Senior Solutions Now

sims provides mezzanine loan to senior solutions now

HJ Sims Investments, LLC (“HJSI”) financed a mezzanine loan for Senior Solutions Now, Inc., (“SSN”). SSN is a full service development, construction and management company that forms partnerships with churches and other faith-based partners to develop senior housing properties.

opportunity

Sims was approached by SSN with an opportunity to provide a mezzanine debt that would be used primarily to develop and own high-quality, faith-based senior living facilities. SSN will use the proceeds from the mezzanine loan to develop and own a 78-unit assisted living facility in Southaven, Mississippi, to be named LifePointe Village Southaven. Selah Management Group, a subsidiary of SSN, will manage the facility. Selah Management Group and its principals are current partners with HJSI on three other properties located in Florida, Georgia and Mississippi.

LifePointe Village Southaven - Southaven, Mississippi

challenges

The challenges were: (1) understanding SSN’s business plan to develop and operate faith-based organizations; (2) structuring the loan to provide the flexibility desired by SSN and security that gave the mezzanine loan multiple sources of repayment; and (3) ability to close on the investment in a short period of time despite the liquidity crunch in today’s market.

solution

HJSI created a single-purpose entity which was capitalized by Herbert J. Sims & Co.’s placement of taxable bonds to its high-net-worth client base. HJSI then made a loan to SSN. The funds raised by Sims, together with capital invested by and deferred compensation of SSN, were used to provide development capital for LifePointe Village Southaven.

Sims’ structure was attractive to SSN for several reasons: (1) since the investment is made directly by an HJSI controlled entity, SSN benefited from Herbert J. Sims & Co.’s extensive high-net-worth client base without having to communicate with a number of third-party investors; (2) SSN has the ability to seek additional advances under the mezzanine loan for future development projects; and (3) SSN was able to satisfy the requirements of its senior lender.

result

The taxable bonds placed by Herbert J. Sims & Co., Inc. provide funding for SSN to continue the development of LifePointe Village Southaven. The mezzanine loan security interest in Cedar Creek Life Center, a 70-unit existing assisted living facility located in Merritt Island, Florida, and other subsidiaries of SSN produce current cash flow to make payments on the mezzanine loan.