By Matt Hudgins

Apr 16, 2008 3:25 PM

Two unconnected deals announced this month show that well-funded private developers are taking advantage of the residential slump to bag ritzy residential sites to develop and hold until the market recovers.

Luxury destination club Quintess announced a $210 million equity commitment from an unnamed investor to pursue luxury residences and residential development sites around the globe. The transaction is the largest infusion of capital announced to date for a luxury destination club, according to the Broomfield, Colo.-based company, and is a cornerstone of its 10-year financing strategy to develop the largest portfolio of luxury homes in the world.

“There are certainly a lot of distressed properties out there,” says Ben Addoms, founder and executive vice president of Quintess. “Like every other investor, you don’t want to catch a falling knife, but it’s certainly easier for us to get in on the ground floor of five-star resorts.”

In an unrelated transaction announced this month Macfarlan Capital Partners, a privately owned Dallas investment group has purchased five resort communities in three states for approximately $181 million from Centex Destination Properties, a division of publicly traded Centex Homes (NYSE: CTX). When fully developed, the acquired portfolio will be worth about $1 billion, estimates Dean Macfarlan, founder and CEO of Macfarlan Capital Partners.

“We are getting tremendous value, irreplaceable locations and the opportunity to build a great brand,” Mcfarlan says. The assets are being re-branded under the name TerraMesa Resorts and the new owner has hired 135 former employees of Centex Hospitality Group and Centex Destination Properties to operate the company. Dallas-based Centex has sold nearly 30% of its resort and second-home communities, or five of 17 resorts, to Macfarlan.

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Tags: austin real estate //