HJ Sims Expands Investment Banking Team to West Coast, Midwest; Grows Private Client Team in Florida, Puerto Rico

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

HJ Sims Expands Investment Banking Team to West Coast and Midwest; Grows Private Client Team in Florida and Puerto Rico 

FAIRFIELD, CT HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935is pleased to announce the addition of two senior bankers as the firm expands with the opening of new offices in the Midwest and on the west coast. 

Lynn Daly joins Sims as Executive Vice President in its new Chicago location with 30+ years of experience working with nonprofit organizations in financing. Daly was acting head of Senior Living Investment Banking at BB&T Capital Markets, where she managed BB&T’s senior living relationships in the Midwest, facilitating financings of $1.3+ billion. Prior to BB&T Capital Markets, Daly spearheaded the Catholic Initiative within senior living investment banking for Ziegler, and served as Head of Allied Irish Bank’s Midwest region. Daly earned a BS in economics from Kalamazoo College, and an MBA from Northwestern University’s Kellogg Graduate School of Management.  

“We are so thrilled to welcome Lynn Daly to the HJ Sims family. Lynn is a well-respected and nationally recognized thought leader in the senior living sector and the perfect leader to grow our presence in the Midwest and to work with our team as we continue to expand throughout the US. Lynn’s extensive experience as both a senior commercial and investment banker, along with her integrity, deep knowledge, and client-centered approach, are vital characteristics and values that will guide our clients and business partners through these challenging times,” said Aaron Rulnick, Managing Principal, Sims. 

Brady Johnson joins Sims as Senior Vice President in its new west coast office, in Orange County, CAPreviously with Hunt Real Estate Capital, Johnson was responsible for real estate debt originations for seniors housing and healthcare properties. He helped establish the firm’s seniors housing real estate lending platform, including a proprietary bridge loan program and expansion of the firm’s agency and HUD financing capabilities. Johnson closed the firm’s first Fannie Mae seniors housing loan, followed by its first seniors housing Freddie Mac loan. Prior to joining Hunt, Johnson served as Director of Seniors Housing & Healthcare at RED Capital Group, and served with GE Capital in various commercial finance roles. Johnson earned an MBA from Thunderbird School of Global Management and Bachelor’s degrees (Economics and Spanish) from the University of Utah.  

“We are excited to welcome Brady Johnson to the Sims family. Brady will help establish our west coast presence serving for-profit and non-profit senior living clients. Brady’s broad experience in FHA, Fannie Mae, Freddie Mac, mezzanine and senior housing financeand his focus on achieving the best solutions for his clients make him a great asset,” said Jeffrey Sands, Managing Principal, Sims. 

In late 2019, Sims expanded its Private Client team, adding aoffice in Jupiter, FLhousing a three-person advisory team, as well as a senior partner of Sims Energy. HJ Sims’ Puerto Rico private client office moved its Guaynabo headquarters to a larger space iMetro Office Park. The spacious quarters enable the team to better host clients, while the expansion reinforces Sims’ established presence and growth on the island. 

HJ SIMS: Founded in 1935HJ Sims is a privately held investment bank and wealth management firm, headquartered in Fairfield, CT, with nationwide locations. www.hjsims.com. Investments involve risk, including loss of principal. This is not an offer to sell or buy any investment. Past performance is no guarantee of future resultsMember FINRA, SIPC. FacebookLinkedInInstagram Twitter. 

HUD Business During a Pandemic

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The COVID-19 virus is having a profound impact on the nation, temporarily, but dramatically, affecting how we live and work. The virus is roiling the capital markets, and policies imposed to slow its spread have ground the economy to a crawl in many quarters. The mortgage banking team at Sims Mortgage Funding has taken to working remotely, linked to each other, our clients and our consulting and business partners electronically, and we will continue to operate this way until the “all clear” sign is announced.

In times of crisis there also is opportunity, and the COVID-19 virus proves no exception. Interest rates for HUD-insured loans have fluctuated wildly over the past few weeks, but the gradual tightening of spreads over the yield on 10-year US Treasuries and steps by the Federal Reserve to ensure liquidity into the government-backed securities markets, improving sale conditions, have created a very favorable climate for interest rates on HUD-insured loans.

