Ziegler announced the closing of a private placement of subordinate senior living revenue bonds (the Series 2023 bonds) on behalf of Convivial Life, Inc., a Florida not-for-profit organization.
Jacaranda Trace, owned by Convivial Life, is part of a multi-phase master developed campus originally built in 1998 consisting of 436 independent living, 19 assisted living and 36 memory care units on approximately 33 acres in Venice, Florida. In June 2022, the borrower used a portion of the proceeds of the issuance of Series 2022 bonds in the total amount of $96,870,000 to acquire the majority of the community. The acquisition also included eight undeveloped villa lots and an approximately 2.2-acre parcel for potential future development. Of the 436 independent living units, 240 were acquired at closing of the Series 2022 bonds. The remaining 196 were owned by third parties as condominium owned units with the borrower seeking to acquire additional units. Since acquiring the community, the borrower has purchased an additional six villas. LifeStar Living, Inc. served as the acquisition consultant to the borrower and was retained to serve as the manager of the community.
The non-rated tax-exempt financing totaled $10,500,000 and consisted of a single term bond maturing in 2057. Proceeds of the Series 2023 bonds will be used to reimburse the borrower for the purchase of the villas and various improvements made to the community since its acquisition. The Series 2023 bonds are subordinate to the taxable Series 2022A bonds issued as part of acquiring the community in 2022. Ziegler served as placement agent for the Series 2023 bonds.
The issuance of the Series 2023 bonds represents the third bond issuance that Ziegler has completed for Convivial and LifeStar. In addition to the financing of the acquisition of the community above, Ziegler served as the underwriter and placement agent for a non-rated financing totaling $39,325,000 in January 2022. Proceeds of the later issue were used to fund the acquisition of The Cabana at Jensen Dunes, a 126-unit community offering assisted living and memory care services located in Jensen Beach, Florida, and 11+ acres for future expansion.
Ziegler also announced the successful closing of ACTS Retirement-Life Communities, Inc. Obligated Group’s $68,530,000 Series 2023 tax-exempt bonds. The $10,315,000 of Series 2023A tax-exempt bonds were issued through the Montgomery County Industrial Development Authority and the $58,215,000 of Series 2023B tax-exempt bonds were issued through the Delaware Economic Development Authority (together, the “Series 2023 bonds”).
The proceeds of the Series 2023 bonds will be used to reimburse a line of credit in the amount of $55 million for prior project costs in Delaware and to fund future project costs of $13 million in both Delaware and Pennsylvania. The project costs funded with the bonds and the line of credit include various upgrades and renovations to residential and healthcare units and common areas.
