CHARLOTTE – Mountain Real Estate Capital, a private equity investor in residential land development and homebuilding, closed on eight investments in the second quarter.
“Five of the transactions were with existing partners, and we added three additional Best-in-Class developers/builders to our national platform,” said Arthur Nevid, Mountain’s chief investment officer.
“2014 continues to be another growth year for Mountain and our partners,” said Peter Fioretti, Mountain’s CEO. “Our largest investment was providing additional equity to existing partner Oakwood Homes to acquire one of Utah’s largest builders, Henry Walker Homes. This included over 1,200 lots and 400 acres in 40 communities. Since our first investment with Oakwood in 2012, they have grown from approximately 300 closings a year to over a 1,000 closings projected in 2014, which will make them one of the top 50 builders in the country.”
Mountain committed $145 million to acquire a total of 3,000 lots and 1,000 acres to be developed in eight states.
“We continue to be excited about the diversity of our portfolio and the repeat business with our existing partners,” said Joel Kaul, Mountain’s managing director who oversees a majority of the builder/developer relationships for the company. “We recently closed on our 10th subdivision with one of our Midwest builder partners, our sixth deal with one of our West Coast builder partners and our 12th transaction with our builder partner in New York City.”
In addition to the firm’s existing builder partners, Mountain is developing and selling lots to another 30 builders in master plan communities and land projects across the country.
“Not only did we have another solid quarter but our pipeline for repeat business also remains strong,” added Fioretti. “We project that we will invest over $100 million in the third quarter. As the industry participates in the economic recovery we will expand to select markets around the country.
Mountain Real Estate Capital was founded in 1993 and has its headquarters in Charlotte. It also has offices in Minneapolis, San Diego and New York.