Cobalt Homes Announces New Modern Town Homes in Dallas’ Uptown East Neighborhood

Dallas, TX

Cobalt Homes announced the introduction of Camdale Court and Crestfield Place, two unique townhome communities in Dallas’ Uptown East neighborhood. 

“We are excited to introduce our first new townhomes in East Dallas,” said Greg McGowan, Managing Principal of Cobalt. “We love creating places where people can really enjoy life. These townhomes are designed for living and entertaining at home while also providing countless options for dining and activities within a short walk or drive.”

Camdale Court is located off Fitzhugh Avenue and is a modern 12-unit townhome community. Camdale Court offers 3 bedroom / 3.1 bathroom units ranging from 2,096 to 2,380 air-conditioned square feet, all with full-sized two-car garages and large rooftop decks. Camdale Court is a custom design by TKTR Architects.

Crestfield Place is located off Moser Avenue just one block south of Henderson Avenue. Crestfield Place is a unique, modern, five-unit townhome development. These 3 bedroom / 3.1 bathroom homes have 1,959 to 1,989 air-conditioned square feet in addition to 175 square foot private grand balconies, 400+ square foot private rooftop decks and two-car garages. Crestfield place is a one-of-a-kind custom design by AIA award winning architect Josh Nimmo.

Both projects feature high-end finish selections made in concert with interior designer Roz Murphy. They include inspired features designed to make living comfortable and enjoyable, such as touch-sensitive faucets in the kitchen, built-in central vacuum systems, tankless water heaters, and Nest thermostats and cameras in addition to high-end lighting fixtures, hardwood floors, quartz countertops, solid-core doors and Bosch appliances. All of the units offer an optional dumbwaiter elevator which can effortlessly move groceries, luggage and other items between the garage and the living areas.

“In designing our projects, we pay special attention to details that make living easier and enjoyable,” said Don Carroll, Managing Principal. “All of these units have connected indoor and outdoor living areas with amazing views on the rooftop decks. And, we include extra features like the central vacuum system and the optional dumbwaiter to really simplify the process of enjoying these spaces.”

Camdale Court is anticipated to be completed in the fourth quarter of 2017 and Crestfield Place will be completed in early 2018.

About Cobalt Homes
Cobalt Homes is a Dallas-based builder that custom designs its projects in prime and desired locations for buyers seeking an urban lifestyle. Each townhome is specifically designed for its individual location and is custom created by premier local architects. Our developments are unique and conceived with aesthetics and livability in mind. Cobalt Homes is an affiliate of CoastOak Group, a premier national developer that creates distinctive residential, multifamily and mixed-use communities across the United States.

COASTOAK GROUP ANNOUNCES COMPLETION OF LOUDOUN COUNTY COMMUNITIES

Aldie, VA

CoastOak Group announced today the completion of two master-planned communities in Loudoun County, Virginia with 679 residences.  The communities were developed by CoastOak’s local development platform, Woodlawn Development Group, which CoastOak formed with NVR, Inc. and Morgan Stanley Real Estate Investing in June 2011.

Woodlawn completed over $55 million of land development and infrastructure installation in these two communities, on schedule and under budget. All lots have been sold to builders and the final homes are under construction.

“We are very excited to see our residents enjoying these new communities. Our goal was to create distinctive places where families could raise their children and people would connect with their neighbors,” said Greg McGowan, Managing Principal. 

Westridge was acquired in 2011. CoastOak completed a comprehensive revision to the plans for the community and initiated development in 2012. The community features a central park and amenity area that is within easy walking distance for all its residents. Westridge contains 455 townhomes and detached homes built by Ryan Homes.

Dawson’s Corner was acquired and development was initiated in 2011. Dawson’s Corner is a luxury community featuring larger lots with 224 homes built by NV Homes and Ryan Homes.

