436,800 $357 7.9%
Insurance $61,200 $50 1.1%
Employee Benefits $117,600 $96 2.1%
Payroll Taxes $152,400 $125 2.7%
Workers' Compensation $122,400 $100 2.2%
Real Estate Taxes $175,000 $143 3.1%
Plant Property & Maintenace $304,800 $249 5.5%
Utilities $134,400 $110 2.4%
Management Fees6 $277,980 $227 5.0%
TOTAL OPERATING EXPENSES $3,706,180 $3,028 66.7%
EBITDAR $1,853,420 $1,514 33.3%
2 3
$5,434
$6,928$7,527 $7,893 $8,224
$1,620$2,306 $2,642 $2,870 $3,076
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
Year 1 Year 2 Year 3 Year 4 Year 5
($ in thousands)
Revenue EBITDAR
OFFERING OVERVIEW
MIDWAY MEADOWS | 110 UNITS | MT. PROSPECT, IL
Further, an opportunity exists to boost operations by changing the community’s unit mix. Historically, two-bedroom units have
experienced higher vacancies. Currently there are four vacant two-bedroom units, three in the portion of the building that will remain
assisted living. Ownership has plans to convert these three units to seven AL studios and one AL one-bedroom unit. The converted
units are in more demand and will be easier to lease driving both occupancy and revenues of the community.
Lastly, a conversion of a portion of the first floor of the community to a secured memory care wing will further boost operations. The
existing plan calls for the conversion of 15 AL units (including one vacant Al two-bed) into ten memory care studios and five memory
care one-bedroom companion suites for a total capacity of 20 memory care beds/units. Each companion suite offers residents a
private sleeping/living area with a shared bathroom. In order to seamlessly facilitate the conversion, ownership recommends
relocating residents following the New Year as well as offering vouchers or a discount to rent to incentivize resident moves. Memory
Care studios and companion beds are expected to rent for $6,000/month and $4,750/month, respectively, slightly below the
competition. Following the conversion, occupancy in the memory wing is expected to stabilize at approximately 18 residents per
month. The estimated cost of the memory care conversion project is approximately $360,000
Page 5
Projected Revenue and EBITDAR (Year 1 – Year 5) Projected RevPOR and Unit Occupancy (Year 1 – Year 5)
The offering of Midway Meadows is being presented unencumbered without a defined asking price. All bids are due by
3:00 pm Central on Wednesday, September 26th, 2017.
The charts below show Midway Meadows’ projected Revenue, EBITDAR, RevPOR and Occupancy levels for the next five years. For
a more detailed review of the community’s projected operational performance see Appendix A: Projected Operating Performance.
CURRENT UNIT MIX: 110 TOTAL UNITS39 One-Bed 9 Two-Bed
2-BED CONVERSION: 115 TOTAL UNITS69 Studios 40 One-Bed 6 Two-Bed
PHASE I
ASSISTED LIVING
MEMORY CARE
TABLE LEGENDPHASE II
MC CONVERSION: 110 UNITS + 5 COMPANION MC UNITS = 120 TOTAL BEDS/UNITS60 Studios 5 Companion*10 Studio5 Two-Bed35 One-Bed
*Companion defined as one-bedroom companion suites with a capacity of two residents per unit
62 Studios
$4,683
$5,160$5,511
$5,763
$6,00480.6%
93.2%94.9% 95.1%
95.1%
70.0%
75.0%
80.0%
