In January of 2018, CREC and PM Realty Group, L.P. (“PMRG”) formed a joint venture to develop a 200-unit senior living community named Hidden Springs. The project is located in the north-Dallas suburb of McKinney, Texas, which topped Money Magazine’s list of “Best Place to Live in America” in 2014. A high standard of living coupled with an accommodative business environment, both at the state and local level, spurred a 200% population increase within McKinney over the prior 17 years, with population increasing from 54,000 in 2000 to 168,000 in 2017 (according to the U.S. Census Bureau).
As a result of the rapid increase in population, there existed a supply-demand imbalance, especially in the independent-living space, within the markets surrounding the site of the project. Hidden Springs was designed to meet this demand, with its unit mix consisting of 132 independent-living (“IL”) units, 40 assisted-living (“AL”) units and 28 memory-care (“MC”) units. Based on the local demographic trends and market fundamentals, all of the units were planned to be private pay, involving no governmental reimbursements.
Hidden Springs achieved its Certificate of Occupancy on March 9, 2020, and resident move-ins commenced immediately thereafter. The licensing for assisted living and memory care was delayed due to COVID-19, however Hidden Springs passed its Texas Health and Human Services Commission (HHSC) Life Safety Inspection in June of 2020, which permitted assisted living and memory care residents to move into the facility.
As of January 1, 2021, the occupancy across the three levels of acuity exceeded 30%. The pace of lease-up was strong given the significant COVID-related challenges across the senior living industry throughout 2020.
The Hidden Springs staff and residents were offered COVID vaccinations on-site in December of 2020. CREC’s anticipation for the property is that progress with lease-up and a return to normalcy post-COVID will bring additional operational success to the property.
- Asset Location: McKinney, TX (North Dallas)
- 200-unit senior housing community
- Investment Date: January 2018
- CREC Total Investment: $11.5 Million
- Investment Type: Senior Housing Development
- JV Partner: PM Realty Group, L.P. (“PMRG”)