🏡 Radiant Active Adult — Georgetown TX

Georgetown TX is the strongest submarket for Active Adult development in Texas — and arguably in the entire US. The evidence is incontrovertible:

Why Georgetown for Active Adult — specifically:

• Sun City is the proof of concept. Del Webb built 10,000+ homes over 20+ years in Georgetown specifically because the demand was there. 38,000 people chose Georgetown as their active adult community. This demand is real, deep, and proven.
• Sun City residents who want to downsize to rental have ZERO options. A Sun City homeowner who's tired of maintaining their 2,500 SF home and wants a maintenance-free rental? They have to leave Georgetown. Radiant fixes that.
• Georgetown is a top retirement migration destination. No state income tax, affordable cost of living (vs. California/Northeast), warm weather, excellent healthcare (Baylor Scott & White Georgetown, St. David's Georgetown).
• Williamson County growth: One of the fastest-growing counties in the US. Austin tech spillover (Dell in Round Rock), Cedar Park/Leander growth corridor. New residents include working professionals 50-65 who will age into the 55+ demographic.
• Lower costs than Austin: Construction costs 10-15% lower. Property taxes lower (Williamson vs. Travis County). Operating costs lower. This means better margins even with lower rents.

There is virtually no purpose-built Active Adult rental product in Georgetown. The competitive landscape is almost entirely for-sale product or general-population apartments.

Georgetown & Williamson County Comps:

• Sun City Georgetown (Del Webb) — 10,000+ homes, 38,000+ residents. FOR SALE ONLY. Age-restricted 55+. Homes $300K-$600K. This is the demand proof point but NOT a rental competitor. Sun City residents who want to downsize to rental must leave Georgetown.
• Lago at Brushy Creek — ~200 units near Round Rock/Cedar Park. General population rental. Rents $1,500-$2,100/mo. Not AA-specific but serves some 55+ renters by default.
• Monarch at Georgetown — ~180 units, general population rental in Georgetown. Rents $1,400-$1,900/mo. Not age-restricted or AA-specific.
• Various for-sale 55+ communities — Heritage Oaks, The Reserve at Berry Creek. For-sale HOA product, not rental. Different market segment.

Austin Metro AA Rental (farther away):

• Watermere at Barton Creek — South Austin, 30+ miles from Georgetown. Luxury AA rental. $2,200-$3,500/mo. Different price point and geography.
• Overture Domain — North Austin, ~20 miles from Georgetown. Urban luxury AA. $2,500-$3,800/mo. Different product and market.
• Traditions at Onion Creek — South Austin. Mid-market AA rental. $1,800-$2,600/mo. Closest product comp but 40+ miles from Georgetown.

Georgetown and Williamson County have some of the strongest 55+ demographic tailwinds in the country.

Why Georgetown's 55+ demographics are exceptional:

• Sun City effect: Georgetown already has the highest concentration of 55+ adults per capita of any mid-size Texas city. Sun City alone has 38,000+ residents aged 55+. This creates a self-reinforcing ecosystem — healthcare, services, social networks, and retailers all cater to the 55+ demographic.
• In-place aging: Williamson County's explosive growth over the past 20 years means a large wave of 40-55 year olds who settled in the 2000s-2010s are now aging into the 55+ cohort. These are established residents who want to stay in the area.
• Retirement migration: Georgetown is a recognized retirement destination (AARP, Forbes lists). Retirees from California, Colorado, and the Northeast bring significant home equity ($500K-$1M+) — they can afford $1,750-$2,400/mo rents easily.
• Healthcare infrastructure: Baylor Scott & White Georgetown, St. David's Georgetown, multiple urgent care and specialist facilities. Healthcare access is the #1 requirement for 55+ renters — Georgetown delivers.
• Cost of living: Georgetown is more affordable than Austin while offering the same quality of life. No state income tax. Lower property taxes in Williamson County. This makes Georgetown rents of $1,750-$2,400 very competitive for retirees coming from higher-cost markets.

Key structural notes:

• Novak contributes land ($5M) but has $2.6M in debt against it. Net equity is $2.4M. JV ownership % should reflect net equity, not gross land value.
• The $2.6M debt payoff is handled from construction loan proceeds at closing — this means $2.6M of the $30M CL goes to debt, not construction.
• Institutional LP enters pari passu with F&F post-CL close. F&F is not subordinated.
• The $800K pre-development cost ($200K plans + $400K permits + $200K carry) comes from JAK's $5.5M F&F equity — this is the earliest at-risk capital.

What happened: Radiant was fully designed and permitted by the City of Georgetown. The permit has since expired (likely due to inactivity/failure to commence construction within the permit window). Building codes have been updated since the original permit, so the plans need to be revised to comply with current codes before re-submitting.

Why it's manageable:

• The project was previously approved — Georgetown already said yes once
• Code changes between permit cycles are typically incremental, not fundamental
• Georgetown is a pro-growth city that wants development
• The $800K cost is known and budgeted
• The original architect/engineer team can update plans efficiently

Why it's still a risk:

• $800K is at risk before construction financing closes
• 8 months of timeline before construction can start
• Code changes could be larger than expected (new fire codes, stormwater, ADA)
• Re-permitting reopens the project to public comment
• If denied: $800K lost, project dead or requires major redesign