Three Home Builders Begin Second Quarter with Lot Rolls

By: Paul Dionne | Vizzda.com

April 2^nd, 2014 – Three home-builders—Maracay Homes, K Hovnanian Enterprises and Woodside Homes—acquired forty one lots in three subdivisions for a combined $3,502,049. The lots, a mix of partially improved and fully finished, all commanded per front foot prices above $1,450, with the Maracay acquisition in Pastorino topping out at $1,585.5 per front foot. The seller in all but one deal was Michael Jesberger of TerraWest Communities; K Hovnanian Enterprises acquired its lots through an existing land banking arrangement with GSO Capital Partners.

As stated above, Maracay Homes acquired eight lots measuring 60’ x 120’ in the Pastorino subdivision for $761,040 or $1,585.5 per front foot. Additionally, Maracay took down an additional fifteen lots of varying dimensions in Bridges at Gilbert for $1,306,200 or $1,536.71 per front foot. Woodside Homes was also active in the Bridges at Gilbert subdivision, buying nine lots for $705,915 or $1,568.7 per front foot. Finally, K Hovnanian acquired nine lots in Rock Springs for $729,254 or $1,458.5 per front foot.

Dormant Queen Creek Subdivision Springs Back to Life, Purchased by Ryland in $19M+ Deal

VIZZDA—August 14^th, 2013 — Ryland Homes through its signatory, Robert Zambie, purchased 283 lots in La Sentiero—also known as Rittenhouse Ranch—for $19,596,635. The selling entity included Mr. Jeff Carlson of Parcap and Mr. Gil Tenzer of Contrarian Capital.

The acquisition includes a mix of partially improved at curb & gutter and finished lots:

LOT SIZE	R1-7 60'X115'	R1-8 75'X120'	R1-12 90'X130'
FINISHED	56	39	15
PARTIAL IMPROVED	60	77	36
COMMUNITY TOTAL	138	119	51

La Sentinero, located north of the northwest corner of Rittenhouse & Cloud Roads, totals 308 lots on 109.08 gross and 106.49 net acres for a project density of 2.89 density units per acre. The project was platted on November 18^th, 2005.

The joint-venture between Parcap and Contrarian Capital acquired the 283 lots transacting today on January 31^st, 2008 from KB Homes for $6,831,663. As part of the sale, KB Homes assigned a phased construction bond agreement with the town of Queen Creek, which was postponed in exchange for a lot sale prohibition. As noted in the Vizzda Property Report on the transaction, Ryland is bound by the same lot sale prohibition agreement but recently submitted the following plans to the Town of Queen Creek:

Town of Queen Creek Planning Documents 

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By:

Hadden Schifman

Managing Director

Vizzda.com

KB Homes Purchases 56 Finished Lots in Cooley Station at $58,300 Per Lot

VIZZDA—October 5^th, 2012—Entities formed by Irvine, CA-based Dolphin Partners and local Quantum Capital sold a total of 56 finished lots in Cooley Station for $3,264,800. The transaction was split in two sales

• 15 Lots for $874,500
• 41 Lots for $2,390,300

KB Homes acquired the lots per a prior purchase agreement dated July 26^th, 2012 and requested to transfer home plans at the City of Gilbert, found here.

Cooley Station is located in Gilbert—West of the Northwest corner of Pecos and Recker Roads. The subject lots have a minimum of 40’ x 98.5’ and are zoned SF-6. Forty-five of the lots are located in Phase II which totals 227 lots, and eleven of the lots are in Phase I which totals 322 lots. This acquisition consists of the remaining finished lot inventory in both Phase I and Phase II.

Quantum and Dolphin previously purchased the lots in two transactions—acquiring the subject 41 lots from Saybrook on September 17^th, 2010 for $1.23m. The remaining 15 lots were purchased in a bankruptcy sale April 4^th, 2011.

More Activity in Bridges at Gilbert as Meritage Joins Builder Group with ±$13M Acquisition

VIZZDA—September 13th, 2012 — Meritage Homes purchased approximately 92.7 acres net or 110 acres gross at the Southwest corner Queen Creek & Recker Roads in Gilbert for $13,014,400. This price equals $140,392 per acre or $758 per front foot. The seller was a venture formed by JEN Partners and TerraWest Communities. 

