This project is the development of a 46-bed Alzheimer’s facility located at the southeast corner of West Road and Wheat Cross Drive in the Cy-Fair area of Houston, TX. The amenities and lifestyle in the area create a solid base bringing people and recognition to Cy-Fair while providing continued residential growth and economic development. Residential growth experienced a strong 60 percent increase over the year 2000 culminating into a population of 522,227 during 2010. The strong income levels in the area are demonstrated by its 2010 median household income of $74,000, approximately 35 percent greater than the median household income of Harris County as a whole.
This project was begun in November of 2011, 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 tenth memory care facility investment sponsored by Silverado, is being developed in a highly favorable supply/demand market. Specific to this project, Cy-Fair had an actual supply of 61 beds with a total projected need by LaSalle of 441 beds. This translated to the market being underserved by more than a seven 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.