Glenfield Capital Announces Closing at Oakgrove Preserve

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Momentum Continues for Private Equity Firm With Fourth Transaction of 2007 Despite Soft Housing Market

Glenfield Capital, a private equity firm with a $400 million investment history, has announced its fourth transaction of 2007 in the midst of the nation's widely reported troubled housing market. Glenfield Capital funded the Oakgrove Preserve development in Atlanta in 2006 with Vesmont, LLC acting as the development partner. The recent closing totaled approximately $12 million in sales with individual lot prices averaging more than $400,000 without pricing concessions.

Oakgrove Preserve, located near Atlanta's Emory University, is comprised of 29 executive style homes, and features heavy landscaping, a running trail, and access to an award-winning elementary school. Home sales likely will approach $40 million as the neighborhood sells out.

"Over the course of 2007, there's no question that real estate has clearly become the focal point of the business media, investors, and homeowners," said James P. Cate, managing principal and founder of Glenfield Capital. "Concerns about oversupply, mortgage practices and related credit problems have continued to make headlines - both nationally and now globally - throughout the year. Despite these conditions, Glenfield Capital, has experienced success."

The Oakgrove Preserve closing is a unique accomplishment when considering the following about the state of Atlanta's housing market:

  • During 2006, building permits were issued for 53,950 new single-family homes, a decrease of 12 percent from 2005. Approximately 27,950 homes, or 52 percent of the total permitted for the metropolitan area, were permitted in the 23 suburban counties beyond the five core counties; and
  • Georgia Multiple Listing Service data indicate that 74,500 single-family homes were sold during 2006, a decrease of nearly 6 percent from the record volume sold during 2005 (Source: U.S. Department of Housing and Urban Development, Regional Activity, Fourth Quarter, 2006).

"The residential real estate market is highly segmented," said Dr. Karen Gibler, associate professor in the J. Mack Robinson College of Business at Georgia State University. "The problems in the subprime lending market and the subsequent increase in foreclosures, decline in construction, and fall in prices are concentrated in neighborhoods where large numbers of these borrowers live--lower priced, smaller homes in less well established communities." Gibler continued, "Investors who use their education and experience to impartially analyze the market rather than succumbing to emotion will find attractive properties with tremendous upside potential in today's market."

Glenfield Capital's other success in 2007 includes:

  • Conclusion of mezzanine loan for a 1,200-acre Lake Oconee, Ga., development on a $20 million land tract. Glenfield Capital made a $5 million mezzanine loan in 2006 and was recapitalized in the second-quarter of this year.
  • Glenfield Capital funded the The Settings of Lake Rhodhiss, a 682-acre, second home development on Lake Rhodhiss in western North Carolina. Sellout will approach $80 million on this development with

$10 million already sold.

  • Glenfield Capital funded Terrasol (formerly Nash Preserve) a 128-home development bordering the Yellow River in the award-winning Brookwood High School District in Gwinnett County, Ga. More than 30 acres will be preserved in this highly anticipated development with walking trails, tennis courts, wi-fi access, swimming pool and clubhouse. Sellout of homesites in this neighborhood is anticipated to approach $22 million. The development will be completed with homesites available in early-2008.

"In this environment, Glenfield Capital will remain focused on value-added, strategic investments," added Cate. "Conditions in certain areas of the real estate asset class have continued to deteriorate, and while we can't foresee the scope or timing of this down-period, we see increasing opportunities for prudent investments in undervalued real estate as these conditions persist."

About Glenfield Capital
Glenfield Capital is a leading private equity investment firm located in Atlanta. Using a variety of equity and debt structures, Glenfield Capital principals have invested in real estate transactions valued in excess of $400 million. Founded by commercial real estate veteran James P. Cate, the firm invests in value-add real estate opportunities, provides equity/mezzanine capital and offers bridge loans. For more information please visit http://www.glenfieldcapital.com.

Glenfield Capital Media Contact:
Nancy E. Bistritz
nbistritz(at)glenfieldcapital.com
Phone: 770.309.3199

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