South Street Partners, a North Carolina private equity real estate investment firm, has acquired The Cliffs communities for an undisclosed amount.
South Street Partners was founded in 2009 and acquired Kiawah Island Club and surrounding properties in 2013 for more than $360 million. Patrick Melton, the managing partner of South Streets, said The Cliffs acquisition will bring long-term financial stability to the communities.
The Cliffs include seven golf courses and luxury residential communities on 20,000 acres in the Blue Ridge Mountains of Western Carolina. Jim Anthony started the master-planned development in 1991 and it grew rapidly in its first 20 years. It includes The Cliffs Communities at Mountain Park, Valley, Glassy, Keowee Springs, Keowee Falls, Keowee Vineyards and Walnut Cove.
But the Great Recession brought home sales to a halt and the company found itself swimming in debt. That brought development to a halt, including a new golf course by Tiger Woods.
Anthony went bankrupt and in 2012. Florida-based Arendale Holdings bought the properties in 2013 and sold them to South Street.
Melton was previously a partner at Discovery Land Company, and worked at Terrabrook before that. At the time, Terrabrook was the largest owner and developer of master-planned communities.
He said his firm will focus on improved amenities at Keowee Springs and Mountain Park. He also plans to offer pre-conceived floor plans and homes, instead of selling lots for custom homes. He said owners are less concerned with customization and want a turn-key purchase.