Mountain Real Estate Capital and Davidson Communities Acquire 43-Lot Project in Rancho Santa Fe
Torrance, CA – June 6, 2011 – (RealEstateRama) — Mountain Real Estate Capital (MREC) announces the acquisition of The Vintage at The Crosby development in San Diego in a joint venture with Davidson Communities LLC. This represents the third acquisition made by the MREC/Davidson partnership in San Diego County. The value of the transaction could not be disclosed.
The acquisition consists of the purchase of 43 lots within The Crosby master plan community. The Crosby master plan is a gated golf course community approximately five miles east of Interstate 5 and five miles west of Interstate 15. The transaction closed June 1, 2011.
“MREC is extremely excited about not only the acquisition of another well-located project in Southern California but also the opportunity to continue growing MREC’s partnership with Davidson Communities,” states MREC Chief Executive Officer Peter Fioretti. “MREC continues to be impressed with the Davidson team and its ability to identify solid investment opportunities throughout Southern California. This represents our third venture with Davidson in less than ten months and we are already in diligence on several other projects with Davidson opportunities in other attractive California submarkets.”
MREC and Davidson successfully closed on The Sentinels at Del Sur in San Diego in August 2010 as well as Fairbanks Country Villas in January 2011. MREC and Davidson are now actively building and developing over 150 homes and lots in San Diego County with total projected revenues exceeding $90 million with total committed equity capital of approximately $40 million.
“Davidson Communities has been building homes in California for nearly 30 years, and we believe The Vintage is yet another great opportunity to build homes in one the best performing submarkets in the country,” said Bill Davidson, president of Davidson Communities. “Our partnership with Mountain continues to grow as our respective teams collectively work to source sound real estate opportunities in this recovering California real estate market. We continue to aggressively seek opportunities throughout California.”
Winner of an unprecedented 14 Grand SAM Awards – the most prestigious design award given by the San Diego Building Industry Association’s Sales & Marketing Council – Davidson will update existing architectural plans at The Vintage and expects to open models early next year.
MREC Senior Director Tom Orradre adds, “This opportunity is a credit to the strong relationships and industry contacts that the Davidson team brings to our partnership. This was an off-market transaction that required a significant amount of diligence in a short amount of time. The Davidson team did an excellent job in its underwriting of this opportunity.”
MREC continues to emerge as a leading provider of equity capital to homebuilders and residential land developers. Over the past 18 months, MREC has formed over 17 partnerships with private homebuilders, acquired over 7,800 lots and committed over $200 million to these joint ventures.
MREC’s homebuilder joint venture program is led by Managing Director Joel Kaul in Minneapolis. “This represents our third acquisition with Davidson in a great submarket in California. We believe we will be well-positioned as the California housing market recovers,” commented Kaul. MREC’s investment team has additional offices in Atlanta, Charlotte, N.C., Los Angeles and Newport Beach, Calif.
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.
