Red cedar construction secures $75m from L.M. sandler to expand build-to-rent platform

Red Cedar Construction Services, a Charlotte-based vertically integrated construction and development platform specializing in build-to-rent (BTR) and multifamily communities, has announced a $75 million strategic investment from L.M. Sandler & Sons, a fourth-generation real estate investment and homebuilding firm based in Virginia Beach, Va. 

The investment strengthens Red Cedar’s balance sheet and formalizes a long-term partnership to scale its national BTR and multifamily platform, accelerating geographic expansion, increasing production capacity and enhancing its ability to partner directly with institutional capital, developers and landowners. 

Founded in 2015, Red Cedar is an established operator that has delivered more than 50 communities and over 5,000 homes. With experience in rental housing dating back to 2010, the firm has developed a comprehensive “trees-to-keys” execution model that spans acquisition support, horizontal development, vertical construction and amenity delivery.  

“Sandler is proud to invest in the BTR and multifamily space with Jon Grabowski and Red Cedar,” said Steven Sandler, L.M. Sandler & Sons. “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. 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 brings deep operating expertise to the partnership. The firm owns Chesapeake Homes, a top 50 U.S. homebuilder, Wakefield Residential and Wakefield Development Company, one of the largest land development businesses in the eastern United States.  

“We are building a well-capitalized platform designed to serve as a stable, long-term partner to capital providers and developers,” said Jon Grabowski, CEO of Red Cedar Construction Services. “By integrating acquisition services, horizontal development, plan design and vertical construction under one structure, we reduce friction, improve transparency and create greater cost certainty for BTR and multi-family ownership groups.” 

The partnership includes the formation of a co-general partner (co-GP) investment vehicle, enabling Red Cedar to co-invest alongside developers and institutional capital in BTR and multifamily communities. The structure is intended to provide alignment and flexibility as projects scale across markets. 

Red Cedar differentiates itself through early-stage site control and acquisition support, detailed horizontal estimating that removes uncertainty from site work pricing, and a dedicated development team that streamlines platting and speeds the transition from horizontal to vertical construction. In addition to building clients’ custom floorplans, the company maintains a library of value-engineered architectural plans adaptable across lot types and product formats, including townhomes, detached homes, cottages and garden-style multifamily, allowing for faster underwriting and guaranteed maximum price (GMP) structures that provide cost assurance to capital partners. 

“We intend to be the benchmark in build-to-rent construction,” Grabowski said. “By vertically integrating development and construction and investing in systems that deliver clear, timely reporting, we can drive cost efficiencies that translate directly into project savings.  The more efficiently we build communities, the more housing gets delivered but without sacrificing quality or design.” 

Under the expanded platform, Red Cedar expects to scale production to 4,000 homes annually by 2028. At full capacity, the company projects adding approximately 50 permanent construction roles and supporting more than 1,000 trade jobs across its markets. 

The firm maintains a strong presence across the Carolinas, Georgia, Florida, Tennessee and Virginia, with additional projects in the Midwest, the Mid-Atlantic and the Southwest. 

For more information on Red Cedar, please visit www.redcedarco.com.

About Red Cedar Capital Partners 

Established in 2015, Red Cedar is a vertically integrated construction company based in Charlotte. As a land developer, homebuilder and commercial general contractor, we create investor returns through impeccable execution and well-timed exit strategies. Having built more than 50 communities and 5,000 homes, Red Cedar builds partnerships with people and companies who share our commitment to innovation, hard work and a passion for growth and opportunity. For more information, visit www.redcedarco.com. 

About L.M. Sandler & Sons 

LMSSI is an established and visionary business partner, master developer and community builder with a corporate culture grounded in competence and fiscal integrity.  Recognized by FORBES magazine as one of the largest private companies in the United States, the firm’s leaders, Steven Sandler and Art Sandler, have demonstrated their ability, over the past three decades, to assess real estate opportunities for the creation of value, to structure favorable financing for land development and real estate investment, and to complete outstanding multi-year projects profitably within a wide range of economic and market conditions. The lines of business that reflect this quiet success include residential development, commercial and office projects, resort communities, mortgage and title financing and insurance, and consumer credit.