Arthur Falcone, who sold his Florida-based Transeastern Homes to Technical Olympic USA (now TOUSA) at the peak of the market in 2005, has secured $500 million in capital to buy distressed properties in Florida to feed his new building company, Americrest Homes, according to a Wednesday announcement by JMP Securities, which represented Falcone in the deal.

The source of the capital is private equity. The name or names of the private equity firms providing the capital was not disclosed in the announcement.

"We are pleased to be of assistance as the Americrest team looks to deploy capital in attractive residential investment opportunities that current market conditions have presented," the JMP release said.

In anticipation of the funding, Americrest agents have been out scouring the state for distressed properties with which to build the new company's land portfolio. There have been negotiations with Levitt, which is now in bankruptcy, as well as many other distressed sellers.

JMP has a seven-year history of working with Falcone. The company represented him in the sale of Transeastern to TOUSA for a record-setting $857 million. Falcone kept an interest in Transeastern after the sale.

Transeastern started hemorrhaging money almost immediately after that August 2005 sale, prompting lawsuits from lenders who cried foul about the company's valuation. Settling the lawsuits cost TOUSA hundreds of millions of dollars and resulted in the absorption of the Transeastern JV into TOUSA.

Falcone walked away with 3,000 lots after all was said and done, enough to create a nut of land to get his new building company off the ground.