“We are very pleased to see vision become reality as families enjoy these completed communities,” said Don Carroll, Managing Principal. “We are very proud of the Woodlawn team’s performance throughout the planning and development process, and we are excited to see the success of our builders and partners in these projects.”

Woodlawn is one of the most active residential developers in the Washington, DC metropolitan area with over $250 million of community development completed since 2011. Woodlawn is continuing to develop communities with over 2,000 lots in Prince Georges County, Maryland.

About CoastOak
CoastOak Group is a real estate development and investment management company that creates and operates distinctive residential and mixed-use communities across the United States. CoastOak currently operates communities with over 15,000 lots in ten distinct markets throughout the United States.

Guide to Buying in the Village of Muttontown

Muttontown, NY

Home to Nassau County’s largest natural area — the 550-acre Muttontown Preserve — the village of Muttontown is “an exclusive area with beautiful properties and estates,” says Maria Babaev of Douglas Elliman Real Estate.

“It’s a special area,” adds Michelle N. Cohen of Laffey Fine Homes, noting residents have easy access to highways, shops, services and eateries in Syosset and Hicksville.

Bucolic neighborhoods feature manicured properties with homes that come in a variety of sizes and architectural styles. Zoning stipulates lots of a half-acre, one acre, three acres and five acres. While some original estates remain, many properties have been subdivided. “You can find old world and new world,” Cohen says.

Stone Hill at Muttontown — a gated community on the former B.K. Stevens estate, which will have 80 homes on 148 wooded acres — is about 75 percent sold, says Roberta Feuerstein of Douglas Elliman Real Estate. In the final phase, the community’s largest homes are being built on one-plus- and two-plus-acre lots, and are priced between $3 million and $6 million, Feuerstein says. Parcels — priced between $1.2 million and $1.8 million — are available to those who want to bring in a builder. Monthly homeowner association fees range from $950 to $1,200.

In 2011, Muttontown founded its own police department after its contract expired with the Old Brookville Police Department, which protected the village for 62 years.

SALES PRICES: From Feb. 1, 2013, to March 10, 2014, there were 37 sales with a median price of $1.250 million, according to Multiple Listing Service of Long Island data. The low price was $851,286, and the high was $7 million. From Feb. 1, 2012, to March 10, 2013, there were 30 sales. The median price was $1.499 million, with a low of $930,000 and a high of $4.150 million

ATTRACTIONS: Muttontown Preserve; Chelsea mansion; Hoffman Center Nature Preserve and Wildlife Sanctuary

MORE MUTTONTOWN STATS
Town: Oyster Bay
Area: 6.1 square miles
ZIP codes: 11791; 11732; 11545; 11753
Population: 3,512
Median age: 44.7
Median household income: $221,429
Median home value: $1.321 million*
LIRR time to NYC: From Syosset, 44 minutes to 59 minutes at peak
Monthly ticket: $276
School districts: Most students attend Jericho and Syosset; others go to Oyster Bay-East Norwich and Locust Valley
Sources: 2010 Census; mlsli.com; LIRR;
*Based on sales in the past six months, according to MLSLI

Source: NewsDay

Greenbelt’s ‘Gold Mine’ Residential Site

Greenbelt, MD

Woodlawn Development Group—a JV between NVR Homes, Dallas-based CoastOak Group, and Morgan Stanley Real Estate—has purchased an 87-acre development site adjacent to Greenbelt Metro for $27M, and the partnership plans to build up to 1,000 residential units on the site. Roseview Group partner Stephen Corridan, who spent two years renegotiating development agreements and entitlements for the seller in the deal (an undisclosed bank), tells us it’s a rare opportunity for the buyers, since 90% of the site’s infrastructure is already in place, allowing Woodlawn to break ground within six to nine months. He also says competition was fierce, as both local and national developers expressed interest in what he calls “a gold mine” development. (They did not take our idea of forcing bidders to compete in physical challenges to see who won the site.)

