HJ Sims Successfully Completes $38.9 Million Independent Living
Expansion Project with 15-Year
Bank Commitment
$38,900,000 | Harleysville, PA | June 2025
“As we complete the financing for our new construction project, I am deeply appreciative of the exceptional guidance provided by Jim Bodine and David Saustad of HJ Sims. From the earliest stages—when we were still assessing whether borrowing was financially feasible—through to the final structuring of the financing package, Jim and David have been trusted partners. They helped our board understand the complexities of the process and led a collaborative effort with attorneys and other professionals to ensure a successful outcome. We are grateful for their expertise, dedication, and support.”
-Suzanne Owens President/CEO
Peter Becker Community
Partnered Right®
Peter Becker Community is a not-for-profit (Type C) life plan community, located on an almost 100-acre campus in Harleysville, Montgomery County, Pennsylvania (“PBC” or the “Community”). Opened originally in 1971, the Community has grown in several phases, currently offering a full continuum of services and care in a campus-based residential setting and comprised of 325 Independent Living Units, 40 Personal Care Units and 72 Skilled Nursing Beds. It has a strong track record of operation, financial performance and resulting financial position.
Following successful financing of a 30-cottage expansion (Cottages at Pondview) and accompanying refinancing in 2021, HJ Sims was engaged to assist development and implementation of a plan of finance for an additional independent living expansion of 45 apartments at PBC’s existing Maplewood Estates.
Structured Right®
Prior to the planned expansion, Maplewood Estates was comprised of 120 apartments (in two wings), together with dining, amenity and common areas, constructed in 2005. Maplewood was a central component of PBC’s campus, around which continuing campus expansion, focused on independent living, had been undertaken over the past 20 years. Most recent additions included the 30 Pondview cottages together with an earlier phase of nine Maplewood Crossings cottages. With consistently strong occupancy and continuing waiting list for the existing Maplewood apartments, PBC elected to proceed with a long-anticipated expansion at Maplewood with projected project costs of approximately $36 million and seeking to commencing construction by mid-year 2025.
HJ Sims and PBC considered a number of factors in evaluating financing options, including bank and bond financing. These included: i) an estimated $36 million project cost (and almost $40 million of total financing), ii) the benefit of drawing financing, as construction progressed, rather than all at closing, iii) the anticipated availability of initial entrance fees to repay a portion of the debt following project completion and resident move-in and iv) favorable interest rates. Considering these factors and renewed bank appetite for project financing, PBC elected to undertake commercial bank financing which was expected to entail an attractive all-in interest cost and reduced borrowing requirements.
Executed Right®
HJ Sims commenced the bank solicitation in January 2025, presenting the financing opportunity to 21 prospective lenders. Financing objectives included: 1) implementing a combination of construction financing together with permanent financing in a single transaction, 2) securing committed financing for as long an initial term (tenor) as possible to minimize financing renewal and interest rate reset risk and 3) maintaining a common financing security structure and unified financing covenants, with PBC’s other outstanding debt, to provide it with continuing operating, financial and strategic flexibility.
The solicitation generated strong interest – with receipt of five financing proposals, four of which were for the full financing request. After careful evaluation of the proposals, PBC selected Truist, expanding its existing relationship that commenced in 2021 with the prior project financing/refinancing. Truist was selected based on its provision of competitive interest rates, limited conditions precedent to closing, reflecting PBC’s strong fundamentals of PBC and the project, continuation of objectively-based covenant requirements and willingness to provide 15-years of committed funding.
Regarding the use of floating vs. fixed interest rates, while the underlying debt carried a floating rate overall, PBC opted to have the interest rate float during the construction/draw-down period to be combined with a fixed interest rate on the permanent portion of the debt, following project completion and fill-up. Interest rate hedging on the permanent debt was achieved via a forward starting floating-to-fixed interest rate swap, with HJ Sims collaborating with Marathon Capital Strategies, as swap advisor.
Financed Right®
The financing closed in June 2025 as a $38.9 million tax-exempt direct bank placement allowing PBC to advance project construction on schedule. Approximately $16.5 million of debt is projected to be repaid with proceeds of first-generation entrance fees, representing about 85% of anticipated total entrance fees. As planned, PBC entered into a forward starting interest rate swap on the permanent debt and locked-in a rate of 4.53% for the 15 -year tenor/term.
Jim Bodine
267.360.6245
David Saustad
240.207.1202
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