Atlanta-based Parc Communities is bringing its luxury seniors housing brand out of state for the first time, with a 159-unit development near Texas A&M University in Bryan, Texas (next to College Station). Launched in 2000, Parc Communities made its name as a high-end provider of independent living, helped by the fact that its founding principles came from Ritz Carlton and formed Parc’s hospitality-driven model. However, the Great Recession hit independent living especially hard, and Parc repositioned its portfolio, adding an assisted living component to three communities, keeping two as-is, and selling off two.
Now, Parc Communities is priming itself for growth again, starting with a 159-unit senior living community in the College Station area of Texas. Featuring 91 IL, 44 AL and 24 memory care units, the community is located in a master-planned community that comes with a Jack Nicklaus-designed golf course. Also, just a couple of miles away from the Texas A&M campus, the community is adjacent to the university’s Health Science Center, with which it has agreed to collaborate, along with The CHI St. Joseph Health MatureWell Lifestyle Center, a primary care/rehab center tailored to adults aged 55 and over, to work towards advancing quality of life for seniors.
With so much seniors housing development happening in several Texas markets, one may ask why Texas, and why now? First, several of the companies’ partners are from Texas, including one (Executive Vice President Andy Slavin) who attended Texas A&M University. So, the state was a natural progression in their growth strategy. But also, aware of the overdevelopment in the Houston and Dallas markets, Parc selected the College Station-Bryan MSA as the best place to introduce their top-of-the-market product. A not-for-profit entrance-fee CCRC and a large senior apartment community, both either developed or redeveloped in the last eight years, already operate in the area, but Parc hopes to attract those seniors looking for services and a continuum of care without the large entrance fee. Rents will be on the higher end, as are the development costs, given its high-end finishes and hospitality-driven model.
With its Georgia communities, Parc has always had institutional partners as the majority owners, and helping finance the developments as well. But since Bryan is in a tertiary market, Parc utilized a construction loan from a local Atlanta bank and a non-institutional capital raise from local individuals in Texas to finance the project, which is currently in lease-up. Parc is still looking to expand its holdings in Texas, either through development or acquisition, especially of repositioning opportunities.