Investment Considerations
- Mountain Top Properties has issued 250,108,363 shares of common stock as of August 2023.
- The company will consider selling securities to fund future operations.
- Mountain Top Capital Fund I has a target to raise $75 million to fund its Hamptons projects.
- The company targets minimum ROI of 20% to 30% per transaction.
Mountain Top Properties Inc. (OTC: MTPP) is a diversified real estate holding company that acquires, sells and operates assets through its wholly owned subsidiaries and limited partnerships. The company specializes in property management, property technology (“PropTech”) and real estate redevelopment.
Mountain Top Properties was incorporated in 1990 and is based in Liverpool, New York, with offices in Sag Harbor, New York.
Organization
The company’s flagship subsidiary is Mountain Top Realty Inc., the managing partner of its first real estate fund focused on residential redevelopment in the prestigious and storied Hamptons, New York, beachfront communities.
Mountain Top Properties is also the lead investor in blockchain-enabled industrial and warehouse flex space HQXpress, which services the warehousing, reverse logistics and liquidation markets.
The company is in negotiations for the addition of AI-powered technologies that promise to simplify real estate services, including purchasing and sales.
Mountain Top Capital Fund I LLC
Mountain Top Capital Fund I LLC is a New York limited liability company recently organized by affiliates of Mountain Top Realty, manager of the fund. Through this fund, Mountain Top Realty will leverage the company’s experience, market conditions and industry relationships to capitalize on real estate projects as they arise.
This partnership will be focused on waterfront or water view properties in the Hamptons. The Hamptons market has historically remained strong and continues to set new highs year over year.
The fund has partnered with On Site Builder Construction Co. Inc., which is managed by Joseph Kelley, who, for over 40 years, has continued to build the highest quality architecturally designed custom houses, varying in style from classic to ultra-modern, in the Hamptons. Several houses he has built are showcased in books and magazines and featured across various forms of digital and social media. His assembled team of skilled subcontractors are among the finest skilled craftsmen in their various fields of expertise.
Mr. Kelley has built over 60 custom homes in this market and has the unique distinction of building the most expensive house sold in Sag Harbor in 2014, which sold for $31,750,000; the most expensive house in the Hamptons in 2019, which first sold for $27,500,000 in 2017 and later was renovated and re-traded for $39,250,000; and the most expensive house sold in the Hamptons in 2022, which sold with the neighboring house for $118,500,000. Mr. Kelley’s portfolio of projects is valued at over $400,000,000. Although he has historically worked as a custom home builder, he would like to shift from providing a service to now providing a finished product in this market.
Market Opportunity
Mountain Top Capital Fund I has a target to raise $75 million to acquire, renovate and remarket Hamptons waterfront or water view properties. The fund has secured debt capital commitments for 70% of the acquisition costs and 100% of the construction costs and will use $10 million to leverage strategic waterfront opportunities in and around the Hamptons.
Profits from each project will be distributed upon the sale of the project, which is anticipated every 15 to 18 months, with a target of a minimum return on investment of 20% to 30% per transaction.
The company anticipates the fund’s Hamptons projects will be followed up by several other funds targeting additional high-end markets.
Management Team
Beau Kelley is CEO, President, CFO and Director of Mountain Top Properties.
