Trinity Street Capital Partners (TSCP), a comprehensive real estate investment bank, has announced the origination of a $64 million construction loan aimed at developing a 270-unit, Class A, market-rate multifamily property in Southern Pines, North Carolina. Located approximately halfway between Charlotte and Fayetteville, NC, this project marks a significant investment in the region's housing market.
The construction loan, which features a 3-year term and achieves an 85% loan-to-cost ratio, is notable for being non-recourse. This type of financing allows borrowers to avoid personal liability beyond the collateral's value, making it a crucial option for developers in an era where many lenders are tightening their construction lending programs due to non-performing loans and over-leveraged projects.
The Southern Pines project will encompass 80 one-bedroom units, 166 two-bedroom units, and 24 three-bedroom garden-style units spread across three three-story residential buildings on a 14-acre site. The development will also include a variety of amenities to enhance resident living experiences. These amenities will be housed on the first floor and will feature administrative and leasing offices, a club room lounge with a full-service kitchen, a fitness center, a yoga room, a business center, and a game room. Additionally, the community will offer a swimming pool with a sundeck, poolside cabanas, grilling areas, an indoor/outdoor sitting area with a fireplace, a playground, a dog park, and a nature path.
Southern Pines is a town known for its scenic landscapes, rich history, and vibrant business community, which focuses on tourism, healthcare, education, and retirement. The town is a favored destination for golf enthusiasts, boasting numerous high-end golf courses, luxury accommodations, and charming bed and breakfasts. The historic downtown area features a variety of boutique shops, art galleries, and restaurants, adding to its appeal.
TSCP's decision to move forward with this loan is a testament to its commitment to expanding non-recourse construction lending programs across the United States. This expansion is particularly significant at a time when many financial institutions are scaling back their construction efforts due to the challenges posed by non-performing loans or over-leveraged projects.
Trinity Street Capital Partners specializes in non-recourse, high-leverage senior and subordinate commercial mortgages, construction loans, and real estate private equity. The firm's investments start at $10 million and cover a range of income-producing properties, including retail, office, industrial, multifamily, manufactured housing communities, self-storage, and hospitality properties across all fifty states.