85.0%
90.0%
95.0%
100.0%
$4,000
$4,500
$5,000
$5,500
$6,000
$6,500
Year 1 Year 2 Year 3 Year 4 Year 5
OccupancyRevPOR
RevPOR Occupancy
Page 6
PROPERTY INFORMATION
MIDWAY MEADOWS | 110 UNITS | MT. PROSPECT, IL
PROPERTY NAME: Midway Manor
PROPERTY ADDRESS: Mt. Prospect, IL 60056
CARE/LICENSE TYPE: Assisted Living
LICENSED BEDS: 120 Beds
CURRENT NUMBER OF UNITS: 110 Units
CURRENT UNIT MIX: 62 AL Studio Units
39 AL One-Bedroom Units
9 AL Two-Bedroom Units
POST CONVERSION TOTAL BEDS/UNITS: 120 Beds/Units
POST CONVERSION UNIT MIX: 60 AL Studio Units
35 AL One-Bedroom Units
5 AL Two-Bedroom Units
10 MC Studio Units
5 MC Companion Units*
LOT SIZE: 1.50 Acres
ZONING: R3
NUMBER OF BUILDINGS: One (1)
NUMBER OF STORIES: Three (3)
YEAR BUILT: 2001
YEAR RENOVATED: 2007
BUILDING SIZE: 95,623 Square Feet
FOUNDATION: Reinforced Concrete Slab
EXTERIOR: Veneer of Brick and Vinyl
FRAMING: Wood Frame
FIRE PROTECTION: 100% Fire Sprinkler Protected
COMMUNITY SERVICES CURRENTLY OFFERED
MEAL PLAN: Three Daily
HOUSEKEEPING: Weekly
CABLE: Basic Cable
UTILITIES: Basic Utilities Included
TRANSPORTATION: Scheduled Local Transportation
EMERGENCY: Emergency Call System
STAFFING: 24-Hour Staffing
ENTERTAINMENT: Programs, Activities, and Classes
MAINTENANCE: Apartment Maintenance
ASSESSMENTS: Regular Assessments with RN
and Nursing Consultant
PROPERTY DETAILS
*Companion units are comprised of two beds per unit
PROPERTY INFORMATION
MIDWAY MEADOWS | 110 UNITS | MT. PROSPECT, IL
Page 7
PROPERTY INFORMATION
MIDWAY MEADOWS | 110 UNITS | MT. PROSPECT, IL
Page 8
LOCATION INFORMATION
Page 9
MIDWAY MEADOWS | 110 UNITS | MT. PROSPECT, IL
Comparable #1 Comparable #2 Comparable #3 Comparable #4 Comparable #5 Comparable #6 Comparable #7 Comparable #8
CommunityName
Fairway Prospect Heights
River Run of Prospect Heights
Sunshine View -Northbrook
Clearview Gardens of Des
Plaines
Springbrook Manor
Stonebridge Memory Care Community
Violet Village Supportive
Living
Senior Village Retirement Community
Miles From Subject 0.55 1.73 2.90 2.93 3.22 3.72 4.45 5.75
CityProspectHeights
Prospect Heights
Northbrook Des PlainesArlingtonHeights
ArlingtonHeights
RollingMeadows
RollingMeadows
Care Type(s) AL | MC AL | MC MC AL | MC MC MC AL AL
Total Units 97 101 52 32 46 72 102 179
Reported Occupancy 80% 91% 87% 93% 90% 75% 86% 83%
AL Studio Rate $3,500 $4,100 - $3,900 - - $4,200 $3,100
AL One-Bed Rate $4,100 $4,950 - $4,350 - - $5,000 $3,900
AL Two-Bed Rate $4,700 $5,600 - $5,600 - - $5,800 $4,700
MC Companion $5,600 $6,300 $5,700 $6,550 $6,300 $6,350 - -
MC Studio $6,000 $6,900 $6,900 $7,050 $7,000 $7,350 - -
Year Built 1995 2017 1998 2000 2015 2018 2006 1995
Building Size (SF) 42,117 30,150 22,000 30,470 39,100 44,550 63,000 75,850
Lot Size (AC) 3.0 2.1 3.9 1.4 1.8 3.7 1.6 5.6
Operator ProfileNationalOperator
Regional Operator
NationalOperator
Regional Operator
NationalOperator
NationalOperator
LocalOperator
LocalOperator
*The operations, properties and entities depicted in this offering memorandum are entirely fictitious. Any resemblance or similarity to actual properties, care types, unitmixes or comparables is entirely coincidental.
