By: Paul Dionne | Vizzda
Just days before it was set to expire, local developer Taber
Anderson’s True Life Companies—with backing from Russian Conglomerate, Renova
Group—has exercised its option to purchase more than 160 acres of vacant land previously platted for residential development in Scottsdale. The $10.5m purchase price was
fully financed by YAM Management—the real estate investment vehicle for founder
and former chairman of GoDaddy, Bob Parsons. Parsons has made several acquisitions
in the area recently and has financed the acquisition of distressed property by others in both Scottsdale and Paradise Valley.
Anderson took the site—located at the southeast corner of
132nd Street and Dynamite—through the entitlement process in 2007 and
final plat of Desert Estates at Pinnacle Peak was approved in December of that
year. Located within the 220-acre Reata Ranch assemblage, Desert Estates is
160.045 gross acres platted for 73 custom home lots for an overall density of
0.45 density units per acre. Plans changed in 2012, however, when plans to
develop the property as a 330 room ranch lodging featuring thirty-five lodge
units, seventy five cabins, 120 casitas and 100 villas.
The seller in the transaction was Paul and Pamela Austin of
Toronto, Canada, in care of local real estate broker, Saul Moretsky. The
Austins previously acquired this parcel in two transactions in 1985 and had
also taken the property through entitlement prior to selling to Anderson for
$19m in July of 2007 and carrying back $15.75m in purchase money debt. Anderson
and Renova ended up returning the land to the Austins, but retained an option
to purchase the property. This option was previously set to expire in 2011 but
was modified to extend the deadline until August 31st of this year.
The prior seller carry debt with the Austins was released with the current
sale.
The planned lodging use—as well as Parsons’ financing of the
deal—recall the recent settlement between Jerry Ayoub and iStar over the site
of the planned Ritz Carlton in Paradise Valley. In that case, Parsons issued a
$55m deed of trust secured by the Ritz Carlton site in June which allowed Ayoub
to retain control of the troubled project. While it is unclear what percentage
of the settlement amount is comprised of that debt, as that information was not
disclosed in court documents, should either of these sponsors default on their
obligation to YAM Management, Parsons can foreclose on the respective property
at a much lower cost basis than would otherwise be possible in the open market.
To Contact the Author:
Paul Dionne – pdionne@vizzda.com
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