By Michael Ross
Senior Vice President, Asset Management & Entitlements
Rockspring Capital started 2012 with a bang, as we continued our aggressive cash acquisition program with a couple of very creative deals.
In January, we purchased a non-performing note from a national bank. The note was secured by a six-acre land parcel adjacent to a previous Rockspring acquisition in Houston’s Texas Medical Center. By fully understanding the underlying value of the collateral, we were able to aggressively bid and ultimately acquire the note. Thirty days after the note was purchased, the borrower paid it off for more than a 200 percent annualized return.
Rockspring also purchased a subdivision in New Braunfels, Texas. Most people think of New Braunfels as a tourist destination. However, it is also a popular area for commuters working in eastern and northern San Antonio. As local market experts, we recognized before most others that this area is a growing market for today’s national home builders. The acquisition consisted of 48 finished lots and 66 fully entitled lots. By quickly analyzing this sub market and utilizing our trademark aggressive all cash strategy, we quickly closed on the property in less than 30 days. We are now in negotiations with a national home builder to acquire the lots at a nice premium for our investors.
Rockspring also has a full pipeline of similar creative deals that will provide profits to our investors in both the short and long term which I’ll be updating you on in the future.