Red Cedar Construction Services, a Charlotte-based construction and development platform, has secured a $75 million strategic investment from L.M. Sandler & Sons. The capital will support the company’s expansion in the build-to-rent (BTR) and multifamily housing segments across the United States.
In particular, the company plans to scale its operations and increase annual production capacity to 4,000 homes by 2028. As a result, the partnership is expected to strengthen Red Cedar’s position in the growing rental housing market.
The funding comes at a time when demand for purpose-built rental housing continues to rise across the U.S. Therefore, developers and investors are focusing more on build-to-rent communities.
Moreover, the partnership adds operational expertise from L.M. Sandler & Sons, which has experience in homebuilding and land development. This collaboration is expected to support long-term growth and improve execution across projects.
Founded in 2015, Red Cedar Construction Services has delivered over 50 communities and more than 5,000 homes. The company operates through a vertically integrated model, which it describes as a ‘trees-to-keys’ approach.
This model includes acquisition support, land development, construction, and amenity delivery. By combining these functions, the company aims to simplify project execution and improve cost visibility.
As part of the partnership, both firms will form a co-general partner investment vehicle. This structure will allow Red Cedar to co-invest alongside developers and institutional investors in BTR and multifamily projects.
“Sandler is proud to invest in the BTR and multifamily space with Jon Grabowski and Red Cedar. 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.”
— Steven Sandler, L.M. Sandler & Sons
“We are building a well-capitalized platform designed to serve as a stable, long-term partner to capital providers and developers. 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.”
— Jon Grabowski, CEO of Red Cedar Construction Services
“We intend to be the benchmark in build-to-rent construction. 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.”
— Jon Grabowski, CEO of Red Cedar Construction Services
Looking ahead, Red Cedar plans to expand its workforce alongside its production targets. The company expects to add around 50 permanent construction roles. In addition, it aims to support over 1,000 trade jobs across its operating markets.
The investment reflects broader interest in the build-to-rent sector. As housing demand evolves, institutional investors are increasingly exploring rental-focused developments.
In this context, Red Cedar’s partnership with L.M. Sandler & Sons positions the company to expand its footprint and participate in this shift.
—----------------------
Raising capital? Explore 3,000+ PropTech and ConTech VCs in one place →https://www.proptechbuzz.com/vc
If you are a proptech company and want to promote your products for free, go to proptechbuzz.com and submit your products. For investors or proptech buyers, sign up on our platform to stay informed about exciting updates and trends in the Proptech Ecosystem.
Explore more Proptech news at proptechbuzz.com/news, for news tips and promotions, reach out to marketing@proptechbuzz.com.