Hampshire Teams With Wyoming Firm

MORRISTOWN, NJ-Jackson Hole, WY-based Convergence Investments, an investment, consulting and development firm, has partnered with the locally based Hampshire Cos. to close the gap between distressed debt and commercial paper funds and public homebuilders.

Convergence has historically focused on distressed land opportunities in master planned communities, primarily in accessible East Coast markets where demand is driven by demographics, which require experienced acquisition and project management resources to realize deal value. Hampshire, meanwhile, has more than 50 years of experience in acquiring, developing, leasing, managing, financing and disposing of real estate.

“The Hampshire philosophy is opportunistic, and this partnership allows us to add a very specific and niche residential real estate component to what we do," says Jeffrey Hanson, a principal at the firm. "Convergence’s strategy is based on their expertise in getting real estate property ready for sale to national homebuilders, with whom they have been working with for years. If you are watching the market, you know national homebuilders are stockpiling cash and eager to take advantage of any finished product that arises from current state of distress."

“We have found over the years that a homebuilder is not in the business of buying raw land, and a landowner is not in the business of turning land to lots," says Convergence founder and president Colby Cox. "Furthermore, there are a number of funds that invest in residential real estate as well as a long list of national homebuilders. However, there are very few people in the middle doing what we do. With hundreds of half finished communities currently on the east coast and homebuilders stockpiling billions in cash, we believe strongly in our strategy and ability to execute."