Randy Watkins has focused his 20-year career on culinary arts and dietary management. Early in his career, he served as director of dining services for Watermark retirement communities where he led the dining operations of multiple senior communities – with zero inspection deficiencies. He planned menus and trained cooks, servers and dishwashers in food
preparation and food safety. From there he became senior dining services director at Elmcroft, responsible for monitoring 32 communities. More recently he served as vice president, culinary services for Bridge Senior Living. There he built and led the culinary program for a diverse portfolio from a luxury high-end CCRC to a stand-alone memory care – throughout the Covid-19 pandemic.

At AVIVA, Randy is responsible for innovative dining services and practices throughout the AVIVA system.

Lisa Amber is an award-winning sales and marketing professional with almost twenty years in the senior-housing industry. Her experience also includes medical operations management within the medical/healthcare arena.

Her senior housing marketing career began with American Senior Communities where she spent eight years and worked her way up to regional sales and marketing director. Most recently she served as regional director of sales and marketing for Solstice Senior Living where she was able to raise overall census from 59% to 91% through her tested communications initiatives.

Lisa is well versed in senior housing technology and highly proficient in sales and marketing platforms. She holds a bachelor’s degree in communication and media studies from the University of Phoenix.

Entryway Central Florida Recognizes Investment Firm’s Commitment to Reducing Homelessness.

Dallas – Lloyd Jones LLC, a real estate investment firm based in Dallas, has been chosen Entryway Central Florida’s 2023 Philanthropy Partner of the Year. A strong supporter of Entryway (FKA Shelters to Shutters) since its inception, Lloyd Jones recognizes the value of the organization’s mission.

Entryway is a national 501(c)3 organization that transitions individuals and families at risk of or experiencing homelessness to economic self-sufficiency by providing career training, full-time employment, and housing opportunities in partnership with the real estate industry.

“Helping those facing situational homelessness gain employment and a home is a win-win for everybody. And we are especially proud of the Entryway founders and leadership for coming up with this innovative way to combat homelessness,” commented Christopher Finlay, Chairman/CEO of Lloyd Jones. To those leading the charge, we say ‘Well done. Thank you.’”

Over two-thirds of those experiencing homelessness in the U.S. are situationally homeless due to a life-altering event such as job loss, medical or health emergency, divorce, domestic abuse or the loss of a primary income earner. By partnering with the multifamily real estate industry, Entryway finds entry-level jobs and housing for those who want to work and return to a life of self-sufficiency.

Adds Finlay, “Our contributions will increase the number of people Entryway can reach, providing life-changing solutions for the situationally homeless. For every receptionist, groundskeeper, or maintenance tech we place at a multifamily community, that’s another family on the road to self-sufficiency. We are very proud to support Entryway.”

Lloyd Jones is a vertically integrated real estate investment firm with subsidiaries in investment, development, construction, and senior-living operations. Operating under the same leadership for over 40 years, the company invests in high-potential multifamily and senior housing assets across the country.

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For the past twenty years, Denise Leith’s career has focused on real estate accounting. Starting as a staff accountant with Trammell Crow, she soon became a senior commercial accountant at a major full-service commercial/residential real estate organization. From there, she moved to the McKinley Companies where she spent ten years as a senior commercial accountant for the national real estate investment and management firm. She also served as senior commercial accountant for RealPage. Eventually she became corporate assistant controller at REDICO/American Senior Living before moving to AVIVA Senior Living.

Denise holds a Bachelor of Accountancy degree from Walsh College of Accountancy and Business Administration. Denise is an award-winning accountant with special expertise in senior housing and Yardi software.

Dallas, TX. – Entryway, a national non-profit that provides career training, employment and housing opportunities to at-risk and housing insecure individuals and families in partnership with multifamily owners and operators, today announced a $100,000 donation from Dallas-based Lloyd Jones LLC, a real estate investment, development, and management firm specializing in multifamily and senior housing.

“This investment allows us to bring our proven model to Central Texas as our 12th market launch across the country. Lloyd Jones’ commitment to be a lead investor and supporter of Entryway’s mission has allowed us to forever change the lives of families we serve in Orlando and will now also open the door for individuals and families in Central Texas,” commented David Williams, President & CEO of Entryway. “We are grateful for their recognition of the need for our program that offers both employment and housing simultaneously and puts individuals and families back on a path to economic self-sufficiency.”

