Ziegler Secures Financing for Major Expansion of Friendship Village Kalamazoo

Ziegler Secures Financing for Friendship Village of Kalamazoo

Ziegler, a reputable investment bank specializing in senior living financing, has successfully closed a significant funding deal for the Friendship Village of Kalamazoo. This $103,585,000 financing involves the Series 2026A, B-1, B-2, and B-3 Bonds issued through Kalamazoo's Economic Development Corporation and marks a pivotal moment for the community.

Located within Kalamazoo, Michigan, Friendship Village spans approximately 72 acres and provides a comprehensive life plan community tailored to meet the needs of senior adults. The facility comprises 364 units, including 230 independent living units, assisted living facilities, memory care units, and skilled nursing beds, dedicating itself to the housing and healthcare needs of its residents.

Expansion Plans

The Series 2026 Bonds will primarily fund the expansion of Friendship Village, allowing the community to enhance its amenities and introduce new independent living housing. A key component of the project involves constructing a new 76-unit independent living apartment building named 'The Atlee'. Additionally, a new 40-bed long-term skilled nursing center, the 'Markillie Care Center', will replace the existing Health Center, improving care continuity.

Anticipation for these new additions is high, with 81.5% of the Atlee units pre-sold as of December 31, 2025, shortly after sales commenced in March 2025. The project also includes significant renovations to dining areas and the serving kitchen, upgrading existing facilities to better serve residents' needs. Outdoor enhancements will introduce new pickleball courts, walking trails, and improved landscaping, creating an enriching environment for seniors.

Insights from Ziegler

Tom Meyers, Senior Managing Director in Ziegler's Senior Living Finance Practice, expressed pride in supporting Friendship Village for over three decades. This financing effort represents an essential advancement in offering additional services to an aging population. The growth strategy focuses on reaching Baby Boomers seeking appropriate housing options as they transition to senior living services.

The timeline for using the Series 2026 Bonds was ambitious, requiring swift market navigation to ensure funds were available for construction to proceed uninterrupted. Ziegler successfully generated interest in what was otherwise a quiet market, demonstrating its capacity to foster investor engagement in early-year financings.

Commitment to Growth

Executive Director Tim Cain of Friendship Village Kalamazoo shared enthusiasm about the upcoming renovations and expansions. The strategic investments are geared toward enhancing current amenities while preparing for future residents. Cain emphasized the importance of these enhancements in fulfilling their mission of providing vibrant and compassionate senior living.

Ziegler's expertise in handling complex financial structures for senior living providers positions it as a leader in the sector. The firm continues to offer customized investment banking solutions, enabling clients to achieve their strategic aspirations effectively. Their comprehensive approach includes risk management, capital planning, and senior living research.

For more information about Ziegler's initiatives and services, visit www.ziegler.com. By facilitating innovative financial solutions, Ziegler is committed to supporting the future of senior living communities across the nation.