Bridgeport, Connecticut-based People’s United Bank headed upstate to refinance a CCRC in Bloomfield, just north of Hartford. Duncaster, Inc. opened in 1984 as a not-for-profit CCRC that now includes 193 independent living units, 19 assisted living units, 24 memory care units and 60 skilled nursing beds. The pandemic led to a drop in occupancy (who didn’t experience that?) and slower IL unit sales. But the property did receive a healthy amount of stimulus funds to offset the drop in revenues, and recent IL unit sales reportedly have been strong.
There was about $9.2 million of maturing bond debt held by Citizens Bank on the property, plus around $3 million of capital expenditures to reimburse. Keith Robertson of Ziegler was tasked with arranging the refinance, ultimately selecting People’s United Bank through a competitive RFP process. Matt Huber and David Canestri provided the new $12.45 million tax-exempt private placement bond series that came with a 10-year maturity and 12-year amortization. Issued through CHEFA (Connecticut Health and Educational Facilities Authority), the bonds replaced the prior bond debt and covered the capex costs, plus certain costs of issuance.
