Firm purchases stalled housing developments in MontevalloPublished 3:39pm Tuesday, September 17, 2013
By STEPHANIE BRUMFIELD / Staff Writer
MONTEVALLO – The private equity firm Black Orchid Equity recently purchased more than 140 lots in Montevallo that will be available for homebuilders to develop soon.
The purchase was part of a larger $109 million purchase of 1,500 lots and 1,000 acres across the southeastern United States.
Black Orchid Equity finalized the purchase Sept. 6, according to managing director Blake Thompson, who said the purchases are about getting “stalled projects restarted.” Of the 1,500 lots, 20 lots were purchased in Montevallo that are available for homebuilders to start building today, with an additional 123 lots available for homebuilding down the road.
Black Orchid Equity purchased the lots concentrated in the Heritage Trace neighborhood of Montevallo from Rialto Capital after the developments went into foreclosure several years ago, Thompson said.
“Our job is to find undervalued assets and try to create value where other people couldn’t,” he said. “(The purchase) allows us to get in a position to restart a bunch of communities that have been stalled.”
Currently, Thompson said his firm is getting ready to sell the 20 finished lots to local builders, while the other 123 lots will be developed and then sold over time.
“We’re hoping homebuilders in town will reach out to us,” he said.