A regional, owner, operator and developer of seniors housing communities, with over 15 years of experience, recently partnered with HJ Sims to close on the acquisition of a senior living community in Utah.
Continue reading
Our team of market analysts have a singular mission: to help you make better investment decisions. Read the latest market commentary.
Continue reading
$60,370,000*
PENNSYLVANIA ECONOMIC DEVELOPMENT FINANCING AUTHORITY
$60,370,000* Series 2021 Long-Term Fixed Rate Bonds
(Pennsylvania Economic Development Financing Authority Revenue Bonds / Presbyterian Senior Living Project)
HJ Sims is pleased to serve as sole underwriter for Presbyterian Homes Obligated Group (the “Obligated Group”) consisting of: Presbyterian Homes, Inc.; Cathedral Village; Presbyterian Homes in the Presbytery of Huntingdon; The Long Community, Inc.; Quincy Retirement Community; and PHI Investment Management Services, Inc. (collectively, the “Obligated Affiliates”). The Obligated Affiliates own, operate, and manage 12 continuing care retirement communities, three stand-alone independent living facilities, and two stand-alone personal care homes – all located throughout Pennsylvania, Ohio and Delaware.
The Series 2021 bonds will (1) refund certain outstanding bank debt; (2) provide approximately $38MM in proceeds to fund certain capital improvements to the Communities; and (3) pay for costs of issuance.
The not-for-profit organizations that make up the obligated group are all Pennsylvania-based not-for-profit senior living communities, each of which are 501(c)(3) organizations.
Virtual Site Visits/Tours
Learn more about each of the Presbyterian Senior Living communities and locations throughout Pennsylvania, Maryland, Ohio, and Delaware.
About the Bonds
Project Highlights:
Security
Key Financial Covenants
We are currently accepting indications of interest for these tax-exempt bonds with an expected pricing the week of June 21, 2021, and anticipated settlement during the week of July 14, 2021. 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. Investments involve risk, including the possible fluctuation of principal. Investments involve risk including the possible fluctuation of principal. Past performance is not indicative of future results. The purchase and sale of securities should be conducted on an individual basis considering the risk tolerance and investment objectives of each investor and with the advice of counsel of a professional advisor. HJ Sims is an independent financial services firm and is not affiliated with Presbyterian Senior Living, Presbyterian Homes Obligated Group or any of its related entities or any other organization referred to herein.
HJ Sims arranges $42M financing package for campus expansion; read more in the HJ Sims’ Newsroom; read more in Senior Housing News.
Middle Market Success Stories
Learn from the Leaders
Session Date & Time: Tuesday, June 29, 2021 from 1:00pm-2:00pm ET
Thought Leadership and Webinar Description:
We took a critical look at the increasing pressure on senior living providers to meet the demands of the emerging middle market. Learn what the Baby Boomer generation and their families are looking for when exploring their options in the middle market housing and services. During this discussion, we reviewed the strategic significance of extending housing offerings to the middle market. While many providers are considering entering in the middle market arena, few have taken the leap due to their inability to find an operating and financial model that ‘works’ with the lower monthly rental rates. Featured speakers shared case studies of their own middle market senior housing models identifying key success factors for development, pricing and operating models.
Key Takeaways:
William Pettit
President, Merrill Gardens
William “Bill” Pettit is the president of the R. D. Merrill Company with responsibility for Merrill Gardens and sister company Pillar Properties. Merrill Gardens is one of the most respected assisted living operators in the country with 70 communities in 20 states. Pillar Properties is an award-winning owner and operator of multi-family housing with 1,700 units in operation and the developer for Merrill Gardens new communities.
Bill joined the R. D. Merrill Company in 1992 after 18 years in the banking industry. He was instrumental in the formation of the company, starting with one community in 1993. He directed the rapid growth and timely execution of acquisitions and developed the policies that speak to the Merrill Gardens and Pillar Properties commitment to quality.
Bill was a 2018 Seattle Business Magazine Executive Excellence Award winner and under his leadership the R. D. Merrill Company was named the Family Business of the Year for its commitment to residents, team members and community service.
Bill received a bachelor’s degree from Princeton in 1971 and a MBA from the University of Oregon in 1973. He was the first senior living executive in residence for Washington State University. He serves on the Argentum Board of Directors and he is the past Chairman of the Executive Board of the American Seniors Housing Association (ASHA).
Matthew D. Rule, Esq.
Senior Vice President of Housing Development, National Church Residences Investment Corp.
