1031 Crowdfunding Adds Florida Senior Housing Facilities to Portfolio

By Darian E. Fernandez | September 19, 2023

IRVINE, Calif.–(BUSINESS WIRE)–1031 Crowdfunding (1031 CF), a real estate investing platform, today announces expanding its holdings into Florida for the first time, adding to its existing portfolio throughout the United States. The company acquired two memory care and assisted living facilities for its 10th Delaware Statutory Trust (DST) offering. The facilities are located in Lake City and Palm Coast, Florida, and consist of 114 units overall, with a combined occupancy of 87.8% and a $28.4 million equity offering amount. Currently, Florida has the highest percentage of senior citizens in the United States, with more than 20% of the population aged 65 years and older. 1031 CF’s latest DST and acquisitions in Florida provide investors with monthly cash distributions and potential upside.

“As 1031 Crowdfunding continues to expand nationwide, we found opportunities within the Florida market to make an impact not just for our investors but also for aging seniors residing at our senior housing facilities,” said Edward Fernandez, President and CEO of 1031 Crowdfunding. “We continue to look to grow our real estate portfolio in strategic markets where we see ongoing potential for senior housing growth. We selected these two properties in northern Florida to serve the baby boomer population as they continue to retire and seek out the climate and tax advantages of the state.”

The DST and portfolio launched on September 6, 2023 and offers investors a current cashflow of 5.75%* and requires a minimum $25,000 investment. Capulent LLC is 1031 CF’s managing broker-dealer.

The two facilities, The Canopy at Harper Lake in Lake City and Gold Choice Palm Coast Assisted Living & Memory Care, are operated by Gold Choice Senior Communities, a leading regional owner/operator of Assisted Living and Memory Care communities throughout Florida. Residents at Gold Choice participate in life enrichment programs that encourage brain stimulation, physical activity, entertainment, and participation. The communities’ memory care program offers a fully trained care team ready to support the unique needs of residents living with Alzheimer’s and other types of dementia.

1031 CF began offering multi-facility portfolios to provide investors with additional diversification. 1031 CF has senior housing facilities in nine states.

Cash flow is paid to the Trust under the Master Lease Agreement. An investment in 1031CF Portfolio 5 DST involves a substantial degree or risk and investors could lose some or all of their investment. There can be no assurance that any of these objectives will be met. The ability of the DST to make distributions to its investors will depend solely on the cash flows generated by the Facilities, which are not certain and can be affected by changes in occupancy, rents, management costs or other expenses. Any reduction in the actual or projected cash flows would negatively impact the returns received by an investor and/or the price for which the DST will be able to sell the Facilities. Current cash flow is calculated based on current occupancy and operating history of the Facilities at or immediately preceding the date of the Private Placement Memorandum (“PPM”). There can be no assurance that cash flows generated by the Facilities will be sufficient to continue to provide DST investors with this level of annual cash flow.

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