Mountain Real Estate Capital Acquires 267-Lot Project with Classic Homes of Colorado Springs
Torrance, CA – October 10, 2011 – (RealEstateRama) — Mountain Real Estate Capital (MREC) (www.mountainrecapital.com) announces the closing of a new investment with Classic Homes of Colorado Springs to develop Promontory Pointe, a 267-lot community located in Monument, Colo. The transaction represents MREC’s first investment in the Colorado Springs housing market. The terms of the deal were not disclosed.
Promontory Pointe was originally developed as a John Laing Homes community and had been tied up in bankruptcy since 2009. Over the past several months, Classic Homes worked diligently with the town of Monument to modify the project’s housing and development plans so that a successful community could be developed. The community was owned and maintained by the seller, Wachovia, who worked with MREC and Classic Homes on the sale. The MREC/Classic Homes JV partnership will finish development of the 267 lots and then sell the property to Classic Homes and Vantage Homes who will build out the community.
Director Eric Bialke and Joel Kaul of MREC completed the investment. “The Promontory closing highlights our continued investment strategy of focusing on select national residential markets where we feel economic conditions warrant a market recovery,” said Bialke. “Classic Homes has been the top home builder in Colorado Springs with a reputation for delivering quality homes to satisfied customers for the past 20 years. Their ability to work with the local governmental agencies to resolve site plan issues was critical to this closing’s success. We are excited about our partnership with Classic Homes and plan to grow our investment platform with them over the next few years.”
Doug Stimple, CEO of Classic Homes, states, “Classic Homes is extremely excited to introduce Promontory Pointe to the El Paso County market. The supply of finished lots that are reasonably priced, well located and situated in an outstanding school district is diminishing. We are pleased and honored that MREC elected to be our partner in this exciting project and we look forward to furthering our relationship with them.”
Mountain Real Estate Capital is the equity investment arm of the Mountain Real Estate Group. Other affiliates include its lending group, Mountain Funding, and its management group, Mountain Asset Management. The investment entity is focused on three types of investments:
• Joint ventures with national and regional homebuilders to develop and sell residential lots and houses
• Acquisition of opportunistic assets for its own account or in partnership with developers
• Acquisition of bank REO and NPL portfolios
MREC is headquartered in Charlotte, N.C., with the homebuilder joint venture program based out of its Minneapolis office. The national origination team has additional offices in Atlanta, Los Angeles, Richmond, Va. and Newport Beach, Calif.
MREC continues to emerge as a leading provider of equity capital to homebuilders and residential land developers. Over the past 18 months, MREC acquired over 10,600 lots/homes and 7,750 acres with over $235 million committed to 22 investments purchased from 17 banks. Most of the group is comprised of former bank REO managers who were responsible for the management and disposition of 46,000 lots and homes valued at more than $2 billion.
About Mountain Real Estate Capital
Since 1993, The Mountain Real Estate Group has been a leading private capital source for real estate developers, builders and operators seeking to enhance value in their existing projects or to take advantage of new opportunities. In the current environment, developers and builders have been teaming up with Mountain Real Estate Capital nationally to capitalize on the opportunities currently available, either through the restructure of their existing equity or debt arrangements or the joint purchase of a newly identified distressed opportunity. Mountain’s equity fund is organized to invest up to $1 billion in these types of opportunities. For more information, visit www.mountainregroup.com.
