The Residence at Arundel Mills

7410 Hawkins Dr  Hanover, MD 21076

Min. Invest $5,000
Target Hold 36 mo
Annualized Returns 12%
Progress - 0% Pledged
Resident Capital Realty
Resident Capital Realty
Resident Capital Realty
Resident Capital Realty
Resident Capital Realty
Resident Capital Realty
Resident Capital Realty
Resident Capital Realty
Resident Capital Realty
Resident Capital Realty
Resident Capital Realty
Resident Capital Realty
Resident Capital Realty
Resident Capital Realty
Resident Capital Realty
Resident Capital Realty
Resident Capital Realty
Resident Capital Realty
Resident Capital Realty
Resident Capital Realty

Invest in the New Standard of Residential Assisted Living

Overview

Resident Capital Realty (RCR) is an integrated real estate development corporation focused on a small exploding segment of the Residential Assisted Living (RAL) market. The 15-Bed RAL Facility is our niche market.

Right now, business models exercised by large assisted living providers are unable to support small revenue facilities. Conversely, the privately held, for-profit, small providers are undercapitalized and cannot grow with market demand. This is the opportunity that Resident Capital Realty is capitalizing on.

The 15-Bed RAL model is not new to the industry. They are typically managed by for-profit “Mom and Pop” operators or non-profits catering to a specific network, demographic or locale. There is no “industry standard” level of care in this segment of the market. Frankly, governing municipalities are finding vast deficiencies in the level of care provided within small 15-Bed facilities. But, the market is shifting because large providers are experiencing major difficulties as well.

Families interviewing assisted living companies for their loved ones are migrating away from large facilities and seeking more intimate care. RCR provides unique residential properties for a select group of sophisticated tenants, led by Silver Life Estates Prime Care - a non-profit corporation providing the best assisted living services in the region.


Background

RCR spent the last five (5) years analyzing the industry focused here in the mid-Atlantic region. We knew there was tremendous upside in leasing RAL facilities, but we couldn’t find an operator that was fully capitalized, capable of supporting profitable long-term lease contracts, while also being committed to a high level of “resident care” instead of the “bottom line”. We continued to search, spending more time evaluating the small scale “Mom and Pop” operations. It was there where we realized very quickly that if the level of care could be raised then the demand would increase exponentially.

In 2016, we began a relationship with a small Husband and Wife operation (we’ll call TEAM) who were providing a consistently high level of care. TEAM is outperforming all competitors and are recognized by the State of Maryland as an outstanding operation. Their occupancy remains consistent at 95% and demand for residency in their facilities continues to grow. They have a tremendous network and remain fully occupied with a waiting list of one hundred plus every quarter. TEAM was not able to grow because their financials could not support traditional investment. The untapped potential in their business model was clear to us. We invested in several properties then partnered with TEAM and began to help cultivate their business model. This was done by extrapolating all aspects of property management and handling all real estate acquisitions so that TEAM could focus on their core business. RCR--with TEAM--have developed a highly successful business model that we are replicating in the Mid-Atlantic.


Expansion

We took the model to a major healthcare provider here in the mid-Atlantic. They were very impressed. In 2018, RCR partnered with a new non-profit, Silver Life Estates Prime Care (SLEPC). SLEPC then bought TEAM. SLEPC is 100% confident they can deliver a level of care unsurpassed by any other operator in this segment of the market.  More information on SLEPC is available at www.silverlifeestates.org. 

It is a simple partnership. RCR provides the Real Estate, SLEPC provides the care. As the exclusive provider of top quality RAL facilities, Silver Life Estates Prime Care is poised to be the number one provider of Assisted Living services in the 15-Bed RAL market over the coming years.


Moving Forward

RCR has 30 years of real estate investment, development, and management experience. SLEPC has tremendous resources, decades of experience, and specific knowledge in the industry. Together RCR and SLEPC will dominate the Mid-Atlantic market.

Investment Type: Term: Raise Amount: Targeted ROI:
Equity
36 Months $600,000 12%

The Residence at Arundel Mills

Resident Capital Realty acquires real assets on a value basis and enhances cash flows through our unique Residential Assisted Living tenant platform.

The Residence at Arundel Mills will be financed with long term capital that does not participate in the equity, therefore the preferred equity owner return is significant.

