A new life plan community (or continuing care retirement community, as we still call them) is going up in Collierville, Tennessee (Memphis MSA) thanks to a large $219.25 million bond placement arranged by HJ Sims.
Situated on 36 acres with 176 independent living apartments, 63 independent living garden homes, 52 assisted living units, 32 memory support units and 60 skilled nursing units, the community will also feature an impressive array of amenities. For dining, there will be five venues, an outdoor kitchen, a pub and sports bar. There will also be an athletic club, massage therapy, Jacuzzi, day spa, beauty shop, barber shop, performing arts center, movie theater, library, bank, gift shop, business center, chapel and health clinic, not to mention a huge outdoor park, event lawn and stage, fire pits and a dog park. We’re sure we missed some others too.
Of the 176 independent living units and 63 IL garden homes scheduled to be completed in June 2021, already 70% have been pre-sold. Retirement Communities of America will operate the campus, along with its sister community, Kirby Pines Estates, also in Memphis.
To fund the project and lower annual debt service, Sims structured a 40-year financing that included non-rated, fixed-rate bonds and bank-purchased, draw-down bonds. The community also obtained a revolving credit facility from a bank for the garden homes. By involving banks, Sims was able to save about $6 million in carried interest. Sims also structured a liquidity support agreement and coverage support agreement to enhance credit and security for investors. Sims and co-manager on the financing Duncan-Williams placed the bonds with 20 institutional investors and about $17 million with accredited individual investors.