HJ Sims Helps Out New North Dakota Joint Venture

HJ Sims helped finance a couple of the largest not-for-profit providers of senior care and health care in the country in order to team up and combine their services in the Bismarck/Mandan area of North Dakota. The Evangelical Lutheran Good Samaritan Society (ELGSS), which currently operates over 224 senior living and care communities, and Sanford Health, the largest rural, not-for-profit health care system with 45 hospitals and 289 other locations, each operate skilled nursing and assisted living facilities in the Bismarck area. In addition, Sanford Health operates an acute care hospital in the city.

So, the organizations decided to form a joint venture to operate the facilities in the area. As part of the plan, an outdated skilled nursing facility will be replaced by a new $28 million facility, with 56 additional beds being added to the license courtesy of Sanford Health. The new facility will feature a transitional care unit for patients discharged from Sanford’s local hospital and other acute care providers.

ELGSS is building the facility using a short-term line of credit, but since the JV will own the facility, it was stipulated that $20.08 million of the construction costs will be reimbursed to ELGSS. HJ Sims worked with a regional bank headquartered in Sioux Falls, South Dakota and two other banks to originate a $20.47 million loan, with a 30-year amortization and 10-year fixed tax-exempt rate of 3.0% to do just that. Sims also arranged a three-year funding of a $1.0 million debt service reserve fund.

 

 

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