CHARLOTTE, N.C., Feb. 12, 2013 /PRNewswire/ -- With multi-family, residential and commercial real estate markets showing signs of resurgence, Charlotte, N.C.-based real estate developer Crescent Resources continues to increase its capital base, including the closing on Friday (Feb. 8) of $75 million in additional senior secured notes.
"We view our success in attracting growth capital as validation of our strategies for bringing innovation, sustainability and community building to all of the real estate markets we serve," said Todd Mansfield, CEO of Crescent Resources.
"We have assembled a talented team at Crescent that is committed to using our capital base and our experience to make smart investments for the benefit of all stakeholders, including the people who live, work and play in Crescent developments," he said.
Crescent began its capital raising program during the summer of 2012, with the completion of a private offering of $350 million of senior secured notes. At the same time, Crescent's existing equity principal holders, Anchor Capital Master Offshore, Ltd. and MatlinPatterson Global Opportunities Partners III, L.P., made a $100 million equity commitment, which was recently increased to a total of $150 million.
The $75 million in new senior secured notes represents an addition to the $350 million private offering of last summer.
"As we have built our capital structure, we have been highly attentive to the cost of that capital," said Kevin Lambert, CFO of Crescent Resources. "The pricing of these additional senior secured notes was very favorable, highly competitive and reflects the market's confidence in our ability to successfully pursue attractive growth opportunities as real estate markets continue to rebound."
Crescent Resources has been extremely active in multi-family development during the past several months as the demand for apartments has outpaced the supply of available units. The company has more than 5,400 multi-family units either planned or under construction in Florida, Georgia and North Carolina, including Crescent Cameron Village, the first residential center in the 60-year-old Cameron Village outdoor lifestyle retail center in Raleigh.
In addition, Crescent has several initiatives underway in its commercial division, including recently selecting Little diversified architects to begin planning for a development in uptown Charlotte on a strategic site for office and other uses. The company is also developing master planned communities in North and South Carolina, Georgia, Texas, Tennessee and Florida, including its signature Palmetto Bluff and Springfield communities in South Carolina and Lake James in North Carolina. In the last six months, the company has acquired five new sites for residential community development.
"We have entered 2013 in a very strong capital position with liquidity that totals more than $200 million after this transaction," Mansfield said. "We see signs of continued growth throughout our markets and with the support of our investors we will continue to fulfill the leadership position for which Crescent has long been known."
Crescent, founded in Charlotte in 1969, is a diversified real estate firm with 20 master-planned communities and eight multifamily communities with 5,400 units under construction and in predevelopment. The company owns approximately 72,000 acres including 1,400 acres zoned for commercial use.
SOURCE Crescent Resources