Monroe House Assisted Living
Carriere, MS 39426
Debt • ASSISTED LIVING

Min. Invest

$5K

Target Hold

2 Yr.

Annualized Returns

12%


Profit Participation

10%

PROGESS - 15% PLEDGED

Investment Summary

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

The Monroe House is a 60-unit, one-bedroom assisted living facility located on 4.4 acres in the quaint township of Carriere, situated in southwestern Mississippi near the Louisiana state line. This facility will be fewer than 4 miles from the new state-of-the-art hospital Highland Memorial in Picayune, Miss. The Monroe House will provide assisted living and memory care to the seniors of the area. The region has favorable climate conditions, scenery and quiet surroundings.

Construction for the development has been approved by the planning and zoning commission, and the board of supervisors. The one-story, 40,000-square-feet building will include 60 one-bedroom and one-bathroom units. The building will feature a larger and more modern common area for the residents to enjoy. The units are about 20 percent larger than the current assisted living spaces offered in the area. Each space will come equipped with wi-fi and television connections. The developer has allocated 20 of the units to be utilized for memory care.

Income for the project is projected to reach stabilization within, or fewer than, 12 months, generating about $1.5 million in gross revenue and netting an income of $168,746 by the end of its first year of operation. By the fifth year of operation, it is projected to net an annual income of $733,000.

The projected lease up and stabilization of residents is a conservative estimate and, in our opinion, the facility could generate more income during its first two years of operation. Please see the detailed proformas and cost analysis estimates in the documents tab for reference.

The total estimated costs of the facility including land, equipment and reserves is approximately $6 million. RealtyeVest has been exclusively retained to raise $5 million in debt, secured by a first lien position. The estimated value of the completed facility is $10 million and when stabilization is obtained, the value increases to $12 million.

The sponsor’s preferred method of refinancing for the facility is with a 40-year HUD nonrecourse loan available for medical facilities, including nursing homes, assisted living and skilled nursing. Six months into construction, the management company will start pre-enrollment for the facility. As pre-enrollment progresses and the completion of construction of the facility concludes, the HUD loan process will begin. Other methods available are conventional financing, USDA and SBA.


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

The Monroe House paints a picturesque setting of a quiet and relaxing assisted living community, with nearby fruit orchards, beautiful high-rolling hills, natural ponds and lakes.

The project will be constructed on approximately four acres of land located off Highway 11-North in Carriere, Miss. It will be about four miles north of the newly constructed Highlands Community Hospital. Located in the center of Pearl River County, the Monroe House will be near Slidell, La., the John C. Stennis Space Center, as well as the cities of Picayune, Poplarville and Hattiesburg, Miss.

The development is also a few miles from major thoroughfare I-59. I-59 runs southwest into Slidell, La., where it merges into another major thoroughfare, I-10, and runs directly through New Orleans. The cities of Gulfport, Biloxi and Pascagoula, Miss. are also just a short drive east of the I-59 and I-10 merger. All three of these major cities are located no further than 85 miles from the Monroe House — with Gulfport being the closest at 45 miles.

Property Name: Monroe House Assisted Living
Property Type Assisted Living

Market Overview

The Monroe House is located in the community of Carriere, Mississippi. It’s midway through Pearl River County, between cities Picayune and Poplarville. The area is known for its growing population, which increased by 6,600 residents from 2000 to 2014, according to city-data.com. From 2010 to 2015, the county also experienced an increase of about 1,500 senior citizens.

This part of Pearl River Country has an average temperature of 70+/- degrees and offers an ideal setting for retirement living. The Monroe House will be developed in an area that is free from urban sprawl and congestion. The closest city is about 45 miles away in Gulfport, Miss., and about 54 miles from New Orleans.

The area is populated with a motivated workforce of skilled and trained technical workers, which points to a community that is productive and business-friendly. Unemployment in Pearl County was a modest 5.6 percent in 2015.

The 65+ population in 2015 was approximately 39,886, which was roughly 18.57 percent of the total population living in the Primary Market Area (PMA). It is also considerably higher than the national average of 14.7 percent during the same time period.

It’s important to note that there is only one identified assisted living facility within the Pearl River County PMA that offers assisted living services. While there is no guarantee that competing facilities are not currently being considered by others, the unmet demand indicates a strong need for assisted living in the area.

It is anticipated that the majority of clients for the proposed assisted living facility (perhaps as much as 75 percent) will come from within the PMA.

Considering the lack of physical and psychological barriers, as well as the lack of competitive facilities in the county, it is appropriate to say that the PMA encompasses all of Pearl River County. In this market, the majority of demand will come from the PMA, with a secondary draw likely to come from just outside the county, due to the limited number of comparable assisted living facilities.

The road system around the PMA also makes travel from inside the market area a relatively easy commute.

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