Saint Anthony's Memory Care & Skilled Nursing Facility

A full-scale renovation and adaptive reuse of the existing 53,000 square foot former nursing facility into a modern senior housing community, leveraging the property's already-active Elderly Housing Special Use Permit. The redevelopment will reconfigure the existing 101-bedroom layout into right-sized independent living, assisted living, and/or memory care suites, consistent with the room layout modifications outlined in the property's own redevelopment materials. The 4.994-acre site provides ample room for expanded parking, landscaped courtyards, and outdoor recreational space for residents. The facility's central location, near downtown Denton and within immediate reach of the University of North Texas and Texas Woman's University campuses, positions the community for strong visibility, staffing access, and family visitation convenience.

Financial Breakdown:
The project is mixed-financed with $7M of Capital, composed of $2M of a operational loan at 6% - 30 years of mortgage and $5M worth of equity. The equity is broken down into $300K worth of cash that is bound for the single payment insurance exactly in the first year’s of operation. The property’s market value is considered $2.7M followed by a renovation worth of $2M, thus making the project worth of $4.7M exactly on the first day of operation of Saint Anthony's Memory Care & Skilled Nursing Facility. The renovation cost is projected at $37.74/sqft. The payments of the loan will follow a capital repayment structure. The attributable cash flows will be disbursed entirely to the owners as the ownership of the building will always remain with the landowner, and that’s why, if at the end of the 7th year the ownership is transferred, the owners will go away with a total of $78.80M. On the other hand, the GP will receive 20% of the lease payment per annum, thus allowing him to get a total of $2.22M. The owners will also get the rest of 80% of all the lease revenue, totaling $8.90M. The initial investment of $5M gets multiplied by 16.76X. The project’s unlevered IRR is 77.05%, and the levered IRR is a whopping 109.52%. We believe on the sustainability of these numbers as senior housing is in high demand and our degree of operating leverage (risks from operating costs) is very low.