How favorable? We are seeing indications of interest around 2.60% for HUD-insured refinancing loans and about 3.30% for construction and substantial rehabilitation loans. Please note that these rates exclude HUD’s annual mortgage insurance premiums, which range from .25% to .77% depending upon such factors as the project type, loan purpose, affordability restrictions, etc. These are terrific rates, reminiscent of what we saw in the HUD-insured loan markets during the Great Recession in 2008.

HUD has taken positive steps to remain operational by working remotely during the COVID-19 crisis. They have established procedures to process mortgage insurance applications and are working with our trade associations and third-party report providers to develop protocols for site and building inspections and appraisals. HUD also has developed arrangements for closings remotely – we’ll soon see how this works as we have a multifamily affordable refinance loan in the Southwest Region just starting the closing process.

HUD’s goal is to conduct business as usual during these difficult times – however, it remains to be seen how the negative economic conditions resulting from a national shutdown of the economy and the effects of COVID-19 on the senior housing sector will impact HUD’s review of new mortgage insurance applications. We are hearing anecdotally that HUD is contemplating increased reserves and other escrows for market-rate construction loans, and potential adjustments to project valuations to account for the impact of COVID-19. More to come there.

One of the central missions of HUD’s mortgage insurance programs is to provide credit support and liquidity to the housing and healthcare/senior capital markets during times of economic difficulty. Given the magnitude of the economic dislocation in the wake of the COVID-19 virus, HUD is expected to play an integral, and necessary, component in our national recovery.

We wish you and your families the best and hope that you are staying safe.

An Update on COVID-19 (Coronavirus)

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As news on the coronavirus (COVID-19) continues to unfold following the declaration of a national emergency, we wanted to stay in touch regarding key details as well as how we may assist you during this unprecedented time. We also recommend following the Centers for Disease Control and Prevention (CDC) and World Health Organization (WHO) for the latest information.

In addition to previous recommendations regarding vigorous hand washing for at least 20 seconds and staying home when feeling ill, recent recommendations have centered on “social distancing” and “flattening the curve.”

Designed to slow down the spread of the virus, social distancing is a public health practice that involves staying at least six feet away from others and avoiding handshakes, hugs or other forms of physical contact. With the aim of preventing the public–-including those who are not yet showing symptoms-–from spreading COVID-19 or other illnesses, it also entails cancellations and closures, as evidenced by the number of school closures and event cancellations. As of March 15, the CDC recommended that gatherings of 50 people or more be avoided for the next eight weeks—it is important to realize this may change by publish date of this article as this is a very fluid situation.

To that end, social distancing can help flatten the curve or reduce spikes in the number of new coronavirus cases, which can stress an already taxed healthcare system. A flattened curve can decrease the spread and lead to better health outcomes for those who do fall ill.

If you are concerned about your investments and the recent market fluctuations, please reach out to your HJ Sims financial advisor at any time. Our team recommends diversifying and investing for the long-term, and we are happy to discuss individual strategies.

Finally, while it is important to stay informed, too much news can also be overwhelming. Do your best to take breaks and take care of yourself.

We want to hear from you

Do you have a topic suggestion for an article in a future issue of Sims Insights newsletter? We would love to hear from you. Share your ideas here.

 

The material presented here is for information purposes only and is not to be considered an offer to buy or sell any security. This report was prepared from sources believed to be reliable but it is not guaranteed as to accuracy and it is not a complete summary of statement of all available data. Information and opinions are current up to the date of publication and are subject to change without notice. The purchase and sale of securities should be conducted on an individual basis considering the risk tolerance and investment objective of each investor and with the advice and counsel of a professional advisor. The opinions expressed by Ms. Morrow are strictly her own and do not necessarily reflect those of Herbert J. Sims & Co., Inc. or their affiliates. This is not a solicitation to buy or an offer to sell any particular investment. All investment involves risk and may result in a loss of principal. Investors should carefully consider their own circumstances before making any investment decision.

Prevention of Coronavirus

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With coronavirus or COVID-19 spreading to more cities, states and countries, awareness and concern also continue to grow. No matter where you live or what your age, it is important to take steps toward protection.

