Capitol Development was formed to administer Capitol First's real estate development activities. This subsidiary will develop relationships with preferred development partners, developers with whom Capitol First might enter into joint ventures. In addition, Capital Development plans to acquire and develop its own projects.

Interfund Mortgage was formed to administer Capitol First's real estate funding efforts. Interfund, which will work in partnership with Capitol Development, plans to maximize opportunities by Capitol Development's preferred development partner relationships by offering construction/development financing. Interfund also plans to initiate a high-yield secured lending program by offering high-interest financing usually not financed by traditional lenders for various reasons, including time constraints, credit issues with borrowers, higher-than-typical loan-to-value ratios or situations that require more and/or cross collateral. The management plans to conduct due diligence on all lending to determine that the underlying collateral has enough value to warrant loans.

"With our name change complete and a new corporate structure in place, and initial funding in the amount of $3 million secured, we are beginning to move forward more aggressively with the implementation of several key initiatives contained in our strategic plan," Ashley Bloom, vice president and treasurer of Capitol First, says in a statement. "We have already identified several land acquisition opportunities and anticipate acquiring one or more properties within the next quarter. In addition, we have begun to target opportunities that offer the potential for both positive cash flow and the ability to participate in the projects, either by joint venturing or high-yield lending."Capitol First is seeking to expand its transaction base, and focus mainly on real estate, funding and related business opportunities in high-growth markets. Currently, the company, through a wholly owned subsidiary, has commercial and residential land holdings in the master-planned community of Maumelle, AK.