JLL and HJ Sims secure $473M tax-exempt and taxable bond financing to facilitate California seniors housing rental development

NEWPORT BEACH, Calif., Dec. 2, 2024 – JLL’s Capital Markets group and HJ Sims announced today that they have arranged $473 million in tax exempt and taxable bond financing for the ground-up development of The James, a luxury rental, 350-bed seniors housing community in Irvine, California, which is the largest tax-exempt senior living financing of the year and largest non-profit single-site senior living bond issue in history.

JLL’s Seniors Housing Capital Markets team worked on behalf of Harbert South Bay Partners, LAMB Properties, P3 Foundation and Momentum Senior Living, to secure the 35-year financing with HJ Sims hired as sole-underwriter of the bonds. The financing consisted of $442.1 million of publicly offered tax-exempt senior series 2024A bonds, $12.93 million in taxable senior series 2024B bonds, and $18 million in subordinate tax-exempt series 2024c and 2024d bonds. JLL also handled the land sale to the partnership on behalf of the seller.

The James will be the first new senior living community in the Irvine market in 28 years, positioning it as the premier seniors housing property in the area. The community will offer 210 independent living units, 110 assisted living units and 30 memory care units with a mix of studio, one- and two-bedroom luxury rental units, averaging 837 square feet. An expansive amenity package will be available, including multiple dining venues, 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.

The community is positioned on a three-acre site at 1001 Gates Ave. across the street from The District at Tustin Legacy, an upscale retail center with 15.6 million visitors annually. The James is highly visible from the major roadways and is close to the I-5 and I-405 freeways allowing for quick access to the Irvine Spectrum Center, Hoag Hospital Irvine, Orange County Great Park and John Wayne Airport.

Orange County’s 65+ population is the fastest growing segment of the population, expected to increase to 29% of the total population base, creating a surge in demand for quality senior living options for years to come. The James brings a much-needed solution to this supply demand imbalance.

Jay Wagner, head of JLL’s Seniors Housing Capital Markets team, commented, “We are thrilled that our team has structured and facilitated this groundbreaking project and capitalization. While tax exempt financing has been used to finance senior living in the past; this specific structure was innovative for both the clients involved and bond investors. We could not be more excited for our clients and investors to deliver this amazing project to the city of Irvine.”

Aaron Rulnick, head of Investment Banking at HJ Sims, commented, “We are very grateful for the opportunity to work with JLL, P3 Foundation, Harbert South Bay Partners, Momentum Senior Living, and the rest of the project and financing team on this transformational bond financing, which will serve as a template for partnerships between non-profit borrowers and for-profit developers and operators.”

JLL’s Capital Markets group is a full-service global provider of capital solutions for real estate investors and occupiers. The group’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The group has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

HJ Sims is a specialized investment bank focused on providing unique capital structures for seniors housing and skilled nursing care providers. Since 1935, Sims has provided investment banking, wealth management, and institutional services, helping individual investors, organizations, municipalities and institutions realize their potential. From building wealth to building communities, HJ Sims helps clients navigate an uncertain world.

For more news, videos and research resources, please visit JLL’s newsroom.

Jones Lang LaSalle Americas, Inc. ("JLL") is a real estate broker licensed with the California Department of Real Estate, license #01223413.

An innovative seniors housing developer, Harbert South Bay Partners delivers ultra luxury seniors housing communities to its residents. Having developed more than 11,000 units over 30 years for seniors comprising over $1.6 billion in cost, Harbert South Bay Partners has always been on the leading edge of new building design and partners with operating companies that continue to provide safe quality, state-of-the-art care.

LAMB Properties, LLC ("LAMB") is a real estate investment and development vehicle for the Bluhm family in Chicago, whose patriarch is Mr. Neil Bluhm, co-founder of JMB Realty Corp. and Walton Street Capital, LLC. The firm is led by Mr. Bluhm’s son, Andy Bluhm. Over the past decade, LAMB has been involved with approximately $1.5 billion of ground-up development across various asset classes including BTR, multifamily, senior living, office, and hotel.

P3 is a national not-for-profit organization serving projects that support education, economic development, healthcare, housing, and senior communities through public-private partnerships. To learn more, please visit: p3inc.org.

Momentum Senior Living operates properties and consults for select investors of senior housing assets. With offices in Dallas and Irvine, the company supports communities and clients across the country. The company is entrepreneurial in nature, promoting cultures that focus on generating strong financial returns while providing strong resident and employee satisfaction.

Founded in 1935, HJ Sims is a privately held investment bank and wealth management firm focused on delivering a broad spectrum of financial services to its clients. Sims is one of the nation’s oldest and most respected underwriters of tax-exempt bonds, with specific expertise in the senior living sector. Since underwriting the first senior living tax-exempt bond in 1965, Sims has provided over $30 billion in financing for senior living providers nationwide. For more information, please visit: hjsims.com