News

CAPITAL PACIFIC HOMES SPENDS $26+ MILLION FOR 262 ACRES IN SURPRISE . . . PLANS 865 RESIDENCES

Surprise - Capital Pacific Homes in Mesa (Clyde Dinnell, div. pres.) plans to build 865 residences north of Union Hills Drive and west of 195th Avenue in Surprise. The builder paid $26+ million to acquire the 262 acres in three transactions. The sellers were companies formed by investor Elliott Pollack in Scottsdale. The deal was brokered by Mike Schwab and Mike Chasse of Arizona Land Advisors in Scottsdale, Nate Nathan and Joe Colucci of Nathan & Associates Inc. in Scottsdale and Michael Martindale, Joe Kachuroi, Jeremy McArthur and Paul Flori of Commerce Realty Advisors in Scottsdale. Ed Smith, v.p. of land acquisitions for Capital Pacific, says the company wants to obtain approval for a variety of lots. Plans also include a 5.8-acre commercial site. No word on housing product or pricing. Models expected to open year-end 2007. The community is being called Foothills East. Capital Pacific Homes in Mesa is a subsidiary of Newport Beach, Calif-based Capital Pacific Holdings Inc. (ASE:CPH). Financing comes from the parent firm.

PENNSYLVANIA FIRM ASSEMBLING LAND IN TONOPAH FOR MASTER-PLANNED COMMUNITY

Tonopah - A company formed by investor Bruce Toll of BET Investments in Huntingdon, Pa. is assembling land west of Phoenix in Tonopah to develop a master-planned community of 3,000+ residences. The property is generally bounded on the north by Bethany Home Road, on the south by Indian School Road, on the east by 339th Avenue and on the west by 343rd Avenue. To date, Toll has spent more than $24 million to buy roughly 770 acres in 11 transactions. Companies formed by investor Greg Vogel of Scottsdale were the sellers in four deals totaling just under $10.69 million. Companies formed by a group of investors, including Dennis DeConcini, Dino DeConcini and Mary DeConcini of Tucson, were the sellers in three deals totaling $5.83+ million. Vogel, a principal with Arizona Land Advisors in Scottsdale, is also assisting BET Investments with the assemblage. The property is contiguous east of the 20,000-acre Belmont master-planned community. Scott Moore of BET Investments says the company intends to complete the assemblage, obtain entitlement and sell parcels to multiple home builders. Rooftops are still about three years away. BET Investments has been active on the west side. In October, BREW reported BET Investments paying $25.635 million to purchase 290 acres located along both sides of Interstate 10 and east of Dean Road in Maricopa County.

LAS VEGAS-BASED INVESTOR ACQUIRES 152-ACRE TRACT IN BUCKEYE FOR MIXED-USE

Buckeye . In a deal scheduled to close at press time, a company formed by investors Michael Chernine and Randy Black, Jr. of Land Baron Investments in Las Vegas was expected to pay $14.5 million to buy 152 acres within the Elianto community at the northwest corner of Sun Valley Parkway and Thomas Road in Buckeye. The seller was a partnership formed by the Gardner family in Mesa (Elbert Gardner, member). The transaction was brokered trough Brent Moser and Brian Rosella of Grubb & Ellis\BRE Commercial in Phoenix. Land Baron Investments intends to sell the property in parcels. Tentative plans call for 80 acres of residential, 36 acres of commercial and 36 acres of mixed-use. The Las Vegas investors likely will sell parcels and possibly develop a portion with a joint venture partner. The Grubb & Ellis agents have the marketing assignment. Land Baron now has an ownership interest in roughly 1,150 acres on the west side that is planned for residential and commercial use. The nine properties are located in Goodyear, Buckeye, Surprise and Glendale.

