This project is the development of a 46-bed Alzheimer’s facility located in Pearland, TX. The property is located on the south side of Discover Bay Drive, just west of Business Center Drive. The City of Pearland is a major suburb located just south of Houston and is only nine miles south of Texas Medical Center, the largest medical center in the world. In fact, Pearland boasts the highest percentage of Medical Center employees compared with other suburbs in the Houston metropolitan area. In 2007, Pearland was ranked by Forbes Magazine as the fastest growing suburb in Greater Houston. The city also benefits from its prime location along Highway 288 and the Sam Houston Tollway. Highway 288 provides direct access from our community to Texas Medical Center and Sam Houston Tollway, the primary loop around the Houston Metropolitan area, provides our Pearland location convenient access to the entire Houston market.
This project was begun in December of 2010, was completed in October of 2011, and is currently in lease-up. 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 sixth investment sponsored by Silverado, is being developed in a highly favorable supply/demand market. Specific to this project, Pearland had an actual supply of 37 beds with a total projected need by LaSalle of 594 beds. This translated to the market being underserved by around a sixteen 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 , 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.