Ziegler Closes $71 Million Financing for the Terraces at San Joaquin Gardens

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Ziegler, a specialty investment bank, is pleased to announce the successful closing of a $71,035,000 fixed-rate, Series 2012 Bond issue for The Terraces at San Joaquin Gardens. The Terraces at San Joaquin Gardens (the Corporation), was formed for the purpose of redevelopment, expansion, ownership, and operation of an existing senior living community (TSJG or the Community) located on a 24-acre campus in Fresno, California. TSJG is currently comprised of 176 residential living apartments, 42 assisted living apartments, 22 memory support assisted living apartments, and 84 skilled nursing beds.

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The TSJG financing accomplished multiple objectives for Cornerstone and ABHOW. Most important, the community will be transformed at every level, with a wide variety of new and refreshed independent living options, new memory care...

Ziegler, a specialty investment bank, is pleased to announce the successful closing of a $71,035,000 fixed-rate, Series 2012 Bond issue for The Terraces at San Joaquin Gardens. The Terraces at San Joaquin Gardens (the Corporation), was formed for the purpose of redevelopment, expansion, ownership, and operation of an existing senior living community (TSJG or the Community) located on a 24-acre campus in Fresno, California. TSJG is currently comprised of 176 residential living apartments, 42 assisted living apartments, 22 memory support assisted living apartments, and 84 skilled nursing beds.

Prior to the issuance of the Series 2012 Bonds, TSJG was a member of the American Baptist Homes of the West (ABHOW) Obligated Group. ABHOW is a California not-for-profit, public benefit corporation and an affiliate of the Corporation. Concurrently with the issuance of the Series 2012 Bonds, ABHOW, which currently owns and operates TSJG, will transfer ownership to the Corporation. ABHOW will serve as the manager of the Community. The sole member of the Corporation is Cornerstone Affiliates, a California not-for-profit public benefit corporation established in 1999. Cornerstone is also ABHOW’s sole corporate member.

ABHOW recognized the need for revitalization of TSJG and in 2005 approved a multi-phase redevelopment to modernize the campus. Upon completion, the redeveloped Community will consist of 262 residential living apartments, 62 assisted living apartments, 24 memory support assisted living apartments, and 54 skilled nursing beds. Upon completion, 76% of all residential living apartments will be new or fully renovated and 100% of the assisted living, memory support, and nursing levels of care will be new or fully renovated.

Proceeds of the Series 2012 Bonds will be used to pay certain costs of the Project, fund debt service reserve funds for each series, pay a portion of the interest on the Series 2012 Bonds during construction and the first six months of operation of the Project (approximately 20 months), and pay certain costs relating to the issuance of the Series 2012 Bonds.

Mary Muñoz, Managing Director in Ziegler’s Senior Living practice, commented, “The TSJG financing accomplished multiple objectives for Cornerstone and ABHOW. Most important, the community will be transformed at every level, with a wide variety of new and refreshed independent living options, new memory care and skilled nursing, state-of-the-art assisted living, and lovely community areas including performing arts space and new dining venues. ABHOW’s financial objectives were to minimize the amount and cost of debt for TSJG, while protecting the core credit’s rating and preserving future borrowing capacity for other redevelopments in process within the obligated group. These objectives were met through creative ‘recycling’ of entrance fees multiple times in the phasing process; funding a portion of the project with subordinated loans from ABHOW; and seizing the current low interest rate environment to spin the community out of the obligated group. This transaction is a great example of a pro-active senior living system doing all the right things.” Ziegler is one of the nation’s leading underwriters of financing for not-for-profit senior living providers. Ziegler offers creative, tailored solutions to its senior living clientele, including investment banking, financial risk management, merger and acquisition services, investment management, seed capital, FHA/HUD, capital and strategic planning as well as senior living research, education, and communication.

For further information on the structure and use of this issue, please see the Official Statement located on the Electronic Municipal Market Access system's Document Archive.

For more information about Ziegler, please visit us at http://www.Ziegler.com.

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Christine McCarty
Ziegler
312 596 1617
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