April 5th, 2018 – Commonwealth Development (CWD), a real estate development company focusing on adding value and bankrolling senior care projects, welcomes operators for its private equity based investments in senior housing properties, which include independent living, assisted living, memory care and skilled nursing facilities.
Using a triple-net lease structure, CWD’s Institutional Fund will invest in Greenfield and replacement projects along with acquiring stable properties. The facilities on the radar also include Alzheimer’s care and skilled nursing facilities with strong preference for higher acuity. In particular, CWD is looking for ‘A’ or ‘B’ quality properties that are highly competitive in their markets. The preference of the fund is for MSAs and strong, secondary markets.
The equity fund will act as the sole owner of the properties, and will be used for funding new development and acquiring properties. CWD and its management partner firms specialize in profitable real estate acquisitions and development.
“We are equipped with a strong and cost-efficient laid out plan to bankroll the development acquisition and of value added Senior Care projects,” said a spokesperson for Commonwealth Development.
Among the key features of the sites preferred by CWD are good visibility and complimentary surrounding land use. The lease rates can be between 8-9.5% based on the asset type and with annual escalators. The initial terms with renewal option will be 10-15 years in duration, and the operator will get the opportunity to buy the asset at negotiated and predetermined price schedule. The purchase option will be available as early as the second year.
A key differentiator of CWD Fund that invests in senior care investments is its flexibility and ability to incorporate near-term purchase options in the lease agreement. Especially in case of new development, the operator can quickly realize value creation as they can buy the property as early as stabilization. Another plus point of the fund is that it offers greater certainty to operators in value creation by establishing predetermined and below market purchase prices.
Operators who are looking to monetize one or more properties without losing complete control would also benefit from a clear path that the fund provides to gain ownership in the future. This can happen with a sale-leaseback, using an existing purchase option or by facilitating an eventual ownership transfer. Operators can also exercise a time dependent and attractive purchase option while retaining a long term purchase option.
For more information, please visit: http://cwdfl.com/
Company Name: Commonwealth Development Land Trust
Contact Person: Tim H. Safransky
Email: Send Email
Address:3905 Tampa Road #2412
State: FL 34677
Country: United States