SHEA HOMES SPENDS $41+ MILLION TO ACQUIRE 860 ACRES IN BUCKEYE FOR 2,500 RESIDENCES

Buckeye . Shea Homes Limited Partnership in Scottsdale (Buddy Satterfield, pres.) plans to develop a 2,500-unit master-planned community in Buckeye being called Monte Verde. The builder paid just under $41.365 million to buy the roughly 860-acre site. The seller was Marven Investments LLC of Buckeye (Martha Youngker, Dorothy Turley, Linda Carneal, Mary Jane Lynd, principals). The sale was brokered through Nate Nathan and Casey Christensen of Nathan & Associates Inc. in Scottsdale. The property is bounded on the north by Lower Buckeye Road, on the south by the Roosevelt Irrigation District Canal, on the east by Watson Road and on the west by about one-quarter-mile west of Miller Road. Shea Homes intends to build on a portion of the lots and the company will sell a portion. Nathan and Christensen are marketing. A variety of lot product will include 75 acres of higher density, cluster units, and home sites averaging 5,750 sq. ft. (50x115), 6,360 sq. ft. (53x120), 7,250 sq. ft. (58x125), 7,875 sq. ft. (63x125), 8,750 sq. ft. (70x125) and 12,150 sq. ft. (90x135). No word on Shea.s housing product or pricing. The builder hopes to have models open by first quarter 2008. Plans for Monte Verde also include a 55-acre site to be developed as Youngker High School and 33 acres for commercial use. The commercial land will be retained and eventually developed by Shea Properties, a newly-created commercial development company. Shea Homes, a subsidiary J.F. Shea Inc. in Los Angeles, gets its financing from the parent firm. Over the years, BREW has reported Shea building thousands of homes in the Phoenix area.

AREAD CLOSES ON $34+ MILLION DEAL IN SECOND TAKE DOWN AT RAINBOW VALLEY RANCH

Goodyear . A company formed by investor Nariman Afkhami of AREAD Inc. in Scottsdale paid $34.125 million to purchase 1,365 acres of a planned 2,347-acre community in Goodyear called Rainbow Valley Ranch. The seller was a company formed by Harvard Investments Inc. of Scottsdale (Craig Krumwiede, pres.). In July 2005, BREW reported AREAD working to assemble the land in four deals totaling $60.352 million. Howard Weinstein and Derek Harris of Weinstein & Harris in Scottsdale are brokering the assemblage. The property, bisected by Riggs Road, generally is bounded on the north by Chandler Heights Road, on the south by Hunt Highway, on the east by Sarival Road and on the west by just east of Rainbow Valley Road. AREAD intends to develop a 7,000-lot residential community on the land. The company will sell developed lots to multiple builders. Weinstein and Harris have the marketing assignment. AREAD previously closed on 253 acres of the assemblage. Heter Living Trust of Phoenix was the seller in that $2.03 million deal. Investors Al Lueck and Jerry Lueck of Goodyear are selling 489.5 acres for $17 million in a sale set to close next month. Investor Gordon Hardy of Paradise Valley is selling 240 acres for $7.2 million in a deal slated to close in 2007.

LAS VEGAS INVESTORS CLOSE $64+ MILLION IN LAND ACQUISITIONS ON WEST SIDE

Avondale/Phoenix/Buckeye . Companies formed by investors Eddie Gutzman and Jeff Chain of Millennium Properties & Development Inc. in Las Vegas paid $64.59 million to purchase a combined 500 acres in Avondale, Phoenix and Buckeye. The land was acquired from three different sellers and is planned for a variety of uses. A company formed by the Las Vegas investors paid $28 million to buy 147 acres at the southwest corner of 99th Avenue and Indian School Road in Avondale. The seller was the estate of Gladys Boulais in Glendale (Richard Boulais, et al., beneficiaries). The sale was brokered through Michael Martindale, Joe Kachuroi, Jeremy McArthur and Paul Flori of Commerce Realty Advisors in Scottsdale. Roughly 60 to 70 acres are targeted for 400 single family and multi-family units and the balance is planned for office and commercial uses. Chain says the company will develop a land plan and market the property. Marketing agent still to be selected. Another company formed by Gutzman and Chain paid $25 million to acquire 213 acres at the southeast corner of 83rd Avenue and Interstate 10 in Phoenix. The seller was investor David Rousseau, et al., of Phoenix. The sale was negotiated by Tracy Glass of Hogan & Associates Inc. in Tempe, and Mike Haenel and Tony Lydon of Grubb & Ellis/BRE Commercial in Phoenix. On the same day of that sale, records show Gutzman and Chain resold 72 acres of the property for $15 million. The buyer was a company formed by Great American Capital in Las Vegas (Yoel Iny, pres.). That acreage, spread among three parcels, is targeted for mixed uses. Sources say Great American Capital intends to develop retail, office and industrial buildings on the land. No further details on those plans. Gutzman and Chain resold the other 141 acres to a venture comprised of Millennium Properties and Great American Capital. The company paid just over $10.176 million for that acreage, which is targeted for 1,500 single family and multi-family units in a community being called Capri. Chain says the residential land will be resold to multiple builders. Nate Nathan, Dave Mullard and Casey Christensen of Nathan & Associates Inc. in Scottsdale have the marketing assignment. Sales are expected to commence in about nine months. Millennium Properties paid just under $11.59 million to buy 133 acres located along the west side of State Route 85 and about one-half-mile north of Southern Avenue in Buckeye. The seller was Sexson-West Properties LLC in Phoenix (Timothy Sexson, Ardath West, et al., principals). The deal was brokered by Jason Hyams of CB Richard Ellis in Phoenix. Millennium Properties will develop a land plan for the property and either sell the acreage or bring on a joint venture partner to develop the site. With the land purchases, Millennium Properties has now invested $200+ million in Phoenix-area real estate.

