Discover How to Target a Projected 5–7x Return by Acquiring Boutique Senior Living at One‑Third of Replacement Cost

Accredited investors subscribe to Hukam Capital Senior Housing Fund I, a $10M fund acquiring 4–5 boutique assisted living and memory care communities — roughly 200–250 units across five target markets.

Rather than a single building, you own a slice of a diversified portfolio. The fund buys underperforming, cash-flowing facilities at under $100K per door versus a ~$300K replacement cost, then improves occupancy, staffing, dining, and expense control before aggregating the stabilized assets for an institutional exit.

The minimum investment is $50,000. Commitment size determines your preferred return tier:

• $50,000 — no preferred return
• $100,000 — 7% preferred return
• $250,000 – $2,000,000 — 10% preferred return

Prospective investors must also satisfy the applicable accredited-investor qualification and verification requirements before an investment can be accepted.

The fund targets a 5–7x total LP return and 20%+ IRR potential, built on $25M of AUM at purchase growing to a ~$50M sale price on $16–20M of revenue at a 25–35% NOI margin.

Fund terms are a 2% management fee, a 1% acquisition fee, and a 20% promote. Investors also receive 100% tax depreciation on the underlying real estate.

These figures are projections based on specific operating, financing, occupancy, and sale assumptions. Just like any investment projections, they are not guaranteed.

Assets are acquired in Year 0 and stabilized through Year 1. Projected distributions step up as occupancy and margin scale:

• Year 1 — stabilization, 8–12% distribution
• Years 2–3 — 12–18% distribution
• Years 4–9 — 18–25% distribution as centralized operations take hold
• Year 10 — 25%+ and portfolio liquidation at institutional exit

Actual timing and amounts depend on property performance, available cash flow, lender requirements, reserves, and the governing investment documents.

Most facilities in the pipeline run at ~75–80% occupancy on ~10% operating margins. The last 15–20% of occupancy is the primary value driver, and the business plan focuses on levers the operating team directly controls:

• Driving digital demand through SEO, marketplaces, and referral platforms
• Building local referral networks and community relationships
• Improving tour-to-lease conversion
• Elevating dining, programming, and resident experience
• Higher-quality hiring and stronger on-site leadership
• Cutting agency labor dependency from day one
• Removing bloated corporate overhead and layered bureaucracy
• AI monitoring and automated reporting for family trust and faster move-ins
• Adding care-fee programs and raising rents to market

Executed well, this moves assets toward 90–95% occupancy and expands operating margins from ~10% to ~25–30% — taking price per door from $60K–$120K to $160K–$200K. Value is created through stronger operations, not market appreciation.

Senior housing carries real risk. The material ones, and how the fund addresses each:

• Operator risk — operators are financially tied to fund returns, backup operators are maintained at all times, and the plan is to move in-house by Year 4–5.
• Healthcare staffing shortages — boutique facilities attract and retain staff better than large institutional operators; agency labor dependency is cut from day one.
• Interest rate variability — the fund acquires positive cash-flowing assets and targets 35-year fixed HUD financing, so there is no forced refinancing.
• Occupancy variability — the 80+ population grows faster than new supply for 10+ years, and locally run communities recovered faster than national operators through COVID.
• AI and robotics disruption — treated as tools that enhance facilities rather than replace human care.

These measures may reduce certain risks, but they cannot eliminate the possibility of loss.