Ziegler announced the closing of Fairview’s $7.5 million Series 2025A bond anticipation notes (BANs) through the Connecticut Health and Education Facilities Authority. Not-for-profit Fairview has a 70-acre campus on the Groton, Connecticut waterfront, and it features several facilities providing rehabilitation services and options for independent living. Fairview currently has 164 total units consisting of 100 skilled nursing beds and 64 independent living beds.
The BANs will be used to fund predevelopment costs for a campus repositioning project with the objective of transforming the current healthcare-oriented campus into a more modern and sustainable CCRC model. As part of the project, Fairview plans to discontinue nursing operations and construct a new 175-unit independent living building with associated common areas (less four demolished units), 18 new independent living cottages, in addition to the construction of 42 assisted living apartments and 28 memory care units.
In contrast to most bond anticipation note financings, Fairview had begun collecting Priority Club deposits in October and at the time of the pricing BANs in January, had collected 220 Priority Club members. The development consultant on the project is Greystone.
The Series 2025A BANs will have a subordinated mortgage, subordinate to Fairview’s outstanding bank loan with Chelsea Groton Bank. The proceeds of the Chelsea Groton loan were used to partially fund the initial predevelopment costs of the project. The Series 2025A BANs are structured as a capital appreciation bond which will accrue interest until the permanent financing in late 2026 at which point all principal and accrued interest would be paid back in full.
