SOURCE: Omega Commercial Finance Corporation

October 13, 2009 08:30 ET

Omega Commercial Finance Signs Definitive Agreement to Acquire Compass Rolling Hills Estates Project in Waterford, CA

Omega Plans to Bring Entry to Middle Class Housing to Central Valley of California

MIAMI, FL--(Marketwire - October 13, 2009) - Omega Commercial Finance Corporation (PINKSHEETS: OCFN) is pleased to announce that the Company has signed a Definitive Agreement to acquire The Compass Rolling Hills Estates development project located in Waterford, CA.

Compass Rolling Hills Estates is an initial 827 acre real estate development project adjacent to the City of Waterford, CA located in the Central Valley of California. Contingent plans call for the acquisition of another 339 acres for a total of 1,166 acres. Upon completion, it is expected that the appraised development will be valued in excess of $428,000,000. The location of this real estate development project is considered ideal for this area since the foothills are seen as the perfect location to live a vibrant lifestyle while raising a family. Geographically, the development project will be nestled into the hills and distant from the "flatlands" of the valley floor. This will also bode well for avoiding congestion and traffic along the I-99 Freeway.

Compass Rolling Hills Estates executive management, with over 40 years of successful real estate and land development experience in the San Diego and Riverside County areas, plans on developing approximately 3,227 residential units, 444,000 sq. ft. of commercial development, and a golf course. Initially, plans are to meet the needs and demands of the housing shortages for entry level and middle income housing in the area. Demographic studies show an 8.7% increase in applications for building permits for the area within the last 3 months and a 14% rise in the construction of single family homes on a national level.

Omega Commercial's management believes that although the housing and mortgage markets are still in a state of flux, this cycle has shown a slight improvement as money and lending opportunities have started to come back into the market. Additionally, the State of California has shown a continued growth in population with feasibility and demographic studies continuing to show the need for additional affordable housing. Omega further believes that this project will meet and exceed the demand for entry level and middle income housing to the Waterford and nearby Modesto areas of California. It is anticipated that this particular market segment will show the strongest demand, while having the ability to turn over the quickest profit margins.

It is anticipated that the initial starting price of the residential homes will fall in the median range of $150,000 with subdivision's having wide greenbelt areas giving off a park like atmosphere complete with dedicated pedestrian and bicycle paths. Plans also include multi-family dwellings with beautiful town homes overlooking the golf course.

Jon S. Cummings IV, President for Omega Commercial Finance, stated, "We have spent several months researching the potential development of this area and feel very fortunate to have the ability to acquire this project." He also stated, "We have every confidence that after this project is funded, we along with our partners at Compass Rolling Hills Estates will benefit exponentially from the strategic location of this project."

Jerry Murphy, Managing Partner for Compass Rolling Hills Estate, stated, "This is a wonderful opportunity to provide first time home buyers a chance for the American dream, while also bringing housing to many in the retirement community. This will also provide the City of Waterford, as well as the county, a golf course that has been talked about for decades." He also stated, "In addition to homes, the project will bring with it all the attributes necessary for a vibrant lifestyle. A tremendous effort has been made to bring this development to fruition and we all look forward to moving forward."

Safe Harbor

This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of Omega Commercial Finance Corp., its directors or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy. The words "may," "would," "will," "expect," "estimate," "can," "believe," "potential" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond Omega Commercial Finance Corp.'s ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. More information about the potential factors that could affect the business and financial results is and will be included in Omega Commercial Finance Corp. filings with the Securities and Exchange Commission.

Contact Information

  • CONTACT:
    Omega Commercial Finance Corporate
    Investor Relations Dept.
    Joseph M. Vazquez III
    (305) 728-5350
    Email: Email Contact