SearStone, a proposed continuing-care retirement community in Cary, says it has received preliminary approval from the Public Finance Authority to issue up to $125 million in tax-exempt bonds.
SearStone approached the PFA after North Carolina's Medical Care Commission denied the project's request. The Medical Care Commission said there was too much risk associated with the project given the current economic environment.
The PFA is a national bond issuer that partners with private borrowers and local governments.
Morgan Lamphere, SearStone's marketing director, said the bond sale would occur as soon as the project has 70 percent of its 169 units reserved.
She said the project currently has 103 units reserved, or about 60 percent.
SearStone is being developed by Samaritan Housing Foundation.
The sale of the bonds would cover about 75 percent of the project's $145 million first phase. The remaining costs would be covered by entrance fees, investor capital and deferred developer fees.
The project is being built on 24 acres of a 75-acre parcel at High House Road and Davis Drive.
Business reporter David Bracken came to the N&O in 2004. He covers commercial and residential real estate. Contact David at 919-829-4548 or