Tuscan Gardens® Projects/Pipeline

Operating Since November 2016

Tuscan Gardens® of Venetia Bay

On May 20, 2015, a 6.3-acre parcel of vacant land located at 841 Venetia Bay Boulevard, Venice, Florida, was acquired. This site marks Tuscan Gardens® first senior living community known as "Tuscan Gardens® of Venetia Bay", which operated since November 2016.

The community has three structures connected by corridors, totaling approximately 128,500 square feet, and consists of 136 units comprised of 78 assisted living units, with 90 licensed assisted living beds, 58 memory care units, and common areas.

Nestled on over six lush acres in the heart of Venice, Florida, Tuscan Gardens® of Venetia Bay is near Venice Regional Medical Center and other medical facilities, minutes from the historic downtown district with shopping, restaurants, and services, and close to the Gulf of Mexico and beaches.

Operating Since December 2018

Tuscan Gardens® of Palm Coast

Tuscan Gardens® of Palm Coast Properties, LLC purchased a parcel of vacant land, containing approximately 71.5 acres, in Flagler County, Florida.

The land is located at the intersection of Colbert Land and Blare Drive, in Palm Coast, Florida, approximately one-half mile south of Palm Coast Parkway. It is within seven miles of the regional hospital and other medical services, and one mile from the downtown district and the Atlantic Ocean beaches.

In addition to other due diligence, a Feasibility Study and Demand Analysis for Independent Living, Assisted Living and Memory Care Assisted Living on the Palm Coast, Florida market area was obtained. A Notice of Commencement for Construction was filed and construction began on June 16, 2017.

The plans for Tuscan Gardens® of Palm Coast include two four-story buildings with a total of approximately 210 units and 263 beds, including an Independent Living building (Phase II), which will have 80 units with 100 beds. The Assisted Living building will contain 70 units with 88 beds, and the Memory Care building will have 60 units with 75 beds, although that might change based on market demand.

Projected Construction Spring 2018

Tuscan Gardens® of Delray Beach

Tuscan Gardens® of Delray Beach Properties, LLC has purchased a parcel of vacant land, containing approximately 7.57 acres, in Palm Beach County, Florida.

The Due Diligence period under the Purchase and Sale Agreement has passed and all required governmental approvals to develop, construct, and operate a senior housing facility comprised of 164 beds have been either approved or issued.

The current plans for Tuscan Gardens® of Delray Beach include two buildings with a total of 130,000 square feet, 130 units with 178 beds. The community will offer 16 Supported Living Units with 32 beds, 64 Assisted Living Units with 92 beds, and 50 Memory Care Units with 54 beds, although the unit mix may change slightly based on final Palm Beach County requirements.

Barring any unmet conditions of the Agreement and any unforeseen circumstances, construction should begin spring 2018.

Projected Construction Summer 2018

The Heritage® at Forest Acres

The Heritage at Forest Acres Properties, LLC has contracted to purchase a parcel of vacant land, containing approximately 27 acres, in Richland County, South Carolina.

The land is located East of Sunnyside Drive, ¼ mile north of Trenholm Road in Forest Acres, South Carolina. Forest Acres is an enclave within the City of Columbia, South Carolina. It is within 3 miles of both major hospitals, downtown Columbia, The University of South Carolina, and The State Capital. Fort Jackson, the largest Army Entry Training base in the United States is located within 3.5 miles of the site. Close to 3,500 civilians are employed at Fort Jackson and 46,000-plus retirees and their families receive services from this base.

In addition to other due diligence, a Feasibility Study and Demand Analysis for Independent Living, Assisted Living and Memory Care Assisted Living in the Columbia and Forest Acres market area was obtained.

The plans for The Heritage at Forest Acres include a 3-story Assisted Living building with a total of approximately 80 units and 110 beds and a single-story Memory Care building with a total of approximately 50 units and 60 beds. An Amenity building will connect the two buildings. The total square footage of the 3 buildings will be approximately 135,000 square feet. In addition, a Supported Living phase will have approximately 40 2-bedroom 2-bath cottages at about 1000 square feet each. The final unit mix may change based upon final governmental requirements.

The Investment Case for Senior Living

1

Supply/Demand Imbalance

The Great Recession suspended construction lending/starts from 2008-13 while demographic demand continued to grow at an accelerating rate. This has resulted in an increased level of unsatisfied demand that cannot be adequately serviced by existing supply.
2

Baby Boomers’ Impact on Programs/Residence Experience

The first wave of Baby Boomers turned 65 in 2011 (will turn 75 in 2021). Unlike prior generations, this cohort has an expectation of abundance in a resident experience that introduces additional considerations (amenities, programs, hospitality) to senior housing far exceeding current market norms.
3

Sustainable Yield

From 2008-2013 capital market conditions produced attractive value-add opportunities for well capitalized buyers that were able to take advantage of them. Strong returns have been achieved from these opportunities due to the thawing of market illiquidity and cap rate compression.
4

