Dallas, TX – Former executives from SunCal and Rockpoint Group established CoastOak Group, a Dallas-based firm targeting distressed single-family housing developments. The company plans joint ventures to purchase projects in Phoenix, Las Vegas, Southern California, Florida, and suburban Washington — markets heavily impacted by residential overbuilding.
The firm targets finished and partially finished developments, improved lots, distressed project loans, and recapitalization opportunities for struggling owners. Leadership includes Don Carroll (former SunCal partner) and Greg McGowan (12-year Rockpoint principal overseeing residential land investments).
CoastOak seeks minimum 25% returns with a 3-4 year holding period. The company will serve as operating partner, collecting management fees negotiated per deal with partners including real estate funds, private equity groups, and hedge funds.
Projects typically exceed 200 units, purchased directly from lenders during foreclosure. CoastOak avoids leverage except with assumable financing, completing partial projects sold in phases. Carroll noted residential markets approached price bottoms faster than commercial sectors, and labor-intensive operations discourage institutional competition, supporting superior returns.
The firm employed four additional staff members, primarily from SunCal's Dallas office, with plans to hire additional principals for target markets.
Source: Real Estate Alert