A long-time CCRC client of Ziegler’s is embarking on an expansion project with revenue bonds underwritten by the specialty investment bank. La Posada was incorporated in 1996 to acquire the CCRC known as La Posada at Park Centre in Green Valley, Arizona. Originally built in 1987, Park Centre has since grown to include 490 independent living units, 51 free-standing homes and 135 assisted living units. However, ownership wished to expand to a second location in Oro Valley, Arizona (Tucson MSA), with a plan to build the community in phases. The first phase started in October 2022 and will include 166 independent living units with campus common areas. Phase II will commence after stabilization of Phase I and will have 24 assisted living and 24 memory care units.
To fund construction of Phase I and refinance an outstanding bank loan, Ziegler arranged Series 2022A bonds, which were tax-exempt, fixed-rate bonds maturing in 2057, and Series 2022B-1, B-2 and B-3 bonds, which are short-term TEMPS-85SM, TEMPS-70SM and TEMPS-50SM bonds, expected to be redeemed at 85%, 70% and 50% occupancy of Phase I, respectively. La Posada will also make an equity contribution to fund the project. Proceeds from the sale of the bonds will also pay interest on the bonds for approximately 35 months.