TRIYAR CAPITAL PLANNING 5,500-LOT COMMUNITY IN TONOPAH AREA WEST OF PHOENIX

Tonopah . A company formed by TriYar Cos. LLC in Phoenix (Steven Yari, Shawn Yari, Bob Agahi, principals) plans to develop a 5,500-lot community west of Phoenix in the town of Tonopah. TriYar paid $20 million to buy the 1,400-acre tract. The seller was a company formed by investors Mac Bowell of Scottsdale, and William Ong and Jennifer Ong of Honolulu, Hawaii. The sale was brokered through Bryan Waggoner and Tony Bagneschi of Insight Land & Investments in Phoenix. The property is bisected by Interstate 10 and is bounded on the east by 427th Avenue and on the west by 443rd Avenue. The north boundary is the alignment of Bethany Home Road and the south boundary is the alignment of Indian School Road. The parcel, which includes about 80 acres of commercial land, is roughly 15 miles west of the Sun Valley Parkway. Agahi says the property was purchased as an investment and eventually the company will sell a variety of lots to multiple home builders. Marketing assignment still to be awarded. Over the years, BREW has reported TriYar involved in numerous real estate investment and development deals in the Valley (see related story on P. 8).

PULTE PLANNING NEW ANTHEM COMMUNITY IN SUN VALLEY AREA OF BUCKEYE WITH 12,500 HOMES

Buckeye . Pulte Home Corp. in Scottsdale (John Chadwick, area pres.) plans to develop a new Anthem community with 12,500 residences in the Sun Valley area of Buckeye. The builder is assembling the 4,042-acre tract in transactions totaling $83+ million. The property, called Anthem at Sun Valley South, is five miles south of Interstate 10 along the east side of Sun Valley Parkway. The site is bounded on the north by Northern Avenue and on the south by Missouri Avenue. Pulte paid just under $45.19 million to acquire 998 acres from a company formed by Stardust Development Inc. in Scottsdale (Jerry Bisgrove, principal). That deal included an option from Stardust on 1,413 acres that Pulte will buy for $27 million. Pulte paid $10 million to acquire 1,590 acres from companies formed by investors Mike Musulin, Roger Smith, Gil Gillenwater and Bill Bliss of SDI Group in Scottsdale. The SDI principals will also receive a back-end participation once homes are sold. Pulte acquired another 41 acres in a $1.23 million deal from a trust formed by Bliss. Josh Hartmann of Pulte Homes says the company will develop an active adult and conventional housing community similar to the 5,500-acre Anthem project in north Phoenix. That development is nearing build out. Plans for Anthem at Sun Valley South include two, 18-hole golf courses, recreation centers, parks, trails and schools. Pulte will develop conventional housing product on lots averaging 5,280 sq. ft. (48x110), 5,520 sq. ft. (48x115), 6,670 sq. ft. (58x115), 7,820 sq. ft. (68x115) and 11,625 sq. ft. (93x125). The active adult home sites will average 5,060 sq. ft. (46x110), 6,490 sq. ft. (59x110) and 7,590 sq. ft. (69x110). Conventional homes to range from roughly 1,200 sq. ft. to 5,000 sq. ft. Active adult residences to range from around 1,200 sq. ft. to 2,500 sq. ft. Pricing still to be determined. Models slated to open year-end 2007. Pulte Home Corp. in Scottsdale is a division of Pulte Corp. of Bloomfield Hills, Mich. (NYSE:PHM). The parent firm provides financing. Over the years, BREW has reported Pulte building thousands of homes in the Valley

