Ares Lands $69M in Financing for Charlotte Project
Development is taking place at the site of a former elementary school.
An Ares real estate fund has obtained $69.4 million in construction financing for the creation of 1817 Central, a 341-unit Class A mid-rise multifamily development located in Charlotte, N.C. JLL Capital Markets represented the borrower in the transaction, and United Bank provided the funds.
Ares acquired the parcel in September of this year. According to the Charlotte Business Journal, Ares paid $18.5 million for the 2.5-acre site, which was the former home of Midwood Elementary School. The school had closed in 1983. In recent years, the building was home to the Midwood International and Cultural Center. Reporting from The Charlotte Observer shows that the site is already being demolished.
To be situated in the Plaza Midwood neighborhood of Charlotte, 1817 Central will be a seven-story, 341-unit development. Construction is expected to commence before the end of this year, and the development is expected to be completed in 2028.
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“The Plaza Midwood submarket presents a compelling investment thesis with its unique combination of urban convenience and neighborhood character,” said Kate Rathman, JLL Capital Markets Debt Advisory Team director. “This financing enables Ares to capitalize on the area’s strong fundamentals and deliver much-needed quality housing to meet the growing demand from Charlotte’s expanding workforce.”
Community characteristics
Featuring a wrap design, 1817 Central will offer studio apartments as well as one-, two- and three-bedroom residences averaging 791 square feet. A fitness center, rooftop lounge with outdoor space, multiple courtyards, a library, pet spa and parking will be among the amenities.
Plaza Midwood witnessed a 43.4 percent population growth between 2010 and 2025. The makeup of the enclave is young, with a median age of 32, and well paid with a household income of almost $160,000 within a one-mile radius. Such rapid population gains continue to drive multifamily construction in suburban neighborhoods like Plaza Midwood.
Last week, a Hillridge Capital joint venture acquired Loft One35, a 298-unit apartment community located near Charlotte’s Central City district.
