J. M. Peters Co. to Be Sold to MDC Holdings

Newport Beach home builder J. M. Peters Co. will be sold for the second time in less than three years, this time to MDC Holdings Inc. of Denver.

MDC is paying $100 million in “first mortgage receivables� for Peters, almost five times the $21 million that Dallas-based Southmark paid to acquire the firm in 1985.

Peters is a prime acquisition for MDC, which is trying to expand its home-building operations in Southern California after home sales in Texas and Colorado dried up when oil prices dropped.

MDC already owns Richmond American Homes, based in Irvine, and the acquisition of Peters will make MDC one of Southern California’s biggest home builders.

Southmark, a giant real estate and financial services company, owns J. M. Peters through its San Jacinto Savings & Loan subsidiary. It has decided to sell the profitable building firm as part of an effort to raise cash to alleviate a $2.4-billion load of debt.

6,400 Homes Planned

Barring objections by federal regulators, MDC should complete the deal by March, Brian Theriot, director of investor relations at J. M. Peters, said.

MDC told Peters executives that it plans few changes at the company, Theriot said, and that Peters and Richmond American will be run as separate companies.

Peters builds more expensive, “move-up� homes for second- and third-time buyers in Orange, San Diego and Los Angeles counties. Richmond American builds less expensive homes for first-time buyers in Riverside and San Bernardino counties.

Together, the two companies have about 6,400 homes planned or under construction in Southern California.