Updated about 9 years ago on .
Non-Cash Investment Joint-Venture Skilled Care & ASL Development
Seeking non-cash Joint Venture Partner(s) for 68 bed skilled care nursing home (phase 2: 46 bed assisted living facility) in South Georgia. We are not in need of additional capital investment, but are searching for strategic partners to assist us with posting a conditional short-term (18 months) credit guarantee for the revenue bonds that are being issued to finance the project.
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Total Project Cost: $12.6 mil
Financing Source: Municipal Revenue Bond sale.
Project Type: Skilled Care Nursing / Assisted Living Component
Total Project Construction & Lease up period : 18 months
Desired Partnership structure: Limited Partnership, guaranteeing partner shall not be required to invest capital into the project over and above the short-term construction guarantee. Negotiable.
Profit & Loss, Business Plans, Studies, Offering documents, other pertinent information: available upon rest.
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Guarantee Terms:
18 months
Limited call, behind capital reserves (approximately 2 years worth) and other partners
Non-liable for construction overruns, as project is fully bonded by national construction firm.
Non-extendable
Guaranteeing partner shall receive 20% of net operating proceeds, and 20% of sale proceeds when facility is sale/lease backed in 3-5 years.
Negotiable.
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Risk Remediation:
The risk to all partners credit guarantees is lessened by the fact that the guarantee being offered to the bond holders is limited to 18 months, and is further lessened by the fact that construction is 100% bonded to protect ownership from construction issues. And the project will open with A two year capital reserve which will protect the firm from capital calls before the guarantees can expire at 18 months.
Brokers are welcome, cash or equity depending on source secured.
Please feel free to reach out for more information.