HJ Sims Arranges $102.1M Financing for Fountaingate Gardens in Commack, New York

by Jeff Shaw

COMMACK, N.Y. — HJ Sims has arranged a $102.1 million financing for Fountaingate Gardens, an independent living community being built in Commack, located on Long Island.

The Gurwin Healthcare System has been providing healthcare services to Long Island residents since 1988 through the Gurwin Jewish Nursing and Rehabilitation Center and the Fay J. Lindner Assisted Living Residences. Gurwin Jewish Healthcare Foundation acquired land adjacent to Fay J. Lindner Residences with the goal of completing the continuum of care through development of an independent living community to be known as Fountaingate Gardens.

Working with Eventus Strategic Partners and Perkins Eastman, Fountaingate Gardens will initially add 129 independent living apartments and offer various services/amenities to its residents. Healthcare services will be provided at the Gurwin facilities contiguous to the community.

The foundation donated $4 million to cover early expenses and loaned nearly $16 million for pre-development capital. It also donated the 10.5-acre site, appraised at $4.7 million. Total development costs, including the tax-exempt bonds, are approximately $113.8 million. The foundation has committed $25.5 million to the project.

The Foundation agreed to an entrance fee guaranty agreement, whereby it would advance up to $2.9 million, equal the entrance fees on six independent living units, in the event occupancy did not meet expectations upon opening. It also committed $10 million in the form of a liquidity support Agreement.

The $102.1 million tax-exempt bond issue was divided into two short-term entrance fee principal redemption bonds series and a long-term bond series.

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