A California-based real estate investment platform acquiring, improving, and leasing residential properties to licensed operators serving adults with developmental disabilities.
Pacific Coast Care Residences LLC ("PCC" or "the Company") is a California-based real estate investment company that acquires, renovates, and leases residential properties to licensed operators serving adults with developmental disabilities ("DD"). PCC is a pure real estate company — a landlord. It does not provide caregiving services, does not hold service licenses, and carries no operational liability.
California's developmental disabilities system serves over 300,000 individuals through a network of 21 regional centers and more than 40,000 licensed service providers. Despite billions in annual state and federal funding, the residential infrastructure supporting this population is in systemic decay: aging owner-operators are exiting, properties fall out of licensure, and replacement supply is minimal. The result is a growing gap between the number of licensed residential slots and the number of adults needing placement.
The opportunity: Acquire properties at a discount from operators who cannot sell through conventional channels, improve them using government grant capital, and lease them to vetted licensed operators under long-term agreements. The result is government-backed income on appreciating real estate — with the renovation funded by the system itself.
PCC's go-to-market strategy begins with a premium pilot in Orange County — Newport Beach and Laguna Niguel — targeting families of affluent adults with specialized service classifications. This pilot generates proof-of-concept data, validates the model, and establishes PCC's market presence before the Company expands into the broader South Los Angeles SCLARC catchment area at scale.
Pacific Coast Care Residences is a portfolio strategy within the TerraVault Fund. Capital for PCC property acquisitions is deployed from the TerraVault Fund — a $50M Regulation D 506(c) real estate investment fund operated under MAREC LLC. PCC does not conduct a separate capital raise. This business plan exists to document the strategy, the model, and the opportunity in full — because our investors deserve that level of planning and transparency.
California's developmental disabilities residential system was largely built between 1975 and 2000. The owner-operators who built it are now in their 60s and 70s. Many want to retire. Most cannot.
The core problem is liquidity. A licensed, ADA-compliant group home is not a conventional asset. It has been modified — widened doorways, grab bars, roll-in showers, fire safety systems, specialized exits — specifically for its residents. These modifications reduce appeal to conventional buyers who don't need them. The result: operators who want to exit are trapped. Their property has limited market value to anyone outside the DD residential system.
Annual caregiver turnover in California DD residential facilities exceeds 50%. Every time a caregiver leaves, institutional knowledge about the consumer — their preferences, triggers, communication style, medical needs — walks out the door. Consumers are forced to re-establish trust with strangers on a recurring basis. Outcomes decline. Families live in chronic anxiety.
The problem is structural: operators pay at or near minimum wage because government reimbursement rates have not kept pace with wage inflation. The system traps operators in a low-wage, high-turnover cycle that directly harms the people it is designed to serve.
When a licensed operator loses their license — through regulatory action, financial failure, or owner exit — the residents face displacement. Regional centers scramble to find alternative placements. Properties sit vacant or revert to conventional residential use. The licensed residential supply shrinks. Waitlists grow.
California currently has more adults with developmental disabilities needing residential placement than available licensed slots. The supply gap is widening every year as operators exit and new entrants face steep licensing, compliance, and real estate barriers to entry.
California Title 17 of the Code of Regulations creates an additional structural barrier: service providers are prohibited from owning the real property their consumers occupy where doing so creates a dual financial conflict of interest. For Supported Living Services (SLS) consumers, this prohibition is explicit. The law is moving toward broader separation of real estate ownership and service provision across service types.
This regulatory reality means the DD residential system increasingly requires a separate class of real estate owners — entities that own and maintain the properties without providing services. That class does not yet exist at scale. Pacific Coast Care Residences is building it.
Pacific Coast Care Residences is a landlord. That is the entirety of its role. PCC acquires residential properties, maintains them to licensed facility standards, and leases them to vetted, licensed DD service operators under long-term agreements.
PCC holds no service license. It employs no caregivers. It has no relationship with regional centers as a service vendor. Its revenue is lease income. Its asset is real property. Its liability is that of a commercial landlord — and no more.