Subject Property
CommunityName
Midway Meadows
Location Mt. Prospect, IL
Care Type AL
Total Units 110
Occupancy 93%
AL Studio Rate $3,550
AL One-Bed Rate $5,226
AL Two-Bed Rate $5,900
Year Built 1985
Building Size (SF) 95,623
Lot Size (AC) 1.5
Operator ProfileRegional Operator
COMPARABLE SALES
MIDWAY MEADOWS | 110 UNITS | MT. PROSPECT, IL
COMPARABLE SALES PRICE PRICE/UNIT # OF UNITS CAP RATE CLOSE
Butkus Heights
1 51 Middle Lane $37,000,000 $284,615 130 7.42% 04/17/2017
Arlington Heights, IL
Ditka Crossings
2 89 Hurricane Street $23,400,000 $260,000 90 6.08% 02/02/2017
Highland Park, IL
Payton Haven
3 34 Sweetness Drive $23,750,000 $244,845 97 6.74% 10/20/2016
Glenview, IL
The Hampton House
4 99 Danimal Cove $27,000,000 $270,000 100 7.28% 08/13/2016
Winnetka, IL
Perry Place
5 72 Fridge Avenue $40,000,000 $266,667 150 7.33% 03/15/2016
Niles, IL
The Summit of Singletary
6 50 Samurai Circle $32,000,000 $220,690 145 7.19% 08/24/2015
Park Ridge, IL
TOTALS/AVERAGES PRICE PRICE/UNIT # OF UNITS
$31,685,042 $257,233 119
Page 10
OFFERING OVERVIEW
MIDWAY MEADOWS | 110 UNITS | MT. PROSPECT, IL
Page 11
Year One Year Two Year Three Year Four Year Five
(1/1/2018 - 12/31/2018) (1/1/2019 - 12/31/2019) (1/1/2020 - 12/31/2020) (1/1/2021 - 12/31/2021) (1/1/2022 - 12/31/2022)
ASSISTED LIVING UNITS 100 100 100 100 100
MEMORY CARE UNITS1 20 20 20 20 20
TOTAL UNITS 120 120 120 120 120
TOTAL BEDS 120 120 120 120 120
OCCUPANCY METRICS AMC2 Per Mo.3 %-CENSUS AMC Per Mo. %-CENSUS AMC Per Mo. %-CENSUS AMC Per Mo. %-CENSUS AMC Per Mo. %-CENSUS
Assisted Living 94.2 - 94.2% 96.3 - 96.3% 95.7 - 95.7% 96.0 - 96.0% 96.0 - 96.0%
Memory Care 2.5 - 2.5% 15.6 - 14.0% 18.1 - 15.9% 18.1 - 15.9% 18.1 - 15.9%
TOTAL OCCUPIED UNITS 96.7 $4,683 80.6% 111.9 $5,160 93.2% 113.8 $5,511 94.9% 114.1 $5,763 95.1% 114.1 $6,004 95.1%
TOTAL RESIDENTS 100.7 $4,496 83.9% 116.8 $4,945 97.3% 118.4 $5,299 98.6% 118.7 $5,542 98.9% 118.7 $5,773 98.9%
REVENUE Year One Per Mo. %-REV Year Two Per Mo. %-REV Year Three Per Mo. %-REV Year Four Per Mo. %-REV Year Five Per Mo. %-REV
Room & Board $4,559,000 $4,031 83.9% $5,716,600 $4,949 82.5% $6,274,900 $5,462 83.4% $6,602,000 $5,731 83.6% $6,908,300 $5,997 84.0%
Assisted Living Services $623,400 $551 11.5% $715,200 $619 10.3% $734,400 $639 9.8% $763,200 $663 9.7% $777,600 $675 9.5%
Memory Care Services $31,900 $1,082 0.6% $223,700 $1,193 3.2% $248,400 $1,145 3.3% $253,200 $1,164 3.2% $258,000 $1,186 3.1%
TOTAL MEMORY CARE REVENUE $5,214,300 $4,494 96.0% $6,655,500 $4,957 96.1% $7,257,700 $5,314 96.4% $7,618,400 $5,563 96.5% $7,943,900 $5,800 96.6%
Other Resident Revenue $191,100 $165 3.5% $240,900 $179 3.5% $234,000 $171 3.1% $237,600 $173 3.0% $241,200 $176 2.9%
Miscellaneous $28,100 $24 0.5% $31,800 $24 0.5% $34,800 $25 0.5% $37,200 $27 0.5% $38,400 $28 0.5%
TOTAL REVENUE $5,433,500 $4,683 100.0% $6,928,200 $5,160 100.0% $7,526,500 $5,511 100.0% $7,893,200 $5,763 100.0% $8,223,500 $6,004 100.0%
