Southwest Value Partners and Elliott Pollack Sell North Scottsdale Lots for $6.1m

VIZZDA—January 14^th, 2013 — In an all cash transaction, Taylor Morrison has acquired roughly eighteen acres of raw land at the northeast corner of Scottsdale Road and Westland Drive for $6.1m or nearly $370k per acre. The site is planned for forty single-family lots with standard dimensions of 60’ by 100’ for a minimum lot area of 6000 ft² and a project density of 2.2 density units per acre. The property was platted as “Villas at the Boulders”, a 38-lot subdivision on 16.4925 acres, in March of 2008, though the original developer was forced to sell the property prior to beginning construction.

Said original developer acquired the un-entitled land on July 18^th, 2005 for $7.92m—or roughly $11 per square foot—in an all cash transaction. In December of 2008, the parcel was included in the Klondike Land Portfolio, a twelve-property assemblage comprised of five undeveloped parcels, four fully finished parcels and three partially improved parcels slated for a total of 3,439 single family residences. The cash purchase price of $21,019,336 represents a per planned lot price of just $6,112. Using per planned lot prices as a basis for comparing the two transactions, Southwest Value Partners and Elliott Pollack realized annualized appreciation of roughly 470%. This measure is not an apples-to-apples comparision, however, due to the distressed nature of the prior sale, the (albeit slight) change in the planned units and the much larger and diversified product mix in the prior sale.

By:

Paul Dionne

Director of Analytics

Vizzda.com