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sims provides equity for assisted living acquisition Herbert J. Sims & Co. placed $18,000,000 senior mortgage financing and underwrote $4,325,000 mezzanine taxable bonds for an affiliate of Shelter Development to finance the acquisition of New Pond Village, a CCRC in Walpole, Massachusetts. New Pond contains 167 independent living units and 32 assisted living units. The security for the mezzanine loan is a subordinate mortgage and a subordinate pledge of ownership interest in the borrower. The financing had a unique structure where the residents’ entrance fee refunds have a first mortgage position. Sims was able to find a senior lender for a second position and underwrite its mezzanine loan with a third lien to provide a low cost of capital at a high loan to value ratio.
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