Ziegler Successfully Closes $632 Million Financing for River's Edge Project in New York

Ziegler's $632 Million Financing for River's Edge

Ziegler, a recognized specialty investment bank, has successfully completed a monumental financing deal worth $632,925,000 for the River's Edge project, making it the largest senior living tax-exempt bond transaction to date. This landmark project marks a significant milestone as it will be the first Continuing Care Retirement Community (CCRC) established in New York City, specifically located on the RiverSpring Living campus in the Bronx’s Riverdale area.

A Vision for Empowered Aging

RiverSpring Living, driven by strong Jewish values and a commitment to a not-for-profit mission, promotes a vision of empowered aging with diverse care solutions. The organization offers an extensive range of services, such as assisted living, senior housing, rehabilitation services, memory care, and also houses the nationally recognized Hebrew Home at Riverdale. Nestled on a 32-acre campus that provides stunning views of the Hudson River, RiverSpring Living is set to transform senior living in the metropolis.

David V. Pomeranz, President and CEO of RiverSpring Living, expressed optimism about the project, stating, "Today we move one step closer to building River's Edge and providing a future for our residents that is filled with enrichment, engagement, and community.” Pomeranz also highlighted the collaboration with Ziegler as instrumental, appreciating the work done to bring this historical transaction to fruition.

An Experienced Management Team

To ensure effective development, RiverSpring Living partnered with Chicago-based Integrated Development II (ID2) as its development consultant, with Ziegler serving as the senior manager for the project financing. ID2’s team boasts extensive knowledge in the CCRC sector, making them well-equipped for the first not-for-profit endeavor in their portfolio. Matt Phillips, CEO of ID2, stated, “River's Edge will be one of the finest CCRCs in the US, located on a remarkably strategic site in the deep NYC market, led by the experienced team at RiverSpring Living.”

The upcoming development is planned in two phases. The initial phase will see the construction of a substantial 441,000-square-foot, 11-story building, housing 260 independent living apartment units. These units will comprise luxurious one- and two-bedroom floor plans, with remarkable vistas of the Hudson River, the Palisades, the George Washington Bridge, and the iconic Manhattan skyline.

Project Financing and Impact

Regulated by the New York State Department of Health and the New York State Department of Financial Services, River’s Edge has already secured over 85% presales on the independent living units, indicating strong interest and demand well before the community’s opening. The funding secured through this financing effort will be allocated toward covering various project costs, capitalization of interest for the first 39 months, and establishing debt service reserve funds associated with the bonds issued.

Chad Himel and Keith Robertson, Managing Directors at Ziegler, acknowledged the significance of this financing, expressing their pride in collaborating with the River's Edge team. “It was a tremendous honor to work closely with the River's Edge team on this historic financing which will position the RiverSpring Living organization for the next 100 years.”

Ziegler stands out as the nation’s leading underwriter for financings involving not-for-profit senior living providers. The bank specializes in creative financing solutions tailored to fit the unique needs of senior living clientele, including investment banking, financial risk management, and more.

For further details about Ziegler and its various services, please visit Ziegler’s official website.

Conclusion

The River's Edge project represents a significant leap forward in senior living solutions within New York City, emphasizing the importance of community, care, and innovative financial backing in shaping the future of elderly care. With a strategic partnership and a devoted mission, RiverSpring Living and Ziegler are paving the way for enhanced living experiences for seniors for generations to come.