Ziegler closed a bond financing and taxable term loan to finance EveryAge’s acquisition of Providence Place, a rental CCRC in High Point, North Carolina. EveryAge, formerly United Church Homes and Services, is a not-for-profit corporation organized in 1961 that owns nearly 1,000 units. With the acquisition and an upcoming development project, its unit count will rise above 1,400. EveryAge also provides management and certain other administrative services to seven corporations operating 252 housing units for low-income seniors (HUD 202 communities) and two PACE programs.
The organization is currently developing a 95-unit independent living community located in Hickory, North Carolina. Called BellaAge Hickory, it is expected to be completed in the first quarter of 2025 and available for occupancy in April 2025.
Also, the EveryAge Obligated Group entered into an asset purchase agreement to acquire Providence Place, an existing, not-for-profit CCRC as well as two adjacent commercial properties. Located about 10 miles from EveryAge’s Piedmont Crossing community, Providence Place currently operates 379 units/beds, comprising 160 independent living units, 58 assisted living beds, 32 memory care assisted living beds and 129 skilled nursing beds.
Based upon limiting provisions of the IRS Code, the combined construction and acquisition financing consisted of two tranches of debt. First was a $25.31 million tax-exempt fixed-rate bond series issued through the North Carolina Medical Care Commission with a weighted average maturity of 18.7 years and an overall yield to maturity of 4.69%. The bonds funded the acquisition of the assisted living and skilled nursing facilities that are eligible to be financed on a tax-exempt basis.
There was also a taxable term loan totaling $23.4 million used to fund the acquisition of the independent living and commercial properties that do not qualify for tax-exempt financing. The loan was placed directly with Huntington National Bank and included a 10-year commitment. To help mitigate interest rate risk, the EveryAge Obligated Group entered a 10-year swap for most of the loan amount at an all-in taxable rate of 5.448%.
