Ocean Atlantic, real estate investor team up to develop Lewes community

174
Advertisement

 breakwaterMountain Estate Capital (MREC) announced a new investment with Ocean Atlantic Companies of Rehoboth Beach to acquire and build out Breakwater, a 185-lot community in Lewes Beach, Del.

The transaction represents MREC’s first investment in Delaware and first with Ocean Atlantic Companies and Schell Brothers Construction. Terms of the transaction were not disclosed.

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 to sell and construct homes on the remaining lots.

The partnership anticipates a three- to four-year horizon with Schell Brothers to build and sell single family homes, twin homes, and townhomes ranging in size from 2,000 to 4,000 square feet.

Ocean Atlantic Companies President Preston Schell, states, “Ocean Atlantic and Schell Brothers are excited to be working with Mountain Real Estate Capital on the completion of the Breakwater community. MREC has been great to work with as their principals keenly understand the complexities, challenges and opportunities inherent in residential development. We are already underwriting two more opportunities with Mountain, and feel that with their financial backing, Ocean Atlantic and Schell Brothers can continue to grow at a market-dictated pace rather than a pace dictated by our own internal cash flow and financing capabilities.”

Advertisement

MREC is headquartered in Charlotte, N.C., with the homebuilder joint venture program based out of its Minneapolis office. Since 2010, MREC has acquired over 21,000 lots/homes and another 10,000 developable acres with approximately $350 million committed in 14 states.

Ocean Atlantic Companies has developed more than 30 projects in Delaware, totaling 4,700 units. Schell Brothers has more than 10 communities across the Sussex County market. 

Advertisement
Advertisement