PCC targets properties being sold by operators who are exiting the industry. These sellers face a market with a very small pool of qualified buyers — other licensed operators, most of whom are already capital-constrained. PCC enters this market as a specialized buyer capable of closing quickly, understanding the asset class, and paying a fair price without requiring the seller to find a buyer willing to also operate the facility.
This structural dynamic produces acquisition prices 10–15% below comparable conventional residential real estate — not because the properties are inferior, but because the market for them is thin.
PCC purchases a licensed or formerly-licensed property from an exiting operator at 10–15% below comparable residential market value. The seller receives liquidity. PCC acquires a compliant or near-compliant asset.
PCC identifies and places a vetted licensed operator. That operator applies to the regional center for a startup development grant — up to $50,000 per program, with a 25% cash advance available upon proof of a physical location. PCC's property is that location.
SCLARC startup grant funds are explicitly approved for ADA compliance improvements: wheelchair ramps, accessible bathrooms, widened hallways and doorways, fire suppression systems, exit alarms, and related life-safety modifications. These are the exact improvements that create value in this asset class — and the regional center pays for them.
SCLARC startup guidelines allow reimbursement of up to four months of lease payments as a start-up expense. The operator's first 4 months of rent to PCC is effectively government-funded. This eliminates operator cash-flow risk during ramp-up and ensures PCC's initial lease income is secured.
The ADA renovations increase the property's compliance value. PCC's asset is now worth more than PCC paid for it. The improvement was funded by the state. PCC collects government-backed lease income for the duration of the operator agreement.
California operates the largest developmental disabilities service system in the United States. Administered by the Department of Developmental Services (DDS), the system serves over 300,000 Californians through a network of 21 regional centers — each responsible for a defined geographic catchment area.
Day-to-day services — including residential housing, transportation, day programs, behavioral support, and therapeutic services — are delivered by more than 40,000 licensed vendor organizations across the state. Total annual DDS expenditures exceed $10 billion.
PCC's initial scale target is the SCLARC catchment area — the region of South Central Los Angeles served by the South Central Los Angeles Regional Center for Developmentally Disabled Persons, Inc. SCLARC is one of California's most active regional centers, serving a dense urban population with documented unmet residential needs.
SCLARC publishes periodic "Unmet Service Needs" requests for letters of interest — essentially public announcements of where new residential and day program capacity is needed and available to be funded. These documents serve as PCC's acquisition intelligence pipeline: they identify which cities have demand, what service types are underprovided, and how much startup capital is available to new operators who can establish in those markets.
| City | County | SCLARC Priority Status | Median Home Price |
|---|---|---|---|
| Bell | Los Angeles | Priority — Unmet Need | $490,000 |
| Bell Gardens | Los Angeles | Priority — Unmet Need | $510,000 |
| Huntington Park | Los Angeles | Priority — Unmet Need | $535,000 |
| Lynwood | Los Angeles | Priority — Unmet Need | $525,000 |
| Maywood | Los Angeles | Priority — Unmet Need | $500,000 |
| Paramount | Los Angeles | Priority — Unmet Need | $545,000 |
| South Gate | Los Angeles | Priority — Unmet Need | $560,000 |
The Regional Center of Orange County (RCOC) serves one of California's wealthiest and most densely populated regions. Families of adults with developmental disabilities in Orange County are disproportionately affluent, educated, and engaged — and increasingly willing to supplement government funding with private pay to access higher-quality residential environments.
The specialized services classification — which covers adults with complex behavioral, medical, or cognitive profiles — generates the highest per-consumer reimbursement rates in the DDS system. Premium residential facilities serving this population in Newport Beach, Laguna Niguel, and surrounding communities represent PCC's highest-margin initial opportunity.
The DD residential real estate thesis has attracted institutional capital. Synergis, a national provider of DD residential services, has received backing from Goldman Sachs to scale its real estate portfolio. This institutional interest validates the asset class and signals that sophisticated capital has identified the same opportunity PCC is pursuing — with a model built specifically for the California regulatory environment.
