Undeveloped Carrington lots purchased by equity firm
The Birmingham Business Journal reported that Black Orchid Equity has paid $109 million for undeveloped lots in three metro area subdivisions, including Carrington in Trussville. The purchase from Rialto Capital Management was part of a larger purchase spanning at least four states across the southeast, the BBJ reported.
According to the article, Black Orchid plans to develop 600 residential lots in the metro area within the next 24 months. The total purchase includes 1500 lots 25 southeastern subdivisions.
Rialto purchased the Carrington property over a year ago and faced issues that were never addressed by the original developer such as the completion of a back entrance to the subdivision. After a train blocked the main entrance for several hours, Rialto began the process of finishing the long promised access road. During the time Rialto owned to Carrington property there was very limited development in a slow housing market.
Black Orchid is stepping into a rebounding market in Trussville where building permits and home sales are hitting a six year high.
Black Orchid Managing Director Blake Whitney Thompson told Ryan Poe of the BBJ, ““I think we are in a normalizing environment, My firm is developing lots for a dozen homebuilders across the Southeast, and we feel this acquisition evidences the fact that we are deeply invested in a healthy residential marketplace.”