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., at a time when many lenders are scaling back due to 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 premium amenities such as a fitness center, swimming pool, and business center, designed to attract tenants in a competitive market.
Southern Pines, known for its picturesque landscapes and thriving business community, presents a strategic location for this development. The town's diverse economy, bolstered by tourism, healthcare, and education sectors, along with its appeal as a golf destination, makes it an attractive market for residential development.
This loan origination is particularly noteworthy given the current economic climate, showcasing TSCP's confidence in the Southern Pines market and its commitment to innovative financing solutions. The non-recourse nature of the loan and its high loan-to-cost ratio stand out in an environment where traditional lenders are becoming more cautious.
TSCP's focus on non-recourse, high-leverage financing for a variety of commercial real estate sectors positions the firm as a significant player in the industry. The successful origination of this loan in a secondary market like Southern Pines may signal growth opportunities in similar markets, offering a potential blueprint for future developments and financing arrangements in an increasingly selective lending landscape.
