$57M to Revamp Historic Care Centers
Ascentria Care Alliance Uses Tax-Exempt Bond from MassDevelopment to Buy & Renovate Lutheran Rehabilitation & Skilled Care Center, Renovate Quaboag Rehabilitation & Skilled Care Center
November 17, 2021
Matthew Mogavero, 857-248-0868
|Photo of the Lutheran Rehabilitation and Skilled Care Center in Worcester|
BOSTON – MassDevelopment has issued a $56,730,000 tax-exempt bond on behalf of Ascentria Care Alliance, Inc., a nonprofit human service agency that will use bond proceeds to buy and renovate the Lutheran Rehabilitation and Skilled Care Center in Worcester and to renovate the Quaboag Rehabilitation and Skilled Care Center in West Brookfield, which it already owns. Renovations at the historic 150-bed Lutheran Rehabilitation and Skilled Care Center, which has been in operation for more than a century, will include converting 25 three-bedroom rooms to private or semi-private rooms and building an 8,800-square- foot addition for 11 new rooms. Work at the historic 147-bed Quaboag Rehabilitation and Skilled Care Center, which has been in operation for more than 75 years, will include converting 16 three-bedroom rooms to private or semi-private rooms, converting internal spaces to create additional resident rooms, building two small additions, and relocating select services to administrative and common spaces. Ascentria will also use proceeds from the bonds, which were sold through a public offering underwritten by Ziegler Investment Banking, to refinance previously issued debt.
“Massachusetts is fortunate to be home to many outstanding human service agencies that support residents of all ages,” said Housing and Economic Development Secretary Mike Kennealy, who serves as chair of MassDevelopment’s Board of Directors. “MassDevelopment’s low-cost financing options allow these organizations the flexibility they need when the time comes to renovate facilities, upgrade services, or expand operations.”
“MassDevelopment is pleased to continue our partnership with Ascentria Care Alliance as it brings an additional care center into its system and renovates another of its existing facilities,” said MassDevelopment President and CEO Dan Rivera. “The hard work of human service providers like Ascentria is crucial to building resilient communities where no one gets left behind.”
MassDevelopment has previously supported Ascentria with tax-exempt financing. In 2019, the agency provided Ascentria with a $22.8 million tax-exempt bond to buy Presentation Rehabilitation and Skilled Nursing Center in Boston’s Brighton neighborhood. In 2017, the agency issued a $22.8 million tax-exempt bond to help the human service provider buy Laurel Ridge Rehabilitation & Skilled Nursing Center in Boston’s Jamaica Plain neighborhood. In 2015, MassDevelopment issued tax-exempt bonds to help the organization buy the Quaboag Rehabilitation and Skilled Nursing Center in West Brooksfield and buy the equipment located within the facility.
“MassDevelopment has been a strong partner for the City of Worcester, and this is another example of their efforts to help create and support strong, healthy communities,” said Worcester City Manager Edward M. Augustus, Jr. “Worcester is fortunate to have dedicated human services providers like Ascentria Care Alliance, Inc. Through this bond, they will be able to continue the mission of Lutheran Rehabilitation and Skilled Care Center of delivering quality care to its clients.”
Ascentria Care Alliance, Inc. is one of New England’s largest nonprofit human service organizations, with 60 locations throughout the region. Ascentria employs an innovative client-centered model to address the social determinants of health and help individuals and families move forward and thrive physically, intellectually, socially, spiritually, and economically.
“We were pleased to have the opportunity to work with MassDevelopment again,” said Ascentria Chief Financial Officer Jeanette Wade. “Our senior care business is core to our mission and we are thrilled to own and operate these two high quality facilities.”
MassDevelopment, the state’s development finance agency and land bank, works with businesses, nonprofits, banks, and communities to stimulate economic growth across the Commonwealth. During FY2021, MassDevelopment financed or managed 416 projects generating investment of more than $1.86 billion in the Massachusetts economy. These projects are estimated to create or support 6,578 jobs and build or preserve 1,909 housing units.