Sims Completes Capital Commitment to Merrill Gardens Fund
Based in Seattle Washington, R.D. Merrill Company (“Merrill”) was founded in 1890 by Richard Dwight Merrill initially as a timberland business, later diversifying into real estate investment, development, and management of senior housing, mixed-use, and multi-family properties.
Founded in 1996, Merrill’s senior housing affiliate Merrill Gardens, currently operates 66 senior housing communities in 17 states. Founded in 2007, Merrill’s development and multifamily affiliate Pillar operates over 2,100 apartment units. Additionally, Pillar has developed over 7,000 multi-family and senior living units with total development costs in excess of $2 billion.
Sims has invested in three prior funds raised by Merrill dating back to 2006.
In 2019, HJ Sims committed to investing $20 million in RDM Housing Strategies VI, LLC (“RDM VI” or the “Fund”) through the purchase of Class A Interests. RDM VI was formed by Merrill to develop and acquire multi-family and senior housing communities, primarily in urban infill locations in the south and on the west coast. At the time of the first capital call, RDM VI had plans for initial investments in four senior housing properties and identified several additional properties as potential future investments for the Fund. In order to participate in the Fund, the Sims investment needed to be structured with the flexibility to fund future capital calls as needed by the Fund.
A Sims controlled investment company, Sims Merrill Gardens VI, LLC (“Sims Issuer”), was formed to invest in RDM VI, with plans to issue multiple series of securities to capitalize Sims’ investment in the fund. The Sims Issuer previously closed on $4,395,000 of Series I Bonds in November 2019, $3,335,000 of Series II Bonds in February 2020, $2,290,000 of Series III Bonds in May 2020, $6,850,000 of Series IV Bonds in October 2020, and $4,960,000 of Series V Bonds in November 2022. To meet the final capital call from the Fund, Sims issued $2,745,000 of Series VI Bonds in July 2023, fulfilling its $20 million commitment to the fund.
Utilizing its extensive investor base and industry expertise, Sims was able to underwrite and implement an efficient investment structure meeting the capital objectives and needs of Merrill and its affiliates. Through its Private Client Group, Sims secured capital from its high-net-worth investors to fulfill its investment while meeting the timing needs of the Fund.
HJ 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 like Merrill.
For more information, please contact: