Mountain Real Estate Capital Acquires California Property Lot
For the fifth time since August 2010, Mountain Real Estate has acquired another bank-owned property in Southern California.
As part of a joint venture with Harridge Development Group LLC, MREC purchased a property that is entitled for 67 residential units as well as an adjacent commercial parcel zoned for apartment use.
The Silver Lake property, located near Downtown Los Angeles, was obtained by MREC from East-West Bank. The bank took title to the property through foreclosure, with Silver Lake closing in less than 60 days from a signed letter of intent agreement.
The value of the acquisition, which closed on July 1, could not be disclosed.
Since 2010, MREC has purchased 16 properties from banks throughout the country with all cash. The firm is looking to invest an additional $50 million to $100 million for development purposes in this region with Harridge.
“Harridge Development have a proven track record of entitling and developing challenging projects in Los Angeles,” said Lance Franklin, senior director at MREC. “Their knowledge of the local market and their dynamic skill set will provide MREC opportunities to invest further in Los Angeles’ infill market.”
The joint venture will work with the city to redesign one parcel to be residential use, while the other parcel is either going to be residential or apartment use. The finished lots will then be sold to homebuilders targeting infill locations.
Joel Kaul will be the managing director of MREC’s homebuilder joint venture program.
“We believe there is a strong demand for urban infill housing in Los Angeles and intend to partner with Harridge to develop the Silver Lake site as well as other projects in the near future,” Kaul said.