PCC's revenue is lease income paid by licensed operators for use of PCC properties. To understand why PCC's lease income is so well-supported, it is important to understand how operators are paid.
California regional centers reimburse licensed residential operators on a per-consumer, per-month basis — not per facility. Each resident in a home generates an independent monthly reimbursement to the operator based on that consumer's assessed service level. A standard 4-bed home serves 4 consumers, each generating their own monthly payment. Additionally, each consumer receives SSI/SSP payments directly ($1,444/month as of January 2026) which are designated for room and board — providing a separate income stream to the operator.
This structure means operator revenue scales with occupancy and consumer acuity — not with square footage. A fully occupied 4-bed Level 4 home in the RCOC catchment area generates approximately $38,900 per month in regional center reimbursement alone — before SSI/SSP. PCC's lease is paid from this government-funded operator revenue stream, making it among the most stable and predictable commercial lease income available in residential real estate.
| Service Level | DDS Rate Per Consumer/Month (RCOC, 2025) | 4-Bed Home — Gross Operator Revenue | SSI/SSP Per Consumer/Month |
|---|---|---|---|
| Level 3 | $6,524 | $26,098/month | $1,444 × 4 = $5,776 |
| Level 4 | $9,727 | $38,908/month | $1,444 × 4 = $5,776 |
| Level 5 | $12,106 | $48,424/month | $1,444 × 4 = $5,776 |
| Level 6 | $13,687 | $54,748/month | $1,444 × 4 = $5,776 |
Source: RCOC Rate Models, Burns & Associates / DDS, effective January 2025. SSI/SSP as of January 2026 per DDS. Rates are subject to annual adjustment by DDS and the California Legislature. Projections are estimates and not guarantees of performance.
| Property Type | Location | Operator Monthly Revenue (4 beds) | PCC Monthly Lease | PCC Annual Lease Income |
|---|---|---|---|---|
| Level 3 Group Home (4 beds) | South LA / SCLARC | ~$26,100 | $5,000 – $6,500 | $60,000 – $78,000 |
| Level 4 Group Home (4 beds) | South LA / SCLARC | ~$38,900 | $6,500 – $8,500 | $78,000 – $102,000 |
| Level 5 Specialized Home (4 beds) | Orange County (RCOC) | ~$48,400 | $9,000 – $12,000 | $108,000 – $144,000 |
| Premium Level 6/7 + Private Pay | Newport Beach / Laguna | $54,700+ | $14,000 – $20,000+ | $168,000 – $240,000+ |
| Year | Properties | Avg Monthly Lease/Property | Annual Lease Revenue | Annual NOI (est.) |
|---|---|---|---|---|
| Year 1 | 3 | $10,000 | $360,000 | $252,000 |
| Year 2 | 7 | $10,500 | $882,000 | $617,400 |
| Year 3 | 12 | $11,000 | $1,584,000 | $1,108,800 |
| Year 5 | 20 | $12,000 | $2,880,000 | $2,016,000 |
NOI estimated at 70% of gross revenue after property taxes, insurance, maintenance reserves, and management fees. Average monthly lease per property reflects blended mix of South LA Level 3–4 homes and Orange County Level 5–7 premium homes. Projections are forward-looking estimates based on verified DDS rate data and current market conditions. Actual results may differ materially. Not a guarantee of performance.
Beyond lease income, PCC properties appreciate over time. Southern California residential real estate has appreciated at approximately 5–7% annually over the past decade. Properties improved with ADA compliance modifications carry additional value within the DD residential market — a niche market in which supply is shrinking and demand is growing.
Target: Newport Beach, Laguna Niguel, Irvine — Orange County
Consumer profile: Adults with specialized service classifications — autism spectrum, complex behavioral profiles — from affluent families served by RCOC
Why here first: Affluent families supplement government rates with private pay. They are sophisticated buyers who understand what quality looks like and will pay for it. They are not constrained by government rate ceilings. Most importantly, their primary motivation — ensuring their adult child has a stable, high-quality home before they die — is one PCC can speak to directly and credibly.
