The Residence at Balmuckety
336 Lyon Ct Baltimore, MD 21208
Invest in the New Standard of Residential Assisted Living
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.
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.
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 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.
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.
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Resident Capital Realty
Resident Capital Realty (RCR) is a Mid-Atlantic based real estate private equity firm focused on the acquisition, development, and conversion of residential properties into 8- to 15-bed Residential Assisted Living (RAL) properties. Founded in 2010, RCR has evolved and is now partnered with Silver Life Estates Prime Care (SLEPC; www.silverlifeestates.org) to provide RAL properties throughout the region.
Our current portfolio includes five (5) RAL facilities and one (1) memory care facility. Our portfolio is expanding with the acquisition of The Residence at Balmuckety. Silver Life Estates Prime Care - our largest tenant - has executed contracts for five (5) more facilities in 2019.
For more details on our firm or our offerings, please go to www.ResidentCapitalRealty.com or call us at (740) 284-7002.
Residence at Balmuckety
RCR acquires real assets on a value basis and enhances cash flows through our unique Residential Assisted Living tenant platform.
The Residence at Balmuckety will be financed with long term capital that doesn’t participate in the equity, therefore the preferred equity owner return is significant.
The Estate at Balmuckety, the architecturally significant c.1910 manor house built in the tradition of 17th-century tidewater homes located just outside Baltimore City, MD, is perfectly suited for Residential Assisted Living. Exquisite details, heart pine floors, and high ceilings add an abundance of character to this unique residence. Grand Foyer, formal Living Room with a fireplace, Sun Room with fireplace, Formal Dining Room with fireplace, Butler’s Pantry, eat-in kitchen, Master Bedroom with a fireplace, Sitting Room and updated bath, 7 additional bedrooms, and 3 additional baths, a covered porch, and back yard with a pool. Designed with large open parlors, ten-foot ceilings, and grounds fit for enjoying the outdoors, our partner Silver Life Estates Prime Care Incorporated has signed a long term lease subject to build-to-suit renovations and upgrades. This will be SLEPC’s flagship facility.
|Address||Property Type||Bedrooms||Bathrooms||Year Built|
336 Lyon Ct
Baltimore, MD 21208
|Luxury Assisted Living||8||5||1910|
Why Resident Capital Realty?
The Residence at Balmuckety is the symbol of a simple strategic partnership combining an exploding market with 30 years of real estate experience.
Resident Capital Realty Corporation offers accredited investors the opportunity to invest in The Residence at Balmuckety. This property will be the flagship of Silver Life Estates Prime Care, a non-profit Residential Assisted Living (RAL) corporation providing industry-leading care in the Mid-Atlantic region.
The original mansion estate built in 1910 was renovated in 2003 and is ready to be converted into a new 8 Bedroom, 5 Full Bath RAL Estate. A complete 15-Bed Assisted Living Residence.
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 Incorporated has committed, filed for license and is in the final stages of purchasing furniture for their flagship property.
Investment Type: Term: Raise Amount: Annual ROI: Payments:
Preferred Debt 36 Months $850,000 12% Monthly
Why You Should Invest
- 12% Preferred Return
The sponsors are offering a 12% preferred return paid monthly.
- 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. Our tenant has decades of experience and the Executive Director comes over from Johns Hopkins School of Nursing. More information is available at www.silverlifeestates.org
- Baltimore 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. Surrounded by one of the largest and fastest growing employment hubs in the market. This immediate area has multiple large assisted living facilities that have begun to decline. Balmuckety has tremendous architectural appeal, situated in an extraordinary neighborhood perfectly suited for assisted living care.
- Value Add
The Residence at Balmuckety 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 SLE will offer residents a lower cost offering relative to the 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 to an assisted living facility creates tremendous cap rates. RCR has 30 years’ experience in this specific market.
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.
Due Diligence Highlights
- RCR conducts extensive research on Baltimore County Elderly demographics.
- RCR conducts a complete building inspection, assessment, and feasibility study before executing all purchase contracts.
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 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.