NewStar Asset Management Launches NewStar Equity Lot Finance; Acquires 39 Acres

NewStar Asset Management, a real estate-focused alternative investment and asset management company, announced the launch of NewStar Equity Lot Finance, a subsidiary business focused on investments in residential land development in partnership with select national homebuilders.

In connection, through this business, NewStar acquired 39 acres in Charlotte, North Carolina in partnership with Red Cedar Development LLC, planned for development into a 126-townhome community known as Preservation Point. Prior to acquiring the property, NewStar and Red Cedar entered into a purchase agreement with a national homebuilder contracting for sale of the finished townhome lots.

The property is located approximately one mile from the main commuter loop, I-485, in northwest Charlotte with access to Uptown Charlotte and the Charlotte Douglas International Airport.

“We are excited to launch this new vertical which is so complementary to NewStar’s overarching investment thesis for single-family housing,” said Boone DuPree, chief executive officer of NewStar Asset Management. “Preservation Point meets our size and location targets within a market we know well, highly rated for single-family housing prospects, and where we are already actively developing. We look forward to starting construction in the first quarter with our partner, Red Cedar.”

The property is less than one mile from a variety of retail amenities including Harris Teeter and Walmart Supercenter.

“Preservation Point will be a great community for families and individuals seeking a convenient location relative to major employment hubs and transportation infrastructure,” said Joe Gibson, NewStar’s chief investment officer. “We have been active in the Charlotte market for many years across several investment platforms and we are excited to grow our presence there once again. This property is a short drive from our Hadley Crossing build-to-rent development which is finishing construction and starting its initial lease up this month.”

The company say clearing and sitework is expected to begin in the first quarter with finished lots delivered for sale beginning in the third quarter of 2024.

NewStar Asset Management is a real estate-focused alternative investment and asset management company based in Atlanta. NewStar Exchange, a subsidiary of NewStar Asset Management, invests in and manages Class A multifamily and single family built-to-rent residential communities in growing suburban locations across the Sun Belt.

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