Two Homebuilders Take Down 134 Lots in Verrado for a Combined $6.516m

November 20th, 2013 -- DMB Associates, Inc. (DMB) has completed the sale of 134 final platted lots in Verrado Phase 3 South, Phase C to Maracay Homes and GSO Capital as part of its existing land banking arrangement with Meritage Homes. The 272 lot subdivision sits on 67.23 acres just east of the southeast corner of Verrado Way and Thomas Road and received approval for its final plat on November 8th, 2013. The transactions break down as follows:

• GSO Capital (dba Community Development Capital Group) acquired 74 lots comprised of 34 of 34 lots in parcel 2.201 and 23 of 23 lots in parcel 2.204, both with typical dimensions of 55' x 120' as well as 17 of 78 lots in parcel 2.205 with typical dimensions of 75' x 135' for a total of $3,383,700 or $45,725 per planned lot and $767.2 per planned front foot. A deed of trust accruing to the benefit of DMB and secured by thirty of the lots stipulates to lot completion payments of $972,400 for parcel 2.201, $657,800 for parcel 2.204 and $625,600 for parcel 2.205. This acquisition is pursuant to an existing land-banking arrangement between GSO and Meritage Homes and was administered by Steve Benson of Rose Asset Management.

• Maracay Homes acquired 60 lots, or substantially all remaining lots in parcel 2.205, with typical dimensions of 75' x 135' for $3.132m or $52.2k per lot planned and $696 per planned front foot. This transaction was also partially financed with deferred lot completion payment to DMB, specifically $2,200,800 secured by 30 lots in parcel 2.205.

Both transactions were pursuant to existing purchase agreements with DMB dated May 9th, 2013. Per those agreements, DMB retains a right of first refusal on the lots, unrecorded deferred compensation and marketing fee agreements with Maracay, GSO and Meritage. In August, Vizzda reported on the sale of 367 lots to four home builders including 49 lots to Meritage via its land-banking arrangement with GSO and 32 lots to Maracay.

By:
Paul Dionne
Director of Analytics
Vizzda.com

GSO Capital buys 106.31 acres in Peoria for $16.5m

 Vizzda – August 8, 2013 – GSO Capital purchased 106.31 acres of "The Meadows" in Peoria for $16.5m or $155,206 per acre from Communities Southwest. An additional aspect of the deal is that K Hovnanian Homes has optioned the land. GSO Capital has worked closely with K Hovnanian Homes, providing a $250m cash infusion in 2012 (LINK) and operating as a land banker for K Hov. Steve Benson of Rose Asset Management was GSO Capital's contact for the deal, while president Mike Kern and executive vice president Luka Vignjevic handled the deal for Communities Southwest and Chad Fuller represented K Hovnanian Homes.

From the Communities Southwest website (LINK):

The Meadows is a planned 694 acre residential community located in Peoria, Arizona at the northwest corner of 91st Avenue and Deer Valley Road. This community is planned to include a variety of single family residential lots sizes with potential densities ranging from 3.6 dwelling units per acre down to 1.1 dwelling units per acre. Residents will enjoy a vast network of landscaped common areas, a 10-acre City Park, a centralized elementary school, and a community pool and recreation center all linked by a network of community paths and trails.

Communities Southwest acquired this land as 694.14 acres from the State of Arizona on April 11, 2007 for $61.1m or $88,022 per acre with $6.11m down, an administrative fee of $860k – this figure including a $500k broker fee – and $5.99 m debt with the State of Arizona; the note bears a 10.76% rate of interest, 25-year amortization schedule and matures on February 15, 2014, at which time the balloon payment of $51,367,845 is due in full.

Edward Moore
Director of Research

emoore@vizzda.com
www.vizzda.com