Following are several simple steps you can take to prevent illness and bolster your health:

  • Wash your hands for at least 20 seconds. Even regular hand washers often miss this mark – 20 seconds is about the time it takes to sing “happy birthday” twice. Determine a song of your choice or follow the second hand on your watch to ensure you are washing with soap and warm water for at least 20 seconds. If soap and water are not available, you can use an alcohol-based hand sanitizer that contains at least 60 percent alcohol.
  • Avoid close contact with anyone who is sick, no matter what the illness. If you are caring for someone who is sick, try to wear a mask. The CDC only recommends masks for those who are ill or caring for someone who is sick. Stay home if you feel unwell.
  • Avoid touching your face, particularly your eyes, nose and mouth. Also, avoid shaking hands for the duration of the virus.
  • Clean and disinfect surfaces regularly – this can include commonly touched areas such as doorknobs, light switches, computers, handles, phones, bathroom sinks, counters, toys and more.
  • Take care of your mental and physical health. Make sure you are eating well, drinking plenty of fluids, exercising and doing something to relieve any stress you may feel regarding the virus. Limit screen time, particularly if you find yourself getting overwhelmed by news or social media messages.

With symptoms including fever, cough, shortness of breath and body aches, coronavirus can be confused with influenza. Please contact your doctor’s office with any concerns.

To prepare your household, you can gather a two-week supply of non-perishable food staples and household supplies such as toilet paper, laundry supplies and diapers. It is also recommended to have at least a 30-day supply of prescription medications and other common health supplies (cold medicine, pain relievers) on hand. You may also want to create a plan in case of closure at work, daycare or school.

In addition, you can visit the Centers for Disease Control and Prevention (CDC) site for ongoing updates and information.

We want to hear from you

Do you have a topic suggestion for an article in a future issue of Sims Insights newsletter? We would love to hear from you. Share your ideas here.

 
The material presented here is for information purposes only and is not to be considered an offer to buy or sell any security. This report was prepared from sources believed to be reliable but it is not guaranteed as to accuracy and it is not a complete summary of statement of all available data. Information and opinions are current up to the date of publication and are subject to change without notice. The purchase and sale of securities should be conducted on an individual basis considering the risk tolerance and investment objective of each investor and with the advice and counsel of a professional advisor. The opinions expressed by Ms. Morrow are strictly her own and do not necessarily reflect those of Herbert J. Sims & Co., Inc. or their affiliates. This is not a solicitation to buy or an offer to sell any particular investment. All investment involves risk and may result in a loss of principal. Investors should carefully consider their own circumstances before making any investment decision.

How to Cultivate a Green Thumb This Spring

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Gardening and getting your hands a little dirty by digging in the soil can be an incredibly healthy hobby: Gardening can reduce depression and anxiety, help people lose weight, and increase quality of life and overall sense of community, according to Science Direct.

Not everyone, however, is a natural-born gardener – it takes time and trial and error. If your previous efforts at growing plants and flowers, or fruits and vegetables, have been less-than fruitful, there is hope.

Check out the following helpful hints for cultivating your very own green thumb:

  • Relax. Even the best gardeners in the world have made plenty of mistakes. Recognize that Mother Nature can be fickle, weather is not predictable and perfection is not really the goal. Rather, half the fun can be in the planting, watering and watching.
  • Plan. Depending on where you live, you will likely have more success with plants that grow well in that area. The National Gardening Association shares a zone map that can help you learn more about your location and what might grow well there. You can also talk to others about hardy plants that tend to thrive where you live.
  • Enlist help. Invite family or friends to contribute to your garden – kids are often more willing to eat vegetables they have grown themselves – or check out local community gardens. You can quickly double your expertise when you engage others in your planting and growing efforts.
  • Keep it simple. You can consult with a local nursery center to determine the best options for your garden. Peppers, tomatoes, basil, onions and chard as well as sunflowers and dahlias are often great starter choices. You can always expand in the future.
  • Gear up. A shovel and gardening gloves are good tools to have on hand. Garden scissors and a small trowel may also come in handy. Perhaps, some knee pads will offer comfort when you are digging in the dirt, planting seeds and tending to the garden.
  • Water and weed. You will not need to dig into the soil every day, but pay attention to how your garden is looking and growing. Ensure plants are watered regularly and that weeds are removed at least weekly. A little maintenance can go a long way towards creating an attractive and functional garden.

Finally, you can always consult with local experts at the growing number of farmer’s markets, nurseries or gardening groups. Many of these green thumbs would love the chance to share their passion with you and offer more tips on growing a gorgeous garden this year.

We want to hear from you

Do you have a topic suggestion for an article in a future issue of Sims Insights newsletter? We would love to hear from you. Share your ideas here.

