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Sterling & Oak · Confidential · SEC Rule 506(b)
Sterling & Oak Capital Partners
Confidential · June 2026
Senior Secured Debt Opportunity

Project Ritter
Charlotte, NC

7314 Ritter Dr & 301 Sardis Rd N (combined parcel) · Mecklenburg County · Strictly for accredited investors with a pre-existing relationship

$150K
Total loan offering
9.0%
Contractual annual yield
50%
Origination LTV
12 mo
Defined loan term

The property

Mecklenburg GIS Deal-specific

This is a land loan secured by a combined parcel in south Charlotte — one of the most supply-constrained, high-demand residential submarkets in the Charlotte metro. The collateral consists of two adjacent parcels being formally recombined into a single lot: the operator's existing triangle parcel at 7314 Ritter Dr and the rear portion of the neighboring property at 301 Sardis Rd N, acquired specifically for this project. Once the recombination plat is recorded by Mecklenburg County, the combined parcel will measure approximately 0.925 acres, large enough to subdivide into three residential lots suitable for luxury single-family construction. The area is zoned N1-A by the City of Charlotte, is not located in a floodplain, and has city water and sewer available at the street. The loan closes simultaneously with the property purchase upon plat recordation, targeting June 19, 2026.

Operator exit strategy — three-phase land play
01
Plat & combine
Mecklenburg County records the recombination plat merging both parcels into one ~0.925 ac lot. Loan closes simultaneously.
02
Subdivide into 3 lots
The combined parcel is subdivided into three buildable residential lots (≈ 0.28–0.33 ac each). Comparable sales support $170K per lot.
03
Construction loans → payoff
Operator secures a construction loan on each lot (expected ~month 9). Proceeds retire the Sterling & Oak loan in full.
Collateral parcels
7314 Ritter Dr + 301 Sardis Rd N (rear portion), Charlotte, NC 28270
County
Mecklenburg County, North Carolina
Asset type
Undeveloped land — combined parcel (subject to recorded recombination plat)
Combined parcel area
≈ 40,282 SF / 0.925 acres
Zoning
N1-A (City of Charlotte) — residential
Proposed new lots
3 residential lots (≈ 12,500–14,600 SF each)
Comparable lot value
$170,000 per lot (000 Sardis Rd N, closed Nov 2025)
Gross pro forma lot value
$510,000 (3 × $170,000)
As-is verified value (combined)
$300,000
LTV on as-is value
50%
LTV on gross pro forma value
29%
State foreclosure type
Non-judicial ✓
Closing condition
Mecklenburg County plat recordation (target Jun 19, 2026)
Closing is contingent on plat recordation. Both the property purchase and the loan close simultaneously upon Mecklenburg County formally recording the recombination plat. No funds are released until this condition is met. Target date: June 19, 2026.

Loan terms & your return

Loan amount
$150,000
Targeted investor yield
9.0% — fixed & contractual
Loan term
12 months
Minimum allocation
$20,000
Maximum allocation
$120,000 (80% of loan)
Origination LTV
50% of verified as-is value
Pro forma LTV (gross lot value)
29%
Lending box cap
70% — never exceeded
Security
First lien deed of trust on combined parcel
Borrower guarantee
Full recourse personal guarantee
Distribution
Monthly interest / principal returned at maturity
Prepayment penalty
None
Fund release
Escrow — upon lien recordation only
Partner capital
First-priority lien · 9.0% contractual yield · paid before founder equity
80%
Sterling & Oak first-loss
Founders' own capital ($30,000) · absorbs initial shortfall · paid last
20%
$20,000 min$120,000 max
$100,000
Your deployment
$750
Monthly interest
$9,000
Annual yield
$100,000
Principal at maturity

Monthly interest begins accruing upon release of funds to the borrower following lien recordation. Principal is returned in full at loan maturity or upon construction loan take-out, whichever occurs first. Yield is pro-rated to actual term if the loan exits early. The slider maximum reflects the 80% partner capital allocation; Sterling & Oak's 20% first-loss contribution ($30,000) is funded separately by the founders.

