Chesapeake Capital Partners, LLC, founded in 1997, is a boutique real estate investment and private equity firm located in Marriottsville, MD. In addition to its other more traditional real estate investing activities, Chesapeake Capital is an industry leader in the acquisition and management of private water and sewer assessments (“assessments”) in the state of Maryland. In 1999, Chesapeake Capital was the first to apply a structured, private equity approach to such investments by providing developers and builder/developers in the State of Maryland with the ability to monetize the Private Water and Sewer Assessments which they create during the land development process.
Chesapeake Capital is one of the largest purchasers of private utility assessments in the state of Maryland.
With our substantial investor backing and warehousing debt facilities, Chesapeake Capital’s goal is to continue to capture a substantial portion of assessments being created and sold by builders and developers in the state of Maryland. Chesapeake Capital is one of the few institutional purchasers of assessments, and sellers find that we can be relied upon to make quick commitments without financing contingencies.
Sellers of assessments are sometimes wary of selling to individual investors because there is some doubt that those investors will be able to fulfill their purchase commitments over a long period of time under varying economic conditions. This is particularly true in the sale of larger portfolios. Chesapeake Capital has completed individual assessment portfolio purchases with purchase prices from $75,000 to $7 million and has an impeccable track record over its 20 years in the business. References can be provided upon request.
Chesapeake Capital has the technical expertise to structure, close and manage transactions.
Without proper legal documentation and disclosures, there is a risk that the assessment will not be collectable. In fact, the Saddlebrook ruling by the Court of Appeals of Maryland in 2017 substantially increased the complexity and expense of enforcing the legal rights of the owners of the assessments. With the substantial experience of Chesapeake Capital, we have successfully closed the most complex transactions of this type.
Chesapeake Capital will become involved at any point in the process starting with the preparation and recording of the declaration creating the assessments, this is typically done in conjunction with the filing of the plat. In fact, we will take the lead in creating proper filings and disclosure documents to ensure a smooth transaction.
We are also willing to purchase portfolios after several years of assessments have been collected. Under this scenario, the ability of the seller to provide adequate documentation with regard to the creation and disclosure of the assessments, as well as collection history for the portfolio, could have a significant impact on pricing.
Chesapeake Capital has full in-house servicing capabilities, an experienced staff, and has developed a customized software package which assists us with the nuances of each individual portfolio. The use of advanced technology allows us to be more responsive and efficient as the scale of our business expands.
Chesapeake Capital has made a substantial ongoing commitment to the purchase of private utility/front foot benefit assessments in Maryland.
Chesapeake Capital, through multiple investment vehicles, currently controls over 9,000 Assessments and is actively pursuing the acquisition of new portfolios. Furthermore, Chesapeake Capital’s pipeline of likely future purchases is substantial.
With the commitment of our lenders, the availability of substantially private capital (both in-house and that of long-time investors), and with our sophisticated in-house servicing capabilities, Chesapeake Capital has the resources to be relied upon as a purchaser of both large and small assessment portfolios for years to come.