Mountain Real Estate Capital Acquires 67-Unit Silver Lake Property Lot
Torrance, CA – July 18, 2011 – (RealEstateRama) — Mountain Real Estate Capital (MREC) announces the acquisition of Silver Lake in Los Angeles in a joint venture with Harridge Development Group LLC. The transaction closed July 1; its value could not be disclosed.
The acquisition consists of the purchase of a property entitled for 67 residential units, plus an adjacent commercial parcel also zoned for apartment use. Situated on its landmark reservoir and located approximately three miles north of Downtown Los Angeles, Silver Lake has become one of Los Angeles’ most attractive infill markets.
This is the fifth property MREC has acquired in Southern California since August 2010. Silver Lake was acquired from East-West Bank, which took title to the property via foreclosure and represents the 16th deal MREC has purchased from a bank since 2010.
MREC’s ability to purchase property and/or bank notes with all cash allows for quick closings. Silver Lake closed in less than 60 days from a signed LOI agreement.
Harridge Development was recently formed by David Schwartzman, a Los Angeles-based real estate developer. Mr. Schwartzman has more than 21 years of real estate experience beginning with his homebuilding-development career in 1990. He has completed more than 20 projects in Los Angeles and controls approximately 700 lots in Southern California. “I look forward to working with the Mountain team in expanding our presence in the urban infill market in Southern California. This is a niche market that this partnership will successfully fill,” commented Schwartzman. MREC’s aptitude for quick underwriting and cash closings give it a competitive edge in the market.
MREC’s homebuilder joint venture program is led by Managing Director Joel Kaul in Minneapolis. “David and his team have a long track record of successful land development in the Los Angeles area,” says Kaul. “We believe there is strong demand for urban infill housing in Los Angeles and intend to partner with Harridge to develop the Silver Lake site as well as other projects in the near future.” MREC Senior Director Lance Franklin adds, “we are excited about starting a relationship with Harridge Development, which has a team of talented and creative professionals that have worked together for over 15 years. They have a proven track record of entitling and developing challenging projects in Los Angeles. Their knowledge of the local market and their dynamic skill set will provide MREC opportunities to invest further in the Los Angeles infill market.” MREC looks forward to additional investments of $50 million to $100 million with Harridge in this submarket.
The MREC JV will work with the city to redesign the north parcel to a lower density residential use. The south parcel plan will be entitled for similar lower density or possibly apartment use. The finished lots will be sold to homebuilders targeting infill locations. MREC is enthusiastic about the Los Angeles infill market and particularly the Hollywood and Silver Lake submarkets.
Harridge is the 7th operating partner MREC has formed a strategic relationship with across the country since it began its land and residential project acquisition investment program in March 2010. 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 8,800 lots and 7,000 acres with over $230 million committed to 16 joint ventures.
About Mountain Real Estate Capital
The Mountain Real Estate Group is focused on purchasing large portfolios and NPL/REO assets direct from banks. Additionally, the group provides capital through JV equity and restructure of current debt to its builder/developer partners. Mountain’s equity fund is positioned to invest up to $1 billion in these types of opportunities.
Since 1993 Mountain has been a leading private capital source to its partners. Mountain Real Estate Capital is the equity investment arm of the Mountain Real Estate Group. Other affiliates include its lending group, Mountain Funding, LLC, and its asset management, Mountain Asset Management Group, LLC. For more information, visit www.mountainrecapital.com.