Source: Real Estate BisNow

CoastOak Group Acquires Greenbelt Station

Dallas, TX

CoastOak Group announced today the acquisition of Greenbelt Station, a premier transit-oriented residential community planned for almost 800 townhomes, condominiums and apartments, located inside the I-495 Capital Beltway in Greenbelt, MD.  The project will be managed by CoastOak’s local development platform, Woodlawn Development Group, which CoastOak formed with NVR, Inc. and Morgan Stanley Real Estate Investing (MSREI) in June 2011.

Woodlawn will immediately begin to complete development of the Greenbelt Station community, which has been stalled since 2008, to provide a range of quality housing alternatives within walking distance of the Greenbelt Metro and MARC station with convenient access to the Capital Beltway, the Baltimore-Washington Parkway and I-95.  The community is adjacent to the Greenbelt Metro Station development site that was recently endorsed by Prince Georges County officials for the new FBI headquarters.  New townhome sales are scheduled to commence later this year led by Ryan Homes and NV Homes. 

“We are very excited to revive Greenbelt Station.  Its proximity to the Metro and MARC will provide residents with superior transportation access, and NV Homes and Ryan Homes are great partners in our effort to create a distinctive community,” said Don Carroll, Managing Principal of CoastOak Group. “This acquisition is our third major collaboration with NVR and Morgan Stanley Real Estate, and we are very excited to continue to grow our partnership.”

Through the Woodlawn platform, CoastOak has become one of the most active developers in the Washington, DC metropolitan area with approximately 1,800 residential lots under development in Loudoun County, VA along with over 1,500 lots in Prince Georges County, MD.

CoastOak Group Acquires Oak Creek Club

Dallas, TX

CoastOak Group announced today the acquisition of the Oak Creek Club, located in Upper Marlboro, MD, and the only gated golf course community in Prince George’s County.  The project will be managed by CoastOak’s local development platform, Woodlawn Development Group, which CoastOak formed with NVR, Inc. and Morgan Stanley Real Estate Investing (MSREI) in June 2011.

With the support and resources of new ownership, CoastOak and Woodlawn will immediately begin a significant improvement program to re-establish Oak Creek Club as a top golf community in the Washington D.C. metropolitan area.  The new ownership team will make substantial investments across the 923 acres and address various deferred maintenance items.  Toll Golf will own and manage the golf course and will run an equally ambitious renovation process, including the construction of a new state-of-the-art, service-oriented golf club house. 

New home sales are scheduled to commence later this year led by Ryan Homes, NV Homes and Toll Brothers.  Upon completion, the community will contain over 1,100 new homes.

“We are very excited to restore Oak Creek Club as one of the premier places to live in Prince George’s County.  Our partners NV Homes, Ryan Homes and Toll Brothers will re-launch sales in the near future, and I expect demand to be high for this terrifically-located, amenity-rich gated golf community,” said Josh Nichols, Principal of CoastOak Group. “This was a complicated transaction involving many stakeholders, and we appreciate the support of everyone who helped bring this to fruition.”

Through the Woodlawn platform, CoastOak is one of the most active developers in the Washington, D.C. metropolitan area with approximately 1,800 residential lots under development in Loudoun County, Va. along with over 1,000 lots in Prince Georges County.

NVHomes Announces Grand Opening of New Luxury Single Family Homes at Dawson’s Corner in Chantilly, VA

Chantilly, VA

PRNewswire/ – NVR, Inc. (NYSE: NVR), one of the nation’s largest homebuilding and mortgage banking companies, announces the Grand Opening of Dawson’s Corner, a new community of luxury single family homes in Chantilly, Virginia built by NVR’s luxury division, NVHomes. These luxury single family homes are priced from the upper $570′s.

Dawson’s Corner is NVHomes’ newest community, offering the largest homesites in Loudoun County. The community combines a prime location just off Route 50 with today’s most desired features – more space, inside and out. These beautiful homesites range from 1/3-acre to 1/2-acre, with plenty of room for outdoor living and playing.

