Case Study (October 2025)
$2,900,000 | October 2025
HJ Sims Provides $2.9 Million
Mezzanine Loan for Skilled Nursing and
Assisted Living Acquisition
Partnered Right®
A national recognized owner and operator of healthcare properties and services (the “Sponsor”) was pursuing the acquisition of a skilled nursing and assisted living portfolio (the “Portfolio”). The Sponsor owns and operates a substantial portfolio of healthcare properties across several states. Sims previously partnered with the Sponsor on four separate financings dating back to 2019 including three mezzanine loans and a high leverage first-mortgage uni-tranche loan.
Structured Right®
HJ Sims was approached by the Sponsor to provide subordinate financing to supplement a senior loan in funding the acquisition of the Portfolio. As part of its acquisition plan, the Sponsor identified and planned to implement multiple operational improvements to enhance operational efficiency and financial performance. After implementing the planned operational improvements, the Sponsor intends to seek permanent financing to refinance outstanding debt. HJ Sims proposed a subordinate mezzanine loan providing additional leverage to fund the acquisition, reducing the Sponsor’s out-of-pocket equity contribution.
Executed Right®
HJ Sims provided a $2.9 million mezzanine loan, which in combination with a senior loan and equity from the Sponsor, was used to fund the acquisition. HJ Sims structured the mezzanine loan with a three-year interest-only term, matching the term of the senior loan. The subordinate loan carries a fixed interest rate, ensuring cost of capital in an uncertain interest rate environment. Through an affiliate of Herbert J. Sims Investments, LLC (“HJSI”), Sims sold securities through its Private Client Group to fund the mezzanine loan. a fixed cost of capital in an uncertain interest rate environment. Through an affiliate of Herbert J. Sims Investments, LLC (“HJSI”), Sims sold securities through its Private Client Group to fund the mezzanine loan.
Financed Right®
The HJ Sims’ mezzanine loan fit the needs of the client, providing a high-leverage solution allowing the Sponsor to (a) better allocate capital for other acquisition targets and support of existing assets, and to (b) avoid diluting ownership in the Portfolio from taking on additional equity partners.
HJ Sims excels in providing customized debt and equity capital for senior living providers utilizing a variety of direct financing solutions
including equity, preferred equity, mezzanine debt, and high leverage first mortgage loans, tailored to meet the unique financing needs of
valued partners.
Curtis King
512.519.5003
Brett Edwards
512.519.5001
Brock Bagelman
512.519.5005
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