#United States #Gig Harbor #Ziegler #Heron's Key #Washington Finance

Ziegler Successfully Closes Financing for Heron's Key

Ziegler, a renowned specialty investment bank, has recently achieved a significant milestone by closing a $107,165,000 financing for the Heron's Key Phase II Project. This funding, facilitated through Series 2026AB Bonds via the Washington State Housing Finance Commission, is a major step toward expanding senior living facilities in Washington State. The bonds are scheduled to close in June 2026.

The initiative is led by Heron's Key, a nonprofit organization dedicated to developing and managing senior living communities. Situated on an expansive 18-acre campus in the picturesque Gig Harbor, Washington, Heron's Key combines natural beauty with comprehensive care facilities. The property features beautifully landscaped gardens, walking paths, and a close proximity to the gorgeous waterfront of Gig Harbor and the broader Puget Sound region.

Currently, Heron's Key operates a life plan community with 194 independent living units, including duplex cottages, 36 assisted living units with 38 licensed beds, and additional memory care and skilled nursing units, catering to over 300 residents. The planned expansion aims to enhance these offerings significantly.

Features of the Planned Expansion

The expansion includes a new building spanning 111,656 square feet, which will add 54 new residential units along with a modern swimming pool, dining venues, and various resident amenities. This addition is designed to not only facilitate increased capacity but also to promote a vibrant community spirit. Furthermore, the project will renovate existing areas, converting thirteen skilled nursing units into seven assisted living spaces, thereby optimizing the services for the elderly.

The bonds have received an A- rating from Fitch Ratings and are backed by the Emerald Communities Washington Obligated Group, which also includes Emerald Heights. The proceeds from this financing will be utilized for
1. The Heron's Key Expansion project,
2. Payment of capitalized interest on part of the bonds, and
3. Cover specific costs associated with the issuance of the bonds.

Strengthening the Commitment to Senior Living

This financing marks Ziegler's third partnership with Heron's Key and eighth with Emerald Communities. The bonds are structured uniquely, comprising both short-term fixed-rate Series B Bonds and long-term fixed-rate Series A Bonds, with the latter amortizing over 25 years ending on July 1, 2051. This tailored approach reflects the bank's commitment to innovatively meet the challenges in the senior living sector.

Ron Schaefer, CEO of Emerald Communities, emphasized that this financing showcases meticulous planning and a long-term vision that resonates with their mission. He stated, "At Emerald Communities, we believe aging is not a means of limiting possibilities but rather of enlarging opportunities." This project not only generates new living spaces but also safeguards a community where residents can forge connections and live fulfilling lives.

Sarkis Garabedian, Managing Director at Ziegler, echoed this sentiment, commending Heron's Key for its strategic execution and planning. He noted, "This financing is a testament to a journey that began with new campus financing in 2015, now culminating in a successful expansion supported by an A-rated Obligated Group." The expansive vision and execution strategies implemented by Emerald Communities set a precedent for future growth in the senior living sector.

Ziegler stands as the leading underwriter of financing solutions for not-for-profit senior living providers in the United States. Its unique expertise includes providing creative and customized solutions in investment banking, financial risk management, and more, thereby ensuring that senior living communities can thrive and adapt to future generations.

For further insights and details about Ziegler’s extensive offerings, please visit their official website at www.ziegler.com.