N.C. commission approves bonds for independent senior living project

North Carolina’s Local Government Commission gave the green light for a bond-funded independent living project to move forward at The Forest at Duke in Durham.

At its Nov. 1 meeting, the LGC gave the go-ahead for the North Carolina Medical Care Commission to issue $105.1 million of tax-exempt revenue bonds to fund a five-story building that will house 71 independent living apartments.

The apartment complex will be located on the 47-acre campus at the Forest at Duke. Its 250,000-square-foot building will be an addition to the existing 234 independent living units, 34 assisted living units and 58 skilled nursing beds on the Pickett Road campus, which first opened its doors 30 years ago.

The bond request was made by the Medical Care Commission, which previously approved the project. All necessary permits and approvals for construction have already been secured and 93% of the proposed units have been reserved.

Under the Health Care Facilities Finance Act, the Med Care Commission can issue tax-exempts to finance construction and equipment projects for nonprofit and public hospitals, nursing homes and continuing care facilities for the elderly, according to the commission’s website.

The Forest at Duke Inc. was formed in 1998 as a nonprofit corporation to develop, own and manage the retirement community.

In April, Fitch Ratings affirmed the BBB rating on the $44 million of Series 2021 first mortgage revenue bonds issued by the Med Care Commission on behalf of the Forest at Duke.

Additionally, Fitch affirmed the Forest at Duke’s issuer default rating at BBB. The outlook is stable.

Fitch said the affirmation reflected its view the Forest at Duke’s solid operating performance and manageable leverage, will remain in line with its expectations. 

Most bond sales in the state must be approved by the LGC, which is chaired by State Treasurer Dale Folwell, and examines whether the amount municipalities want to borrow is reasonable for the proposed projects and whether they can repay it

Also at the meeting, the LGC approved a request by the Raleigh Housing Authority in Wake County to issue $27 million in conduit revenue bonds. Proceeds will go to Milner Senior Housing Partners for a 156-unit multifamily project that will have 10 studio, 122 one-bedroom and 24 two-bedroom units housed in two four-story residential buildings.

The LGC also approved a request by the Greenville Utilities Commission to sell up to $30 million of revenue bonds for water, sewer and electric projects. Plans include building transmission lines, replacing outdated generators, dredging a lagoon to restore capacity and building a substation. 

The N.C. Capital Facilities Finance Agency received approval from the LGC to sell $9.7 million of bonds on behalf of Aces for Autism, for a nonprofit treatment and educational center in Pitt County.

Proceeds will be used to finance Phase 1 of the nonprofit’s 23.83-acre campus in Winterville. It includes a 32,000-square-foot family services and clinic building for one-on-one therapy, diagnostics, counseling, parent training as well as administrative offices and sensory and quiet rooms.

Aces for Autism works with people from 18 months to 21 years of age who are affected by autism.