315 Confederate Street
Fort Mill , SC 29715
Debt • ASSISTED LIVING

Min. Invest

$5K

Target Hold

2 Yr.

Return On Investment

10%

PROGESS - 23% PLEDGED

Investment Summary

RealtyeVest has a stake in all real estate investments offered in our marketplace.

Noble Life Residential has exclusively retained RealtyeVest to offer accredited investors the opportunity to invest in RealtyeVest Fort Mill, LLC. The proposed assisted living facility, Confederate Assisted Living, will be a luxury residential assisted living facility in the Charlotte Metropolitan Area.

This offering will be secured with a mortgage having 1st lien position1 and evidenced by a promissory note that pays a 10% annual yield. Investors can expect to receive interest checks every three months paid in advance.

The plan for the home is to add additional bedrooms with individual access, a wraparound porch, adding security systems and cameras throughout the home. Modifications are also being implemented to the bathrooms to accommodate wheelchair access, eliminating trip hazards, and other modifications spelled out in the construction budget located in the documents section.

Upon completion of the project, Confederate Assisted Living plans to have a 24-hour on-site caregiver and chef to prepare three nutritional meals per day. The faculty has the experience and ability to provide a residential community setting that gives seniors dignity and a higher quality of life at a competitive price compared to the institutional setting that’s considered standard in the industry.

Investment Type:
Debt
Term:
24 Months
Total Loan Amount: $660,000
Interest Rate: 10% Annually
LTV: 70% of Stabilized Value

Why You Should Invest:

  • Escrowed Interest: The first 16 months interest will be placed in escrow. Sponsors are also required to produce proof of funds to account for negative cash flow during construction and lease-up to ensure a negative cash-on-hand event doesn’t occur.
  • Strong Need Locally for Compassionate Residential Home Care: According to the 2016 U.S. Census, the Charlotte MSA has a 65+ population of 349,864. National demographics show over 3,000 residential assisted living facilities in California; 1,500 in Florida; and 1,000 in Arizona. Only 40 residential assisted living facilities are located in the entire of Charlotte MSA. Within 30 miles of Fort Mill, S.C. there are only two residential home care facilities.
  • Prime Location: Located within the Charlotte MSA, the 6th most populated area within the southeast region. Ft. Mill is the ideal setting to operate a residential assisted living facility for those in the Charlotte MSA that want their loved ones close by.
  • Growing Demand Nationally: Over 70 million baby boomers will be retiring over the next 15 years, an average of 10,000 retiring every day. 4,000 people are turning 85 every day with 70% needing daily support for an average of 3.5 years.

Location Highlights:

  • One of the largest Metro Areas in the Southeast
  • Home to 7 Fortune 100 companies
  • One of the largest in the Southeast Finance and banking industries
  • Charlotte is home to several professional sporting teams
  • Community residential setting versus a larger institutional type setting

Exit Strategy

The borrowers will modify and rehab the home within 6 months and begin to fill with tenants over the following 6 months. During the second 12-month period, the borrowers will season the property at a stabilized occupancy. They will prepare for and complete long-term financing to repay all the principle to RealtyeVest’s investors.


Due Diligence Highlights:

  1. Met and spoke with sponsors, walked the property and discussed project intricacies on several occasions
  2. Extensive research on submarket and its lack of Residential Assisted Living Facilities
  3. Substantial examination of financial projections including lease-up timeframes, verifying rent assumptions and expense projections
  4. During due diligence we found that if construction ran a few weeks longer and lease-up was slower than expected the business would experience a negative cash-on-hand event, to remedy this issue RealtyeVest required the sponsor to increase their operating start-up cash account.
  5. Spoke to industry leader to validate the business plan set forth by the sponsors

Risk Mitigants:

Security - The loan is secured by a first position lien.

High Demand -Over 70 million baby boomers will be retiring over the next 15 years, an average of 10,000 retiring every day. 4,000 people are turning 85 every day, 70 percent of these people will need support living accommodations for an average of 3.5 years.

Pricing and Business Plan - Noble Life Residential Living is prepared to offer a better-quality living space with exceptional care quality at a far better price than the competition. They will benefit from not having a large institutional staff overhead and a more marketable service.

Escrowed Interest - The borrower will be placing 16 months interest in escrow to ensure payments to investors during the construction and lease-up phase.


Definitions

11st Lien Position - A lender or creditor in a first lien position has priority in case a debtor defaults and collateral has to be liquefied to settle the debt. For example, mortgage lenders are usually in a first lien position; if a borrower defaults on his payments the mortgage lender is the first creditor to receive remuneration from the sale of the property.


Risk Disclosures:

The offering materials to be reviewed and considered by investors with respect to this offering include the information described in the website content relating to this offering (as amended and supplemented through and until the closing of the transaction) and the subscription agreement relating to such securities (see the "Documents" tab). We refer to all of this information collectively as the "Property Information Package". Investors should review the Property Information Package in its entirety before investing and should consult with appropriate legal, tax, and investment advisors. Please note that RealtyeVest is not serving as your fiduciary or advisor with respect to this opportunity.

