Wednesday, June 26, 2013

Mattamy Homes Picks Up ~80 Acres in Goodyear, Planned for 218 Lots

VIZZDA—June 24th, 2013 — Mattamy Homes, represented by their VP of Land, Ryan Huffman, has acquired an 80.22 net acre graded parcel in the Palm Valley subdivision of Goodyear. Following final plat approval by Goodyear Town Council on January 28th, 2013, the land is approved for 218 single-family homes, as the residential portion of Palm Valley, Phase IX. The all cash purchase price was $9,626,400, which represents per unit prices of $120k per acre, $2.75 per square foot and $44,158 per planned lot.

The property has an interesting history: it was assembled on December 31st, 1986 as a larger parcel in a cash transaction. A 145.43-acre portion was sold to Southwest Solar Technologies on November 25th, 2009 for $6,348,500 or $1.00 per square foot. While Southwest Solar did not finance the transaction, they secured $2.8m in new debt with affiliates of Apollo Group on April 1st, 2011.The current seller, an entity formed by Crown West Realty with backing from Petrus Partners of New York acquired the property from Southwest Solar three weeks after it was encumbered.

The prior sale price of $3.9m or $0.61 per square foot represents a 38.5% decline in value over an 18-month holding period. Conversely, Crown and Petrus were able to realize 146.8% rate of return over a holding period slightly greater than two years. Pursuant to the April 12th, 2013 purchase agreement between Crown West and Mattamy, Crown West retains the 8.75 acre multi-family parcel on the hard corner to the southeast and Mattamy will construct and be reimbursed for horizontal improvements on that land.

By:
Paul Dionne
Director of Analytics
Vizzda.com

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