A parcel of land located Northwest of Battaglia Rd & Sunshine Blvd in Eloy was noticed for trustee sale by Mesquite Holding Group LLC. The 177.73-acre property is part of a larger 1,000 acre masterplan known as “Esperanza”. Documents indicate the site is planned for 455 single-family lots, a portion of which are improved, 123 density casita lots on 13.42 acres, and nearly 25 acres of commercial use.
The site was originally assembled in 2003 for $1M and briefly noticed for trustee sale on $2.55M debt with Hilton Financial Corp. This earlier trustee sale was canceled and transferred to a related entity in 2004; the new ownership group were able to refinance with $6.5M debt loaned by Specialty Trust Inc of Nevada.
K Hovnanian Homes entered a purchase option in 2005 for 88 lots within Unit 1; later described as 111 optioned lots. In 2006 the borrowers increased their loan to $13M. Additional junior debt was loaned in 2008, described as a $2M note with a local limited partnership.
Specialty Trust Inc filed bankruptcy in April 2010, and the note later transferred to Northlight Asset Management. Ultimately, Northlight sold the note in January 2014 to Mesquite Holding Group LLC; formed by Mesa attorney Mark T Atchley of Atchley & Delgado Law. The notice filing indicates $13M original principal, though the total amount owed totals $27,377,978. Auction is presently scheduled for April 29, 2014.