Entryway sources, screens, trains and places highly motivated and capable individuals in high demand on-site jobs in partnership with 72 leading apartment owners and operators. The organization works with multiple referring partners in each of its local markets as well as nationally to identify suitable job applicants who are struggling with or at risk of homelessness. Entryway upskills program participants through online and in-person training opportunities to get them ready for full time positions in the apartment industry such as leasing, maintenance and groundskeeping. Entryway also offers participants interview skills, job coaching, financial literacy and access to 1:1 mentoring. The program changes the lives of individuals and families while providing quality, motivated employees for a rapidly growing industry in need of talent.

“Helping those facing homelessness gain employment and a home is a win-win for everybody. And we are especially proud of the Entryway founders and leadership for coming up with this innovative way to combat homelessness,” commented Stacey Hess, Controller for Lloyd Jones and longtime Entryway advocate. “To those leading the charge, we say ‘Well done. Thank you.’”

Over two-thirds of those experiencing homelessness in the U.S. are situationally homeless due to a life-altering event such as job loss, medical or health emergency, divorce, domestic abuse or the loss of a primary income earner. The contribution from Lloyd Jones will help Entryway serve more people who want to work and return to a life of self-sufficiency.

About Entryway
Entryway is a national nonprofit that transitions individuals and families from homelessness to economic self-sufficiency by providing career training, employment, and housing opportunities in partnership with the real estate industry. Entryway currently operates in 11 markets: Atlanta, Central Florida, Charleston, Denver, Houston, Nashville, National Capital Region, North Carolina, North Texas, Greater Phoenix, and Philadelphia. The Central Texas market will be the 12th market for Entryway. For more information, please visit www.entrywaytalent.org.

About Lloyd Jones LLC
Lloyd Jones is a vertically integrated real estate investment firm with subsidiaries in development, construction, and senior-living operations. Operating under the same leadership for over 40 years, the company invests in high-potential multifamily and senior housing assets across the country. Headquartered in Dallas, the company has been aggressively expanding into the senior housing market with the acquisition of numerous communities over the past few years. Its senior living subsidiary, AVIVA Senior Living is a full-service senior housing management firm. For more information, visit www.lloydjonesllc.com.

AVIVA Baldwin Park is an independent living, assisted living, and memory care community located in Staunton, VA.

Originally built in 1987 and subsequently refurbished in 2003, AVIVA Baldwin Park includes two separate three-story structures on a sprawling fifteen-acre estate.

Real Estate Investment Firm To Rebrand Staunton, VA, Community as AVIVA Baldwin Park

DALLAS – Lloyd Jones, a real estate investment firm headquartered in Dallas, Texas, has announced the acquisition of Brightview Baldwin Park, a 136-unit independent living, assisted living, and memory care community in Staunton, Virginia. This marks Lloyd Jones’ first senior housing acquisition this year. The property was purchased from Brightview Senior Living and will operate under the Lloyd Jones proprietary Aviva brand as AVIVA Baldwin Park.

Originally built in 1987 and subsequently refurbished in 2003, AVIVA Baldwin Park includes two separate three-story structures on a sprawling fifteen-acre estate. The southern building houses 85 independent living units, and the northern building accommodates the remaining 51 assisted living and memory care units. Property amenities include a well-stocked library, beauty and barber shop, community fireplace, and updated fitness center. The property features an expansive courtyard where residents can enjoy an outdoor trail with picturesque views of the Blue Ridge Mountains and Shenandoah Valley.

“This is a beautiful property in a beautiful area of Virginia. We hope to continue to serve the surrounding communities with exceptional senior living. To expand the excellent reputation of Baldwin Park, we have an experienced and loving on-site team in place, backed by the full resources of both AVIVA Senior Living and Lloyd Jones,” says Christopher Finlay, Chairman and CEO of Lloyd Jones.

With a $3.1M capital renovation budget, the Lloyd Jones team plans to focus on significant upgrades to the northern building to match the recently updated southern building. The team also aims to introduce its signature technology package that includes keyless door locks, resident safety pendants, and new property camera systems to enhance the security of the residents.

The Lloyd Jones partner in this investment is SP Venture Partners, a real estate investment firm that focuses on making tax-efficient Co-GP investments alongside seasoned operating partners in multifamily and senior housing. Its founders have a proven track record of investing and managing $125 million of equity across $1.5 billion of real estate. This experience has given SP Venture Partners the ability to formulate and implement a comprehensive due diligence process on the operating partners it invests alongside. Peter Powers, co-founder of SP Venture Partners adds “My partner, Sean, and I both grew up with families that owned businesses that served seniors and have seen the increased need to provide senior housing that allows seniors to continue living fulfilling lives.”

