Capstone Advisors has been a leading provider of equity and mezzanine financing for home builders and land developers for residential land acquisition, entitlement, development and home building. As the equity and mezzanine investor of a multi-billion-dollar development portfolio, our investments have focused on both established and emerging growth markets.

Our residential investment portfolio has includes virtually every type of residential development, including entry-level housing, condominiums (including conversions) move-up homes, luxury and resort homes, country club estates and master planned communities.

We apply our in-depth knowledge of the residential development process to maximize opportunities quickly and effectively, giving our partners and their projects an unmatched competitive edge in the market. We value the long-lasting relationships we have formed with our partners — a direct reflection of our consistent performance and our commitment to provide the highest level of personal service and attention.

Representative Transactions

Winchester  December 2007
Capstone acquired 377 blue-top single-family detached lots located near the City of Menifee, Riverside County, California. Capstone purchased the property in a joint-venture with Bluestone Communities from a large public homebuilder. The investment represented one of the first major land purchases in a very difficult residential land market and was also notable due to the time sensitivity of the transaction, which was less than 30 days from the start of underwriting to the close of the investment.

Montreux
Capstone provided equity financing of $3,825,000 in a joint venture with a private builder for Montreux, a custom lot sales and production home development project located in northern Escondido, CA. At the time of the investment, the site had a tentative map approved for 68 single-family detached lots averaging two acres. The joint venture completed final engineering, developed the site, and built and sold 68 homes ranging in size from 2,900 to 3,500 square feet.

Buena Vista
Capstone provided equity financing of $5,510,000 in a joint venture with a private builder for Buena Vista, a home community located in El Centro, CA. At the time of the investment, the site had a tentative map approved for 465 single-family detached lots. The joint venture completed final engineering, performed the land development and sold 330 lots to two public homebuilders. The joint venture subsequently built and sold 135 homes ranging in size from 1,298 to 2,149 square feet on the remaining lots.

The Masters at PGA West
Capstone provided equity financing of $6,225,000 in a joint venture with a private builder for a residential project located in the prestigious golf community of PGA West, located in La Quinta, CA. At the time of the investment, the site had tentative map approval for 69 single-family detached lots averaging almost a full half acre. The joint venture performed the land development of the site, and subsequently built and sold 69 homes ranging in size from 3,579 to 4,621 square feet. At the time, it was one of the most successful residential homebuilding projects in La Quinta.

Mapleton
Capstone provided equity financing of $6,000,000 in a joint venture for the Mapleton master plan community development located a few miles north of Temecula, CA. At the time of the investment, the site had a tentative map approved for 905 single-family detached lots. The joint venture completed final engineering and performed the land development of the master planed community, and increased the number of lots to 942 by taking advantage of density bonuses. The joint venture sold the lots in multiple subdivisions to a variety of private and public homebuilders. The community was the most successful master plan community developed in Murrieta, CA.

Murrieta Oaks
Capstone provided mezzanine financing of $8,125,000 for the Murrieta Oaks master plan community, located in Murrieta CA, a rapidly growing commuter market for San Diego. At the date of purchase, the site had a tentative map approved for 536 single-family detached lots. The financing was for the acquisition of the land, land development and vertical development of 536 homes in three separate subdivisions. The borrower was a public homebuilder.

Santo Tomas on the Lake
Capstone provided equity financing of $5,400,000 in a joint venture with a private builder for the land acquisition of development of Santo Thomas, a luxury home community located on a private lake in Rancho Mirage, CA. At the time of the investment, the project had a tentative map approved for 152 single-family detached lots. The joint venture performed all land development work, including building a man made 14-acre lake. The development venture then completed vertical development of homes ranging in size from 2,100 to 3,600 square feet. The award winning development was one of the most successful new home lake communities in the Coachella Valley.