VIZZDA—March 4th, 2013 — In what is easily the largest land transaction of the New Year, Elliott Homes has acquired 429.20 contiguous acres of agricultural land in Waddell in four transactions totaling $16,430,230.10 for an average per acre price of $38,281.05. National Safe Harbor Exchanges, a 1031 exchange intermediary, facilitated the all cash transaction between Elliott—represented by Stephen Hemington and Brian Spickard—and four separate owners. A representative of the sellers indicates that this sale was a reverse 1031 exchange.
The largest portion acquired by Elliott is a 183.76 acre contiguous parcel sold by Ronald Schut of Miedema Produce for $7,019,208 or $38,197.06 per acre. A non-contiguous parcel totaling 115.68 acres was sold to Elliott by Darrell and Diane Kuiper for $4,453,790 or $38,500.95 per acre. Kelvin and Kathryn Moss sold a contiguous 76.71 acre parcel for $2,860,336 or $37,287.65 per acre. Finally, Mitchel Medigovich unloaded 53.05 non-contiguous acres $2,096,896 or $39,526.78 per acre. The assemblage is zoned RU-43 and located at the Northwest corner of Citrus Lane and Olive Avenue.
With the exception of that portion sold by Medigovich, these parcels were previously acquired in a simultaneous transaction on January 20th, 2012 in which Wayne Smith, owner of W.L.S. Construction, acquired roughly 399 acres in two transactions for $5,563,596 from Mark Winkleman of ML Manager—the court-appointed receiver for Mortgages Ltd. Smith then sold 183.76 acres for $2,724,561, 115.68 acres for $1,728,773 and 76.71 acres for $1,110,262 the sum of which exactly equals Smith’s basis. The Medigovich portion was previously acquired at a pair of trustees auctions in Q1 2012 with a combined credit bid of $5,309,534.
Kohner Properties assembled the land in several transactions beginning in December 2004 and encumbered it with $24m in new debt with Mortgages Ltd. on January 4th, 2005. Following the collapse of Mortgages Ltd., the property was noticed for trustee sale on October 30th, 2009 and it reverted to ML Manager as successor beneficiary on May 25th, 2011 with a$3.614m credit bid. Per City of Glendale planning documents, the site had previously been planned for the 1,144 lot Turning Leaf at the Meadows subdivision.
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