WASHINGTON, D.C. — HJ Sims has arranged $190 million in financing for Ingleside at Rock Creek, a continuing care retirement community in Washington, D.C. The funds will be used toward a 105-unit independent living expansion at the property named Creekside.
In addition to new independent living units, the owners of Ingleside plan to add a health services building and open its first memory care offerings. General renovations to the campus are planned, as well. Ingleside sought the expansion due to its growing wait list for potential residents.
The project will require taking some units offline during a 30-month construction period. This led to a more complicated financing due to the temporary negative effect on occupancy and cash flow.
Sims sought to maximize the amount of bank financing (rather than bonds) in the package, enabling Ingleside to draw down a portion of funds as needed, minimizing the interest costs during the prolonged construction period. Long-term bond financing makes up a portion of the financing as well.
Along with securing $60.5 million in new bank financing and retaining $26.8 million of existing bank debt, Sims arranged $112 million sold to institutional bond funds and over $17 million sold to individual investors.