Texas Senior Housing Scores $37M Refi

Greystone provided the Fannie Mae loan to Integrated Real Estate Group for its 222-unit community in Pearland.
Watercrest at Shadow Creek. Image courtesy of Greystone

Integrated Real Estate Group has secured $37 million to refinance its independent living community, Watercrest at Shadow Creek Ranch. The 10-year senior mortgage was secured by Greystone’s Cary Tremper and its affiliated operator, Integrated Senior Lifestyles.

Located at 11745 Broadway St. in Pearland, Texas, Watercrest at Shadow Creek Ranch offers one-, two- and three-bedroom units and villa residences for its senior residents. Built in 2017, the property’s amenities include a heated indoor pool, a dining hall, onsite salon and spa, a fitness center, a business center, an activity center, and guest suites for family and friends.

As a senior living community, Watercrest also offers its residents a la carte services, like bi-weekly housekeeping, emergency response pendants, climate-controlled storage units and parking spaces and garages. The tenants also can partake in Watercrest’s calendar filled with activities like exercise classes, brain training games and field trips.

Elsewhere in Texas, Greystone also provided financing to two other multifamily properties, including a $27 million loan for a 542-unit community in Houston and two loans totaling $19.5 million for a 216-unit property in Haltom City, Texas.

For Watercrest, Tremper explained that it was a straightforward process securing the refinancing.

“The sponsors and management team behind the Watercrest community are the exact high quality that make a refinance transaction with Fannie Mae a smooth transaction,” Tremper told Multi-Housing News. “We are optimistic about the future of seniors housing, given the expected growth in this target demographic group, and the anticipated demand for independent living communities of this caliber.”

SENIOR HOUSING SPIKE

Tremper’s confidence in the senior housing sector lines up with the latest market research. According to Collier’s mid-year report on Texas’ senior housing market, sales volume for the area-specific sector rose 63 percent year-over-year.

The report added that senior housing’s annual rent growth went up in all Texas metros in the second quarter of 2019, with San Antonio seeing a 3.6 percent increase, Houston experiencing a 2.9 percent rise, Dallas with a 1.8 percent increase and Austin having a 1.7 percent growth.