Successful Financing of Phased Expansion
Advances Master Campus Repositioning
$55,060,000 | NORTH CAROLINA | MAY 2026
“Our partnership with HJ Sims has once again proven invaluable as we continue to evolve our community. Their insight and execution helped us secure a financing strategy that aligns with our long-term mission and supports the modernization of our campus. This project represents an important step in enhancing the living experience at Porters Neck Village, and we appreciate their dedication to helping us achieve that vision.”
Partnered Right®
Porters Neck Village (“PNV”) is a nonprofit life plan community located on a 56-acre campus near Wilmington, North Carolina. Since opening in 1988, the community has provided high-quality independent living and has been managed by Life Care Services (LCS). PNV has a demonstrated history of disciplined campus reinvestment, having completed multiple expansion phases over the past several decades. Most recently, the community successfully delivered Phase I of its master plan in 2023, adding 44 independent living units and enhanced amenities. Building on this momentum, PNV advanced Phase II of its redevelopment plan to replace aging independent living inventory with modern residences better aligned with current market preferences. The Phase II project removes 68 older units and adds 67 newly constructed independent living units. Porters Neck Village engaged HJ Sims again to develop and execute a financing strategy that would support the project while preserving long-term balance sheet
flexibility.
Structured Right®
HJ Sims worked closely with PNV and LCS to evaluate financing alternatives and structure a plan of finance. Sims recommend that PNV solicit bank debt proposals to compare against using fixed rate bonds. Sims ran a competitive bank RFP process and PNV received several competitive proposals. After reviewing the proposals against using fixed rate bonds, PNV decided to only use fixed rate bonds for the financing. The benefits of using bank debt were limited due to the organization’s strong BBB (Fitch) credit rating, which allowed PNV to borrow bonds without funding debt service reserve funds.
Executed Right®
With the plan of finance selected, HJ Sims pulled together the working group and started the issuer approval process. Following issuer approval in early April, PNV entered the market and Sims began marketing the bonds. Investor engagement was strong, supported by PNV’s strong operating history, experienced management team, and demonstrated demand for the Phase II expansion. Sims successfully sold the bonds in mid April, with fourteen investors participating in the financing.
Financed Right®
On May 7, 2026, PNV closed on approximately $55 million of tax-exempt bonds, with the long term bonds holding a true interest cost (TIC) of 5.15%. PNV anticipates welcoming new residents to its community in late 2027.
Aaron Rulnick
203.418.9008
David Saustad
240.207.1202
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