 

Financial Sources

Investor Capital $600,000

Financial Uses

Acquisition $312,000
Renovation $140,000
Equipment $148,000

Property Summary


The Residence at Arundel Mills is a very large 15-Bed Residential Assisted Living property located within 5 miles of Arundel Mills and MD Live Casino. This location is a major hub for retail and transportation just south of Baltimore City.

This 8 Bedroom house was originally built in 1958. Each bedroom is oversized, typically 12’ by 15’ with three (3) full baths and two kitchens. The property also has one (1) studio apartment which SLEPC will use for one of its overnight staff members. This property boasts a 30’ by 30’ sun deck and 1 acre of green space perfectly suited for residential assisted living.

Silver Life Estates Prime Care has signed a long-term lease and preparing to move-in summer 2019.

Address Property Type Bedrooms Bathrooms Year Built
7410 Hawkins Dr
Hanover, MD 21076
Luxury Assisted Living 7 3 1958

Why Resident Capital Realty?

The Residence at Arundel Mills is the symbol of a simple strategic partnership combining an exploding market with 30 years of real estate experience.

Resident Capital Realty Development Corporation offers accredited investors the opportunity to invest in The Residence at Arundel Mills. This property will be a significant addition to Silver Life Estates Prime Care operating portfolio, a non-profit assisted living corporation providing industry-leading care in the Mid-Atlantic region and also RCR’s top tenant.

The original residence was built in 1965 and is ready to be converted into a new 9 Bedroom, 3 Full Bath, 15-Bed Residential Assisted Living (RAL) Facility.

This offering is available with an annual 12% preferred return. Investors can expect to receive interest disbursements monthly.

The property will undergo major HVAC, plumbing and electrical upgrades as well as a water filtration system, fire protection system, security system and required ADA upgrades.

Upon completion of the renovations and exterior beautification, the lease will be immediately executed. Silver Life Estates Prime Care has committed to a long-term lease.

Investment Type:    Term:            Raise Amount:    Annual ROI:     Payments:
Preferred Debt        36 Months    $850,000            12%                  Monthly

 

Why You Should Invest

  • 12% Preferred

The sponsors are offering a 12% preferred return paid quarterly.

  • Industry Leading Tenant: Silver Life Estates Prime Care

This non-profit is supported by a very robust network whose prime mission is to provide the of highest level of care. This tenant has decades of experience and the Executive Director comes over from Johns Hopkins School of Nursing.  More information on SLEPC is available at www.silverlifeestates.org.

  • Anne Arundel County, Maryland

Located in the extremely desirable northwest submarket of Baltimore City, the property sits less than 1 mile from the region’s major traffic artery and surrounded by one the largest and fastest growing retail and air transit hubs in the region. This is a prime location well suited for busy families looking to integrate visiting their loved one with shopping and entertainment.

  • Value Add

The Residence at Arundel Mills will be in a class by itself. The neighboring large assisted living facilities do not provide the same appeal. We will renovate the overall property and SLEPC will offer residents a lower cost offering relative to the neighboring competition.

  • Experienced Sponsor

RCR is the exclusive provider of high-end turn-key RAL real estate in the region. Our clients are sophisticated assisted living providers positioning themselves for expansion. High demand is expanding the market exponentially. The Mid-Atlantic region is rich with high equity real estate, that when converted into a residential assisted living facility creates tremendous cap rates. RCR has 30 years’ experience in this specific market.

 

Location Highlights

Our world-class tenant, Silver Life Estates Prime Care, has a very robust network. However, they understand that assisted living residents (and particularly their families) want to be close. They want to be able to stop in for 15 minutes on their way home from work or on their way to the beauty salon. Location coordination with RCR is paramount.

  • We analyze traffic data when selecting a facility location.



  • SLEPC want to be close to competitors, especially large facilities.



  • RCR uses several proprietary tools to search for the right property. The most important tool we use is the sidewalk. The nearby BWI bike path is a big fitness draw and great place to walk with Grandma and the kids.

 

Due Diligence Highlights

  • RCR conducts extensive research on Anne Arundel County Elderly demographics.



  • RCR conducts a complete building inspection, assessment, and feasibility study before executing all purchase contracts.

 

Risk Mitigation

  • Underlying Property Value: Strong Comps support the underlying value.



  • License: Licensing raises the value of the property substantially as the property is converted to commercial. As you can see below, senior housing/RAL properties average $75,000 to $100,000+ per bed sales.

 

Refinance

Refinance in 36 months: RCR plans to renovate an already highly-desirable property and place low-rate fixed debt on the asset, creating an excellent ratio of strong returns with mitigated risk.