HJ Sims has a long history with the SearStone Retirement Community, a CCRC in Cary, North Carolina, and recently closed another financing for the property. Sponsored by Samaritan Housing, Inc., the community currently consists of 131 independent living units, 38 IL estate homes, 14 assisted living units and 25 skilled nursing beds.
HJ Sims originally financed the first phase of the CCRC with a $117 million non-rated fixed rate bond issue in 2012. Then, the investment bank funded an expansion in 2016 with an $8 million issue. HJ Sims also provided the original seed capital, and the funds to advance refund the 2012 issue, and provided a portion of the pre-development capital for a Phase II expansion.
Phase II will just about double the size of the CCRC, with an additional 152 independent living units, 28 assisted living units, including 14 memory care units, and 24 skilled nursing suites. New dining venues common spaces and green spaces will also be provided. HJ Sims had already funded much of the pre-development costs with $5.5 million of proceeds from the Series 2017B bonds, but it also successfully underwrote $4.6 million of tax-exempt bonds and $2.0 million of taxable bonds to provide supplemental capital for the project.
The transaction also gives the CCRC covenant relief and sufficient operating, financial and strategic flexibility to embark on the expansion. Retirement Living Associates is the operator, while Greenbrier is the developer.
