SearStone, a proposed retirement community in Cary, announced Wednesday that the state Department of Insurance has issued it a preliminary certificate allowing the project to close on its recent bond sale and begin construction.

SearStone expects to hold a groundbreaking on June 26, said spokeswoman Morgan Lamphere, with construction expected to take about 15 months.

Last month, SearStone signed an agreement to sell $117.5 million in bonds to finance the construction of the 169-unit project.

SearStone is a continuing-care retirement community for people 62 and older. CCRCs offer residents a range of medical services – skilled nursing, assisted living, independent living – all in one place.

The state regulates CCRCs to ensure that residents receive proper care and that the projects are financially sound.

SearStone received approval from Wake County officials last year to issue the bonds through the Public Finance Authority, a group that partners with private borrowers and local governments.

The bonds will cover the cost of the project’s first phase of construction.
More than 138 of SearStone’s units under contract.

The community will be operated by a nonprofit, Samaritan Housing Foundation, which will be responsible for setting the monthly fees for the community.

The project is being built on 24 acres at High House Road and Davis Drive.
 

SearStone, a proposed retirement community in Cary, announced Friday that it has signed an agreement to sell $117.5 million in bonds to finance the construction of the 169-unit project.

The bond purchase agreement is with Herbert J. Sims & Co. SearStone expects to close on the sale after the state Department of Insurance issues the development a preliminary certificate.

SearStone is a continuing-care retirement community, or CCRC. Such communities offer a range of medical services that let residents stay in one place as their needs change.

The state regulates CCRCs to ensure that residents receive proper care and that the projects are financially sound.  The department will issue its preliminary certificate after reviewing the project’s financial statements.

SearStone received approval from Wake County officials last year to issue the bonds through the Public Finance Authority, a group that partners with private borrowers and local governments.

The bonds will cover the cost of the project's first phase of construction.

SearStone said Friday that more than 138 of its units under contract. The community will be operated by a nonprofit, Samaritan Housing Foundation, which will be responsible for setting the monthly fees for the community.

The project is being built on 24 acres at High House Road and Davis Drive.

SearStone, a proposed continuing-care retirement community in Cary, said today that it has pre-sold 70 percent of its 169 units.

The milestone means the project can now move forward with selling up to $125 million in tax-exempt bonds. Those bonds will cover about 75 percent of the project's $145 million first phase.

The remaining costs are to be covered by entrance fees, investor capital and deferred developer fees.

SearStone plans to issue bonds through the Public Finance Authority, a national bond issuer that partners with private borrowers and local governments.

SearStone approached the authority after the N.C. Medical Care Commission denied a request to sell $112 million in tax-exempt bonds for the project.

The commission said given the current economic environment, there was too much risk associated with the project.

Continuing-care retirement communities, or CCRCs, offer a range of medical services that let residents stay in one place as their needs change.

The state regulates CCRCs to ensure that residents receive proper care and the projects are financially sound.
 

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.

State regulators voted today to not give SearStone, a proposed continuing care retirement community in Cary, approval to sell $112 million in tax-exempt bonds.

The Medical Care Commission said the decision was based on the risks associated with starting up a CCRC, and the amplification of those risks given the current economic climate.

A three-person subcommittee of the commission had reached a similar conclusion last month. SearStone appealed that decision, and was granted an opportunity to present its case to the full 17-member commission.

All but two of the 16 commission members who attended today's meeting voted to deny SearStone's request. The other two members abstained.

The Medical Care Commission meets quarterly, and SearStone will be able to seek approval at future meetings.

SearStone, a proposed continued care retirement community in Cary, will go before the state Medical Care Commission on Nov. 19 seeking approval to sell $112 million in tax-exempt bonds.

The development was placed on the agenda for the commission's next quarterly meeting after originally having its request denied.

In a letter dated Oct. 21, a four-person subcommittee of the full commission unanimously decided not to put SearStone on the agenda.

The letter said that "due to the risks associated with a start-up continued care retirement care center and the amplification of those risks in the current economic environment, we have concluded that it would not be prudent to move forward with putting this project on the agenda for consideration for tax-exempt financing by the Medical Care Commission."

But after SearStone appealed the decision, the Medical Care Commission's chairperson, Lucy Hancock Bode, reversed the decision. Bode is also on the subcommittee.

"As chairman I sort of have the prerogative of setting the agenda," she said of the reversal. "They wanted the opportunity to address the full committee. So I decided to give them the opportunity."

The 17 members of the Medical Care Commission are appointed by the governor.

Bode said the commission is likely to approve or deny SearStone's request on the same day that the project presents its case.