The New Hope Cultural Education Facilities Finance Corporation sold $118 million in bonds to finance improvements at a pair of nonprofit retirement communities.
The corporation sold the bonds in six series, including three sub-series. It did not apply for or receive ratings for the securities.
The corporation will loan the bond proceeds to Morningside Ministries, a nonprofit senior living organization. Morningside Ministries currently runs two senior living facilities in Texas, in San Antonio and Boerne, a nearby city.
In September, the organization announced plans to build 86 new homes at its facility in Boerne, as well as an amphitheater, dining hall, fitness center, pickleball court, and pool. The construction includes both one- and two-bedroom homes, ranging from 946 square feet to 1,751 square feet. Construction at the facility, which is known as Menger Springs, is expected to complete in summer 2025.
“Menger Springs currently has cottages and apartments, so we wanted to introduce a unique residential option for active older adults that’s walkable, pet-friendly and stands apart from conventional apartment-style or high-rise living,” Morningside Ministries Executive Director Brooks Powell said in a press release.
The bonds are limited obligations of the corporation, secured by loan repayments from Morningside Ministries.
Odeon Capital Group LLC served as underwriter on the issuance. Longhouse Capital Advisors LLC and Hamlin Capital Advisors LLC served as financial advisors.