OPERATING EXPENSES Year One Per Mo. %-REV Year Two Per Mo. %-REV Year Three Per Mo. %-REV Year Four Per Mo. %-REV Year Five Per Mo. %-REV
Assisted Living Services4 $381,900 $338 7.0% $479,900 $415 6.9% $612,000 $533 8.1% $630,000 $547 8.0% $648,000 $563 7.9%
Memory Care Services5 $72,400 $2,456 1.3% $340,400 $1,815 4.9% $380,400 $1,753 5.1% $384,000 $1,765 4.9% $386,400 $1,776 4.7%
Dietary Services $737,100 $635 13.6% $852,000 $635 12.3% $892,800 $654 11.9% $918,000 $670 11.6% $945,600 $690 11.5%
Housekeeping & Laundry $112,600 $97 2.1% $133,100 $99 1.9% $140,400 $103 1.9% $144,000 $105 1.8% $148,800 $109 1.8%
Guest Services $271,500 $234 5.0% $283,500 $211 4.1% $291,600 $213 3.9% $301,200 $220 3.8% $308,400 $225 3.8%
Marketing $440,500 $380 8.1% $428,200 $319 6.2% $368,400 $270 4.9% $382,800 $280 4.8% $392,400 $287 4.8%
General & Administrative $436,800 $376 8.0% $449,000 $334 6.5% $453,600 $332 6.0% $466,800 $341 5.9% $478,800 $350 5.8%
Insurance $61,200 $53 1.1% $63,600 $47 0.9% $64,800 $47 0.9% $67,200 $49 0.9% $69,600 $51 0.8%
Employee Benefits $121,700 $105 2.2% $159,700 $119 2.3% $171,600 $126 2.3% $175,200 $128 2.2% $175,200 $128 2.1%
Payroll Taxes $158,400 $137 2.9% $204,000 $152 2.9% $217,200 $159 2.9% $224,400 $164 2.8% $229,200 $167 2.8%
Workers' Compensation $131,100 $113 2.4% $183,200 $136 2.6% $202,800 $148 2.7% $207,600 $152 2.6% $213,600 $156 2.6%
Real Estate Taxes $180,000 $155 3.3% $240,000 $179 3.5% $240,000 $176 3.2% $240,000 $175 3.0% $240,000 $175 2.9%
Plant Property & Maintenace $302,000 $260 5.6% $320,100 $238 4.6% $331,200 $242 4.4% $339,600 $248 4.3% $350,400 $256 4.3%
Utilities $134,400 $116 2.5% $139,200 $104 2.0% $141,600 $104 1.9% $147,600 $108 1.9% $150,000 $110 1.8%
Management Fees6 $271,675 $234 5.0% $346,410 $258 5.0% $376,325 $276 5.0% $394,660 $288 5.0% $411,175 $300 5.0%
TOTAL OPERATING EXPENSES $3,813,275 $3,286 70.2% $4,622,310 $3,442 66.7% $4,884,725 $3,576 64.9% $5,023,060 $3,668 63.6% $5,147,575 $3,758 62.6%
EBITDAR $1,620,225 $1,396 29.8% $2,305,890 $1,717 33.3% $2,641,775 $1,934 35.1% $2,870,140 $2,096 36.4% $3,075,925 $2,246 37.4%
1. Memory Care units include 10 private studios and 5 companion one-bedroom suites for a total capacity of 20 bed/units2. AMC defined as Average Monthly Census by care type3. Per Mo. defined as effective monthly revenues and expenses realized Per Occupied Unit (total)4. Per Mo. Assisted Living Services cost (i.e. $338/month in Year One) reflect total AL costs per occupied Assisted Living unit5. Per Mo. Memory Care Services cost (i.e. $2,456/month in Year One) reflect total MC cost per occupied Memory Care unit6. An industry standard Management Fee (5.0% of Total Revenue) is included in each period
* Year 1 – Year 5 performance reflect forward looking operations based upon ownership-prepared budgets