About Lloyd Jones LLC

Lloyd Jones LLC is a real estate investment firm with 43 years in the industry under the continuous direction of Chairman/CEO, Christopher Finlay. Now based in Dallas, the firm specializes in multifamily and senior housing investment, development, and management. Investment partners include private and institutional investors and family offices around the world. To learn more about Lloyd Jones, visit www.lloydjonesllc.com.

Excerpted from Hot Topics in the Real Estate Investment World, a newsletter
by Lloyd Jones.

I’m sure you’ve read about all the impending turmoil: rate cap, floating-rate debt, and debt expirations. Foreclosures, bankruptcies. Doom and disaster.

Well, I’m here to disagree.

Let’s first discuss floating-rate debt. There’s no question that this has had a major impact. This is especially the case with value-add or turn-around strategies. What was expected to be increasing income and NOI gets stalled and doesn’t come close to matching the increase in debt service. Your property is losing money.

Now the strategy becomes survive. You have to survive until rates start to decline and rental rates start to increase. And they will. They always do.

We have seen the recent news articles mentioning several high-growth investment firms that accumulated substantial portfolios that are dealing with these issues. Many are predicting failure: giving back the key, or foreclosure, etc.

I don’t think that’s going to happen, and here’s why.

First, many of these deals involve “institutional” JV partners. These guys are very smart, have tremendous data and analytics (and capital). And they don’t like to lose money!

I think they will step up. Whether it be a capital call or a restructure of the capital stack, e.g., mezzanine or preferred equity, they will not allow their initial investment to evaporate. Needless to say, the GP’s potential profit will be substantially reduced, but they and their LP will live to see a better day and at the least recover their investment.

Now, for the GPs with retail investors (e.g., crowdfunding), there may be a different outcome. My guess is that these investors are smart and successful in their professions, but chances are they are not professional real estate investors. That’s why they invested with a GP/operator to begin with. They may take a completely different approach. After all, assume they have $25,000 or $50,000 in the investment and the GP makes a capital call for an additional $10,000 or $20,000. They may think “Why throw good money after bad?” and may decide to take the hit and move on.

That’s understandable – but a big mistake. If the GP/Sponsor has presented a plan to get through this downtown, then I would suggest it may very well make sense to provide the additional funds.

Remember, if the property goes to foreclosure, chances are you will lose 100% of your investment. If you can hang in, things always turn around.

In my 43 years in this business through numerous recessions, bank failures, etc., there’s one thing I’ve learned. If you can weather the storm, multifamily assets will almost always return in value and almost always at a new higher number.

The key is to survive the downside, and you’ll be rewarded on the recovery.

It’s a tough pill to swallow at the time, but you’ll be glad you did.

Thanks for reading. Sign up to receive the entire Hot Topics newsletter directly in your inbox.

Chris Finlay
Chairman and CEO of Lloyd Jones

Disclaimer: The thoughts offered by the author reflect solely his personal opinions and observations and not necessarily those of Lloyd Jones LLC. They are for entertainment purposes only. Nothing should be construed as investment advice. All investments involve risk.

I hope you enjoyed my take on the multifamily turmoil. It is a sample excerpt from our new Lloyd Jones Hot Topics newsletter. With each issue, we will discuss a current topic and perhaps offer a contrarian – even controversial – opinion. In the commercial real estate business for well over forty years, I’ve seen a lot and survived extreme economic environments. So perhaps I can show you a new perspective.

In addition to my hot topic, the newsletter will feature updates on the latest conditions in the various asset classes, from multifamily to senior living and hospitality. Our construction division will also pipe in with the status of the building industry.

I’d like to think we can help you navigate the real estate investment market. But remember, these are my opinions only. I am not offering investment advice.

We welcome your input, your suggestions, and your questions. Simply reply to this email.

Brookfield Asset Management has announced that it anticipates raising $150,000,000,000 this year. (Count the zeros!) That’s right. One hundred and fifty BILLION dollars. That’s beyond comprehension. How do you find $150B of deals in a two-to-three-year investment period?

According to the Wall Street Journal, the firm’s CEO recently said,

“[The current market] will lead to the best environment we’ve seen since 2009 to execute on our longstanding investment strategy for real estate.” 

