Scottsdale – A publicly-traded firm that owns Joseph Carl Homes in Phoenix is betting on the come with Scottsdale City Council as the company has shelled out close to $10 million with the hope that an upscale senior housing community will be approved on a portion of the Borgata site on Scottsdale Road. AV Homes Inc. (NASDAQ:AVHI), which is now headquartered in Scottsdale, builds conventional homes and develops active adult communities, recently took control of about 5 acres of prime land located along the west side of Scottsdale Road and just south of Lincoln Drive. The company is expected file for approval in Scottsdale to develop a posh, multi-level housing community that will cater to those in the 55 and older crowd. Although company representatives are not ready to talk specifics about plans for the property, sources say about two-thirds of the existing retail space at the Borgata likely will be razed and redeveloped as a multi-family community.
In April, AV Homes Inc. (formerly known as Avatar Holdings Inc.) announced that its active adult communities would be branded as “Vitalia.” The new identity is designed to embody “independence, exploration and richness of life.” AV Homes Inc, was formed in 1970. It is best known for the development of Poinciana, a 47,000-acre master-planned community located near Orlando, Fla.
Today, the company is engaged in home building, land development and other real estate operations in Florida and Arizona. Its principal operations are conducted at its 55+ active adult communities – Solivita near Orlando and CanataMia, which is west of Phoenix in Goodyear. The company also builds homes for people of all ages in Central Florida and Phoenix through its Joseph Carl Homes brand.
Here’s how the deal went down in which AV Homes acquired the land and buildings that comprise the Borgata retail shops and restaurants and then resold a portion of the project. Civila of Arizona LLC (formed by AV Homes) paid $12.75 million ($135.64 per foot) to purchase the nearly 94,000-square-foot Borgata retail plaza, which has an address of 6166 N. Scottsdale Road. The seller was RED Borgata LLC in Phoenix. Sources say Michael Lieb of Michael A. Lieb Ltd. in Phoenix assisted with putting together that cash transaction. On the same day of that sale, records show Civila of Arizona LLC sold a portion of the plaza to Borgata LLC in Scottsdale (Bruce Shapiro, principal). That deal includes about 1.6 acres of pads that are occupied by Blanco Tacos & Tequila and J. Alexander’s, both restaurants that will remain in place. In May, BREW reported Red Borgata LLC paying $9.15 million ($97.34 per foot) to buy the Borgata, which is an upscale boutique retail center. Red Borgata was formed by Red Development LLC in Phoenix (Scott Rehorn, Mike Ebert, partners). The seller of the property was TWC Borgata Holdings LLC, a company formed by The Macerich Co. in Santa Monica, Calif. (NYSE: MAC). The nearly fully leased Borgata has 25 tenants, including several restaurants. The plaza was built in phases from 1981 to 2008. Sam Colgan, v.p. of AV Homes, is at (480) 214-7400. Reach Lieb at (602) 870-9741. Call Shapiro at (480) 368-0111.
