Ziegler closed Greenwood Village South’s $27.85 million Series 2025A bonds, $7.4 million Series C-1 (TEMPSSM-50) bonds, and $10.6 million Series C-2 (TEMPSSM-85) bonds issued through the Indiana Finance Authority for the Senior Living Finance Practice. The transaction also includes $25 million of Series 2025B Bank Direct Placement bonds, which closed with the Series 2025A, C1, and C-2 bonds (together totaling $70.85 million and collectively referred to as the Series 2025 bonds).
Westminster Village Greenwood, Inc., doing business as Greenwood Village South (GVS), is an Indiana not-for-profit that owns/operates a Type-B CCRC in Greenwood, Indiana, just south of Indianapolis. The community totals 426 units, consisting of 173 independent living apartments and 80 cottages, 41 assisted living apartments, and a 132-bed skilled nursing health center. It is managed by Life Care Services, and LCS Development was the developer for its Village Flats Project.
The Series 2025 bonds will be used to expand and update the campus by adding more IL units. The intent is to build 42 new IL “hybrid” homes in three buildings on the west side of the property, combining the privacy and residential feel of a cottage with the convenience and community integration of an apartment. A new commons building with an entrance to GVS’s independent living building will also be constructed. It will feature a reception area, three multipurpose rooms, a salon, a library, a mail room, a transitional dining hall, a lounge, a wellness center, an indoor pool and natatorium and a new 280-seat auditorium. The outdoor part of the project includes pickleball and bocce ball courts, as well as a new courtyard. Total project costs are approximately $67.2 million before financing-related items.
Following an uptick in presale activity this past spring, LCSD set the goal of closing the financing before summer’s end to maximize the construction season ahead of winter conditions. Ziegler recognized the positive municipal bond market conditions present in the late summer, pricing and closing the financing in August, which enabled GVS to meet its goal.
Ziegler secured and negotiated an attractive bank credit commitment from its existing bank lender, allowing GVS to avoid a full request for proposal process. Additionally, with GVS’ historic credit strength, Ziegler recommended the pursuit of a credit rating from Fitch Ratings. The Series 2025A and 2025C bonds received a “BBB-” rating with a stable outlook, allowing the Series 2025A and 2025C bonds to be financed without a Debt Service Reserve Fund, which reduced the amount of the financing by more than $3.5 million. The Series 2025A bonds have call provisions of seven years at 103%, declining to par in 10 years. The Series 2025C bonds will be redeemed quickly with a portion of the first-generation entrance fees during the Village Flats fill-up period.
Ziegler has been working with the Greenwood Village South since the mid-1990s, and this marks the third time it has issued fixed-rate public bonds rated Fitch “BBB-” for GVS, with previous offerings occurring in 1998 and 2001.
