The Miami based real estate investment banking firm has decided to diversify into residential real estate development and acquisition into the New England region
PORTLAND, ME, October 28, 2020 /Neptune100/ — With Maine home prices jumping an astounding 23% driven by massive out of state demand, Maine native and Miami resident Mark McClure, couldn’t sit on the sideline any longer as just a lender and equity investor, but wanted to be on the other side of the table from a development standpoint and ride this red hot sales surge that is showing no signs of slowing down in this burgeoning real estate market.
“While GenX Capital Partners has had an up and down year from a lending and equity investment standpoint due to the uncertainty in the finance markets, one thing we did notice was that residential development was continuing to trend upwards as a whole and showing little to no effects from COVID 19 in New England, but even more so in Maine. The massive influx of buyers from New York, Connecticut, New Jersey, DC and other surrounding areas has caused a massive shortage of inventory and so as a firm we decided to not only lend and invest here, but jump on the other side of the table as a developer as well. So when top local real estate developer Ron Goddard approached us on this deal we pounced,” he stated.
GenX Capital Partners LLC (dba Saco Cottages, LLC) then teamed up with Goddard and acquired the “shovel ready”, 55 and over condo community called The Cottages at Pine Meadows in Saco, Maine. Characterized as mini homes with prices ranging from $169K to $279K, the segment of buyers will mainly be composed of second and third home owners, empty nesters and those that are looking to escape the chaos in the major cities caused by the COVID pandemic while having a summer home in Maine to boot. Floor plans will run from 400 sq feet up up to 800 sq feet with full basements that have 8 foot ceilings, offering the opportunity to add a bedroom, more living space and more importantly storage.
“Where in Maine can you find a new build condo for under $200,000 that is only minutes away from the major beaches, restaurants, shopping and highways? They don’t exist, especially for a 55 and older segment. Just as importantly you can now have an amazing summer cottage in Maine allowing you save thousands on hotel and Airbnb costs and in the off season, rent it out for a minimum of 4 months at a time, allowing you to pay your entire mortgage while generating a sizeable profit. The corporate and offseason rental market is thirsting for inventory, and this will allow our buyers to enjoy summering in Maine while generating an income if they decide to head South in the winter. The best part is the continued value appreciation as inventory continues to stall and buyers continue their exodus to Maine,” McClure stated.
The Cottages at Pine Meadows was planned, entitled and approved by seasoned local developers Bill Koch and Sandra Murray. When they decided to sell the package and move on to other projects McClure and Goddard jumped at the opportunity to acquire the development and capitalize on the burgeoning Southern Maine real estate growth.
“Sandra and Bill put together an amazing project, their vision of a 55 and over community well thought out based on our extensive research and we couldn’t be happier to get involved,” McClure added.
The sales office will be run by Cash Wiseman and his Wiseman Group, a top residential brokerage with the Portland, Maine Keller Williams office while co-developer Ron Goddard will oversee the day to day construction component. The current website https://www.cottagesatpinemeadow.com/ will be redone in the coming days.
McClure added that his firm, GenX Capital Partners, which typically underwrites and funds deals of $10 million to $50 million or more for their investors, will now have a fund for smaller deals of $250K to $5MM to capitalize on the extensive residential development deal flow that continues to gain traction in New England.