Mountain Real Estate Capital (MREC) has entered into a partnership with Oakwood Homes, Colorado’s largest privately held homebuilders.
The USD100m-plus transaction provides MREC, one of the largest US residential real estate investment firms, with a major market presence in one of the strongest homebuilding markets in the country.
Mountain is providing this new Oakwood Homes partnership with strategic equity capital to accelerate its growth and expand into new markets. This equity capital will drive the homebuilding company's expansion both within Colorado, and in other regions, including its recent entry into Omaha.
“Oakwood has clearly developed a competitive edge in their marketplace and continued to reinvent themselves with superior product and market positions during the downturn. Together, we will be positioned to now take advantage of the growing market opportunities throughout the Midwest and Western markets,” says Peter Fioretti, chairman and chief executive of MREC.
MREC and Oakwood have been in active discussion since June 2012, shortly after the two firms jointly acquired Banning Lewis Ranch, a 2,600-acre, 8,500-lot master planned community in Colorado Springs.
The new partnership will carry the Oakwood Homes brand with Pat Hamill, Oakwood’s founder, continuing as chairman and CEO and general partner of the venture, directing strategy and providing leadership, vision and support as the company executes its expansion and growth plans.
“While capital is essential to homebuilders, success is also based on relationships and industry experience,” says Hamill. “This partnership not only delivers a capital infusion, it sets the stage for us to take advantage of market demand and expansion opportunities with greater flexibility than others in the industry.”