The new NVHomes at Dawson’s Corner have all the room any homeowner needs inside as well as outside, with interiors that can exceed 8,500 square feet. The homes are simply astounding in size, with up to 8 bedrooms and up to 8 baths, and a list of included features such as a 2-car side entry garage, hardwood flooring in the foyer, kitchen and powder room, plus NVHomes’ Signature Kitchen, with granite countertops, upgraded Timberlake®cabinetry, hardwood flooring, stainless steel GE® appliances and a unique European-inspired range hood, cleverly hidden from view by furniture-grade cabinetry.

NVHomes at Dawson’s Corner are fully ENERGY STAR® Qualified, yielding monthly utility savings up to 30% more than standard homes, according to the EPA. All NVHomes also carry 10-year structural warranties and are independently inspected for quality by a third-party inspector. 

For further information about NVHomes’ Dawson’s Corner community in Chantilly, Virginia, please phone (703) 327-7381 or visit NVHomes.com/Dawsons.

About NVR
NVR, Inc. operates in two business segments: homebuilding and mortgage banking. The homebuilding unit sells and builds homes under the NVHomes, Ryan Homes, Rymarc Homes and Fox Ridge Homes trade names, and operates in 27 metropolitan areas in 15 states. For more information about NVR, Inc. and its brands, see www.nvrinc.com,  www.ryanhomes.com,  www.nvhomes.com,  www.rymarc.com  and  www.foxridgehomes.com.

The information in this press release is subject to change and the pricing and other features of any NVR-built home will be established at the time of sale. ENERGY STAR® is a registered trademark owned by the U.S. government.

Source: NVR, Inc.

Ryan Homes Opens New Stanhope Single-Family Model Home for Tours at Virginia Manor Community in Aldie, VA

Aldie, VA

PRNewswire via COMTEX/ – NVR, Inc. (NYSE: NVR), one of the nation’s largest homebuilding and mortgage banking companies, has recently opened a new Stanhope single-family model home at their new Virginia Manor community in Aldie, VA. Built by NVR’s Ryan Homes division, Virginia Manor is located along the Route 50 corridor in Loudoun County, approximately 5 miles from the Fairfax County line. Shopping and dining choices, regional parks and Loudoun County schools surround the community. Prices at Virginia Manor start in the upper $460′s.

Ryan Homes at Virginia Manor are designed with Craftsman style exteriors, providing a fresh alternative to the Colonial and Federal architecture that defines most other Northern Virginia communities. Virginia Manor’s spacious single-family homes feature up to 4 bedrooms and up to 4 1/2 baths, with 2-car garages. Their list of included features exceeds any homes from other builders in the surrounding area. Partial stone or brick exteriors, hardwood flooring in the powder room and entry foyer, 6 x 6 ceramic-tiled baths, G.E.® appliances and upgraded Maple Timberlake® cabinetry, arched openings throughout, upstairs hallway niche and tray ceilings in the foyer and a hallway to the owner’s suite are all included in the base price. The community also offers many of Ryan Homes’ most popular design options, as showcased in the Stanhope model home’s morning room, gourmet kitchen upgrade, family room gas fireplace, expanded owner’s suite with a spa-style bath, a spacious sitting room off the bedroom and a 3rd upstairs bathroom.

Like all new Ryan Homes, Virginia Manor’s single-family homes are fully ENERGY STAR® Qualified, yielding monthly utility bills up to 30% lower than standard homes, according to the EPA. All Ryan Homes also carry 10-year structural warranties and are independently inspected for quality by a third-party inspector.

For further information about Ryan Homes’ Craftsman style new single family homes at Virginia Manor in Aldie, and about the community’s new Stanhope model home, please phone (703) 231-2603.

