HJ Sims Arranges $30M Financing for The Knolls Continuing Care Retirement Community in Valhalla, New York

VALHALLA, N.Y. — HJ Sims has closed $30 million in financing for The Bethel Methodist Home and its continuing care retirement community The Knolls, located in Valhalla, approximately 25 miles north of Midtown Manhattan.

The community, which opened in 2002 under the name Westchester Meadows, offers independent living, assisted living and skilled nursing services on one campus. In 2008, Westchester Meadows experienced financial difficulty, which culminated in a bankruptcy filing in 2015. The community was acquired in 2016 with the proceeds of tax-exempt and taxable bonds privately placed with a single bondholder.

Under new management, occupancy at The Knolls increased from 57 percent in 2016 to 91 percent pre-COVID. The new owners invested $12 million in renovations.

The refinancing refunds the existing high interest rate debt. In addition to reducing the interest rate, a portion of the 2016 debt was to mature in 2023 and needed to be restructured to avoid a balloon payment.