Greysteel Secures $93 Million Construction Loan for North Carolina Master-Planned Community
Greysteel arranged $93 million in construction financing for a major North Carolina residential development, demonstrating continued lender confidence in well-structured projects despite current market challenges.
Greysteel has arranged approximately $93 million in senior construction financing for horizontal infrastructure development of a large-scale master-planned residential community in Brunswick County, North Carolina. The project will deliver over 2,000 single-family lots, with five national and regional homebuilders already under contract for lot takedowns. This substantial financing represents approximately 81% of the total project cost, highlighting the significant capital commitment required for large-scale residential development.
The transaction was led by Greysteel Associate Landen Nix with support from Senior Director Daniel Hartnett, working with a New York-based lender to secure the complex financing package. The deal involved refinancing a challenged legacy capital stack while upsizing the loan to accommodate the conversion and sale of paper lots during the development process. This strategic approach allowed the developer to recapitalize the project and unlock its next phase of development despite current market headwinds.
Greysteel navigated a competitive lending environment by leveraging relationships with 10 to 15 qualified land development lenders, quickly sourcing multiple competitive term sheets. The firm's ability to secure flexible financing terms that accommodate future lot sales proved crucial in a capital markets environment defined by higher interest rates and increased lender selectivity. The successful execution underscores continued confidence among lenders in well-structured development projects with strong sponsorship, even as financing conditions have tightened across the commercial real estate sector.
"In a capital markets environment defined by higher rates and lender selectivity, securing flexible financing for horizontal infrastructure is paramount," said Nix, who marks the first closing of his career with this landmark transaction. "This transaction required a forward-thinking partner, and the lender delivered with certainty of execution. Their ability to upsize the loan and structure terms around future lot sales was instrumental in recapitalizing the project and unlocking its next phase." The financing arrangement demonstrates that strategic partnerships and flexible loan structures remain available for qualified development projects, providing important signals for the broader residential development market. For more information about Greysteel's services, visit https://www.greysteel.com.