Ziegler, a specialty investment bank, is pleased to announce the successful closing of Greenwood Village South’s $27,850,000 Series 2025A Bonds, $7,400,000 Series C-1 (TEMPSSM-50) Bonds, and $10,600,000 Series C-2 (TEMPSSM-85) Bonds issued through the Indiana Finance Authority for the Senior Living Finance Practice. The transaction also includes $25,000,000 of Series 2025B Bank Direct Placement Bonds, which closed concurrently with the Series 2025A, C1, and C-2 Bonds (together totaling $70,850,000 and collectively referred to as the Series 2025 Bonds).
Westminster Village Greenwood, Inc. d/b/a Greenwood Village South (GVS) is an Indiana not-for-profit corporation which owns and operates a Type B continuing care retirement community in Greenwood, Indiana – located just south of Indianapolis. GVS currently operates 426 total units consisting of 173 apartments and 80 cottage dwellings, 41 assisted living apartments, and a 132-bed skilled nursing health center. GVS is managed by Life Care Services (LCS) and has engaged LCS Development (LCSD) as the developer for its Village Flats Project.
The Series 2025 Bonds will be used by GVS to expand and update its campus by adding independent living housing, creating the “next generation” of senior living through its Village Flats Project. GVS plans to build 42 new independent living “hybrid” homes in three buildings on the west side of the property. The hybrid homes combine the privacy and residential feel of a cottage with the convenience and community integration of an apartment. A new commons building with an entrance to GVS’ independent living Arms building will also be constructed. It will feature a reception area, three multipurpose rooms, a salon, a library, a mail room, a transitional dining hall, a lounge, a wellness center, an indoor pool and natatorium and a new 280-seat auditorium. The outdoor part of the project includes pickleball and bocce ball courts as well as a new courtyard. Total project costs are approximately $67.2 million before financing-related items.
Ziegler was also able to very quickly assist GVS in securing and successfully negotiating an attractive bank credit commitment from its existing bank lender. In working closely with the bank, excellent terms were achieved which allowed GVS to avoid a full request for proposal process. This too further saved time for GVS and supported the goal of an August closing. Additionally, Ziegler recognized the historic credit strength of GVS and recommended the pursuit of a credit rating from Fitch Ratings. Following a successful site visit and focused analysis by Fitch, the Series 2025A and 2025C Bonds received a “BBB-” rating with a Stable Outlook. This was an impressive outcome for GVS as a single-site community who had no immediate prior credit rating and is undertaking a substantial repositioning. GVS’s credit strength, board and management team strength along with the backing of LCS and LSCD were key areas of support for the investment grade credit rating. Further the “BBB-” rating allowed the Series 2025A and 2025C Bonds to be financed without a Debt Service Reserve Fund, which reduced the amount of the financing by more than $3.5 million. The Series 2025A Bonds have call provisions of 7 years at 103%, declining to par in 10 years. The Series 2025C Bonds will be redeemed quickly with a portion of the first-generation entrance fees during the Village Flats fill-up period.
Discover the latest trends and insights—explore the Business Insights Journal for up-to-date strategies and industry breakthroughs!
