Tuesday, March 5, 2013

Charlotte capital firm partners with Oakwood Homes

Charlotte-based Mountain Real Estate Capital has entered into a strategic partnership with Oakwood Homes, Colorado’s largest privately held homebuilder. 

Mountain Real Estate Capital will provide more than $100 million in equity capital to accelerate Oakwood Homes' growth and expansion into new markets, the companies said Tuesday. Oakwood Homes is expanding within Colorado and other regions, including Omaha.

“Oakwood has clearly developed a competitive edge in their marketplace and continued to reinvent themselves with superior product and market positions during the downturn. Together, we will be positioned to now take advantage of the growing market opportunities throughout the Midwest and Western markets,” said Peter Fioretti, chairman and CEO of Mountain Real Estate Capital.   
The companies have been in active discussion since June 2012, shortly after the two firms jointly acquired Banning Lewis Ranch, a 2,600-acre, 8,500-lot master planned community in Colorado Springs, Colo.

“While capital is essential to homebuilders, success is also based on relationships and industry experience,” said Pat Hamill, Oakwood's founder. “This partnership not only delivers a capital infusion, it sets the stage for us to take advantage of market demand and expansion opportunities with greater flexibility than others in the industry."

Mountain Real Estate Capital is a private capital source for real estate developers and builders.  Based in Charlotte, it has offices in Minneapolis, San Diego, New York, Richmond, Baltimore and Los Angeles.  Since 2010, the company has acquired more than 31,000 lots or homes and another 12,000 developable acres. With roughly $500 million of equity investment involved in deals, the firm is involved in projects in 15 states.