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HJ Sims Secures $41.9M Financing for Waterford Place Expansion Project in Jenison, Michigan

JENISON, Mich. — HJ Sims has arranged $41.9 million in financing for Sunset Retirement Communities, a multi-campus, nonprofit senior living provider located in Michigan.

In 2009, Sunset embarked on development of Waterford Place in the Grand Rapids suburb of Jenison, completing the campus in 2015. In 2020, Sunset pursued Phase III of the development, including the addition of 62 independent living apartments, 20 villas and amenity spaces.

The market study for Phase III (completed in March 2020) supported the need for the expansion. COVID-19 slowed down pre-sales and created a need for management to focus on existing operations. After approaching potential lenders in May 2020, Sunset’s management team delayed the financing. However, Sims continued to work with Sunset, exploring capital structures. With its strong balance sheet and foundation support, Sunset moved forward with development of the 20 villas and self-funded construction costs.

During Autumn 2020, Sims re-analyzed financing options for Sunset’s apartment expansion and existing debt. Hefty termination costs associated with an existing long-term swap limited the number of viable refinancing options. Sims identified a new commercial banking partner that would finance the apartment project and replace one of the lenders.

The post HJ Sims Secures $41.9M Financing for Waterford Place Expansion Project in Jenison, Michigan appeared first on Seniors Housing Business.

Source: Senior Housing Business

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