North Carolina Luxury SFR Project Secures Financing

Townhomes at The Village at Compass Pointe. Image courtesy of Cushman & Wakefield

SR Real Estate Partners and Circle Squared Alternative Investments have secured $62 million in construction financing for The Village at Compass Pointe. The two firms are constructing the 25-acre, 268-unit luxury single-family rental community in Leland, N.C., a suburb of Wilmington, N.C. The loan was provided by Dwight Mortgage Trust.

A Cushman & Wakefield Equity, Debt & Structured Finance Team consisting of Vice Chairman Gideon Gil, Director Zachary Kraft, Associate Sebastian Sanchez and Analyst Dale Braverman procured the financing on behalf of the development partners.

Coastal rentals

Multifamily units at The Village at Compass Pointe. Image courtesy of Cushman & Wakefield

After construction wraps in January 2025, The Village at Compass Pointe will include 140 single-family, two- and three-bedroom townhouses, as well as two-four story buildings that house 128 studio, one- and two-bedroom multifamily units. All townhomes will include first floor master bedrooms and private garages with electric vehicle chargers, while all living arrangements will include full kitchens, bathrooms and in-unit laundry machines. Across the community, renters will have access to two cabana-style swimming pools with their own accompanying clubhouses, as well as pickleball courts and a dog park.

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Situated adjacent to U.S. Highway 74, The Village at Compass Pointe sits adjacent to Compass Pointe, a gated, resort-style community that hosts a golf course and private lake. Additionally, the Village lies 13 miles away from Downtown Wilmington, and the state’s coastline lies an additional five miles eastward.

Triumphs in the Tar Heel State

Migration to the Sun Belt, home to the 10 fastest-growing counties in the nation, has spurred large-scale institutional investment and the development of single-family build-to-rent communities located on the outskirts of big cities. According to a May 2023 report from RentCafe, nine out of the nation’s top 10 metros for completed units in 2022 are within the region, with eight cities experiencing 10-year highs in completed rental units. Charlotte, North Carolina’s largest city, ranked fifth on that list, with 475 units coming online throughout the year. Currently, the city has 1,174 units under construction, according to Yardi Matrix data.

Overall, the Tar Heel state has one of the nation’s largest proportional pipelines, with more than 1,000 homes under construction per million residents, according to the National Rental Home Council.