HJ Sims partnered with Genacross Lutheran Services to deliver a $34.4 million financing solution that supported strategic growth initiatives, strengthened financial flexibility, and positioned the organization for long-term success
$34,400,000 | TOLEDO, OH | DECEMBER 2025
Partnered Right®
Genacross Lutheran Services (“Genacross”) is a nonprofit organization founded in 1860 and headquartered in Toledo, Ohio with operations across Ohio and southeast Michigan. Genacross provides a continuum of care for older adults including skilled nursing, assisted living, rehabilitation, respite care, and affordable independent living. The organization also operates community-based residential care and treatment programs for high-risk youth.
Although the organization faced operational challenges coming out of COVID, the adoption of certain strategic initiatives had helped garner positive trajectory in recent years. Continuing with its improvement efforts, Genacross developed a master plan to reposition its Napoleon, Ohio campus, focusing on expanding memory care and assisted living while reducing reliance on skilled nursing. The financing need arose from plans to convert an existing skilled nursing wing into 20 private-pay memory care units and to fund additional capital improvements across its campuses. HJ Sims had previously worked with Genacross in 2010 and was excited to partner with the organization again on this financing.
Structured Right®
While Genacross maintained a good relationship with its existing commercial bank, the lender was unwilling to extend additional credit for the repositioning project at that stage of Genacross’s recovery. Because of this, the Series 2025 financing also needed to include a refinancing of the Series 2015 debt.
To meet Genacross Lutheran Services’ financing objectives, HJ Sims developed a plan of finance that included a single series of tax-exempt revenue bonds totaling $34.4
million. The bond structure includes a 24-year amortization schedule with a two-year interest only period, providing debt service relief during the initial construction and repositioning phase. The bonds carry an optional call option after 3 years and a mandatory tender after five years, allowing for future refinancing opportunities as
market conditions evolve.
In addition to utilizing bond proceeds, HJ Sims strategically incorporated additional funding sources by coordinating the termination of Genacross’s accretive interest rate swap and negotiating the application of sale proceeds of a non-core piece of property. These efforts were pivotal in preserving the organization’s liquidity
position and ensuring sufficient resources for both immediate and ongoing capital and operating needs.
Executed Right®
Due to its recent financial turnaround and business model that includes various lines of business, this was not a credit that would be attractive to most banks.
To overcome this hurdle, HJ Sims pivoted to a single-investor solution, leveraging the depth of its institutional relationships to secure flexible terms during the transition period. Through introductions facilitated at the 23rd annual HJ Sims Late Winter Conference in Fort Myers last February, Genacross met with several institutional investors and generated strong interest in the opportunity.
Closing the financing required navigating significant hurdles, most notably an extensive real estate due diligence process. Genacross owned dozens of properties, many gifted decades ago with little or no value, and it became clear that comprehensive title work had never been completed despite the organization carrying debt for years. These issues caused delays, but the HJ Sims and the broader financing team remained steadfast, coordinating efforts among legal advisors, title agents, the existing bank partner, and the new investor to keep the transaction moving forward.
Additionally, by coordinating the timely termination of the swap and negotiating the allocation of the resulting excess proceeds, HJ Sims ensured Genacross could move forward with the repositioning and refinancing efforts without disrupting its day-to-day operations or long-term financial health.
Financed Right®
The financing for Genacross Lutheran Services closed in December 2025, successfully delivering a structure that supported both immediate capital needs and long-term strategic objectives. The bonds were issued as tax-exempt revenue bonds with a final maturity in November 2049, providing flexibility through the five-year mandatory tender and optional redemption provisions.
Key Benefits of the Transaction:
• Secured approximately $34.4 million in financing to refinance Series 2015 Bonds, fund the Napoleon campus repositioning, and reimburse prior capital expenditures.
• Enabled the conversion of a skilled nursing wing into 20 private-pay memory care units, improving service offerings and projected operating income by $600,000 annually.
• Provided funding for $1.95 million in routine capital projects across multiple campuses, ensuring campus reinvestment while maintaining liquidity.
• Delivered a structure with interest-only payments for two years, easing cash flow during construction and lease-up phase
For more detailed information on how Genacross Lutheran Services was Financed Right® please call or email: