Redmond's Emerald Heights Retirement Community Receives Only "A" Investment Rating in State

Emerald Heights, an Emerald Communities continuing care retirement community (CCRC) in Redmond, recently completed a $29.845 million refinancing loan with assistance from specialty investment bank Ziegler. The closing of this fixed-rate Series 2013 Bond issue comes on the heels of Fitch Ratings assigning Emerald Heights an “A minus” investment grade rating with a stable outlook.

Emerald Heights is the only senior living organization in Washington State with an A level rating.

The Series 2013 Bonds, along with other available funds, were used to refund outstanding variable rate Series 2003 Bonds, fund a debt service reserve, and pay certain costs of issuance.  The Series 2013 Bonds are comprised entirely of A- fixed-rate bonds.

Emerald Heights’ A- rating reflects the organization’s solid financial profile and consistently strong occupancy, with levels above 90-percent over the last three years.

"Emerald Heights is one of the highest-rated retirement communities in the country, a testament to its prime location, beautiful campus and physical plant, a highly invested board, and a very solid management team,” said Mary Muñoz, Managing Director in Ziegler's Senior Living practice. 

“Locking in this layer of capital in today's low-rate environment positions the organization well to take its next steps. Ziegler is pleased to partner with Emerald Heights as the organization seeks to grow and serve additional seniors."

Located on 38 acres in Redmond, Emerald Heights is a Type A life care retirement community that is home to more than 450 residents.  The campus features 290 independent living apartments and cottage-style residences, 56 assisted living studios (including 16 memory care units), and a 61-bed licensed skilled nursing center. 

The community is investing $60 million in a campus improvement plan, which is being funded with equity and construction loans. The facility update includes a new 12,000 square foot fitness center, which opened in July 2012, a new auditorium building opening in April, dining room expansion and other common area improvements, and 43 new independent living apartments.

“We are proud of our top-tier credit rating, as it is a reflection of Emerald Heights’ stable and dependable retirement community operations,” said Lisa Hardy, President and CEO of Emerald Communities.  “Looking forward, our A- rating and the recent bonds issuance allow us to continue in our commitment to excellence and improve our campus for current and future residents.”

Emerald Heights is one of the first life care communities in the Pacific Northwest.  A one-time entrance fee and ongoing monthly fees pay for lifetime use of an independent living residence and future health care provided in the community’s health center, including assisted living, skilled nursing and memory support, if needed.

Beyond providing housing and medical care for seniors age 62 and older, Emerald Heights features a nature trail, restaurant-style dining, a full-service spa and salon, wellness programs, and a variety of social and educational opportunities.

Ziegler is one of the nation’s leading underwriters of financing for not-for-profit senior living providers.  Fitch Ratings is a global credit rating agency.

Source: Emerald Heights