The operator

S&O vetted
Charlotte
Primary market
Luxury SFH
Construction specialty
Active
Owns adjacent parcel (7320 Ritter Dr)

The operator is an experienced Charlotte-based residential developer with an established track record in the south Charlotte submarket. Specializing in luxury single-family construction, the operator has demonstrated a consistent ability to identify underutilized land parcels, navigate municipal plat and subdivision processes, and bring construction projects to market in supply-constrained neighborhoods. The operator already owns the adjacent parcel at 7320 Ritter Dr, demonstrating direct familiarity with this specific block and the surrounding market. The operator is personally guaranteeing this loan.

Verified south Charlotte market activity
Owns adjacent parcel — block-level expertise confirmed
Luxury SFH construction background
Plat & municipal subdivision experience
Full recourse personal guarantee executed
Personal assets extend recourse beyond collateral

Operator identity is disclosed to investors upon execution of a reservation.

How your capital is protected

Every Sterling & Oak loan is structured with interlocking contractual, recorded, and legally enforceable protections. These define how capital is prioritized if anything goes wrong.

50% as-is LTV — well inside the 70% lending box
The $150,000 loan represents 50% of the independently verified $300,000 as-is value of the combined parcel — a 20-point margin below the hard cap. Against the $510,000 gross pro forma lot value, the loan-to-value drops further to 29%. Both figures provide substantial cushion before partner capital is at risk.
20% founder first-loss position ($30,000)
Sterling & Oak founders contribute $30,000 of their own capital into this deal in the first-loss position. In any shortfall scenario, founder capital is fully exhausted before a single dollar of partner capital is at risk. The founders lose first.
Recorded first-priority deed of trust + lender's title insurance
A first-priority deed of trust is recorded on the combined parcel at closing, establishing legal seniority over all equity holders. Sterling & Oak is named as sole insured on a professional lender's title insurance policy, protecting the secured position against title defects, lien disputes, and undisclosed encumbrances.
Full recourse personal guarantee
The loan is backed by a full recourse personal guarantee from the borrower individually. Recovery extends beyond the collateral parcel to the personal assets of the guarantor. The operator also owns the adjacent parcel at 7320 Ritter Dr, further broadening the recoverable asset base in any default scenario.
Recovery waterfall — contractual priority order
1
Recovery costs
Legal & trustee fees to execute recovery
2
Partner principal
100% of invested capital returned first
3
Partner yield
Accrued 9.0% contractual interest
4
S&O equity
Founders paid last, after all partner obligations
Material risks — read before committing capital

Structural protections are designed to mitigate — not eliminate — investment risk. All investors should understand the following before committing capital.

Plat recordation risk: closing is contingent on Mecklenburg County recording the recombination plat. Any delay or denial would postpone or prevent closing and loan funding.
Construction financing risk: the primary exit depends on the operator securing construction loans on the new lots. Inability to obtain that financing would extend the loan term or require an alternative exit.
Market risk: a significant decline in south Charlotte land values could reduce collateral below the loan balance. The 50% as-is LTV provides meaningful downside cushion.
Illiquidity risk: capital is committed for the full 12-month term with no secondary market or early redemption mechanism.
Concentration risk: this loan is secured by a single parcel. Size your commitment with your overall portfolio diversification in mind.

North Carolina is a non-judicial foreclosure state. In the event of default, Sterling & Oak may pursue foreclosure without court proceedings, enabling a faster and more predictable recovery timeline. All legal costs are recovered from deal proceeds before partner distributions.

Reserve your allocation

Allocations in Project Ritter are limited to $120,000 per investor and accepted in order of reservation. Complete the form below to secure your position. A member of the Sterling & Oak team will be in touch within one business day to confirm and provide next steps.

I confirm that I am an accredited investor as defined under SEC Rule 501 of Regulation D, and that I have a pre-existing substantive relationship with Sterling & Oak Capital Partners or its principals prior to submitting this reservation.

Submitting this form does not constitute a binding commitment. Formal documentation will be provided upon confirmation. Sterling & Oak will never share your information with third parties.

Reservation received

Thank you. A member of the Sterling & Oak team will contact you within one business day to confirm your position in Project Ritter and provide next steps.