SANTA ANA, CA-Locally based developer City Ventures LLC has received a $100 million equity investment from an affiliate of Ares Management LLC to expand its focus on urban infill opportunities in high-density coastal communities. City Ventures will use the additional capital to "continue aggressively identifying, purchasing and developing new-home projects in California's most desirable supply-constrained areas," the company said in a prepared statement.

City Ventures CEO Mark Buckland says that the equity investment "will provide land sellers and city redevelopment agencies confidence in City Ventures' ability to purchase and develop properties without the need for any third-party financing at a time when many home builders are pulling back." Ares' investment, along with City Ventures' existing cash, "will allow us to continue expanding our business in urban California markets," said City Ventures Chairman Craig Atkins.

As a result of the investment, Ares will become the majority shareholder in City Ventures. Imperial Capital Group, which has backed City Ventures since inception and served as the company's financial adviser in the transaction, will retain its equity stake. Jason Reese, Chairman and CEO of Imperial Capital, will remain on the board of directors.

Ares senior partner Bennett Rosenthal commented that Ares viewed the $100 million as "a compelling investment opportunity" because of the "unique set of skills in the urban infill market," of City Ventures. City Ventures has homebuilding divisions in Los Angeles, Orange County, San Diego and San Francisco, and holds more than 1,000 lots within 13 California coastal counties, currently estimated to yield approximately $1 billion in potential revenue.

Ares Management LLC is a global alternative asset manager and SEC registered investment adviser with approximately $37 billion of committed capital under management. In addition to its headquarters in Los Angeles, the company operates offices across the US and Europe. Imperial Capital, founded in 1997, is a full-service investment banking firm with offices in Los Angeles, New York, San Francisco, Boston, Houston and Minneapolis.