Amber Grove Senior Living$7M ARV • 64 Units • Montgomery, AL
Premier 64-unit independent/senior living facility with massive value-add upside through phased renovation. Purchasing $2.5M below ARV with proven operator and clear path to stabilization.
Class B property • Proven market • Baby Boomer demographic wave
Why This Deal Works for Lenders
Conservative LTV
Lending at ~51.4% ARV provides massive downside protection
Proven Operator
5GK Properties has 15+ years running independent living facilities locally
Demographic Tailwinds
Baby Boomer wave creating unprecedented demand for senior housing
The Value Creation Opportunity
Transform a distressed asset into a Class A senior living facility through strategic renovation and expert operations
Value Creation Path
Purchase Price
$4.5M
Value Creation
$2.5M
The Amber Grove Advantage
Attractive Acquisition
Purchasing at $4.5M ($70K/unit) in a market with $110K+/unit comps
Strong Bones
Well-built 1990s/2000s buildings on 3.2 acres-needs cosmetic rehab, not structural work
Proven Location
One of Montgomery's top 3 areas-new Starbucks/Publix 100 feet away
Phased Approach
Renovate and fill one building at a time-cash flow starts immediately
Experienced Team
Original owner/operator staying on as consultant-15+ years operating this exact facility
Market Tailwinds
Baby Boomer generation creating 20-year demand surge for senior housing
Located in a Class B+ neighborhood with excellent access to services, healthcare, and retail. Property previously supported $5.2M loan in 2019.
Building 1 already rehabbed and lease-ready. Phased 8-month plan for remaining buildings with detailed scope and budget. Time to revenue: immediate.
Massive $2.5M equity cushion provides substantial downside protection. Hard asset with strong fundamentals in growing senior housing market.
Deal Structure & Returns
Conservative underwriting with significant upside and lender protection
Acquisition & Development
Lender Position (Example)
Lender Safety: With $3.4M in equity cushion above the loan, lender is protected even if market conditions deteriorate during stabilization.
Investment Highlights
For The Lender
- Conservative 51.4% LTV based on $7M ARV
- $3.4M equity cushion protecting loan position
- Experienced sponsor with 15+ years in senior living operations
- Hard asset in growing market with strong demographic tailwinds
- Clear exit via refinance into permanent financing or sale
For The Borrower
- Buying $2.5M below stabilized value (ARV)
- Building 1 already renovated-immediate revenue opportunity
- Clear value-add: cosmetic renovation not ground-up construction
- 8-month phased rehab timeline with detailed execution plan
- Target 18-22% IRR over 5-year hold period
Phased Renovation Strategy
8-month phased renovation allows immediate revenue generation while completing remaining buildings
Renovation Scope & Strategy
Physical Improvements
- Complete MEP system replacement (electrical, plumbing, HVAC)
- New flooring, fresh paint, and updated finishes throughout
- Common area upgrades: kitchens, dining rooms, living spaces
- Landscaping refresh, new fencing, parking lot reseal/restripe
- Technology: security cameras, access control, smart building systems
Strategic Advantages
- Phased approach: Renovate one building at a time to start generating revenue immediately
- Building 1 complete: 16 lease-ready units available now for immediate occupancy
- Separate parcels: Each building on own parcel enables independent operations
- Cash flow timing: ~$48K/month revenue added as each building opens
- Risk mitigation: Test market with Building 1 before completing full property
Deal Documentation
Complete due diligence materials for underwriting review
Purchase and Sale Agreement
Executed PSA - $4.5M Purchase Price
Executive Summary
5GK Properties - Investment Overview
Deal Summary
Detailed Financial Analysis & Projections
Ready to Fund This Opportunity?
Conservative LTV, massive equity cushion, proven operator, and demographic tailwinds make this an attractive senior living investment
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