HJ Sims Facilitates an Acquisition Financing to Expand Senior Living Organization



MARCH 22, 2017

CONTACT: Tara Perkins, PR & Marketing Specialist

203-418-9049 | tperkins@nullhjsims.com

HJ Sims Facilitates an Acquisition Financing to Expand Senior Living Organization

FAIRFIELD, CT– HJ Sims, a privately held investment bank and wealth management firm founded in 1935, is pleased to announce a successful financing in conjunction with Elder Care Alliance (ECA)’s growth strategy. ECA is a non-profit organization located in Alameda, California that serves seniors through holistic wellness, education and innovation. ECA offers assisted living, memory care, skilled nursing and independent living. Working with ECA, Rockwood Financial and Fannie Mae program lender CBRE, Sims assisted in helping ECA strategic growth initiative by helping structure a $46.5 million acquisition of the Villa at San Mateo (an age restricted multi-family apartment community) funded through a $30.4 million debt financing and a $16.1 million equity contribution. ECA now serves 660 residents on five campuses across California.

HJ Sims was engaged as an advisor to ECA’s Management team and Board to formulate ECA’s strategic growth initiative, which focuses on achieving growth primarily through strategic acquisitions. Although ECA’s acquisition of The Villa at San Mateo (VSM) was outside of ECA’s primary acquisition priorities, as an age restricted apartment community, this acquisition represents an opportunity for ECA to fulfill its mission and expand its services in a strong market.

Sims worked with ECA and real estate consultant Rockwood Pacific to evaluate financing alternatives. Sims assessed the viability of non-recourse bank acquisition financing with commercial lending institutions. This funding vehicle offered competitive interest rates; however the lower loan-to-value constraints and financial guarantees required by banks were onerous and cost-prohibitive. Sims was challenged with securing low-cost financing with competitive terms, while achieving ECA’s objective of completing the financing by year-end 2016. Sims served as ECA’s financial advisor to secure a Fannie Mae loan, which afforded ECA non-recourse debt and flexible loan terms, competitive pricing, reduced issuance costs and an expeditious execution process. Working with ECA, Rockwood Financial and Fannie Mae program lender CBRE, Sims assisted in the structuring of a $46.5 million acquisition of VSM, funded through a $30.4 million debt financing and $16.1 million equity contribution.

“I highly recommend Aaron Rulnick for his critical thinking, strategic nature and willingness to advocate for what is in the best interest of the client. He has a long-term view—focused on a long-term relationship—and was instrumental in getting the financing done in a very short timeframe,” said Adriene Iverson, President and Chief Executive Officer, Elder Care Alliance.

“Sims was pleased to play an integral role in providing ECA with a streamlined process. Despite a compressed timetable, ECA successfully closed the VSM acquisition financing in December 2016, in advance of deadline,” says Aaron Rulnick, Managing Principal, HJ Sims.

For more about HJ Sims and Financed Right® solutions, please contact Aaron Rulnick at arulnick@nullhjsims.com or 301-424-9135.

ABOUT HJ SIMS: Founded in 1935 on Wall Street, HJ Sims is celebrating more than 80 years of service as a privately held investment bank and broker-dealer with $2.2 billion of assets under management. HJ Sims is one of the country’s oldest underwriters of tax-exempt and taxable bonds, having raised $22 billion for projects throughout the US. The firm is headquartered in Fairfield, Connecticut, with investment banking, private client wealth management and trading offices in Maryland, Massachusetts, Florida, Minnesota, New Jersey, Pennsylvania, Texas and Puerto Rico. Pershing LLC, a subsidiary of The Bank of New York Mellon Corporation, is custodian of all client assets. HJ Sims is not affiliated with Elder Care Alliance. For more information, visit: www.hjsims.com/ourstory. Investments involve risk, including the possible fluctuation of principal. Member FINRA, SIPC. Follow HJ Sims on Facebook, Twitter and LinkedIn.

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