HJ Sims Underwrites $135 Million Expansion for Phase II of the Toby and Leon Cooperman Sinai Residences of Boca Raton

FOR IMMEDIATE RELEASE             

October 5, 2020

 

CONTACT: Tara Perkins, AVP | 203-418-9049 | [email protected]

 

HJ Sims Underwrites $135 Million Expansion for Phase II of the Toby and Leon Cooperman Sinai Residences of Boca Raton

FAIRFIELD, CT– HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce the successful September 2020 financing in the amount of approximately $135 million for the Toby and Leon Cooperman Sinai Residences of Boca Raton (Sinai). Located in Boca Raton, Sinai is a life plan community managed by Life Care Services comprised of 234 independent living units, 48 assisted living units, 24 memory-support units, 60 skilled nursing beds and common amenities. Sinai opened in January 2016 and achieved stabilized occupancy in less than a year. Sinai is located on The Jewish Federation of South Palm Beach County Florida campus.

 

The Sinai Board determined to undergo an expansion to add 111 independent living units to the community. Sinai and its development partner, LCS-D, had commenced pre-development work to shorten its post-financing construction period and were driving towards a September 15 vertical construction start, amidst COVID-19. Sinai experienced strong pre-sale velocity despite the pandemic, and achieved 70% pre-sales during the bond marketing process.

 

Due to the accelerated post-financing construction period, and Sinai’s track record of rapidly filling independent living units, coupled with COVID-19 impacted constraints on bank financing, Sims and the Sinai team issued tax-exempt fixed rate bonds for the entire expansion. Sinai financed a portion of its development costs with taxable bonds, creating a $5 million taxable tranche of Entrance Fee Principal Redemption Bonds®.

 

Sims underwrote Entrance Fee Principal Redemption Bonds® up to approximately 91% of the initial entrance-fee pool of the expansion. The Series 2020 Bonds were robustly oversubscribed, permitting adjustment of the scale on the pricing date such that the long-term bonds (2055 maturity) were priced at 5.00% to yield 4.60%, permitting Sinai to borrow approximately $135 million with only a $2.4 million increase in maximum annual debt service over their existing maximum annual debt service. Sims facilitated the implementation of modifications to Sinai’s existing master trust indenture – providing greater flexibility on testing of debt service coverage (switching to annual versus quarterly testing) to accommodate intra-year swings in entrance fee turnover.

 

“Once again, HJ Sims has provided their exceptional professional expertise providing pre-development and construction development financing, in the amount of $135 million, for the Phase II Expansion of the Toby & Leon Cooperman Sinai Residences of Boca Raton. Sims was the underwriter in 2014 for the $214 million bond issuance for the Sinai Residences initial start-up and development financing. Sinai Residences is now one of the most successful premiere luxury senior living facilities in the country.

The Sims’ team’s preparedness, availability, scheduling, communication, personal touch and extensive knowledge of the bond industry and markets allowed the Sinai Expansion project to be funded on-time and at exceptional rates. An owner could not ask for better representation. I look forward to the continuation of our outstanding relationship, and future funding opportunities, with Sims,” said Mel Lowell, COO, Jewish Federation of South Palm Beach County, and Board Member, Sinai.

Financed Right® Solutions—Aaron Rulnick: [email protected], 301-424-9135 | Melissa Messina: 203-418-9015,  [email protected] | Brady Richardson 443-340-9980,  [email protected] | Patrick Mallen: 418-9009,  [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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HJ Sims Secures $6.5 million Additional Debt Financing for Capital Improvements

FOR IMMEDIATE RELEASE

CONTACT: Tara Perkins, AVP | 203-418-9049 | [email protected]

HJ Sims Secures $6.5 million Additional Debt Financing for Capital Improvements

FAIRFIELD, CT– HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce the successful August 2020 transaction in the amount of $6.5 million additional debt financing for capital improvements for the Philadelphia Protestant Home (PPH). PPH operates a continuing care retirement community in northeast Philadelphia, featuring 266 independent living units, 175 personal-care units and 126-bed nursing facility.

PPH has been funding capital improvements from general fund revenues. To efficiently manage cash-flow, PPH elected to finance $6.5 million of upcoming capital improvements. Sims, as financial advisor, developed a financing plan that provided for the funding of the required capital improvements, while implementing a structure that maintained maximum flexibility to maintain their debt service at manageable levels.

