World’s Largest Retirement Community Set to Borrow $180 Million for More Homes

The Villages, a 57,000-acre Florida retirement community, is looking to issue almost $180 million in high-yield debt to finance more homes.

Built for residents at least 55 years old, the Villages has about 170,000 people, making it the largest community of retirees in the world. It was one of the fastest growing metropolitan areas in the US between 2010 and 2020.

The proceeds of the upcoming bond offering will be used to finance the construction of 3,860 new residential units and add amenities like 27 holes of Championship golf and recreation centers, according to a presentation for investors. The deal, which is unrated, is expected to price Oct. 20.

Although established 40 years ago, the town has recently been the subject of documentaries, including one directed by Lance Oppenheim called “Some Kind of Heaven.” Residents drive golf carts around the town’s pools, golf courses, theaters, restaurants and shops.

The Villages has been working to expand its footprint by roughly 6,670 units and borrowed about $127 million in debt last year for the initial phase of development.

Located about an hour’s drive north of Orlando, the Villages is seeking to grow its population to over 260,000 retirees with more than 130,000 homes over the next two decades. So far, it’s sold about 83,400 residential units for its age-restricted population.

Just this year, more than 2,100 homes in The Villages were sold, and the average sales price was just under $500,000.

Top photo: The bridge across the Florida Turnpike. (Adobe Stock Images)