MREC buys San Diego REO subdivision from BofA, more planned

Charlotte-based Mountain Real Estate Capital has closed its second REO acquisition from Bank of America in the last three months. MREC bought a partially completed subdivision of 17 lots and four completed models in San Diego. The deal closed in August. In June, the firm bought a 1,000-unit active adult project located in Orlando. MREC acquired debt and capital with basis in excess of $500 million from banks and other institutions covering more than 400 separate notes or assets. The firm has closed eight transactions from six financial institutions in the last six months and plans to invest up to $1 billion in bank REO and nonperforming loans over the next two years. “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.” In addition to acquiring troubled assets, MREC also recapitalizes tier one capital for banks, which may facilitate an acquisition by offsetting the effect of REO/NPL capital write-downs, the company said. MREC is also an asset manager and special servicer of residential assets. The firm is mostly comprised of former GMAC REO managers who had been responsible for the management and disposition of more than 32,000 lots and homes valued at more than $2 billion for GMAC-ResCap’s Business Capital Group. Write to Kerry Curry.

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