Spruce Properties Lands $45M Acquisition Loan for Charlotte-Area Expansion 

Spruce Properties has officially spread its wings to a brand-new market. 

The firm just acquired Evolve at Parkway, a garden-style multifamily property in the Charlotte suburb of Concord, N.C., for $68.8 million, landing a $45 million acquisition loan in the process, Commercial Observer can first report.

The 300-unit asset, at 50 Fenway Place Southwest, roughly 25 minutes from Downtown Charlotte, was built in 2023 and is almost fully leased. 

“This is a best-in-class property in a submarket that continues to outperform,” Robert Schwartz, co-founder of Spruce Properties, said in a release. “We are thrilled to capitalize on this rare opportunity to buy an institutional-quality, brand-new asset below replacement cost in a rapidly growing submarket with limited new supply.”

Zachary Neuget, partner and head of investments at Spruce Properties, said Charlotte and Raleigh are the firm’s top two target markets, and the deal is the first step in a “long-term strategic shift,” for the company. 

“After building a strong portfolio across the Midwest, we see this as the right time to pivot into markets with superior population growth, strong employment drivers, and deep institutional demand,” Neuget said. “Evolve at Parkway offers the rare opportunity to acquire high-quality product below replacement cost in a submarket backed by long-term demographic and economic tailwinds. It sets the tone for what’s to come.”

Greensboro, N.C.- based Evolve Companies was the seller of the property, which includes a saltwater pool, a fitness center, a pet wash station and a dog park. Berkadia’s Caleb Troop, Thomas Colaiezzi and Matt Robertson arranged the sale of the property on behalf of Evolve Companies, while Berkadia’s Laura Beaton arranged the Fannie Mae loan on behalf of Spruce. 

“Evolve at Parkway presented an opportunity to acquire a brand-new, high-quality asset with unique features in a market defined by top-rated schools, high-income earners and high barriers to entry for other multifamily operators,” Troop said in a release. 

Spruce Properties — an affiliate of Spruce Capital Partners — joined forces with in-house management company New Urban Residential last July with a goal to add value at existing properties and also grow the partnership’s portfolio. The partnership will now work to improve value as well as operational efficiency at Evolve at Parkway, according to the release. 

“As a fully unified platform working in tandem with Spruce Properties, we’re uniquely positioned to unlock the full potential of this asset,” said Seth Wolfman, a Spruce Properties partner and founder of New Urban Residential. 

Cathy Cunningham can be reached at ccunningham@commercialobserver.com