Dislocation of Legacy Product

The development of new product that satisfies the needs of the emerging senior cohort can be delivered at “market average” legacy rental rates. When given the choice between an older legacy property vs. a new property with larger rooms and better programs, like Tuscan Gardens, the new product becomes extremely compelling. New entrants will enjoy a structural competitive advantage and will capture meaningful market share. Due to this threat to legacy competitors, the market is likely to bifurcate (“A” vs. “B” class properties), suggesting that “high end” product and resident experience differentiation is strategically necessary, as it aligns with the demand of the cohort and the anticipated (bifurcated) future competitive landscape.
5

The senior housing market is highly fragmented

According to the American Senior Housing Association (ASHA) 2014 Top 50 Report, the largest owner (Brookdale/Emeritus with 67,549 beds) is six times larger than the 10th largest owner (Harrison Street Capital with 11,669 beds) and almost 23 times larger than the 50th largest owner (Cornerstone with 2,960 beds). As such, large owner/operators have access to efficient capital, so the opportunity for outstripped returns can primarily be achieved through smaller value-add candidates such as Tuscan Gardens®, with its focus on development and strategic acquisitions advantage (and resultant returns).

The Investment Case for Tuscan Gardens® Capital Partners

1

Tuscan Gardens® offers compelling economics

Our current fund pays 8% annual income on a monthly basis and gives our investment partners an equal share of the net proceeds from liquidity event.
2

The senior living industry has sustainable demographics

The largest demographic cohort (Baby Boomers) is entering its senior stage of life. Increased lifespan and health suggest this will continue to be a robust and expanding market segment for the next 10-20 years that warrants meaningful capital allocation.
3

The Tuscan Gardens® Management team has led in the development of four senior housing opportunities since 2010 and has built a pipeline of four attractive properties moving forward

4

Our Leadership team has broad experience

More than 175 years of collective experience in real estate development, financing, and investment through multiple economic cycles in multiple asset classes (single family, multifamily, hospitality, commercial, retail, and senior housing).
5

Florida centric

Orlando-based, with decades of southeastern regional (and national) market experience. Southeast markets (Florida most notably) enjoy higher per unit revenue levels, lower per unit operating expenses, and higher margins than national averages and most other markets.
6

We have an innovative and robust delivery service

Tuscan Gardens® Management Group provides best in class execution of policies and programs. Additionally, its leadership has extensive experience creating and scaling market-leading service organizations that have captured market share in multiple industries through innovative differentiation. The Tuscan Gardens® Management Group culture and program vision combined with its robust delivery provide a unique selling proposition that has the ability to meet and exceed the needs and demands of the emerging cohort.
7

We offer investors the opportunity to co-invest for up to 10% of equity

Tuscan Gardens® Management Group currently raises retail private equity for ongoing pre-entitlement investment and project co-investment.
8

Tuscan Gardens® has a very robust pipeline

With more than twelve sites and strategic acquisitions currently under review, meeting program goals are readily achievable. Tuscan Gardens® Management Group’s extensive exposure assures an ongoing source of opportunities to support the development of communities over the next five years, ensuring an ongoing capital allocation opportunity for Tuscan Gardens® investors.
9

Tuscan Gardens® offers high confidence of execution

Beyond its internal leadership experience, Tuscan Gardens® brings a proven team comprised of market-leading architects (Bessolo Design and Baker Barios), general contractor (Core Construction), marketing (Sage Age), interior design (Mosaic), and feasibility study provider (Clifton Larsen Allen). Tuscan Gardens® Management Group is a true “plug and play” investment opportunity for investors seeking first mover advantage in selected markets through high-confidence execution.

Get in on the ground floor of the “Silver Tsunami”

Now is the time to join our dynamic executive team and be a part of one of today’s most timely real estate opportunities. But don’t wait.

If you like what you see and hear and want to take advantage of the demographic shift our country is experiencing today, you owe it to yourself to become one of our family of investors.

The Current Opportunity
  • $25,000,000 multi-class offering
  • Project Pipeline
  • Current cash flow
  • Future growth
  • IRA eligible
  • $50,000 minimum investment
The Benefits
  • 8% annual/return paid monthly
  • 50% of liquidity proceeds on the sale or refinance of properties
  • Stability of real property
  • Opportunity to invest in one community or all

Assisted Living by the Numbers

Seniors aged 75 and above increasing from 19 million to 44 million by 2025

Census.gov – 2014

Roughly, 70 percent of adults over the age of 65 will need long-term care at some point in their lives

US Dept of Health (Longtermcare.gov – 2016)

The U.S. assisted living industry totaled $42.7 billion in 2006, $56.3 billion in 2011 and is expected to exceed $79 billion in 2016

Kalorama Information Group – 2016

81 million baby boomers continue to turn 65 at the rate of more than 8,000 per day over the next 20 years.

Johnson & Parnell (2016-2017)