HJ Sims Partners with Army Residence Community to Position the Organization for Continued Success
We are very thankful to the entire H.J. Sims team for their diligent efforts to help Army Residence Community secure permanent bond financing for our campus development plan. While maneuvering through uncertain and turbulent times in the financial markets, Sims used their expertise and creativity to help us complete the financing with favorable terms and make our project a reality.
We look forward to this major infusion and investment into our organization to elevate our mission and services to our residents and community. This project will be very transformative for our organization and our long-term financial strength. Thank you, Sims, for the incredible leadership and hard work to secure funding that will provide enormous value and benefit to Army Residence Community now and long into the future.”
– Steven E. Fuller, Chief Executive Officer, Army Residence Community
Army Residence Community (“ARC”) has been serving military-affiliated seniors in Texas since January 1987. Located on 138 acres in northwest San Antonio, and serving around 710 residents across more than 450 independent living units, 78 assisted living units, and 91 skilled nursing units. Though military-focused, eligibility for entrance into the Community was expanded in 2020 and is now open to any retired or honorably discharged individual from all branches of service and retired senior level (GS14 and above) federal employees, including spouses and surviving spouses.
In 2019, the Board and management developed a comprehensive master plan and business plan for the Community. As part of this plan, ARC developed a plan to begin modernizing a number of independent unit apartments as well as apartment corridors, elevator lobbies, the dining area, the kitchen, the auditorium, the front lobby, offices, public restrooms, multi-purpose areas, and the Sky Lounge.
As part of their strategic planning, ARC sought a financing partner that would allow them to fund the first phase of their community renovation while maintaining flexibility for potential future community renovation and expansion.
As ARC refined its development plans, HJ Sims evaluated plans of finance, including an eventual plan of an initial line of credit to start construction followed by a public issuance of tax-exempt bonds. The bank line of credit allowed ARC to begin construction and minimize construction cost increases in an inflationary environment. Sims led the solicitation process and selected a local banking partner for ARC.
On June 29, 2022, HJ Sims priced the Series 2022 Bonds as the bond market saw continued outflows from mutual funds and several forthcoming Federal Reserve target rate increases. Despite pressure from investors, the $41,195,000 tax-exempt bond issue was issued without amending existing bond covenants.
On July 15, 2022, HJ Sims closed on the $41.195 million Series 2022A Bonds for Army Residence Community. The Series 2022A Bonds were issued with a 35-year principal amortization, including 12 months of capitalized interest, and a final maturity of 2057. The projected cost of capital of the 202SA Bonds is 6.14%.
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