We create value for investors through two components: real estate and operations. Each of these pieces, standing alone, has proven to be profitable and give assisted living and Alzheimer's care properties a unique resiliency combining the benefits of real estate investment with the strength of the healthcare field. This resiliency was evident during the real estate downturn of 2008-2010 when seniors housing outperformed other commercial real estate property types in terms of investment returns, rent growth and loan performance. The returns on seniors housing (specifically assisted living and Alzheimer's care facilities) have consistently outperformed other real estate investments during the last five years. Much of the strength of this recent investment performance can be attributed to relatively steady leasing trends. Seniors housing, unlike many other property types, has also managed to increase asking rents and reported positive rent growth from 2008 to 2009.
McFarlin Group takes a conservative approach to economic modeling, using proprietary software and modeling written and developed by McFarlin Group. Through our modeling and disciplined approach to planning, we are able to assess and determine underserved markets. Uncovering these top market opportunities, mitigating risk and capitalizing on the highest potential financial return in the least amount of time is our focus. McFarlin Group believes the most compelling opportunity in the seniors housing space is to develop cost-effective, assisted living with memory care facilities. We focus on developing high acuity senior services and housing (need-driven) and building a product that is affordable to each specific market (i.e. Hyatt Place not a Ritz Carlton).
As we look to the future, we are very encouraged as our formula is working. Orchard Park of McKinney, which opened in May 2011, is almost 90% occupied after just 8 months. Our approach allows us to develop a new product and enter each market at a lower price point than our competition which creates a competitive advantage for our facilities. In addition, we believe that because our services are cost-effective and need-driven, it will continue to be resistant to economic downturns and we will continue to benefit from other key demographic trends in the industry including the increase in the number of seniors, the increasing incidence rate of Alzheimer's as seniors live healthier, longer and the increase in number of seniors looking for care outside of their family.