dSpecialty investment bank Ziegler announced on Thursday, Dec. 15 the successful closing of a $28,295,000 non-rated bond issue for MRC Crestview’s Bryan, Tex. retirement community.
MRC Crestview, formed in 1962, is a Texas non-profit corporation that became part of Methodist Retirement Communities (MRC), a Texas non-profit system that gives management and support services to MRC Crestview in addition to other affiliated entities.
The MRC system ranks #88 on LeadingAge’s Ziegler 100, a list of the largest not-for-profit senior living providers in the nation.
“Crestview has had a 40 year reputation for providing quality senior services in the Bryan/College Station market,” said Richard Scanion, managing director in Ziegler’s Senior Living practice, in a statement. “The influence of a new management team at MRC is clearly seen on this complex repositioning which will improve the quality and breadth of services that MRC will be able to provide in that market area.”
Greystone Communities has been hired to help provide development services toward implementing a repositioning of the campus in a two-phased approach. Phase I, funded with a Ziegler-underwritten Series 2010 Bond issue, consisted of constructing an assisted living facility that has 48 assisted living units and 18 memory care units, as well as a 48-unit skilled nursing health center.
Phase II will be funded with the proceeds of the Series 2011 bonds, and will include demolishing the existing Crestview Retirement Community and constructing 92 entrance fee-based independent living units and additional common areas for residents.
The new independent living units are 100% pre-sold with a waiting list of more than 40 persons at the time of pricing of the Series 2011 Bonds, the proceeds of which will also be used to fund debt service reserve funds for the bonds, fund capitalized interest for 22 months, and pay a portion of the costs of issuance.
The Series 2011 Bonds consist of $11.5 million in temporary debt that will be redeemed with initial entrance fees after establishing reserves, and about $16.8 million in permanent debt that will amortize with the Series 2010 Bonds to provide aggregate level annual debt service.
Written by Alyssa Gerace