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A luxury senior living expansion project in Cypress has achieved full financing after starting construction late last year.
The first phase of Spring Cypress Senior Living, developed by Dallas-based MedCore Partners and Houston-based The National Realty Group, opened in 2018. It includes 80 units for assisted living and memory care residents in a two-story complex on 5 acres at 16306 Spring Cypress Road.
Phase 2 is being developed by MedCore with equity partner Acron USA, which acquired the 19.6-acre property from The National Realty Group. Zurich-based Acron, whose U.S. headquarters is in Dallas, is the majority owner.
The $97 million expansion started last November, with financing provided by Tulsa, Oklahoma-based BOK Financial Corp. (Nasdaq: BOKF) and private equity investors. Shortly after, Houston-based private equity company Granite Harbor Advisors, in partnership with Oxford, Mississippi-based Addicus, joined the project and raised $12 million in less than a month to reach full financing, according to Granite Harbor managing partners Brian Sak and Nick Brown.
Irving, Texas-based Orcutt Winslow provided the architectural and engineering services, Dallas-based Faulkner Design Group is handling the interior design, and Dallas-based Pacheco Koch is the landscape engineer.
The expansion is slated to be completed by the third or fourth quarter of next year. It includes 24 three-story independent-living townhomes with garages; 19 one-story independent-living cottages with garages; and a three-story, 95-unit assisted-living apartment building with a courtyard, pool, dining area, fire pit, bistro, a poolside bar and a sports bar, and a roof garden with fireplaces and outdoor kitchen. The existing memory care unit building will also be expanded with 14 units added.
The current facility’s managing company, Carlsbad, California-based Integral Senior Living, will manage the entire campus, including programs and services such as concierge living, club valet services and resident outings.
Rent ranges between $4,000 and $7,000 per month, depending on the type of housing and care. The existing building is nearly 95% occupied, according to Granite Harbor.
Demand for senior living is high as the majority of baby boomers have reached retirement age. According to the U.S. Census Bureau, 10,000 Americans turn 65 every day, and by 2030, all baby boomers will be age 65 or older.
The Cypress area, in particular, is a prime market for these types of projects, Brown said. Master-planned communities in the area, such as The Howard Hughes Corp.’s Bridgeland, are growing fast.
“As the city expands more northward and westward, stuff like this is, we feel, going to be in a lot higher demand because the economic makeup of our city and the familial aspects that I think most Texans share," he said. "They want mom and dad to be well cared for and they want mom and dad to be close.”
Spring Cypress Senior Living is the fifth senior housing development for both MedCore and Acron USA, and they are looking at future projects in Greater Houston, Acron USA CEO Greg Wilson said.
“Over the last 10 years, this class of real estate has been one of the best performing in the market,” he said. “This is a very strong market, even in this environment. We've got to provide for our seniors, and this is the best way we know how to do it in this country.”
More developers are also investing into “active adult” apartments, age-restricted communities that cater to seniors’ needs and typically offer activities for residents. In Houston, that includes Canterbury Development, Caldwell Cos. and Edison Equity Management Corp., among others.