About NVR
NVR, Inc. operates in two business segments: homebuilding and mortgage banking. The homebuilding unit sells and builds homes under the Ryan Homes, NVHomes, Rymarc Homes and Fox Ridge Homes trade names, and operates in 27 metropolitan areas in 15 states. For more information about NVR, Inc. and its brands, see www.nvrinc.com,  www.ryanhomes.com,  www.nvhomes.com,  www.foxridgehomes.com and  www.rymarc.com.

The information in this press release is subject to change and the pricing and other features of any NVR-built homes will be established at the time of sale. ENERGY STAR is a registered trademark owned by the U.S. government.

Source: NVR, Inc.

NVR Forms Joint Venture With Morgan Stanley, Buys 5,600 D.C.-Area Lots

Dallas, TX

Morgan Stanley Real Estate Investing on Tuesday said it had formed a joint venture with NVR Inc. (NYSE:NVR) and a Texas developer called CoastOak Group to acquire a land portfolio comprised of approximately 5,600 fully entitled and mostly undeveloped residential lots in nine separate master planned communities located in the Washington, D.C. metropolitan area.

No purchase price or ownership positions among the partners were announced, though MSREI said in a press release that CoastOak Group will manage the day-to-day operations of the portfolio on behalf of the MSREI/NVR venture. NVR already had options on much of the portfolio.

In a research alert to investors, Stephen East at Ticonderoga Securities said he believed the JV paid approximately $83.5M, with the majority of the lots in Loudoun county, Virginia. “After factoring out the finished lots, if the $83.5M is the total, we believe the JV paid about $70K to $75K per acre,” East wrote. “Throw in additional development costs that could be in the ballpark of $100K per lot and it is obvious that NVR and its partners have made a very sizable investment.”

“We are delighted to have completed the acquisition of this strategic land portfolio in partnership with NVR, a best-in-class homebuilder,” said John Klopp, co-CEO and co-chief investment officer of MSREI. “The purchase provides our partnership with a sizeable portfolio of well-located residential lots in the Washington, D.C. area, one of the strongest and most supply-constrained residential markets in the United States.”

For NVR, traditionally a merchant builder with light land positions, the deal marks the second significant land deal it has made recently. In his note, East wrote, “Regardless of the ultimate development costs, this pales in comparison to its 2010 D.C. metro deal in which it bought 890 paper (raw) lots for $78M.”

NVR has neither commented nor filed with the SEC concerning the deal.

East was wary of the move, He wrote that, in his view, “NVR has effectively taken a significant amount of land that they had already optioned with little risk to the balance sheet, and taken ownership of [it], thus introducing land risk into the business model. This is the second significant land deal NVR has done recently and while we doubt NVR is changing its stripes, it points to builders’ needs to access well-located lots regardless of ownership structure. It also highlights no builder is immune to land risk.”

Source: Builder Online

Morgan Stanley Real Estate Investing and NVR Acquire Residential Land Portfolio in Washington, D.C. Metropolitan Area

New York, NY

Morgan Stanley Real Estate Investing (MSREI) announced today the acquisition of a land portfolio comprised of approximately 5,600 fully entitled residential lots in nine separate master planned communities located in the Washington, D.C. metropolitan area.  The portfolio was acquired in partnership with NVR, Inc. (NVR).  CoastOak Group will manage the day-to-day operations of the portfolio on behalf of the MSREI/NVR venture.

“We are delighted to have completed the acquisition of this strategic land portfolio in partnership with NVR, a best-in-class homebuilder,” said John Klopp, Co-Chief Executive Officer and Co-Chief Investment Officer of MSREI.  “The purchase provides our partnership with a sizeable portfolio of well-located residential lots in the Washington, D.C. area, one of the strongest and most supply-constrained residential markets in the United States.”

