**This financing has been successfully closed. Please contact you advisor for any potential secondary market opportunities.**
$392,245,000*
WESTCHESTER COUNTY LOCAL DEVELOPMENT CORPORATION
Revenue Bonds
Purchase Senior Learning Community, Inc. Project
Series 2021
Series 2021A Bonds $213,805,000*
Series 2021B Entrance Fee Principal Redemption Bonds $23,520,000*
Series 2021C Entrance Fee Principal Redemption Bonds $58,730,000*
Series 2021D Entrance Fee Principal Redemption Bonds $89,525,000*
Series 2021E Taxable Entrance Fee Principal Redemption Bonds $6,665,000*
HJ Sims is pleased to serve as sole underwriter for Broadview at Purchase College, a planned senior living community consisting of 174 independent living apartments and 46 villas, 36 assisted living beds and 32 memory care beds on the campus of Purchase College in Purchase, Westchester County, New York.
Purchase College is approximately five miles from White Plains, NY and 25 miles from midtown Manhattan. It was founded in 1967 and one of the 13 comprehensive colleges of the State of New York (SUNY) system.
In 2011 legislation was passed in New York to permit SUNY to enter into a 75-year ground lease for development of Broadview, finding “provision of a senior learning community upon the grounds…is appropriate to further the objectives and purposes of [SUNY].” The legislation mandates that 100% of any rent Purchase College receives from the lease shall be used by the college for student financial aid and full-time teaching positions.
In addition to a wide variety of amenities and commons spaces, the community will include a Learning Commons consisting of classrooms, studios, a dining venue, gathering spaces, and performance spaces for use by Broadview residents and the College community and will be a place where residents, students and faculty can come together for lectures, seminars, performances, mentoring, tutoring and other educational purposes. Arts and cultural opportunities on the Purchase College campus also include the Neuberger Museum of Art, the Richard and Dolly Maass Gallery, and the Performing Arts Center, all a short walk from the Community.
Reach out and connect with Broadview.
This stunning new community will mix a vibrant college environment with senior living premium services and amenities. There will be unique opportunities for intergenerational learning & mentoring.
Broadview residents will become part of a senior living community embedded on the Purchase College campus. The Purchase College tagline ‘Think Wide Open’ will be the guiding principle for Broadview, offering opportunities to cross borders between generations, break down stereotypes and form mutually beneficial and lasting friendships.
Broadview will feature the Learning Commons (pictured above) which will be the fulcrum where students of all ages converge. Classrooms, galleries, studios, a coffeehouse and more will be housed within its expansive premises as Broadview’s hub. Meet, dine, take courses and attend lectures — each day here will present an open invitation to mingle with other residents, students and faculty in life-expanding relationships.
Market response to the new community has been strong with 83% of the independent living units reserved as of September 30, 2021.
In 2014 HJ Sims was selected as investment banker and has been actively involved in the development of the community and structuring this financing throughout the past seven years. In 2018 we raised $15 million in Bond Anticipation Notes for the initial development costs which supplemented a $5 million grant received by the Purchase College Foundation Housing Corporation. For more information about the 2018 financing, please read the full case study.
About the Bonds
- Series 2021A Bonds $213,805,000*
- Interest is exempt from Federal Income Tax, State of New York Income Tax and New York City Income Tax
- Minimum investment of $100,000 with $5,000 increments thereafter Qualified Institutional Buyers and accredited investors only
- Interest will be payable on January 1 and July 1 of each year, commencing July 1, 2022
- First principal payment: July 1, 2027
- Final maturity: July 1, 2056 (multiple maturities offered)
- Series 2021B Entrance Fee Principal Redemption Bonds $23,520,000*
- Interest is exempt from Federal Income Tax, State of New York Income Tax and New York City Income Tax
- Minimum investment of $100,000 with $5,000 increments thereafter Qualified Institutional Buyers and accredited investors only
- Interest will be payable on January 1 and July 1 of each year, commencing July 1, 2022
- Sized to 85% of Entrance Fee pool
- Anticipated to be redeemed July 1, 2025
- Series 2021C Entrance Fee Principal Redemption Bonds $58,730,000*
- Interest is exempt from Federal Income Tax, State of New York Income Tax and New York City Income Tax
- Minimum investment of $100,000 with $5,000 increments thereafter Qualified Institutional Buyers and accredited investors only
- Interest will be payable on January 1 and July 1 of each year, commencing July 1, 2022
- Sized to 75% of Entrance Fee pool
- Anticipated to be redeemed July 1, 2025
- Series 2021D Entrance Fee Principal Redemption Bonds $89,525,000*
- Interest is exempt from Federal Income Tax, State of New York Income Tax and New York City Income Tax
- Minimum investment of $100,000 with $5,000 increments thereafter Qualified Institutional Buyers and accredited investors only
- Interest will be payable on January 1 and July 1 of each year, commencing July 1, 2022
- Sized to 50% of Entrance Fee pool
- Anticipated to be redeemed July 1, 2024
- Series 2021E Taxable Entrance Fee Principal Redemption Bonds $6,665,000*
- Interest is NOT exempt from Federal Income Tax, State of New York Income Tax and New York City Income Tax
- Minimum investment of $100,000 with $5,000 increments thereafter Qualified Institutional Buyers and accredited investors only
- Interest will be payable on January 1 and July 1 of each year, commencing July 1, 2022
- Sized to 12% of Entrance Fee pool
- Anticipated to be redeemed October 1, 2023
Use of Bond Proceeds
Project
- Construction of the community
- Working Capital to fund pre-opening and opening expenses
- Debt Service Reserve Funds
- Capitalized Interest during construction
- Financing costs
Security
- Secured by a sub-leasehold mortgage on the property
- Secured by a gross revenue pledge
- Secured by debt service reserve funds
- Secured by an assignment of project documents
- Secured by a $10 million liquidity support fund
Key Financial Covenants
- 1.20x Debt Service Coverage Ratio; tested annually following stabilization
- 175 Days Cash on Hand/Liquidity Covenant; tested semi-annually following stabilization
- Marketing Covenant requiring quarterly step ups beginning with 78% at 12/31/21 rising to 90% by 6/30/24 or approximately 12 months after opening
- Occupancy Covenant requiring quarterly step ups beginning one full quarter after opening and rising to 90% in 4 years
- Cumulative Cash Loss Covenant: testing to begin the full fiscal quarter following the issuance of the Certificate of Occupancy and ending the first full fiscal quarter following stabilization.
We are currently accepting indications of interest for these tax-exempt bonds with an expected pricing the week of October 25, 2021, and anticipated settlement during early November. For more information including risks, please read the Preliminary Official Statement in its entirety. If you have interest in purchasing these bonds, please contact your HJ Sims financial professional as soon as possible.
*Subject to change
No dealer, broker, salesperson, or other person has been authorized to give any information or to make any representation other than those contained in the Preliminary Official Statement and, if given or made, such other information or representation should not be relied upon as having been authorized by the Issuer, the Borrower, or the Underwriters. The information set forth herein has been obtained from the Issuer, Borrower, and other sources that are believed to be reliable, but is not guaranteed as to accuracy or completeness by, and is not construed as a representation of, the Underwriters. The information contained herein is subject to change without notice. Under no circumstances shall this constitute an offer to sell or solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Any offering or solicitation will be made only to investors pursuant to the Preliminary Official Statement, which should be read in its entirety. Investments involve risk including the possible loss of principal. HJ Sims is a member of FINRA and SIPC, and is not affiliated with Purchase Senior Learning Community, Inc.