Ziegler successfully closed Larksfield Place’s $45.205 million Series 2025 bonds, issued through the City of Wichita, Kansas. Larksfield is a not-for-profit, single-site CCRC founded in 1988 in northeast Wichita. The 67-acre campus includes 22 independent living villas, 164 independent living apartments, 62 assisted living apartments, 10 memory care apartments and 80 private skilled nursing suites. Residents are offered an 80% refundable “Type C” entrance fee contract.
Larksfield is significantly expanding its campus with the development of a four-story, 48-apartment independent living building known as “Larksfield Landing,” featuring under-building enclosed parking alongside additional parking across campus. As of closing, Larksfield has presold 37 of the 48 new apartments.
This transaction marks Larksfield’s fourth financing with Ziegler since 1994. The 2025 Bonds are non-rated and consist of a mix of long-term fixed rate bonds and short-term variable rate bonds. The $32.455 million 2025A tax-exempt fixed rate bonds mature in 2060 and amortize alongside Larksfield’s existing debt, resulting in level annual debt service through maturity. The 2025A bonds are subject to optional redemption on June 1, 2032, at 103%, declining to par by 2035. The $12.75 million Series 2025B short-term bonds are expected to be repaid from entrance fees generated by first-generation residents, at approximately 77% occupancy. The Series 2025B bonds are structured with a drawdown feature that reduces interest expense during construction and bear a variable interest rate.
Proceeds of the Series 2025 bonds will be used to fund construction and related project costs of Larksfield Landing, fund interest on the bonds for a period of 27 months, fund a deposit to the Master Reserve Fund for the 2025A bonds and pay costs of issuance. The Series 2025A bonds were well received in the public bond market, attracting participation from 13 institutional and local Kansas retail investor accounts. The Series 2025B bonds were purchased directly by Old National Bank, Larksfield’s existing bank partner on its outstanding Series 2021 bonds.