INVESTOR SPENDS $35 MILLION FOR 380 ACRES OF MIXED-USE LAND AT ELIANTO IN BUCKEYE

Buckeye . A company formed by investor Tom Cummings of All State Investment Corp. in Tempe paid roughly $34.954 million to acquire 380 acres of mixed-use land within the Elianto planned community in Buckeye. The seller was a company formed by Lennar Communities Development Inc. in Tempe. The transaction was brokered through Michael Martindale, Joe Kachuroi, Jeremy McArthur and Mark Brower of Commerce Realty Advisors in Scottsdale. The acquisition included a 360-acre parcel targeted for mixed uses at the northeast corner of Indian School Road and Sun Valley Parkway and a 20-acre commercial site at the northeast corner of Thomas Road and Sun Valley Parkway. The smaller tract is at the entrance to the 2,611-acre Elianto project. Cummings says he likely will sell that site to a retail developer. The parcel is suitable for a grocery-anchored neighborhood center. Cummings has not decided if he will resell the larger parcel, or form a joint venture with a partner to develop the acreage. That site is targeted for office, retail, hotel and multi-family uses. All State Investment Corp. is using an in-house designer to come up with a preliminary land plan. Marketing agent still to be selected. Cummings says he closed on the acquisition in just two weeks. Mortgages Ltd. in Phoenix provided financing. The investment in the Elianto property is the first for All State Investment on the west side. The company owns more than 9,000 acres in Pinal County. In April 2004, BREW reported Lennar Communities paying $10.25 million to buy the Elianto property and planning to develop the land as a mixed-use residential community. The property has zoning approval for 9,000 residential units. Lennar Communities is selling a portion of the lots to U.S. Home Corp. and Greystone Homes, both Tempe-based builders and affiliates of Lennar.

INVESTOR PAYS $8.57 MILLION FOR SECTION IN HARQUAHALA VALLEY TARGETED FOR 2,000 HOMES

Maricopa County . Companies formed by investor Christian Lippert of Austria paid just under $8.57 million to acquire 640 acres at the southeast corner of the 491st Avenue and Indian School Road alignments in the Harquahala Valley area of Maricopa County. The seller was investor Giora Ben-Horin of Phoenix. The sale was negotiated through Ben Heglie of Hogan & Associates Inc. in Tempe. Heglie, who represents Lippert, says the property was acquired for investment purposes. The land, which is not zoned, eventually will be developed as a residential community with more than 2,000 residences. Heglie says development of the area is still about five years away. Lippert may be interested in additional investment opportunities in the Valley. Over the years, BREW has reported Ben-Horin buying and selling land parcels throughout the Phoenix area.

JF COS. PLANNING 6,100-LOT COMMUNITY IN TONOPAH AREA WEST OF PHOENIX

Maricopa County . A company formed by JF Cos. in Scottsdale (Joel Farkas, principal) paid just over $10.89 million to acquire 1,110 acres along both sides of 411th Avenue and north of Interstate 10 in the Tonopah planning area of Maricopa County. The seller was a limited partnership formed by investors Larry Bell and Linda Bell of Columbia Properties in Scottsdale. The sale was negotiated through Culver White and Todd Sells of Russ Lyon Realty in Phoenix. Keith Watkins of JF Cos. says the company intends to take the property through the entitlement process and sell platted and engineered lots to one or more builders. Marketing agent still to be picked. The home sites should be available in 18 to 24 months. Farkas, who recently moved his operations to the Valley from Denver, has been an active buyer and seller of real estate in the Phoenix area. Farkas is interested in additional real estate investment and development opportunities in the Valley. Two weeks ago, BREW reported another company formed by Farkas selling a 24-acre property in Goodyear that is targeted for development as a 512-unit apartment project and a retail plaza. Fairfield Residential of San Diego is the buyer of that acreage, located east of the southeast corner of Estrella Parkway and Van Buren Street. Over the years, BREW has reported the Bells buying and selling real estate in the Phoenix area.

