Your Portfolio Holds So Much Potential

Investment Income Expertise

With more than 85 years of expertise, we help you to reach your investment goals. Why just invest in bond funds when your portfolio holds so much more potential? We offer in-house holistic wealth management, examining equities, individual high-yield instruments, alternative investment strategies, portfolio management and more – helping you leverage the potential within the market, adjusting your portfolio to meet current conditions and better protect your assets.

Watch the video below to learn more.

What Do the Suez Canal and HUD Multifamily Mortgage Insurance Have in Common

Sims Mortgage Funding, Inc.

by Anthony Luzzi

At first glance, that is an odd pairing, but stay with us, please.

The Suez Canal has recently been prominent in the news when a container ship became stuck, blocking the Canal and creating a massive logjam of ships at both ends.

There has been unprecedented demand for HUD’s multifamily mortgage insurance, creating logjams of applications waiting in queues across the five Regional Centers.

Demand has been fueled by historic low interest rates, notwithstanding their recent spike; more favorable loan-to-value, loan-to-cost, and debt service coverage ratios than conventional sources; non-recourse provisions that are a rarity elsewhere in the capital markets; and long-term (up to 40 years), fully amortizing structures.

In addition, there has been an increase in the popularity of the Section 223(f) refinance program since HUD eliminated the three-year rule last March that required a property to be in service for that long before it was eligible. (Special note to healthcare facility owners and operators: a similar waiver to the three-year rule may be in the offing under the LEAN program. Stay tuned for more details.)

HUD has taken several positive steps to address the situation, ensuring transparency and consistency to the application process.

First, they have established a fairly uniform screening protocol for applications before they are placed into the queue. Once an application is screened for deficiencies, a lender has five business days to respond; if the response is acceptable, the application is formally placed into the queue.

Second, once the application is in the queue, it is given a targeted date to be assigned to a HUD underwriter. The queue is generally updated weekly, so lenders and borrowers can track the progress of their deal and manage expectations along the way.

Third, HUD has revised loan priorities for assignment in the queue. They now are:

  1. Low Income Housing Tax Credit (LIHTC) deals for new construction.
  2. LIHTC deals involving new credits.
  3. Opportunity Zone transactions with a qualified investment fund.
  4. Second-stage applications involving new construction.
  5. Other affordable or broadly affordable transactions.

Applications that do not meet the priorities are assigned on a first-in, first-out basis.

The new priorities took effect on March 18. We have seen immediate benefits as one of our applications became a Priority 4 and moved up to the top of the queue, gaining about three weeks in the schedule.

For more information, please contact Anthony Luzzi at aluzzi@simsmortgage.com.

Sims Mortgage Funding, Inc. originates, underwrites, and funds loans for Healthcare, Multifamily and Hospital projects. We have completed over $2 billion in HUD-insured transactions and are an approved LEAN (healthcare) and MAP (multifamily) lender.

HJ Sims Partners with Gurwin Healthcare System to Finance New Community with 55% Pre-sales

FOR IMMEDIATE RELEASE

CONTACT: Tara Perkins, AVP | 203-418-9049 | tperkins@hjsims.com

HJ Sims Partners with Gurwin Healthcare System to Finance New Community with 55% Pre-sales

FAIRFIELD, CT– HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce the successful closing in March 2021 of a $102.1 million financing for Fountaingate Gardens, an independent living community to be located in Commack, NY.

The Gurwin Healthcare System has been providing healthcare services to Long Island residents since 1988, through the Gurwin Jewish Nursing and Rehabilitation Center and the Fay J. Lindner Assisted Living Residences.  Gurwin Jewish Healthcare Foundation acquired land adjacent Fay J. Lindner Residences with the goal of completing the continuum of care through development of an independent living community to be known as Fountaingate Gardens. Working with Eventus Strategic Partners and Perkins Eastman, Fountaingate Gardens will initially add 129 independent living apartments and offer various services/amenities to its residents. Healthcare services will be provided at the Gurwin facilities contiguous to the community.

The Foundation donated $4 million to cover early expenses and loaned nearly $16 million for pre-development capital. It also donated the 10.5-acre site, appraised at $4.675 million. Total development costs, including the tax-exempt bonds, is approximately $113.8 million. The Foundation has committed $25.5 million to the project, providing confidence to investors and enabling the bonds to be issued with only 55% of the independent living units reserved with deposits from future residents.

