Brookwood Financial Partners, L.P. Continues its Lot Acquisition Strategy with the Purchase of Calusa Creek

Brookwood Financial Partners, L.P. announced that its affiliate, Brookwood Value Partners, LLC, has made its second purchase of residential lots in Southwest Florida. Brookwood closed on the acquisition of 106 single-family lots, 118 townhome lots and one commercial lot in Calusa Creek, a planned residential community in Punta Gorda, Florida. In August of 2008, Brookwood purchased 214 residential lots, and contracted to purchase another 140 lots once they are finished, in The Grove, which is located in Lehigh Acres, Florida.

Brookwood is purchasing Calusa Creek at a time when the flood of negative sentiment about the housing sector has created significant opportunities to purchase assets at a discount to intrinsic value. Brookwood is negotiating primarily with national homebuilders that desire to enhance liquidity. Brookwood purchased Calusa Creek and The Grove from affiliates of Beazer Homes USA, Inc. and D.R. Horton, Inc., respectively.

“Due to the combination of highly-motivated sellers intent on reducing the inventory on their books and the lack of qualified buyers in the market, we believe that the pricing discounts on residential lots will result in strong returns for investors with capital and discipline,” states Thomas W. Brown, Director of Acquisitions for Brookwood. “Our strategy does not rest on simply purchasing lots at a discount to replacement cost. You have to delve deeply into the local market and the type of product that will be the most in demand once housing comes back. We have spent the last year or so studying the residential sector in Southwest Florida and are seeing those efforts result in the purchase of lots that are well-positioned to sell as markets recover,” he continued.

Randy Thibaut, President of Land Solutions, Inc., represented Brookwood in the transaction.

Brookwood is a Massachusetts-based private equity firm that acquires real estate and invests in private companies. Since 1993, Brookwood has acquired, in addition to the residential lots, 60 properties totaling approximately 8.1 million square feet of office, retail and research & development space as well as 143 hotel rooms, 138 condominium units and 572 apartments units. Brookwood has acquired real estate assets throughout the United States including Arizona, California, Colorado, Florida, Georgia, Maine, Maryland, Massachusetts, New Jersey, North Carolina, Rhode Island, Texas, and Virginia. In addition, Brookwood has invested in private companies in the wireless telecommunications, restaurant, software and outsourcing industries. Brookwood has raised over $386 million in equity to acquire assets with a realized and unrealized value of approximately $1.1 billion.