Prior to engaging PPH’s existing banking partner, Citizens Bank (Citizens), Sims worked with the PPH Fiscal Oversight Committee to develop structuring options. Following engagement of Citizens, Sims led the effort in working with Citizens to finalize the debt structure, within the confines of the bank’s requirements. Due to impacts of COVID-19, Sims negotiated a modified Debt Service Coverage test to the benefit of PPH. The additional obligations were structured as parity debt with PPH’s outstanding Series 2015 obligations.

Citizens provided $6.5 million of senior debt financing, fully amortizing in ten-years, and a five-year interest-only period followed by monthly principal amortization. The obligations were structured with a five-year, PPH-owned par call provision, and were issued on a tax-exempt basis through the Philadelphia Authority for Industrial Development (PAID). This provision was paramount as PPH’s existing Series 2015 Obligations mature in seven years, while Citizens could only defer principal on the Series 2020 obligations for five years. This call feature will allow PPH to restructure future debt at minimal cost.

Following closing of the Series 2020 Bonds, PPH locked in a synthetic fixed-rate on the debt. Sims served as Swap Advisor for the swap transaction, which also bears a mirroring, PPH-owned par termination right in five years, to align with the Citizens’ loan.

Sims, Citizens, PAID and the financing team worked diligently with PPH to secure final approvals, including navigating through unanticipated delays followed by the onset of COVID-19, to successfully close the financing.

“The HJ Sims’ commitment to incomparable client services has once again served The Philadelphia Protestant Home well. Despite the unforeseen challenges and uncertainly resulting from the pandemic, the Sims’ team provided valuable insight and unwavering advocacy to assure our financing needs were achieved. We are thankful for our partnership, the integrity, and collaboration with Aaron Rulnick and Siamac Afshar, for always putting what is in the best interest of PPH, first,” said John Dubyk, CEO, PPH. Philadelphia Protestant Home

Financed Right® Solutions—Aaron Rulnick: [email protected] or 301-424-9135 | Siamac Afshar: [email protected] or 267-360-6250.

ABOUT HJ SIMS: Founded in 1935, HJ Sims is a privately held investment bank and wealth management firm. Headquartered in Fairfield, CT, HJ Sims has nationwide investment banking, private client wealth management and trading locations. Member FINRA, SIPC. Facebook, LinkedIn, Twitter,  Instagram.

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Financing the Perception of Safety

FOR IMMEDIATE RELEASE

September 22, 2020

CONTACT: Tara Perkins, AVP | 203-418-9049 | [email protected]

Financing the Perception of Safety
Senior Living Survey Finds Residents Feel Safe, Glad to be Part of a Community during Pandemic 

FAIRFIELD, CT– HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, participated in the Senior Living COVID-19 Sentiment Report, which surveyed 4,000+ current and prospective senior living community residents, assessing their thoughts/ feelings about the COVID-19 pandemic. Lynn Daly, Executive Vice President, Sims’ Chicago office, authored content included in the 104-page report, COVID-19 Sentiment Report: A Survey of Independent Living Desirability & Safety.

The Survey, published by Plante Moran Living Forward and Retirement DYNAMICS®, was distributed to 23,000+ residents, prospective residents and staff at senior independent living communities nation-wide.

Among the results, it was discovered that of more than 4,000 current and prospective senior living community residents, 77% of current senior living community residents were somewhat or strongly supportive of living in a community during the Pandemic, with 87% of prospective community residents feeling somewhat or strongly glad to be living at home during the Pandemic. Click here to download the report.

While surveyed prospects worried about social isolation and daily tasks when living in their own homes, Survey results showed a slight decrease in their likelihood to move into an independent living community due to the Pandemic. The survey revealed:

  • 92% of staff felt their community responded well to Pandemic.
  • 93% of residents felt their community took all precautions.
  • 85% of staff agreed residents “are safer in their community than in their previous homes.”
  • 77% of residents said they were “glad to be living in a community during the Pandemic,” with 86% affirming they were glad they moved.
  • Prospective residents (61%) and residents (68%) felt socially isolated during shelter-in-place.
  • 74% of prospective residents reported their time frame for a move has been unchanged.

