The financing of the expansion project will enable Horizon House to increase the number of people it serves and maintain a variety of housing accommodations, while continuing its long-standing tradition of the highest quality of care for individuals age 60 and older.

Seattle, WA (November 17, 2005) – Herbert J. Sims & Co., Inc. (Sims) announced today that it recently closed a $96.7 million financing for Horizon House, the premier not-for-profit retirement community in downtown Seattle. 

Sims is an investment bank focused on providing financing for the senior living industry.

Proceeds are being used to fund the development and construction of a $74 million expansion and renovation project for the existing campus and the current refunding of the Organization’s Series 1995 Bonds.

The $96.7 million financing includes a $40 million short-term construction loan and $56.7 million in tax-exempt long-term variable rate bonds issued by the Washington State Housing Finance Commission. The construction loan is provided by KeyBank with participation by Bank of America and Union Bank of California; the variable rate bonds are secured by a letter-of-credit from Bank of America with participation from KeyBank and Union Bank of California. Sims also structured and placed a 10-year unsecured interest rate swap and a 5-year interest rate cap to manage the interest rate risk on the variable rate bonds.

Horizon House currently serves more than 450 individuals 60 years of age and older through a variety of housing options and service programs. For many years there has been a waiting list of approximately 315 individuals seeking residence at Horizon House. The $74 million expansion and renovation project includes the construction of a new 19-story high-rise tower containing 100 new residential apartments, new kitchen and dining facilities, new fitness and wellness center, replacement of existing nursing beds and assisted living units with new state-of-the-art supported living apartments and renovation of all other resident common areas and amenities. Once the expansion project is completed, Horizon House will serve more than 600 individuals offering leading-edge amenities and exceptional quality services specifically designed to enhance and support the life fulfillment of individuals aging with independence and dignity.

Bob Anderson, Executive Director of Horizon House noted, “This financing will enable Horizon House to continue its 44-year long tradition of quality service and gracious living to the Seattle area senior community. The expanded facilities along with innovations in design and programming will be embraced by many generations to come.”

Sims’ spokesman John Minehan added, “Sims is committed to the senior housing industry – and to making financing for non-profit and for-profit communities more flexible, lower-cost and more accessible. Accordingly, we are delighted to be able to help Horizon House secure a financing structure that will provide economic benefits to the Organization and its residents, as well as set new standards for the senior housing industry.”