FAIRFIELD, Conn., Oct. 5, 2020 /PRNewswire/ — HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce the successful September 2020 financing in the amount of approximately $135 million for the Toby and Leon Cooperman Sinai Residences of Boca Raton (Sinai). Located in Boca Raton, Sinai is a life plan community managed by Life Care Services comprised of 234 independent living units, 48 assisted living units, 24 memory-support units, 60 skilled nursing beds and common amenities. Sinai opened in January 2016 and achieved stabilized occupancy in less than a year. Sinai is located on The Jewish Federation of South Palm Beach County Florida campus.
The Sinai Board determined to undergo an expansion to add 111 independent living units to the community. Sinai and its development partner, LCS-D, had commenced pre-development work to shorten its post-financing construction period and were driving towards a September 15 vertical construction start, amidst COVID-19. Sinai experienced strong pre-sale velocity despite the pandemic, and achieved 70% pre-sales during the bond marketing process.
Due to the accelerated post-financing construction period, and Sinai’s track record of rapidly filling independent living units, coupled with COVID-19 impacted constraints on bank financing, Sims and the Sinai team issued tax-exempt fixed rate bonds for the entire expansion. Sinai financed a portion of its development costs with taxable bonds, creating a $5 million taxable tranche of Entrance Fee Principal Redemption Bonds®.
Sims underwrote Entrance Fee Principal Redemption Bonds® up to approximately 91% of the initial entrance-fee pool of the expansion. The Series 2020 Bonds were robustly oversubscribed, permitting adjustment of the scale on the pricing date such that the long-term bonds (2055 maturity) were priced at 5.00% to yield 4.60%, permitting Sinai to borrow approximately $135 million with only a $2.4 million increase in maximum annual debt service over their existing maximum annual debt service. Sims facilitated the implementation of modifications to Sinai’s existing master trust indenture – providing greater flexibility on testing of debt service coverage (switching to annual versus quarterly testing) to accommodate intra-year swings in entrance fee turnover.
“Once again, HJ Sims has provided their exceptional professional expertise providing pre-development and construction development financing, in the amount of $135 million, for the Phase II Expansion of the Toby & Leon Cooperman Sinai Residences of Boca Raton. Sims was the underwriter in 2014 for the $214 million bond issuance for the Sinai Residences initial start-up and development financing. Sinai Residences is now one of the most successful premiere luxury senior living facilities in the country. The Sims’ team’s preparedness, availability, scheduling, communication, personal touch and extensive knowledge of the bond industry and markets allowed the Sinai Expansion project to be funded on-time and at exceptional rates. An owner could not ask for better representation. I look forward to the continuation of our outstanding relationship, and future funding opportunities, with Sims,” said Mel Lowell, COO, Jewish Federation of South Palm Beach County, and Board Member, Sinai.
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ABOUT HJ SIMS: Founded in 1935, HJ Sims is a privately held investment bank and wealth management firm. Headquartered in Fairfield, CT, Sims has nationwide investment banking, private wealth management and trading locations. Member FINRA, SIPC. Testimonials may not be representative of another client’s experience. Past performance is no guarantee of future results. Facebook, LinkedIn, Twitter, Instagram.
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SOURCE HJ Sims