One Day After Three Lot Sales, TerraWest Buys Big in Eastmark

By: Paul Dionne | Vizzda.com

As we reported yesterday, Michael Jesberger of TerraWest Communities sold thirty-two of the forty-one lots that changed hands in the greater Phoenix area on the first day of the new quarter. Certainly the $2,773,155 in proceeds from those sales is nothing to sniff at—especially considering each of those deals priced above $1,500 per front foot—but now Jesberger has turned around and acquired 164 final platted lots in Eastmark from DMB Associates, Inc. for $10,323,600. Buy wholesale, sell retail, as they say.

The lots are located in Eastmark DU-7 North, which totals 394 lots on 93.03 gross acres for density units per acre ratio of 4.23. All lots have 17’ front setbacks and 5’ front and rear setbacks. The subject lots have the following dimensions:

Lots	Width	Depth
58	70’	135’
106	55’	124’

This gives us a blended per front foot price of $1,043, though at the time of sale, the lots are merely entitled and have not undergone horizontal improvements. Maracay Homes—the largest buyer from yesterday’s deals—had an agreement to purchase the lots outright which they assigned to TerraWest in exchange for, among other things, a purchase option on the lots. 

The deal was financed through a $4,424,400 lot completion deed of trust with DMB Associates, Inc., secured by half of the lots. Under the terms of the deed of trust, twenty-nine of the 70' x 135' lots have a lot release price of $68,310 and fifty-three of the 55' x 124' lots have a lot release price of $54,450. DMB Associates, Inc. retains rights as master developer and has separate deferred compensation agreements with both Maracay and TerraWest.