Wisconsin-based Public Finance Authority plans to issue $132.4 million in bonds to finance a retirement community in Potomac, Maryland. The revenue bonds will finance the acquisition, construction and outfitting of the ISF – Potomac Senior Living rental retirement community. The project will feature approximately 68 assisted living units and 26 memory care beds.
Proceeds from the bond sale will also be used to fund a debt service reserve, capitalized interest for about 31 months and cover working capital and issuance costs. The offering is structured in two tranches: $128.4 million in Senior Series 2025A bonds, which are tax-exempt, and $4 million in Senior Series 2025B bonds, which are federally taxable. Maturity dates and interest rates for the bonds weren’t available. The bonds are payable from revenues of the seniors housing community but are not rated.
A feasibility study included in the statement forecasts total operating revenue for the facility to reach $22.9 million by 2030, with income available for debt service projected at $12.6 million. Annual debt service for the senior bonds is forecast at $9.5 million for that year. HJ Sims is the underwriter.
