#United States #Charlotte #SouthPark #Ziegler #The Sharon

Ziegler Secures Financing for The Sharon at SouthPark

Ziegler, a prominent investment bank, has successfully closed financing arrangements amounting to $166,425,000 for The Sharon at SouthPark, a renowned senior living community in Charlotte, North Carolina. This significant financial initiative, which encompasses Series 2026A, 2026B, and 2026C bonds, will facilitate an extensive improvement and expansion project for The Sharon, cementing its position as a leader in senior living.

Established in 1964, The Sharon at SouthPark operates as a nonprofit corporation, formerly known as Sharon Towers. The facility is strategically positioned over 28.1 acres in the vibrant SouthPark area, just a short distance from downtown Charlotte. This region is characterized by its upscale retail spaces, including SouthPark Mall, various healthcare services, and residential neighborhoods.

The Sharon boasts 247 independent living residences, 38 assisted living units, and 96 skilled nursing beds. Plans are now in motion for an ambitious expansion intended to increase residential capacity and enhance wellness resources, ensuring that it meets the evolving expectations of both current and future residents. The multifaceted project includes three major components:

1. Belmore Apartments: This new addition will feature 64 independent living apartments equipped with underbuilding parking, all of which have been 100% pre-sold with 10% deposits secured.

2. Mixed-use Space: Located on the first floor of the Belmore building, this area will provide a dynamic environment including residential, office, retail, and restaurant spaces, enhancing the community’s appeal.

3. Center for Vibrant Living: Covering 52,000 square feet, this comprehensive wellness facility is designed to promote health and wellbeing, including features like a new swimming pool, senior-friendly fitness equipment, dedicated workout studios, walking tracks, and golf simulators.

The proceeds from the Series 2026 bonds will not only support these developments but also cover certain construction costs, interest during the building phase, and establish a debt service reserve fund for the Series 2026A bonds. The financing structure is organized into four tranches issued through the North Carolina Medical Care Commission.

• - Series 2026A Bonds: This portion, amounting to $71,955,000, represents the long-term fixed-rate component of the financing, which is non-rated and features a maturity extending to 2061 with a weighted average maturity of 30 years and an average yield to maturity of 5.57%.
• - Series 2026B Bonds: Comprising $50,000,000, this long-term bank financing is provided by Truist Commercial Equity, Inc., aimed at diversifying The Sharon's financial structure. It carries an all-in rate of 5.071% for a 15-year holding period.
• - Series 2026C Bonds: This segment, totaling $44,470,000 split into two types—C1 and C2, represents short-term financing strategies designed for enhanced repayment flexibility via entrance fees from the new apartments. Each has a 5-year term and is set to remain in a variable interest rate mode.

Tad Melton, Managing Director at Ziegler, expressed pride in the success of this financing, noting it is a significant milestone in a decade-long vision to expand and modernize The Sharon. “The excellent reception from the market underscores our long-standing partnership with The Sharon as we look forward to achieving further strategic advancements,” he said.

Ziegler stands out as the country’s foremost underwriter for not-for-profit senior living providers, creating tailored financial solutions and strategic advisory services aimed at enhancing the senior living sector’s capability and reach.

For more information about Ziegler's innovative approaches and developments, visit their website at Ziegler.