Värde Partners sells Oakwood Homes to Clayton Properties Group

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July 6, 2017

Berkshire Hathaway’s Clayton Properties Group buys Colorado’s Largest Private Homebuilder

MINNEAPOLIS – Värde Partners, along with its minority partner Mountain Real Estate Capital (“MREC”), sold Oakwood Homes to Clayton Properties Group, a division of Clayton Homes, a Berkshire Hathaway company. The deal closed on July 3; terms were not disclosed.

Värde and MREC invested in Oakwood Homes in February 2013 during a challenging time for the nation’s homebuilding industry. Värde and MREC recapitalized Oakwood and provided additional capital to grow the business, which is focused on land development and homebuilding on the Front Range. The company has delivered 15,000 homes to date since its founding in 1991 by CEO Pat Hamill. The company sold 1,200 homes in 2016 alone, which represents a 20 percent increase from 2015.

“Värde made a considerable investment in Oakwood based on our faith in the Company’s leadership and its valuable land assets around Denver and Colorado Springs,” said Brendan Bosman, Managing Director of U.S. Real Estate for Värde. “Our investment allowed Oakwood to expand into the Salt Lake City market and more than triple annual home closings in under 5 years. We are excited for Pat Hamill and the rest of the Oakwood team as they continue to grow with Clayton’s investment.”

Värde and Mountain Real Estate Capital were represented by Moelis & Company on the transaction.

About Värde Partners:
Värde Partners is a $12 billion global alternative investment firm that employs a credit-oriented, value-based approach to investing across a broad array of geographies, segments and asset types, including real estate, corporate credit, mortgages, specialty finance, and transportation. The firm sponsors and manages a family of private investment funds with a global investor base that includes foundations and endowments, pension plans, insurance companies, other institutional investors and private clients. Now in its third decade, Värde employs 250 people with main offices in Minneapolis, London and Singapore and additional offices around the world.

About Mountain Real Estate Capital:
Since 1993, Mountain Real Estate Capital has been a leading private equity source for real estate land developers and builders. MREC is headquartered in Charlotte, N.C. with offices in Minneapolis, and San Diego.  Since 2010, MREC has committed approximately $1B to acquire over 48,000 lots/homes in over 400 communities in 20 states.  Since 2016, MREC’s primary focus has been managing its investments as an asset manager to develop and sell lots/homes to builders and developers. (www.mrec.com)