The Foundation agreed to an Entrance Fee Guaranty Agreement, whereby it would advance up to $2.85 million, equal the entrance fees on six independent living units, in the event occupancy did not meet expectations upon opening. It also committed $10 million in the form of a Liquidity Support Agreement.

The $102,115,000 tax-exempt bond issue was divided into two short-term Entrance Fee Principal Redemption BondsTM series and a long-term bond series. The Series 2021C bonds ($31,000,000) will be repaid when occupancy reaches 48%. The Series 2021B bonds ($32,500,000) will be repaid when occupancy reaches 86%, expected to occur in 2023. The Series 2021A ($38,615,000) has a final maturity of 2056.

Sims closed on the Series 2021 Bonds with $10.5 million of the issue purchased by Sims’ Private Wealth Management clients and the remainder purchased by 28 institutional firms. The yield on the Series C bonds is 3.125%, the yield on the Series B bonds is 4.125% and the yield on the Series A bonds maturing in 2056 is 5.375%, demonstrating demand for the project and strength of the Gurwin name in the local market.

“With tremendous support from the Sims’ team, we successfully secured bond financing for Fountaingate, Gurwin Health’s new independent living community. Despite the challenges we faced the past year, with the impact of the pandemic, Sims found creative solutions, with a firm determination to bring this project to completion. Sims not only serves as a lender; they are a model for senior housing and development. They embrace the same goals that we have as a healthcare provider: caring, quality and excellence. Thank you, Sims for all you have done to help secure the future for our community,” said Stuart Almer, CEO, Gurwin Healthcare System.

Financed Right® Solutions—Andrew Nesi: 203.418.9057 |  anesi@hjsims.com

 

ABOUT HJ SIMS: Founded in 1935, HJ Sims is a privately held investment bank and wealth management firm. Headquartered in Fairfield, CT, Sims has nationwide investment banking, private wealth management and trading locations. Member FINRA, SIPC. Testimonials may not be representative of another client’s experience. Past performance is no guarantee of future results.  Facebook, LinkedIn, Twitter,  Instagram.

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HJ Sims Partners with StoneCreek Real Estate Partners to Facilitate $2.8 Million in Non-recourse, Low-interest Rate PACE Financing

CONTACT: Tara Perkins, AVP | 203-418-9049 | tperkins@hjsims.com

HJ Sims Partners with StoneCreek Real Estate Partners to Facilitate $2.8 Million in Non-recourse, Low-interest Rate PACE Financing

FAIRFIELD, CT– HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce the successful November 2020 closing of a $2.8 million PACE financing on behalf of StoneCreek Real Estate Partners (StoneCreek).

Based in Dallas, TX, StoneCreek is a collaboration of recognized and seasoned professionals with 50+ years of combined experience in the operations, development and ownership of successful senior living communities in TX, CO, and AZ.

The StoneCreek of Copperfield development is a new construction, 108-bed senior housing community that will include 74 assisted living units, 22 memory care units and 12 independent living cottages, providing local access to quality senior housing and care in the Copperfield area of Houston, TX. The community will be operated and managed by Civitas.

Founded in 2012, Civitas is a Fort Worth, TX based for-profit owner/operator of senior living communities in TX, FL, OK, NM, KY and AZ. Civitas has 100+ employees and manages 45+ senior living communities. In 2018, Sims provided $5.85 million in preferred equity to Civitas for the development of a new community in Red Oak, TX. In 2019 Sims completed a $72.32 million all-bond acquisition financing of three communities operated by Civitas in east TX.

While assisting StoneCreek in their search for financing alternatives, Sims proposed the use of Property Assessed Clean Energy (PACE) financing, a voluntary low-cost, non-recourse assessment placed on a property and based on the qualified energy efficiency, renewable energy, water conservation, residency improvements and related costs, contributed by the project. The program finances 100% of the energy efficiency, renewable energy, water conservation, resilience improvements and the related costs for ground-up new construction and renovations/retrofits up to 20% of the property’s appraised value. The financing is collected with regular local real estate taxes and assessment payments are amortized at a fixed rate throughout the useful life of the project.

