A CCRC in northwest Washington, D.C. is ready to expand, and in a big way. Currently featuring 127 independent living units, seven assisted living units and 60 skilled nursing beds, not-for-profit Ingleside at Rock Creek faced a growing wait list and limited health care services. So, a couple of years ago, ownership decided it was time to grow, with a plan to add 105 IL units, 32 memory care units, 34 skilled nursing suites, 21 assisted living units and therapy/rehab spaces. Expected to break ground soon, the project will nearly double the CCRC’s units, even though most of the existing AL units will be taken offline to complete it.
HJ Sims arranged the construction financing, through a mix of short-term bank financing and long-term bond financing. To satisfy the loan-to-value constraints for all parties, since the senior debt exceeded 85% LTV, Sims structured a tranche of subordinate debt that will convert to senior debt once the outstanding bank debt falls below 85% LTV. Altogether, Sims arranged $190 million in financing, which comes out to about $500,000 per unit for the whole campus.
