Construction lending in Myrtle Beach is driven by multifamily ground-up and industrial build-to-suit activity. Regional banks are active for projects under $15M while national debt funds and CMBS lenders cover larger deals.

When to Use Construction Loans in Myrtle Beach

Myrtle Beach's commercial real estate market, driven by government, healthcare, education, manufacturing, logistics, creates specific scenarios where construction loans are the optimal financing choice:

  • Ground-up apartment developments
  • Industrial warehouse construction
  • Build-to-suit retail and office
  • Hotel development and rehabilitation
  • Fix-and-flip residential projects
  • Major property renovations and repositioning

In the Myrtle Beach metro, construction loans are particularly relevant given the market's 3.2% rent growth and 1.6% job growth, which support development feasibility and absorption timelines.

Current Construction Loan Rates in Myrtle Beach

As of 2026, construction loans in the Myrtle Beach market are pricing at the following levels:

  • Rate Range: 6.23% - 13.04%
  • Loan Amount: $1M - $100M+
  • Term: 12 - 36 Months
  • Maximum LTC: Up to 85% LTC
  • Recourse: Recourse Typical, Non-Recourse Available

Rates in Myrtle Beach may vary from national averages based on local market conditions, property type, and sponsor experience. The Myrtle Beach market's 5.50%-6.25% multifamily cap rates and 5.25%-6.00% industrial cap rates influence lender pricing as they underwrite to specific debt yield and coverage targets.

Qualification Requirements

Qualifying for construction loans in Myrtle Beach requires demonstrating both borrower strength and property fundamentals. Key requirements include:

  • Borrower Experience: Lenders evaluate your track record with similar assets in Myrtle Beach or comparable markets
  • Net Worth & Liquidity: Most lenders require net worth equal to the loan amount and 6-12 months of debt service in liquid reserves
  • Property Performance: Detailed construction budget, timeline, and evidence of market demand for the finished product
  • Market Position: Asset location within Myrtle Beach's strongest submarkets, including Downtown Myrtle Beach, Surfside Beach, Murrells Inlet, Pawleys Island

Capital Sources for Construction Loans in Myrtle Beach

The Myrtle Beach market offers access to a diverse set of capital sources for construction loans:

  • Banks
  • Debt Funds
  • Private Lenders
  • Credit Unions
  • CDFI Lenders

Each capital source has distinct appetites for property types, leverage levels, and borrower profiles. Working with a commercial mortgage broker who maintains relationships across all these capital sources ensures you're seeing the most competitive terms available in Myrtle Beach.

Exit Strategy Considerations

Construction loans in Myrtle Beach are interim financing that must be replaced upon project completion. The typical exit is a permanent loan once the property is built and stabilized, or a sale to a long-term investor. The Myrtle Beach market's 1.6% job growth and 0.9% population growth support absorption assumptions, but borrowers should underwrite conservatively and have backup exit options.

Myrtle Beach Market Context

Myrtle Beach is one of the fastest-growing metros on the Eastern Seaboard, driven by retiree migration, tourism infrastructure, and an expanding year-round residential base. The market offers compelling retail and hospitality investment opportunities alongside strong multifamily demand from new permanent residents.

Understanding the local market dynamics is critical for structuring the right financing. The Myrtle Beach metro's key commercial neighborhoods include Downtown Myrtle Beach, Surfside Beach, Murrells Inlet, Pawleys Island, Conway, Socastee, North Myrtle Beach, Loris, Horry County, Carolina Forest, Market Common, Grand Strand, each with distinct property characteristics and tenant demand profiles.

Get a Construction Loan Quote for Myrtle Beach

CLS CRE provides construction loans throughout the Myrtle Beach metro area, with access to 1,000+ lenders competing for your deal. Our market expertise in Myrtle Beach commercial real estate helps you navigate the lending landscape and secure the most competitive terms available.

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