Mountain Real Estate Capital Jumps on Multifamily, Other Opportunities
Mountain Real Estate Capital, which was formed recently to be the equity investment arm of Charlotte-based Mountain Real Estate Group,
Dees Stribling, Contributing Editor
Charlotte, N.C.–Mountain Real Estate Capital, which was formed recently to be the equity investment arm of Charlotte-based Mountain Real Estate Group, has closed on five opportunistic acquisitions of various assets, including multifamily and other residential properties. The properties represent the first acquisition by the company, but not the last, it says.
The acquisitions include an REO purchase of a portfolio of 56 residential communities in the greater Atlanta area from Bank of North Georgia. Mountain Real Estate Capital plans to build out the larger projects in a joint venture with builder partners, and sell the remaining projects.
Another acquisition was of a $75 million equity partnership with GL Homes of Florida to acquire assets from a major financial institution. The partnership allows GL to recapitalize seven different partnerships involving 8,300 acres and 6,500 home sites, plus capital for completion of additional inventory. There’s a potential real estate sell-out in excess of $1.8 billion over an eight-year period, according to Mountain Real Estate Capital.
The company also acquired an equity joint venture with GreenPointe Communities of Florida to purchase, develop and sell two subdivisions located in Jacksonville; a non-performing loan secured by an 80,000-square-foot commercial building in South Carolina; and 1,200 acres in southwestern Florida entitled for 1,000 dwelling units.
There will be more acquisitions before long. “We are inundated with opportunities and are currently reviewing or in due diligence on about $200 million of such opportunities,” Arthur Nevid, chief investment officer of Mountain Real Estate Capital, tells MHN. “As our expertise is in fractured condos and land/lot development deals, there is no shortage of such opportunities.”
Like most opportunistic investors, Mountain Real Estate Capital needs to be fleet of foot to beat other investors to the punch. “The environment is competitive for good opportunities, so we have to move quickly,” adds Nevid. “We try to make a proposal in two to three days, to be followed by a due diligence period of two to four weeks, depending on the circumstances, and a closing shortly thereafter. Each of the deals we did in the first quarter closed within 30 days from inception.”
Many of Mountain Real Estate Group’s staff joined in 2009 from GMAC-ResCap’s Business Capital Group, where they were responsible for the management and disposition of over $2 billion of residential assets. Currently, Mountain Real Estate Group owns or manages of over $1 billion of property throughout the country.