Mountain Real Estate Capital ended fiscal year 2011 by closing on two bank note acquisitions of approximately 150 performing and nonperforming loans that totaled over $100 million.
The loans are secured primarily by residential development properties in Raleigh, N.C., and the Charleston, Myrtle Beach, Hilton Head and Kiawah Island areas of South Carolina.
“Fourth-quarter note closings are what we gear up for all year,” said Peter Fioretti, CEO of Mountain Real Estate Capital, Charlotte, N.C. “Last year we closed $75 million of distressed notes on the last business day of the year.”
According to Fioretti, the company is able to acquire loans quickly because its underwriting and asset management teams are composed of former GMAC REO professionals who have a vast amount of experience reviewing A&D portfolios.
Since 2010, MREC has purchased assets in 10 states from 30 different financial institutions. The company is capitalized with $1 billion to acquire distressed notes and assets, of which approximately $260 million has been invested in assets comprising over 10,000 lots or homes and 9,000 acres with projected sales exceeding $1.2 billion.
Arthur Nevid, chief investment officer at MREC, said the company plans on announcing an additional REO purchase with it co-developer LStar Land Group in this region. The amount of residential lots being held in the Raleigh-Durham market by MREC will surpass 1,000 when this acquisition is finalized.
“We are very pleased to enter the highly desired Raleigh-Durham market LStar Land Group is headquartered,” Nevid said. “Between the expertise of our local partners and MREC's in-house asset management and underwriting group, we are primed to quickly underwrite and close additional loan portfolios in this region and throughout the country.”
