Herbert J. Sims & Co., Inc. - Hillsborough Township, NJ

Amsterdam at Hillsborough

financing a start-up proprietary assisted living facility with tax-free bonds

Avalon at Hillsborough

At the end of May 2005, Sims closed a $12.055 million financing for Pilgrim River, LLC (“Pilgrim River”). The Project, known as The Avalon at Hillsborough, will be an 81-unit/97-bed assisted living facility and located in Hillsborough Township, New Jersey. Nineteen of the 97 beds are intended for persons with Alzheimer’s disease and related dementia. Sims’ relationship with the Managing Members dates back over 25 years, and Sims previously financed both Bridgeway Care Center (1980) and the Avalon at Bridgewater (1999).

The bonds were issued under section 142(d) of the Internal Revenue Code of 1986, which requires that at least 20% of the units in the Project be occupied by residents whose income does not exceed 50% of median income for the area.

The financing includes two tranches of debt. The first tranche consists of $10.88 million of tax-exempt, non-rated fixed rate bonds. The tax-exempt bonds, which were issued at a discount and are subject to the alternative minimum tax, carry yields from 6.25% to 6.75%, with maturities ranging from 15 to 30 years. The second tranche consists of $1.175 million of taxable, non-rated fixed bonds; this tranche will finance a portion of the costs of issuance, funded interest and working capital which could not be paid for from proceeds of the tax-exempt bonds.

Don Pelligrino, Owner and Chief Executive Office of the Avalon at Hillsborough thanked Sims for the “fantastic job that was done in securing the financing for our project... the rate on the bonds was beyond our expectations and will go a long way in making our project a success.”