Ziegler announced the closing of HutsonWood at Spring Hill, Inc.’s Series 2024 revenue bond anticipation notes. The notes are comprised of $14.67 million of Series 2024A tax-exempt notes sold publicly to institutional investors and $3.0 million of Series 2024B subordinate taxable notes purchased by an affiliate of the borrower.
HutsonWood (dba Belle Springs), is a Tennessee not-for-profit organization that will use the proceeds of the notes to acquire approximately 20 acres of land and to finance certain pre-construction development costs related to an expansion and repositioning of an existing skilled nursing and assisted living community located in Spring Hill, Tennessee. Emerald Spring Hill, Inc. (dba The Reserve at Spring Hill), a Tennessee not-for-profit organization, currently operates the existing community located approximately 30 miles south of Nashville.
Upon completion of construction, the Spring Hill project will provide a full continuum of care for residents on an approximately 35-acre campus consisting of 172 independent living units, 24 assisted living units, 24 memory care units and the existing 68 skilled nursing beds. The new independent living units will consist of a mix of 112 apartments, 18 duplexes and 42 cottages. Greystone is serving as the development consultant.
It is currently anticipated that funding for the construction and other related costs will consist of approximately $186.82 million of a combination of tax-exempt and taxable revenue bonds to be issued in 2026. The plan of finance is also expected to incorporate temporary debt to be redeemed with a portion of initial entrance fees from independent living residents after establishing certain reserves and working capital amounts. The long-term debt will amortize over the anticipated economic life of the community.
This is the first step for HutsonWood as they transition to providing services in Spring Hill under an entrance fee-based, CCRC model. Belle Springs faces limited CCRC competition and is in an attractive, growing primary market area.