About Morgan Stanley Real Estate Investing
Morgan Stanley Real Estate Investing (MSREI) is the global real estate investment management arm of Morgan Stanley.  Established in the early 1990s, MSREI has been one of the most active real estate investors for two decades, acquiring over $175 billion of assets in 36 countries.  MSREI leverages the expertise, relationships and franchise of Morgan Stanley with dedicated real estate investing professionals located in 15 offices around the world providing acquisition, finance and asset management services.  MSREI manages opportunistic and core investment strategies on behalf of its clients, including some of the largest pension funds, sovereign wealth funds and high net worth investors worldwide.

About Morgan Stanley
Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services. The Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals from more than 1,300 offices in 42 countries. For further information about Morgan Stanley, please visit www.morganstanley.com.

About NVR
NVR, Inc. operates in two business segments: homebuilding and mortgage banking. The homebuilding unit sells and builds homes under the Ryan Homes, NVHomes, Rymarc Homes and Fox Ridge Homes trade names, and operates in twenty-five metropolitan areas in fourteen states. For more information about NVR, Inc. and its brands, see www.nvrinc.com, www.ryanhomes.com, www.nvhomes.com, www.foxridgehomes.com, and www.rymarc.com.

About CoastOak
CoastOak Group is a real estate development company that creates and operates unique and market-leading residential and mixed-use communities.  CoastOak currently operates communities with over 15,000 lots in ten distinct markets throughout the United States.

Source: Morgan Stanley

NVHomes Announces Grand Opening of New Single Family Homes at Virginia Manor in Aldie, VA

Aldie, VA

PRNewswire/ – NVR, Inc. (NYSE: NVR), one of the nation’s largest homebuilding and mortgage banking companies, announces the construction of new single family homes in Virginia Manor, their new community in Aldie, VA. Built by NVR’s luxury home division, NVHomes, this new community is an enclave of estate-style homes on spacious wooded homesites, with home prices starting from the upper $520′s.

NVHomes at Virginia Manor are all set within a wooded area on spacious homesites.  With plenty of open community green space interlaced with an extensive trail network, Virginia Manor is filled and surrounded by accessible natural space.  Located at the junction of Braddock Road and Gum Spring Road, the community is surrounded by commuter corridors like Route 50, the Loudoun County Parkway and the Dulles Toll Road.  Virginia Manor is also close to shopping, dining and other daily needs.

The new homes at Virginia Manor are available with up to 5 bedrooms and up to 4 full baths, each including a 2-car garage. Every Virginia Manor home includes NV’s Signature Kitchen design, with stainless steel GE® appliances, granite countertops, 42-inch Timberlake® cabinets, hardwood floors, and a European-inspired range hood, hidden from view behind furniture grade cabinetry. These new homes also include granite countertops in the owner’s bath and hardwood floors in the foyer and main level powder room. There are also many customization options available, such as morning rooms, finished lower level recreation rooms, sitting rooms in the owner’s suite and more.

These new NVHomes at Virginia Manor are fully ENERGY STAR® Qualified, yielding monthly utility savings up to 30% more than standard homes, according to the EPA. All NVHomes also carry 10-year structural warranties and are independently inspected for quality by a third-party inspector. 

For further information about NVHomes’ Virginia Manor community, now selling in Aldie, VA, please phone (703) 327-7381.

About NVR
NVR, Inc. operates in two business segments: homebuilding and mortgage banking. The homebuilding unit sells and builds homes under the Ryan Homes, NVHomes, Rymarc Homes and Fox Ridge Homes trade names, and operates in 27 metropolitan areas in 15 states. For more information about NVR, Inc. and its brands, see www.nvrinc.com,  www.ryanhomes.com,  www.nvhomes.com,  www.foxridgehomes.com and  www.rymarc.com.

The information in this press release is subject to change and the pricing and other features of any NVR-built home will be established at the time of sale. ENERGY STAR® is a registered trademark owned by the U.S. government.

Source: NVR, Inc.

