Ziegler has been dominating the tax-exempt bond financing market for seniors housing, closing over $400 million in issuances since November. Its two most recent transactions involved a couple of not-for-profit CCRC operators. First (and the largest), Ziegler closed $126 million in non-rated, tax-exempt bonds, plus $3.8 million in non-rated, taxable, fixed-rate bonds for C.C. Young Memorial Home. The Texas-based not-for-profit was founded in 1922 by the State of Texas to care for the elderly, and now owns and operates a 20-acre campus in northeast Dallas. Included at the community are 223 independent living units in a number of buildings, 75 assisted living units, 30 memory care beds and a 117-bed skilled nursing facility, in addition to an activity building with classrooms, a theater, auditorium and a chapel.
Proceeds of the bonds will be used for a repositioning of the community that includes 45 additional AL beds, 48 AL/MC beds to replace the existing 40 MC beds, and a new 128-bed replacement skilled nursing facility. In addition, the refinance will redeem a $4 million interim bank loan (which financed predevelopment activities), fund capitalized interest on the new bonds, reimburse C.C. Young for past and future capital expenditures and fund separate debt service reserves for each bond series.
Later, Ziegler closed $22 million in fixed-rate Series 2016B bonds for Northern California Retired Officers Community. The borrower owns and operates a CCRC located on a 76-acre campus in Fairfield, California. There are 199 independent living houses, 123 IL units, 68 assisted living units and 60 skilled nursing beds, which are approximately 75% occupied by retired military officers. The bond issuance will refund $8.85 million of outstanding Series 2005 bonds and finance the construction of 18 memory care beds plus a parking structure. Amortization is scheduled for 30 years ending January 1, 2047, but the portion allocated towards refunding outstanding bonds did not extend the final maturity of the 2005 bonds. The new funds wrap around the refunding portion in years 2032 through 2047. The average yield comes to 4.208%.
