Why Small Businesses Matter: HJ Sims

HJ Sims ‘ Managing Principal, Bil Sims, was recently interviewed by the Fairfield Hamlethub. In the article, he discusses HJ Sims’ history, investment banking, bond and wealth management expertise. Read 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 [email protected].

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 | [email protected]

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 |  [email protected]

 

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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ALG Senior

Based out of Hickory, North Carolina, ALG Senior 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.

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The 18th Annual HJ Sims Virtual Late Winter Conference

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Our 18th Annual HJ Sims Late Winter Conference has gone virtual. This year, our conference will examine trends and developments critical to the success of senior living communities. An extensive and thoughtful agenda has been compiled to address financing methods, operating strategies and technological advancements that can help alleviate existing challenges and encourage continued growth in the non-profit and proprietary sectors of our industry. Throughout the conference, we will deliver a dynamic group of speakers and experts committed to sharing thought-provoking views and providing profound insight. Our series of keynote speakers, breakout sessions, panels and roundtables will deliver an invaluable forum for exchanging ideas and information, while also providing unique networking opportunities. The objective of the Late Winter Conference is for industry participants to learn and discuss each other’s strategies and solutions for success.

Conference Recap

 

We didn’t quite realize how turbulent it would be for us and our industry. Throughout it all, we persevered and coped with change, loss and the unexpected. Please enjoy this video as our team reflects on 2020 and looks forward to ‘seeing’ you soon.

This conference has been planned for senior living community owners/operators and management including board members, institutional investors, invited speakers as well as senior living industry partners who do not own, operate or manage a community.

For more information, please contact Rebecca Brady.

Conference Details:

OUR AGENDA
OUR SPEAKERS

We offer conference registrants Continuing Education credits with both NAB and NASBA. In order to obtain the credits, registrants must be present for the duration of the live webinar. Registrants who disconnect prior to the conclusion of the live webinar or view the webinar on-demand will not receive credits.

HJ Sims Remembers Susan Love

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HJ Sims was saddened to learn of the passing of Susan Love, Chief Executive Officer of Lions Gate in Voorhees, NJ on January 31, 2021 due to complications from COVID-19. Susan was with the organization for more than 23 years, joining in 1997 as a Director of Human Resources at the Jewish Geriatric Home in Cherry Hill before being named Healthcare Center Administrator when Lions Gate opened in 2006. She led the organization as CEO since 2016. In addition to her responsibilities at Lions Gate Susan was also a member of the Board of Trustees at LeadingAge NJ & DE and more recently was appointed to an advisory board within Seton Hall University’s Stillman School of Business.

Susan was associated with Jewish Senior Housing and Healthcare Services for the vast majority of her working career and was committed to providing an enjoyable and meaningful living environment to seniors and their families. She will be missed.