Macfarlan’s $180M Purchase of 5 Resorts Shows Confidence in Second-Home Market
- Apr 03, 2008
Fears of a recession and rising energy prices weren’t enough to deter Macfarlan Capital Partners L.P. from putting approximately $180 million on the table in its purchase of five upscale resorts and second home communities in Texas, New Hampshire and North Carolina. The Dallas-based private real estate investor made the acquisition from Centex Destination Properties, a division of Centex Homes. “The economic contraction and high gas prices have an impact,” company CEO Dean Macfarlan told CPN. “That being said, Boomers have capital for recreation, and they are historically purposeful travelers who place a high priority on leisure and ‘getting away.’ They have demonstrated a willingness to invest money in these types of second-home communities if they believe they can create value, whether new family memories or actual economic benefit. We do see that continuing regardless the cost of a tank of gas.” The approximately 135 Centex Destination Properties and Centex Hospitality Group employees will become part of TerraMesa Resorts, a wholly owned subsidiary of Macfarlan that will manage and develop these properties, according to a statement from Macfarlan. The five properties are: * The Hollows, on Lake Travis, a nearly 19,000-acre reservoir near Austin, has approximately 400 developable acres, including a 221-slip marina and a beach club. At presstime, 99 condos, 298 home sites and more than 200 homes had been sold. * The Waters at Horseshoe Bay Resort, on Lake Lyndon B. Johnson, also near Austin, currently has 10 condos completed and a 100-slip marina under construction. * Pointe West, in Galveston, Texas, totals approximately 300 developable acres, including Galveston’s only beach that’s closed to vehicular traffic, 42 single-family lots, a beach club with fitness facilities and two restaurants, and a fishing pier. Currently, 232 condos have been sold, as have 305 home sites. * Bear Lake Reserve, in Tuckasegee, N.C., has approximately 900 developable acres with currently 48 cottages, 125 single-family lots, a 400-acre private lake, a club house with restaurant and fitness center, and a 9-hole golf course designed by Jack Nicklaus. * South Peak Resort at Loon Mountain, Lincoln, N.H., has approximately 300 developable acres with 17 condos, 28 single-family lots with access to Loon Mountain Ski Resort. In addition, TerraMesa already owns “V” at Lake Las Vegas, Nevada, which Macfarlan had previously purchased from Centex. The estate homes at this Tuscan-themed resort will use only 14 of its 45 acres for a small number of residential condos. In its 20-year history, Macfarlan Capital Partners has completed over $1 billion in real estate investments. In February, CPN reported on the sale of Turnback Ranch, a 242-acre lakeside site on Lake Travis near Austin; it was sold by Turnback Development L.L.C., a partnership of principals in Winston Capital Corp., to Equilibrium Resorts, an affiliate of the Tharaldson Cos. Renamed Mahogany, A Lake Resort, the property will eventually feature a Mediterranean-style village, a resort hotel, estate-sized lakefront homesites, single-family homesites and townhomes.