Elder Care Alliance (October 2023)

HJ Sims Secures $24.5M of Bank Financing for Refinancing of Construction Loan

Elder Care Alliance has a longstanding relationship with H.J. Sims and are grateful for their recent efforts on behalf of Mercy Retirement and Care Center. In a challenging operating and lending environment, the H.J. Sims teams helped us secure tax-exempt bond financing to refinance an existing construction loan. Additionally, once the lender was selected, they helped facilitate the successful closing of the loan under a tight timeline.

Having the permanent loan in place provides peace of mind. Thank you, Sims team, for the leadership, perseverance and hard work to secure funding that provides stability to the Mercy Retirement and Care Center community.

-Adriene Iverson, Chief Executive Officer, Elder Care Alliance

Partnered Right®

Mercy Retirement and Care Center (“MRCC”) is a California not-for-profit public benefit corporation owned and managed by Elder Care Alliance (“ECA”). The community spans 4.5 acres in Oakland, California, comprising 85 assisted living units, 22 memory care units, and 59 skilled nursing beds. Additionally, the organization serves over 8,000 low-income seniors two bags of nutritious groceries per month through its Mercy Brown Bag Program.

In 2018, MRCC initiated a campus revitalization project that included new entry and reception, parking, theater, library; relocation of the art studio, salon, and wellness room; expansion of the chapel, enhancement of outdoor and common space, modernization of the assisted living tower, and other general enhancements to the community.

While the project improved the resident experience, construction delays and the COVID-19 pandemic introduced uncertainties impacting the long-term financing viability of the project.

Structured Right®

Following the completion of the project, the construction lender was reluctant to extend permanent financing following the bank’s merger with a larger lending institution and a corresponding shift in desired client profile. HJ Sims collaborated with ECA and MRCC to strategically position MRCC for additional lending partners. With HJ Sims’ assistance, ECA evaluated various financing plans, including a public tax-exempt bond issue, a Cal-Mortgage insured bond issue, and both taxable and tax-exempt bank loans.

After thorough consideration of the financing routes, HJ Sims led a competitive bank solicitation process, ultimately selecting California Bank & Trust for a fully tax-exempt loan.

Executed Right®

Given timing constraints for refinancing the existing debt, HJ Sims and California Bank and Trust worked with ECA and the financing team to advance the financing expeditiously. This included unwinding existing swaps to the benefit of MRCC and placing a new interest rate swap.

Financed Right®

MRCC, HJ Sims, and California Bank & Trust closed the $24.50 million financing on October 27, 2023. The financing consisted entirely of a tax-exempt loan funded by California Bank & Trust.

The loan features a 25-year principal amortization, a three-and-a-half-year term (with a two-year extension option), and a swapped effective tax-exempt rate of 6.20%

For more information, please contact:

Aaron Rulnick


Ryan Snow


Testimonials may not be representative of the experience of other clients. Past performance is no guarantee of future results