Memory Care Facility, Las Vegas NV

We are buying the note on this property from Valley Bank for $2.36M, which is the value of the first mortgage. This is a Memory Care facility with 24 rooms, 100% occupied, with a waiting list.

The cash flow on the property is about $110k per month, and the NOI is around $20k per month.

Valley Bank is in an active bankruptcy case with the borrower (Chapter 11) because the property was not full for its first two years of operations. However, a new manager has brought the property to full capacity with a waiting list.

Our investor holds a 3rd mortgage for $105k on this property, and a 1st mortgage on land up north, and the borrower wants to work with us so that we can buy the note, foreclose on the property, and then release his 1st mortgage on his land.

Property was appraised by the bank this year at $5M stabilized, but the quick sale value is around $3.5M.