$132.9M capitalized for the development of Charlotte multi-housing community

CHARLOTTE, Jan. 18, 2024 – JLL Capital Markets announced today that it has arranged a $34.5 million LP equity placement and a $98.4 million construction loan for 2125 N Davidson, a 389-unit mid-rise multi-housing development with 13,751 square feet of ground-floor retail in the fast-growing Mill District of Charlotte, North Carolina.

JLL worked alongside Space Craft and their partner Swinerton to arrange a Joint Venture with a pair of institutional investors from Japan. JLL’s International Capital Coverage team provided direct support with the capitalization, showcasing a deep understanding of markets and a vast global network. In this age of interconnected economies, the ability to attract and secure foreign investment has become a competitive advantage in the CRE industry. Receipt of foreign investment for the development is a testament to Space Craft’s vision of building a high-quality, transit-oriented neighborhood as well as Charlotte’s growing prominence as a primary real estate investment market. Additionally, JLL sourced the construction financing for the project.

"Having worked alongside JLL on three new construction multi-family capitalizations in Charlotte, I can say with confidence that no team is more dogged, competent and rigorous.  And the best part, the people at JLL are an inspiration to work with. They face market headwinds and hurdles with such poise that it inspires me to be a better version of myself.  2125 N Davidson will be a keystone project for the Blue Line extension, and we're thrilled to start building," said Harrison Tucker, CEO of Space Craft.

With a completion date in Summer of 2026, 2125 N Davidson will feature studio, one-, two- and three-bedroom units with exposed cross-laminated timberwood ceilings, laminate hardwood floors, quartz countertops, stainless steel appliances, extensive window coverage and an average size of 762 square feet. Community amenities will include street-facing retail, rooftop patio with views of Uptown, courtyard with native planting, fitness room in each building, co-working space with coffee/breakfast nook and electric car share and e-bike share dedicated for resident use. The retail floor will target an eclectic blend of boutiques, coffee shops, neighborhood services and local businesses.

Situated at 2125 N. Davidson St., the property is located in the Optimist Park and NoDa neighborhoods of Charlotte, collectively referred to as the “Mill District”. The Mill District serves as Charlotte's arts and entertainment district and hosts a multitude of local artists, restaurants, boutiques and breweries. The property sits across the street from Lintmen’s Food Hall, Seoul Food, Free Range Brewing, Rhino Market & Deli and much more. The development is also just one block from Lynx Blue Line's 25th Street Station, making it easy to travel to Uptown and South End via the light rail. Additionally, residents will benefit from access to two sides to the Cross Charlotte Trail, a greenway trail that is part of Charlotte’s Capital Investment Plan.

The JLL Capital Markets Advisory Team representing Space Craft was led by Senior Managing Director Travis Anderson, Managing Director Cory Fowler, Director Warren Johnson and Associate Ryan Pride, alongside JLL’s International Capital Coverage team based in the U.S., as well as Naoki Hasegawa based in Tokyo, Japan.

“We’re very excited to be a part of the continued evolution of Space Craft’s portfolio in the Mill District. Thoughtfully designed mixed-use projects foster distinct, walkable neighborhoods and 2125 N. Davidson creates unique placemaking for renters, visitors and neighborhood residents alike,” said Johnson.

“The arrangement of this international joint venture comes as a result of culturally diverse partners aligning their conviction in a curated product in a growing market and demonstrates the power and depth of JLL Capital Markets’ global platform,” added Hasegawa.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment and sales advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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Space Craft builds walkable neighborhoods for city lovers. The team does this by developing projects that are walkable, architecturally distinct, mixed-use, and mixed-income – like the most desirable neighborhoods across America. The multidisciplinary team brings deep experience and works with like-minded capital partners looking to shape the fastest growing American cities.

Delivering excellence and peace of mind is the focus of Swinerton. Since inception in 1888, they remain a forward-thinking builder operating on accountability and integrity. Headquartered in San Francisco with 18 regional offices, the firm's ability to respond to each project challenge, regardless of size, location or complexity, is a hallmark of delivering success to their clients. Clients enjoy the convenience of a local team combined with the stability of $3.5 billion national construction firm (2022 revenue).