Matt Rule is Senior Vice President of Housing Development at National Church Residences. Matt leads NCR’s acquisitions, development finance, originations, and construction teams. In the past five years his team closed over 30 LIHTC transactions, purchased over 3,000 affordable senior units and closed over $100,000,000 of new market rate senior housing production. In 2015, Affordable Housing Finance (AHF) named Matt as one of six Affordable Housing Young Leaders. Prior to joining NCR, Matt was a transactional attorney at Squire Sanders, LLP (currently known as Squire Patton Boggs) where he served as legal counsel for a variety of low income housing tax credit developers, syndicators, direct investors and lenders. Matt is a graduate from The Ohio State University Michael E Moritz College of Law where he graduated with distinction as Summa Cum Laude, Order of the Coif. Matt is active at Vineyard Church in Columbus, Ohio and currently serves as the Vice President of the Ohio Housing Council and as a Board Member of the Central Ohio chapter of the Juvenile Diabetes Research Foundation. In the past he has served as a Board Member the National Affordable Housing Trust (2018-2020), a Board Member of the Upper Arlington Rotary Club (2018-2020), a member of the Upper Arlington Citizen Financial Review Task Force (2019) and as the Chair of the Finance Subcommittee of the Upper Arlington Community Center Feasibility Task Force (2020). Matt is married and has four very energetic children.
For more information or if you have any questions regarding the content of this webinar, please contact Lynn Daly at 312.505.5688 or [email protected], Curtis King at 512.519.5003 or [email protected] or any HJ Sims banker at 1-800-HJS-1935.
FOR IMMEDIATE RELEASE
CONTACT: Tara Perkins, AVP | 203-418-9049 | [email protected]
HJ Sims Secures $41.9M of Bank Financing for Expansion Project and Refinancing
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 May 2021 financing in the amount of $41.89MM for Sunset Retirement Communities (Sunset), a multi-campus not-for-profit senior living provider located in Michigan.
In 2009, Sunset embarked on development of Waterford Place, completing the campus in 2015. In 2020, Sunset pursued phase three, including the addition of 62 independent living apartments, 20 villas and amenity spaces. Sims was engaged to identify the optimal capital structure for Sunset’s project financing, while reviewing existing bank debt.
The market study for phase three (completed in March 2020) supported the need for the expansion. COVID-19 slowed down pre-sales and created a need for management to focus on existing operations. After approaching potential lenders in May 2020, Sunset’s management team delayed the financing. However, Sims continued to work with Sunset, exploring capital structures. With its strong balance sheet and foundation support, Sunset moved forward with development of the 20 villas and self-funded construction costs.
During Autumn 2020, Sims re-analyzed financing options for Sunset’s apartment expansion and existing debt. Hefty termination costs associated with an existing long-term swap limited the number of viable refinancing options. Sims identified a new commercial banking partner that would finance the apartment project and replace one of the lenders.
In order to minimize Sunset’s long-term cost of capital and avoid large forward starting swap premiums, Sims worked with the lending partner to allow for the new money long-term bond proceeds to be drawn first such that the forward swap could take effect in just five months. By drawing the long-term proceeds first, Sunset has time to secure proceeds from strategic initiatives, which will be applied to project costs before any draws on the short-term bond proceeds. This allows Sunset to further minimize its funded interest costs during construction.
On May 12, 2021, Sims closed the Series 2021 financing for Sunset, which included three unique tranches of debt:
The Series 2021 financing, coupled with management’s prudent strategic decisions, positions Sunset for operational success and growth.
“Pursuing debt financing for an expansion and bank replacement during COVID-19 was challenging, but Sims made it happen. With Lynn Daly and Kerry Moynihan on point, Sims relentlessly pursued every avenue to ensure Sunset was Financed Right®. Sunset is very grateful for the Sims team’s expertise, industry connections and ability to close a deal with the right terms on an aggressive schedule. Sunset could not have picked a better partner. There is no question who our partner will be on future financings,” said Steven Bossenbroek, CFO, Sunset Retirement Communities.
Financed Right® Solutions—Lynn Daly: [email protected] or Kerry Moynihan: [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.
###
Sunset Retirement Communities is a multi-campus not-for-profit senior living provider located in West Michigan. HJ Sims was engaged to identify the optimal capital structure for Sunset’s project financing while also reviewing their existing bank debt with two different banks.
Continue readingOur team of market analysts have a singular mission: to help you make better investment decisions. Read the latest market commentary.
Continue reading
Watermark Retirement Living, which manages 65 communities in 21 states with additional communities under development, including CCRC’s, standalone independent living, assisted living and memory care communities in addition to Medicare-certified rehabilitation and skilled nursing neighborhoods, has partnered with ZOM Living, a highly regarded luxury multifamily developer, to develop two luxury senior living communities in South Florida.
