12610 Venice Blvd - Verona Court

New Gated community of 12 luxury units each with 4 bedrooms/4.5 bathrooms, 2,418-2,432 sq. ft. each plus decks and rooftop decks.
Using Verona Court as a Health Services Community, the financial potential is robust. It will involve building a business which experts have told us will take 6-12 months. It would require cash to build and carry until the beds fill.
After that, the mature numbers are very substantial. The forecasts attached are based on information we have assembled from sources and need to be independently verified. They reflect maturity after the 6–12-month business building process. In terms of building up the business quickly, there is a source that could potentially help: Faebl Studios. Faebl Studios indicates they are the only growth accelerator exclusively for substance use treatment facilities. 323.553.2600. Their client list includes Detox in Los Angeles, Embodied Recovery, Silicon Beach Treatment Center, Clear Day Treatment Center, Beacon of Hope, Aksha Recovery, Ajna Center, and Hygea Healthcare group.
We have been informed the expected revenue would be $9,750/bed/month with an average occupancy of 70%.
The second attachment on Page 5, the report reflects in 2023, fair market valuation of 13.3 x of EBITDA for Behavioral Health sale transactions.
For the Lease Choice the forecasted $2.25M of EBITDA = a valuation of $30M in year five.
For the Purchase Option, $4M of forecasted EBITDA = a valuation of $55M for the business plus the real estate forecasted valuation of $30M for total valuation of $85M in year five which would be a 300% ROI.
A few years ago, a Malibu facility reportedly sold for over $100M. In the event the desire is to sell the business, the probable buyer could be a private equity firm.
Private Equity is flooding into addiction treatment for a reason:
NO ULA aka "Mansion Tax" Saving Over $1,000,000 Upon Exiting into a 1031. DST, or straight sale.
Bonus/Accelerated/Regular Depreciation potential of $1,500,000 in the first year (proposal available).
12 - Two-car side-by-side garages that can potentially be used for recreation (ping pong, billiards, shuffleboard, arts/crafts, movies, massage, therapy sessions, card games, basketball shooting games, foosball).
Location, Location, Location = Mar Vista with an 88 out 100 Walk Score.
New Construction Warranty (1/4/10 years).
One contract/one escrow/one prelim for all 12 (small lot) SLO homes!

Exciting financing options.
Phenomenal, algorithm based forecasted appreciation report (27% aggregate next 5 years). Contact me for details.
Buyer to verify all information.