Ziegler announces closing of $44.5 million in bonds for CCRC

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Specialty investment bank Ziegler recently announced the closing of the $44.5 million tax-exempt, fixed-rate bonds for Fox Run at Orchard Park, a not-for-profit continuing care retirement community south of Buffalo, NY.

Fox Run, established by the United Church Home Society, began operating in late 2007 and is open to adults aged 62 or more years. 

"Despite a slower-than-expected initial fill-up due to the financial crisis, over the past five years, Fox Run's management and board has done an extraordinary job focusing on what was needed to improve occupancy and enhance operations, resulting in an impressive 'BBB-' (stable outlook) investment-grade credit rating from Fitch," Keith Robertson, managing director in Ziegler's senior living practice, said in a statement.

"With an improving bond market, Fox Run's bonds were sold to more than 15 investment funds, providing Fox Run with significant net present value savings and annual debt service savings, strongly positioning the community for the future."

The CCRC offers 180 independent living units (30 patio homes and 150 apartments) in a two-story apartment building with a health center and a community center. The health center contains 50 skilled nursing beds and 52 assisted living suites (including 18 memory care units). The 45,000-square-foot community center includes a central dining room, a casual bistro, a private dining room for special occasions, a pub that hosts weekly happy hours, an event center, a library with computer stations, gathering space, social and recreational facilities, gift shop, art gallery, beautician/barber facilities, rooftop greenhouse and administrative offices. The community center also includes a wellness nurse's office, swimming pool and fitness center. The Fox Run campus also includes carports for independent residents, a mile-long paved walking path, wooded nature trails and a public garden that is used and maintained by the residents.

The bonds in part are being issued to refinance the Erie County Industrial Development Agency's $44.2 million original principal amount revenue bonds, which financed the construction of the original facility, and to finance and/or reimburse the costs of the 2015 equipment with respect to the original facility.

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