HJ Sims Heads to Hawaii for Latest Financing
Two skilled nursing facilities in Hawaii refinanced their debt and lowered their interest rate by about 60% in a transaction led by HJ Sims. The facilities, both located in Honolulu, consisted of 92 beds and 75 beds, respectively. Before this refinancing, they were collateralized with a single, high-interest rate bridge loan that had both a short term and expensive extension provisions. Sims Mortgage Funding (SMF) underwrote a $14.08 million loan through HUD to take out as much of the bridge debt as possible, resulting in a loan at about 80% of the estimated market value. The loan came with a 35-year term and a 2.05x debt service coverage ratio. In addition, to round out the capital stack,... Read More »
Preparing for the Future of Seniors Housing
On October 15th, subscribers to The SeniorCare Investor and members of the American Seniors Housing Association (ASHA) met at the Duane Morris offices in New York City to discuss a topic relevant to many of our readers: the future of the seniors housing market in the 2020s and beyond. Where do you begin on a topic like that? Well, Steve Monroe led a panel discussion with Wayne Kaplan of Premier Senior Living Group, Matthew Whitlock of Berkshire Residential Investments, Jeffrey Sands of HJ Sims, Steven Krieger of Engel Burman and Meredith Oppenheim, an industry expert and alum of Sunrise Senior Living and Ventas. The conversation was wide ranging, but here were some of the key takeaways:... Read More »
Affordable Housing Secures HUD Financing from HJ Sims
Much of the investor attention in seniors housing is paid towards the higher-end, luxury communities. Those properties are able to charge much higher rents and usually operate at higher margins. But a huge swath of the senior population cannot come close to afford living in those communities, making the demand for middle- and low-income units very strong in some markets. With that, HJ Sims arranged a cash-out refinance for a 125-unit affordable seniors housing community in Middletown, Pennsylvania (Harrisburg MSA) to help its owner both distribute equity to its partners and invest in major upgrades to the community. Originally built in the 1980s, it operates under a Section 8 HAP Contract... Read More »
Clousing Arranges Second Savannah Sale This Year
Closing his second senior living transaction in Savannah this year, Brad Clousing of Senior Living Investment Brokerage sold a large senior living community located just 10 minutes away from the historic center downtown. Built in 1986 and 1998, the 209-unit community features a majority of independent living units (146), but assisted living and memory care rooms too. Plus, the previous owner, HJ Sims, recently converted its personal care license to an assisted living license, giving the buyer added flexibility when it comes to acuity types. That should help as they embark on a plan to increase occupancy (from its current 74%) and boost the operating margin (from about 16% on $4.9 million... Read More »Schedule a demo
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