A senior living development in Delray Beach, Florida is inching towards opening its doors and just received $51.45 million in bonds to cover lease-up costs and other cash needs, arranged by HJ Sims. The mix of tax-exempt and taxable bonds, including $11.6 million in subordinate tax-exempt bonds, were sold to institutional investors and to Sim’s investors. They featured step-coupons, which would have an initial lower coupon during construction and lease-up and increase to a more traditional, non-rated coupon after that period. Sims also structured an optimal redemption window starting in five years with a mandatory tender of 11 years from closing.
The project is sponsor Tuscan Garden’s third branded development, having previously built communities in Venice (opened in 2016) and Palm Coast (opening in February). It will consist of 88 assisted living and 50 memory care units.
