AMES, Iowa — HJ Sims has arranged a $54.2 million financing package for the expansion and repositioning of Northcrest Community, a continuing care retirement community (CCRC) in Ames, approximately 35 miles north of Des Moines.
The project will add a 24-bed replacement skilled nursing facility, 32 assisted living apartments and 48 independent living apartments at the nonprofit community. Renovations will also be made to common areas and some existing apartments.
Sims sought to facilitate a tax-exempt financing that would fund the expansion and refinance existing bank debt. Sims created an Entrance Fee Principal Redemption Bonds (EFPRB) series to allow the capture of initial entrance fees from new residents and reduce debt as quickly as possible. Due to the velocity of pre-sales and Northcrest’s strong cash position, the pre-sale requirement for the financing was 50 percent, less than the industry average requirement of 70 percent.