Jll, Hj Sims Secure $473m Bond Financing In Largest-ever Issuance For Single-site Nonprofits

JLL has arranged what it says is the largest non-profit single-site senior living bond issuance in the industry’s history in a move that could pave the way for the rise of similar models down the road.

On behalf of a group including Harbert South Bay Partners, Lamb Properties, P3 Foundation and Momentum Senior Living, JLL arranged $473 million in tax exempt and taxable bond financing to develop The James, a 350-bed senior living community in Irvine, California.

As planned, the community is slated to include 210 independent living units, 110 assisted living units and 30 memory care units in studio, one- and two-bedroom floor plans averaging 837 square feet. Planned amenities include multiple dining venues, an indoor pool and spa, wellness gym and yoga studio, therapy rooms, hair salon, media lounge, golf simulator, dog park and pet washroom, and bocce ball courts.

The community is set to rise on a parcel of land near an upscale retail center and in a location that is “highly visible from the major roadways.”

HJ Sims was hired as the sole underwriter of the 35-year financing, which was made up of $442.1 million in publicly offered tax-exempt series 2024A bonds, almost $13 million in taxable series 2024B bonds and $18 million of tax-exempt series 2024C and 2024D bonds.

Although tax-exempt financing is not new in senior living, Jay Wagner, head of JLL’s senior housing capital markets team, noted that the specific structure used was “innovative for both the clients involved and bond investors. According to JLL, the transaction is also the largest tax-exempt senior living financing the company has handled in 2024.

The James is the first ground-up senior living development in the city of Irvine in nearly three decades, according to JLL. The city’s number of adults aged 65 and older is set to increase to a share of 29% of the total local population in the years to come, the global commercial real estate and investment management company noted.

Aaron Rulnick, head of Investment Banking at HJ Sims, said that the transaction will “serve as a template for partnerships between non-profit borrowers and for-profit developers and operators.”

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