DMB Associates, Inc. Clears $24.4m in Victory at Verrado Sales

VIZZDA—February 5^th, 2014 — Four homebuilders acquired a total of 417 final platted lots in Phase I of Victory, a planned age-restricted community in the Verrado Master-Planned Community in Buckeye. The lots comprise all of Phase 1 of Victory and are a mixture of low and medium density lots. Total consideration tendered at time of sale was $24,400,800.

The four acquisitions are described in greater detail below:

The seller, a trust formed by DMB Associates, Inc. and the Caterpillar Foundation, retain a right of first refusal on the sale and its rights as master developer of Verrado. In addition to lot completion financing provided by DMB, deferred consideration, marketing fee, lot premium agreements are in effect between the homebuilders and DMB.

DMB Associates, Inc. previously acquired what was then the Caterpillar Testing Grounds in March of 2002 from Caterpillar for a “percentage of gross sales proceeds from dispositions under subdivision trust agreement”.

By:

Paul Dionne

Director of Analytics

Vizzda.com

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

Big Builder Activity in Verrado, 367 Lots Acquired in Two Days

Verrado Phase 3 South

VIZZDA--August 26th, 2013 -- 5 Builders have acquired lots in future phases of Verrado in sales totaling $25M+ in just two days at the close of August. Most of the purchases are within Phase 3 South- which totals 634 lots on 207.62 acres and was final platted on August 9^th, 2013. A portion of the lots—phases 3.408 & 4.505—are located in a different phase of Verrado.

As part of the transactions, all of the builders in Phase 3 South entered lot completion agreements with additional deferred consideration. 

VIZZDA subscribers access even more detail- including purchase agreement/financing detail, lot release information, historical pricing, direct contacts, planning data, and more!  

BUILDER	PARCEL	DESCRIPTION	LOT COUNT	SALE PRICE	PER LOT	PER FF
MERITAGE*	2.102 & 2.103	PARCEL 2.102- 45 LOTS 70'X130' TYP (45 OF 48 TOTAL). P.2.103- 4 LOTS 55'X120' TYP (4 OF 94).	49	$4,281,000	$87,367	$1,270
MATTAMY	2.104	58 LOTS 45'X120' TYP (58 OF 58 TOTAL) ON 11.16 ACRES GROSS	58	$3,190,000	$55,000	$1,222
AV HOMES	2.101 & 2.103	PARCEL 2.101- 80 LOTS 65'X120' TYP (80 OF 80 TOTAL). P.2.103- 90 LOTS 55'X120' TYP (90 OF 94).	170	$12,770,000	$75,118	$1,258
MARACAY	2.102 & 2.105	PARCEL 2.102- 3 LOTS 70'X130' TYP (3 OF 48 TOTAL). P.2.105- 29 LOTS 50'X120' TYP (29 OF 29).	32	$2,079,500	$64,984	$1,253
		sum (PH 3 South)	309	$22,320,500
LENNAR	4.505	36 LOTS 45'X115' (36 OF 36) ON 6.45 ACRES GROSS	36	$1,918,800	$53,300	$1,184
LENNAR	3.408	22 LOTS 45'X120' AVG (22 OF 22) 3.91 ACRES GROSS	22	$952,600	$43,300	$962
		total sum	367	$25,191,900

*Meritage’s portion was taken down by GSO Capital- dba Community Development Capital Group.