The Property
Legacy at Haw River is a ground-up 180-unit multifamily development located in Burlington, North Carolina. While the buildings hadn’t gone vertical yet, the vision was clear: bring new, thoughtfully designed housing to a submarket with strong fundamentals and growing demand.
The sponsor—a repeat client—had already refinanced two deals with us. When it came time to capitalize their next development, they came to us with a tight ask:
“We want to do this with minimal equity. Stretch the leverage, protect our upside.”
We were happy to take that challenge. But we knew going in—this one wasn’t going to be simple.
The Challenge
We first took the deal to market in late 2023. The bones were good, and the sponsor was strong. But lenders were tightening. Rates were rising. We saw competitive quotes, but not enough certainty. The client made a tough call:
“Let’s hold. We’ll come back when rates cool.”
In January 2025, they were ready. Rates had stabilized (somewhat), and we quickly re-launched the deal.
But things had changed. The original plan was a forward sale—develop, then exit. Now, it was a build-and-hold. The client wanted to lease, stabilize, and ride the asset for long-term value.
That meant going back to the drawing board with lenders. New underwriting. New approval. And a new layer of diligence—starting with the fact that there was no Phase I Environmental on file. That’s not a showstopper—but it is a race against the clock.
Meanwhile, market volatility hadn’t disappeared. Lenders were cautious. Equity expectations remained high. The deal needed precision—not just a willing lender, but one that could flex with us through changing plans.
The Solution
This wasn’t our first time solving for minimal equity. But this time, the solution required a multi-stage execution:
- Market Strategy—Run Twice:
We’d already taken the deal out in 2023. That gave us a head start—and pricing context. When we re-engaged in 2025, we targeted only lenders with proven appetite and the ability to stretch on LTC without locking down flexibility. - Diligence on a Fast Clock:
No Phase I? No problem—if you move fast. We sourced, coordinated, and delivered the full environmental package to keep credit committees on track. - Structure Realignment:
The switch from forward sale to long-term hold could’ve meant starting over. Instead, we kept the same lender engaged, renegotiated terms, and preserved favorable economics. That saved both time and equity. - Orchestrated Closing:
This deal had a lot of moving parts—appraisal, legal, ESA, underwriting. We moved everything in parallel, not in sequence. That’s how you protect timeline—and keep momentum.
Along the way, we leveraged the credibility we’d built through our previous transactions with this sponsor. That trust, combined with a disciplined process, helped push the deal through when others may have stalled.
The Results
Despite a market defined by caution and volatility, we delivered exactly what the client asked for: maximum leverage, minimal equity, and flexibility for the future.
- Loan Type: Construction
- Loan Amount: $19,000,000
- Interest Rate: 7.00%
- Term: 24 months (construction)
- Amortization: 25-year post-conversion
- Structure: Build-and-hold capital stack with long-term optionality
The final loan terms reflected the strength of the deal—but also the precision of the execution. We managed to maximize proceeds without over-engineering the structure, and we did it all on a clock that never slipped.
Summary
The Legacy at Haw River deal wasn’t just about placing capital. It was about aligning structure with strategy—not once, but twice—and doing it under pressure.
We helped a trusted sponsor navigate:
- A changing market
- A pivot in business strategy
- And a time-sensitive diligence process
The result? A capital stack that fits the long game: low equity, and the flexibility to lease, stabilize, and create long-term value.
In a market where caution rules, precision wins.
