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NEW PORT RICHEY, FL, July 28, 2020 /24-7PressRelease/ -- MM Realty Capital Partners originates and manages investment opportunities in the manufacture of senior living communities in Florida, with five (5) development sites virtually shovel ready. The buildings are pre-sold to private investors prior to construction start. Financial close takes place at building completion. Investment period is expected to be 24 months. Anticipated Internal Rate of Return (IRR) is 35%. There is little, to no, debt used.
MM Realty Capital Partners has configured a truly institutional quality, best in class, project team with each member amassing billions of dollars of successfully completed projects.
A unique aspect of this venture is the inclusion of N21 Group ("N21") who act on behalf of the equity investment group. N21 will oversee all aspects of the project's execution and will report to the equity investment group. Supervision and operational redundancy (independence) is a key protection point for the equity investment group.
The OCMX™ is pleased to announce the listing of MM Realty Capital Partners to its online portal which offers Investors and Advisors the ability to participate in this opportunity.
The OCMX™ has spent considerable time completing its due diligence on MM Realty Capital Partners and concluded that there is indeed a tremendous opportunity for Investors and Advisors.
The OCMX™ noted that MM Realty Capital Partners exhibits the main components of any solid investment opportunity, namely a solid management team, a great track record, and a number of key competitive advantages.
Cases/deaths are overwhelmingly found in long-term nursing care communities. Resident pre-existing health conditions combined with the closeness of care provided by staff members are the cause. New light assisted and assisted senior living communities have seen little to no problems due to COVID-19. Please note, long-term nursing care communities are much further down the care spectrum than the light to moderately assisted senior living communities that MM and team are developing.
a. Access to additional staff from hospitality sector.
b. Disequilibrium in debt market (particularly construction loans) will produce "Buy Opportunities" for development sites.
c. Our contractor (Douglas) is at the forefront of new designs for a post COVID-19 world, incorporating electronic sanitation systems, entry systems that remotely monitor peoples' temperatures and HVAC systems with infrared systems to sanitize. Due to the fact that we first pre-sell our buildings to investors, we will not be entering into construction for approximately 1 year. This will enable us to take advantage of these technological advancements.
d. More long-term equity capital is looking for durable cash flow. During the last credit crisis (2008), this sector proved itself to be the most durable form of cash flowing real estate. Occupancy never dropped significantly below 90% and it continued to see positive rent growth, year after year.
2. For the first time in history, the old will outnumber the young
Over the next 20 years, the global population of people aged 65-and-older will almost double to 1.3 billion.
3. US senior housing demand is driven by demographic demand
The baby boomers began turning 65 in 2011, with an additional 10,000 people turning 65 each day. By 2029, the remainder of the baby boomers will reach age 65 and account for more than 20% of the total US population. According to the U.S. Department of Heath and Services, approx. 70% of adults over the age of 65 will require care at some point in their lives.
4. Research indicates people are expected to live significantly longer than currently anticipated by demographers
For people born in 1935, the time that Social Security for seniors was put in place, life expectancy was 65 years old; today it is 79 (76 for men and 81 for women). For those already 65 years old, life expectancy is an additional 15 to 20 years.
5. The old-age dependency ratio is rising sharply, resulting in a rapidly increasing need for senior living facilities
Senior housing has evolved to better match the new demands and lifestyle of seniors and their adult children (decision makers) by offering a broader spectrum of alternatives, as well as continuum of care within a community that allows seniors to age in place without needing to move.
6. The demand for new senior housing units in the US is projected to surge to 2030 and beyond
This increase in demand is estimated to be approx. 850,000 units by 2030 – an unprecedented level of industry growth. Senior housing occupancy has been relatively consistent and never significantly below 90% – even during the economic downturn in 2008.
7. Senior housing is much less sensitive to economic downturns, compared to other real estate property types
Senior housing properties have generally outperformed the broader National Property Index (NPI) since at least 2003. Generating annualized total returns of 14.7% over the last 10 years (2014 statistic), versus 8.1% for multi-family. Over a ten-year period, Senior housing returns have outperformed the NPI and multi-family housing in total returns, appreciation and income returns.
Since 1980, Mr. Marchant was President of The Marchant Group of Companies and has been responsible for all aspects of business operations for the Marchant family including construction lending; secured mortgage lending; residential apartment building ownership; equity partnership in multi-unit residential condominium developments; property manager and developer/builder.
The investment vehicles utilized were characterized by sophisticated investment analysis, income tax planning and ongoing investor representation. Representation of institutional clients, including C.M.H.C., one of the four largest Canadian banks and the Ontario Government on matters of distressed properties were also undertaken.
Morgan has direct management of all MM activities including all investment structure creations, project feasibility approval, investment pro formas, all capital raise functions, ongoing investment vehicle administration and capital partner investment administration.
Morgan graduated with an MBA from the Degroote School of Business, was awarded the Governor General's Silver Medal and for several years was a registrant with the Ontario Securities Commission, always in good standing.
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