It took a couple of tries, but HJ Sims arranged $41.9 million in financing for Sunset Retirement Communities, a multi-campus, not-for-profit senior living provider in Michigan. The company has grown its holdings over the past decade, starting development on its Jenison campus in 2009 and completing it in 2015. Then, after completing a market study in March 2020, Sunset determined to add a Phase III with 62 independent living apartments, 20 IL villas and amenity spaces. That was not an ideal time to begin filling a new community.
After approaching potential lenders in May 2020, Sunset delayed the financing in order to focus on its existing operations. However, HJ Sims continued to explore capital structures for Sunset, which owned a strong balance sheet and foundation support that allowed them to self-fund the development of the 20 villas. However, to start construction of the IL apartments and refinance existing debt, Sims re-entered the picture in the fall of 2020. There were large termination costs associated with an existing long-term swap. But Sims found a new commercial banking partner that would finance the apartment project and replace one of the lenders.
