With the investment of companies like Toyota, U.S. Gypsum, and Catellus, the city of Stockton is poised to grow in coming years. Our property is well located and in the path of growth for the city
Menlo Park, CA (PRWEB) June 27, 2008
HG Capital, LLC (HG), investing with Mill Creek Development (MCD), is pleased to announce its investment in approximately 160 acres of residential land in Stockton, CA. HG provided substantially all of the equity for the transaction while the remainder came from an MCD co-investment. HG and MCD capitalized the project assuming an investment duration of several years without the need for debt.
The project consists of the acquisition, entitlement, and eventual sale of approximately 1,100 single family lots. The purchase price was attractive, representing a small fraction of what similar land had sold for during the past several years. Located in the Bear Creek East Specific Plan in North Stockton, the site is within the preferred Lodi School District and enjoys easy access to Interstate 5 and Highway 99.
As a low cost logistics hub, the city of Stockton is attracting manufacturing companies as well as new commercial development. Toyota recently opened two component plants in Stockton that are projected to employ approximately 250 people by the end of 2008. U.S. Gypsum Company is in the process of building the world's largest wallboard manufacturing line in Stockton. The plant is expected to produce one billion square feet of wallboard annually and create 150 jobs. Employment growth in Stockton will continue with plans by The Catellus Development Group of ProLogis to develop a 550-acre mixed use project near the Stockton Metropolitan Airport. The project is estimated to bring 14,000 jobs to Stockton.
"With the investment of companies like Toyota, U.S. Gypsum, and Catellus, the city of Stockton is poised to grow in coming years. Our property is well located and in the path of growth for the city," said HG Executive Vice-President, Andrew Jobst. "We made this investment with the intent to be patient―when demand for new single family housing in the area returns, the property will be positioned to capture that demand."
About HG Capital, LLC
HG Capital, LLC (HG) (http://www.hgre.com) is a real estate investment group that provides joint venture equity capital to real estate owners and developers for value-added and opportunistic real estate projects in the western United States. HG makes principal investments from its discretionary management of the HG Capital private equity funds. HG manages over $100 million of equity capital and has invested in over $1.5 billion worth of projects since 1995. With offices in Menlo Park and Newport Beach, California, HG has established a successful track record based upon its highly responsive and entrepreneurial approach to real estate investing.
About Mill Creek Development
Mill Creek Development, LLC ("Mill Creek") specializes in the development and entitlement of commercial, residential and retail properties with a geographic focus on California's Central Valley. These projects typically require rezones, general plan amendments or "planned development" governmental approvals. In addition to continuing to develop numerous commercial properties, since 2002 Mill Creek has entitled and sold over 500 mapped lots to residential builders and is in the process of entitling another 850 lots that upon completion will ultimately be sold to, or joint ventured with, residential builders.