ZIEGLER CLOSES $107,165,000 FINANCING FOR HERON'S KEY (WA)

CHICAGO, June 29, 2026 /PRNewswire/ -- Ziegler, a specialty investment bank, is pleased to announce the successful closing of the Heron's Key Phase II Project, funded with $107,165,000 Series 2026AB Bonds (the "Bonds") through the Washington State Housing Finance Commission. The Bonds are set to close in June 2026.

Heron's Key, (the "Borrower"), is a Washington nonprofit corporation and 501(c)(3) organization that was established to develop, own and operate senior living facilities in the State of Washington (the "State"). The Borrower operates a life plan community (the "Heron's Key Community"), which is situated on an 18-acre campus in Gig Harbor, Washington, located in a wooded park-like setting. The community set within the Harbor Hill neighborhood features landscaped gardens, walking paths, and natural open spaces, while offering proximity to Gig Harbor's scenic waterfront and the broader Puget Sound region. Located in Gig Harbor, Washington, Heron's Key combines a picturesque Pacific Northwest setting with a full continuum of care and resort-style amenities, the community today offers 194 independent living units (including 10 independent living duplex cottages). 36 assisted living units with 38 licensed beds, 13 memory care units and 30 skilled nursing beds for more than 300 residents.

Heron's Key is undertaking a significant expansion comprised of a new 111,656 square foot building that will add 54 new residential units, a swimming pool, dining venue and resident amenities, and a renovated connection between the new and existing buildings, as well as renovating thirteen of the existing skilled nursing units at Heron's Key to seven assisted living units.

The Bonds are rated "A-" by Fitch Ratings and are secured by the Emerald Communities Washington Obligated Group, a two campus Obligated Group comprised of Emerald Heights and Heron's Key. Proceeds of the Bonds will be used to (a) finance the Heron's Key Expansion project, (b) the payment of capitalized interest on a portion of the Bonds, and (c) the payment of certain costs of issuing the Bonds.

This financing marks Ziegler's third transaction with Heron's Key and eighth transaction with Emerald Communities. The Bonds are exempt from Federal income tax and are structured with i) short-term fixed-rate Series B Bonds (TEMPS^SM) expected to be repaid at approximately 80% occupancy, and ii) long-term fixed-rate Series A Bonds amortizing over 25 years through July 1, 2051. The 2026A Bonds are amortized to result in level annual debt service. The 2026A Bonds are subject to optional redemption on July 1, 2033, at 103 declining to par in 2036.

Ron Schaefer, Chief Executive Officer of Emerald Communities, sponsor of Heron's Key, said, "This financing reflects disciplined planning, thoughtful stewardship, and confidence in the long-term strength of our organization and mission. At Emerald Communities, aging is not about narrowing possibilities, it is about extending opportunity. Heron's Key Phase II creates more places for people to build relationships, stay connected, live full and meaningful lives, and remain actively engaged in both their own lives and the life of their community. To us, that is what aging with confidence looks like."

Sarkis Garabedian, Managing Director, in Ziegler's Senior Living Finance Practice added, "At a time when the senior living sector is increasingly focused on growth and expansion, Heron's Key demonstrates the power of planning, precision and execution. This financing is the culmination of a journey that began with a greenfield new campus financing in 2015 and has evolved into a successful Phase II expansion supported by an A- rated Obligated Group. Emerald Communities is a tremendous example of an organization setting a long-term vision, executing against that vision, and creating the capacity to serve future generations. Quite simply, it is the type of success story our sector needs more of."

Ziegler is the nation's leading underwriter of financings for not-for-profit senior living providers.¹ Ziegler offers creative, tailored solutions to its senior living clientele, including investment banking, financial risk management, merger and acquisition services, seed capital, FHA/HUD, capital and strategic planning as well as senior living research, education, and communication.

For more information about Ziegler, please visit us at www.ziegler.com.

¹ Based on full credit given to senior managers of lead-managed underwriting principal volume for senior living transactions completed nationally. Rankings and amounts through LSEG data as of 12/31/25. Note: For-profit bond financings are excluded.

About Ziegler:
Ziegler is a privately held, national boutique investment bank, capital markets and proprietary investments firm. It has a unique focus on healthcare, senior living and education sectors, as well as general municipal and structured finance. Headquartered in Chicago with regional and branch offices throughout the U.S., Ziegler provides its clients with capital raising, strategic advisory services, fixed income sales, underwriting and trading as well as Ziegler Credit, Surveillance and Analytics. To learn more, visit www.ziegler.com.

Certain comments in this news release represent forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. This client's experience may not be representative of the experience of other clients, nor is it indicative of future performance or success. The forward-looking statements are subject to a number of risks and uncertainties, in particular, the overall financial health of the securities industry, the strength of the healthcare sector of the U.S. economy and the municipal securities marketplace, the ability of the Company to underwrite and distribute securities, the market value of mutual fund portfolios and separate account portfolios advised by the Company, the volume of sales by its retail brokers, the outcome of pending litigation, and the ability to attract and retain qualified employees.

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