I completely agree. When I look back to 2010 when we were investing exclusively in multifamily value-add, I think we acquired about one deal in every 100 that we underwrote. In hindsight, I was way too conservative. We lost many good deals by not recognizing just how good the opportunity was.  But hindsight is 20/20 – and a good teacher.

Today, the opportunity is senior housing. The rising interest rates are putting stress on good properties. That creates acquisition opportunities. I see a repeat of 2010. Senior housing will lead the way, followed by multifamily and hotels. Most office and retail will have a difficult time. Some projects can be redeveloped, but most will have to be scraped. Of course, there will be smaller niches, like medical office and research labs, but the favored asset class will be senior housing.

Now the question is “Who among the big guys is going to be the first to start the wave?” Most of those we’ve talked to are waiting until they are convinced that we have hit bottom and the recovery has started.

I disagree with that strategy. While there’s a distinct chance prices will still go lower, now is the time to capture great deals. There’s no time to delay. The great deals I’m seeing now will go fast when all that pent-up capital starts flowing. And prices will soar, just as they did with multifamily. So now is the time to act. Of course, that’s easier said than done. Only the institutions have the cash. So, the rest of us have to accept putting in more equity and bearing higher-priced debt to get some of these extraordinary deals. Smaller, private investors can partner with an experienced sponsor who has access to institutional capital.

We don’t have Brookfield’s $150 billion, but we recognize an opportunity. And it is here now.

Chris Finlay
Lloyd Jones LLC
Chairman/CEO

Disclaimer: The thoughts offered by the author reflect solely his personal opinions and observations and not necessarily those of Lloyd Jones LLC. They are for entertainment purposes only. Nothing should be construed as investment advice. All investments involve risk.

As many of you know, I love to read, so as part of this newsletter, I will share with you suggestions and reviews on my favorites. Today, it’s Beyond the Building: How To Use Innovation To Create and Grow Your Commercial Real Estate Portfolio.

I’m very proud to start with a book written by my son Rob. He was a hell-raiser as a kid but worked for me during school breaks. After college he started at Lehman Brothers in their CMBS shop in New York just as CMBS was exploding. What a great opportunity. Then on to Credit Suisse and ultimately Deutsche Bank in Charlotte.

Shortly after his move, he and his brother, Chris, (founder and managing partner of Middleburg Real Estate Partners) were playing golf with a top CMBS attorney. The big question in the industry at the time was how to get out of a CMBS loan. What was “defeasance”? Rob latched onto that idea and after consulting with the top legal and CMBS minds in the country, he founded Commercial Defeasance or “Defease with Ease.” That was almost 25 years ago. Since then, he’s founded several software companies, all real-estate related. And now he has authored his first book: Beyond the Building. How To Use Innovation To Create and Grow Your Commercial Real Estate Portfolio.

Rob’s a “data guy” and was always ahead of the pack in the value of good data to make good decisions. I think you will enjoy the book. You can find it on Amazon. By the way, it just made the WSJ best seller list.

Thank you for reading our newsletter. We hope to grow it into a very useful, helpful tool for you on your real estate journey. If you have thoughts you’d like to share, ideas you’d like to discuss, please let me know.  chrisfinlay@lloydjonesllc.com or visit http://www.lloydjonesllc.com.  I look forward to hearing from you.

To continue receiving the Hot Topics newsletter, sign up here.

Curious about crowdfunding? You are not alone. There were 6,455,080 worldwide crowdfunding campaigns last year (fundera.com). Over the past 10+ years, crowdfunding sites have proliferated, providing an excellent source of investment opportunities in a variety of asset classes.

But crowdfunding is not new. Back in 1885, the Statue of Liberty arrived in pieces in New York Harbor, but New York did not have the funds to install the statue, and U.S. Congress was unwilling. But Philadelphia, San Francisco, and Baltimore would have been happy to have it. That’s when Joseph Pulitzer, the publisher of the New York World, asked the newspaper’s readers to contribute – i.e., to crowdfund – the assembly and installation of Lady Liberty. Within five months the publication raised enough to install the statute. Three- quarters of the donations were less than one dollar. So, Lady Liberty ended up in New York Harbor thanks to the many small investors.

And what about Jeff Bezos and Amazon? Another “crowdfunding” effort. In the beginning, Bezos raised $1 million dollars through 22 individual investors, each contributing $50,000. In exchange, he gave away 20% of the company. A company that is now worth over ONE TRILLION DOLLARS. Now that was a good investment!

