The land is likely to be developed in multiple phases, providing distributions to investors as the builder sells homes/iStockby Kudakwashe Muzoriwa
Walton Global Holdings, a real estate investment and land asset company with $3.8 billion under management and administration, has acquired the 245-acre Lee Farms property located at 4300 Wilson Ave. in Loveland, Colorado.
The real estate firm stated that the pre-developed land is slated for a single-family residential master-planned community of approximately 900 units, offering a variety of sizes and types of homesites. The property was acquired from The True Life Companies and the Lee Family
Walton has also secured interest from a top publicly traded homebuilder with plans to begin the development of the land in 2020. Negotiations are underway with an Exit Focused Letter of Intent that affords the builder a first right of refusal for a phased procurement of the property.
Barry Dluzen, Senior Vice President--Land of Walton Global Holdings, said, “The benefits of working with national builders through these Exit Focused Agreements by holding land for future development, is opening up tremendous opportunities for Walton in all markets where we research and acquire land.”
The land is likely to be developed in multiple phases, providing distributions to investors as the builder sells homes.
Walton’s approach is an innovative response to secular shifts in the land development industry, which is increasingly challenged to finance the acquisition with debt.
Recently, the property developer launched its first Builder Option Land Development fund (the BOLD Fund). The Bold Fund provides homebuilders with a land acquisition opportunity to work alongside an international real estate investment and asset management company for securing a land pipeline with a minor upfront capital contribution.