In 2008, RSF Fund IV and Corona Partners LP entered into a venture with Farallon Capital and Greenfield Acquisition Partners to acquire 8,280 residential lots and 265 uncompleted condominiums from Centex Corporation (NYSE: CTX). The $163 million acquisition, a price equal to 11% of CTX’s cost, was funded entirely with equity. The portfolio comprised 29 assets (residential/land and multifamily) across 11 states: 7 properties on the east coast, 10 on the west coast, and 12 in the mid-America states. Two-thirds of the lots were finished, and the remaining one-third were entitled but not yet developed.
The business plan called for a significant amount of additional capital to develop the lots and build homes and apartments. This multi-step process required active monitoring of development projects, the construction of four product types, re-zoning areas when necessary, and active asset management.
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