Many have extolled the advantages of senior care communities partnering with universities. Through collaborative programming, the relationship helps keep seniors engaged with other generations, and students in turn can benefit from the residents’ years of wisdom and experiences.
With that in mind, a partnership between an affiliate of Arizona State University (ASU) and Pacific Retirement Services (PRS) is building a 20-story CCRC on ASU’s main campus in Tucson. Under PRS’s “Mirabella” high-rise CCRC brand, this community will have four levels of care and around 252 total units. The first floor will feature a public restaurant and retail space, while three restaurants will likely be placed on the 14th floor, offering great views to residents.
ASU leased (under a 99-year term) the 1.5-acre lot to ASU Foundation, the University’s independent fundraising arm and co-developer on the project. The first move-ins are expected in 2020, and interest is apparently already strong.
Financing this large project was Cain Brothers, which closed a $252 million tax-exempt bond issuance made up of $157 million in short-term entrance fee bonds, $82 million of publicly issued long-term fixed-rate bonds and $12 million of subordinated tax-exempt fixed rate bonds. The all-in cost of capital came out to 6.09% with 36 investors in total participating in the transaction. ASU’s affiliate provided land equity, while PRS, which will operate the community, contributed funds for start-up capital and financial support. Cain Brothers also helped PRS secure seed capital to fund pre-development costs.
