Regal Properties, and its affiliate, Capital Real Estate Solutions LLC (“CRES”), co-invested with an existing capital partner to acquire from a bank 93 paper lots for detached, single family homes in Bakersfield, California. The lots were scheduled for foreclosure by the bank, so the deal required all cash and a quick closing by June 27, 2014. Prior to the closing, CRES entered into a joint venture with a prominent local builder, who agreed to match its total capital investment in order to improve the lots and develop and build the homes. We anticipate the selling bank will provide the same non-recourse construction financing of 70% loan-to-cost, at 5% interest, for ¼ point, as it recently did for a similar project involving Regal Properties and CRES. After the initial funding from CRES and the builder, the project will be self-funded until the anticipated completion date of June 2017, with an anticipated investor IRR of 65%.