|"Round Lake, LLC. (RL) buys, develops and holds assisted living communities. The Company offers a team that places investors in the center of the dominant demographic characteristic of the U.S. over the next 10 to 20 years..."
RL's core belief is that the war baby bubble has explained every major US economic phenomena since World War II. It drove the overwhelming success of Gerber Baby Foods, Mattel Toys, and the Barbie Doll in the 1950s, the crowded primary school classrooms and the success of the Ford Mustang in the 1960s, the crowded college classrooms and intense competition to get into the top schools in the 1970s, the housing boom and soaring sales of consumer durables in the 1980s, and the ballooning 401ks and other retirement plans and soaring stock market of the 1990s. When this group starts to retire in 2005 (1945 + 60), the travel industry and retirement living facilities are the next sectors to explode. This group will inherit $7 trillion over the next ten years, and by 2025, the war baby bubble will double the number of seniors demanding the great locations and assisted living services that allow them to retain their active lifestyles.
Market timing is outstanding as the assisted living industry consolidates in favor of experienced operators with administration and communication skills. In the past decade, contractors trying to exploit market trends built great facilities only to find they could not manage them. Smaller owners that have been in the industry for twenty years are selling properties to enjoy the wealth locked in equity. Public companies are selling projects to reduce debt. Finally, few new competitive units will be built in the next five years as public companies focus on management concerns rather than construction.
With the start of the new decade, the depth of the demographic is showing its strength. Demand is catching current supply. Public companies are stabilizing and profits are increasing. The valuation of assisted living facilities has risen consistently since the early '90s, and the industry showed increased profitability in 2002.
Assisted living is growing into its potential, and Round Lake provides an effective vehicle for investors to add the senior demographic to their portfolio. The Company's market position and resources allow it to be the conduit for exceptional economic gains over the next 10 to 15 years through buying, occasionally building, and holding excellent properties in superb locations.
I thank you for exploring Round Lake, and I invite you to contact me at any time with questions.
Round Lake Development Group, LLC