John Raddatz
Saint Paul, MN (USA)
Role(s):
Active Funding Request
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Oak Acers
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Startup
Location:
Roseville
Industry:
Healthcare
Year Founded:
2011
Number Employees:
1-10 people
Business Stage:
Creation/Idea
Entity Type:
Limited Liability Company
Description:
Oak Acres LLC will create a dedicated Alzheimer's resident care facility -- with a maximum capacity of 6 residents -- to provide personalized care in a home-setting facility. Residential property available in Roseville Minnesota will be converted to a multiple-resident facility dedicated to the exclusive care of Alzheimer's residents. By using a residential property -- after getting all permits and zoning restrictions approved -- the residents accepted at the facility will receive individual memory care in a home-like setting.
Initial funding will be needed to build out the property in Roseville to accommodate the 6 resident level. Each resident will need their own space as well as access to common areas, a dining area and entertainment rooms. Current appraisals show the property value to be between $1.5 and $2.5 million, depending on market conditions. The current mortgage on the property (first mortgage only) has a balance of $450,000. A business loan of $1.6 million will be used to pay off the existing mortgage as well as fund construction and rehab of the current property. The loan will be repaid based on an agreed schedule with the lender.
Based on these plans, we expect to recruit 6 residents for the Oak Acres facility. At a rate of $9,800 per month, this base will generate $58,500 per month. From these proceeds, we will pay personnel costs, operating expenses such as food and utilities, as well as repay the investment loan each month.