Samaritan Closes on $147M Tax-Exempt Bond to Finance Seniors Community

by Adriana Pop, Associate Editor Nonprofit Samaritan Housing Foundation Inc. will be obtaining $147 million in tax-exempt resource bond financing to fund the construction of SearStone Senior Citizens Community in Cary. According to CityBizList Atlanta, law firms Krevolin & Horst and Peck, Shaffer and Williams LLP arranged to secure the bonds issued by the Public Finance Authority. Bond [...]

by Adriana Pop, Associate Editor

Nonprofit Samaritan Housing Foundation Inc. will be obtaining $147 million in tax-exempt resource bond financing to fund the construction of SearStone Senior Citizens Community in Cary.

According to CityBizList Atlanta, law firms Krevolin & Horst and Peck, Shaffer and Williams LLP arranged to secure the bonds issued by the Public Finance Authority. Bond underwriters are Herbert J. Sims & Co. and BB&T Capital Markets. The procurement includes $117 million of first mortgage bonds, and $30 million of subordinated debt. The transaction is considered to be one of the largest of its kind in the United States this year.

The senior housing project is 80 percent pre-sold and had been stalled after developer Bill Sears initiated it in 2005. SearStone will be developed on the remaining 75 acres of Bill Sears’ historic family farm and will comprise 169 independent living units, a clubhouse, a 16-acre lake, walking trails, a conservatory, and a boutique hotel and retail space. It will offer amenities for five types of living: 55-plus active adult, independent living, assisted living, a skilled nursing facility and continuing care retirement. Construction is scheduled to begin this summer and the first residents are expected to move in by 2013.

In other news, Associated Estates Realty Corp. announced that it has waived due diligence on The Park at Crossroads, a 344-unit apartment complex in Cary. Built in 2006, the property is 95 percent occupied and has an average monthly rent of about $850 per unit.

In May, the Cleveland-based REIT purchased another Cary property – The Apartments at the Arboretum – for $39.25 million. Located at the corner of Weston Parkway and Harrison Avenue, the 205-unit complex has an average monthly rent per unit of about $1,200. It opened in 2009 and is currently 92 percent occupied.

“We have had our eyes on Raleigh-Durham for some time, and these acquisitions fit well with our plan to expand into high growth submarkets,” said John Shannon, the company’s senior vice president of operations.

Photo credits: www.carymagazine.com