In the thawing of nonprofit CCRC financing for new construction, Zielger announced Thursday the closing of $190 million in unrated, tax-exempt fixed-rate Series 2013 Bond issue for nonprofit the Arlington of Naples.
The Arlington of Naples was incorporated in 2008 for the purpose of developing, owner and operating a non-for-profit Type B CCRC in an area of Florida where there had not been a new CCRC in nearly 30 years, according to Ziegler. Its location on 39 acres of the Lely Resort in Naples, Florida, places it among a 3,000-acre luxury community including eight neighborhoods and three golf courses in addition to other amenities.
New construction financing for the non-profit CCRC sector nearly dried up following the housing downturn and has been slower to come back than other property types in senior living.
“The NFP space has been thawed and we just came off another year of $1.75 billion of capital raised across 56 financings (split between the fixed rate market and the bank market),” said Dan Hermann, head of investment banking for Ziegler. “The market for larger new campuses recovered the slowest. This is our 11th new campus financing since the recession and we have done more than 20 other large expansions and repositionings.”
The post-recession environment looks positive, he continued.
“Now that we are five years later from the bottom of the recession, the response from investors is positive for properly structured new community financings which involves good sponsors, good markets, appropriate forecasted financial standing and an appropriate amount of credit support.”
Plans for the campus, which is being introduced by Lutheran Life Communities, ranked no. 54 on the 2013 LeadingAge Ziegler 100, include a full continuum of care spanning 132 independent living apartments; 31 independent living villas; 42 assisted living units; 37 memory care support units; and 44 skilled nursing beds.
Square footage of the community and anticipated around 582,000 square feet including parking. The community’s entry-fee-based independent living units were nearly 82% pre-sold as of the time of bond pricing.
“Ziegler is grateful to have had the opportunity to serve our friends at Lutheran Life Communities once again, said Steve Johnson, Managing Director in Ziegler’s Senior Living practice. “From our first financing for the Lutheran Home in 1953 to this most recent transaction for The Arlington of Naples, Ziegler has been pleased to be a partner in their organizational growth for more than sixty years.”
Written by Elizabeth Ecker