HJ Sims Closes Life Insurance Company Loan for Assisted Living and Memory Care Community


October 4, 2022

CONTACT: Rebecca Brady | 203-418-9077 | [email protected] 

HJ Sims Closes Life Insurance Company Loan for Assisted Living and Memory Care Community

FAIRFIELD, CT – HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce that it was recently successful in bringing a new solution to a valuable client seeking to refinance and pay off construction debt of a newly completed, 74 unit assisted living and memory care community located in the Mountain West employing a fixed interest, 10-year term for a non-recourse loan.

The well experienced, regional owner/operator currently operates more than 1,400 units across 26 communities in three different states. With over 16 years of experience, the ownership group has a proven track record of identifying opportunistic locations, developing from the ground up and achieving stabilized occupancy in record time for assisted living and memory care communities.

Sims acted as strategic advisor and placement agent, managing the process from start to finish; also providing access to multiple financing options to consider with complete transparency, which resulted in introducing a new form of debt to the borrower to add to their growing portfolio.

Sims proactively laid the ground work for a plan of finance during the development and pre-opening of the 74-unit community. Long before the property achieved stabilized occupancy, Sims had already prepared several options for the next step in the capitalization strategy, including retiring the full recourse construction loan. After the analysis of several loan options, a life insurance company was selected to provide the $10.5MM in loan proceeds, which were used to not only pay off the maturing construction debt but also provided a higher than expected return of equity to the Sponsor. The non-recourse loan was structured with a fixed-interest rate for a 10-year term, including 18 months of interest only payments, followed by a 30-year amortization.

“Through a turbulent market, we closely monitored what seemed to be an ever-fluctuating interest rate environment. The fixed interest rate was locked upon initial deposit at the beginning of the underwriting process not towards the end, eliminating the uncertainty of rising interest rates and widening the gap of comparison even more between the competing lenders. We are thrilled to be able to not only bring a financing solution to the table but a solution that was different from all the rest,” commented Jeffrey Sands, Managing Principal of HJ Sims.

Financed Right® Solutions
Jeffrey Sands: 203.418.9002 or [email protected]

Brady Johnson: 949.558.8297 or [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.