News Summary
Charlotte, North Carolina experiences a significant boost in its real estate sector as Capital City Real Estate and Pennington Real Estate Partners secure $48 million for ‘The Mill’, a new multifamily project featuring 281 Class A apartments. Located in an opportunity zone near the Sugar Creek Blue Line LYNX Station, this development aims to meet the city’s rising housing demand amidst evolving market conditions and planned amenities, such as co-working spaces and a swimming pool.
Charlotte, North Carolina has recently seen a significant boost in its real estate development sector with Capital City Real Estate and Pennington Real Estate Partners securing $48 million in construction financing for a new multifamily project known as The Mill. This major development will feature 281 units of Class A apartments, further contributing to the city’s ongoing urban growth.
The financing for The Mill was structured through a syndicated note arranged by Concord Summit Capital, boasting a 62 percent loan-to-cost structure. Situated on over 3 acres within an opportunity zone, the project is conveniently located adjacent to the Sugar Creek Blue Line LYNX Station, emphasizing its transit-oriented nature. Positioned in the North Davidson neighborhood, The Mill is approximately 4 miles northeast of downtown Charlotte, offering easy access to U.S. Route 29 and nearby retail and quick-service restaurants.
The Mill will feature a variety of floorplans, including studio, one-bedroom, and two-bedroom units. Planned amenities for future residents include co-working spaces, a swimming pool, a dog park, and a sky deck. This development is part of a broader trend in Charlotte as the city expands to meet the growing demand for housing amidst changing market dynamics.
Justin Neelis, Managing Director at Concord Summit Capital, played a crucial role in arranging the financing for this venture. Additionally, Pennington Real Estate Partners has launched a new branch aimed at leveraging structured equity in conjunction with senior debt to conform to existing market conditions.
The opportunity zone program, which provides tax incentives for certain investments, is set to expire at the end of 2026. A new bill is currently proposed in Congress that may extend the program until 2033, with a shifted focus on economically distressed and rural areas. This presents a unique advantage for the Mill project, fitting neatly within the opportunity zone framework.
As of May, the Metro Charlotte area is experiencing a robust pipeline in real estate development, with approximately 36,200 units currently under construction. However, the rate of housing construction has faced challenges; the first five months of 2025 saw a 43.4 percent decrease year-over-year in apartment starts, amounting to 2,600 units. Additionally, housing completions within the same period totaled around 6,500, indicating a 9.3 percent decline compared with the previous year.
Amidst the housing developments, the office market in Charlotte presents a complex picture. The city’s office vacancy rate stands at 22.4 percent, outpacing the national average of 19.7 percent. Despite this, the market is showing signs of recovery with positive absorption rates; businesses are beginning to occupy office space rather than vacate it—an improvement noted since mid-2024.
A notable development, the office building 110 East, which opened last April, currently boasts about 16 percent occupancy, with new tenants anticipated. Notably, SouthState Bank has made a significant leasing deal, occupying 40,000 square feet, marking the largest lease since the building’s inception.
It is important to note that around 82 percent of the vacant office spaces in Charlotte were constructed prior to 2015. While many older buildings are undergoing renovations, others are being repurposed into residential spaces or hotels. The construction of new office spaces has drastically slowed, with only one project currently underway, marking the lowest rate since 2013.
Despite the challenges in the office sector, job growth in sectors requiring office space in Charlotte reached nearly 4 percent in March, contributing to the stabilization of office vacancy rates. Analysts remain optimistic about the future of the office market, suggesting that continued job growth could further spur demand for office space.
Deeper Dive: News & Info About This Topic
HERE Resources
Charlotte Auctions See Rise in Participation and Variety
Zoning Options Proposed for New Park Road Elementary School
North Carolina’s Economic Growth Forecast
Charlotte Sees Decline in Rent Prices Amid New Apartment Boom
Concerns Rise Over Trump’s Trade Policies
Charlotte’s Office Market Shows Signs of Recovery
Charlotte Embraces Co-Living as Affordable Housing Solution
Charlotte Transit Plan Faces Skepticism from Black Voters
Mid-Century Modern Homes in Charlotte Attract Buyers
Charlotte Man Sentenced for Multi-Million Banking Fraud
Additional Resources
- Multi-Housing News
- Wikipedia: Charlotte, North Carolina
- Charlotte Observer
- Google Search: Charlotte real estate
- Axios
- Encyclopedia Britannica: Charlotte
- QC News
- Google News: Charlotte housing market
Author: HERE Charlotte
The CHARLOTTE STAFF WRITER represents the experienced team at HERECharlotte.com, your go-to source for actionable local news and information in Charlotte, Mecklenburg County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Lovin' Life Music Festival, Charlotte Pride festival, and major sporting tournaments at Bank of America Stadium. Our coverage extends to key organizations like the Charlotte Regional Business Alliance and Foundation for the Carolinas, plus leading businesses in finance and entertainment that power the local economy such as Bank of America and NASCAR. As part of the broader HERE network, including HEREAsheville.com, HEREGreensboro.com, HERERaleigh.com, and HEREOBX.com, we provide comprehensive, credible insights into North Carolina's dynamic landscape.
