Harrington Village and Harrington Square

Acquisition:

• Harrington Village and Harrington Square were acquired by our LDI A&D team.
• LDI, along with an additional well-respected builder and private equity group formed a partnership with a vision of an amenitized urban mixed-use development including, residential, retail and office space. Additionally, LDI partnered with the Town of Leland, a fast-growing community just 5 minutes from Downtown Wilmington, NC, to bring a new and fresh identity to what is known as “Downtown Leland.”
• This project was funded in two phases, with a mix of private equity and institutional debt in the form of a Commercial A&D loan.

Entitlement & Permitting:

• LDI oversaw the 5 month process of establishing companies, performing diligence and securing all local approvals. LDI saw the need for this development and the Town of Leland whole heartedly agreed, which resulted in favorable tax treatment, road improvements and a mutually beneficial relationship.

Horizontal construction:

• LDI Utilities performed all civil contracting and partnered with the Town of Leland for the off-site DOT work to prepare the site for vertical construction.

Vertical Construction:

• Renowned builder and developer, H&H Homes, hit the ground running with construction of 14 apartment buildings, resort-style amenities, and 28,000 square feet of retail space.

Sales and Marketing:

• Our team partnered with a premier real estate service firm, Wellington Advisors, which specializes in property management.
• As anticipated, Harrington Village met a much needed demand and the project exceeded expectations, leasing at an average pace of 15 per month.

Disposition of Asset:

• With strong occupancy and favorable interest rates, Harrington Village was traded at a sub 5% cap rate less than a year after construction completion.
• The partners utilized a unique debt vehicle that a 12 month hold period after project completion, rather than converting to permanent debt. This allowed the partners to enjoy capital gains treatment upon sale and avoided additional permanent loan costs.