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Ziegler closes financing for Greystone-supported Presbyterian Manors

Specialty investment bank Ziegler has announced the successful closing of the $30,800,000 Series 2014 Bond financing for Presbyterian Manors, Inc., a long-standing Ziegler client. Presbyterian Manors, Inc. (PMI) was established in 1948, as United Presbyterian Foundation of Kansas (UPFK) as a not for profit corporation. The Series 2014 Bonds were issued for the benefit of an obligated group consisting of PMI and Aberdeen Village, Inc. (AVI), a senior living community located in Olathe, Kansas.

PMI and its parent, Presbyterian Manors of Mid-America, Inc. (PMMA) are headquartered in Wichita, Kansas. PMI and AVI own a total of 17 senior living communities throughout Kansas and Missouri, comprised of 939 nursing beds, 514 assisted living units, and 596 independent living units, all of which are managed by PMMA. In addition, PMI is affiliated with Aberdeen Heights, a new senior living campus located in St. Louis County. Aberdeen Heights and PMMA are not members of the PMI Obligated Group with respect to the Series 2014 Bonds.

The 2014 Bonds totaling $30,800,000 consist of $17,400,000 of fixed-rate Series 2014A Bonds, $5,550,000 of TEMPS-80 Series 2014B-1 Bonds, $4,600,000 of TEMPS-50 Series 2014B-2 Bonds, and $3,250,000 of taxable Series 2014C Bonds. The Series 2014A Bonds were issued as permanent debt, i.e., debt that will be amortized on a level debt service basis during 2019-2049, with a 35-year final maturity. The TEMPS-50, TEMPS-80 and taxable bonds we issued as temporary debt – the debt that will be repaid using entrance fees during the initial fill-up period of the new project described below. The temporary debt was sized so that it can be fully repaid from initial entrance fees once the project reaches 80% occupancy. The taxable bonds were needed for a variety of items including a portion of the project costs, certain issuance costs, and a portion of the funded interest.

The Series 2014 Bonds are being issued to: 1) finance the development of the Phase II addition of 90 Independent Living Units; 2) purchase a new corporate office building and provide for certain renovations and FF&E; 3) fund a Debt Service Reserve Fund for each series of bonds; 4) fund interest on the Phase II project for a period of 19.5 months; 5) fund interest on the Corporate Office Building for a period of 12 months; and 6) pay certain costs of issuance related to the Series 2014 Bonds.

The 2014 Project includes the second phase of the redevelopment of PMI’s Wichita community, as well as the acquisition and renovation of a new corporate office building. The Phase II Project includes the demolition of the former assisted living center and health center and the construction of a building which is expected to include 90 new independent living apartments on the site of the former assisted living center and health center. There will be several models of the new independent living apartments. Over 75% of the independent living units were pre-sold at the time the financing closed. Greystone is serving as co-developer with PMI with respect to the Phase I and Phase II projects. Financing for the first phase of redevelopment at the Wichita campus occurred in 2013 and upon completion the project will reposition the assisted living and nursing service lines while adding memory care units. Construction on these projects is anticipated to be completed in November 2014. PMI has embarked on the redevelopment of its Wichita campus in order to offer superior facilities and services to its residents while positioning itself to compete successfully for years to come. With over 65 years in the senior living industry, PMI has an excellent reputation and name recognition throughout Missouri and Kansas.

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Industry leaders optimistic on growth at Ziegler conference

The annual Ziegler Senior Living Finance + Strategy Conference reaffirmed the positive growth outlooks in non-profit senior living. The industry’s leading minds remain confident as organizations increasingly look to proactively plot growth strategies.

Mark Andrews presents at Ziegler SLF + S 2014.

Mark Andrews presents at Ziegler SLF + S 2014.

Greystone is actively helping many organizations expand through both new development and extending existing campuses.  At the Ziegler conference, Greystone President and COO Mark Andrews shared how several Greystone communities – Terraces of Los AltosTerraces at BoiseEast Ridge and more – are dong just that. The session addressed emerging trends in the sponsorship, development, and financing of growth projects.

In its 17th year, the SLF + S conference welcomed over 550 attendees including senior living executives, business firm professionals, bankers and investors.

The Buckingham

The Buckingham Announces Expansion with Greystone

The Buckingham, Houston’s premier senior living community, will soon bring as many as 80 new jobs to the area and provide resort-style living for nearly 200 additional residents. The community is announcing an expansion that will add 187 total residences to its Memorial neighborhood location. The Buckingham, a Senior Quality Lifestyles Corporation (SQLC) sponsored community, currently has 204 independent living apartments, 43 assisted living suites, 16 memory care residences and 60 private skilled nursing rooms.

