Trinity Street Capital Partners (TSCP) 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. This move is significant as it reflects TSCP's expansion of non-recourse construction lending programs across the U.S., even as many lenders are scaling back due to concerns over non-performing loans and over-leveraged projects.
The loan features a three-year term and an 85% loan-to-cost ratio, funding a project that includes three three-story residential buildings on 14 acres. The development will offer a mix of one, two, and three-bedroom garden-style units, alongside a suite of amenities designed to appeal to a broad tenant base. These amenities range from a club room lounge and fitness center to outdoor features like a swimming pool and nature path, positioning the property competitively in the Southern Pines market.
Southern Pines is celebrated for its scenic beauty, historical significance, and vibrant economy, with strong sectors in tourism, healthcare, and education. The town's appeal as a golf destination and its charming downtown area enhance its attractiveness for potential residents, making it a strategic location for this development.
This loan origination is particularly notable given the current economic climate, where lenders are increasingly cautious. The non-recourse nature of the loan and its high loan-to-cost ratio underscore TSCP's confidence in the project and the Southern Pines market. It also exemplifies the firm's role in providing innovative financing solutions in a challenging environment, catering to a wide range of income-producing properties across the U.S.
The project in Southern Pines not only signifies TSCP's capability to facilitate large-scale financing in secondary markets but also points to potential growth opportunities outside major urban centers. For developers and investors, this could signal emerging trends in development and financing, especially in markets with strong fundamentals like Southern Pines.
For more details on Trinity Street Capital Partners and their offerings, visit https://www.trinitystreetcp.com.