Today, global crowdfunding is a $10.8 billion industry, growing at approximately 45% between 2022-2030, according to Custom Market Insights (CMI.) Here in the U.S. one of the largest real estate crowdfunding firms has seen as much as $4 billion invested capital in the past ten years and over 300,000 investors.

Real estate investing through crowdfunding has become a very viable opportunity both for the “accredited investor“ and for smaller family offices. Investment units are smaller, giving non-institutional investors access to opportunities that most would not even hear about. The assets are typically institutional-quality, and investors can even participate in funds containing several such assets, thus spreading their risk.

The key to crowdfunding investment is the sponsor/operator. Real estate is a big business, so you should know who is running that business. The sponsor identifies and underwrites the investment, then creates a business plan based on the financial analysis. This analysis determines the projected returns, so the sponsor must be experienced underwriting the specific asset class, but also in operating the investment to achieve the projected outcomes.

Experience is critical, especially during up-and-down markets. Sponsors must evaluate risk – and underwrite for it. That skill comes with experience over many economic cycles. Remember, your investment is probably a five-year commitment, and the economic environment will change – sometimes drastically and abruptly – during those years. Be sure your sponsor has met those challenges previously.

Operational experience is also paramount. Management (of any asset) is not a “seat of your pants” job. It requires proven programs and procedures. We have often said that management is the most important element of an investment. The operator must have the skill to implement the business plan and meet performance expectations, again, even if the economic environment should change.

The track record is a good indicator of the sponsor expertise. Every sponsor will have a few disappointments, but the track record average should align with its projected outcomes. All investments have risks. Responsible sponsors will share that risk with their investors by putting their own capital into the investment.

These sponsor attributes are equally appliable to institutional investors and individuals participating in crowdfunding. With crowdfunding, you will find numerous platforms that offer investments submitted by individual sponsors. In other cases, sponsors will maintain their own exclusive platform with their own acquisitions. In any case, the sponsor’s reputation and experience are paramount. You are entrusting your funds to them; you want to know who will be running your business.

Good News for Senior-Housing Investment

1. “Senior Housing Occupancy Recovery: A Compelling Case for Optimism, Growth, and Renewed Purpose” (NIC)

Senior-housing demand continues to outpace supply for the ninth consecutive quarter, positioning the senior-housing market to reach/exceed pre-pandemic levels in 2024. This is a very positive sign for senior-housing investors as senior facilities continue to recover from the devastation caused by the pandemic. Occupancies are rising, and we know the demand is there as this huge generation ages.

2. ”Older adults become less frail after moving into senior housing.” (NIC)

Socialization, balanced nutrition, medication management provide a quantifiable improvement on a resident’s health per a study by the University of Chicago.

Despite an initial reluctance to entering senior housing, it appears that this kind of lifestyle can help restore a resident’s vitality and independence. This finding may help family members make caregiving decisions.

Now the fun stuff:  Books!

Billionaires’ Row
Tycoons, High Rollers, and the Epic Race To Build the World’s Most Exclusive Skyscrapers.
By Katherine Clarke

This is a great read for anyone interested in real estate development.

It’s about people, shenanigans, and inside stories in the world of ultra-high skyscrapers in New York City, the soaring spires just south of Central Park called “Billionaires’ Row.”

The book is aptly named as critics of the high-rise development are quick to point out. Hedge funder Ken Griffin set the record price for a U.S. home when he paid nearly $240 million for an apartment on Billionaires’ Row. Marketing efforts include $1 million marketing videos.

But critics also point out that the ultra-tall buildings can cast 4000-foot shadows (about three-quarters of a mile) over Central Park.

The development of these massive structures is a long, hard effort. The book talks about cranes breaking and banging into upper windows. In one instance, the tallest free-standing crane in the U.S. at 220 feet crashed and rained debris on the street below. Luckily it was during the pandemic, so the streets were relatively quiet.

Not only long and hard, it’s also an innovative effort. Entire floors of these tall, skinny buildings were designed to be vacant and open to let air pass through, keeping the building steady in the wind.

This book is a fascinating history of the “race to the sky,” full of rivalries, partnerships, competition, and politics. We think you will enjoy it.

Thank you for reading our newsletter. We hope to grow it into a very useful, helpful tool for you on your real estate journey. If you have thoughts you’d like to share, ideas you’d like to discuss, please let me know by sending an email to chrisfinlay@lloydjonesllc.com or visiting http://www.lloydjonesllc.com.