Columbia, South Carolina (PRWEB) December 23, 2014
Brightlane Homes, Inc. (Brightlane) announced today, the recent acquisition of a well-seasoned portfolio of 375 single-family homes, performing and non-performing notes previously owned by RECA, Limited Partnership (the RECA Portfolio). The total transaction value, including the assumption of debt, is approximately $ 12.3 million. The transaction involved the exchange of the RECA Portfolio for Brightlane common stock and assumption of RECA Portfolio debt.
The transaction brings into the shareholding of Brightlane, Mr. Tom Reaves and Mr. David Campbell, a couple of seasoned national investors who believe in Brightlanes long-term growth strategy for the acquisition of formerly-foreclosed, Real Estate Owned (REO) property, performing and non-performing loans, and the repair and repositioning of those properties and loans, for the purpose of offering residential homes for purchase to low and moderate-income buyers utilizing a Lease/Purchase Option business model.
Colin Hill, Director of Brightlane Homes noted, We are most pleased with the successful acquisition of the RECA Portfolio. It is an honor to partner with Tom Reaves and David Campbell who are successful industry leaders with long-term track records. Tom and Davids vision syncs perfectly with Brightlane’s outlook on the single-family home industry. We are looking forward to working closely with them. This acquisition and partnership further strengthens our mission, as Brightlane Homes intends to be a new pathway for home ownership with an innovative lease to own model to be launched in early 2015.”
“The RECA Portfolio is an excellent portfolio,” said Tom Reaves, a founding principal and general partner in RECA, Limited Partnership. “We personally selected each property in the Portfolio and have professionally serviced and maintained them with a long term view. We are excited that we will participate in the future performance of the Company and the Portfolio as significant shareholders in Brightlane Homes.”
The RECA Portfolio includes single-family residential properties, and performing and non-performing notes. Properties in the Portfolio are geographically dispersed across 23 states, with the largest concentration located in the Southeastern U.S. Sixty-one percent of the Portfolio is located in North Carolina and South Carolina. The performing and non-performing notes are owner-financed, land contract, installment contract or agreement for deed instruments, for which the underlying real property deeds are held by the seller until the owner-financed notes are retired. The owner-financed notes included in the RECA Portfolio are well-seasoned, with an average of approximately 4.3 years of payment history, and an average remaining term of approximately 14 years.
The acquisition was completed with the transfer of the RECA Portfolio to the Brightlane RECA Trust (the Trust), a Delaware statutory trust specifically designed to hold the RECA Portfolio. Brightlane RECA LP is the beneficial owner of the Trust. Brightlane # 1 LLC, a wholly owned subsidiary of Brightlane Homes, Inc., is the 99.99% owner of Brightlane RECA LP.
About Brightlane Homes, Inc.
Brightlane Homes, based in Columbia, South Carolina is a real estate acquisition and management company that looks to acquire, renovate bulk single-family housing and distressed and non-performing residential mortgage loans with the goal to lease affordable single-family housing and eventually provide financing turn-key to its customers at affordable prices. Brightlane Homes seeks to acquire single-family homes in bulk at discount prices in strategic areas, renovating them to our Certified Property Standards, and leasing and managing them with maximum efficiency. The key principle of Brightlane Homes is to provide a new pathway for home ownership to customers with economic limitations as well as deliver functional expertise and a passion for operational excellence that Brightlane believes its customer the future home-owner deserves.