Capital Pacific Real Estate Marks Banner Year

Newport Beach, CA – During a year that saw heightened economic expectations early in 2010 subsequently stall out, and a housing market that experienced the dreaded ‘double-dip’ shortly after the expiration of the federal new-home tax incentives in April, Capital Pacific Real Estate maintained its focus through its various diversified business practices. The results of CPRE’s efforts in 2010 were positive and its management was pleased with how well each of its disciplines executed in an otherwise challenging year.  “At the core, we are a homebuilding company, however we are also entrepreneurial. We realized a couple of years ago that we had the talent and capacity to deploy our expertise in newly evolving areas of our industry”, commented Scott Coler, President, CPRE. “We expanded our award winning sales team into an agency based operation that has excelled at moving institutional level residential REO inventories. As a builder, we have immediately stepped into failed and partially constructed subdivisions and have turned them around. In addition, our long transactional history of property acquisitions and dispositions, including our contract acumen, significantly aided our institutional bank clients with the handling of their large distressed portfolios.  We were very busy with this work in 2010 and expect to carry that momentum into 2011 both for our institutional clients, and for ourselves as we seek new property acquisitions”  Notable retail sales activity last fall included the successful sale-out of completed inventory homes at “The Gallery” in Menifee. A distressed portfolio of new homes owned by Pacific Western Bank, the CPRE sales team closed homes at above market sales-rates and historical pricing. Institutional asset management and dispositions for 2010 exceeded $45mm for various bank clients.

2010 also saw continued homebuilding activity for Capital Pacific Homes with the near close-out of its Vista Del Valle community in Murrieta, and increased starts for its value-oriented estate home community, Calder Ranch, in Menifee.  “Without the confidence of our team to control our costs, or more importantly, sell new homes against foreclosure headwinds, we probably would not build altogether”, said Coler.  “However, we made some smart residential lot purchases and as a result can deliver a tremendous value proposition in a new home that buyers cannot find with REO sales. Under the right set of variables, it can make sense to build and in fact we feel well positioned to build into 2011”.   

In other areas, CPRE both sold and purchased residential finished lots in 2010.  In two separate finished lot subdivision transactions, CPRE sold owned lots to both KB Home and Richmond American Homes.  On the acquisition front, CPRE has added to its inventory by acquiring a portfolio of completed homes and residential lots in the City of Fillmore, northwest of Santa Clarita in a master plan community known as “The Bridges”.  Sales of the completed, ‘move-in’ ready homes are underway now. Newly constructed homes will deliver in 2011. 

For more information about Capital Pacific Real Estate, please go to www.capitalpacificrealestate.com