Page 15 - The MarchLife Story

RISKS AND
MITIGATING FACTORS
ENTITLEMENT RISK
Obtaining development for large scale healthcare projects is very challenging, taking tremendous time and capital. MarchLife California has all project entitlements in place, putting it approximately 10-years ahead of any competition attempting to enter the market.
Diverse team with signi cant large scale master plan development experience. The sub-contracted trade partners that will be performing work at MarchLife California are all respected in the industry and have good working relationships with the development team.
Signi cant demand for healthcare product in Riverside County will drive demand for absorption outside of build-to-suit agreements with the tenants. Numerous top hospital operators have expressed a need to have facilities in the growing Riverside area. The likelihood of signed tenants prior to construction start is strong. The immediate area is in real need of diverse retail options. Further, hospital traf c will further drive retail sales from a captive audience.
Riverside is a large metropolis in the heart of Southern California. Given the demand scenario, the likelihood of MarchLife California outperforming smaller, less signi cant markets is strong. America is considered the most liquid and transparent real estate market in the world, making it highly attractive at home and to foreign investment.
Due to the strength of the healthcare industry in Riverside County, stabilized assets are in high demand. Given the status and nature of the project, the exit will not be an issue as there are many investors looking for cash generating assets that are recession resistant in a growing industry. Exit options include selling MarchLife California assets to strategic owners, such as Medical REITs, or selling to current operators.
CONSTRUCTION RISK
ABSORPTION RISK
MARKET RISK
EXIT RISK
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MITIGATING FACTORS
RISK FACTORS