Marsh's Edge

sims provides three-stage 100% funding for a $100 million resort ccrc on st. simons island

In August 2004, Herbert J. Sims completed the financing for Marsh’s Edge, a non-profit start-up CCRC being developed on St. Simons Island, Georgia and sponsored by members of Christ Church, Frederica. The project will be built on a 74-acre site donated to the nonprofit by the Sea Island Company; the site is part of an upscale, residential golf course community being developed by the Sea Island Company.

Because the newly-formed non-profit had no financial resources, Sims was retained to provide 100% of the seed capital required to finance design, development and marketing. In addition, the project required construction of a one-quarter mile access road through the site, with a bridge over designated wetlands. If construction of the road and bridge were delayed until after permanent financing, construction of the community would be extended for approximately six months, increasing the cost substantially.

Sims created a two-tier pre-finance capital structure. In December 2000, Sims funded $4,225,000 through Sims’ taxable MatchCap℠ program to initiate design and marketing activities. In December 2002, when pre-sales reached 50%, Sims underwrote $4,265,000 tax-exempt Bond Anticipation Notes, which allowed funding of the remaining pre-sales requirement and construction of the road and bridge prior to permanent financing. The 2004 financing included $49,360,000 of long-term fixed rate bonds and $8,000,000 of adjustable rate bonds, combined with a $43,000,000 construction loan.