NEW HARTFORD, N.Y. — HJ Sims, a Connecticut-based investment bank, has arranged an $8.5 million refinancing for Presbyterian Homes & Services. The loan restructures debt on Preswick Glen, a seniors housing community in the Utica suburb of New Hartford.
The initial construction loan for the property totaled $38.5 million. Soon after completion in 2007, the country entered a recession and Preswick Glen missed its occupancy and operations targets, requiring a restructuring agreement in 2012. That agreement was set to expire in May 2017, leading to the new refinancing.
A large, regional bank provided the capital. The original construction lender will accept the $8.5 million as a full pay-off of the outstanding $32 million in debt.
The new lender will hold the bonds for a five-year period at an initial floating interest rate of 2.95 percent.