The Stratford Co. of Dallas signed a deal Monday to invest $75 million in the partially completed Vistancia master-planned community in north Peoria.
The private real estate investment firm, primarily puts its money in land but occasionally ventures out into projects like Vistancia, said Diane Belcher, director of investments for Stratford’s Arizona office.
The equity partnership is the first large deal for
Vistancia, created by Shea Homes and Sunbelt Holdings, covers about 7,100 acres south of
About 3,500 homes have been built since 2004 and are occupied, according to information provided by Vistancia’s public relations firm.
The new entity will use the capital infusion to pay off remaining debt owed to GMAC.
Vistancia had a three-year, $125 million note with GMAC through its real estate funding division, according to Rick Andreen, president of Shea Homes Active Lifestyle Communities. Though that loan was not scheduled to mature until December 2011, the Vistancia partners were feeling pressure to take action, Andreen said.
“We learned that GMAC didn’t want to be in the (real estate) business anymore and we’d end up with a new banker,” Andreen said.
Through Nate Nathan, principal at land brokerage firm Nathan & Associates Inc. in
Instead of refinancing, Vistancia was able to pay off GMAC and bring in an equity partner.
“We’re very pleased whenever we can more completely control our own destiny,” Andreen said.
New homes sales have picked up in the past several months, Andreen said, even though Vistancia is a more luxury-style community. He said the most popular price point now averages about $320,000.
There are 110 homes sold that are in escrow currently.
“We’re still selling houses and building houses. We’re letting the market drive our behavior,” Andreen said.
