Southwest Ft. Worth – Alzheimer’s Development
This project is the development of a 42-bed Alzheimer’s facility. The property is adjacent to Harris Methodist Hospital located at the northeast corner of Harris Parkway and Dutch Branch Road on 2.66 acres in Southwest Fort Worth. The project development and lease up is anticipated to take 36 months. Upon stabilization, the property can be refinanced, which is consistent with all of the projects completed by our development partner.

We anticipate the project will provide a low 20s IRR on cash flow and refinancing with no asset sale. Historically, our partner has never produced below a 24% IRR to the equity capital for any of their Alzheimer’s development projects.

We were attracted to this project first and foremost because of our exceptional development partner who has consistently achieved success in this product type. Secondly, the fact that this development partner focuses solely on Alzheimer’s and memory care is important to us. Finally, we liked the idea of the investment being need-based and providing a service to the growing baby boomer generation.

This particular project’s geographical area, as of 2008, had a supply of 261 total beds and a projected demand for 824 beds. The need is underserved by a three to one ratio with a demand that continues to grow. Further, we feel that this business has enormous barriers to entry due to the complexities of operating and staffing these facilities. Our partner develops, staffs, and operates each facility so the process is controlled internally. Our partner provides a turnkey process, which we feel helps control costs and increase efficiencies while maintaining the highest quality of care for its residences.