Garden Spot Village in New Holland, Pennsylvania

Ziegler Closes $67.3M Tax-Exempt Bond Financing for Garden Spot Village in Southeast Pennsylvania

by Channing Hamilton

NEW HOLLAND, Pa. — Specialty investment bank Ziegler has closed on an approximately $67.3 million tax-exempt bond financing for Garden Spot Village in New Holland, located about 14 miles northeast of Lancaster, Pa. Ziegler served as underwriter in the transaction.

The obligated group consists of Garden Spot Village (the “Corporation”) and its subsidiary, GSV LLC. Garden Spot Village is a not-for-profit Pennsylvania corporation that owns and operates a life plan community, known as Garden Spot Village, located on an approximately 220-acre campus in New Holland. 

The community includes 621 independent living homes consisting of 306 apartments and 315 cottage-style homes, 65 personal care units, 40 memory support units and 73 skilled care beds. 

GSV LLC owns and leases a 50,000 square-foot ambulatory health care building known as the Center for Health, located at the entrance of the community. The Center for Health is leased to WellSpan Health, a local non-profit hospital, with a variety of medical services available to residents of Garden Spot Village and the broader community.

The corporation’s parent organization, Garden Spot Communities, is ranked as the 110th largest not-for-profit senior living organization in the country, according to the 2023 LeadingAge-Ziegler 200. Garden Spot Village also ranked No. 2 in Newsweek magazine’s rankings of America’s Best Continuing Care Retirement Communities 2024.

The proceeds of the Series 2024 tax-exempt, fixed-rate bonds will be used to refund and retire the corporation’s outstanding Series 2019 bank obligations and finance the construction of a state-of-the-art cogeneration power plant, renovations to the corporation’s existing health center, and other capital expenditures.

The Series 2024 bonds are rated BBB- (stable outlook) by Fitch Ratings and are issued through The Lancaster Municipal Authority. The 2024 bonds have a final maturity of 35 years. The bonds were priced with a weighted average yield to call of 4.41 percent and a weighted average yield to maturity of 4.5 percent. The Series 2024 bonds were sold without a debt-service reserve fund.

Investor demand for the issue was strong, with 31 institutions participating in the offering and significant distribution to Pennsylvania specific funds. 

“We are extremely pleased with the pricing Garden Spot Village was able to obtain in the market,” says Amy Castleberry, managing director, Ziegler Senior Living Finance. 

“Investors were drawn to Garden Spot Village’s history of conservative financial management combined with a bold approach to innovation in all aspects of aging services. This transaction enabled the organization to lock in a low, fixed cost of capital and borrow for important projects, all without increasing the organization’s annual debt service,” emphasizes Castleberry.

Nate Weber, chief financial officer of Garden Spot Village, says that this financing not only addresses the corporation’s immediate needs through key project funding, but also strategically refinances existing debt, improving its financial position. 

“With this enhanced stability, we are now well-positioned to explore potential expansion opportunities, allowing us to continue fulfilling our mission with greater strength and confidence,” says Weber.

Malcolm Nimick of Ascension Capital served as financial advisor in the transaction.

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