 
The material presented here is for information purposes only and is not to be considered an offer to buy or sell any security. This report was prepared from sources believed to be reliable but it is not guaranteed as to accuracy and it is not a complete summary of statement of all available data. Information and opinions are current up to the date of publication and are subject to change without notice. The purchase and sale of securities should be conducted on an individual basis considering the risk tolerance and investment objective of each investor and with the advice and counsel of a professional advisor. The opinions expressed by Ms. Morrow are strictly her own and do not necessarily reflect those of Herbert J. Sims & Co., Inc. or their affiliates. This is not a solicitation to buy or an offer to sell any particular investment. All investment involves risk and may result in a loss of principal. Investors should carefully consider their own circumstances before making any investment decision.

HUD Goes All-In on OZs

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By Anthony Luzzi

The 2017 Tax Cuts and Jobs Act created a new tax incentive known as Qualified Opportunity Funds, to spur new investment in low-income communities located in certain Census Tracts that are designated by the Secretary of the Treasury as Opportunity Zones, or OZs. There are approximately 8,700 OZs nationwide and in the US Territories, including Puerto Rico, where approximately 94% of La Isla Encantada qualifies.

We’ll leave it up to the legions of lawyers and accumulation of accountants to describe the mechanics of investing in Opportunity Funds and how private investments in these OZs are eligible for potentially significant capital gains tax relief. But we can tell you about some of HUD’s recent initiatives to promote development and investment in OZs through its multifamily mortgage insurance programs.

HUD has designated specialized Senior Underwriters in each region of the country to process applications for mortgage insurance for properties in qualified OZs. This will ensure expert and expedient review of these applications by HUD underwriters.

Properties located in qualified OZs will be eligible for reduced mortgage insurance application fees. Market-rate and affordable deals will see their application fees reduced by 33%, from .3% to .2%. “Broadly affordable” deals will have a steeper 66% discount on its application fees, as they will be reduced from .30% to .10%. What’s a broadly affordable project? They have at least 90% of units covered by a Section 8 Project Based Rental Assistance (PBRA) contract; or at least 90% of its units covered by an affordability use restriction under the Low-Income Housing Tax Credit program.

Last summer, HUD Secretary Carson announced that the Section 220 mortgage insurance program, historically used to finance mixed-use rental projects in specially-designated “downtown” urban-renewal areas and other areas where local governments have undertaken designated revitalization activities, will now be available in all of the approximately 8,700 Opportunity Zones.

The introduction of Section 220 into all Opportunity Zones has the potential to be a game-changer, as HUD expects it will promote more economic activity, both commercial and residential, in low-income, economically distressed areas that have not experienced a great deal of growth in recent years.

Section 220 underwrites similarly to HUD’s “mainstream” Section 221(d)(4) program for multifamily new construction and substantial rehabilitation. Both have 40-year loan amortizations, loan-to-cost ratios ranging from 85% to 90%, and debt service coverage ratios from 1.11 to 1.17. Both programs limit the maximum amount of commercial space to 25% of the total project area, but under Section 220, the maximum amount of commercial income in a project can be 30% of the total income, double the Section 221(d)(4) limit. In addition, under Section 220, 20% of the cost of project’s non-residential components can be added to the calculation of the mortgage based on statutory unit limitations; the Section 221(d)(4) limit had been 15% until recently, when it was increased to 20%.

We applaud the intent of the Tax Cuts and Jobs Act to spur economic development in disadvantaged communities, and HUD’s efforts to maximize the impact of the Act through its multifamily mortgage insurance programs. We are currently developing a mortgage insurance application for a Louisiana rental project in an urban area that also is designated an OZ. Keep tuned to this space for updates on this deal.

HJ Sims Partners with Duncan-Williams to Finance Start-up Construction of The Farms at Bailey Station, an RCA Community

CONTACT: Tara Perkins, Assistant Vice President, Marketing Communications, HJ Sims | 203-418-9049 | tperkins@hjsims.com

Michelle Vincent, Retirement Companies of America | 901-794-2598 | mvincent@retirementcompanies.com

Gary Lendermon, Duncan-Williams, Inc. | 901-260-6847 | glendermon@duncanwilliams.com

 HJ Sims Partners with Duncan-Williams to Finance Start-up Construction of The Farms at Bailey Station, an RCA Community

FAIRFIELD, CT—HJ Sims (Sims) is pleased to announce the completion of a $219,250,000 financing for the new construction of The Farms at Bailey Station (The Farms), a Life Plan Community (LPC), located in Collierville, TN. The Farms is a sister community of Kirby Pines Estates (Kirby), located in Memphis, TN, which was voted Best Retirement Community in Memphis and the Mid-South. The Farms is designed to offer city and country living within a luxurious setting. With customizable homes, a menu of amenities, and the security of covered long-term care, The Farms will offer residents effortless, elegant living. Kirby and The Farms are run by Retirement Communities of America (RCA), a mission-driven organization with a 35+-year legacy of faith-based caring.

