1
Your land solves their equity problem. Mosaic needs ~$7.5M in equity for HUD financing. Your $6.4M land contribution covers up to 85% of that. They don't need to find outside investors.
2
Boone Ridge proves the model. Mosaic built a $42–45M facility on 5.7 acres in Salem. Ila Vey is 13.66 acres in Keizer with great River Road visibility — the project should be worth more.
3
You took all the entitlement risk. Years of engineering, traffic studies, permits, and capital invested. Mosaic walks into a shovel-ready site. That has real value.
4
Demand an independent appraisal. Don't let Mosaic set the land value. At $11.52/sf they're getting a discount. Fair value is $18–$25+/sf for entitled senior living land.
5
Structure a preferred return. Your equity should earn 8–10% preferred before Mosaic's operating share. You took the early risk — you should be paid first.
6
Include a buyout floor. If Mosaic refinances or wants to buy you out, your stake can't be purchased below a minimum value tied to appraised value.
7
Dev fee = income during construction. 18–24 month build period with $1.5–3M in dev fees keeps cash flowing while the facility is being built.
8
Mosaic knows the HUD playbook. They refinanced Boone Ridge at $35.7M with Dwight Capital. They'll use the same approach here — your land equity rides the appreciation.