ABOUT MOUNTAIN REAL ESTATE CAPITAL: 
Mountain Real Estate Capital, LLC is one the nation’s largest investment firms dedicated primarily to providing equity financing for residential developments. Mountain Real Estate Capital invests institutional equity capital in for-sale real estate projects located throughout the United States. 

Formed in 1993, Mountain Real Estate Capital  is a strong, stable organization offering a diverse portfolio of services to meet the needs of today’s homebuilders and residential developers. In 2009, Mountain successfully absorbed GMAC/RFC lending and equity-based real estate lending platform which included its senior management and professionals.   

Mountain Real Estate Capital sets itself apart from its competition by providing its clients with quick, straight forward project evaluations, efficient underwriting schedules, and streamlined document preparation and negotiation. 

OUR EXPERIENCE:                                    
Mountain’s senior management has significant direct development and construction experience which provides a clear understanding of the challenges and opportunities facing homebuilders and residential land developers.  Their combined depth of experience in all aspects of the real estate development business allows them to be proactive and responsive to the builder’s needs.

TYPICAL DEAL STRUCTURES:
While Mountain Real Estate Capital remains flexible relative to the specific needs of its client, typical deal characteristics involve the following:

Equity Joint Ventures
          • Builder equity contribution typically 10% to 20% of total projected costs
          • Target IRR of 23% to 25% with upside potential
          • Placement fee equal to 2% of Mountain’s equity commitment
          • Builder management fee typically 3% to 5% of revenues
          • Mountain earns administration fee in the amount of .75% to 1.50% of gross sales revenues
          • Investment size is $3-50 million per investment
          • Term is two to seven years from initial investment

Structured Lot Options
          • Builder typically contributes 15% to 20% option deposit
          • Target IRR of 20% to 25% with upside potential
          • Mountain will purchase and own property and grant Builder an exclusive option to purchase lots
          • Builder provides Mountain with fixed-price development contract

CUSTOMER AND DEAL PROFILE:
Tier I  - large public or private builder with proven track record of successfully developing, building and selling residential lots or homes in their target markets.  Develops/builds 300-500 homes per year.
Tier II - mid-sized private builder with proven track record of successfully developing, building and selling residential lots or homes in their markets.  Develops/builds in excess of 150-300 homes per year.

Selected projects will be in the development of land and/or construction of entry level and first or second move-up housing in established markets which exhibits positive growth characteristics.  Each project will be required to have all discretionary entitlements in place prior to Real Estate Capital.