Zarwin Baum Closes $20 Million Financing for Senior Living Community in Pittsburgh     

The Jewish Association on Aging in Pittsburgh had big plans. JAA provides a network of senior healthcare communities and services where older adults are encouraged to age at their own pace, in ways that best suit their needs. JAA had been working for over two years on a $40 million financing for an expanded campus for JAA to keep seniors safe, independent, and interconnected while enjoying all the activities of daily living. Making things more challenging, JAA had been losing money for the past two years. Four months ago, JAA engaged Zarwin Baum Partner Alan Wohlstetter to represent them. The deal closed four months later.

Together, JAA and Zarwin Baum put together a strategy involving three key steps:

Step One: Stage the Project. The $40 million project was broken into two projects, with the first one being for $20 million to add additional personal care beds and a kosher kitchen to JAA’s campus. The thinking was that once the first project was financed and stabilized, JAA would have an easier time arranging financing for the second phase.

Step Two: Find a Lead Institutional Investor. $13 million of the first phase took the form of high-yield municipal bonds. Alan helped JAA negotiate the term sheet with the lead bond purchaser and then joined a team of talented attorneys charged with drafting and reviewing the documents required to execute the financing.

Step Three: Monetize Community Partnerships. What about the other $7 million needed for this initial project beyond the $13 million from the institutional investor? The Jewish Federation of Greater Pittsburgh has vision of a flourishing Jewish community where everyone feels included, supported, and inspired. The JAA is one of eight core partner agencies of the Federation. The Federation jumped in with $6.8 million of subordinate loans, enabling JAA to complete the entire financing for this first phase four months after JAA engaged Alan and Zarwin Baum.

Staging the project, finding a lead investor, and monetizing community partnerships was a roadmap for success for JAA. None of it would have been possible without the strategic planning and leadership of JAA and the Federation throughout the process. Construction is ahead of schedule and under budget, allowing JAA to add to the scope of its campus improvements. And thanks to JAA and the Federation, aging Pittsburghers have a campus allowing them to age in place while living a Jewish life if they so choose.