A CCRC in Southern Pines, North Carolina, near the world-famous Pinehurst Golf Course, is embarking on an independent living expansion project with the help of bond financing arranged by Ziegler. Currently comprising 150 IL units, 42 assisted living units and 32 skilled nursing beds, Penick Village will add 44 IL units (with underbuilding parking), a new 5,000 square-foot wellness center and renovations to the healthcare center. Since beginning pre-sales in June 2024, the expansion has successfully pre-sold 39 of the 44 (88.6%) new units with a 10% deposit.
Two tranches of bonds will finance the project, totaling $73.295 million. The Series A long-term bonds totaled $54.87 million and came with a final maturity in 2054 using a debt service structure that results in a weighted average maturity of 20.21 years and a blended average yield to maturity of 5.37%. The Series B Tax‑Exempt Mandatory Paydown Securities SM totaled $18.425 million and will be repaid with initial entrance fees from the new units. They were structured with three sub-series of bonds based upon expected redemption, resulting in a weighted average maturity of 2.15 years with coupons ranging from 4.25% to 4.75% (blended average yield to maturity of 4.42%).