Continue readingOur team of market analysts have a singular mission: to help you make better investment decisions. Read the latest market commentary.
Continue readingOur team of market analysts have a singular mission: to help you make better investment decisions. Read the latest market commentary.
Continue reading
Please join HJ Sims for MoneyShow Orlando June 10-12 at Omni Resort at ChampionsGate. Visit our team at Booth 303. Join us for two special presentations on June 11, 3pm-4:15pm, and June 12, 11am-11:45pm:
What if You Choose Not to Follow The Crowd? POWeR Your Portfolio.
What if you could stress test the Top 10 positions against world, political or economic scenarios?
What if you could identify investments that might adversely impact your portfolio within a rising inflation environment?
What if you could help design your own strategies (i.e., socially responsible or disruption innovation)?
What if you could identify investments that could help offset Capital Gains taxes?
Join Cliff Edelmann, Geoff von der Linden, Les Campbell, John Koene and Jonathan Jarow.
Our team of market analysts have a singular mission: to help you make better investment decisions. Read the latest market commentary.
Continue readingWith how unpredictable the last year has been, it would be foolish to believe that we can reasonably predict what will happen in the next five years as it relates to Life Plan Community financing and capital markets as a whole.
However, we have learned in recent months that communities can implement innovative financing tactics to create operational cashflow in this current market situation. Here are some thoughts, considerations and possible opportunities for your organization.
Read more insights from Melissa Messina, SVP, HJ Sims, in the Love & Company Blog.
Our team of market analysts have a singular mission: to help you make better investment decisions. Read the latest market commentary.
Continue readingOur team of market analysts have a singular mission: to help you make better investment decisions. Read the latest market commentary.
Continue readingOur team of market analysts have a singular mission: to help you make better investment decisions. Read the latest market commentary.
Continue readingHJ Sims completed a $3.8 million retroactive Property Assessed Clean Energy (PACE) financing package on behalf of StoneCreek Real Estate Partners and Civitas Senior Living, for StoneCreek Littleton, a 92-unit assisted living and memory care facility in Littleton, Colorado that opened in January 2020. Please read more in Senior Housing News.
FOR IMMEDIATE RELEASE
CONTACT: Tara Perkins, AVP | 203-418-9049 | [email protected]
HJ Sims Partners with StoneCreek Real Estate Partners to Facilitate $3.8 million in Retroactive PACE Financing
FAIRFIELD, CT– HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce a successful April 2021 Retroactive Property Assessed Clean Energy (PACE) financing in the amount of $3.8 million for StoneCreek Real Estate Partners (StoneCreek).
StoneCreek, a Dallas based developer, is a collaboration of professionals with 50+ years of combined experience in the operations, development and ownership of successful senior living communities in TX, CO and AZ. The operator, Civitas Senior Living (Civitas), is a Fort Worth, TX based for-profit owner/operator of senior living communities in TX, FL, OK, NM, KY and AZ. Founded in 2012, Civitas has 100+ corporate employees and manages 45+ senior living communities.
The StoneCreek Littleton development is new construction of a 92-unit senior housing community with 70 assisted living units and 22 memory care units. The community opened in January of 2020 and provides local access to quality senior housing and care in the Littleton area of Denver. With occupancy and operational challenges related to the COVID-19 pandemic, StoneCreek was exploring alternative capital sources to provide additional operational leverage when Sims proposed exploring retroactive PACE financing.
PACE is a Public/Private partnership that allows property owners to finance projects through voluntary assessments placed on the property by a state economic development agency. The program finances 100% of the energy efficiency, renewable energy, water conservation, resilience improvements and the related costs for construction and renovations/retrofits up to about 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 over the useful life of the project (15-25 years). The PACE program is typically considered an alternative source of financing to mezzanine debt where interest rates average between 12%-15%. In many states, PACE is allowed to be applied retroactively post-certificate of occupancy for qualified costs for a determinate amount of time.
Sims coordinated with StoneCreek, Civitas, the PACE loan provider and the Colorado PACE Authority for approval for PACE financing from the senior construction lender. Despite the atypical nature of the program, the financing team satisfied the concerns of the senior construction lender while also navigating the various regulatory challenges associated with multi-party financings.
StoneCreek, with the guidance of Sims, was able to borrow $3.8 million in PACE financing at 5.85% to finance necessary operating expenses related to an early 2020 opening and the ensuing impact of the Pandemic.
Financed Right® Solutions— James Rester: 901.652.7378 | [email protected], Curtis King: 603.219.3158 | [email protected] or Ryan Snow: 843.870.4081 | [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.
###
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.