Investor Buys Camino Real S&L; in Valley

Mervyn A. Phelan, an Orange County businessman long active in real estate finance, said Monday that he has bought the five-branch Camino Real Savings & Loan Assn. in the San Fernando Valley for more than $3.5 million in cash.

Camino Real, which claims to have been the nation’s first association owned predominantly by Latinos, had been suffering management problems over the last 18 months, Phelan said, and its 100 or so shareholders wanted to sell the operation.

Phelan said the 13-year-old association “broke even” in 1984, but he declined to reveal its performance during the first half of 1985. He said the sale was not arranged or assisted by government regulators.

Phelan, who already owns a controlling interest in the real estate and property management firm PHI Enterprises Inc. and is active in several real estate syndicates, said he was drawn to the deal by Camino Real’s $80-million investment in real estate projects throughout California. The projects, he said, consist primarily of housing for low-income residents in urban renewal areas.

Seeks New Depositors

Although Phelan said that he wants to maintain the association’s Latino roots, he noted that he already has plans to market his new acquisition to another audience: affluent Orange County investors.

To accomplish this, Phelan transferred $16 million worth of real estate that he owned to the association to bolster its net worth, which now stands at $18 million. Phelan explained that the move was designed to inspire confidence in the association from potential depositors in Orange County, where he plans to move the organization’s headquarters shortly.

“I want to take advantage of deposit opportunities,” he said of the coming move. “I want the people who invest with me in real estate to deposit their money in my savings and loan.”

Phelan said he plans to open a branch in Orange County as soon as he receives approval from regulators.