We mentioned last week that the lending market for not-for-profit CCRCs has been quite active, particularly to fund expansion projects, and another one was announced by HJ Sims.
Sims raised $38.18 million for Presbyterian Villages of Michigan (PVM), a Michigan-based not-for-profit that has been operating since 1945. Sims’ relationship with PVM began in 2015 when they underwrote a bond issue and then continued to provide advisory services.
In 2002, PVM acquired land adjacent to its Village of East Harbor campus for an expansion project. Sixteen years later, they opened a new health and wellness center. The current financing by HJ Sims will finance the final phase of this center plus an expansion of the independent living component of the campus known as Harbor Inn. This will include 12 rental single-level ranch homes, 36 rental independent living units, and a three-story apartment building with 60 IL units.
Along the way, PVM absorbed the Harry & Jeannette Weinberg Green Houses at Riverton Neighborhood into its Obligated Group. Sims underwrote $18.18 million of tax-exempt bonds and directly placed $20 million of draw-down bonds with Huntington Public Capital Corporation. The all-in cost of capital for the issuance came to 3.48%. Not too shabby.