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Mountain Real Estate Capital Acquires San Diego Asset in Joint Venture with Davidson Communities
SAN DIEGO, Calif.—Sept. 15, 2010—Mountain Real Estate Capital (MREC) continues the success of its opportunistic investment platform with the closing of a joint venture with Davidson Communities. The joint venture purchased The Sentinels at Del Sur subdivision located in San Diego, Calif. from Bank of America. The project consists of 17 substantially finished lots and four fully completed and furnished model homes that have been highly upgraded with a number of options. The Del Sur community is an 1,800-acre master plan community that will eventually comprise approximately 3,000 single-family and multifamily residences and an abundance of community amenities. Del Sur is a collection of intimately designed neighborhoods with parks and pools within walking distance of neighborhoods, highly rated schools, a future town center with shops and dining and over 1,000 acres of open space.
"We view this transaction as a great opportunity for our group to partner with one of the premier private home builders in Southern California and jointly seek additional opportunistic bank assets to acquire and build," said Peter Fioretti, chief executive officer of MREC. "We are convinced that this community is well positioned in a great submarket and we project a fairly rapid home sale program. We are even more excited to establish a relationship with an experienced builder like Davidson Communities, who we fully expect will be our partner on many projects in the future throughout Southern California."
This is the second residential development project that MREC has acquired from Bank of America. The first was a large 750-lot project in Florida. This year MREC has acquired assets from banks and other institutions with original basis in excess of $500 million.
Joel Kaul and Tom Orradre of MREC worked directly with the Davidson team to establish the new joint venture. "We believe The Sentinels will be the first of many great successes for our partnership," said Orradre. "The Davidson brand has been very successful in Southern California and Davidson is known for their high quality home design and workmanship. We are very excited to establish this partnership, and we are already looking to acquire two additional home building projects."
Founded by William A. Davidson in 1978, Davidson Communities has been a leading real estate
company in California. The company designs, builds and markets single-family and multi-family housing in all six Southern California counties and has constructed over 20,000 homes since 1971. Davidson Communities has a diverse product background having built everything from first time single-family homes to high-end luxury homes, suburban multifamily homes and urban infill homes. Davidson's development experience includes entitlement work, land planning, master infrastructure design, land development and lot sales in a variety of local markets.
"Mountain Real Estate Capital is exactly the type of financial partner we have been looking for," states Mr. Davidson. "Their real estate development experience and market knowledge allowed them to quickly maneuver through some complex issues, something we are not accustomed to seeing with other institutional equity partners. They are aggressive and thorough and clearly want to establish a platform here in California."
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 asset management group, Mountain Asset Management. The new investment entity is focused on three types of investments:
- Acquisition of bank REO and NPL portfolios and bank equity recapitalizations
- Acquisition of opportunistic assets for its own account or in partnership with developers
- Joint ventures with national and regional homebuilders to develop and sell residential lots and houses
Media Contact
The Hoyt Organization
Amy Hanoa, ahanoa@hoytorg.com
