PATTERSON EQUITY PARTNERS MAKES HISTORY

 MINERAL WELLS, TEXAS—Ona Martin doesn’t look like someone ready to make history.  But that’s exactly what the 90-year-old woman did on Friday in a law office in Mineral Wells.

For the past 20 years, Martin has owned a lake home at Possum Kingdom.  But like all the other landowners around the lake, she’s had to lease the land under her home.  This is because the Brazos River Authority always owned the land surrounding the lake and has only leased it to the homeowners.  Until now.

Last year, Patterson Equity Partners, led by Mike Patterson, offered the BRA a $52 million bid to buy out all the leases around the lake.  The BRA, eager for an infusion of money and even more eager to get out of the real estate business, accepted the offer.  About a year of negotiation concluded this past week and PEP officially closed the sale.  Now, homeowners finally get the opportunity to purchase their land.  The first was Ona Martin.

“I feel great and honored and to be the first person to own my land around Possum Kingdom,” Mrs. Martin said, wearing a brown business suit and smiling widely as she signed the paperwork at 12:15 inside the Gault and Gault Law Offices in Mineral Wells. “Thank you to Mike for making this happen.”

Mike Patterson took a moment to reflect on the meaning of the moment. “This is the American dream,” he said.  “To be able to move from leasing land, which is an expense, to owning land, which is an investment, is a great deal for all the homeowners at Possum Kingdom.  I’m proud that Patterson Equity Partners has been able to make Mrs. Martin’s dream come true.  And she’s just the beginning.  Many more will also own their land.  And we believe the model we have created here at Possum Kingdom can be created elsewhere.  Anywhere a government entity has excess property that it owns and wants to get out of the real estate business, we can help.”

Joining Mrs. Martin at the historic signing was: Bob Colemen, president of First National Bank Graham, one of the preferred lenders for PEP; Kenny Russell, general manager of Link Field Services; Neal Smith, lead draftsman of Possum Kingdom Project Link Field Services; George Gault, managing partner of Gault & Gault; and Jane Privitt, representing the Elliot and Waldron Abstract Company.

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PATTERSON POSSUM KINGDOM LAKE PARTNERSHIP AND THE BRAZOS RIVER AUTHORITY CLOSE HISTORIC POSSUM KINGDOM SALE

 First Sale of Its Kind-Sale Gives BRA Influx of Cash and Puts Leaseholders in Charge

October 22, 2010 ARLINGTON, TEXAS— Today the Patterson Possum Kingdom Lake Partnership (PPKLP) and the Brazos Rivery Authority (BRA) made history in closing the sale of all the lakefront property leases at Possum Kingdom Lake from the BRA and transferring them to the PPKLP. This marks the first time a government-owned lake has sold the lake property leases to private investors.

“This is a great win for everyone—the BRA, our investors, the leaseholders and the general public,” said Mike Patterson, Managing Partner of PPKLP.  “Now that the sale has closed, everyone wins.  The government wins by getting much needed cash, the leaseholders win by getting the chance to buy the lease and the general public wins because this is a significant transaction that can only help our struggling economy.”

Patterson thanks everyone involved in the process and noted that it was a team effort.  “You don’t pull off a project of this magnitude by yourself.  This could not have been accomplished without a great team: the BRA (both in Waco and Possum Kingdom), the surveyors, title companies and leaseholders of Possum Kingdom.  We should all be very proud of the end product.  We did the right thing, and we did it the right way.”

Last year, the BRA accepted a $52 million bid from PPKLP. Under the terms of the sale, 1,537 residential leaseholders and 19 business owners will either be allowed to continue to lease the land or they have the option to buy the land based on the land’s 2008 assessed value.

Patterson added that he believes other government entities should look at privatizing their real estate as well. “If this can be done at Possum Kingdom, it can be done anywhere,” he added. “Other government entities should look at what the BRA has done and think about selling their excess properties, too.”

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Patterson PK Land Partnership Announces Historic Possum Kingdom Sale is Closing

First Sale of Its Kind Will Be Successfully Completed in September

June 1, 2010 ARLINGTON, TEXAS—Today the Patterson PK Land Partnership made history in announcing that the Possum Kingdom sale will close and the lakefront property leases will transfer from the Brazos River Authority to the PPKLP on September 15.  This will mark the successful conclusion of a year-long process and marks the first time a government-owned lake has sold the lake property leases to private investors.

“One year ago we promised the people of Possum Kingdom Lake that we would engage in the fairest and most effective process to help transition the lake front properties from government ownership to private owners,” said Mike Patterson, Managing Partner of Patterson PK Land Partnership.  “Now that the sale is approaching closing, we will continue to engage the homeowners and give them options ranging from buying their land to continuing to lease it.  We will be good stewards of this project.”

Last year, the Brazos River Authority accepted a $52 million bid from Patterson PK Land Partnership. Under the terms of the sale, 1,516 residential leaseholders and 19 business owners will be allowed to buy the land their property sits on or re-lease it. The cost will be based on the land’s 2008 assessed value.

And Patterson added that he believes that other government entities should look at privatizing their real estate as well. “If this can be done at Possum Kingdom, it can be done anywhere,” he added. “This is a win-win for everyone—the leaseholders, the taxpayers and the local economy.”

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Patterson PK Land Partnership is a subsidiary of Patterson Equity Partners (PEP).  PEP assists government entities in the divestiture of leasehold property. Created in 2009, PEP has developed a business model where it purchases land from the government and then sells it back to the leaseholders. Possum Kingdom is the first successful project; PEP is currently looking at other divestiture opportunities.

For more information:

Jarod Cox
Patterson Equity Partners
817.784.2065
jarod@pattersonequitypartners.com