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Growth in Age 65+ Population in US
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Source: 2010 U.S. Census Bureau
The Legacy Commons at Pueblo West
A High Quality Assisted Living Property in Pueblo, Colorado
Project Highlights
Dividend distributed semi-annually
Preferred rate of 7% per annum in year 1 with possible increase to 10%
towards year 4
Low interest loan offered by U.S. Government
Investment time frame of 5-7 years
Target average return of 20% (IRR) per annum
Opening of memory care service will generate higher revenue and cash flow
Excess land for future expansion
The fastest growing segment of U.S. population is those who
are 65 and older which will double by 2020
1 in 8 older Americans has Alzheimer’s disease
13% of everyone over 65 has Alzheimer’s disease
45% of everyone over 85 has Alzheimer’s disease
7 in 10 Americans over 65 will need long-term care
Source: Prevalence, 2012 Alzheimer’s disease Facts and Figures, 2010 U.S. Census Bureau, U.S. Department of
Health and Human Services
In the last couple of years during the recession in the U.S., many elderly
residents that wanted to move into Assisted Living properties held off from
doing so due to reduced home prices. With now the recovery of home
values, more seniors are going to sell their homes and move on. But since
very little to no new Assisted Living properties have been developed, there
should be a high demand and an increase in rent. According to statistics,
45% of the 85 year old population has Alzheimer’s disease and needs
memory care, Assisted Living Homes which can provide this facility are in
high demand.
Great Demand for Senior Assisted Living and Alzheimer’s & Dementia Care facility
LP min. investment
US$100,000
Pueblo West Colorado, LP
Property Banking
Pueblo West Colorado, LP – August 2013
Welcome to Pueblo, Colorado
Pueblo county has over 160,000 residents
Pueblo West is located approx. 5 miles to the west of the City
of Pueblo, an affluent community located 2 hours south of
Denver offering easy access to tourism destinations and
shopping district like:
Unique 18-hole Desert Hawk Golf Course
Lake Pueblo State Park’s great camping, fishing, hiking
and biking
Views of Rocky Mountains
300 days of sunshine
A great retirement community
The Legacy Commons at Pueblo West
170 South Dacona Drive, Pueblo West Colorado
This beautifully appointed home was built in 1997 and
expanded in 2008. There is adjacent excess land that
will allow further expansion if desired.
Lot Size: 3.66 acres
Excess Land for expansion: 1.04 acres
Number of licensed beds: 56 beds
Number of operating beds: 51 beds
Occupancy rate: 85% - 100%
over the past 3 years
Monthly rent ranges: US$2,500 - 4,000
Seller and Operations Company
Heritage Healthcare Management Service, Inc.
The Seller, Heritage Healthcare Management Services, Inc., based in the Denver, has been in business for 20
years and currently owns about 10 and manages 14 assisted living and nursing home properties in the states of
Colorado, Nebraska and Kansas. Heritage will continue to manage the property after we purchase it in
accordance with the property management agreement. Several of the properties were built and expanded by
the seller and they were designed for easy expansion, which is part of our business and operating plan.
Government Insured Financing for Senior Properties
A key component of our business strategy is to obtain favorable long year term financing from Housing and
Urban Development (“HUD”), a government program that finances senior housing and assisted living homes.
This program gives higher loan to value financing with the interest rate between 4.5-5%.
Pueblo West Colorado, LP – August 2013
Investment Strategy and Expected Returns
Apply for an acquisition loan of 70-75% of value from a
U.S. government program at an interest rate between
4.5-5% and acquire the Assisted Living property
Billing for existing special services will be implemented to
increase cash flow
Existing Assisted Living units (beds) will start to be
converted to Memory Care units (beds) about 6
months after acquisition which would double the net
income for every bed converted
Staff will be increased and trained in that section
With the increase in cash flow from the converted
memory care beds, expansion on the 1 acre of excess
land will be considered in year 2.
The expansion construction is expected to start in year 3
with new residents moving in in the end of the 3rd year.
We believe about 20 Memory Care units (30-40 beds)
could be added but subject to architect’s final design.
Phase 1
Phase 2
Phase 3
An annual preferred dividend of 7% is offered to investors during the duration of this investment and paid in
two semi-annual installments. The overall annual rate of return is expected to exceed 10% when additional
cash flow and loan principal reduction are included.
After the property’s income has increased, the General Partner will look to refinance the properties or we can
sell the properties in 5-6 years if the investors choose to at that time. When the properties are sold, investors
will receive a return of their capital and also receive 70% of any profit. Grandtag Madison will receive 30% of
the profits as a performance fee.
Pueblo West Colorado, LP – August 2013
The Program Manager (General Partner)
– Grandtag Madison Realty, LLC
Grandtag Madison Realty, LLC is a partnership company combining the
expertise in U.S. real estate investment and management of Madison with
the investment advisory experience of Grandtag. Madison has managed
senior properties for over 20 years in many states across the U.S. We
exercise rigorous due diligence in acquisition, effective management,
refinancing and the sale of properties. Our goal is to attain above par
financial returns of cash flow and appreciation on each property for our
investors.