The Buckingham acquired six additional acres to accommodate the $56 million project and will add 104 independent living apartment homes, 33 assisted living suites, 18 memory care residences and 32 private skilled nursing rooms. The new IL apartment homes will be offered in one-, two- and three-bedroom floor plans.

Irving, Texas-based Greystone will be the development consultant of the expansion project.

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The Buckingham

In discussing the expansion, Charles B. Brewer, chairman of the board of SQLC, said, “The Buckingham opened in 2005 and has since set the standard for senior living in Houston. Because of its fine reputation, The Buckingham has reached full capacity and is now poised to enter the expansion phase so that we can now offer our exceptional services to more people. The country is aging at a rapid pace, and we want to be able to offer our care to as many people as possible.”

“This is an exciting opportunity for us to further complement our community,” said Julie Fenske, executive director of The Buckingham. “Additional staff members, enhancements to our health care services at the Plaza, and enrichments to our common spaces are just a few of the positive effects of the growth to come. Residents of the newest part of the campus will enjoy the camaraderie our community offers as well as concierge-level services and resort-style amenities for which The Buckingham is known. And of course, each new resident will also receive the benefits of our comprehensive, all-inclusive Life Care lifestyle.”

Dallas-based D2 architect firm will design the expansion. Other project partners include Andres Construction, Kimley-Horn, Bridget Bohacz & Associates and Ziegler.

Construction is expected to begin 3rd quarter 2015, and the expansion is scheduled for completion in 2017.

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Recap and Slides: Reinventing for Relevance

Greystone and Ziegler recently teamed up at the LeadingAge Ohio Expo to present on reinventing for relevance. The climate for senior living grows more positive by the day. As opportunities emerge, we are experiencing the following trends:

  • The for-profit sector is rapidly impacting supply and demand in local markets
  • The bond market is turning the corner, credit ratings are increasing and the bank debt market remains attractive
  • Conditions are favorable for financing growth and investment in your organization Communities are increasingly seeking strategic planning support for growth and change. While the primary growth drivers remain expansion and redevelopment of existing campuses, new campuses are starting again as well
  • Communities can diversity by creating new, smaller business lines with less concentration risk – widen the customers you can serve while reducing your reliance on health care
  • When reinventing your campus, create a wow factor to help raise the bar on what residents can expect from your community

If you would like to view the full presentation, email us.

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Oliver North Visits the Stayton

As part of its Red Carpet Speaker Series, The Stayton at Museum Way in Ft. Worth, Texas, recently welcomed former U.S. Lt. Col Oliver North. He discussed “America in the New Millennium,” touching on the United States’ role in the world – militarily, economically and politically. He also held a book signing for attendees.

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Known for being a combat-decorated U.S. Marine, Col. North is also a small business founder, inventor with three U.S. patents, syndicated columnist, No. 1 best-selling author and the host of “War Stories” on Fox News Channel. His latest book, Counterfeit Lies, was released in June.

Col. North served 22 years as a Marine officer after graduating from the U.S. Naval Academy in Annapolis, Maryland. He was awarded the Silver Star for his service in combat, the Bronze Star for valor and two Purple Hearts for wounds in action. From 1983-1986, he served as the U.S. government’s counter-terrorism coordinator as part of the National Security Council staff in the Reagan administration.

Pictures courtesy of Gittings.

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Capitalizing on Growth Opportunities

The 17th annual Ziegler Senior Living Finance + Strategy Conference gets underway next week in Asheville, North Carolina. On Sept. 11, Greystone President and COO Mark Andrews will present on the “New Campus Development and Significant Expansions” panel.

A familiar topic for Greystone, and something we touched on during our Pacific Northwest workshop with Ziegler, new development and expansion both continue to trend upward. Mark will lend his insights by citing the ongoing work at Greystone projects like the Terraces of Los Altos, Terraces at Boise, East Ridge and more.

The session will address emerging trends in the sponsorship, development, and financing of new campus CCRCs and those looking to undertake significant expansions to existing CCRCs. Attendees will get a sense for the current pace of growth in the not-for-profit sector, the current types of new construction and development, and how to make new development and expansion projects successful.

For more information on the conference, visit Ziegler’s event site.