Sims coordinated with StoneCreek, Civitas, the PACE provider and the Texas PACE Authority to obtain approval for PACE from the senior construction lender. Despite the atypical nature of the program, the financing team was able to assuage the concerns of the senior construction lender while navigating a variety of bureaucratic components. In place of typical mezzanine debt with interest rates between 12-15%, StoneCreek implemented the strategy PACE to fund $2.8 million in construction financing at an interest rate of 5.85%, a significantly lower interest rate.

StoneCreek, with the guidance of Sims, accessed $2.8 million in TX-PACE financing to lower their total cost of capital. The project is also supported by a $19.6 million construction loan from a traditional lending partner.

Financed Right® Solutions—James Rester: 901.652.7378 |  jrester@hjsims.com, Curtis King: 603.219.3158 |  cking@hjsims.com or Ryan Snow: 843.870.4081 | rsnow@hjsims.com

 

ABOUT HJ SIMS: Founded in 1935, HJ Sims is a privately held investment bank and wealth management firm. Headquartered in Fairfield, CT, Sims has nationwide investment banking, private wealth management and trading locations. Member FINRA, SIPC. Testimonials may not be representative of another client’s experience. Past performance is no guarantee of future results.  Facebook, LinkedIn, TwitterInstagram.

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HJ Sims Releases 2020 Corporate Social Responsibility Annual Report

The HJ Sims Corporate Responsibility program is designed to provide inspiration to our team, clients and to those we serve. Our mission is to:

  • Affect change and make a difference in our local communities by bringing awareness to and increasing support for economic, social and environmental well-being through coordinated corporate and regional efforts, including the donation of funds and/or volunteering staff time
  • Engage and inspire our staff by providing access, time and opportunities for giving back in meaningful ways

Read the HJ Sims 2020 Corporate Social Responsibility Report.

Download Your HJ Sims Documents into TurboTax

 

Innovative Financing Strategies Create Operational Cashflow during COVID-19

CONTACT: Tara Perkins, AVP | 203-418-9049 | tperkins@hjsims.com

 FAIRFIELD, CT– HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce the closing of a number of financings utilizing innovative financing strategies to create operational cashflow and advantageous results for senior living organizations.  

The Tax Cuts and Jobs Act of 2017 (the 2017 TCJA) had an enormous impact on the municipal bond market with the elimination of advance refundings. In 2018, Sims identified alternative strategies in the absence of advance refundings. Strategies included (1) Cinderella bank-held bonds, (2) taxable fixed rate advanced refundings, (3) forward refundings and (4) tender offers.

 

The use of Cinderella Bonds aims to secure an advance refunding that is at first taxable and converts to tax-exempt when permitted. It was applied to the financing of Marshes of Skidaway Island (The Marshes) in GA. In 2020, Sims approached The Marshes noting that a bank-placed Cinderella refinancing of outstanding fixed rate bonds would provide significant savings. Sims successfully closed the $47.1 million financing in December 2020, saving approximately $1.14 million annually and $15.36 million, in the aggregate, through a bank financing.

 

Westminster Communities of Florida, the largest provider of life plan communities in the State of FL, employed Sims to utilize a taxable fixed rate advance refunding of bonds issues to acquire Glenmoor after its successful turnaround. Sims analyzed bank-held and fixed rate bond advanced refundings, with a rapidly growing taxable fixed rate bond market. Westminster proceeded with a taxable advanced refunding and tax-exempt new money issuance to fund upcoming capital projects. Sims procured strong investor interest in the successful $107,360,000 transaction, achieving superior execution.

 

A Forward Refunding approach was utilized with Peconic Landing at Southold (Peconic) in NY. This strategy utilizes tax-exempt fixed rate bonds priced on a present-day basis, but not delivered and “closed” until ninety days prior to the call date of the refunded bonds. In 2019, Sims discussed potential refunding of Peconic’s bonds. The elimination of tax-exempt advance refundings meant immediate access to the tax-exempt market wasn’t possible, and the current BBB- rating made access to the taxable bond market impractical. Sims helped facilitate a forward refunding, securing pricing on a 20-year term on the refunding in late 2019 and saving Peconic $300,000+ in annual debt service with the ultimate settlement occurring in November 2020 amidst the COVID-19 pandemic.

