Non-Performing Loan Acquisition


Sponsor purchased Ivy of McKinney (the “Property”), a Class A, 97-unit assisted living and memory care community in McKinney, Texas in September 2019. At time of closing the property was about 77% occupied. Sponsor purchased the loan and associated real estate in a loan short sale for 78% of par from BB&T bank.

The Property, built in 2011 for $13.9M, offers comfortable services, amenities, furnishing and is located in one of the strongest submarkets in the country. Approximately 30 miles north of Dallas, McKinney boasts an average HH income that is more than the national average. The community’s location on Medical Center Drive is less than one mile from Medical City McKinney, one of the top hospitals in the McKinney area for elderly needs.

Value-Add Acquisition


Mariposa Point at Algodon Center (the “Property”) is a Class A, 87-unit assisted living and memory care community in Phoenix, Arizona built in late 2018 and currently in lease-up. The Property presents a value-add opportunity through lease-up. The selling party ran out of working capital and was looking for a fast exit to avoid the need for additional capital.

The Sponsor plans to increase revenues by focusing marketing efforts and gaining census. At acquisition, the Property had a per unit occupancy of approximately 17%. Utilizing the Manager’s proven marketing strategy and hiring a veteran sales specialist, the occupancy is forecasted to reach 92% within three years.

Sponsor believes this three-year lease-up is conservative and achievable.