HJ Sims Assists United Church Homes Acquire Pre-built Start-up Independent Living Campus


October 20, 2021

CONTACT: Shauna Reilly, CMO | 203-418-9043 | [email protected] 

HJ Sims Assists United Church Homes Acquire Pre-built Start-up Independent Living Campus

FAIRFIELD, CT– HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce the successful closing of a July 2021 financing in the amount of $26.3 million for United Church Homes (UCH), which was founded in Upper Sandusky, OH in 1916, and owns and manages 70+ Life Plan, healthcare and affordable housing communities in 14 states and two Native American nations. UCH provides affordable housing, independent living, assisted living, long-term care, rehabilitative care and memory care. The communities of UCH are open to everyone, regardless of race, gender expression or sexual identity, color, religion, sex, national origin or disability.

Sims was hired to assist UCH in connection with securing financing to acquire the Polaris Retirement Community from Polaris Retirement Living Properties, LP. A newly built independent senior living community for those 55 and older having 136 one- and two-bedroom apartments and located north of Columbus, OH.

The Polaris Retirement Community was in the final stages of construction when UCH was invited to bid on acquiring the project. The acquisition was structured to have UCH take possession following the issuance of a Certificate of Occupancy. Since UCH would be the owner at the time the project was placed into service, we were able to access tax-exempt debt. Sims explored types of financing, seeking up to a $33 million Tax-exempt Loan. UCH garnered strong interest in traditional and non-traditional financing products. UCH moved forward with Northwest Bank as their Banking Partner. 

The facility is secured by a pledge of Gross Revenues and a Mortgage on Polaris, and no recourse to the UCH Obligated Group, except $10 million in equity contributed to the acquisition. Highlights of the new facility include: i) competitive interest rate pricing and up-front/ongoing fees, and ii) expedited closing. UCH’s goal was to close the sale before the end of Calendar Year 2020. As final construction was delayed, Sims worked with the team to monitor and update cash flows, terms and covenants due to changes related to the delay.

Northwest provided a variable rate bank loan with funding for 5-years and underlying amortization of 25 years. Sims served as Swap Advisor for the financing, advising UCH regarding the synthetically fixed interest rate via a fixed-payor swap with Northwest. Based on the acquisition price of $33 million, UCH financed $26.3 million from Northwest.

Construction and inspections on the property delayed closing to summer 2021. Sims monitored the interest rate and swaps market to ensure the financing and acquisition remained attractive as market conditions changed.

The financing closed on July 28, 2021. The debt is non-recourse to the Obligated Group – not requiring any guarantees or support from the Obligated Group, allowing the Obligated Group to maintain its bank capacity for its growth initiatives. Sims was honored to play a role in this next chapter for UCH, representing our third transaction with UCH in as many years.

Financed Right®: Lynn Daly: 312.505.5688 | [email protected] or Jim Bodine: 267.360.6245 | [email protected] or Siamac Afshar: 267.360.6250 | [email protected].

ABOUT HJ SIMS: Founded in 1935, HJ Sims is a privately held investment bank and wealth management firm. Headquartered in Fairfield, CT, Sims has nationwide investment banking, private wealth management and trading locations. Member FINRA, SIPC. Testimonials may not be representative of another client’s experience. Past performance is no guarantee of future results.  Facebook, LinkedIn, TwitterInstagram.