Ziegler has announced the closing of bond financing for the Heron’s Key Phase II Project, providing $107,165,000 in Series 2026AB Bonds issued through the Washington State Housing Finance Commission. The financing package is structured to support the continued build-out of the Heron’s Key senior living campus and associated project costs.
Heron’s Key is a Washington nonprofit corporation formed to develop, own and operate senior living facilities within the state. The organization operates a life plan community on an 18-acre site in Gig Harbor, Washington, offering a continuum of care within a single campus setting. The community currently includes 194 independent living units serving seniors in the region.
The Phase II effort represents a significant expansion of the existing community. Plans call for a new 111,656-square-foot building that will introduce 54 additional residential units to the campus. The new facility is also designed to incorporate a swimming pool, a dining venue and a range of resident amenities, expanding the services and lifestyle offerings available to residents of Heron’s Key.
In addition to the new construction, the project includes targeted renovations within the existing health care component of the community. Thirteen skilled nursing units at Heron’s Key will be reconfigured and renovated to create seven assisted living units, reflecting an adjustment in the mix of care levels provided on site. A renovated connection will link the new building to the existing campus, integrating the expansion with current operations and circulation.
According to Ziegler, proceeds from the Series 2026AB Bonds will be applied to multiple project-related uses. The primary use is to finance the construction and renovation elements of the Phase II expansion. A portion of the bond proceeds will also be used to pay capitalized interest on part of the issuance during the development period, as well as to cover certain costs associated with issuing the bonds through the Washington State Housing Finance Commission.
The completion of this financing allows Heron’s Key, as a nonprofit life plan community sponsor, to advance its campus expansion plan while leveraging the bond market as a capital source. The transaction underscores the role of state housing finance commissions in facilitating large-scale funding for senior living projects sponsored by nonprofit organizations.
