Ziegler Completes $36 Million Financing for Channing House
Ziegler, a leading specialty investment bank, has successfully closed a financing deal amounting to $36,120,000 for Channing House, a well-known nonprofit public benefit corporation. This financing comes through the California Municipal Finance Authority, marking an important milestone for both the organization and Ziegler's partnership with them.
About Channing House
Channing House operates a vibrant life plan retirement community situated in Palo Alto, California. The community, spread over an acre of land, includes an impressive 11-story building with approximately 330,000 square feet designed to accommodate 173 residential living units along with 12 assisted living units. Additionally, there is the Russel V.A. Lee Health Building, which houses 27 assisted living beds and 26 skilled nursing beds, enhancing the level of care offered to residents.
Recent Developments
Channing House is actively looking to expand its facilities. In 2025, the Borrower executed an agreement for a Purchase and Sale to acquire a residential living complex at 430 Forest Avenue. This new property will be transformed into residential living accommodations that require an entrance fee, further diversifying Channing House’s offerings and enhancing their residents' living experience.
Details of the Bond Issuance
The recently closed Bonds are insured under the Cal-Mortgage program and received an impressive "AA-" rating from S&P Global. These bonds are Federally Taxable but exempt from California state income tax. Effective until May 15, 2055, the 2025A Bonds are structured for consistent annual debt service, with redemption options available starting May 15, 2035, thereby providing Channing House flexibility in financial planning.
How the Funds Will Be Utilized
The proceeds from the bonds are aimed at several purposes which are vital for growth and sustainability: financing the acquisition of the 430 Forest property, paying insurance premiums related to the Cal-Mortgage program, establishing a debt service reserve fund, and covering various costs related to the bond issuance.
Statements from Leadership
“Continuing our partnership with Channing House in this crucial financing was a distinguished honor,” noted Daren Bell, Managing Director at Ziegler's Senior Living Finance Practice. He emphasized that this financing and the eventual acquisition signify a strategic advancement for Channing House in extending its mission and accommodating future growth.
Ziegler's Approach and Services
Ziegler has cemented itself as the premier underwriter for not-for-profit senior living providers across the nation. They offer creative financial solutions tailored to the needs of senior living facilities, ranging from investment banking and financial risk management to merger and acquisition services. Their comprehensive suite of services supports the varied needs of their senior living clientele.
About Ziegler
Ziegler stands as a distinguished privately held investment banking and capital markets firm. Focused primarily on healthcare, senior living, and educational sectors, the firm provides clients with strategic advisory services, capital raising solutions, and more. With headquarters in Chicago and regional offices nationwide, Ziegler is dedicated to delivering personalized service to its clients.
Frequently Asked Questions
What is the amount financed by Ziegler for Channing House?
Ziegler has closed a financing deal worth $36,120,000 for Channing House.
What will the funds from the bonds be used for?
The proceeds will be directed toward purchasing a new residential living complex, capital improvements, and establishing a debt service reserve fund.
How is Channing House significant in the senior living sector?
Channing House provides a life plan retirement community with a variety of living arrangements and skilled nursing facilities, enhancing the quality of senior care.
What is Ziegler's role in financing?
Ziegler specializes in providing financial services and advice tailored to not-for-profit senior living organizations, helping them navigate complex financing needs.
Why is the financing notable for Channing House?
This financing marks the third collaboration between Ziegler and Channing House, supporting their strategic growth plans and enhancing their community services.
