Greencroft Communities Acquires
Windsor of Savoy, with HJ Sims Acting
as Placement Agent
$15,000,000 | Goshen, Indiana | December 2024
“Bringing the Windsor of Savoy into the Greencroft family was a unique opportunity—but the owner’s need for an accelerated timeline made the financing process especially complex. We knew we needed a financing partner who could be both creative and highly responsive. The H.J. Sims team, led by Lynn Daly, exceeded expectations—meeting every deadline and offering a range of thoughtful, well-structured options that enabled us to close the deal successfully.”
– Hugh Davis, CEO Greencroft Communities
Partnered Right®
Serving residents since 1922, the Greencroft Communities (“GC”) is based out of Goshen, Indiana. GC provides a broad continuum of quality services, across multiple states, to meet the diverse health and wellness needs of its residences. Prior to the acquisition, GC owned and operated eight senior living communities: Goshen, Golden Years, Great Lakes, Middlebury, Hamilton Grove, Oak Grove, Southfield Village, and Walnut Hills, all located in the Midwest. HJ Sims was engaged as placement agent for the transaction. Greencroft’s Obligated Group is rated ‘BBB-‘ by Fitch Ratings. For a variety of well-thought-out reasons, GC wanted to avoid involving GC’s Obligated Group in the financing, either as borrower, guarantor or providing any means of support.
Structured Right®
GC was adding an Illinois community, the Windsor of Savoy, located just outside of Urbana, in Savoy, Illinois, to its family of communities. The Windsor was predominantly Independent Living. With the timing requirements and to comply with IRS restrictions, we focused on a taxable acquisition financing. Due to the timing agreed to in the acquisition negotiations, there was a short run-way to close the financing. HJ Sims’ typical approach includes development of backup plans to be able to provide certainty of execution. Recognizing we were sourcing taxable debt for a rental community, HJ Sim’s explored non-traditional financing options including Life Insurance Companies, Fannie Mae and Freddie Mac. The exploration of these alternative capital sources was done in parallel to consideration of more traditional sources. HJ Sims also initiated a commercial bank RFP process to provide financing for the acquisition.
Executed Right®
The HJ Sims team successfully managed the competitive bank RFP process amidst both seller and buyer-imposed restrictions and timing constraints. HJ Sims conducted a virtual site visit and kept the solicitation to a tight timeline. While several banks responded that they needed support from the Obligated Group, Old National Bank (“ONB”) understood the challenges of including the Obligated Group and appreciated the strength of The Windsor and of GC as an operator. ONB was able to turn term sheets quickly and negotiate terms that would work with GC and their goals for The Windsor. In addition, HJ Sims worked with GC, ONB, and their respective legal counsels to ensure that the financing could be completed in a timely manner.
Financed Right®
GC, HJ Sims, and ONB closed the $15 million financing concurrently with the acquisition of the Windsor of Savoy on December 5th, 2024, structured as a taxable bank loan. While the community is currently stabilized, GC will have a 2-year interest-only period to support a smooth transition of operations, followed by a 30-year principal amortization. In addition, the swap market moved in favor of Greencroft, allowing GC to enter into an interest rate swap effective immediately, locking in a 5-year taxable swap at 5.72%.
Lynn Daly
312.748.1387
Justice Onyeugo
214.252.8228
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