Investment Security
Escrow Account at the East West Bank holds investors’ money and is designated for purchasing of
properties. On reaching the minimum fund amount, funds are released for investing.
Grandtag Madison cannot withdraw from this account until escrow requirements have been met.
Benefits of a Limited Partnership
Investors are positioned to benefit as Limited Partners who are entitled to receive preferred cash flows
and returns on their investments while liabilities and obligations are limited only to their investment
amounts. The General Partners, Grandtag Madison assume any financing or other partnership obligations.
This limits risks to investors while the General Partners assumes all the partnership obligations.
Title Insurance
Title insurance is issued by a title insurance company that performs extensive research on the validity and
legality of the title associated with each property. Should an unforeseen problem arise, such as errors in
public records, hidden defects not disclosed by the public records, or mistakes in examination of the title
of the property, title insurance will protect the investors.
Grant Deed / Warranty Deed
This document is registered as public records so that the public is on notice of who is the legal owner of
the property. This documentation on records acts as evidence to prove ownership of a property. The
ownership’s address, along with a legal property description serves to prove the legitimacy of the
investor’s investment.
Quarterly Reports
Reports include financial statements and advice from the management will be provided quarterly to our
investors. As a partner for success, investors will be fully informed of current market conditions and
company strategic actions being implemented to safeguard their investment and enhance the level of
profitability.
Annual Accounting
For added peace of mind, an independent CPA is to verify the accuracy and validity of the financial reports
we are to send to our investors.
For enquiries, please write to: info@grandtagmadison.com or product@grandtag.com
www.grandtag.com
The informationcontained in this materialis for general purposes only. It is not an offer to sell securities or other instruments, nor a solicitation of an offer to buy securities or other instruments. The informationis provided by the company
and while endeavoring to keep all such informationup to date and correct, the company makes no representations or warranties of any kind, express or implied about the completeness, accuracy, reliability, suitabilityor availabilitywith
respect to the information, products, services or related graphics contained in this materialfor any purposes. Any reliance placed on such informationis strictly at the reader’s own assessment. In no event shall the company be liable for any
loss or damage includingwithout limitation, indirect or consequential loss or damage or any lost or damage arising from loss of data or profits arising in connection with the use of this material.
PW LP E130806
Pueblo West Colorado, LP – August 2013

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Pueblo West LP

  • 1. 0% 50% 100% 150% 200% 250% 0 10 20 30 40 50 60 70 80 90 100 1990 2000 2010 2020 2030 2040 2050 InMillions Growth in Age 65+ Population in US Growth in Age 65+ Population in US % Growth Since 1990 Source: 2010 U.S. Census Bureau The Legacy Commons at Pueblo West A High Quality Assisted Living Property in Pueblo, Colorado Project Highlights Dividend distributed semi-annually Preferred rate of 7% per annum in year 1 with possible increase to 10% towards year 4 Low interest loan offered by U.S. Government Investment time frame of 5-7 years Target average return of 20% (IRR) per annum Opening of memory care service will generate higher revenue and cash flow Excess land for future expansion The fastest growing segment of U.S. population is those who are 65 and older which will double by 2020 1 in 8 older Americans has Alzheimer’s disease 13% of everyone over 65 has Alzheimer’s disease 45% of everyone over 85 has Alzheimer’s disease 7 in 10 Americans over 65 will need long-term care Source: Prevalence, 2012 Alzheimer’s disease Facts and Figures, 2010 U.S. Census Bureau, U.S. Department of Health and Human Services In the last couple of years during the recession in the U.S., many elderly residents that wanted to move into Assisted Living properties held off from doing so due to reduced home prices. With now the recovery of home values, more seniors are going to sell their homes and move on. But since very little to no new Assisted Living properties have been developed, there should be a high demand and an increase in rent. According to statistics, 45% of the 85 year old population has Alzheimer’s disease and needs memory care, Assisted Living Homes which can provide this facility are in high demand. Great Demand for Senior Assisted Living and Alzheimer’s & Dementia Care facility LP min. investment US$100,000 Pueblo West Colorado, LP Property Banking Pueblo West Colorado, LP – August 2013
  • 2. Welcome to Pueblo, Colorado Pueblo county has over 160,000 residents Pueblo West is located approx. 5 miles to the west of the City of Pueblo, an affluent community located 2 hours south of Denver offering easy access to tourism destinations and shopping district like: Unique 18-hole Desert Hawk Golf Course Lake Pueblo State Park’s great camping, fishing, hiking and biking Views of Rocky Mountains 300 days of sunshine A great retirement community The Legacy Commons at Pueblo West 170 South Dacona Drive, Pueblo West Colorado This beautifully appointed home was built in 1997 and expanded in 2008. There is adjacent excess land that will allow further expansion if desired. Lot Size: 3.66 acres Excess Land for expansion: 1.04 acres Number of licensed beds: 56 beds Number of operating beds: 51 beds Occupancy rate: 85% - 100% over the past 3 years Monthly rent ranges: US$2,500 - 4,000 Seller and Operations Company Heritage Healthcare Management Service, Inc. The Seller, Heritage Healthcare Management Services, Inc., based in the Denver, has been in business for 20 years and currently owns about 10 and manages 14 assisted living and nursing home properties in the states of Colorado, Nebraska and Kansas. Heritage will continue to manage the property after we purchase it in accordance with the property management agreement. Several of the properties were built and expanded by the seller and they were designed for easy expansion, which is part of our business and operating plan. Government Insured Financing for Senior Properties A key component of our business strategy is to obtain favorable long year term financing from Housing and Urban Development (“HUD”), a government program that finances senior housing and assisted living homes. This program gives higher loan to value financing with the interest rate between 4.5-5%. Pueblo West Colorado, LP – August 2013
