Birchwood Kansas Senior Housing Webinar

OFFERING MEMORANDUMby

Birchwood Kansas PortfolioTopeka, KS – Salina, KS – Wichita, KS – Herington, KS

Senior housing and nursing portfolioAcquisition by Birchwood Health Care Properties

http://www.birchwoodhcp.com

DISCLAIMER

Birchwood Kansas Portfolio

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from PeerRealty, LLC and should not be made available to any other person or entity without the written consent of PeerRealty, LLC. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. PeerRealty, LLC has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, PeerRealty, LLC has not verified, and will not verify, any of the information contained herein, nor has PeerRealty, LLC conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

This information is proprietary and strictly confidential, and is intended to be reviewed only by the party receiving it from Peer Realty, LLC. It should not be made available to any other person or entity without the written consent of Peer Realty, LLC. This presentation has been prepared to provide summary information to prospective investors, and the information contained herein is not a substitute for a thorough due diligence investigation.


13% CAP RATE

30%PROJECTED

IRR4.15% EQUITY

MULTIPLEover 10-year hold

period



Birchwood Health Care is acquiring a portfolio of five properties (four nursing homes and one independent living facility) from four different sellers for a total of $10.15 million, allowing Birchwood to achieve greater diversification and market presence.

Executive summary



Birchwood Health Care Properties (“BHCP”) has secured the opportunity to acquire five facilities through four separate transactions (with four separate sellers), that when combined, will be a five facility portfolio in a tight geographic footprint.

Four of the five facilities are being acquired during an upswing in operational performance due to change in operational control over the last two years. The fifth facility is stabilized.

BHCP intends to refinance the Portfolio within the first 36 months of ownership which should allow for a return of substantially all invested capital.

The farthest facilities are 1.5 hours apart and all within the new operator’s current geographic footprint. The operator’s corporate office is located directly in the middle of this Portfolio.

Two of the five properties have excess or adjacent land which is prime for the development of a different acuity care level facility, likely Assisted Living. This upside is not underwritten in the model.

By aggregating four acquisitions into one portfolio, BHCP believes that material improvements can be made to the Portfolio's revenue, census and operating margin through more sophisticated and reinvigorated management, economies of scale, market representation and market knowledge.

Project Summary



Market



Project Summary



Investment Financials

Projected IRR: >30%

Offering Size: $1,000,000

Total Transaction Size: $12,703,875

Underlying Security: Common Equity

Property Type: Senior Housing

Investment (Phase) Type: Opportunistic

Term Length: 10 years

Minimum Investment: $5,000



Birchwood Health Care Properties, L.L.C. (“BHCP”) was founded by Isaac Dole in 2014. Prior to BHCP, Mr. Dole was Managing Director of Acquisitions for a large publicly traded healthcare REIT.

Throughout his career in health care real estate, Mr. Dole has participated in excess of $350 million of nursing home and senior housing transactions. Mr. Dole has acquired 55 nursing homes which total over 3,700 beds. In totality, the principals of BHCP have participated in more than $3 billion in commercial real estate transactions.

BHCP’s strategy capitalizes on a sophistication arbitrage opportunity wherein BHCP acquires underperforming facilities from legacy owner-operators and transitions them to more sophisticated operators.

Sponsor Summary



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Birchwood Kansas Senior Housing Webinar