Mountain Real Estate Capital Closes on Another Bank REO Acquisition from Bank of America
Charlotte, NC – September 27, 2010 – (RealEstateRama) — Charlotte-based Mountain Real Estate Capital (MREC) continues the success of its bank REO/NPL acquisition platform by closing its second acquisition from Bank of America in the last three months. The first is a 1,000-unit active adult project located in the U.S. 27 corridor of Orlando, which closed in June. The second is a San Diego partially completed subdivision of 17 lots and four completed models, which recently closed in August.
MREC has recently acquired debt and capital with basis in excess of $500 million from banks and other institutions covering over 400 separate notes or assets. The firm has successfully closed eight transactions from six financial institutions in the last six months. MREC’s track record of successful closings has generated interest from banks like Bank of America, allowing them to dispose of unwanted larger assets and portfolios.
MREC is organized to invest $1 billion in bank REO/NPL over the next two years. With a nationwide team of seasoned professionals providing quick underwriting, MREC has closed each of its REO/NPL transactions within 30 days of an agreement.
“As our bank asset acquisition program expands, we expect that we will benefit from more and more repeat business,” said Peter Fioretti, chief executive officer of MREC. “Over the course of the past few months, we were very pleased to close two major portfolio transactions with Synovus Bank and now a second transaction with Bank of America. Our program has the flexibility to consider portfolio acquisitions, as well as larger individual projects.”
MREC’s bank portfolio acquisition platform is headed by its chief investment officer, Arthur Nevid, who is located in the company’s Charlotte headquarters, along with Keith Alexander who is director of portfolio underwriting. The national origination team consists of Tom Mahathirath in the Atlanta office and Eric Bialke in Minneapolis, with Lance Franklin in Los Angeles and Tom Orradre in Newport Beach focusing on west coast investments. The homebuilder joint venture program is led by Joel Kaul, managing director.
“Part of our success has to do with our ability to offer a menu of solutions to banks and other financial institutions,” explains Mahathirath. “Not only do we purchase troubled assets, but we also recapitalize tier one capital for banks which may facilitate an acquisition by offsetting the effect of NPL/REO capital write-downs. Additionally, we are also a leading asset manager and special servicer of residential assets. Most of our group is comprised of former GMAC REO managers who had been responsible for the management and disposition of over 32,000 lots and homes valued at over $2 billion for GMAC-ResCap’s Business Capital Group, and currently manage approximately $1 billion of various residential and commercial assets for MREC. As a result, we have close relationships with most major national homebuilders who provide us with unique market insights and ability to create structured sales with homebuilders.”
