Individual Investors Are Funding This Active Adult Senior Living Community In Texas

Investors have now funded 68% of a Class A new construction project in Prosper, Texas.

Alders at Prosper is a ground-up development of a Class A active adult senior living community in the north Dallas suburb of Prosper. The project has been raising capital from equity investors on the RealtyMogul investment platform.

The community, designed for active adults ages 55 and older, will have 188 units in two buildings. Amenities include a heated swimming pool and spa, pickle bar courts, pub-style game room, clubhouse, full outdoor kitchen, fitness facility, salon, putting green and library. 

Prosper is a rapidly growing community that has experienced a nearly 10% increase in population since 2010 with another 196,000 projected to move there by 2026. The affluent community has a median household income of nearly $130,000 with an annual growth rate of 6.4%. Surrounding the Dallas suburb is industry, shopping, restaurants, golf courses and the Omni PGA Frisco Resort, the largest resort facility currently under construction in the country.

The owner plans to sell the property at project stabilization in about 40 months. The total capitalization of the development is $52.8 million ($281,000 per unit), and the projected gross sales proceeds are $70.3 million ($374,000 per unit.) The development comes with built-in equity as the appraised value came in $13.38 million higher than the total project cost.

• Minimum investment: $35,000
• Target internal rate of return (IRR): 23.1%
• Target equity multiple: 2x
• Target investment term: 40 months

Project developer Alder Development Group is a Texas-based company that focuses on active-adult retirement facilities. The Prosper development is Alder’s fifth project in Texas. Alder currently is developing four other projects in Texas valued at more than $200 million.

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Photo: Courtesy of RealtyMogul