Ziegler Secures $36.12 Million Financing for Channing House Expansion
In a significant move for the senior living sector, Ziegler, a leading investment bank, announced the successful closing of a $36,120,000 financing for Channing House, a life plan retirement community located in Palo Alto, California. This financing comprises Series 2025AB Bonds facilitated through the California Municipal Finance Authority, marking an important step in Channing House's strategic growth plans.
Channing House operates with a mission to provide essential services and accommodations for seniors in a vibrant community environment. The facility occupies a spacious one-acre site and features an 11-story building encompassing approximately 330,000 square feet, providing 173 residential living units and an additional 12 assisted living units. Adjacent to the main building is the Russel V.A. Lee Health Building, a two-story facility that includes 27 assisted living beds and 26 skilled nursing beds, ensuring comprehensive care options for its residents.
The recent financing is particularly noteworthy as it supports the acquisition of a neighboring residential complex known as 430 Forest Avenue. Channing House has taken significant steps by executing a Purchase and Sale Agreement to obtain this property, which consists of two buildings comprising 13 residential living units. Located a mere two blocks away from the main facility, the 430 Forest property is intended to be converted into additional entrance fee residential living accommodations, thus enhancing the offerings available to residents.
This transaction marks the third successful financing partnership between Channing House and Ziegler, reinforcing the ongoing collaboration aimed at supporting the organization's strategic initiatives. The bonds associated with this financing have received an 'AA-' rating from SP Global and will be insured through the Cal-Mortgage program, highlighting the financial stability and risk management associated with this investment.
The financial structure of the 2025 Bonds is designed for level annual debt service continuing until May 15, 2055, with options for early redemption starting May 15, 2035. Importantly, the 2025 Bonds are federally taxable, but notably exempt from California state income tax, which presents a favorable investment landscape for stakeholders.
Funds raised through this bond issuance will not only facilitate the acquisition of the 430 Forest property but will also cover related capital improvements, the payment of insurance premiums to the Cal-Mortgage program, and contribute to a debt service reserve fund to secure ongoing financial obligations.
Daren Bell, Managing Director in Ziegler's Senior Living Finance Practice, expressed enthusiasm about the financing, stating, "We were honored to continue our partnership with Channing House through this important financing. This acquisition represents a strategic step forward for Channing House in expanding their mission-driven footprint and positions the organization for continued growth and long-term success."
Ziegler stands as the foremost underwriter for not-for-profit senior living providers nationwide, offering tailored financial solutions encompassing investment banking, financial risk management, and planning services tailored specifically for this sector.
With a legacy of commitment to enhancing communities and providing quality care, Channing House is well-positioned to harness this financial support to further its mission in serving the growing senior population in California. As the demand for senior living options continues to evolve, strategic partnerships like this one with Ziegler represent essential collaborative efforts aimed at driving sustainable growth and enhanced quality of life for seniors.
For more details about Ziegler and its financing services, visit www.ziegler.com.
Channing House operates with a mission to provide essential services and accommodations for seniors in a vibrant community environment. The facility occupies a spacious one-acre site and features an 11-story building encompassing approximately 330,000 square feet, providing 173 residential living units and an additional 12 assisted living units. Adjacent to the main building is the Russel V.A. Lee Health Building, a two-story facility that includes 27 assisted living beds and 26 skilled nursing beds, ensuring comprehensive care options for its residents.
The recent financing is particularly noteworthy as it supports the acquisition of a neighboring residential complex known as 430 Forest Avenue. Channing House has taken significant steps by executing a Purchase and Sale Agreement to obtain this property, which consists of two buildings comprising 13 residential living units. Located a mere two blocks away from the main facility, the 430 Forest property is intended to be converted into additional entrance fee residential living accommodations, thus enhancing the offerings available to residents.
This transaction marks the third successful financing partnership between Channing House and Ziegler, reinforcing the ongoing collaboration aimed at supporting the organization's strategic initiatives. The bonds associated with this financing have received an 'AA-' rating from SP Global and will be insured through the Cal-Mortgage program, highlighting the financial stability and risk management associated with this investment.
The financial structure of the 2025 Bonds is designed for level annual debt service continuing until May 15, 2055, with options for early redemption starting May 15, 2035. Importantly, the 2025 Bonds are federally taxable, but notably exempt from California state income tax, which presents a favorable investment landscape for stakeholders.
Funds raised through this bond issuance will not only facilitate the acquisition of the 430 Forest property but will also cover related capital improvements, the payment of insurance premiums to the Cal-Mortgage program, and contribute to a debt service reserve fund to secure ongoing financial obligations.
Daren Bell, Managing Director in Ziegler's Senior Living Finance Practice, expressed enthusiasm about the financing, stating, "We were honored to continue our partnership with Channing House through this important financing. This acquisition represents a strategic step forward for Channing House in expanding their mission-driven footprint and positions the organization for continued growth and long-term success."
Ziegler stands as the foremost underwriter for not-for-profit senior living providers nationwide, offering tailored financial solutions encompassing investment banking, financial risk management, and planning services tailored specifically for this sector.
With a legacy of commitment to enhancing communities and providing quality care, Channing House is well-positioned to harness this financial support to further its mission in serving the growing senior population in California. As the demand for senior living options continues to evolve, strategic partnerships like this one with Ziegler represent essential collaborative efforts aimed at driving sustainable growth and enhanced quality of life for seniors.
For more details about Ziegler and its financing services, visit www.ziegler.com.
Topics Financial Services & Investing）
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