Mountain Real Estate Capital (MREC) has announced the closing of a new investment with Ocean Atlantic Cos. to acquire and build out Breakwater, a 185-lot community located in Lewes Beach, Del. The transaction represents MREC's first investment in Delaware.
MREC created a joint venture with Ocean Atlantic to execute a note purchase from a financial institution. The note purchase allows Ocean Atlantic to complete development in the community and for Schell Brothers Construction, a private homebuilder in southern Delaware, to construct and sell homes on the remaining lots. The partnership anticipates a three- to four-year investment horizon in which it will develop the remaining lots and contract with Schell Brothers construction to build and sell single-family homes, twin homes and townhomes ranging in size from 2,000 to 4,000 square feet.
MREC is the equity investment arm of the Mountain Real Estate Group; it is headquartered in Charlotte, N.C., and Ocean Atlantic is based in Rehoboth Beach, Del. Terms of the transaction were not disclosed.