LOS ALTOS, CA—Ziegler has closed a $71.2 million bond issue for American Baptist Homes of the West’s Obligated Group, with proceeds set to fund a major redevelopment of the Terraces at Los Altos here.
The Terraces, the former Pilgrim Haven retirement community, has 73 residential living apartments, 14 assisted living apartments, and 65 skilled nursing beds. The last major construction occurred on the campus in the late 1980s.
Over the course of this new project, 112,000 sq. ft. of building space will be demolished, with only 21,000 sq. ft. being retained. The new buildings will comprise approximately 180,000 sq. ft. Construction of the first phase is underway and is estimated to be ready for occupancy in July 2013. The financing will support the construction and equipping of the final two phases of the project. Following its redevelopment, TLA will consist of 105 residential living units, 30 assisted living units, 16 memory support suites, and 30 skilled nursing beds.
Proceeds of the Series 2013 Bonds will be used to pay certain costs of the redevelopment, expansion, and operation of the Terraces property, fund debt service reserve funds for each series, pay a portion of the interest on the Series 2013 Bonds during construction of the project (approximately 36 months), and pay certain costs relating to the issuance of the Series 2013 Bonds.
Mary Muñoz, managing director in Ziegler's Senior Living practice, said in a statement that American Baptist has done a good job of balancing the need to update and re-invest in existing communities with executing on strategic growth projects. “The company is among the strongest in the industry and one of the largest senior living systems, serving seniors across a wide variety of income levels,” he said.