HJ Sims Provides Seed Capital for New University Related Life Plan Community

FOR IMMEDIATE RELEASE

DECEMBER 19, 2018

CONTACT: Tara Perkins, Assistant Vice President | 203-418-9049 | [email protected]

HJ Sims Provides Seed Capital for New University Related Life Plan Community

FAIRFIELD, CT– HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce the successful $15,000,000 financing in October 2018 for Broadview Senior Living at Purchase College, a Life Plan Community under development in Purchase New York. Broadview will be located on the campus of Purchase College, a public four-year college of visual and performing arts, liberal arts and sciences, founded in 1967 and one of the 13 colleges of the State University of New York (SUNY) system.

Known for its arts programs and home of the Neuberger Museum of Art and The Performing Arts Center, Purchase continually attracts the local community to its campus. In 2003, the President of Purchase assembled a task force to determine how to best fulfill the college’s commitment to lifelong learning. A plan was formulated for the development of a senior residential community to be located on a 40-acre leased parcel of the campus and focused on intergenerational and lifelong learning. Broadview will initially consist of 220 independent living apartments and villas, 18 assisted living beds, 16 memory care beds and amenity space with room for potential expansion in later years. Twenty percent of the units will be set aside for residents earning below 80% of the local median income.

The Purchase College Foundation Housing Corporation provided $5 million to fund initial costs. An estimated $15 million will be required before permanent financing, anticipated to occur within three years. As a community under development with no operating history, financing was a challenge. Sims structured a five-year, $15 million Bond Anticipation Note (BAN) issue to fund the remaining costs. In a BANs issue, interest payments are not paid currently but with proceeds of the permanent financing.

With little collateral and repayment contingent on obtaining permanent financing, these are speculative bonds which limits potential investors. Following close cooperation with management and development teams, Sims secured the required financing commitment with an experienced institutional investment fund. Sims’ Private Client Group sold approximately $4 million to individual investors, despite a $100,000 minimum investment. Sims closed on the $15 million tax-exempt BAN issue with an interest rate 11%. Sims expects to provide up to $325 million for the construction and permanent financing of Broadview.

“The Sims team, especially Andrew Nesi, has been like a partner since we started this venture and guided us along the way. Importantly, they’ve really believed in us and the vision of creating a unique senior learning community at Purchase. We’re grateful for their hard work and professionalism in successfully securing our pre-development funding and looking forward to continuing to work with them through permanent financing,” said Wayne Rush, Vice President and Project Manager, Purchase Senior Learning Corporation.

For Financed Right® solutions, contact: Andrew Nesi at 203-418-9057 | [email protected].

ABOUT HJ SIMS: Founded in 1935 on Wall Street, HJ Sims is a privately held investment bank and wealth management firm with $2.2 billion of assets under management. HJ Sims is known as one of the country’s oldest underwriters of tax-exempt and taxable bonds, having raised $25+ billion for projects throughout the US. The firm is headquartered in Fairfield, Connecticut, with nationwide investment banking, private client wealth management and trading locations. HJ Sims is not affiliated with Purchase College, Broadview or Purchase Senior Living Corporation. Visit www.hjsims.com/ourstory. Investments involve risk, including the possible fluctuation of principal. Member FINRA, SIPC. Follow HJ Sims on FacebookLinkedIn and Twitter.