Greysteel Secures $93 Million Construction Loan for North Carolina Master-Planned Community Development

Greysteel has successfully 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 transaction represents a significant capital infusion for a project that will deliver over 2,000 single-family lots, with five national and regional homebuilders already under contract for lot takedowns. This financing achievement comes at a time when capital markets face higher interest rates and increased lender selectivity, making such substantial funding arrangements particularly noteworthy.

The complex deal was led by Greysteel Associate Landen Nix with support from Senior Director Daniel Hartnett, working collaboratively with a New York-based lender to secure the financing. The transaction involved refinancing a challenged legacy capital stack while simultaneously upsizing the loan to accommodate the conversion and sale of paper lots during the development process. The final financing package represents approximately 81% of the total project cost, demonstrating significant lender commitment to the development's viability and potential.

Greysteel navigated the competitive lending landscape by leveraging its extensive relationships with a curated group of 10 to 15 qualified land development lenders, quickly sourcing multiple competitive term sheets for consideration. The team's strategic guidance enabled the client to prioritize this time-sensitive transaction while structuring a flexible loan that could adapt to the project's evolving requirements throughout the development lifecycle. This approach proved crucial in a market environment where lenders have become increasingly selective about which projects receive funding.

Nix emphasized the importance of the financing arrangement, stating that securing flexible financing for horizontal infrastructure has become paramount in the current capital markets environment. The lender's ability to upsize the loan and structure terms around future lot sales proved instrumental in recapitalizing the project and unlocking its next development phase. This transaction marks Nix's first career closing, representing a significant milestone for the associate while demonstrating Greysteel's commitment to developing talent within its collaborative platform.

The successful execution of this $93 million financing package highlights continued lender confidence in well-structured development projects with strong sponsorship, even amid broader market uncertainties. For the Brunswick County region, this development signals substantial economic growth potential through the creation of new housing inventory and associated infrastructure improvements. The project's scale and pre-commitment from multiple homebuilders suggests strong market demand for residential development in the area, potentially influencing future investment patterns and development strategies across the southeastern United States.

This transaction underscores the critical role that specialized real estate advisory firms play in bridging the gap between developers and capital sources during periods of market volatility. The ability to structure complex financing solutions that address both immediate development needs and long-term project viability remains essential for large-scale community developments. As market conditions continue to evolve, such successful financing arrangements may serve as benchmarks for similar projects seeking capital in selective lending environments. For more information about Greysteel's services, visit https://www.greysteel.com.