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.
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.
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.
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.
|Purchase / Renovation / Holding Costs|
|Property Purchase Price||$936,580|
|Business Start-Up and Operational Costs||$230,000|
|Debt @ 12 months @10% - $1,400,000||$140,000|
|Total Refinancing Costs (~4%)||$156,991|
|Stabilized Market Value||$3,924,780|
|Total Hard & Soft Costs||$1,564,321|
|Bonus Amount to Investors 10%||$236,046|
|Total Amount to Investors||$516,046|
|Investor Annualized Return on Investment (ROI)||18%|
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.
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.
Senior Shared Living, LLC has 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. Her son, Marc Collura, Senior Shared Living’s Marketing Director has 12 years of experience in the industry. Pat points out that the widely offered institutional type facility is very unpopular with a large portion of the demographic. In short, our purpose is 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.
Our goal is to build a widely recognized industry leading brand in this niche in the next 3-5 years. The target location for these properties is near their families disbursed throughout the community focused on areas with low crime and easily accessible transportation and shopping.
Pat Livesay-Smith has been involved in the home healthcare industry for 37 years. She’s the founder and former operator of Inhome Home Healthcare. Inhome collects over 12 Million dollars a year in annual revenue over the last 10 years. It currently employs roughly 200 registered nurses and licensed physical therapists. She resides in Algonquin.
Marc Collura is Pat Livesay-Smith’s son and the former operator of In Home Home Personal Care Services over the last 12 years. In Home did 80 Million dollars in revenue over that period. In addition, he is an accomplished internet marketer and is credited for attracting the majority of the revenue for both Bowes and In Home during those 12 years. He resides in West Dundee.
G.D. Chaplin has done over 100 million dollars in sales in his career to over 3,000 clients bringing experience in a number of operational and financial areas in diversified areas. This includes raising private capital and financial analysis as an investment broker for 5 years, administrative, management, operational, and strategic skills from operating a physical medicine clinic for 15 years, and active operational involvement in various real estate companies, projects and consulting for the past 10 years. He has a degree in finance from the University of Illinois. Mr. Chaplin resides in Clarendon Hills.
Robert Bock was employed for 28 years by Alcatel-Lucent of Naperville as a product operations manager during which he directed projects which generated revenue of several billion dollars for his company and revolutionized worldwide communications. As an active real estate investor, he holds interests in as many as 270 units while managing over 150 units directly, both financially and operations. He has an engineering degree from Purdue University and a master’s degree from Illinois Institute of Technology. He resides in the LaGrange, Illinois area, with his family.VISIT SPONSOR WEBSITE
“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||Luxury Assisted Living|
|# of Bedrooms||9|
|# of Bathrooms||4|
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.
The city also boast some additional large corporations like JPMorgan Chase, Walgreens, Abbott Laboratories, American Airlines, Allstate, Northern Trust Company and United Continental Holdings.