Autumn Leaves of Cypresswood

Senior Housing

Investment Highlights

Investment Summary

This project is the development of a 46-bed Alzheimer’s facility located on the south side of Cypresswood Drive at Wimbledon Forest Drive in the Champions area of the northwest suburbs of Houston. This area was one of the original suburbs in northwest Houston and its rapid development and growth began in the 1950’s when FM 1960 was widened and when Champions Golf Club opened. Subsequently, FM 1960 has become a major retail and light office corridor and Champions Golf Club has become a premier golf club; hosting prestigious tournaments such as the Ryder Cup, U.S. Open, and Tour Championship. These two amenities created a solid base that put the area on the map and led to both significant residential and commercial growth in the area. The area continued to grow as a result of the strong school systems, creation of parks, continued development of FM 1960, and overall upscale name and feel to the area. The area’s continued growth is illustrated by a Year 2009 population of 235,000, representing a 30% increase over Year 2000. The affluence of the area is demonstrated by its 2009 Median Household Income of $73,000, roughly 35% greater than Median Household Income of Harris County as a whole.

Development began in May of 2010 and the project was completed in March of 2011. At the time of the refinance in December 2012, investors had received a multiple of 1.42 times on their original equity and continue to receive consistent cash flow distributions going forward.

This, the fifth investment sponsored by Silverado, is being developed in a highly favorable supply/demand market. At the time of investment, Cypresswood had an actual supply of 174 beds with a total projected need of 631 beds. This translated to the market being underserved by around a four to one ratio and provided for an excellent investment opportunity.