Senior Housing Finance Activity: Ziegler, HJ Sims

Ziegler Closes $122.45 Million Financing for Life Plan Community in Missouri 

Chicago-based specialty investment bank Ziegler recently announced the successful closing of $122.45 million un fixed-rate, tax-exempt Series 2017A financing for Ashfield Active Living and Wellness Communities, Inc., dba Aberdeen Heights, a nonprofit corporation based in Missouri.

Aberdeen Heights, a life plan community in Kirkwood, Missouri, currently has 243 independent living apartments, 30 assisted living units, 15 memory support suites and 30 skilled nursing beds. Ashfield is a controlled affiliate of Presbyterian Manors of Mid-America, Inc. (PMMA), a not-for-profit corporation based in Kansas.


Aberdeen Heights is co-managed by Greystone and PMMA.

Proceeds from the 2017A bonds will be utilized to advance refund the Series 2010A bonds, fund a debt service reserve fund, and pay costs of issuance. The bonds were structured to provide level net debt service, and include serial bonds from 2018 – 2032 and 2042, a 2037 term bond, 2042 term bond, and 2050 term bond.

“With this financing, Aberdeen Heights generated over $18M in net present value savings or approximately 17% of par amount of bonds refunded. Investors responded favorably to the experienced management team, the community’s high occupancy levels, the solid operating performance, and the positive credit profile as evidenced by a stable ‘BB’ rating from Fitch Ratings,” Will Carney, managing director in Ziegler’s senior living practice, said in a press release.


Harborview Closes $7 Million Assisted Living Refinancing in Georgia

Commercial real estate finance, advisory and equity firm Harborview Capital Partners recently arranged a $7 million Fannie Mae cash-out refinance loan for a 69-unit assisted living community in central Georgia.

The seven-year loan for a repeat, undisclosed client of Harborview has a competitive interest rate and a 30-year amortization. Harborview’s Jeffrey Fuchs originated the transaction.

Monticello Provides $69.3 Million to Massachusetts Assisted Living and Skilled Nursing Portfolio

Monticello Asset Management, LLC recently announced that one of Monticello’s investment vehicles originated a multi-asset loan comprising of $69.3 million in first lien debt financing to a four-property, 616-bed assisted living and skilled nursing portfolio in Massachusetts.

The mortgagors are using the funds to purchase the Massachusetts portfolio. The borrowers intend to improve operating efficiencies and make significant savings throughout the portfolio by leveraging their network of operating experience and corporate services. Additionally, the borrowers expect to receive a Department of Housing and Urban Development (HUD) guaranteed mortgage within the Bridge-to-HUD term.

The borrowers’ principals have more than 15 years of experience operating and owning skilled nursing facilities. 

Ziegler Closes $232.35 Million Financing for Ventana by Buckner

Chicago-based specialty investment bank Ziegler recently announced the successful closing of the $232,345,000 fixed-rate, tax-exempt Series 2017 financing for Texas-based nonprofit corporation Buckner Senior Living, Inc.

Buckner Senior Living was established for the purpose of construction, operation and ownership of an entrance fee-based senior living community in Dallas called Ventana by Buckner. The community is expected to have 189 independent living units, 38 assisted living units, 26 memory support assisted living units, and 72 skilled nursing beds. 

The community’s levels of care will be located in a pair of 12-story towers. 

Greenbrier Development, LLC is serving as the marketing agent and the development consultant for the community, which will be managed by Buckner Retirement Services, Inc. 

Proceeds from the Series 2017 Bonds will be utilized to finance the community’s construction and development; repay interim debt utilized to fund the community’s pre-development costs; fund 31 months of interest; fund separate accounts of the debt service reserve fund for each series of bonds; and pay the costs of issuance.

HJ Sims Closes $6.25 Million Pre-Development Loan for Life Plan Community Expansion

Privately held investment bank and wealth management firm HJ Sims recently announced the successful completion of a $6.25 million pre-development loan for Village Shalom, a life plan community in Overland Park, Kansas.

Village Shalom plans to replace its current memory care units with a new state-of-the-art memory care building, among other things. The total cost of the expansion project is expected to be between $65 million and $70 million.

Village Shalom anticipates to incur pre-development costs of approximately $6,285,000, which will fund marketing associated with pre-sale of new independent living apartments and development activities. To fund these expenses, Village Shalom required a pre-development loan of $6.25 million, with the balance funded from an equity contribution of about $35,000. 

HJ Sims closed the $6.25 million pre-development loan in April. The loan was structured as tax-exempt bonds issued via the Kansas Development Finance Authority.

Written by Mary Kate Nelson

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