#United States #Senior Living #Asheville #Ziegler #Deerfield Retirement

Ziegler Closes Financing for Deerfield Episcopal Retirement Community

Ziegler, a leading investment bank specializing in the healthcare and senior living sectors, has successfully facilitated the closing of $357,225,000 in financing for the Deerfield Episcopal Retirement Community based in Asheville, North Carolina. This significant investment, comprising Series 2026A, 2026B, and 2026C Bonds, aims to support a transformative expansion project designed to meet the evolving needs of its residents.

The Deerfield Episcopal Retirement Community

Founded in 1955, Deerfield is a nonprofit corporation that has grown to accommodate a wide range of senior living arrangements, including 378 independent living residences, 62 assisted living units, and 62 skilled nursing accommodations. Positioned on a scenic 125-acre campus adjacent to the Blue Ridge Parkway, Deerfield is conveniently located near shopping centers, hospitals, local colleges, and beautiful recreational areas.

The community has achieved accreditation from the Commission on Accreditation of Rehabilitation Facilities (CARF) since 2003, highlighting its commitment to providing high-quality care and services to its residents. With a waiting list of over 1,600 prospective residents, Deerfield is preparing for a significant expansion to accommodate the growing demand.

Planned Expansion Details

The funds raised through the Series 2026 Bonds will facilitate several key projects at Deerfield, including:
1. Expansion of the Simonds Health Center, adding 12 specialized memory care assisted living accommodations and 12 new private skilled nursing units.
2. Renovation of Haden Hall: Enhancements will include common areas, a fitness center, an art studio, physical therapy facilities, and an overall improvement in staff and administrative spaces, along with the addition of 10 assisted living accommodations.
3. Construction of a new community center with modernized dining facilities, a library, and meeting rooms to better serve residents and visitors alike.
4. Introduction of 69 new independent living apartments housed in a five-story building with underground parking.
5. Development of 96 new independent living hybrid apartments, known as 'Canterbury Homes'.
6. Creation of outdoor facilities that include activity centers and walking trails to promote an active lifestyle for seniors.

Notably, Deerfield commenced taking pre-sales deposits for the new independent living units in June 2025, quickly achieving a remarkable 70% pre-sales rate within just six months.

Financial Overview

The financing structure consists of three distinct tranches:

• - Series 2026A Long-Term Bonds: This $147,125,000 portion has been rated BBB+ by Fitch Ratings and features a long-term fixed interest rate, with a weighted average maturity of 23.3 years and a blended yield to maturity of 5.08%.
• - Series 2026B Tax Exempt Mandatory Paydown Securities™: At $160,100,000, this short-term portion is also rated BBB+ and will primarily be funded by the entrance fees from the new independent living units.
• - Series 2026C Long-Term Bank Bonds: This variable rate tranche, purchased by Truist Commercial Equity, Inc., supports diversification of Deerfield's funding strategies.

Vision for the Future

Tommy Brewer, Managing Director at Ziegler's Senior Living Finance Practice, expressed gratitude for the collaboration with Deerfield's team, emphasizing that this project represents a significant step towards enhancing the living conditions and experiences for senior residents. The expansion aligns with Deerfield’s mission to be recognized as a leader in senior living excellence.

About Ziegler

Ziegler operates as a boutique investment bank with a strong focus on healthcare, education, and senior living sectors. Based in Chicago, it prides itself on a comprehensive suite of services, including capital raising, strategic advisory, underwriting, and market analytics, designed specifically for not-for-profit senior living organizations.

For more information regarding Ziegler and their services, visit www.ziegler.com.