MANHEIM, Pa. — Ziegler has arranged $53 million in financing for Pleasant View Communities, which operates a continuing care retirement community in the South Central Pennsylvania borough of Manheim.
Originally built in 1954, the community currently features 152 independent living apartments and cottages, 95 personal care units and 115 skilled nursing beds.
The loans will fund two expansions. The first project, West Lawn Apartments, will consist of two buildings containing 18 independent living units located on Pleasant View’s existing campus. The second project, the Lofts at Lititz, will consist of 32 independent living units on the site of the historic Wilbur Chocolate Factory in downtown Lititz, a neighboring town.
The long-term component of the financing totals $34.1 million and was placed with Fulton Bank, which provided a 15-year commitment and an amortization structure that ultimately lowered Pleasant View’s annual debt service requirements.
The short-term component of the financing totals $18.9 million and was placed with Truist, which provided a five-year maturity that will be redeemed as initial entrance fees are received by Pleasant View on the expansion units.
“A key element of Pleasant View’s multi-phased financing strategy was to utilize bank debt for the projects to minimize the negative arbitrage during construction,” says Adam Garcia, director with Ziegler Senior Living Finance. “The decrease in short-term borrowing rates in light of the COVID-19 pandemic, coupled with the flexible draw-down nature of the loans, resulted in savings of over $3 million during construction alone.”