Three years ago, Westminster Canterbury Richmond announced plans for a Vibrancy! Project at their 809-unit life plan community located in Richmond, Virginia. Currently, the community has 487 independent living units, 164 assisted living units and 158 nursing units. We assume occupancy is pretty good because they will be adding an additional118 IL units. It originally opened in 1975 as one of the first LPC’s in Virginia and has become of the largest not-for-profit single-site communities in the country.
There are two parts to the expansion. In what will be known as the Vitality Tower, 42 new IL units will be built atop a new fitness and wellness center. This center will attach directly to a new indoor pool and include numerous exercise rooms and a connecting gallery to the campus’s main building.
The second part of the project will include 76 new IL units to be located in four hybrid apartment buildings, organized around a common green space and with a new clubhouse that will have both indoor and outdoor event space.
The $193.2 million arranged by Ziegler includes $98.47 million of fixed rate bond debt with a weighted average maturity of 25.3 years and an overall yield to maturity on 4.36%, and $25 million of direct bank draw-down bonds placed with Atlantic Union Public Finance, Inc. with a full-term commitment of 20 years priced at 79% of Term SOFR plus 0.75%. SOFR stands for Secured Overnight Financing Rate.
The final tranche will be $70 million of direct bank draw-down bonds also placed directly with Atlantic Union Public Finance in a six-year commitment at 79% of Term SOFR plus 0.75%. This last piece is expected to be paid off with the proceeds from the initial entrance fees for the new units. The bonds come in at $1.6 million per unit, but that assumes no allocation for all the new common space being built.
Tommy Brewer of Ziegler led the financing, Jones Lang LaSalle is the project manager, SFCS Inc. is the architect, Gilbane Building Company and Henderson, Inc. are the general contractors, and CliftonLarsonAllen was the feasibility consultant.
