In January 2020 scheduled interest payments were made to Asia based lenders of two development projects managed by Walton Development & Management (USA), Inc. in Prince George’s County, Maryland. The two projects, Westphalia Town Center – a large mixed use development and Canter Creek – a single family residential development, have delivered a combined total of more than US$ 4M in interest payments to Asia based investors since 2018 and 2019.
The single-family housing market in the Washington D.C. metropolitan statistical area (“MSA”), and specifically in the Prince George’s County submarket, continues to be strong. The County delivers strong job growth and consistent demand for high-quality, affordable housing, which presents a tremendous opportunity for the over 3,000 acres of land assets administered by Walton in the county.
The recent progress of Walton’s two development projects in the county gives an indication of the potential of this market. With Phase 1 residential development almost complete at Westphalia Town Center, Walton recently closed on the US$ 14.15M sale of Phase 1A pre-development land to a Virginia Beach based residential developer. This transaction is anticipated to bring more than 655 rooftops to the development and will help to accelerate demand and investment returns for the remaining phases of the development. Additionally, construction on Phase 2 of Walton’s Canter Creek residential development is underway and will shortly be delivering residential lots to a publicly traded homebuilder.
In recent years the U.S. homebuilding market has picked up pace as it endeavors to meet the burgeoning demand of approximately 80 million millennials that are entering their family formation years and buying their first homes. This in turn is leading investors towards strategies that can benefit from this trend.
“We see increased demand for real estate investments that can generate stable cash flow and the U.S. is typically one of the top choices for investors in Asia and Middle East”, said Gary Tom, President of Walton Group Asia.
Already active in 19 of the fastest growing homebuilding regions across the United States, Walton continues to make strategic acquisitions. The most recent is Lee Farms, a 245-acre property in Loveland, Colorado that is slated for the development of 900 single family homes. At the time of purchase, Walton executed an agreement with a publicly traded homebuilder that intends to develop the property in phases, thereby providing investors with cashflow from land sales as they develop and sell homes. This approach provides greater confidence to investors as exit pricing is locked in at early stage and regular cash distributions are able to commence earlier in the investment cycle.
The Walton Group of Companies is a privately owned, global, real estate investment, land asset management and administration company that has focused on strategically located land in major growth corridors for over 40 years. The company manages and administers US$3.8 billion of real estate assets in North America, on behalf of its investors and business partners. Walton has more than 106,000 acres of land under ownership, management and administration in the United States and Canada. Key entities in the Walton Group of Companies include Walton Global Investments, Walton Global Holdings, Walton International Group and Walton Development and Management. For more information visit Walton.com.