Mountain Real Estate Capital Closes 2011 with Two Significant Bank Note Acquisitions in Raleigh and Charleston

CHARLOTTE, N.C.—Jan. 16, 2012— Mountain Real Estate Capital (MREC) announces the closing of two notable acquisitions: one for a loan portfolio with residential assets located throughout South Carolina and a separate note purchase on a high profile subdivision in the North Hills section of Raleigh. In total, MREC acquired approximately 150 performing and non-performing loans totaling over $100 million in loan balance. The loans are secured primarily by residential development properties in Raleigh, N.C., and the Charleston, Myrtle Beach, Hilton Head and Kiawah Island areas of South Carolina.

"Fourth quarter note closings are what we gear up for all year," observes Peter Fioretti, MREC’s CEO. "Last year we closed $75 million of distressed notes on the last business day of the year. We have offices nationally and our in-house underwriting and asset management teams are composed mostly of former GMAC REO professionals whose group we acquired in 2009. This allows us to quickly assess these A&D portfolios and gives us an advantage over less experienced opportunity funds."

Since 2010, MREC has purchased assets in 10 states from 30 different financial institutions. It is capitalized with $1 billion to acquire distressed notes and assets, of which approximately $260 million has been invested in assets comprising over 10,000 lots/homes and 9,000 acres with projected sales exceeding $1.2 billion.

Mountain Real Estate Capital is the equity investment arm of the Mountain Real Estate Group, founded in 1993 by its CEO, Peter Fioretti. Other affiliates include its lending group, Mountain Funding, and its management group, Mountain Asset Management. MREC is focused on three types of investments:

MREC is headquartered in Charlotte, N.C., where its bank portfolio acquisition team is headed by its chief investment officer, Arthur Nevid. Its homebuilder joint venture and asset management groups are based in Minneapolis, and its national origination team has additional offices in New York, Atlanta, Los Angeles, Richmond, Va., and Newport Beach, Calif.

"We are very pleased to enter the highly desired Raleigh-Durham market where our co-developer, LStar Land Group is headquartered," explains Nevid. "We will soon announce another REO purchase with LStar in the RDU market, putting our potential holdings there in excess of 1,000 residential lots. Between the expertise of our local partners and MREC’s in-house asset management and underwriting group, we are primed to quickly underwrite and close additional loan portfolios in this region and throughout the country."





Media Contact
The Hoyt Organization
Amy Hanoa, ahanoa@hoytorg.com


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