Autumn Leaves of Denton – Alzheimer's Development
This project is the development of a 46-bed Alzheimer’s facility located in Denton, TX. The property, which totals 3.67 acres, is located on Brinker Road and sits on land that is part of Hospital Corporation of America’s 299-acre master plan. The project is also in close proximity to Denton Regional Medical Center along with three other regional health care centers that can act as a referral base for the development.

The construction for this project and lease up is anticipated to take 36 months, which falls in line with all previous projects. Upon stabilization, this project can be refinanced, which is consistent with all developments completed by our operating partner. We anticipate the project will provide a low 20’s IRR on cash flow and refinance 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 due to the strong track record of our partner, with whom we had previously teamed up with on our Southwest Ft. Worth Alzheimer’s project. Our partner is solely focused on this niche. Along with our personal experience, our development partner’s track record has provided for consistent success with Alzheimer’s properties, maintaining occupancies in the low to mid 90’s for all facilities that have been open for greater than two years.

This, the second investment sponsored by Silverado, is being developed in a highly favorable supply/demand market. In this case in particular, Denton has an actual supply of 68 beds with a total need of 472 beds. This translates to the market being underserved by almost an eight to one ratio and provides for an enormous investment opportunity. We feel that the opportunity to invest with a proven development partner with whom we have had success in the past in a market that is drastically underserved provides us with the opportunity to create a successful investment opportunity for our investors.