The Quadrangle-1 - The Quadrangle Ms Wayne is an 87 year...

The Quadrangle
Ms. Wayne is an 87 year old senior who is considering moving into an independent-living senior living
community. She has chosen a community known as The Quadrangle. She is considering either the
one bedroom unit, or the one bedroom with den. You were asked to give your input on this
transaction from a financial perspective.
90% 50%
Residential Unit Repayable Repayable Standard
One Bedroom $ 187,000 $ 131,000 $ 103,000
Monthly Service
Fee $ 3,500 $ 3,300 $ 3,100
One Bedroom
With Den $ 333,000 $ 233,000 $ 166,000
Monthly Service
Fee $ 4,300 $ 4,100 $ 3,900
The entry fees for these units are shown above. The Quadrangle basically offers 3 plans:
o
In the standard plan, the resident pays the one-time entry fee plus a monthly service fee.
o Under the “50%” repayable plan, after the resident either passes away or moves into assisted
living, 50% of their entry fee is returned – but this happens only after a new resident is found
for that unit.
o The 90% plan is the same as the 50% plan, except that 90% of the fee is repayable when a
new resident is found to occupy the unit.