Properties: 2–3 premium residential properties, $600,000–$900,000 acquisition range
Monthly lease target: $10,000–$18,000 per property
Objective: Validate the model, generate outcomes data, establish market presence. The OC pilot becomes the proof of concept that drives Phase 2 expansion and Phase 3 platform development.
Target: Bell, Bell Gardens, Huntington Park, Lynwood, Maywood, Paramount, South Gate — SCLARC priority cities
Acquisition strategy: Distressed operator exits, properties 10–15% below market, SCLARC startup grant renovation flywheel
Properties: 8–12 additional properties, $400,000–$650,000 acquisition range
Monthly lease target: $4,500–$7,000 per property
Intelligence advantage: PCC monitors SCLARC unmet needs RFPs to identify exactly which cities have demand, what service types are needed, and what grant capital is available. This is a real-time acquisition map provided by the regional center itself.
Operator sourcing: PCC maintains relationships with licensed operators and service developers who need real estate to launch or expand programs. SCLARC startup grants fund the first chapter of each new operator-tenant relationship.
The concept: PCC is developing a proprietary AI-driven continuity platform for DD residential care — the medical-grade smart home for people with developmental disabilities. The platform captures comprehensive consumer profiles, monitors health and behavioral patterns passively, transfers institutional knowledge instantly to new caregivers regardless of turnover, and auto-generates regional center compliance documentation.
The problem it solves: Annual caregiver turnover exceeds 50% industry-wide. Every departure destroys the consumer's continuity of care. PCC's platform makes the care environment — not the individual caregiver — the repository of knowledge about each resident.
Revenue model: Platform licensed to operators in PCC properties, then to operators nationally. Licensing fees: $500–$2,000/month per home. National TAM: millions of DD adults across all 50 states.
IP protection: Provisional patent filing in progress. NDAs required before platform details are shared with any development or licensing partner.
California Title 17 regulations increasingly require separation of real estate ownership from service provision in the DD residential system. For SLS consumers, this separation is already mandated. PCC is not fighting the regulatory environment — it is the solution the regulatory environment requires. This creates a structural tailwind that no competitor can replicate without abandoning their service licenses.
Through the SCLARC startup grant program, PCC accesses up to $50,000 per property in renovation capital — funded by the state of California — without using investor capital for improvements. This dramatically improves capital efficiency and per-property returns. No conventional real estate investor has access to this funding mechanism.
PCC is building relationships within the SCLARC ecosystem — with regional center administrators, licensed operators, and property owners active in the DD residential market. These relationships are developed through PCC's direct engagement with the SCLARC vendor community, attendance at regional center outreach events, and targeted outreach to operators seeking stable, professionally managed real estate partners. PCC's model — a pure landlord with no competing service interest — is uniquely positioned to be welcomed by regional centers who increasingly seek separation between real estate ownership and service provision.
The concept of a specialized real estate company focused exclusively on DD residential properties in California does not yet exist at scale. Goldman Sachs-backed Synergis has validated the institutional thesis nationally, but the California-specific, SCLARC-integrated model PCC is building does not have a direct comparable competitor.
The same characteristics that make DD residential properties difficult to sell through conventional channels — ADA modifications, specific licensing requirements, limited buyer pool — create a durable competitive moat for PCC. Once PCC establishes itself as the reliable buyer and long-term landlord in this market, it becomes the default exit for every operator in the SCLARC catchment area who wants to retire.
Licensed operators who build programs in PCC properties become deeply embedded. Moving consumers to a new location is operationally complex, emotionally difficult for residents and families, and regulatorily burdensome. Operator turnover in PCC properties is expected to be minimal — creating lease stability that conventional commercial real estate cannot match.
Phase 3's platform gives operators in PCC properties a measurable outcomes advantage over competitors. Better outcomes generate better regional center ratings, which generate more consumer referrals. PCC properties become the preferred locations for operators who want to grow — creating demand-side pull for PCC real estate that no other landlord can offer.
