Kolter Buys, Then Sells, Raleigh Lots

Reposted from: BIG BUILDER News
By Teresa Burney

As Kolter Land Partners inked the deal to buy its first Raleigh, N.C., project April 20, it already had a deal in place to resell it to a start-up builder. In fact, it was the start-up builder, Winstar Homes, that brought the deal to Kolter, hoping it could provide the up-front capital for the purchase of the remaining 264 lots in Brightwood Trails, a Durham, N.C., development that stalled when the original owner St. Lawrence Homes filed for bankruptcy court protection. WinStar had the land under contract for the past six months. “These are just the kind of deals we want,” said Jim Harvey, president of Kolter Land Partners. Harvey added that WinStar and Kolter opened their books to determine how they could do the deal and make sure each made a decent profit. “It’s a good little marriage,” Harvey said of the deal. Kolter paid $4.5 million for the 264 remaining lots, of which 66 are fully developed, 72 are partially developed and need only roads, and 126 are raw. St. Lawrence had completed and sold roughly 30 homes in the neighborhood previously, Harvey said. Kolter Land, whose business model is to buy land and supply lots to builders, is based in Florida but recently began diversifying to other Southern states, buying a Levitt active-adult community on Lake Lanier north of Atlanta a couple of months ago and recently closing on land in Charlotte, N.C. Raleigh’s home lot market has begun to heat up in recent months, drawing the large home builders to reinvest and escalating lot prices. With the state government, universities, and a technical and biomedical industry in place, Raleigh’s housing market held up longer and appears to be rebounding faster. “We think it’s a really good development market,” said Harvey. So good that the company is actually considering buying raw land “that we think actually makes good sense to develop,” he added. John Schlichenmaier, who started Westfield Homes in the Carolinas and served as Standard Pacific’s

One Response to “Kolter Buys, Then Sells, Raleigh Lots”

  1. TomPier Says:
    May 7, 2010 at 2:37 pm

    great post as usual!