While independent living communities received high marks from seniors on cleanliness, sanitation and communications, communities earned low grades on recreation activities, dining and technology offered during shelter-in-place.

The Survey received a 21.1% overall response, and was sent to independent senior living communities throughout the U.S., generating 7,000+ comments. The results indicate that prospective senior living residents recognize that living in a community would provide them peace of mind, safety and security. However, they are happy to be home during the Pandemic. For senior living providers and operators, making small operational changes can improve prospective residents’ perceptions, with the hope that they will make the commitment and enjoy what moving to a campus would provide.

“HJ Sims is deeply passionate about the providers we serve. We appreciate that COVID-19 has stretched our provider clients in unimaginable ways, including resident and staff safety, retention/recruitment of staff, uncertainty and negative press. We welcome helping those in the industry become more knowledgeable about COVID-19 and are pleased to provide relevant data on what providers are doing right, and where they can improve to align themselves with the perceived needs of consumers and staff. We have tremendous faith in the non-profit senior living model and embrace the opportunity to support its sustainability and resilience,” said Daly.

Ms. Daly has 30+ years of experience working exclusively with nonprofit organizations on their financing needs. Read more here.

Lynn Daly: [email protected] | 312-505-5688.

ABOUT HJ SIMS: Founded in 1935, HJ Sims is a privately held investment bank and wealth management firm. Headquartered in Fairfield, CT, HJ Sims has nationwide investment banking, private client wealth management and trading locations. Member FINRA, SIPC. Facebook, LinkedIn, Twitter,  Instagram.

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HJ Sims Participates in the MoneyShow Virtual Expo

Tools for entirement®

The HJ Sims team experienced a successful first-time appearance as speakers at this year’s MoneyShow Virtual Expo, September 15-17. The event theme was Investment Strategies and featured thousands of attendees over the three-day run.

Our Test Your Stress: How in the World Is Your Portfolio? presentation highlighted HJ Sims Tools for entirement® and the strategic methods in which HJ Sims’ financial advisors can test client portfolios against dozens of world events, including economic, political and financial scenarios.

Our team was comprised of Geoffrey von der Linden, Senior Vice President; Eugene Chyzowych, Senior Vice President; and Joshua Davison, CIMA®, Director of Investments.

Additionally, HJ Sims hosted a dynamic virtual booth, including our videos, biographies, and foundational information about us and our rich 85+ year history.

We look forward to speaking at the next MoneyShow Virtual Expo in October for accredited investors.

Register for MoneyShow Virtual Expo October, featuring HJ Sims

Register

HJ Sims is a SEC registered Broker-Dealer, a member of FINRA, SIPC and is affiliated and under common ownership and control with a state registered investment advisor: Herbert J. Sims Capital Management, Inc. (HJSCM). Some HJ Sims financial professionals are dually registered as investment advisors with HJSCM and may therefore provide advice on HJSCM managed accounts. This material has been prepared and is distributed solely for informational purposes and is not a solicitation or an offer to buy or sell any security or instrument or to participate in any trading or investment strategy. September 2020.

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Test Your Portfolio against Dozens of What-if Scenarios

Do you have questions and concerns about your portfolio, and the potential impact of world events on your investments? We are pleased to introduce Tools for entirement®. We invite you to test your portfolio against dozens of what-if scenarios, including economic, political and market events. 

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HJ Sims is a SEC registered Broker-Dealer, a member of FINRA, SIPC and is affiliated and under common ownership and control with a state registered investment advisor: Herbert J. Sims Capital Management, Inc. (HJSCM). Some HJ Sims financial professionals are dually registered as investment advisors with HJSCM and may therefore provide advice on HJSCM managed accounts. This material has been prepared and is distributed solely for informational purposes and is not a solicitation or an offer to buy or sell any security or instrument or to participate in any trading or investment strategy. September 2020.

