Sims Underwrites $333.4 Million in Bonds for the Development of New Life Plan Community in Stamford, CT
“Once again, the entire HJ Sims team did an incredible job working through every aspect of this financing and brought us the best possible outcome for our new community!” Andrew H. Banoff, DHL – President and CEO, Mozaic Senior Life
Partnered Right®
Mozaic Concierge Living (MCL) is a new Life Plan Community (LPC) under development in Stamford, CT which when completed in 2027 will consist of 168 Independent Living Residences and Manor Homes, 14 Assisted Living Suites, 14 Memory Care Suites and 14 Nursing Beds along with related amenities on a 15-acre property approximately 2 miles from downtown Stamford. MCL engaged Greenbrier Development to develop, market and initially co-manage the community.
The Residences and Manor Homes range in size from 850 square feet to nearly 2,200 square feet. Entrance Fees average $1.44 million under the 90% refund plan, and Monthly Service Fees average $9,381, reflecting the Stamford market area. Residents may select a Type A health care benefit providing Assisted Living, Memory Care or Nursing Care at a monthly cost equal to the weighted average Monthly Service Fee for the community. Residents choosing a Type C plan will pay the published rate for the level of care utilized at the time.
MCL’s parent is Mozaic Senior Life, a 50+ year old provider of a wide variety of senior care services based in Bridgeport, CT. Opened in 2016, The Harry and Jeanette Weinberg Campus includes a 294-bed skilled nursing facility, an 18-bed assisted living household and a 14-bed memory care household. It is the only intergenerational household model senior living community in Connecticut. In 2014, Sims assisted in arranging $62 million in tax-exempt bank debt as part of the $100 million project to replace the original property.
In 2022, Sims issued $31.7 million in Bond Anticipation Notes (BANs) to fund the acquisition of the site and development costs prior to permanent financing. The new issue repaid the BANs and accreted interest. The parent contributed $4 million as part of the total development budget.
Structured Right®
One of the key objectives for most new LPCs is to reduce the initial construction debt to a level that can be supported by operating cash flow and net entrance fees received from second generation residents. Sims structured four series of bonds that would be redeemed with first generation residents’ entrance fees after a portion was set aside for working capital needs during fill up. All temporary debt is anticipated to be repaid when MCL reaches 87% occupancy.
As a secondary source of working capital in the event of unforeseen circumstances, Sims created nearly $12 million in additional liquidity support, funded with a combination of project contingency funds, the deferral of a portion of the Development Consultant’s fee and a $4 million pledge by the parent to contribute additional funds if needed.
Executed Right®
Mozaic Senior Life has significant name recognition and credibility in the Fairfield County and southern Connecticut market. In a survey of future MCL residents, more than half of the respondents indicated the reputation of Mozaic Senior Life was one of the primary reasons for choosing the community.
While the Stamford Primary Market Area (PMA) contains a significant number of age and income qualified seniors, it is relatively underserved, with only one other LPC having opened over 25 years ago. The gross market penetration, or market saturation rate, as calculated by the Feasibility Consultant Forvis Mazars, measuring the percentage of age and income qualified households in the market needed to maintain stabilized occupancy for all communities, was just 5% compared to its 16% median benchmark.
Market reception of the community has been tremendous, with the minimum 70% deposit requirement achieved within 10 months from launch (nearly 12 deposits per month on average). At the closing of the bond financing, over 80% of the planned residences were reserved.
Financed Right®
On April 3, 2025, Sims closed on the $333.4 million tax-exempt and taxable bond issue. Investor appetite was strong with the bonds placed with 42 institutional investment firms and approximately 90 Sims Private Wealth Management clients. The yield on the longest-term bond, maturing in 2060, was 6.35%. Despite very volatile market conditions, Sims was able to lower the yield on the long-term bonds while yields were generally rising due to very strong demand for the issue.
MCL is expecting to welcome its new residents in the first half of 2027.
Andrew Nesi
203.418.9057
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