The Situation
Paragon Village is a multifamily senior residential rental apartment facility located in Mount Olive, New Jersey. The facility consists of 70 independent living units and 73 assisted living units in two residential buildings.
The prior owner was unable to achieve occupancy sufficient to generate enough revenue to pay the debt service on its loan. Consequently, the prior owner of the facility defaulted, and the property was sold at a foreclosure sale to the bond issuer.
The Challenge
The new owner, Paragon Senior Living, LLC, wanted to arrange the financing it needed to acquire the facility, with additional funding for renovating, improving and equipping the community.
The Hamlin Solution
The seller agreed to a sale of the property funded from a combined amount of bond proceeds and a seller note, despite the old debt exceeding that amount.
The Series 2015 bonds were issued as both tax-exempt and taxable debt and consisted of a combination of first-, second- and third-lien debt structured in a unique and customized manner. Hamlin was able to facilitate the issuance of the bonds, so as to allow an attractive campus to continue to serve residents.