An Exclusive Investment Opportunity: Toby and Leon Cooperman Sinai Residences at Boca Raton

**This financing has been successfully closed. Please contact you advisor for any potential secondary market opportunities.**


$143,745,000*
Palm Beach County Health Facilities Authority
Series 2020A Long Term Fixed Rate Bonds $56,645,000
Series 2020B-1 Entrance Fee Principal Redemption BondsSM $29,030,000
Series 2020B-2 Entrance Fee Principal Redemption BondsSM $58,070,000
(SINAI RESIDENCES PHASE II EXPANSION)

HJ Sims is pleased to serve as the sole underwriter for Toby and Leon Cooperman Sinai Residences of Boca Raton (Sinai) to fund an expansion via the sale of tax-exempt, long-term, fixed rate and tax-exempt Entrance-fee Principal RedemptionSM bonds. In 2014, HJ Sims served as senior managing underwriter for the municipal revenue for Phase I of Sinai, a continuing care retirement community located in Boca Raton, Florida. Federation CCRC Operations Corp. is a Florida 501(c)(3) located on the campus of the Jewish Federation of South Palm Beach County (The Federation) in Boca Raton, Florida. The site is known as/dba The Toby and Leon Cooperman Sinai Residences of Boca Raton. Sinai’s initial independent living units became available for occupancy in January 2016, and were almost fully occupied within six months, with 100% occupancy occurring 11 months after opening. Sinai’s currenlty consists of 234 independent living units, 48 assisted living units, 24 memory support units and 60 Skilled Nursing Rooms.

Artist's Rendering; subject to change

Virtual Site Visits/Tours

Please find links below to virtual tours of the existing campus, expansion project and floor plans:

About the Bonds

  • Series 2020A
    • $54,110,000
    • Non-rated, tax-exempt
    • Bonds are exempt from Federal Income Tax and exempt from State of Florida Income Tax
    • Denominations of $5,000
    • Interest will be payable on June 1 and December 1 of each year, commencing December 1, 2020
    • Final maturity: June 1 2055
  • Series 2020B-1
    • $29,030,000
    • Non-rated, tax-exempt Entrance-fee Principal RedemptionSM bonds
    • Bonds are exempt from Federal Income Tax and exempt from State of Florida Income Tax
    • Denominations of $5,000
    • Interest will be payable on June 1 and December 1 of each year, commencing December 1, 2020
    • Final Maturity: June 1, 2027
  • Series 2020B-2
    • $53,070,000
    • Non-rated, tax-exempt Entrance-fee Principal RedemptionSM
    • Bonds are exempt from Federal Income Tax and exempt from State of Florida Income Tax
    • Denominations: $5,000
    • Interest will be payable on June 1 and December 1 of each year, commencing on December 1, 2020
    • Final maturity: June 1, 2025
  • Series 2020C
      • $5,000,000
      • Non-rated, TAXABLE Entrance-fee Principal RedemptionSM
      • Exempt from State of Florida Income Tax
      • Denominations: $5,000
      • Interest will be payable on June 1 and December 1 of each year, commencing on December 1, 2020
      • Final maturity: June 1, 2024
    •  

 Use of Proceeds

  • Phase II Expansion Project
    • The new expansion project will be located on 4.6 acres of the southeast portion of Sinai’s existing 21-acre campus.
    • Low-rise buildings encompassing 111 new independent living units, common and green space, dining facilities and a resort-style pool.
    • The project will include approximately 240,000 in total square footage.
    • The expansion contains a variety of independent living configurations ranging from 880 square feet (one-bedroom) to 3,200 square feet (Valencia) with an average of 1,357 square feet.
    • Monthly service fees will average $5,381 and entrance fees will average $867,721 for all expansion units.
    • Currently, there are 73 depositors reflecting a pre-sale rate of 65.8%.
    • Of the 73 depositors, the average age is 85-years-old, depositor median annual income is $222,000, and depositor median net-worth is $4,593,000.

 Security

  • Interest in amounts of deposit, and gross revenue, including Entrance Fees and accounts receivable
  • Personal property and real estate lien
  • Interest in Debt Service Reserve Fund, Working Capital Fund, Coverage Support Fund and Entrance Fee Fund 

 Key Financial Covenants

  • Debt service coverage ratio of 1.20x (tested annually, reported quarterly)
  • Liquidity covenant of 150 days cash-on-hand (tested semi-annually

We are currently accepting indications of interest for these tax-exempt and taxable bonds with an expected pricing week of August 31, 2020, and anticipated settlement September 15, 2020. 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 advisor, as soon as possible.

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888.978.1746

*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 Tony and Leon Cooperman Sinai Residences of Boca Raton.