Thursday, May 8, 2014

855 Acres in Sun Valley Sold Pursuant to Settlement

By: Hadden Schifman |

May 7th, 2014—Following a court settlement reached in March 2014, an entity formed by W Holdings sold 855 acres at Sun Valley Parkway and the Bell Road Extension for $10,206,562 or $11,937 per acre. The buyer—an entity doing business as 10K LLC—has a history with the Sun Valley project dating back to 1995. The present transaction stems from years of litigation and appeals, resulting in a bankruptcy filing by the aforementioned W Holdings subsidiary in 2012. The court settlement describes an agreed upon $12,500 per acre, less claims and other factors. Randy Stolworthy of RRS & Company was the signatory for 10K LLC.
Lots A and B of Sun Valley Ranch

Sun Valley is a 13,260 acre project, located in northwest Buckeye at the intersection of Sun Valley Parkway and the Bell Road Extension near Festival Ranch. The project was originally assembled by Robert Burns who would later convey much of the project to Citibank/Citigroup. An investor group led by valley developer Bill Pope, attorney Leo Beus and luxury realtor Sandra Baldwin formed the entity 10K LLC and purchased over 10,000 acres in the project on June 8th, 1995 for $9,245,171 or $923 per acre. Court documents paint a complex history for Sun Valley- stemming largely from the decision to retain Mr. Burns and Brent Hickey to manage the land for 10K LLC.

In this capacity, Burns and Hickey suggested a plan in 1998 to assemble an additional 3,244 acres in the area from the Spurlock Family and in sell the entire 13,260 acres at $5K per acre as well as profit participation to another buyer--later discovered to be the W Holdings entity--in a simultaneous transaction. This “flip” transaction failed to materialize, resulting in several lawsuits and counter-suits between and among the parties.

Following extensive litigation and several appeals, W Holdings acquired interest in the property in the mid-2000s through a court order enjoining 10K LLC to perform under the previously negotiated "flip" transaction. That decision was later reversed by the State Court of Appeals and the suit was subsequently declined by the State Supreme Court. The settlement reached in March against the W Holdings entity is pursuant to that entity's Chapter 11 Bankruptcy filing.

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