Hillwood, a private real estate company founded by Ross Perot Jr., has purchased 72.53 acres of agricultural land from Swift Transportation for $10,823,466 or $149,227.43 per acre. The parcel is located at the southwest corner of 75th Avenue and Buckeye Road in Phoenix.
The acquisition was financed by a $22.2m construction loan with Fifth Third Bank with a maximum lien of $40.4m, maturing September 20th, 2016 with two 1-year extensions available under the note. An interesting wrinkle in the financing gives an indication of the scope of planned development: Hillwood must seek approval from Fifth Third to enter into a lease for less than 340,670 ft2 for seven years to a Standard and Poor’s BBB rated company at a fully net rate of $4.08 per square foot.
Swift’s founder and chairman, Jerry Moyes, previously acquired the land in 2004 as part of a 150-acre sale for less than half of the current price. The larger parcel was re-zoned last year from residential to industrial use. As reported by Vizzda, Swift sold the southern parcel to WinCo Foods for use as a distribution center for nearly $12m in March.
