Greystone Closes Sale on Seniors Housing Property in Dallas Area
- Apr 08, 2015
Aspens at Twin Creeks, a 180-unit age-restricted residential property in Allen, Texas., has come under new ownership with the assistance of Greystone Real Estate Advisors. Acting on behalf of owner Cadence Capital Partners, Greystone sold the suburban Dallas property to Kayne Anderson Real Estate Advisors.
The seniors housing market continues to sizzle across the country, so there was no shortage of suitors for Aspens. “The majority of investors who were interested in Aspens at Twin Creeks were institutional private equity groups who already have significant investments in the seniors space, with the balance being conventional multi-family owners looking to expand their portfolios up the service scale into the seniors sector,” Cody Tremper, a managing director with Greystone, told Commercial Property Executive.
Aspens first opened its doors in 2011, occupying 10 acres roughly 30 miles outside of Dallas. Today, the independent living community is a stabilized asset.
“The age-restricted market has become a very sought after investment due to the operational similarities to conventional multi-family, as the margins are very comparable,” Tremper added. “The attractiveness lies within the low annual turnover of residents coupled with market pricing above and beyond the conventional space, as the properties demand higher pricing due to seniors paying a premium to live with others their same age.”
Of course, demand in the seniors housing sector extends beyond independent living, and the new owner of Aspen has an opportunity to expand the property into the assisted living sub-sector, given the availability of land across from the site. The potential for such a development is highly valuable, as both the independent living and assisted living markets are thriving.
In 2014 annual absorption continued to outpace inventory growth across the seniors housing sector for the fourth consecutive year, according to a report by the National Investment Center for Seniors Housing & Care, thereby placing continued upward pressure on the overall occupancy rate. Investors are anything but oblivious to the strength of the seniors housing market.
“It seems that every month, more and more investment groups are looking to enter the seniors space due to the attractive yields compared to other real estate sectors, the compelling demographic statistics, as well as to diversify their portfolios,” Tremper concluded.