  • 3. Investment Strategy and Expected Returns Apply for an acquisition loan of 70-75% of value from a U.S. government program at an interest rate between 4.5-5% and acquire the Assisted Living property Billing for existing special services will be implemented to increase cash flow Existing Assisted Living units (beds) will start to be converted to Memory Care units (beds) about 6 months after acquisition which would double the net income for every bed converted Staff will be increased and trained in that section With the increase in cash flow from the converted memory care beds, expansion on the 1 acre of excess land will be considered in year 2. The expansion construction is expected to start in year 3 with new residents moving in in the end of the 3rd year. We believe about 20 Memory Care units (30-40 beds) could be added but subject to architect’s final design. Phase 1 Phase 2 Phase 3 An annual preferred dividend of 7% is offered to investors during the duration of this investment and paid in two semi-annual installments. The overall annual rate of return is expected to exceed 10% when additional cash flow and loan principal reduction are included. After the property’s income has increased, the General Partner will look to refinance the properties or we can sell the properties in 5-6 years if the investors choose to at that time. When the properties are sold, investors will receive a return of their capital and also receive 70% of any profit. Grandtag Madison will receive 30% of the profits as a performance fee. Pueblo West Colorado, LP – August 2013
  • 4. The Program Manager (General Partner) – Grandtag Madison Realty, LLC Grandtag Madison Realty, LLC is a partnership company combining the expertise in U.S. real estate investment and management of Madison with the investment advisory experience of Grandtag. Madison has managed senior properties for over 20 years in many states across the U.S. We exercise rigorous due diligence in acquisition, effective management, refinancing and the sale of properties. Our goal is to attain above par financial returns of cash flow and appreciation on each property for our investors. Investment Security Escrow Account at the East West Bank holds investors’ money and is designated for purchasing of properties. On reaching the minimum fund amount, funds are released for investing. Grandtag Madison cannot withdraw from this account until escrow requirements have been met. Benefits of a Limited Partnership Investors are positioned to benefit as Limited Partners who are entitled to receive preferred cash flows and returns on their investments while liabilities and obligations are limited only to their investment amounts. The General Partners, Grandtag Madison assume any financing or other partnership obligations. This limits risks to investors while the General Partners assumes all the partnership obligations. Title Insurance Title insurance is issued by a title insurance company that performs extensive research on the validity and legality of the title associated with each property. Should an unforeseen problem arise, such as errors in public records, hidden defects not disclosed by the public records, or mistakes in examination of the title of the property, title insurance will protect the investors. Grant Deed / Warranty Deed This document is registered as public records so that the public is on notice of who is the legal owner of the property. This documentation on records acts as evidence to prove ownership of a property. The ownership’s address, along with a legal property description serves to prove the legitimacy of the investor’s investment. Quarterly Reports Reports include financial statements and advice from the management will be provided quarterly to our investors. As a partner for success, investors will be fully informed of current market conditions and company strategic actions being implemented to safeguard their investment and enhance the level of profitability. Annual Accounting For added peace of mind, an independent CPA is to verify the accuracy and validity of the financial reports we are to send to our investors. For enquiries, please write to: info@grandtagmadison.com or product@grandtag.com www.grandtag.com The informationcontained in this materialis for general purposes only. It is not an offer to sell securities or other instruments, nor a solicitation of an offer to buy securities or other instruments. The informationis provided by the company and while endeavoring to keep all such informationup to date and correct, the company makes no representations or warranties of any kind, express or implied about the completeness, accuracy, reliability, suitabilityor availabilitywith respect to the information, products, services or related graphics contained in this materialfor any purposes. Any reliance placed on such informationis strictly at the reader’s own assessment. In no event shall the company be liable for any loss or damage includingwithout limitation, indirect or consequential loss or damage or any lost or damage arising from loss of data or profits arising in connection with the use of this material. PW LP E130806 Pueblo West Colorado, LP – August 2013