Pineville, NC

The Opportunity

A builder in North Carolina had been working on a large development within a growing suburb of Charlotte. Both the north and south ends of the development had been completed, and the builder was ready to finish the 100+ property project by connecting the two with an additional 51- lot section.

The borrower wanted to move away from his conventional lender due to the red-tape around underwriting, low leverage percentages, and inefficient construction draw process – all factors hindering the need for speed and execution around this project. Finding an alternative partner to improve process efficiency while offering flexibility on rates were priorities for finishing this development. With a build-to-rent strategy, he required a partner that would allow him to refinance the project once the properties were ready to cash flow.

The Solution

Lima One financed the 51-build portfolio in a $15 million loan. The interest only loan comes with a standard 24- month term, giving the builder more flexibility against construction material supply-chain issues that have plagued construction in recent years.

The loans also come with a discounted takeout option through Lima One’s Build2Rent® program if the builder decides to hold the properties and refinance them into Lima One rental loans. This flexibility allows the builder to survey the market upon completion and devise the best investment strategy.