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10/03/09
Canadian company buys nearly 600 acres in Buckeye
Filed under: General, Real Estate
Posted by: Lillian Wong @ 2:06 pm

Phoenix Business Journal - by Jan Buchholz Friday, October 2, 2009

 

Walton International Group is solidifying its position as a major landholder in the Phoenix area with the purchase of nearly 600 acres in Buckeye.

 

The Calgary, Canada-based real estate investment company has U.S. headquarters in Scottsdale. Walton paid almost $9.4 million for the land, at the southwest corner of Lower Buckeye and Watson roads.

 

In December 2008, the Phoenix Business Journal reported that Walton had purchased about 10,000 acres in Pinal County along Interstate 10 and was eager to acquire more land as prices dropped in response to the local and national economic decline. The company also is snatching up bargains in Georgia and Texas.

 

“We believe in the location, and we believe in the leadership in the town of Buckeye,” said Rob Leinbach, senior vice president of operations for Walton International Group USA.

 

Homes and multifamily housing are the most likely uses for the land, with a smaller percentage of commercial development rounding out the mix. The land previously had been master-planned as the Monte Verde community, but interim Buckeye Town Manager Stephen Cleveland said Walton wants to make revisions to that plan and invest more in infrastructure that will benefit the town.

“This is a tract that for us will actually help with infill between the existing town and Highway 85 and the (Interstate) 10 corridor,” Cleveland said.

 

That’s how Walton officials view it, as well.

 

“We strategically chose this property from amongst a lot of land in the area that is on the market because of its unique position and importance to the long-term growth of the town,” Leinbach said.

 

Buckeye has been hit particularly hard by home builders and developers that were unable to weather the economic storm. Some walked away from properties, and many acres have been taken back by banks through foreclosure sales.

 

Walton purchased the Buckeye land from BCREO I LLC, an entity formed by Barclays Capital Real Estate in New York. Barclays was the beneficiary of a $44 million loan that was originated in May 2006 and secured by the property. The borrower, LNR Buckeye LLC, reportedly defaulted, and Barclays filed a notice of trustee sale in September 2008.

 

Details of the auction, which was scheduled for December, are unknown, as are any specifics about Walton’s negotiations to secure the land from Barclays at a discounted price.

 

Cleveland said Buckeye staff first met with Walton officials in late spring to discuss potential plans for the tract.

“They were conducting their due diligence,” he said.

 

Walton will have to build significant infrastructure, including water, sewer and roads, to proceed with its plans, he added. But the company’s land investment is substantially lower than that of previous owners.

 

Mike Koch, Walton’s sen­ior vice president of land research and acquisitions, sees the purchase as a good deal from the long-term perspective.

 

“It’s a proven and established market in the West Valley,” he said. “The Monte Verde parcel is ideal for future development due to its strategic proximity to transportation, infrastructure and employment.”

 

Jordan Rose, principal of Rose Law Group PC and the attorney representing Walton in the land deal, concurs with her client.

“Walton is using this down market to enhance the value of their holdings through good planning,” she said. “They are taking this time to evaluate and sometimes revise previous land plans so that they are poised for positive growth when the real estate engine starts to hum again.”

 

Get Connected

Walton International Group: www.waltoninternational.com



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New site tracks property foreclosures across US
Filed under: General, Business, Real Estate
Posted by: Lillian Wong @ 1:58 pm

Phoenix Business Journal - by Chris Casacchia Friday, October 2, 2009

 

Three Valley entrepreneurs have developed an online service that generates daily updates on the foreclosure status of any property in the country.

 

Chandler-based Lemonlandlord.com is trying to fill a niche created by the housing crash and record foreclosure rates in hard-hit states.

 

The tracking service, launched in late August by Michael Rodrigues, Frank Kelley and Jeff Kadlec, has signed a couple hundred clients — a number expected to climb to more than 100,000 in the next 12 months.

 

“This is going to be a new behavior for renters and property owners,” said Rodrigues. “This foreclosure crises will change the way people operate and protect themselves.”

 

Arizona was fourth in the nation in foreclosures in August, with one in every 150 homes, or 17,807, involved in the process, according to data compiled by RealtyTrac. Nevada topped the list, with one of every 62 homes. Florida was second and California was third.

 

Nationwide, 358,471 foreclosure filings were reported in August, up nearly 18 percent from August 2008.

 

Elise Otero has been using Lemonlandlord to keep track of the 160 homes her Apache Junction real estate firm manages for owners. In the past year, at least five have gone into foreclosure — and in each case, the owner failed to notify her company or the renters.

 

Once a property goes into foreclosure, renters have little recourse.

 

“We’re encouraging every tenant we have to sign up for (the service),” said Otero, who runs Otero Realty Group.

 

Lemonlandlord charges $7.99 for an initial report and a $3.99 monthly fee thereafter. Rodrigues would not disclose the names of the national data providers that are paid to generate the information.

 

Foreclosure notices are public, so they can be accessed free by anyone, but officials contend the time and resources devoted to tracking a property costs more than Lemonlandlord’s monthly charge.

 

The Web company raised more than $200,000 from investors and will earmark some of the funds for a national radio campaign. As of press time, Lemonlandlord had inked agreements with 26 vendors, ranging from family-oriented Web sites to apparel companies.

 

The founders recognize they are capitalizing on a window of opportunity, given the nation’s foreclosure problems, and that Lemonlandlord could lose some of its luster when the market rebounds.



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Next BofA chief must help polish reputation
Filed under: General, Business, Mortgages, Finance
Posted by: Lillian Wong @ 1:47 pm

NEW YORK - Ken Lewis’ legacy as CEO of Bank of America Corp. will likely be determined by whether his successor can do what Lewis couldn’t: prove that the bank’s messy acquisition of Merrill Lynch & Co. was worth the money.  more…



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CityNorth investment questioned
Filed under: General, Real Estate
Posted by: Lillian Wong @ 1:36 pm

The Arizona Supreme Court heard oral arguments on the CityNorth case Wednesday, with justices questioning whether Phoenix will get enough in return for its $97.4 million commitment to the project.  more…



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Home builder defaults on Desert Ridge site
Filed under: General, Real Estate
Posted by: Lillian Wong @ 1:27 pm

Meritage Homes has defaulted on its Desert Ridge property, where the home builder planned to put up a 1,200-home gated community called Calasera.

The property, at the southeastern corner of 56th Street and Deer Valley Road, is 288 acres. It was the last sizable Desert Ridge parcel to be in private hands.   more…



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