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“Working with HJ Sims was an exceptionally positive experience. They walked me through every step of the process (sometimes two or three times!), and diligently worked toward assuring the best outcome for the Housing Authority and Banyan Place. The final product significantly increased our cash flow and our available cash. They understood the goals and the needs of our program and tirelessly worked with me and all the members of the team to insure that we realized our goals.”
Judie Aigen On March 30, 2006, Sims completed an $8,415,000 non-rated tax-exempt bond issue for the Boca Raton Housing Authority, which owns a senior living apartment community of 93 independent living units in upscale Boca Raton, Florida (Banyan Place). background
Banyan Place consists of two two-story buildings on an approximately 2.8 acre site; it opened in 1998 and serves the housing needs of medium and low income seniors. The Boca Raton Housing Authority self-manages Banyan Place, which is fully occupied with a wait list. challenge Banyan Place was paying 6.75% to 8.70% on its existing debt when Sims approached the Boca Raton Housing Authority with a recommendation and plan to refinance its bonds. The Boca Raton Housing Authority had recently been told by another underwriter that there would not be a market for Banyan Place’s refunding bonds. implementation Sims was able to find an opportunity where others failed and advance refunded Banyan Place’s Series 1997 Bonds in just nine weeks. The Sims financing provided Banyan Place with approximately 5% net present value savings and annual debt service savings of approximately $70,000 through 2032. In addition to providing excellent cash flow savings, Sims was able to structure a release of approximately $230,000 of Banyan Place’s restricted trustee-held funds, thereby substantially increasing Banyan Place’s unrestricted liquidity. Also, prior to the refinancing Sims was able negotiate a favorable termination of Banyan Place’s existing investment agreement, resulting in a cash payment of approximately $60,000 to Banyan Place. result The upfront liquidity boost and ongoing cash flow savings provided by the 2006 bond issue will further enable Banyan Place to provide exceptional, affordable service to its residents. |
The typical resident is a single person aged 70+ years whose lifestyle has been somewhat curtailed due to loss of transportation, loss of family and friends, a concern for security or other reasons that result in a desire for services not normally provided in privately owned living environments. Banyan Place offers residents two meals a day, social activities including crafts, cultural and recreational activities, transportation, twenty-four hour call-button emergency support services, and social services.
