Massachusetts-based Brookwood Value Partners has purchased a set of residential lots in The Grove planned residential community in Southwest Florida. The deal represents the first by Brookwood in its strategy of acquiring finished residential lots.
The properties, acquired for an undisclosed sum, was purchased from US homebuilder DR Horton. According to a Bloomberg report this week, the Texas-based homebuilder reported a fifth straight quarterly loss with fiscal third-quarter losses narrowing to $399 million, from $824 million a year earlier.
The current market dislocation is creating opportunities to acquire residential lots at prices generating “strong returns” for “patient” investors, Brookwood head Thomas Trkla said in a statement.
The Grove comprises 197 single-family residential lots and 190 twin villa lots located on around 102 acres of land off Homestead Road in Lehigh Acres, Florida. Brookwood acquired 214 finished lots and has agreed to purchase another 140 lots upon completion.
“We believe that the strong demographic trends exhibited in Southwest Florida prior to the housing downturn will reemerge once the current credit crisis eases,” said Brookwood director of acquisitions Thomas Brown. “We are primarily targeting finished lots with planned housing at price points that will appeal to a broad segment of the potential end users, as these properties will be the first in demand once the housing market turns.”
The Massachusetts-based private equity firm is currently negotiating the potential acquisition of seven to ten other US residential lot projects.
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