 

A Tender Offer financing was implemented for the MD Obligated Group of Asbury Communities (Asbury). In 2018, Asbury MD Obligated Group’s capital stack was comprised of outstanding bonds placed directly with an institutional investor without an optional call feature and with a balloon payment. Sims negotiated an exchange of the bonds at a purchase price for a new series of bonds, extending the amortization, providing additional years of repayment and reducing the overall debt burden.

 

The 2017 TCJA changed the borrowing landscape for 501(c)(3) organizations. As the new administration and Congress identify and implement their fiscal policies, the Sims’ Financed Right® approach will ensure Sims will continue to assist clients in navigating the ever-changing market landscape, as we monitor market response to new laws and update the industry of developments and trends.

 

To learn details about each strategy, read the Sims Perspective, click here.

 

ABOUT HJ SIMS: Founded in 1935, HJ Sims is a privately held investment bank and wealth management firm. Headquartered in Fairfield, CT, Sims has nationwide investment banking, private wealth management and trading locations. Member FINRA, SIPC. Past performance is no guarantee of future results.  Facebook, LinkedIn, Twitter,  Instagram.

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HJ Sims Partners with The Bethel Methodist Home to Refinance High Interest Rate Acquisition Bonds

CONTACT: Tara Perkins, AVP | 203-418-9049 | tperkins@hjsims.com

HJ Sims Partners with The Bethel Methodist Home to Refinance High Interest Rate Acquisition Bonds

FAIRFIELD, CT– HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce the successful December 2020 closing of a $30,030,000 financing for The Bethel Methodist Home, d/b/a The Knolls, a non-profit CCRC (Continuing Care Retirement Community) located in Valhalla, NY. The community, which opened in 2002 under the name Westchester Meadows, offers independent living, assisted living and skilled nursing services on one campus.

In 2008, Westchester Meadows experienced financial difficulty, which culminated in a bankruptcy filing in 2015. The community was acquired in 2016 with the proceeds of tax-exempt and taxable bonds privately placed with a single bondholder. Under new management, The Knolls began to thrive. Occupancy levels increased from 57% in 2016 to 91% pre-COVID and management has invested $12 million in renovations. Management contacted Sims to assist in refunding the existing high interest rate debt.

In addition to reducing the interest rate, a portion of the 2016 debt was to mature in 2023 and needed to be restructured. The challenge was to create a level debt service structure that would avoid the 2023 balloon payment while achieving overall savings. Additionally, a non-call provision blocked refunding the debt until 2024. Management and Sims negotiated an early exit, but it required a tight timeline for closing. Sims structured the taxable bond series to mature in 10 years. To lower debt service and create level annual payments, the tax-exempt series does not begin to amortize until the taxable series is retired, and extends 11 years beyond the prior maturity.

The new bonds needed to be issued in December 2020, but redemption could not occur until January 2021. Despite the success of The Knolls, marketing bonds for a recently financially troubled community during COVID-19 posed challenges. Sims’ team specializes in identifying and communicating the underlying strengths of every financing; this expertise was leveraged in marketing and the refunding was completed in 90 days.

On December 23, 2020, Sims closed on the $30.03 million Series 2020 Bonds for The Knolls with 20%+ of the issue purchased by Sims’ Private Wealth Management clients. The yield on the 10-year taxable series was 6.125% and the interest rate on the 35-year tax-exempt series was 4.90%, below the 7.00% yield on the prior debt.

“25 years ago, I worked with Sims and was waiting for the day to do another financing with their superb team of professionals. Finally, that day came, and Andrew Nesi and his team did not disappoint. During COVID-19, with a very small window dictated to us by our current lender and the holiday season upon us, we successfully met all deadlines and refinanced The Knolls through a combination of tax-exempt and taxable bonds, saving close to a $1,000,000 per year in interest and fees. Andrew recognized the strength of this community in the mere four years this campus has been part of Bethel, and now through this refinancing, strengthened our position. I look forward to many future endeavors with HJ Sims” – Beth Goldstein, CEO, The Bethel Methodist Home.

