Sims Partners with Pearl Healthcare to Finance Acquisition
of Skilled Nursing Portfolio
$3,130,000 | Illinois | August 2025
Partnered Right ®
Based in the Chicago area of Illinois, Pearl is a best-in-class regional healthcare owner and operator, with 13 skilled nursing facilities across the state of Illinois with the capacity to serve over 2,000 residents. All of Pearl’s communities are located in Illinois, providing a significant presence in the market allowing for more meaningful referral relationships with the major hospital networks in the area.
Structured Right®
HJ Sims (“Sims”) was approached by Pearl to provide debt financing for the acquisition of three skilled nursing facilities (“the Portfolio”) in Illinois. Pearl has a strong regional presence in the area, and has operated the three facilities since 2021, 2023, and 2024. As a result of its presence in the area, Pearl has been able to leverage its market expertise and economies of scale to drive strong performance at the facilities.
Sims and a Bank Partner proposed a high-leverage A/B loan to fund the acquisition. The A/B Loan combined two tranches of debt into a single debt instrument (the “A/B Loan”) with the Bank Partner providing a portion of the A/B Loan (the “Tranche A”) on a priority basis and Sims providing a portion of the A/B Loan (the “Tranche B Funding”) on a subordinate basis. From the perspective of Pearl, the loan functions as a single debt obligation under a single loan agreement and security package.
Executed Right®
Sims funded the subordinate Tranche B of the first mortgage loan, which in combination with the Tranche A proceeds provided by its Bank Partner, funded the acquisition.
Through an affiliate of Herbert J. Sims Investments, LLC (“HJSI”), Sims sold securities through its Private Client Group to fund the loan. The loan was structured with a 36-month term and interest only payments over the first 24 months of the loan, with amortizing payments thereafter, limiting debt service expense over the near-term. Pearl expects the A/B Loan to be refinanced with HUD-insured financing during the initial term. Furthermore, the A/B Loan carries a floating interest rate tied to the 30-day SOFR rate, opening the possibility of a lighter interest obligation if rates subside.
Financed Right®
The customized financing solution was structured to help Pearl with both its short and long-term financing needs, enabling Pearl to permanently acquire the real estate of the strategic assets.
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.
The financing marks Sims’ first successful closing with Pearl.
Curtis King
512-519-5003
Brett Edwards
512-519-5001
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