The continuing care retirement community sector continues to grow with another project recently securing financing after achieving its pre-sale benchmark.
The Terraces of Boise announced it has secured $103.2 million in municipal bond sales to close financing for a new $53 million Life Care community in Boise, Idaho. More than 70% of the planned residences have been reserved.
Ziegler issued $103,185,000 of unrated, fixed-rate Series 2014 Bonds for The Terraces of Boise, sponsored by Cornerstone Affiliates. Cornerstone is the sole member of Boise Retirement Community, dba The Terraces, and is also affiliated with American Baptist Homes of the West (ABHOW). The closing follows another recent deal to finance a new construction CCRC in Florida after a longstanding freeze in new development in the sector.
“Post-crisis the market for new retirement communities has been somewhat stressed due to housing market concerns. As the economy returns to more normal patterns, senior living providers have been more actively looking to expand and enter new markets,” says a Ziegler banker who worked on the deal.
The successful $190 million pricing of both the Arlington at Naples and the Terraces of Boise attest to the vibrancy of interest in housing and care for the expanding senior living market, she said.
“We’re all very excited about our progress in bringing this new senior lifestyle to Boise,” said Paul Fredericks, director of marketing for The Terraces of Boise. “We’ve reached yet another milestone, and with construction underway and site prep work nearly finished, we’re one step closer to being able to serve area seniors in a community they’ve been highly anticipating.”
The community will have 149 residential living apartments, 12 residential living duplex apartments, 40 residential-style assisted living apartments, 24 memory care suites, and three one-story cottage-style buildings housing 48 private skilled nursing rooms. The Terraces will also feature a fitness center, multiple dining venues, and an activity calendar.
Around $53 million of the bond proceeds will go toward the hard cost of the new community, with another approximately $30 million needed for “soft costs,” including design, development, marketing, and interior finishes. The Terraces of Boise has hired a local general contractor, PETRA, along with AG Architecture and Marlo Interiors.
The remainder of the bond proceeds will be used to cover debt service reserve funds, interest, and the cost of issuance.
“We are very pleased to support Cornerstone’s growth into a new western region market, both as a seed capital investor and as bond underwriter. This community will be Boise’s first life care, entrance fee retirement lifestyle alternative, and we know the Boise community is very excited to welcome the Terraces,” said Mary Muñoz, Managing Director of Ziegler’s Senior Living practice.
Written by Alyssa Gerace