MREC and LStar Land acquire TidalWalk
Mountain Real Estate Capital, based in Charlotte, N.C., acquired the TidalWalk seaside community on the southern coast of downtown Wilmington as REO from a consortium of lenders led by Southern Community Bank.
For approximately $31 million, MREC has partnered with LStar Land, a site selection and asset management firm in Raleigh, N.C., as the co-developer to redevelop the TidalWalk property.
TidalWalk is a 197-lot single-family community development that features a private beach, covered pier, nine boat slips, its own small island, clubhouse and homesites with panoramic water views. Additional planned amenities include a swimming pool, cabana and elevated boardwalks.
“This is a tremendous opportunity in terms of being involved in the development of a truly unique piece of real estate in a great town, and also teaming up with an investor like Mountain,” said LStar Land president Kyle Corkum. “It would not have been possible to close this acquisition if Mountain did not possess hands-on development and homebuilding experience needed to quickly underwrite this complex project alongside our development team.”
Besides TidalWalk, MREC acquired a mountain resort community in Asheville, N.C., and an infill project in Charlotte in December. The three properties contain about 1,000 lots.
Peter Fioretti, the chief executive officer for MREC, said his company plans to sell to or venture with large private and public homebuilders over the next five years regarding the three acquisitions. He added that MREC plans to close a deal to purchase two more developments in the Northeast and California in 2011.
“TidalWalk is a magnificent waterfront community which complements our other acquisitions,” Fioretti said. “With an additional two more sizable developments, projected sales of the five acquisitions are approximately $160 million.”
Last year, MREC acquired over $600 million of loans from 18 banks, which totaled over 7,750 lots and an additional 7,400 acres of developable land. With the recent acquisition of TidalWalk, MREC plans to invest $1 billion in bank REO/NPL focusing on residential development loans or projects that will be either acquired or restructured for existing borrowers.