Pacific Coast Care Residences is led by a team with deep experience in financial services, compliance, real estate operations, and the developmental disabilities regulatory environment. The founding team combines executive leadership, compliance expertise, and operational management across the full scope of PCC's business.
Chassie leads all compliance and marketing functions across the Pacific Coast Care Residences platform. She brings extensive experience in regulatory compliance, financial services communications, and organizational management. Chassie is responsible for ensuring all investor communications, marketing materials, and operational protocols meet applicable regulatory standards.
Her role spans the full organizational structure — from investor relations and brand standards to internal compliance monitoring and external regulatory coordination.
Gregory serves as Chief Operating Officer, responsible for day-to-day operations, property acquisition execution, operator relationships, and organizational infrastructure. He brings experience in financial services operations, compliance, and business development across multiple entities within the Elite Strategies Group ecosystem.
Gregory oversees the full operational execution of PCC's acquisition and leasing model, including operator sourcing, due diligence, lease negotiation, and property management coordination.
| Role | Function |
|---|---|
| Securities Counsel | Regulation D 506(c) offering structure, PPM, investor documentation |
| California Real Estate Counsel | Acquisition, title, ADA compliance, lease agreements |
| DD Industry Advisors | SCLARC relationship management, operator sourcing, regulatory navigation |
| CPA / Accounting | Fund accounting, investor reporting, tax structure |
Pacific Coast Care Residences LLC is organized as a California limited liability company. The Company is a wholly-owned subsidiary of Elite Strategies Group, a diversified financial services and investment holding company. PCC operates as an independent business unit with its own management team, financials, and investor base.
Pacific Coast Care Residences is a portfolio strategy within the TerraVault Fund — a $50M real estate investment fund operated by MAREC LLC under Regulation D 506(c). PCC does not maintain a separate capital raise or standalone offering structure. Capital for property acquisitions, renovations, and operations is deployed from the TerraVault Fund into PCC as a designated investment portfolio.
This structure means TerraVault Fund investors participate in PCC's real estate returns as part of their broader TerraVault portfolio — alongside the Fund's other real estate strategies. PCC is documented here as a full business plan because the depth of planning and transparency this strategy deserves matches the confidence our investors have placed in the TerraVault Fund.
For TerraVault Fund investors: Pacific Coast Care Residences represents a designated government-backed residential real estate strategy within your portfolio. Properties acquired under PCC are held as Fund assets. Lease income flows through the Fund's distribution structure as documented in the TerraVault Private Placement Memorandum.
| PCC Deployment Category | Estimated Capital Per Property | Notes |
|---|---|---|
| Property Acquisition — Phase 1 | $400,000 – $900,000 | Orange County premium + South LA distressed |
| Acquisition Costs, Due Diligence, Title | $15,000 – $40,000 per property | Covered by Fund operational allocation |
| ADA Renovation Capital | $0 – $50,000 per property | Funded by SCLARC operator startup grants |
| Operating Reserve | 3 months gross lease per property | Held at Fund level |
| Phase 3 Platform Development | Funded from operating cash flow | After Phase 1 properties are cash-flowing |
All capital figures are estimates based on current market conditions and are subject to change. Actual deployment will be determined by acquisition pipeline, due diligence findings, and Fund manager discretion. Projections are not guarantees of performance.
This document does not constitute an offer to sell or solicitation of an offer to buy securities. All investment in TerraVault Fund strategies including Pacific Coast Care Residences is governed exclusively by the TerraVault Fund Private Placement Memorandum. Investors should review all offering documents and consult independent legal and financial counsel before investing.
Investing in Pacific Coast Care Residences involves material risks. The following is a summary of key risk factors, including PCC's structural protections against those risks. This summary is not exhaustive. Prospective investors should review the complete risk factors section in the TerraVault Fund Private Placement Memorandum and consult independent counsel and financial advisors.
One of the most common investor questions about DD residential real estate is: what happens if an operator stops paying rent and there are vulnerable adults living in the home? PCC's lease structure, combined with the California regional center system, provides multiple layers of protection that conventional commercial real estate does not have.
