The developers of a $515 million project near Wake Forest University have received authorization to secure up to $80 million in revenue bonds.
The Public Finance Authority confirmed its approval Thursday for developer PRG — The Grounds LLC.
The bonds would go toward financing the construction of a 130,500-square-foot university administrative office building on The Grounds campus and a parking area. The developers would lease the building to the university.
The authority reviews the issuance of tax-exempt and taxable conduit bonds for public and private entities nationwide.
“This project represents a significant public benefit by enabling Wake Forest University to better serve its students and expand academic operations on its main campus,” John West, the authority’s chairman, said in a news release.
“By consolidating administrative functions in this new facility, the university can dedicate more of its campus resources to education and student services.”
Winston council played a part
The pursuit of the lease revenue bonds required the assistance of the Winston-Salem City Council, which was provided on Sept. 15.
“The financing of the costs of the project in the city is solely for the purpose of satisfying the authority requirements and the federal tax requirements,” according to a legal notice for the bonds.
Council approval “does not constitute an endorsement of the bonds or the projects, does not obligate the city for the payment of the principal or premium or interest of the bonds, does not obligate the city for the performance of any pledge, mortgage, obligation or agreement of any kind which may be undertaken by the issuer, and does not constitute bonds or any of the agreements or obligations of issuer as an indebtedness of the city.” By gaining the council’s assistance, developers can access a lower interest rate, according to Tony Plath, a retired finance professor at UNC Charlotte.
The Grounds also received a $35 million grant in the 2023-24 state budget to build streets, greenways and other improvements. The grant is designated for economic development purposes with sports, tourism and entertainment as the focal points.
Project was on hold for 13 years
Plans for The Grounds resurfaced in August 2023 after being on hold for 13 years. The developers are Winston-Salem’s Front Street Capital and Atlanta’s Carter.
The development is located near the hub of Wake Forest sports, including Lawrence Joel Coliseum, Winston-Salem Fairgrounds, Allegacy Federal Credit Union Stadium, David F. Couch Ballpark, and the Wake Forest Tennis Center, host of the Winston-Salem Open.
Wake Forest owns the project property site. Under the terms of the agreement, the developers will lease the site from the university but will own the building. The university will then lease the building as an occupant.
The Grounds’ amenities will provide new options to enhance the experience for the more than 750,000 patrons of more than 260 event days at the athletic and other venues, according to the developers.
Beyond Wake Forest athletic events, there’s also the Carolina Classic Fair, the Twin City Thunderbirds, and numerous concerts, conventions, and shows nearby.
Construction began in July on the first development piece, a $215 million student apartment complex branded as Creekside at The Grounds.
The 229 furnished apartments are projected to be ready in time for the fall 2027 semester at Wake Forest.
Creekside will feature high-end interiors, a clubhouse with study and fitness space, and an outdoor pool and entertainment area. Each bedroom has a private bathroom.
Creekside connects to a pedestrian trail system being developed at the site. The project will involve the planting of more than 200 trees and 30,000 shrubs, grasses and perennials.
The other Phase 1 projects, including an office building and retail village, are in design and scheduled to break ground in early 2026.
Phase 2
Phase 2 would represent another $300 million in capital investment.
The 100-acre campus will also feature: 42,000 square feet of local and regional shops, restaurants, and outdoor gathering spaces; a 127,000-square-foot Class A building intended to be leased by the university; and 25 loft-style residential apartments above retail buildings.
A segment of Deacon Boulevard is being made more pedestrian-friendly with expanded sidewalks, crosswalks, parking and two traffic lanes instead of four.