JLL Capital Markets announced that it has arranged a $32.3 million construction financing and equity placement for Johnston Farms, a 120-unit housing development in Rock Hill, South Carolina.
The financing consists of a $23.5 million HUD construction loan alongside $8.8 million in joint venture equity, totaling a $32.3 million project budget. JLL represented the sponsor, Tartan Residential Inc., in securing both the debt financing and the joint venture partnership with a family office.
With construction completion expected by the second quarter of 2027, Johnston Farms will deliver workforce housing designed to serve middle-income renters earning between 50% and 80% of Area Median Income. The development will feature 72 two- and 48 three-bedroom units across five residential buildings utilizing innovative energy-efficient construction methods. Seventy-five percent of the units will be income-restricted through a 99-year Land Use Restriction Agreement, with 10% set aside for combat disabled veterans on a priority basis.
Each unit will feature energy-efficient mini split HVAC systems, high-efficiency water heaters, LED lighting and low-flow plumbing fixtures. Residents will also enjoy a 2,100-square-foot community building with an exercise room, multipurpose room, computer center, library and resident office space, plus recreational amenities including a playground, dog park and walking trails.
Ideally situated on Anderson Road and Princeton Road, Johnston Farms enjoys a prime location in York County just south of Charlotte. The development addresses the critical gap in workforce housing that serves households earning too much to qualify for traditional affordable housing but not enough to afford luxury market-rate apartments. It is also in close proximity to York Technical College, where the Developer plans to provide incentives for residents to obtain a degree or certificate. The property is owned by WHDC SC Johnston Farms LLC, a 501(c)(3) nonprofit, which qualifies the development for a 100% property tax exemption in perpetuity.
Rock Hill itself benefits from a growing economy and proximity to Charlotte, making it an ideal location for a community serving essential workers including teachers, first responders, municipal employees and healthcare workers.
JLL Capital Market’s Debt Advisory team representing the borrower was led by Director Kavin Barron and Senior Analyst Ellie Savage.
“Johnston Farms represents an innovative approach to a housing development that combines energy efficiency with affordability,” Barron said. “The strong interest from both the lending community and the private family office demonstrates the market’s recognition of the social impact and financial viability of well-executed workforce housing projects.”
The development team includes general contractor BCCM, with Jason Young leading the construction efforts for the project, and UES Consulting Services, with Ed Taylor providing engineering and environmental consulting services.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