Duncan-Williams, Inc. (Duncan) served as co-manager on the financing. Founded in 1969, Duncan is a full-service broker dealer and nationally recognized investment banking firm headquartered in TN. The Farms is 70% pre-sold. Rees Architects and Renaissance Group served as architects; Dalhoff Thomas design studio of Memphis assisted as landscape architect. Linkous served as general contractor.

“The Farms has been a labor of love. RCA assembled a team that worked tirelessly toward a successful closing. The Sims team brought expertise, creativity, commitment and flawless execution with Duncan-Williams, and Greystone Communities. The team took a personal interest, and was sensitive and responsive to the complexities of the project and the desires of our Board Members. They successfully facilitated the financing and delivered a favorable rate structure, while with the Sims and Duncan-Williams team executed placement of the bonds masterfully,” Michelle Trammell-Vincent, Senior Vice President, RCA.

Sims structured a 40-year financing to lower annual debt service (the only 2019 senior living financing with this amortization length). The financing included non-rated, fixed rate bonds and bank purchased draw-down bonds for the independent living apartments, assisted living, memory care and skilled nursing portion of the project. The Community also obtained a bank revolving credit facility for the garden home portion of the community. Involving banks saved the project $6+ million in carried interest. Sims structured a Liquidity Support Agreement and Coverage Support Agreement to enhance credit and security for investors. Sims and Duncan placed the bonds with 20 institutional investors and $17+ million with accredited individual investors.

“We were honored to work with The Farms to provide its complete financing. The LPC will be the most up-to-date in its market and will be a beautifully landscaped campus of garden homes, apartments, assisted living, memory care and skilled nursing,” William Sims, CEO and Managing Principal, Sims.

Chauncey Lever of Foley Lardner LLP, John Stevens of Iberia Bank, Charlie Trammell and Michelle of Retirement Companies of America, David Williams of Butler Snow LLP, Jimmy Rester of HJ Sims, Michael Bradshaw of Butler Snow LLP, and Abe Benavides of McCall, Parkhurst & Horton LLP.

Financed Right® solutions: James Rester at 214-558-7175 or jrester@hjsims.com

ABOUT HJ SIMS: Founded in 1935 on Wall Street, HJ Sims is a privately held investment bank and wealth management firm. HJ Sims is known as one of the country’s oldest underwriters of tax-exempt and taxable bonds, having raised $28+ billion for projects throughout the US. The firm is headquartered in Fairfield, CT, with nationwide investment banking, private wealth management and trading locations. Visit www.hjsims.com/ourstory. Investments involve risk, including the possible fluctuation of principal. Past performance is no guarantee of future results. HJ Sims is not affiliated with Duncan-Williams, RCA or The Farms at Bailey Station. Member FINRA, SIPC. Follow HJ Sims: FacebookLinkedInInstagram and Twitter.

Axxcess Platform Announces Partnership with HJ Sims

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HJ SIMS: Tara Perkins, AVP Marketing Communications, tperkins@hjsims.com | 203-418-9049

AXXCESS PLATFORM: Alexis Brock, Marketing and Communications, alexis@axxcesswealth.com | 866-217-5607

AXXCESS PLATFORM ANNOUNCES PARTNERSHIP WITH HJ SIMS

FAIRFIELD, CT— Axxcess Platform (Axxcess), an enterprise turnkey asset management platform, announced today a partnership with HJ Sims, a privately held investment bank and wealth management firm headquartered in Fairfield, CT. HJ Sims and Axxcess have partnered  to deliver a suite of portfolio management technology for the HJ Sims private client wealth management team.

“We are thrilled about partnering with HJ Sims to equip their team with our asset management solution to help them continue to deliver a rich client experience. We are confident the HJ Sims team will find incredible value in our platform, which offers the tools and resources needed in one technology stack, further optimizing their client management approach,” says Michael Seid, CEO of Axxcess.

