Shea Homes LP Buys 387 Lots in Greer Ranch

Vizzda—July 29th, 2013 — Regent Properties of Los Angeles more than doubled their basis with the sale of their holdings in Greer Ranch North, Phase II for $19,449,941 or roughly $50k per lot. Shea Homes Limited Partnership paid cash for the property and agreed to a per lot payment of $6,175—further enhancing returns for the private real estate investment firm.

The lots are located east of the southeast corner of Sarival Avenue and Cactus Road in Surprise and vary in size from a minimum width of 53’ to a maximum of 63’ placing the per front foot value of the lots in the low $900s. Phase II is comprised of 467 total lots on 128.49 acres zoned PAD. Aerial photography of the site indicates some rough grading with several of the planned horizontal improvements incomplete.

Regent acquired the lots at the height of the financial crisis—November 25th, 2008—paying $9,384,741 in cash for 620 total lots in Phases I and II of Greer Ranch, a paltry $15,136.68 per lot. According to Regent, they acquired “the property as part of a distressed sale from the original developer,” Courtland Homes. The $19,449,941 sale price represents a 107.25% rate of return or 22.57% on an annual basis for a less than fiveyear holding period.

By:

Paul Dionne

Director of Analytics

Vizzda.com

 

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