Tower Capital advised on the placement of a $19,149,000 loan to refinance 99 townhomes developed in the first phase of Poplin Glen, an overall 268-unit BTR development in the Charlotte, North Carolina market.
Due to a strong homeownership market, the sponsor will begin selling the individually platted homes in Phase 1 to homeowners individually as units become vacant. Redfin has been brought on to handle the sales. The subsequent phases, including Phase 2 with 70 units and Phase 3 with 99 units, will remain as rentals.
Tower Capital’s Kyle McDonough, Managing Partner and Co-Founder, said, “The structure of the initial loan required Tower to secure a lender that was comfortable with the retail business plan which would allow lot releases for a rented community. Demand is increasing from buyers seeking to own a property and it made sense to adjust the plan to meet that homeownership market need.”
The initial phase of the Poplin Glen delivered in 2021 and 2022, and consists of two-story, three-bedroom, 2.5 bath townhome units with one car direct access attached garages and back yards. The property appeals to families in the surrounding area that are attracted to the high scores area schools achieve.
“Buyers will be drawn to this development in Indian Trail because of its affordability, proximity to Charlotte, natural beauty, and vibrant community atmosphere,” said Redfin agent Jill Moyer. “The area is seeing remarkable growth in both amenities and infrastructure, which creates great opportunities to build equity as a homeowner. These features, paired with the incentives we offer when using our preferred lender, are exactly what homebuyers are looking for in today’s higher-interest rate market.”
Tower Capital leveraged its extensive expertise in the single-family rental sector to source options for the sponsor that met their goals and objectives. Tower Capital’s client, an unnamed Arizona-based real estate investment company, has a 30-year track record acquiring and stabilizing multifamily assets throughout the country, including a successful track record of turning over 2,000 rental units into homeownership.
