L.M. Sandler & Sons Invests $75M in Build-to-Rent Developer Red Cedar Construction Services
A $75 million investment from L.M. Sandler &. Sons will fuel expansion for Red Cedar Construction Services, a Charlotte-based build-to-rent and multifamily developer, the companies announced Sunday.
The investment, formalized as a co-general partner investment vehicle, will allow Red Cedar to increase production capacity, expand its geographic reach and strengthen its partnerships with institutional capital providers, developers, and landowners, according to a joint statement. Virginia Beach-based L.M. Sandler & Sons, a fourth-generation real estate investment and homebuilding company, sees Red Cedar as a leader in the rapidly growing build-to-rent sector.
“After evaluating multiple opportunities in the market, Red Cedar’s operation stood out for its execution discipline, operational rigor and laser focus on institutional rental housing,” said Steven Sandler of L.M. Sandler & Sons. “Their platform is purpose-built to deliver consistent, high-quality rental communities at scale, and we are confident in its long-term success.”
L.M. Sandler & Sons’ portfolio includes Chesapeake Homes, ranked among the top 100 homebuilders in the U.S. By Builder Magazine, as well as Wakefield Residential and Wakefield Development Co., which has developed land throughout the eastern United States.
Founded in 2015, Red Cedar has already delivered more than 50 communities and over 5,000 homes. The company has developed a “trees-to-keys” execution model, integrating various stages of development under one structure. “We intend to be the benchmark in build-to-rent construction,” said Jon Grabowski, CEO of Red Cedar Construction Services.
The new partnership is designed to provide alignment and flexibility as projects scale across multiple markets. Red Cedar intends to leverage the investment to streamline the acquisition process, horizontal development, plan design, and vertical construction, aiming to reduce friction and improve cost certainty for build-to-rent and multifamily ownership groups.
Red Cedar anticipates growing production to 4,000 homes annually by 2028. The company projects that this expansion will create approximately 50 permanent construction roles and support more than 1,000 trade jobs across its markets.
Grabowski explained that the platform is “building a well-capitalized platform designed to serve as a stable, long-term partner to capital providers and developers.”