S3 Capital Partners Provides $80M Construction Loan For A Luxury Rental Property in Charlotte, N.C.

Loan will facilitate development of 334-unit building with 437 parking spaces

S3 Capital Partners,a New York City-based private lending platform serving clients nationally, has provided an $80 million construction loan to Brian Phillips’ East Boulevard Development Company LLC for the ground-up development of 1701 East Blvd. in Charlotte, N.C. The transaction closed on July 27, 2021.

Nestled between Charlotte’s well-established neighborhoods of Dilworth and Myers Park, the development will feature 334-unit luxury rentals supported by a 437-parking-space underground garage. With unbeatable proximity to Charlotte’s premiere 98-acre urban park, dozens of restaurants, shopping (including a Harris Teeter) and close proximity to Atrium Health Carolinas Medical Center, a major area employer, the development is truly a legacy opportunity. The project developer, Jim Gross Development Company, Inc., assembled the 13 parcels of land for the 392,000-rentable-square-foot development. Completion is expected in Summer 2023.

Joseph Hagner, director of business development and real estate capital with GCG Advisory Partners, served as broker on behalf of East Boulevard Development Company.

“Charlotte is one the most dynamic cities in the nation, with extraordinary population growth and development activity,” said Joshua Crane, co-founder and principal of S3 Capital. “We anticipate tremendous leasing momentum for this project, which offers a superior-quality tenant experience with abundant amenities and an ideal location.”

“This transaction highlights the growing national reach of S3’s lending services,” said Robert Schwartz, co-founder and principal of S3 Capital. “S3’s development experience and committed pool of capital has positioned it to quickly meet the needs of borrowers throughout the nation.”

“Joshua, Robert, and the entire S3 team have been wonderful to work with and we look forward to their continued partnership as we bring this unique and exciting project to market,” Phillips said.

S3 Capital Partners isone of the most active national private debt lenders in the bridge and construction space, providing loans between $1 million to $250 million and more. The company has expanded its services nationally and recently originated a $67.5-million construction loan for a mixed-use development with 274 rental units in Oakland Park in Fort Lauderdale, Fla.

About S3 Capital Partners

S3 Capital Partners was established in 2013 by the Principals of Spruce Capital. S3 Capital offers a flexible platform that originates both smaller loans of between $1 million to $20 million, and larger loans of $20 million to over $250 million. Since its inception, S3 Capital has originated more than 380 first mortgages, with a current portfolio of 130 active loans totaling over $2 billion. S3 is currently the most active private debt lender in New York City. The firm has deep development experience and is especially well positioned to streamline the construction process. It has a committed pool of capital, funding construction draws and responding quickly to meet borrower needs.

About Spruce Capital Partners

Spruce Capital Partners is a privately-held, New York-based real estate investment firm that owns, lends and invests in real estate and real estate-related opportunities. Founded in 2007 by Joshua Crane and Robert Schwartz, Spruce’s primary focus is delivering superior risk-adjusted returns. The company achieves this through a creative, multi-faceted approach to identifying, structuring and executing deals.  Since its inception, Spruce has invested in an array of real estate transactions with an aggregate value in excess of $5 billion.