The subject land is divided into parcels 2-1, 2-2 and a combination of parcels 2-3 and 2-4. The parcels are platted for 233 lots: 

VIZZDA previously reported August 17^th, 2012 a group of six homebuilders acquiring a total of 596 lots on 132.53 acres in the Bridges “East” community for a total sale price of $23,114,317. Click here to check out that sale.

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Regent Properties Sells 91 lots in Greer Ranch North In Two Transactions Over 3 Weeks

Regent Properties of Arizona sold 49 finished lots to Richmond American Homes of Arizona for $2,337,300 within the Greer Ranch North community, located South of the Southwest corner of Reems and Catus Roads in Surprise.

The 49 lots in Phase I that conveyed average 53' x 115'. The Greer Ranch North community consist of two phases. Phase I totals 411 lots on 127.75 gross acres, Phase II totals 467 lots on 128.48 gross acres; totaling 878 lots on 256.23 gross acres.

This sale comes on the heels of Regent Properties recent disposition 42 other lots in Phase I (all measuring 63' x 115') to Gehan Homes on August 20th, 2012 for $2,381,400 or $900 per front foot. Regent originally acquired the property in November of 2008 as 620 lots in Phases I & II of the community for $9,384,171.

By:
Dan Alpers
Director of Municipal Outreach
dalpers@vizzda.com

Taylor Morrison Acquires 67 Finished Lots at $2,222 Per Front Foot or $200K Per Lot in Cave Creek

VIZZDA--September 5th, 2012 -- Lennar Homes sold 67 finished lots to Taylor Morrison for $13.4M within their Lone Mountain community, located North of the Northeast corner of Lone Mountain Rd & 56^th Street in Cave Creek.

The acquired lots all measure 90’x’130’ or 11,700 SF and are zoned RE-35. Lone Mountain totals 794 lots on 608 acres. US Home Corp--a subsidiary of Lennar Homes--originally acquired all 608 acres from the Arizona State Land Department at auction in 2000 for $38.5M but the transaction was not recorded until May 2nd, 2007. The Arizona State Land Department has a continuing participation agreement with Lone Mountain's builders. Lennar subsequently sold portions of the community to Pulte Homes.

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60 Finished Lots in Ash Creek Estates Purchased for $4.35M

VIZZDA–August 21, 2012 – Notebuyers Jerry Ledderhof of Jorah Investments in Ontario, CA and Robin Lang, a Houston-based investor, sold 60 final platted lots within the Ash Creek Estates community to Fulton Homes for their “Mendocino at Ash Creek” branded community. In the deal, which closed August 20^th, Fulton Homes put $50.0K down and financed the rest with a $128,941,196 existing line of credit with Starwood Capital Group of Greenwich, CT.

Ash Creek Estates is an 85.3 acre planned area development located at the southwest corner of Signal Butte and Ocotillo Roads in Queen Creek. The conveying 60 lots represent a significant portion of the 144-lot community. The lots have minimum dimensions of 115’x135’ and range from 15,300 to 25,700 ft² in size. Fulton is offering 4 single-story home plans ranging from 3,014 to 4,450 ft² and featuring 4+ car garages and offering up to 7 bedrooms and 5 baths.

Ash Creek Estates was developed by Paul Jorde who acquired the land prior to July 28^th, 2004 when he took a $4.35M construction loan on the property with M&I Marshall & Ilsley Bank. The community final plat was recorded November 3^rd, 2005.  M&I sold the note to Ledderhof and Lang October 2^nd, 2008 who then foreclosed on Jorde, taking 129 lots, with notice of trustee sale issued November 24^th, 2008 and Trustee Sale February 23^rd, 2009 with a $4.35M credit bid amount.

By:

Edward Moore

Director of Research

emoore@vizzda.com

Richmond Closes on 98 Finished Lots in Cortessa at $45K per Lot

VIZZDA—August 8th, 2012 – Richmond American Homes purchased 98 Finished Lots within Cortessa for a total of $4,410,000 or $45K per lot, $643 per FF. The sale was split in two acquisitions: 89 lots purchased for $4.005M and 9 lots at $405K. Cortessa is located in the Waddell area of West Phoenix near the border of Buckeye. The property is north of the northeast corner of Perryville Rd & Olive Ave. The community totals 1,732 lots on 613 gross acres, excluding tracts. The 98 lots in this sale are all 70’x125’ (8,750 SF, 7,650 SF MIN) and are zoned R1-6 and R1-8. A total of 119 70’ wide lots are planned in the community.

