Sparrows Bend Apartments

Project Description

Acquisition:

• Sparrows Bend was locally sourced raw land discovered by our LDI A&D team.
• LDI partnered with a well-respected builder and private equity firm to bring to market a luxury apartment community in an overlooked location, just outside of Wilmington, NC.
• This project was funded with a mix of private equity and institutional debt in the form of a Commercial A&D loan.

Entitlement & Permitting:

• LDI took on the 6 month challenge to gain approvals to bring this project to life through establishing companies, performing diligence and securing all local approvals. LDI provided the horizontal team with optimized site plans, layouts, and permits in hand to swing into action.

Horizontal construction:

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

Vertical Construction:

• H&H Multifamily, a partner with LDI, managed all entrance, amenity, building and garage construction.

Sales and Marketing:

• Wellington Advisors took charge of the marketing and lease-up of this much anticipated community and saw fantastic success. Performance metrics were off the charts with absorption in excess of 15 units per month and a 100% occupancy achieved well ahead of schedule.

Disposition of Asset:

• Sparrows Bend was traded at a 5.15% cap rate prior to being brought to market, confirming our vision and rewarding our team’s foresight to pioneer a multi-family development in a previously overlooked area.
• The partners utilized a unique debt vehicle that allowed 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.

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