Below are certain risks associated with this investment that should be carefully reviewed prior to any investment in this opportunity:

Forward-Looking Statements: Investors should not rely on any forward-looking statements made regarding this opportunity, because such statements are inherently uncertain and involve risks. We use words such as “anticipated,” “projected,” “forecasted,” “estimated,” “prospective,” “believes,” “expects,” "plans,” “future,” “intends,” “should,” “can,” “could,” “might,” “potential,” “continue,” “may,” “will,” and similar expressions to identify these forward-looking statements. Similarly, the financial forecasts contained herein and in any other offering materials are based on numerous assumptions. Although these assumptions are believed to be reasonable, they are all subject to uncertainty. Non-Transferability of Notes: The transferability of the Company's Notes is restricted both by the subscription agreement for that entity and by U.S. federal and state securities laws. In general, investors will not be able to sell or transfer the Notes. There is also no public market for the Notes and none is expected to be available in the future. Moreover, although there is a defined redemption date for the preferred equity investment in the Fund, an extension option may be exercised and in any event, there can be no assurance that the investment will be liquidated at or promptly after such maturity date (as it may be extended). Persons should not invest if they require any of their investment to be liquid. This is particularly important for persons of retirement age, who should plan carefully to assure that their assets last throughout retirement.

Real Estate Market Risk: Investments related to real estate are subject to market valuation risks that may be caused by changing economic and local market conditions such as local real estate market conditions, prevailing interest rates, the rate of unemployment, the level of consumer confidence, the value of the U.S. dollar, energy prices, changes in consumer spending, the number of personal bankruptcies, disruptions in the credit markets and other factors. Such conditions are beyond the control of the Company and of the Fund. Real estate markets are affected by many factors, such as general economic conditions, supply and demand for real estate investments, interest rates, the availability of financing, and other factors, all of which are beyond the control of both the Company and the Fund.

Borrower Credit Risk: The Company’s obligation to make payments on a Note will not be guaranteed for the length of the term corresponding to the borrower’s loan. The Company (and thus investors) will be relying on the borrower for the execution of its business plan in a way that enables the sponsor to repay the principal of the corresponding borrower loan. The borrower may not have a significant record of performance and may be unable to sell or refinance the underlying property in a way that enables the borrower to fulfill its obligations under the corresponding borrower loan. The borrower loan is being made with respect to a property that does not generally meet the financing criteria for conventional mortgages from institutional sources. Credit risk is inherent in the mortgage lending industry, and there can be no assurance that the creditworthiness of the borrower will be sufficient to assure the full repayment of the underlying borrower loan. The Company does not guarantee payment of the Notes or the corresponding borrower loan, and the Notes are not obligations of our borrower.

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Property Summary

Confederate Assisted Living Home offers a more intimate way of living for those needing to relocate to an assisted living facility. This location offers the city feeling while being within the Charlotte Metro MSA and less than 20 miles from downtown Charlotte.

The established home will go through extensive renovations, to include a wraparound front porch, a screened-in deck, garden, community rooms, fitness center, Wi-Fi, individual thermostats, large dining area, new hospital-grade floors, a sprinkler system and 24-hour advanced security. Plans also include the conversion of a two-space carport and workshop space into a (fourth) bedroom.

Confederate Assisted Living is located less than 18 miles from downtown Charlotte; banking and financial districts; and professional sports arenas.

Property Address 315 Confederate Street Fort Mill , SC 29715
Property Type Assisted Living
# of Bedrooms 4
# of Bathrooms 4.0
Year Built 1900

Property Location

Market Overview

This Fort Mill, S.C. residential home will be turned into a residential assisted living facility. The city of Fort Mill is located in York county; a suburb of Charlotte, N.C. The Charlotte metropolitan area is home to 8 fortune 500 companies and 7 fortune 100, including Bank Of America, Lowe’s Home Improvement Stores, Duke Energy, Nucor Steel and Seal Air Corporations. It is also home to Nascar.

With over 2.63 Million people living within the Charlotte Metro MSA making it the 6th largest metropolitan area in the Southeast region. The Charlotte Airport is the 6th busiest airport in the nation.

The average salary within the Charlotte MSA is over $55,000 dollars.

The top 10 Employers are as follows:

Wells Fargo 20,000-35,000
Carolina Health Care System 20,000-35,000
Carolina Schools 10,000-20,000
City Of Charlotte 10,000-20,000
Duke Energy 10,000-20,000
Novant Health 10,000-20,000
Bank of America 10,000-20,000
US Airways 10,000-20,000
Lowe's 10,000-20,000
Walmart 10,000-20,000
41 / 100 [ Car-Dependent ]

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