Meriwether acquired Villas of Mirada in 2011 for $12 million as a distressed sale from a local bank. Villas of Mirada is a 46-unit luxury single-family development in Rancho Mirage, California located within the Ritz Carlton master plan. Upon acquisition, Meriwether was able to sell off 8 units of standing inventory within the first 4 months. After perfecting expired entitlements and dealing with various engineering issues, Meriwether commenced construction on 6 speculative homes, all of which were pre-sold prior to completion. In the summer of 2013, a local homebuilder offered to buy the remaining lot inventory at a substantial increase to Meriwether’s basis. Investor returns approached a 30% IRR and 2.0x multiple on invested equity.
