Ziegler Arranges $143M Financing for Florida Seniors Community

November 21, 2011
By Barbra Murray, Contributing Editor

Specialty investment bank Ziegler has helped Greystone Communities take a big step forward with the development of The Terraces at Bonita Springs, a continuing care retirement community in Bonita Springs, Fla., with the closing of an approximately $143.2 million issue. Ziegler acted as the sole manager on the non-rated, fixed-rate issue.

The Terraces will span a 20-acre site located roughly 15 miles north of Naples and 25 miles south of Fort Myers. The CCRC will be managed by SantaFe Senior Living and will offer 144 independent living apartments, 49 assisted living apartments, 18 memory support and assisted living units and 40 private nursing beds. Construction of the property just got underway.

Alachua County Health Facilities Authority issued the Series 2011A and the Series 2011B bonds — valued at a respective $84 million and $59.2 million and due November 15 — and The Bank of New York Mellon Trust Company N.A. served as the bond trustee.

“The completion of The Terraces financing can be attributed to a committed sponsor, a well-conceived development plan in a strong market area and an experienced, dedicated working group, the combination of which are the elements observed in successful retirement communities throughout the country,” Rich Scanlon, managing director in Ziegler’s Senior Living practice, said.

Nationally, the seniors housing sector has been on the upswing. In the third quarter, the average occupancy rate for independent and senior living property types continued to climb for the sixth consecutive quarter, reaching an 88.1 percent occupancy level, which marked a 20 basis point increase from the second quarter. “With occupancy having risen each quarter since the first quarter of 2010, it is evident that we are past the bottom and are clearly in the recovery stage,” said Michael Hargrave, vice president with the Investment Center for the Seniors Housing & Care Industry’s NIC MAP Data and Analysis Service.

As for CCRCs, the combination of limited supply growth and increasing demand is expected to push the average occupancy rate up to 88.9 percent by year’s end, as per a report by Marcus & Millichap Real Estate Investment Services.

The bonds for The Terraces marks Ziegler’s third participation in financing for CCRCs within the last three weeks. Last week, the investment bank announced it had served as co-senior manager on a $36 million financing package for Christian Living Communities’ Clermont Park in Denver. And in late October, Ziegler closed a $ 62.2 million fixed-rate issue for the repositioning and expansion of Episcopal Senior Communities’ Spring Lake Village in Santa Rosa, Calif.