Skye Leander, Leander, TX

 Closed in November of 2014, Skye Leander (“Skye”) was a joint venture equity investment in a 153-unit senior independent living development project located in Leander, TX, a northwestern suburb of Austin. The investment thesis of this project was to capitalize a permit-ready project in a rapidly growing submarket that was under-served for senior living. Arris identified and partnered with a strong local developer who had extensive experience in Austin and Leander and had fully-planned, entitled and bid the construction project prior to closing of the venture. The developer had his own management company that was prepared to manage Skye.

Due to an attractive land basis and strong projected rents for a full-service independent living facility in this market, the stabilized yield on cost was projected to be 300-400 basis points above where Arris believed exit cap rates to be for the finished project. At 65% loan to cost financing, which had been procured, this yield spread drove a compelling risk adjusted return for development.

Key Investment Stats