MREC and Davidson Acquire 43-Lot Project in San Diego
Mountain Real Estate Capital, the equity investment arm of the Mountain Real Estate Group, has closed a joint venture for an undisclosed amount with Davidson Communities to purchase one community development in San Diego.
The Vintage at The Crosby development is a gated golf course community that features 43 lots. The property is located about five miles from two separate interstate highways.
“Davidson Communities has been building homes in California for nearly 30 years, and we believe The Vintage is yet another great opportunity to build homes in one of the best performing submarkets in the country,” said Bill Davidson, president of Davidson Communities. “Our partnership with Mountain continues to grow as our respective teams collectively work to source sound real estate opportunities in this recovering California real estate market. We continue to aggressively seek opportunities throughout California.”
This is the third project the two companies have successfully closed together in the region within the last two years. In August 2010, both sides acquired The Sentinels at Del Sur and in January 2011, they obtained Fairbanks Country Villas.
With the current acquisition, the companies are developing over 150 homes and lots in San Diego County. Total projected revenue is expected to exceed $90 million with total committed equity capital of approximately $40 million.
“MREC is excited about not only the acquisition of another well-located project in Southern California but also the opportunity to continue growing MREC’s partnership with Davidson Communities,” said Peter Fioretti, CEO of Mountain Real Estate Capital. “MREC continues to be impressed with the Davidson team and its ability to identify solid investment opportunities throughout Southern California.”
Davidson Communities, which designs, builds and markets single-family and multifamily housing in the Western U.S., plans to make updates to the existing architectural plans at the community development. The real estate company expects to open the new models in early 2012.
“This opportunity is a credit to the strong relationships and industry contacts that the Davidson team brings to our partnership,” said Tom Orradre, senior director at MREC. “This was an off-market transaction that required a significant amount of diligence in a short amount of time. The Davidson team did an excellent job in its underwriting of this opportunity.”