LFB was engaged by a repeat client to arrange acquisition and development financing for a 255-lot master planned community in Charlotte, NC. At time of financing, the project was pre-sold to a public homebuilder.

The project covers 100 acres in total, with the initial 40 of 255 lots already developed to a finished condition. The takedown structure has the initial 40 finished lots being closed in bulk, followed by rolling takedowns as future finished lots are completed.

From a leverage standpoint, LFB was able to secure 85% LTC, and 65% LTV, with the builder deposit being applied to the capital stack, further reducing our client’s equity contribution to less than 10% of total project costs. The financing was non-recourse.

LFB is actively building a programmatic relationship with capital for this client so they can continue to acquire and develop their extensive pipeline of roughly 2,000 lots in the southeast.