Mountain Real Estate Capital has recapitalized two of Land Tejas Companies’ active master planned communities in Houston allowing development to move to its next phase.
The Charlotte-based private equity company provided new capital that fully repays all bank debt that was owed for Canyon Lakes West and Sterling Lakes South. With this new funding, both of these projects are now fully secured to cover engineering and site development costs.
The overall amount of funding provided by MREC was not provided.
Combined, both of these land projects accumulate for 2,600 total home sites in Houston. Each gated community project is currently in the second phase of being fully amenitized with homes being built by regional and national homebuilders such as DR Horton, LGI Homes, Castlerock Homes, Westin Homes,
“It has been a pleasure and a great opportunity for us to team up with the Mountain team,” said Al Brende, CEO of Land Tejas. “They bring both capital and a deep understanding of the complexities of residential development, allowing us to not only unlock the developmental value of these great projects but to also explore potential new acquisitions in this dynamic market.”
Keith Alexander, director of portfolio underwriting at MREC who helped structure and close this deal, said the company has been trying for a long time to “identify best-in-class residential developers in Texas.” Besides beginning a relationship with Land Tejas in Houston, MREC is expecting to close three more projects with the developer this year encompassing over 4,500 additional home sites located in Dallas, Austin and San Antonio.
Each project will be similar to Tejas’ Canyon Gate concept, which features a prime location, resort-style amenities and homes equipped with the latest technology.
Sterling Lakes South is known for its extensive family-oriented amenities such as a junior Olympic pool, spray-play pool, exercise room, cabana and changing rooms, tike-bike course, children’s playground, covered pavilions for picnics and basketball. Home prices range from the $100s to the $400s.
Since 2010, MREC has acquired over 24,000 lots/homes and another 11,000 developable acres with approximately $400 million committed in 15 states. Land Tejas is the 11th strategic developer or homebuilder relationship for MREC.
“As with all of our other partners, Land Tejas is a best-in-class operator within its submarket, requiring only flexible equity capital to be able to greatly expand its development capability,” said Arthur Nevid, chief investment officer for
