#United States #Irvine #Senior Housing #JLL #HJ Sims

Groundbreaking Financing for Senior Living in Irvine

The recent announcement by JLL's Capital Markets group and HJ Sims marks a significant milestone in the development of senior housing in California. They successfully arranged a whopping $473 million in bond financing, both tax-exempt and taxable, aimed at the ambitious construction of The James, a luxury rental seniors housing community in Irvine, California. This financing is not just remarkable for its size; it is also recognized as the largest tax-exempt senior living financing for the year and the most extensive single-site senior living bond issue in nonprofit history.

Financing Breakdown

The financing consists of several components, including $442.1 million in publicly offered tax-exempt senior series 2024A bonds, $12.93 million in taxable senior series 2024B bonds, and an additional $18 million in subordinate tax-exempt series 2024c and 2024d bonds. JLL was instrumental in facilitating this 35-year financing and also managed the land sale on behalf of the seller involved in this collaborative venture with partners such as Harbert South Bay Partners, LAMB Properties, P3 Foundation, and Momentum Senior Living.

The James: A Unique Living Community

The James is set to be the first new senior living community constructed in the Irvine area in 28 years. With a focus on providing the highest quality of life for its residents, The James will feature 350 beds divided into 210 independent living units, 110 assisted living units, and 30 memory care units. The luxury rental units will boast an average size of 837 square feet, with options available in studio, one-, and two-bedroom configurations.

Potential residents can look forward to an extensive assortment of amenities designed to promote well-being and a vibrant lifestyle. The community will offer multiple dining venues, indoor pool and spa facilities, a wellness gym and yoga studio, therapy rooms, a hair salon, a media lounge, a golf simulator, a dog park, and a pet washroom, as well as bocce ball courts.

The site occupies a prominent three-acre parcel at 1001 Gates Ave, conveniently located across the road from The District at Tustin Legacy, an upscale shopping destination drawing over 15 million visitors annually. Additionally, its proximity to major roadways and freeways enhances accessibility to local attractions like the Irvine Spectrum Center, Hoag Hospital, Orange County Great Park, and John Wayne Airport.

Meeting Growing Demand

With Orange County experiencing a rapid growth in its senior population, estimated to reach 29% of the total demographic, the demand for quality senior housing options is soaring. The James stands poised to address this critical supply-demand imbalance, offering a novel solution for the region's aging population.

Perspectives from the Experts

Jay Wagner, the head of JLL's Seniors Housing Capital Markets team, emphasized the innovative nature of this financing structure, which, while using tax-exempt bonds for senior living has precedents, presents a fresh approach for both the involved clients and bond investors. He expressed enthusiasm for delivering such a crucial project to Irvine.

Aaron Rulnick, HJ Sims' head of Investment Banking, echoed this sentiment, highlighting the collaborative effort behind the transformational bond financing. He underscored the significance of this partnership between nonprofit entities and for-profit developers and operators as a model for future projects.

Long-Standing Impact

JLL’s Capital Markets division is a comprehensive provider of capital solutions tailored for real estate investors and occupiers, leveraging localized market expertise for the optimal advantage of clients globally. HJ Sims, established in 1935, specializes in creating tailored financial structures aimed at facilitating senior housing development throughout the nation.

As we look ahead, the promise of The James marks a hopeful horizon in senior living, one that merges luxury and care in the heart of California. With its groundbreaking financing and unique offerings, this community is set to redefine the senior housing landscape.