Ziegler announced the pricing of Horizon House’s $600.0 million Series 2025AB bonds through the Washington State Housing Finance Commission. The bonds are set to close in December. This financing is Horizon House’s largest senior living financing completed to date.
Horizon House is a Washington 501(c)(3) organization that was established in 1961 to develop, own and operate seniors housing communities. Today, the organization owns and operates a CCRC in Seattle, Washington, that offers 377 independent living apartments and 90 assisted living apartments including memory care services.
The bonds will be used to fund the new West Tower, a 33-story independent living high-rise consisting of 202 apartments, as well as significant reinvestment throughout the Horizon House campus. This West Tower will replace the currently existing West Wing built in the 1980s, increasing the independent living offerings on the campus. Apartment sizes will range from approximately 861 to 2,206 square feet, with 15 distinct floor plans in one-and two-bedroom configurations. The West Tower will provide purpose-built senior living, which is currently relatively limited in Seattle, especially in its urban core.
The primary objectives of the organization in developing the West Tower are to increase the number of modern, marketable units and create an economic engine to help support the future sustainability of Horizon House. The new West Tower will also include new common areas and amenities for all residents of Horizon House. These will include new and renovated underground parking, parkview terraces, resident gardens, a garden lounge, multipurpose event spaces and new “rooftop” dining and lounge on the 33rd floor.
In addition to funding the West Tower, proceeds of the bonds will be used to fund various master plan improvements, refinance the Series 2022 loan, fund debt service reserve funds, pay capitalized interest on the bonds for a period of 46 months, and pay certain costs of issuing the bonds.
This financing marks Ziegler’s third with Horizon House. Sawgrass Partners served as development consultant and were integral to the long-range planning effort. The bonds are exempt from federal income tax and are structured with short-term fixed-rate Series B bonds (TEMPSSM) expected to be repaid at approximately 80% occupancy, and long-term fixed-rate Series A bonds amortizing over 36 years through January 1, 2061. The 2025A bonds are issued at parity with the existing 2017 bonds and amortized to result in level aggregate annual debt service. The 2025A bonds are subject to optional redemption on January 1, 2036, at par.
