The housing market may still be treading water, but some companies are placing bets that the Wilmington region will eventually make a strong comeback.
Last December, two groups that specialize in acquiring distressed properties – Raleigh-based L Star Management and Charlotte’s Mountain Real Estate Capital (MREC) – purchased TidalWalk, a 197-lot development on the Intracoastal Waterway located across from the southern tip of Masonboro Island.
TidalWalk, where work began in 2007, stalled out as the housing market imploded. But then L Star and MREC bought the development from a bank syndicate led by Southern Community Bank & Trust with a note of approximately $31 million. Since the purchase, work has been under way to prepare the community for new residents.
MREC and L Star have significant investments in North Carolina and across the nation. Since 2010, MREC has committed more than $230 million on 20 developments nationwide. Their investments include upwards of 10,000 lots and more than 7,600 acres of developable land. L Star, a real estate investment firm specializing in distressed debt has purchased more than $160 million in Notes and Real Estate Owned (REO) properties and more than 7,500 lots in the last two years.
In addition to TidalWalk, the pair teamed up to purchase Kellswater Bridge, a subdivision in Kannapolis, N.C., and are bidding on other projects in the state.
The two companies have been targeting the Wilmington market for awhile, specifically keeping tabs on TidalWalk for over a year, said MREC Chief Investment Officer Arthur Nevid.
“We believe in [Wilmington’s] long-term fundamentals in terms of population and economic growth. We and L Star are long-term investors and developers, so if you can buy the best property in a growing market for a decent price – do it,” said Nevid.
TidalWalk already had many pieces of infrastructure in place and and L Star and MREC have plans in motion to improve infrastructure and community amenities.
“We are adding a gate to make TidalWalk a private and secure community,” Nevid said. “We are also expanding some sewer lines, realigning some lot designs to make them more appealing to the market, and we are beginning to complete the amenity package which will include a pool, clubhouse, walking trails, community pier, boardwalk, beach, private island for community functions, and more.”
Some amenities, such as the clubhouse, were nearly complete when the groups purchased the community in December. According to Nevid, they are considering moving the clubhouse or building another.
In their news release announcing the purchase, the groups said they plan to “re-establish TidalWalk as the premier coastal community in Wilmington,” something Nevid believes will be easy.
“We believe Tidal Walk already is the premier coastal community,” he said. “We are investing a significant amount of capital and effort to reopen it and improve upon a very solid foundation. Our amenity package will be second to none. Our waterfront and water view homes, with our own private beach and island, cannot be duplicated.”
Jim Wallace, chief executive officer of Intracoastal Realty, said more and more investment firms are becoming distressed property specialists.
“When these companies see a good deal – and there are plenty out there – there’s a lot of upside to purchasing a property they see potential in,” Wallace said.
Locally, similar groups have purchased Porters Crossing and Olde Pointe Golf and Country Club.
Currently, MREC and L Star are working to ink a deal with a prominent but undisclosed local builder to build on many of the lots in TidalWalk.
Of the original 197 lots, only 12 were sold when the group purchased the property, so builders could have their hands full when the real estate market turns around.
MREC and L Star are prepared for the turnaround, bringing on Realty World Cape Fear as the exclusive firm to sell TidalWalk.
“We’re excited and honored to be the exclusive firm to sell these water view and waterfront lots in TidalWalk,” said Harold Chappell, owner of Realty World Cape Fear.
Realty World Cape Fear was chosen based on its analysis and market planning for the purchase, Nevid said.
“We’re an equity buyer, not encumbering any of our acquisitions with debt,” said Nevid. “As such, builders and homebuyers draw extra comfort in knowing that they are entering into a secure financial situation with a well-heeled developer/owner in for the long haul and committed to invest the necessary capital to create the premier project in the market.”
Conservation Group Signs $8M Deal To Buy The Point On Topsail Island
Audrey Elsberry
-
Mar 26, 2024
|
|
National Organization Bestows Top Award On Cape Fear Professional Women In Building
Staff Reports
-
Mar 26, 2024
|
|
Engineering Firm Hires Four Employees
Staff Reports
-
Mar 26, 2024
|
|
N.C. Ports Officials React To Baltimore Bridge Collapse
Audrey Elsberry
-
Mar 26, 2024
|
|
NCino's Fourth-quarter Earnings Signal Rebound From Liquidity Crisis
Audrey Elsberry
-
Mar 27, 2024
|
Pender County Realtors recently shared updates about the coastal market at an event hosted by the Wilmington-Cape Fear Home Builders Associa...
Polyhose manufactures and fabricates hose protection, paint hose assemblies and rubber hydraulic assemblies from its Pender County facility....
Jack Fleming, owner of Socialry Marketing & Scourz and emcee for 1 Million Cups Wilmington, shares his media and tech picks....
The 2024 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.