WOLFSWINKELS PAY $94.35 MILLION FOR 15,000+ ACRES WEST OF PHOENIX IN HARQUAHALA VALLEY

Maricopa County . Companies formed by members of the Conley Wolfswinkel family in Tempe paid $94.35 million in cash to buy 15,470 acres of farmland located about 35 miles west of Phoenix in the Harquahala Valley area of Maricopa County. The seller was Southwestern Agricultural Services Inc. of Carson City, Nev. The sale was brokered by Ryan Kealy of Insight Land & Investments in Phoenix. The three companies that acquired the land were formed by Ashton Wolfswinkel, Brandon Wolfswinkel, Candice Wolfswinkel and Damian Robinson. In May, BREW reported the Wolfswinkels and Robinson working to buy the property, which includes 42,000-acre feet of groundwater rights. The seller is an affiliate of Vidler Water Co., a wholly-owned subsidiary of PICO Holdings Inc. of La Jolla, Calif. (NASDAQ:PICO). The property generally is bounded on the north by Centennial Road, on the south by Dobbins Road, on the east by 491st Avenue and on the west by 539th Avenue. The Wolfswinkels purchased the property as an investment. Start of development is likely 5 to 10 years away. The tract is eventually expected to be developed as a master-planned community of more than 50,000 residences. Vidler Water Co., a water development resource business, spent about $35 million in assembling the property during the 1990's. Over the years, BREW has reported the Wolfswinkels involved in numerous real estate investments in Arizona.

EL DORADO HOLDINGS TO DEVELOP DOUGLAS RANCH IN VENTURE . . . 80,000+ HOMES PLANNED

Buckeye . El Dorado Holdings Inc. in Phoenix (Mike Ingram, Monty Ortman, principals) has formed a venture to develop more than 80,000 homes in a new community 25 miles west of Phoenix called Douglas Ranch. The 33,810-acre tract, located in Buckeye, is now being developed by El Dorado Holdings and a group of Valley investors including Mel Shultz, David Eaton, Dale Jensen, Jerry Colangelo, and Jeff Morad. Sources say El Dorado Holdings has acquired a 50 percent interest in the project in deal valued at $100+ million. Nate Nathan and Dave Mullard of Nathan & Associates Inc. in Scottsdale helped put the deal together. As part of the agreement, El Dorado Holdings will serve as the managing partner and will oversee development of the planned community. The property generally is bounded on the north by Jomax Road, on the south by Cactus Road, on the east by the Hassayampa River (299th Avenue) and on the west by 379th Avenue. The Wickenburg Highway passes through a portion of the land. The El Dorado Holdings venture intends to develop a site plan for a community of roughly 83,000 housing units and sell parcels to home builders, apartment developers and commercial developers. The project is targeted for roughly 71,000 single-family units, 12,000 apartments and five to seven golf courses. Nathan and Mullard have the marketing assignment. It is expected to take two to three years before the parcels are available for purchase. No word on pricing or lot product. Over the years, BREW has reported El Dorado Holdings buying land and developing residential communities. The company is best known for its development of the Maricopa area of Pinal County. Shultz, Eaton, Colangelo and Jensen have been involved in a number of real estate deals in the Phoenix area. Morad, a partner in the Arizona Diamondbacks baseball team, is new to the investment group. In November 2002, BREW reported Schultz, Eaton, Colangelo, et al., paying $30.5 million to buy Douglas Ranch.

VALLEY INVESTORS TEAM UP TO BUY 19,800 ACRES ON WEST SIDE KNOWN AS BELMONT

Maricopa County -- An investment group formed by Larry Yount and Bill Ring of LKY Development in Phoenix, the Cardon family in Mesa (Elijah Cardon, Wilford Cardon, Craig Cardon, principals) and Valley businessman Duke Cowley paid $11.7 million to buy a 19,800-acre tract in the west Valley known as Belmont. The property, in Maricopa County, is located along both sides of 339th Avenue and north of Interstate 10. The CAP Canal forms the northern boundary of the parcel, which is bisected by the Wickenburg Highway. The seller was a receivership controlled by European interests. Greg Vogel of Arizona Land Advisors in Scottsdale brokered the sale. While the recorded sales price for the property was $11.7 million, including some fees and other costs, the buyer actually paid closer to $13 million. Ring says the investment group intends to update the land plan for the property, secure the development rights and resolve various zoning and infrastructure issues. He adds that the investors are .in it for the long haul,. and paid cash for the land. "We are really excited to control that much acreage at this price," says Ring. Eventually, the land is expected to be developed as a master-planned community with roughly 48,000 homes.