Ziegler closed Josephine Caring Community’s $77.115 million Series 2025ABC bonds through the Washington State Housing Finance Commission. Josephine Caring Community is a 501(c)(3) not-for-profit corporation in Stanwood, Washington, north of Seattle, Washington. Established in 1908, Josephine owns/operates a 131-bed skilled nursing facility, a 57-unit assisted living home licensed for 65 residents, and an intergenerational child-care program licensed to serve 111 children (the Stanwood Campus).
Josephine is using a portion of the bonds to construct the Cascade Village Project, which includes a new independent living community featuring 63 one-, two- and three-bedroom apartments, two-bedroom villa homes and shared amenity spaces, set in a park-like landscape with interconnected pedestrian walkways and courtyards. The project is in Marysville, Washington, approximately 12 miles from the existing Stanwood Campus. Both the Stanwood Campus and the project comprise the Obligated Group. Residents of the project will enter a “Type A” life care agreement and receive priority access and services provided at the Stanwood Campus when needed.
This transaction marks the corporation’s second financing with Ziegler. The bonds are not rated and structured with short-term fixed-rate Series B and C bonds expected to be repaid at approximately 75% occupancy, and long-term fixed-rate Series A bonds amortizing over 35 years resulting in level annual debt service payments through July 1, 2060. The 2025A bonds are subject to optional redemption on July 1, 2032, at 103, declining to par in 2035.
Proceeds of the bonds will be used to fund the project, refinance a taxable obligation of the borrower, fund a debt service reserve fund for the bonds, pay capitalized interest on the bonds for a period of 27 months, and pay certain costs of issuing the bonds.
