Arcadia has an excellent reputation within the financial and investment community. Since its inception in 1991, Arcadia has acquired and developed 35 projects with total debt and equity investment in excess of $140 million, and lot and land sales in excess of $200 million. Our projects have ranged in size from 8-acre urban infill sites to 330-acre master-planned communities.
Arcadia’s investment structure focuses first and foremost on risk management and capital preservation. Accordingly, the typical venture is well capitalized with a conservative debt-equity structure and a high level of pre-sales to financially strong builders and developers. Once the “downside” is addressed, the company applies its value added management strategies to create significant upside for the venture.
Financial returns on our investors’ equity have averaged substantially above 20% (IRR), and we have NEVER experienced a loss of capital. We are particularly proud of the fact that all of our deals have remained profitable, despite going through one of the most challenging economic recessions in history. We believe that this attests to the robustness of our underwriting standards, along with our ability to recognize and react to a dynamic business environment.
Healthy Lender Relationships, Low Debt Levels, and Excellent Cash Flow
Our banking relationships are also excellent. Arcadia is one of the few DFW land developers that has gone through the Great Recession maintaining all of its loans in performing status. Arcadia and its principals currently have very low debt levels, and excellent cash flow and liquidity.
Opportunities for Strategic Acquisitions
We believe that the current economic environment has created exceptional land investment and development opportunities in DFW, and other major Texas cities. The market has clearly bottomed out, and supplies of well-located, well-planned communities are quickly become scarce. The capital markets continue to experience dislocation, and there is currently very little new development. And with a one-to-two-year lead time to entitle and develop new communities, residential lots will be in short supply, and prices will rapidly escalate. We believe the properties acquired in 2013 and 2014 will provide significant investment returns for the astute investor. We are aggressively looking for suitable investment properties, and are inviting interested parties to join us in pursuing these exceptional opportunities. Please contact John Hodge at 214-843-4244 for information on our current activities.