Alan Hamberlin of Courtland Homes was the Seller. He originally purchased 120 lots within Cortessa from Standard Pacific for $8.4M. He placed $2,779,789 down and financed the remainder with  $5,620,211 debt issued by the Bank Of Oklahoma. Hacienda Homes was granted a lot option agreement. Hamberlin acquired his own note November 21st, 2007 from Bank of Oklahoma and later recorded a notice of trustee sale February 9th, 2011. 89 Lots reverted at trustee sale auction August 17th, 2011 to a Hamberlin-related entity with a $4M credit bid. Nate Nathan brokered the sale. 

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BY:

Hadden Schifman
Managing Director

Hadden@VIZZDA.com

Hovnanian Enterprises Sells Lots at Stratland Ranch to GSO Capital Partners For $7.95m

VIZZDA—July 13^th, 2012 – Hovnanian Enterprises of Red Bank, NJ has completed the sale of 56 finished lots to GSO Capital Partners, the credit affiliate of the Blackstone Group, for $7.95m or $1350 per front foot. The lots consist of twenty nine lots at 90’ x 150’ and twenty seven lots at 125’ x 160’ in a 143-lot, 81.3 acre subdivision zoned SF-10.

This sale is part of a larger land banking agreement between Hovnanian and GSO, whereby GSO provides up to $125m in funding to acquire a portfolio of finished lots and option the acquired properties back to Hovnanian on a quarterly basis. To date, the partnership has acquired six land parcels totaling 620 lots.

GSO also increased their holdings in Hovnanian by exchanging $13.4m outstanding debt in three notes of $3m 7.5% Senior Unsecured Note due 2016, $9.1m 8.625% Senior Notes due 2017 and $1.3m in Senior Subordinated note for 3,398,291 shares of Hovnanian’s Class A Common Stock valued at $2 per share.

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By:

Paul Dionne

Research Analyst

pdionne@vizzda.com

K. Hovnanian Homes Purchases Stratland Shadows Lots from Wells Fargo

 VIZZDA--June 6th, 2012 -- Following the announcement of its first quarterly profit in two years, K. Hovnanian Homes has acquired 57 custom lots in Stratland Shadows for $8m or $1,317 per front foot.

The portion transacting today was previously obtained as a 65 lot parcel by Cachet Homes July 16^th, 2006 for $11,405,569. Cachet encumbered the property with $13.2m in A & D debt and a $24m revolving line of credit, both with Wells Fargo Bank. Wells Fargo acquired that portion through foreclosure proceedings commencing January 1^st, 2010 and concluding with a reversion to beneficiary April 21^st, 2010 with a $4.5m credit bid on $37.2m outstanding debt. James Greathouse was signatory for Wells Fargo Bank.

Lot dimensions are as follows: 30 lots – 90’ x 150’; 27 lots – 125’ x 160’. In total, Stratland Shadows is comprised of 142 lots on 81.92 gross acres; the lots are zoned SF-10. The signatory for K. Hovnanian Homes—Chad Fuller—indicated that the transaction was all cash and that no new debt was recorded with sale.

By:

Hadden Schifman

Managing Director

hadden@vizzda.com

Paul Dionne

Research Analyst

(202) 258-9508

pdionne@vizzda.com

Fulton Homes Purchases Freeman Farms, Phase 1A & Acreage

VIZZDA, May 11, 2012 – Fulton Homes has completed the purchase of 73 final platted lots north of the northwest corner of Greenfield & Chandler Heights Roads and 234.8 acres of undeveloped land north of the northwest corner of Ellsworth & Rittenhouse Roads in separate transactions. 

The Lots average 160’ x 220’ or 35k SF and total 89.1 acres—77 acres net—zoned SF-35. The sale price was $5.11m or $62,939 per acre, $70k per lot or $436 per front foot. Seller was Jerry Moyes of Swift Transportation.

The undeveloped land is under a development agreement between the buyer and the sellers—Adam & Stephen Hatch—dated 5/10/2012, whereby the seller retains 39 acres. The sale price was $10,565,860 or $45k per acre. 

Norman Nichols of Fulton Homes was signatory to both transactions. No new debt was issued with sale though Fulton Homes has an $128,941,196 existing line of credit with Starwood Capital of Greenwich, CT.

By:
Paul Dionne
Research Analyst
(202) 258-9508
pdionne@vizzda.com