Transactions


Autumn Leaves of West Houston – Memory Care Facility
This project is the development of a 46-bed Alzheimer’s facility located along Eldridge Parkway just south of Briar Forest Drive in the heart of the Energy Corridor portion of Houston, TX. This area is characterized by several upscale residential communities including Lakes of Parkway, Parkway Village, Royal Oaks, and the West Memorial area, with various residential subdivisions. Homes in Lakes of Parkway generally range from $500,000 to $1.5 million; homes in Parkway Village generally range from $400,000 to $700,000; homes in Royal Oaks generally range from $500,000 to $2.0 million; homes in the West Memorial area generally range from $300,000 to $700,000. West Houston and the surrounding area consist of a very large number of residents. Within a 14-minunte drive-time of the site, the population is approximately 525,000 people; this is higher than suburban areas of town. In addition, the Eldridge Parkway location will provide great visibility and drive-by traffic. According to a 2006 Texas Department of Transportation study, the average daily traffic count for this portion of Eldridge Parkway is 28,000 vehicles per day.

This project was begun in July of 2012, and is currently in development. LaSalle believes they will produce a 15% - 20% IRR for the investors in this property.

We were attracted to this project due to the strong track record of our partner, The Lasalle Group. LaSalle develops, builds and manages specialized assisted living facilities for people with Alzheimer’s disease and other forms of memory impairment, and is solely focused on this niche. LaSalle’s track record has provided for consistent success with Alzheimer’s properties, maintaining occupancy levels close to 90 percent for all stabilized properties. LaSalle believes they will produce a 15%-20% IRR for the investors in this property.

This, the twelfth memory care facility investment sponsored by Silverado, is being developed in a highly favorable supply/demand market. Specific to this project, West Houston had an actual supply of 187 beds with a total projected need by LaSalle of 842 beds. This translated to the market being underserved by around a five to one ratio and provided for an excellent investment opportunity. We believe, based upon LaSalle’s projections that the opportunity to invest with a proven development partner, with whom we have had success in the past, in a market that is underserved provides the opportunity to create a successful investment opportunity for our investors.