New Bedford Recovery
Overview
Lease and Income Structure
This is a value-add purchase with two levers. The first is physical: finish the third floor and bring it into service. The second is operational: the home runs at roughly 60% occupancy today, so stronger admissions, referral relationships and house leadership raise income on the beds that already exist while the construction is under way.
The financing is built to keep cash to close low. Renovation financing covers 100% of the roughly $110,000 completion budget inside the first mortgage, and up to $100,000 of owner financing is available in second position behind it.
The home is sold fully furnished with its operating history intact, which removes most of the uncertainty of a ground-up conversion. It is best suited to an experienced operator or owner-operator who can run a construction schedule and a house at the same time. A passive investor should have a qualified operator and project manager in place before closing.
Work Needed
The primary work is completion of the third floor, estimated at approximately $110,000. The 25-bed figure used in the financials assumes that work is finished and the space is in service.
This is a targeted completion scope, not a redevelopment. Diligence should cover the third-floor plans, permits, egress, fire protection and life safety systems, ceiling heights, bedroom and bathroom layout, HVAC and electrical.
Plan for operational stabilization alongside the construction. Current occupancy is approximately 60%, so admissions, marketing, referral relationships, house leadership and day-to-day management will drive how quickly the property reaches its full value.