A major CCRC project being built on the campus of SUNY Purchase College in Purchase, New York just got a major boost after receiving a $398.1 million bond issue arranged by HJ Sims. The tax-exempt and taxable bonds were closed for Purchase Senior Learning Community, Inc., which was formed to develop the community with 68 assisted living/memory care beds and 220 independent living units and villas. Of those IL units, 20% will be reserved for local residents earning no more than 80% of the area’s median income. Integrated into the community will be a “learning commons” consisting of classrooms, studios, gathering and performance spaces utilized by the residents but also students for lectures, performances, mentoring and other educational purposes.
HJ Sims has served as investment banker for the project since 2014, helping structure the necessary financing for each step of the process. In 2018, Sims raised $15 million in Bond Anticipation Notes (BANs) for the initial development costs which supplemented a $5 million grant received by the Purchase College Foundation Housing Corporation. The BANs issue, plus accrued interest, was fully repaid with the proceeds of this financing.
The current $398.1 million bond issue comprises $179 million of Entrance Fee Principal Redemption Bonds and several long-term bonds, including one with a final maturity of 2056 and a yield of 4.625%. The bonds were placed with 32 institutional bond funds and individual clients in Sims’ Private Wealth Group.
