Convergence Investments


Complete: 20 Unit Single Family Development

Project Details

Property Location:
Sussex County, DE
Property Type:
Residential Single Family
Acquisition Date:
4.15.2003
Project Cost:
$1.4MM
IRR:
249%
Multiple:
5.2
Size:
20 Units
Status:
Completed Project

Project Summary

Diamond Overlook was the first development project that Convergence completed. Though it only comprised 20 single family lots, Convergence and its affiliated construction and sales companies handled all the design, construction, marketing, and sales of the units. The project was structured through a joint venture with the land owner which was comprised primarily of a purchase money mortgage carry back at settlement.

Of particular note is that the 21 lots that comprised this development had been on the market for over 3 years prior to Convergence Investments purchasing the entire community, and only one had sold. Convergence entered into an owner carry back structure, and developed a unique pricing and positioning strategy relative to the market. All 20 remaining lots sold, along with the finished homes, in 2 years. This was considered a very successful initial project for Colby Cox and the company, and allowed for investment in some of the larger, more complicated projects that would follow on its heels.