Tricon Capital Group Announces US$59 Million Investment to Develop an Active Adult Community in Charlotte, North Carolina


TORONTO, July 24, 2014 /CNW/ - Tricon Capital Group Inc. (TSX: TCN) ("Tricon" or the "Company") today announced that it has closed a US$59.0 million investment (the "Transaction") to support the acquisition, development and sale of almost 1,200 homes on a 606 acre site in northwest Charlotte, North Carolina (the "Project" or the "Property"). One of Tricon's institutional partners has committed US$39.0 million as a side-car with an additional US$15.7 million and US$4.3 million committed by U.S. fund Tricon XI (the "Fund") and Tricon, respectively. The developer of the Project will be Shea Homes ("Shea" or the "Developer"), one of the largest private homebuilders in the United States.

"We are excited to expand our relationship with Shea, one of the premier1 homebuilders in the U.S. and a leader in the development of highly amenitized communities targeted at the baby boomer market," said David Berman, Tricon's Chairman and Chief Executive Officer. "We believe that the Trilogy Lake Norman investment offers a unique opportunity to take advantage of the strong growth fundamentals in both the Charlotte and the Active Adult market segments."

Investment Highlights:

  • The Property is located in Northwest Charlotte, near Lake Norman, which is over 32,000 acres2 in size and is a popular amenity utilized for a number of recreational activities including boating and fishing.
  • The Active Adult demographic is expected to be one of the fastest growing population segments in the U.S. over the next decade3 and the Carolinas were ranked as the two most desirable retirement destinations in the Del Webb 2010 Baby Boomer Survey given, in part, the strong relative affordability and temperate climate.
  • The Property is located less than one mile from the recently expanded Hwy-16, which provides convenient access to Charlotte Douglas International Airport (approximately 20-25 minutes) and downtown Charlotte (approximately 30 minutes).
  • There are currently a limited number of competitive age restricted communities within the market place4, with only one other actively selling large-scale Active Adult community in Charlotte.
  • Charlotte experienced 2.1% and 2.7% year-over-year population and employment growth in 2013, significantly above the national growth rates of 0.7% and 1.7%5, respectively. Furthermore, median household income in Charlotte grew at 3.6% in 2013, over 1.4 times the national growth rate6.
  • The commitment increases Tricon's AUM by $43.3 million or 2.1%, to a total of approximately $2.1 billion.

About Tricon Capital Group Inc.
Founded in 1988, Tricon is one of North America's leading residential real estate investment companies. Tricon provides financing to local operators or developers in select markets in the United States and Canada, with a primary focus on housing in growing markets. Our business objective is to invest for investment income and capital appreciation through our Principal Investment business segments and to earn fee income through our Private Funds and Advisory business. We currently have $2.1 billion of assets under management, including 22,200 single-family lots, 6,100 multi-family units and a portfolio of over 4,000 U.S. single-family rental homes. Since inception, Tricon has invested in approximately 160 transactions for development projects valued at more than $12 billion. More information about Tricon is available at

About Shea Homes
Shea Homes is one of the largest private homebuilders in the United States. Since its founding in 1968, Shea has built more than 90,000 homes in California, Arizona, Nevada, Colorado, Washington and Florida, and has recently announced plans to expand into Texas and Virginia. For more information about Shea Homes and its communities, please visit the company's websites at and

Forward-Looking Statements
This press release may contain forward-looking statements relating to expected future events and financial and operating results and projections of the Company, including statements regarding future plans, objectives or economic performance that involve risks and uncertainties. Forward-looking information and statements are based on management's expectations, intentions and assumptions. If unknown risks arise, or if any of the assumptions underlying the forward-looking statements prove incorrect, actual results may differ materially from management expectations as projected in such forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.


1 Ranked in 2013 as the #1 Most Trusted Active Adult Builder by Lifestory Research Most Trusted Builders in America Study.
3 Harvard Joint Center for Housing Studies
4 Lifestory Trilogy Carolina Reserve Pricing Study - June 2014
5 U.S. Census Bureau and Bureau of Labor Statistics
6 Bureau of Labor Statistics

SOURCE: Tricon Capital Group Inc.

For further information:

Margaret Whelan
Chief Financial Officer
Tel: 416-925-9744

Stephanie Chow
Financial Analyst
Tel: 416-928-4337

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