Developer Third & Urban has obtained $64.5 million in construction financing for the Residences at The Pass, an upcoming 335-unit multifamily community in Charlotte, N.C. CBRE Vice Chairman Nate Sittema and Partner Elliott Voreis procured the financing. The project’s primary capital partner is Blueprint Local, with CrossHarbor Capital Partners serving as the lender. Construction already kicked off this month.
Set to take shape next to the light rail station at Sugar Creek, in Charlotte’s NoDa Arts District, the project is part of the multi-phase mixed-use development dubbed The Pass. The multifamily community will feature a mix of studios, one- and two-bedroom apartments.
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Planned amenities for the Residences at The Pass include a club room, rooftop terrace, pool deck, work lounge, as well as a cafe designed by Pixel Design Collaborative. First residents are expected to move in in during the summer of 2025.
Part of a broader mixed-use Charlotte community
Situated at 530 E. Sugar Creek, 4100 and 4212 Raleigh St., The Pass mixed-use development will also encompass 260,000 square feet of office and retail space. The initial phase, known as Pass41, is currently in progress and consists of 80,000 square feet dedicated to retail, entertainment and office uses. The first wave of tenants, including Soul Gastrolounge, should open their doors this fall.
Niles Bolton is the architect behind the project, while Thomas & Hutton provides civil engineering services and NRP Group serves as general contractor. Foundry Commercial is in charge of office leasing within the commercial components and retail leasing is overseen by Thrift Commercial Real Estate.
Charlotte multifamily rents expected to rise
Transaction activity in the Charlotte multifamily market showed signs of slowing down in the first quarter of the year. Sales reached a relatively low amount of $255 million, in contrast to the previous two years, when investment exceeded $5 billion annually, according to Yardi Matrix.
Additionally, the pace of new developments decreased, as only 737 units came online. This slowdown in supply growth is expected to create upward pressure on rents. The average metro Charlotte rent is projected to increase by 3.6 percent in 2023, the same data provider shows.
