Forum at Rancho San Antonio

HJ Sims Arranges Commercial Loan for Community Expansion of Forum at the Rancho San Antonio

Artist rendering, subject to change.

“HJ Sims understands The Forum, the Senior Industry, the banking community and their insight surpasses other firms we have worked with. Melissa and Aaron represented us with highest level of integrity and professionalism, provided thoughtful insights and exceeded our expectations in every way. We truly value the sound, timely and objective advice and solutions they provided throughout every step of the closing process. HJ Sims did an excellent job articulating our unique equity business model to all parties. Their personable yet professional approach was much appreciated as we negotiated our way to a very successful outcome for both parties. We could not have made it to the finish line on time without their guidance and knowledge. I look forward for our partnership to grow and will definitely use HJ Sims again when the opportunity arises.”

– Nancy H. Kao, Executive Director, The Forum at Rancho San Antonio

“With 100% certainty, I fully recommend HJ Sims! With every step of the way, from the initial RFP development, to the Bank visits, to the proposal reviews and analysis, and all the way through the negotiating and final signing of our loan, Melissa and Aaron provided leadership, insight and advice that far surpassed our dreams. They very quickly learned our business and was able to bring their deep industry knowledge to bear and help us achieve a significant milestone for our community. Their professionalism and genuine nature allowed for a rewarding experience.”

– Mike Schlossberg, CFO, The Forum at Rancho San Antonio


Partnered Right®
  • The Forum at Rancho San Antonio (the “Forum”) currently provides 319 independent living units and a healthcare facility in hills of Cupertino, California near the Rancho San Antonio Preserve. The Forum is owned by Rancho San Antonio Retirement Housing Corporation (RHC). Residents of the Forum purchase memberships in RHC in a cooperative fashion. Rancho San Antonio Retirement Services, Inc. (RSI) provides healthcare services to members of the Forum.
  • To facilitate improvements to and expansion of their existing community, the members of the Forum undertook a multi-phased project that would add 23 independent living units, construction of a memory care building and new skilled nursing building, renovations to existing healthcare buildings and common areas.
Structured Right®
  • Total project costs were projected to approximate $92.5 million with the Forum contributing $10 million in equity.
  • To minimize borrowing costs and impact to its balance sheet, the Forum sought a revolving construction loan in the amount of $75 million that would allow proceeds from the membership purchases for the 23 additional independent living units to deleverage during the construction process.
Executed Right®
  • Sims coordinated a bank request for proposals process that was widely distributed to prospective commercial lending institutions and facilitated site visits for prospective lending institutions resulting in a number of attractive proposals.
  • Sims further coordinated the financing process with the selected lender, the Forum and their legal teams to drive the transaction to close on time.
Financed Right®
  • The Forum was able to obtain a loan with a three year revolving loan feature that would allow them to deleverage during the construction period and then amortize a balance of $32 million after the end of the three-year draw period for an additional 10 year period on a 30 year amortization schedule.
  • The revolving structure of the loan allows for flexibility in the total construction draws as the GMPs for the healthcare facilities were expected post-closing.
  • At closing, the Forum executed a three-year forward swap on the $32 million balance allowing them to lock in an all-in rate that was only 79 basis points higher than the all-in variable rate on the date of execution.
Partnered Right®

Nestled in the hills of the Rancho San Antonio Preserve in Cupertino, California, the Forum at Rancho San Antonio is an existing resident-owned life plan community, managed by Life Care Services, which consists of 319 independent living residences, 58 assisted living suites and 48 nursing beds. Rancho San Antonio Retirement Housing Corporation (“RHC”), a California taxable nonprofit mutual benefit corporation, owns the Forum. Rancho San Antonio Retirement Services, Inc. (“RSI”) is a separate California taxable nonprofit mutual benefit corporation that provides healthcare services to members of the Forum and the general public. RSI leases the healthcare center from RHC. Residents of the independent living units of the Community are required to purchase memberships in RHC and to enter into occupancy and healthcare agreements with RHC and RSI, respectively. The initial sale of all memberships was completed by December 31, 1996, and occupancy of the Forum in 2018 was over 95%.

Structured Right®

Given the demand for independent living units at the Forum, as well as its desire to expand options available to its residents, renovate and add to its existing healthcare options, and allow for execution of its master plan without additional occupancy fee increases, the Forum embarked on a multi-phase expansion and repositioning project. The 23-unit independent living expansion will be comprised of single and duplex-style villas with an average of approximately 1,600 to 2,100 square feet, two-car garages, and market sales prices ranging from $2 to $3.2 million. In addition, there will be approximately 10,500 square feet of renovations to its existing assisted living space, an addition of 26 beds in a new memory care building, approximately 45,000 square feet of renovations to its existing skilled nursing facility, adding 10 beds and modernizing units by adding bathrooms to all units and shifting the mix from primarily semi-private to primarily private. Finally, approximately 27,000 square feet of renovations will be completed with respect to the existing common areas. Due to the size of the project, the Forum was seeking a financing structure that would provide flexibility throughout from construction of the independent living villas through the planning, design and construction phases of the healthcare facilities. As such, Sims prepared a request for proposals for a maximum $75 million revolving construction loan that would allow the Forum to draw and repay with membership unit purchase proceeds during the multi-phase construction period.

Executed Right®

Sims conducted an extensive request for proposal process and worked closely with management of the Forum and the boards of RHC and RSI to evaluate and consider the financing proposals provided. Furthermore Sims worked alongside the Forum and its counsel, its selected lending partner, BBVA Compass and its counsel to lead the deal team through the financing process to a successful closing while navigating through the nuances brought to the transaction as a result of the Forum’s cooperative-style ownership structure, an underlying ground lease of the land to RHC by the Archdiocese of San Jose, the DSS approval process and a need to start construction on an accelerated pace due to the rising costs of construction in the San Jose valley.

Financed Right®

On December 11, 2018, Sims facilitated the closing of the $75,000,000 revolving construction loan (the “Series 2018 Loan”). It is anticipated that the Series 2018 Loan will be repaid during the draw period with the proceeds of membership unit purchases such that at the end of the first three years, $32 million will remain outstanding and amortize over the following 10 years with a 30 year amortization. To protect against the steadily rising interest rate environment, Sims advised the Forum regarding a three-year forward swap for the balance of $32 million, securing an all-in rate that was only 79 basis points higher than the all-in rate at closing.

For more information on how The Forum at Rancho San Antonio was Financed Right® by HJ Sims, please contact Aaron Rulnick at or (301) 424-9135, Melissa Messina at (203) 418-9015 or, or Patrick Mallen at (203) 418-9009 or

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