Founded in 1935 on Wall Street, HJ Sims is entrusted with $2.3 billion of assets under management. Herbert J. Sims, founder, was an innovative and revolutionary thinker with an imaginative and pioneering spirit. During the Great Depression, Herbert recognized opportunity to create jobs and support important infrastructure, such as county roads, natural gas systems, and bridges and causeways, through municipal financings. Today, HJ Sims supports individual investors, organizations, municipalities and institutions with expert wealth management, trading services and investment banking solutions.

HJ Sims will utilize the Axxcess platform as an end-to-end portfolio management tool, allowing their wealth management experts to serve their clients’ financial needs with a seamless and scalable approach–including aggregating accounts, identifying risk, analyzing holdings, modelling and blending investment strategies, and accessing third-party directed solutions.

“Partnering with Axxcess by incorporating their customized technology and sophisticated interface via a first-class portfolio management tool will help our advisory team deepen their client relationships. The comprehensive technology platform provided by Axxcess empowers us to revolutionize our client experience with open architecture and access to best in breed money managers,” said Dan Mullane, Managing Principal of HJ Sims.

ABOUT AXXCESS PLATFORM

Axxcess integrates third party investment managers alongside real estate, private equity, and hedged investments to create a unique UMA/TAMP Platform to transform your Wealth Management practice. The Axxcess Platform is built for the experienced Advisor looking to improve its current RIA Platform, or as an operational solution for a high caliber professional thinking of going independent and seeking a seamless transition. We offer Advisors open architecture, with a full array of wealth management and investment advisory services to move your practice upstream. Axxcess combines true alternatives like private equity, private credit, hedge funds and directed real estate alongside traditional SMA strategies.

Our focus is on 3c(1) and 3c(7) clients and the Advisors that serve them. If you are interested in providing a platform of services designed to move your business upscale, Axxcess is your solution. Contact: 866-217-5607 |https://axxcessplatform.com/

ABOUT HJ SIMS

Founded in 1935 on Wall Street, HJ Sims is a privately held investment bank and wealth management firm. HJ Sims is known as one of the country’s oldest underwriters of tax-exempt and taxable bonds, having raised $28+ billion for projects throughout the US. The firm is headquartered in Fairfield, CT, with nationwide investment banking, private wealth management and trading locations. Visit www.hjsims.com/ourstory. Visit www.hjsims.com/ourstory. Follow HJ Sims on FacebookLinkedInInstagram and Twitter.

Investments involve risk, including the possible fluctuation of principal. Past performance is no guarantee of future results. HJ Sims is not affiliated with Axxcess Wealth Management. Member FINRA, SIPC.

Understanding TPAs-the Transfer of Physical Assets

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Originating and underwriting HUD-insured loans for multifamily and healthcare projects is Sims Mortgage Funding’s primary activity, but sometimes our experience and success in that space leads us to other business opportunities. Such was the case earlier this month when Sims Mortgage Funding, Inc. (“SMF”) completed two consulting assignments in connection with the sales by our clients of two nursing homes in New Jersey and a hospital in California.

Both transactions involved the assumption of six existing HUD-insured loans that we originated in 2009, 2011, 2012 and 2017 and are spread across the three properties. Yes, HUD has an acronym to describe that process – TPA, which stands for Transfer of Physical Assets.

Under a TPA, HUD and the lender servicing the loan effectively “underwrite” the purchaser who becomes the new borrower on the assumed debt. Part of that process is to analyze the background, qualifications, and experience of the purchaser; the financial and operational projections of the property after the sale; and, the transfer of assets and discharge of liabilities at closing. SMF provided technical assistance in the development of the TPA applications relating to the new borrowers and helped shepherd the proposals through the HUD approval process and on to closings.

With the TPAs now completed, HUD has two new and accomplished healthcare organizations in their insured loan portfolio, and the borrowers have assumed long-term, fixed rate, non-recourse loans at competitive interest rates.

Subsidiaries of Hackensack-Meridian Health, the largest hospital system in New Jersey, acquired interests in Prospect Heights Care Center, a 196-bed nursing home in Hackensack, New Jersey, and West Caldwell Care Center, a 180-bed nursing home in West Caldwell, New Jersey.

On the west coast, a subsidiary of AHMC Healthcare acquired Parkview Community Hospital Medical Center, a 193-bed acute care facility in Riverside, California. AHMC, a for-profit organization, owns and operates seven “safety net” hospitals in Southern California. The two loans AHMC is assuming on Parkview will be their first HUD-insured loans – we certainly hope that they will not be their last!