Ziegler’s impressive run of activity continued with a couple of financings closed in the normally quiet week between Christmas and New Year’s Day. The larger transaction saw $136.77 million of public bonds and bank capital closed for People of Faith, Inc., d/b/a Royal Oaks Life Care Community. Originally established in Sun City, Arizona in 1981, the CCRC consists of 258 independent living apartments, 102 IL garden homes, 59 assisted living units, 56 memory care units, and a 60-bed high acuity assisted living care center, which replaced the former skilled nursing facility on the 50-acre campus.
Ownership has a 20-year master plan to expand the property and will utilize the bonds to fund the acquisition of 8.1 acres to the west of the campus, enhancement of the amenities, and construction of 156 IL units comprised of two-story villas, a three-story building and a four-story building. There will also be three new dining venues.
Ziegler first arranged $90.77 million of tax-exempt, fixed-rate revenue bonds amortizing over 35 years and wrapping around the existing Series 2016 bonds. The team then secured $46 million of variable-rate, tax-exempt drawdown entrance fee redemption bonds placed with Washington Federal Bank. The series is expected to be redeemed upon 85% occupancy of the new units and will be funded in stages after all fixed-rate bond proceeds have been expended. This transaction was the result of a 20-year relationship between Ziegler and Royal Oaks, and we imagine it will not be the last.
Ziegler also successfully closed $22.075 million in bond anticipation notes for not-for-profit Forefront Living Plano (with parent company Presbyterian Communities and Services, Inc.) to develop a new senior living community in Plano, Texas. The financing comprised $20.575 million of tax-exempt notes sold publicly to institutional investors and $1.5 million of taxable notes placed with affiliates of Forefront Living Plano. It will help fund the acquisition of an 18-acre development site, the preconstruction costs of the community and the costs of issuance.
Upon completion, the community will include approximately 180 independent living units, 32 assisted living units and 24 memory care units. This was the third financing Ziegler has arranged for Forefront Living.
