OVERLAND PARK, Kan. — HJ Sims has arranged $6.3 million in pre-development bond financing to expand Village Shalom, a continuing care retirement community (CCRC) in the Kansas City suburb of Overland Park.
Village Shalom plans to replace its current memory care units with a new building, as well as enhance the rehabilitation gym and add underground parking, common areas and amenities.
The cost of the expansion is expected to be between $65 million and $70 million. The property owners have started a fundraising campaign to support the project, and expect to break ground during first quarter 2018. The bond financing will cover pre-development costs, such as marketing and pre-sales.
The bonds were issued through the Kansas Development Finance Authority. One of the banks currently holding Village Shalom’s existing 2013 bonds purchased the new bonds directly. Village Shalom plans to repay the new bonds through entrance fees by 2020.