Capitol Development was formed to administer Capitol First'sreal estate development activities. This subsidiary will developrelationships with preferred development partners, developers withwhom Capitol First might enter into joint ventures. In addition,Capital Development plans to acquire and develop its ownprojects.

Interfund Mortgage was formed to administer Capitol First's realestate funding efforts. Interfund, which will work in partnershipwith Capitol Development, plans to maximize opportunities byCapitol Development's preferred development partner relationshipsby offering construction/development financing. Interfund alsoplans to initiate a high-yield secured lending program by offeringhigh-interest financing usually not financed by traditional lendersfor various reasons, including time constraints, credit issues withborrowers, higher-than-typical loan-to-value ratios or situationsthat require more and/or cross collateral. The management plans toconduct due diligence on all lending to determine that theunderlying collateral has enough value to warrant loans.

"With our name change complete and a new corporate structure inplace, and initial funding in the amount of $3 million secured, weare beginning to move forward more aggressively with theimplementation of several key initiatives contained in ourstrategic plan," Ashley Bloom, vice president and treasurer ofCapitol First, says in a statement. "We have already identifiedseveral land acquisition opportunities and anticipate acquiring oneor more properties within the next quarter. In addition, we havebegun to target opportunities that offer the potential for bothpositive cash flow and the ability to participate in the projects,either by joint venturing or high-yield lending."Capitol First isseeking to expand its transaction base, and focus mainly on realestate, funding and related business opportunities in high-growthmarkets. Currently, the company, through a wholly owned subsidiary,has commercial and residential land holdings in the master-plannedcommunity of Maumelle, AK.