Trinity Street Capital Partners Secures $64 Million Non-Recourse Loan for Multifamily Project in Southern Pines, NC

Trinity Street Capital Partners (TSCP), a full-service real estate investment bank, has announced the origination of a $64 million construction loan for a new multifamily development in Southern Pines, North Carolina. This significant financial arrangement underscores the company's commitment to supporting large-scale residential projects, even as other lenders scale back their construction programs due to market pressures.

The loan, structured as non-recourse financing, is earmarked for the development of a 270-unit, class A, market-rate multifamily property. With an 85% loan-to-cost ratio and a three-year term, this financing package represents a substantial investment in the Southern Pines real estate market. The project's location, approximately midway between Charlotte and Fayetteville, positions it strategically within North Carolina's growing residential sector.

The planned development will consist of three three-story residential buildings spread across 14 acres. The unit mix includes 80 one-bedroom apartments, 166 two-bedroom units, and 24 three-bedroom garden-style apartments. In addition to the living spaces, the project will feature an array of amenities designed to attract and retain residents in a competitive market.

Among the planned amenities are 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. Outdoor features will include 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. These amenities reflect a growing trend in multifamily developments to offer resort-style living experiences to residents.

Southern Pines, the location of this new development, is known for its blend of Southern charm and modern amenities. The town has a diverse economic base, with strengths in tourism, healthcare, education, and retirement services. Its reputation as a golf destination, coupled with a picturesque downtown area featuring boutique shops and restaurants, adds to the appeal for potential residents of the new multifamily complex.

TSCP's ability to secure this substantial non-recourse loan in the current economic climate is noteworthy. Many lenders have become more cautious with construction lending due to concerns over non-performing loans and over-leveraged projects. TSCP's success in this arena suggests a continued confidence in select markets and projects, as well as the firm's expertise in structuring complex financial deals.

This transaction is part of TSCP's broader strategy to expand its non-recourse construction lending programs throughout the United States. The company specializes in high-leverage senior and subordinate non-recourse commercial mortgages, construction loans, and real estate private equity. TSCP's focus extends beyond multifamily to include retail, office, industrial, manufactured housing communities, self-storage, and hospitality properties, with investments starting at $10 million.

The successful origination of this loan for the Southern Pines project demonstrates TSCP's ability to navigate the challenges of the current real estate financing landscape. It also highlights the ongoing demand for new, high-quality multifamily housing in growing markets like Southern Pines. As the project moves forward, it is expected to contribute significantly to the local housing stock and potentially stimulate further economic activity in the area.

For more information about Trinity Street Capital Partners and its services, interested parties can visit www.trinitystreetcp.com.