#United States #Seattle #Ziegler #Horizon House

Ziegler Successfully Secures $600 Million Financing for Horizon House

In a notable achievement for the senior living sector, Ziegler, a prominent investment bank, has finalized the pricing of $600,000,000 in Series 2025AB Bonds. This financing has been executed for Horizon House, a non-profit organization based in Seattle, with the bonding facilitated through the Washington State Housing Finance Commission. As part of the deal, the bonds are anticipated to close in December.

Founded in 1961, Horizon House is dedicated to developing and operating senior living facilities. Their existing community resides in the First Hill neighborhood, which is conveniently close to downtown Seattle. The current facility features 377 independent living apartments along with 90 assisted living quarters that cater to over 450 residents, offering services including memory care.

The funds generated from this bond issue will support the development of the West Tower, an ambitious 33-story structure that will comprise 202 independent living apartments. This expansion will replace the outdated West Wing, originally built in the 1980s, ultimately boosting the offerings available to residents. The apartments will vary in size from approximately 861 to 2,206 square feet, showcasing 15 distinct floor plans available in both one- and two-bedroom configurations. The West Tower is expected to modernize senior living options in Seattle, particularly in its urban core, where purpose-driven spaces for seniors are presently limited.

Ziegler’s strategic goal with the West Tower project is to augment the availability of contemporary, market-ready units. Additionally, the expansion is intended to create an economic engine that bolsters the long-term sustainability of Horizon House. The new development will also feature enhanced common areas and facilities for all residents, including upgraded parking spaces, the Parkview Terraces, resident gardens, a garden lounge, versatile event spaces, and a scenic rooftop dining area located on the 33rd floor.

Beyond the construction of the West Tower, the bond proceeds will also finance several other critical components, including Master Plan improvements, refinancing on the Series 2022 Loan, maintaining reserves for debt service, covering capitalized interest on the bonds for 46 months, and addressing costs associated with the bond issuance.

This marks Ziegler's third financing collaboration with Horizon House, demonstrating a comprehensive approach in supporting innovative senior living solutions. Notably, Sawgrass Partners served as the development consultant, playing a pivotal role in the long-term planning for this venture. The bonds issued are exempt from federal income tax and have received a BB rating from Fitch Ratings. They are structured with a combination of short-term fixed-rate Series B Bonds expected to be repaid at approximately 80% occupancy and long-term fixed-rate Series A Bonds that will amortize over 36 years, culminating on January 1, 2061.

Erica Thrash-Sall, CEO of Horizon House, emphasized the initiative's significance, stating, "We undertook this financing with one goal in mind: to ensure Horizon House thrives for the next generation of residents. Thanks to Ziegler's expert stewardship and our valued partnership with the Washington State Housing Finance Commission, these funds will enable us to build the West Tower and reinvest across our campus. This financing package will directly support resident well-being, staff excellence, and our mission to serve both middle-market and higher-end older adults."

Additionally, Managing Director Sarkis Garabedian highlighted the strategic foresight of the Horizon House leadership team in navigating Seattle's urban market dynamics. With this significant financing, marked as the largest for senior living to date, they aspire to align with the prevailing market demand while enhancing community experience.

Ziegler has distinguished itself as a leading underwriter for financings intended for not-for-profit senior living providers, supplying customized solutions tailored to their clients' needs, which encompass investment banking, financial risk management, and strategic planning, among others. For those seeking more information regarding Ziegler, further details can be accessed at www.ziegler.com.

The completion of this financing indicates a promising advancement not just for Horizon House but also for the entire senior living sector as it progresses in meeting the needs of aging individuals in urban environments.