Gilbert – Six Valley builders have taken control of 569 lots within the Bridges at Gilbert community in the southeast Valley in deals totaling $23+ million. With two remaining transactions set to close by year-end, the joint venture that took over the community stands to earn a profit of $16 million in an investment that, from start to finish, will take less than two years. In April 2011, BREW reported companies formed by JEN Partners in New York City, N.Y. (Reuben Leibowitz, principal) and Terra West Management Co. LLC in Phoenix (Mike Jesberger, principal) paying a combined $23 million to buy the 298-acre planned community. A company formed by Larry Miller of Miller Holdings Inc. in Scottsdale started the development, but lost the property to foreclosure.
The project is located at the southeast corner of Queen Creek and Higley roads. In all, the community is targeted for 867 single-family homes that will be built by seven builders. When BREW reported the JEN Partners/Terra West venture buying the land 16 months ago, Jesberger estimated that the venture would hold the land for three to five years and then sell parcels to multiple home builders. As it turns out, the partnership will have sold the property in about half the time it thought it would take if the two remaining sales close as scheduled. “We are very happy,” says Jesberger. The Bridges at Gilbert is being marketed by Nate Nathan, Dave Mullard, Casey Christensen and Ryan Duncan of Nathan & Associates Inc. in Scottsdale. The home sites that are closed are all platted and engineered lots. All of the sales were cash deals. Here is the builder, number of lots and dimensions and purchase price of each closed transaction: Lennar Arizona Inc., 111 home sites averaging 5,175 sq. ft. (45×115), $3.643 million; Maracay Homes LLC, 73 lots averaging 9,100 sq. ft. (70×130), $3.572 million, Maracay Homes, 67 lots averaging 5,750 sq. ft. (50×115), $2.558 million; Woodside Homes of Arizona, 46 home sites averaging 5,750 sq. ft. (50×115), $1.756 million; Shea Homes of Phoenix Inc., 99 home sites averaging 5,175 sq. ft. (45×115), $3.028 million; Taylor Morrison/Arizona Inc., 97 lots averaging 5,175 sq. ft. (45×115), $4.062 million, and T.W. Lewis Co. (David Weekly Homes), 78 lots averaging 10,400 sq. ft. (80×130), $4.495 million.
The buyer for the lots controlled by Maracay and Woodside is actually JEN Arizona 5 LLC, a venture formed by JEN Partners and Terra West. The venture is land-banking the home sites for Maracay and Woodside and will sell the home builders developed lots though a rolling option agreement. JEN Arizona 5 LLC paid $7.886+ million to buy those 186 platted and engineered home sites. No word on how much Maracay and Woodside will pay for the lots in the option deal. In two transactions involving 113 acres of raw land at Bridges at Gilbert, Meritage Homes of Arizona Inc. and Woodside will pay a combined $16+ million to acquire the two remaining parcels within the community. In a $13+ million sale set to close in late September, Meritage is buying 93 acres that is targeted for 228 lots. Those home sites are expected to average 7,200 sq. ft. (60×120), 9,100 sq. ft. (70×130) and 11,700 sq. ft. (90×130). And in a $3+ million deal scheduled to close in mid-December, Woodside is purchasing 20 acres that is planned for 70 lots. Those home sites will average 6,325 sq. ft. (55×115). Both Meritage and Woodside are doing the entitlement work on those parcels. The first models at Bridges at Gilbert should be completed by fourth quarter 2013. The community is expected to feature residences ranging from about 1,200 sq. ft. to around 4,000 sq. ft. The three-, four- and five-bedroom units are likely to be priced from the low $200,000’s to the mid-$400,000’s. Jesberger says both Terra West and JEN Partners are looking for additional land-banking opportunities in the Phoenix area.
Find out more from Jesberger at (602) 920-1722. The phone number at JEN Partners is (212) 755-4300. Alan Jones of Lennar Homes is at (480) 345-0077. Tom Lemon of Maracay Homes is at (480) 970-6000. Gene Morrison of Woodside Homes is at (480) 755-0801. Michael IlesCremieux of Meritage is at (480) 303-6700. David Garcia of Shea Homes is at (480) 348-6000. Tom Hennessy of Taylor Morrison is at (480) 344-7000. Pat Adler of T.W. Lewis is at (480) 820-0807. Talk to the Nathan & Associates agents by calling (480) 367-0700.
