$93.2M capitalized for development of Charlotte multi-housing community

CHARLOTTE, NC – JLL Capital Markets announced that it has arranged $28 million in equity and arranged a $65.2 million construction loan for The Joinery Phase II, a two-building, 361-unit, mid-rise multi-housing development with 17,384 square feet of ground-floor retail in Charlotte, North Carolina.

JLL worked on behalf of the sponsors, Space Craft and Swinerton, to arrange equity on CrowdStreet, the leading online real estate investing platform. Over 480 individual investors on CrowdStreet participated in the equity offering. JLL also worked on behalf of the sponsors to secure the construction loan through Benefit Street Partners.

“The Joinery Phase II swiftly hit the fundraising goal in less than two days, with investors offering more than the $28 million that was needed to fully fund the project,” said Jesse Maas, Managing Director of CrowdStreet. “The success of the equity offering signals the enthusiasm and growing momentum around Space Craft’s concept: mixed-use buildings designed for density and walkability that create more vibrant neighborhoods. The project taps into a high demand for housing that reflects the changing preferences and needs of Charlotte residents.”

“Charlotte overall has tremendous growth potential,” Maas said. “Phase I of this project already has demonstrated success, and demand appears strong for Phase II. The residential and retail development is transit-oriented, located in a highly desirable submarket. The strong partnership between Space Craft and Swinerton brings to bear the best of local development capability with national construction industry expertise. Coupled with a favorable land basis, many investors on CrowdStreet found the opportunity very attractive.”

“We are thrilled for the support we have received from investors and grateful for a rewarding partnership with JLL Capital Markets” said Harrison Tucker, CEO and Co-founder of Space Craft. “This funding will allow us to advance our vision to build vibrant, open, walkable communities that redefine the urban landscape of Charlotte, while setting the foundation to grow pedestrian-friendly development across regions.”

With a completion date of 2023, The Joinery Phase II will feature studio, one-, two- and three-bedroom units with exposed wood ceilings, laminate hardwood floors, quartz countertops, stainless steel appliances, extensive window coverage and an average size of 629 square feet. Community amenities include street-facing retail, rooftop patio with views of uptown, courtyard with native planting, fitness room in each building, coworking space with coffee/breakfast nook and electric car share and e-bike share dedicated for resident use. The retail floor will offer a unique mix of boutiques, coffee shops, neighborhood services and local businesses.

Located at 1816 N. Brevard St. and 420 E. 22nd St., the property is situated between the Optimist Park and NoDa submarkets, more broadly known as the Mill District. The Mill District neighborhood will offer residents of the community convenient walkability to numerous shops and dining options, including Optimist Hall and Lintmen’s Dining Hall. The community is also one block from Charlotte’s Lynx Blue Line Parkwood station, providing easy travel via the light rail to the job opportunities and entertainment in Uptown and South End.

The Charlotte market is 15th overall and 12th for multi-housing investment on CrowdStreet’s “Best Places to Invest in 2022” ranking for private equity real estate in the U.S.

The JLL Capital Markets Debt Advisory Team representing the borrower was led by Senior Managing Director Travis Anderson, Managing Director Cory Fowler, Director Warren Johnson and Analyst Ryan Pride.

“The borrower has designed a product that will truly differentiate itself within the Charlotte market and will be an excellent complement to Joinery Phase I,” Fowler said. “Space Craft has done a phenomenal job of putting together a business plan that is thoughtful, creative and caters to the growing demand of technology-based renters. Furthermore, the project’s location adjacent to the Parkwood station will provide tenants a transit-oriented home with access to some of the largest and fastest growing employment bases in the MSA.”       

  • JLL