HJ Sims and JLL Deliver $252 Million in Bond Financing for The Marisol, an Upscale Rental Senior Living Development Project in Huntington Beach, CA
$252,120,000 | HUNTINGTON BEACH | APRIL 2026
“Executing this highly complex financing amid extreme market uncertainty required precise structuring, proactive investor engagement, and disciplined timing. HJ Sims and JLL’s coordinated effort—and Sims’ ability to adapt quickly and drive strong investor demand—were critical to a successful closing.”
– Andy Bluhm, The Bluhm Family Foundation
Partnered Right®
The Marisol reflects a partnership anchored by the Bluhm Family Foundation as the non-profit owner/sponsor and Momentum Senior Living, as the operator who specializes in high-end luxury senior living offerings located in high-barrier-to entry markets.
The Bluhm Family Foundation was founded in 2007 by Neil Bluhm (known as a major figure in US real estate development) and his children, Andy, Leslie and Meredith. The Bluhm’s are highly experienced in real estate development with involvement in multiple senior living communities along with a portfolio of mixed use, large office and casino development. With a particular focus on Healthcare, the Foundation was the creator of both the Northwestern Memorial Foundation Bluhm Cardiovascular Institute in Chicago and the Bluhm Heart Hospital. Senior living aligns with the Foundation’s overall mission, which includes serving the needs of the elderly, and creates sustainability well into the future.
Under a strategic partnership with HJ Sims as senior bookrunning manager and JLL Securities as co-manager, a unique financing structure was put in place that includes short duration senior bonds and subordinate bonds purchased by a third party unrelated to the project to achieve a blended cost of capital that is significantly lower than what the market has seen in previously financed non-profit rental senior housing deals.
Structured Right®
A key feature of the senior financing was the seven-year mandatory tender structure. The senior bonds are interest-only through the mandatory tender date, a design that shortened duration and helped lower the project’s cost of capital for a non-rated start up community. The senior bonds are further supported by a first-priority pledge of gross revenues, a first mortgage lien, and a funded debt service reserve accounts.
The broader structure added meaningful operating and credit support. The project includes capitalized interest, a working capital fund, and numerous financial covenants designed to ensure operational accountability. The subordinate bonds were paired with total return and interest rate swap arrangements, reducing the overall cost of the financing to the borrower. Together, these elements created a financing plan with lower senior leverage than investors typically see on start-up rental senior living financings.
Executed Right®
In connection with a full marketing effort including direct investor outreach, presentations and site visits, HJ Sims published the offering document for the transaction on March 9, 2026, one week following the launch of “Operation Epic Fury” in Iran. The bonds were priced two weeks later on March 25, 2026, amidst incredible uncertainty throughout the capital markets. In response to volatility in the market, HJ Sims saw an opportunity to accelerate pricing by one day to gather the orders and efficiently complete a successful pricing that allowed the borrower to achieve its financing goals amid a challenging market backdrop. Ultimately, the offering was more than 2x oversubscribed with some investors putting in orders for more than 40% and 50% of the offering.
Financed Right®
The financing closed on April 8, 2026, and delivered approximately $252.1 million for The Marisol, including $165.695 million of Senior Series 2026A bonds and $86.425 million of subordinate bonds. The senior bonds carried a yield of 5.35%, with a stated maturity of April 1, 2066, and a mandatory tender on April 1, 2033. The senior bonds are optionally redeemable beginning April 1, 2031, providing future refinancing flexibility as the project moves from construction toward lease-up and stabilization. The subordinate bonds mature in 2036 and were designed to complement the senior financing while shifting significant support to swap-related collateral rather than increasing senior leverage.
The result is a fully funded development financing for a differentiated rental senior living community in Huntington Beach, CA. With capital in place for construction, reserves, working capital, and early operations, The Marisol now has a financing platform designed to carry the project through delivery and into its initial operating years.
For more information, please contact:
Aaron Rulnick
203.856.1835
Brady Johnson
949.558.8297
Nick Roberts
469.371.3946