Walton Global Executes Final Two Acquisitions through Fortress Investment Group’s Facility
Partnership secured for new land acquisitions to support builder inventory needs
Walton Global, a real estate investment and land asset management company, has acquired 155 acres of land for its Builder Land Financing (BLF) facility through funds managed by affiliates of Fortress Investment Group, LLC (“Fortress”), a leading, highly diversified global investment manager. The acquired land includes 140.85 acres in Rhome, Texas known as North Star and 14.6 acres in Santa Rosa, California known as Stonebridge.
In June of 2022, Walton Global officially announced funds for a $100 million capital allocation managed by Fortress as a part of its BLF business line. The closing of the Stonebridge and North Star properties mark the end of this capital allocation, which was upsized to advance over $122 million for the included 14 properties.
Stonebridge and North Star are planned for residential development to bring new affordable homes to their respective areas by the largest homebuilder by volume in the U.S., D.R. Horton. Each property was a simultaneous closing with D.R. Horton, providing them with direct deeding upon Walton’s acquisition.
The properties represent two newly closed acquisitions for Walton Global’s BLF business model, which offers a solution to long-term inventory needs by acquiring land identified by builders and developers in the path of growth. Utilizing Walton Global’s key relationships across North America, the company will concurrently enter into option agreements for the future purchase of lots in phases.
Located within the Dallas-Fort Worth metroplex, Walton Global acquired 140 acres of the 750 total acres of the North Star Master Planned Community in Rhome, Texas. North Star’s 3,500 lot Master Planned Community is currently in Phase 3 of development, having completed 1,500 homes, and has plans to open an elementary school in August of 2024. The existing North Star community encompasses homes developed by D.R. Horton and Riverside Homebuilders, offering a wide variety of desirable amenities for residents to enjoy. Employment centers are towards the east, while many more recreational and everyday amenities are to the west towards Eagle Mountain Lake.
“North Star presented us with a great opportunity for our Builder Land Financing model, and we’re grateful for our partnership with Fortress to bring this to life for our investors and home builders” said Bill Doherty, CEO of Walton Global. “With Dallas-Fort Worth being one of the country’s fastest growing metropolitan areas, we continue to look for ways to support regional expansion.”
Stonebridge is located in the northwestern portion of Santa Rosa, California at 2220 Fulton Road. New residents of this community will benefit from being within three miles of major retail, grocery stores and Highway 101, which offers abundance of services, including a Kaiser Permanente Medical Center. The neighborhood has an estimated 108 lots slated for single family detached and duet homes.
Acquisitions such as these support Walton Global’s efforts to negate the housing shortage while offering the opportunity for investors expand their portfolio with diversified asset types and geographic locations and receive an annual cash flow as each option agreement is exercised.
Additionally, builders benefit from the strategy as it satisfies the need to secure future land inventory without acquiring it today, providing a distinct advantage over their competitors in the market. Walton continues to search for opportunities for the BLF business line to meet the growing demand for “just-in-time” inventory models that help top homebuilder clients in the U.S. secure their land supply and build new homes across the country.