Torrey Highlands Housing Development Purchased
Mountain Real Estate Capital has acquired the Fairbanks Country Villas development in San Diego in a joint venture with Davidson Communities, LLC.
Fairbanks Country Villas is a 92.7-acre parcel consisting of 85 single-family detached residential lots in the Torrey Highlands sub-market, one of the best performing sub-markets in San Diego County, according to a Business Wire release this week. Currently, five of the top nine selling subdivisions in San Diego County are located in the Torrey Highlands sub-market along state Route 56. In addition, the project is in close proximity to the region’s top employers and is within the Poway Unified School District. The transaction closed Jan. 26.
“Fairbanks Country Villas represents a great investment opportunity and allows MREC to continue to grow its platform in San Diego with Davidson Communities,” stated MREC Chief Executive Officer Peter Fioretti. “We have been pursuing this acquisition for several months and are very excited to add this as our second project with the Davidson team. The Davidson team did a great job solving some challenging site development risks to make this project work. Their experience and track record in this market was a key factor in closing this transaction.”
MREC and Davidson successfully closed on The Sentinels at Del Sur in San Diego in August 2010.
“Davidson Communities has been building homes in the Carmel Valley corridor for nearly 30 years, and we believe this is a great piece of land,” said Bill Davidson, president of Davidson Communities. “We’re confident that the strength of our partnership with Mountain will allow us to discover similar opportunities as the Southern California market continue its recovery.”
Winner of an unprecedented 14 Grand SAM Awards — the most prestigious design award given by the San Diego Building Industry Association’s Sales & Marketing Council — Davidson will update existing architectural plans at Fairbanks Country Villas to emphasize the unique character of the surrounding community and expects to open models late this year.
Tom Orradre, MREC senior director, added, “We are thrilled to be investing in the Fairbanks project with Davidson Communities and know there will be strong demand for homes in this community. This investment further strengthens our relationship with Davidson and continues to grow MREC’s presence in Southern California. We look forward to many more acquisitions with the Davidson team.”
MREC continues to emerge as a leading provider of equity capital to home-builders and residential land developers. Over the past 12 months, MREC has formed over 15 partnerships with private home-builders, acquired over 7,800 lots and committed over $155 million to these joint ventures.
MREC’s home-builder joint venture program is led by Managing Director Joel Kaul in Minneapolis. “We are very committed to providing capital to builders for well located projects in California and in other top housing markets,” commented Kaul. MREC’s investment team has additional offices in Atlanta, Charlotte, N.C., Los Angeles, Newport Beach, Calif., and Washington D.C.
This represents the second acquisition made by the MREC/Davidson partnership in San Diego. The transaction value cannot be disclosed.