Regional Center Notification Clause: Every PCC lease agreement contains a mandatory regional center notification clause. If an operator misses a payment or triggers any defined default threshold, PCC notifies the relevant regional center immediately. This activates the regional center's consumer protection protocols and creates maximum pressure on the operator — because losing regional center standing terminates their entire business, not just their PCC lease.
Operator's Existential Incentive: A licensed DD residential operator's vendorization — their ability to receive government reimbursement — is their entire revenue source. An operator who defaults on a PCC lease and loses their license loses everything. This creates a fundamentally stronger incentive to cure default than exists in conventional commercial leases.
Regional Center as Early Warning System: SCLARC and all California regional centers conduct mandatory quarterly monitoring visits on every vendored facility. They identify financial distress before it becomes a crisis. Under California Welfare & Institutions Code, regional centers are legally obligated to ensure continuity of placement for every consumer. PCC's interests and the regional center's consumer protection mandate are fully aligned.
PCC has developed a structured default-to-transition process that transforms a potential crisis into an orderly handoff — protecting consumers, the regional center, and PCC's income stream simultaneously:
| Timeline | Action | Who Acts |
|---|---|---|
| Day 1 | Operator misses payment or breaches lease threshold. PCC sends formal notice to operator AND notifies regional center simultaneously. | PCC |
| Days 1–7 | 7-day cure window. Operator has full opportunity to remedy. Regional center is on notice and monitoring. No consumer disruption. | Operator / RC |
| Day 7 | If not cured: PCC notifies regional center of intent to proceed with eviction AND formally requests the regional center identify an operator in good standing to assume consumer care. | PCC |
| Days 7–30 | Regional center sources a vetted replacement operator. Their legal obligation is consumer continuity — they are motivated to move quickly. Replacement operator begins transition planning. | Regional Center |
| Days 30–60 | Replacement operator assumes consumer care. Consumers experience minimal disruption. Defaulting operator removed. PCC executes new lease with replacement operator. | PCC + New Operator |
Why this works for all parties: The regional center's legal obligation to protect consumers gives them a powerful incentive to produce a qualified replacement operator quickly — rather than waiting for court proceedings. PCC gets a vetted, regional-center-approved replacement sourced by the same entity that controls the funding. Consumers remain in their home with continuity of care. PCC's income gap shrinks from months to potentially weeks. The regional center places a preferred operator in a compliant, ready-to-operate property. Every party's interests align.
Lease Requirement: This Operator Transition Protocol is written into every PCC lease as a defined contractual process, not merely a general right. All lease language subject to review by securities and real estate counsel prior to execution.
California Eviction Timeline (Commercial Tenant): Operators are commercial tenants — not residential consumers. Upon default: 3-day notice to pay or quit → unlawful detainer filing → full eviction typically resolved in 60–90 days from first missed payment. The Operator Transition Protocol ensures consumers and a replacement operator are already in motion well before court proceedings conclude.
This business plan does not constitute an offer to sell or a solicitation of an offer to buy securities. Any offer will be made only by means of a Private Placement Memorandum delivered to qualified accredited investors. Past performance is not indicative of future results. All projections are forward-looking statements subject to risks and uncertainties.
All prospective investors are required to execute a non-disclosure agreement before receiving the Private Placement Memorandum or detailed financial models.
Complete accredited investor verification through the TerraVault Fund's third-party verification process as outlined in the Private Placement Memorandum.
The TerraVault Fund Private Placement Memorandum contains complete offering terms, risk factors, financial statements, and investor documentation including the Pacific Coast Care Residences portfolio strategy. Prospective investors should review all documents with independent legal and financial counsel.
Members of the PCC management team are available for direct conversations with qualified prospective investors. Please contact us to schedule.
Pacific Coast Care Residences LLC
An Elite Strategies Group Company
Chassie Guinn — Co-Founder, Compliance & Marketing
This document is confidential and intended solely for the use of the individual or entity to which it is addressed. Reproduction or distribution without written authorization is prohibited.