Ziegler closed a large bond financing for The Forest at Duke, a not-for-profit CCRC in Durham, North Carolina. The campus, located on approximately 47 acres just south of Duke University, received $95.57 million in funding, split between a $66.07 million Series 2022A1 long-term bond and a $29.5 million Series 2022A2 intermediate-term bond. Both are draw-down, bank-held bonds issued through the North Carolina Medical Care Commission, with the A1 piece featuring a 15-year commitment and accreting swap and the A2 piece being repaid with initial entrance fees from an expansion project.
First opened to residents in 1992, the CCRC currently serves over 360 residents across 154 apartments, 81 cottages (235 total independent living units), 32 assisted living units and 58 licensed skilled nursing beds (four beds are certified for Medicare, none are certified for Medicaid).
The Forest at Duke adopted a strategic plan that included two key phases. Phase I, which was financed by Ziegler with public fixed rate bonds in 2021, included a 90-unit health and wellness center that replaced the existing health center on campus. With Phase I nearing completion, the community is now working on Phase II, which includes a 71 independent living unit building. This new building will be located on the area of the campus where the original health center was located. At the time of closing, over 95% of the new independent living units were pre-sold, so the expansion appears fully justified.
