ABINGTON TOWNSHIP, Pa. — HJ Sims has arranged $61.6 million in financing for an expansion project at Rydal Park, a continuing care retirement community (CCRC) in Abington Township, approximately 10 miles north of Philadelphia.
Presby’s Inspired Life, an affiliate of HumanGood, operates the community as well as two others in the Philadelphia metro area.
The expansion, named Rydal Waters, will sit on 33 acres and comprise 84 two-bedroom cottages. The project also includes a clubhouse, and the location is walking distance to restaurants, a grocery store and a rail station. The first phase is scheduled for completion in 2020.
Sims initially worked with Presby’s as financial advisor in 2009 securing a $55 million loan to reposition Rydal Park’s campus. Since then, Sims helped the owner secure its initial investment-grade rating from Fitch in 2010, served as financial advisor to Presby’s on a bank financing in 2013, and acted as underwriter and sole manager in 2017 on PPHI’s $88.1 million fixed-rate bond issue, which refinanced the bank financing and financed capital improvements. The 2017 bond financing preserved the bank’s lending capacity for the Rydal Waters expansion project.
The financing for the expansion is a draw-down, bank-held, tax-exempt loan with three years of interest-only payments and a 30-year amortization. During the interest-only period, Presby’s expects to collect $41 million of initial entrance fees to repay some of the loan.