4311 N Spaulding Rd
Chicago, IL 60618
Debt • ASSISTED LIVING

Min. Invest

$10K

Target Hold

2 Yr.

Annualized Returns

10%


Profit Participation

10%

PROGESS - 8% PLEDGED
PROGESS - 0% FUNDED

Investment Summary

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

Senior Shared Living, LLC has exclusively retained RealtyeVest to offer accredited investors the opportunity to invest in RealtyeVest Spaulding Fund, LLC. The proposed assisted living facility, The Spaulding House, will be a luxury residential assisted living facility in Chicago’s Albany Park neighborhood.

This offering will be secured with a mortgage having 1st lien position 1 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. In addition to an annual yield of 10%, the sponsors are offering investors 10% profit participation2 on the occasion of a capital event such as refinance or sale.

The plan for the home is to add an elevator and split the current over-sized bedrooms into two rooms apiece. An additional bedroom will also be added for a total of nine bedrooms; two rooms having double occupancy. Modifications are also being made 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, Senior Shared Living plan to have 24 hour on site caregiver abilities, a professional chef to prepare three nutritional meals per day. Senior Shared Living 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 standard in the industry.


Investment Type:
Debt & Profit Participation
Term:
24 Months
Loan Amount: $1,400,000
Interest Rate: 10% Annually
LTV: 35% of Stabilized Value


Why You Should Invest:

  • Equity Investment returns with the security of a Debt Investment: The sponsor is providing a 10% return on the debt investment but is also providing a 10% profit share for the investors. So the projected annual return on the investment is expected to be 18% while being secured with a 1st lien on the property.
  • Exceptionally Experienced Sponsor: Over five decades of combined institutional level experience in the assisted living and specialized care fields. Pat Livesay-Smith and Marc Collura have worked in the Home Healthcare business for decades. G.D. Chaplin operated a physical medical center for 15 years.
  • High Demand, Low Inventory: 12% of Chicago’s population (2.7 Million) is over 65. It is expected that 1/6th of the population will be over 65 by 2030. There are currently only 9 assisted living facilities in Chicago. Residential Assisted Living allows seniors to live in a neighborhood while receiving 24-hour help.
  • Prime Location: Tucked in Chicago’s Northside, Albany Park is a cozy middle-class neighborhood. It is near Little Korea, which is one of the most diverse neighborhoods in the country.
  • Recent Renovations and Property Conditions: The home was completely rebuilt in 2009 and recently renovated in 2016 with durable high-end finishes thus bringing the homes effective age to almost new.
  • Escrowed Interest: The first 12 months interest will be placed in escrow.

Location Highlights

  • Chicago’s is one of the world’s largest and most diversified economies
  • The Albany Park neighborhood is rich in tradition and culture making it attractive to all walks of life.
  • Over 2.7 million residents in 2015, 11.62% we over the age of 65 years old.
  • The home is only a block away from many shopping and dining options.
  • Community residential setting versus a larger institutional type setting.

Exit Strategy

The borrowers will modify the home and fill with tenants over the first 12 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 thus re-paying all the principle to RealtyeVest’s investors.


Due Diligence Highlights

  1. Spoke with sponsors numerous times to discuss project intricacies.
  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. Spoke to industry leader to validate the business plan set forth by the sponsors.

Senior Shared Living, LLC is an experienced team and strategy poised to take advantage of the opportunity. Pat Livesay-Smith, Senior Shared Living’s Director of Operations, has 37 years of experience in the industry and Marc Collura, Senior Shared Living’s Marketing Director has 12 years of experience in the industry.


Risk Mitigates

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.

Sponsor: The sponsor group is made-up of exceptionally accomplished individuals. Separately they are all industry leaders respectively. Over 50 years of Senior Care experience at the executive level.

Pricing and Business Plan: Shared Senior Living is prepared to offer a better-quality living space with exceptional care quality at a far better price than the competition as they will not have a large institutional staff overhead.


Projected Returns

Purchase / Renovation / Holding Costs
Property Purchase Price $936,580
Property Modification $160,000
Business Start-Up and Operational Costs $230,000
Organization Fee $98,513
Admin Start-Up $0
Debt @ 12 months @10% - $1,400,000 $140,000
Total $1,407,330
Refinancing Costs
Total Refinancing Costs (~4%) $156,991
Profit Summary
Stabilized Market Value $3,924,780
Total Hard & Soft Costs $1,564,321
Net Profit $2,360,546
Bonus Amount to Investors 10% $236,046
Total Amount to Investors $376,046
Investor Annualized Return on Investment (ROI) 18%
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.

2Profit Participation – An investor earns a portion of the net profits when the real estate investment is sold or refinanced, this can sometimes lead to an additional hundreds or thousands of dollars to the investor. Net Profits are defined as Gross sales price less any and all acquisition costs, holding costs, rehab costs, closing costs including but not limited to liens, commissions, title charges, etc.


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 Spaulding House” 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 located in a suburban neighborhood on the Northeast side of Chicago in Albany Park. Albany Park, known as Little Korea is one of the most ethnically diverse communities in Chicago.

The established three story home will go through renovations, to include installing an elevator, additional bedrooms, additional bathroom and many updates to ensure clients are as comfortable as possible. Once completed the home will have nine bedrooms.

The Spaulding House is located less than 10 miles from Downtown Chicago which houses the Navy Pier and about 9 miles from the infamous “Sears Tower” which is 1,450 foot Skyscraper.

Property Address 4311 N Spaulding Rd Chicago, IL 60618
Property Type Assisted Living
# of Bedrooms 4
# of Bathrooms 3.5
Year Built 1912
Finished Square Feet 3,600
Lot Size: 3,750
External Materials: Brick
Parking Type: Garage - Attached
Architecture: Other
Roof Type: Asphalt

Property Location

Market Overview

This charming home is located in Cook County Illinois. Cook county is the second most populous county after Los Angeles. With over 5.2 Million people and growing, over 40% of the state live within the county. Cook County houses the Capital of Illinois, Chicago, making this the most populated sub market in the state and almost the nation.

Chicago was named the fourth most important business center in the world in the MasterCard Worldwide Centers of Commerce Index. With this impressive economy comes an equally impressive work force making Metro Chicago the 3rd largest labor pool in the United States with just under 4.5 Million workers and an unemployment rate of 4.3%. The median household income is $78,342 as of 2015 according to the census.

Chicago Metropolitan area has the third largest science and engineering workforce in the Nation and is the second largest central business district in the U.S. The area is also home to several manufacturing, printing, healthcare and publishing companies. Chicago is also home to 29 of the Fortune 500 Companies.

Top Five employers in Metropolitan Chicago:
U.S. Government 43,000 employees +
Chicago Public Schools 36,000 employees +
City Of Chicago 31,000 employees +
Cook County 21,000 employees +
Advocate Health Group 19,000 employees +

The city also boast some additional large corporations like JPMorgan Chase, Walgreens, Abbott Laboratories, American Airlines, Allstate, Northern Trust Company and United Continental Holdings.

88 / 100 [ Very Walkable ]

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