Herbert J. Sims & Co., Inc. - Kendal at Granville

Kendal at Granville

sims obtains a letter of credit, secured solely by the project, for the long-term bonds for a start-up ccrc

Kendal at Granville

In November 2003, Sims provided $40.6 in financing for Kendal at Granville (or the “Project”) to finance the construction of a continuing care retirement community in Granville, approximately 30 miles northeast of Columbus, Ohio. The first phase of the community will include 110 independent living units, 12 assisted living suites and 12 private skilled nursing rooms. The Project site is approximately two miles from the Village of Granville and Denison University. Sixty acres of the Project site will be leased from Denison University under a long-term ground lease. Kendal at Granville is affiliated with the Kendal Corporation, which serves as developer of the Project. The Kendal system began in 1971 and owns and operates affiliates in Pennsylvania, New York, New Hampshire, Ohio and Virginia.

Sims solicited and secured six bank proposals to finance the Project. The financing consists of two tranches of debt. The first tranche consists of a $20.4 million construction loan which will be repaid from entrance fee proceeds. The second tranche of debt consists of $20.2 million of tax-exempt variable rate bonds enhanced with a letter of credit and will be repaid from operating revenue. By securing a letter of credit for the long-term debt in lieu of issuing non-rated bonds, the Project was able to realize significant interest rate savings which generates over a 1.8x debt service coverage ratio in the first stabilized year.