by Geralyn Magan
Christian Living Communities (CLC) got a lot of help from its friends when it decided to expand residential capacity at its Clermont Park retirement community in Denver. CLC’s constituents—including individuals whose parents live at Clermont Park—stepped forward last fall to invest 16.4 million in a project that will add 74 apartment homes, a new adult day program, a fitness center, fellowship hall and restaurant to the community.
“We were heavy on nursing capacity and thin on residential capacity,” says Russ DenBraber, chief executive of CLC, a LeadingAge member that operates 2 other retirement communities in the Denver area. “We have rebalanced.”
The Clermont Park bond offering was intentionally designed to attract individual investors. The bonds sold for 5,000 each, which the Denver Post characterized as “a much easier bite for individual investors than the 100,000 lots typical in nonrated offerings.”
The 6.14% interest rate represented a significant discount from what CLC would have paid if only institutional investors had participated, according to Dennis Jones, managing director for Stifel, Nicolaus & Co., which underwrote the offering along with Ziegler Capital Markets.
Individual investors bought almost half of the 36.5 million tax-exempt bond offering that financed the community upgrades. The remaining bonds were purchased by Guaranty Bank 12 million and institutional investors 8.1 million.
Clermont Park should finish construction in 2013.