Paraclete I

Once in a lifetime, a developer has an opportunity to put together a marquis project. Paraclete is one of those projects. From the beginning, the focus was on Integrated Healthcare. The site was accross the street from Wake Medical Hospital in Cary, nearby retail, and some aging medical of-fices. The Vision was to combine a retirement community with medical offices that formed a healthcare campus.
Situated between Class B medical space and an expanding, thriving hospital, the property was originally developed as a large lot subdivision.
The project was complicated from the very beginning. Mangum had to work with 13 property owners to work with, all of whom had previously been approached with inflated offers that had never come to fruition. Mangum was transparent on the project budgets and the vision leading the owners to trust that Mangum could bring this project together.
After the property contracts were signed, Mangum had to simultaneously get the land rezoned from rural residential to Mixed use, reduce a high-way buffer in half, and remove several stream buffers from the property in order to make it useable, in addition to having to work around 30champion trees.
Mangum was able to secure an anchor tenant for the Continuing Care Retirement Community (CCRC), in addition to securing credit tenant leases from Rex Hospital and other practices, filling up 80% of a 95,000sf medical building. The combination of rezoning and credit tenant leases made ita very attractive deal for equity investors and lenders. The capital stack ultimately included 40 million in equity and 110 million in debt.
Mangum ultimately sold the project to a Kayne Anderson Subsidiary from their Fund IV, targeting CCRC’s and MOB’s, and a private equity group out of Raleigh, NC
The project now known as Healthpark of Cary, is a successful Class A medical development