Investment Firm Buys
Pointe West from Centex
Galveston County Daily News, April 3, 2008
by Laura Elder
GALVESTON — Confirming rumors circulating for weeks, a
Dallas real estate investment firm said Wednesday it purchased
five resort properties from Centex Corp., including the Pointe
West development on almost 1,000 acres of the island’s
western tip.
Macfarlan Capital Partners said Pointe West, along
with two second-home properties near Austin and those in Tuckasegee,
N.C., and Lincoln, N.H., would become part of the TerraMesa
Resorts brand.
Centex Hospitality, which consists of 135 employees
overseeing the company’s resort operations, was included
in the acquisition.
Macfarlan declined to divulge the purchase price of
the properties it acquired from Centex Destination Properties,
a Centex Corp. subsidiary.
Altogether, Macfarlan purchased 3,900 acres —
1,900 of which are suitable for development.
The Pointe West property consists of 948 acres, 300
of which are developable, a Macfarlan spokesman said. TerraMesa
will spend about $180 million to complete resorts and improve
amenities, officials said.
In Galveston, some of that money will be spent finishing
infrastructure and continuing land development, Macfarlan officials
said.
While real estate agents continue to sell at Pointe
West, Centex Destination Properties in July said it had “adjusted”
the pace of its island development to accommodate a slower housing
market.
A lull in construction at Pointe West generated much
rumor and speculation. Announced five years ago, Pointe West
was among the biggest real estate projects ever proposed in
Galveston.
Centex had said it planned to develop a walkable community
with single- and multifamily residences from beach to bay at
San Luis Pass, on the last 3.5 miles of the island’s West
End. Centex said at the time only 300 acres would be developed,
the rest would be left as green space.
The pool, club and restaurant already are open at the
resort, which includes some condominiums and single-family homes.
Neither Centex nor Macfarlan would disclose the exact number
of units.
TerraMesa Resorts, a subsidiary of Macfarlan Capital
Partners, specializes in vacation destination properties.
Homeowners this week began receiving letters from Centex
informing them of the Pointe West sale.
Centex said it would continue providing warranties
for their homes.
Last year was a particularly tough one for Centex and
most other major homebuilders.
For the third quarter of fiscal year 2008, which ended
Dec. 31, Centex reported revenues $1.91 billion and a net loss
of nearly $975 million, or $7.94 per diluted share.
Wednesday’s announcement by Macfarlan was the
second large property sale this week for Centex, which has made
no secret it is working to generate cash.
Centex Corp. said Tuesday it sold 8,500 lots in 11
states to a joint venture led by Dallas-based RSF Partners Inc.
Centex received $161 million in cash but included an expected
tax refund of about $294 million, bringing the deal’s
total value to $455 million, the company said.
Macfarlan Capital Partners has completed more than
$1 billion in real estate investments.
Along with Pointe West, this week’s acquisition
includes: The Hollows on Lake Travis and The Waters at Horseshoe
Bay Resort on Lake Lyndon B. Johnson, near Austin; Bear Lake
Reserve in Tuckasegee, N.C.; and South Peak Resort on Loon Mountain
in Lincoln, N.H.
Macfarlan previously acquired “V” at Lake
Las Vegas in Nevada from Centex, which also is a TerraMesa Resorts
property.