CoastOak, Centerbridge and Mount Kellett Acquire Custom Home Development in Muttontown

Dallas, TX

Funds managed by Centerbridge Partners and Mount Kellett Capital Management in partnership with CoastOak Group have acquired Stone Hill at Muttontown from Residential Capital Funding Corporation (“ResCap”). Stone Hill at Muttontown is an 80 lot luxury custom home development located in Long Island’s Gold Coast. The partnership has engaged Bernard Janowitz, Stone Hill’s original developer and an experienced Long Island custom homebuilder to manage the onsite property operations and build custom homes for future residents.

“Stone Hill is a terrific and beautiful community located in one of New York’s premier locations,” said Greg McGowan, Managing Principal of CoastOak Group. “We are very excited to partner with Centerbridge and Mount Kellett as well as Bernard Janowitz given his history with the community and proven excellence as a custom homebuilder.”

The partnership is now moving forward with restarting the home construction and lot sales that slowed when ResCap, the previous lender, took control of the property.

About CoastOak
CoastOak Group is a real estate development company that creates and operates unique and market-leading residential and mixed-use communities. CoastOak currently operates communities with over 10,000 lots in ten distinct markets throughout the United States.

CoastOak Group Assumes Management of LandCap Partners

Dallas, TX

CoastOak Group has been engaged as the development manager and operator for LandCap Partners, a partnership between Goldman Sachs & Co. through its Whitehall Street Real Estate Funds and Northstar Realty Finance Corp.  LandCap owns a portfolio of residential land investments located in Denver, Chicago, Orlando and Ocala, FL, Atlanta and Spartanburg, SC.

“We are very excited to be working with Goldman Sachs and Northstar,” said Don Carroll, Managing Principal of CoastOak. “We’re looking forward to helping them maximize the value of their investment while also bringing new life to these communities.”

LandCap’s portfolio was acquired in 2007 and 2008.  CoastOak will engage in re-entitlement efforts, community enhancement and maintenance, and launching new homebuilder programs within the communities.

Venture Targets Distressed Housing

Dallas, TX

Former executives of SunCal and Rockpoint Group have formed a company that will buy distressed single-family housing developments.

The Dallas-based firm, CoastOak Group, plans to form a series of joint ventures that will buy projects in the markets hit hardest by residential overbuilding: Phoenix, Las Vegas, Southern California, Florida and suburban Washington.

CoastOak will primarily target finished and partially finished developments and improved lots. It will also consider buying loans on distressed projects and will recapitalize cash-strapped owners of older developments.

CoastOak is headed by Don Carroll and Greg McGowan. Carroll most recently was a partner at SunCal, a development firm based in Irvine, Calif. He spent a year at the company, leaving after it was forced into bankruptcy when its major lender, Lehman Brothers, imploded in September. Before that he had stints at Archon Capital and Lone Star Funds.

McGowan spent the past 12 years as a principal at Rockpoint and its predecessor, Westbrook Partners. Most recently, he oversaw Rockpoint’s residential land investments.

CoastOak is seeking returns of at least 25% and anticipates a 3- to 4-year hold period.

It will act as operating partner of the joint ventures and will collect management fees. Those fees and the profit-split structure will be negotiated on a deal-by-deal basis with its partners. Carroll said he has been talking with more than a dozen potential joint-venture partners, including real estate investment funds, private equity groups and hedge funds.

Carroll anticipates that acquired projects will generally exceed 200 units. The group expects to buy directly from lenders that have already taken over the projects or have begun foreclosure proceedings. CoastOak will not use leverage, unless there is assumable financing. CoastOak will finish partially completed projects and sell them in phases.

Because the single-family residential market has been battered longer than the commercial sector, residential projects are closer to hitting price bottoms, making CoastOak’s timing attractive, Carroll said. The labor-intensive nature of operating and turning around residential developments has scared off many institutional players, which should contribute to outsized returns, he said.

CoastOak has four other staffers, including three of SunCal’s former Dallas executives. Carroll expects to hire several more principals with expertise in the local markets the firm is eyeing for investments.

Source: Real Estate Alert