Financed Right® Solutions—Andrew Nesi: 203.418.9057 | anesi@hjsims.com

ABOUT HJ SIMS: Founded in 1935, HJ Sims is a privately held investment bank and wealth management firm. Headquartered in Fairfield, CT, Sims has nationwide investment banking, private wealth management and trading locations. Member FINRA, SIPC. Testimonials may not be representative of another client’s experience. Past performance is no guarantee of future results. Facebook, LinkedIn, Twitter, Instagram.

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HJ Sims Provides Financing for Expansion for Jefferson’s Ferry; Completes Forward Delivery Bond Issue for Peconic Landing

FOR IMMEDIATE RELEASE

December 10, 2020

CONTACT: Tara Perkins, AVP | 203-418-9049 | tperkins@hjsims.com

HJ Sims Provides Financing for Expansion for Jefferson’s Ferry; Completes Forward Delivery Bond Issue for Peconic Landing

FAIRFIELD, CT– HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce the successful closing of a November 2020 financing in the amount of $88,975,000 for Jefferson’s Ferry, a CCRC (continued care retirement community) in Brookhaven, NY. In November 2020, Sims also closed a $22.3 million forward delivery bond issue as part of a December 2019 financing for Peconic Landing, a CCRC located in Peconic, NY.

Sims underwrote the initial construction bond financing in 1999 for Jefferson’s Ferry, followed by a refunding of this financing in 2006. For 2020, Jefferson’s Ferry’s Journey Toward Renewal project includes a comprehensive improvement and expansion of the residential and healthcare space. The project incorporates construction of a 20-unit building dedicated to assisted living residents with dementia, construction of 60 additional independent living apartments as extensions to the existing apartment buildings, and numerous improvements to the Community Center to enhance the residents’ lifestyle.

The financing was structured as two series of tax-exempt bonds with the long-term bond series featuring a 35-year final maturity and a 5-year call feature, providing future refunding flexibility. The short-term Entrance Fee Principal Redemption Bonds® (EFPRBs) are expected to be repaid within 3 years from entrance fees paid by new independent living residents. Principal amortization on the long-term bonds is deferred until after the existing debt matures in 2036. The bonds were rated BBB (Stable) by Fitch. The yield on the EFPRB’s was 1.75%, while the long-term bonds maturing in 2055 have a yield of 3.75%.

“We are so pleased to secure bond financing for our Journey Toward Renewal expansion and renovation project. The Sims’ team, led by Andrew Nesi, did an outstanding job of executing the transaction quickly in an uncertain market due to the COVID-19 pandemic and presidential election. Our long-term debt service costs came in under what we had projected and funds secured will provide the capital needs to reposition our community for the future. Job well done,” said Bob Caulfield, President/CEO of Jefferson’s Ferry.

HJ Sims Successfully Completes Forward Delivery Bond Issue for Peconic Landing

As part of a $24.3 million bond issue in December 2019 HJ Sims issued Forward Delivery bonds to secure favorable interest rates and debt service savings for long-standing client Peconic Landing. While Peconic Landing had a series of high interest rate bonds outstanding, tax law precluded a refunding of those bonds until the call date in 2020. Sims structured a series of bonds whereby the interest rate was fixed in 2019, but not “delivered” or closed until eleven months later.

Peconic Landing was one of the first CCRCs in the country to experience COVID-19. Sims worked with management on a robust disclosure plan to keep investors apprised of developments. The management team was at the forefront of implementing strict protocols to minimize the impact of the virus on residents and the organization benefitted from strong capital reserves and government assistance programs to weather the challenges.

Financed Right® Solutions—Andrew Nesi: 203.418.9057 |  anesi@hjsims.com

 ABOUT HJ SIMS: Founded in 1935, HJ Sims is a privately held investment bank and wealth management firm. Headquartered in Fairfield, CT, Sims has nationwide investment banking, private wealth management and trading locations. Member FINRA, SIPC. Testimonials may not be representative of another client’s experience. Past performance is no guarantee of future results.  Facebook, LinkedIn, TwitterInstagram.

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Giving Tuesday

Join the Movement– It’s GivingTuesday, the global day of giving. Please consider contributing to HJ Sims’ Corporate Social Responsibility partner, Gift of Life, to help find stem cell donors like Sterling who flew 5,000 miles mid-pandemic to save the life of someone she never met! Help Gift of Life reach their goal. Thank you.