HJ Sims Provides Mezzanine Loan for ALG Senior
Based out of Hickory, North Carolina, ALG Senior (“ALG”) is a best in class senior living owner, operator and developer, operating more than 150 independent living, assisted living and memory care communities in eight states, with a total of more than 12,500 beds under its management. ALG is the largest provider of seniors housing services in the southeastern United States and is ranked by Argentum as the 6th largest memory care provider, the 8th largest assisted living provider and the 9th largest senior living operator in the United States.
HJ Sims (“Sims”) was approached by ALG to provide a mezzanine loan to fund the development of 58-unit independent living and memory care community in Reidsville, North Carolina (the “Community”). ALG sought additional leverage to supplement construction financing obtained for the project, allowing ALG flexibility to preserve capital to pursue additional growth plans.
Through an affiliate of HJ Sims, Sims sold securities through its Private Client Group to fund the mezzanine loan. Sims structured its loan to meet the return thresholds of its investors, while meeting the requirements of the senior construction lender and providing attractive returns to ALG.
The customized financing structure helps ALG with both its short and long-term financing needs. With additional leverage, ALG is able to (a) preserve capital for future growth and support of its portfolio, and (b) avoid diluting its ownership in the Community from taking on additional equity partners. The loan marks Sims’ ninth financing with ALG Senior and its Principal.
HJ Sims excels in providing customized debt and equity capital for senior living providers utilizing a variety of direct financing solutions including equity, preferred equity, mezzanine debt, and high leverage first mortgage loans, tailored to meet the unique financing needs of valued partners like ALG.
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