Brew: SHEA HOMES/TRICON SPEND $59.5 MILLION FOR TEGAVAH GOLF COMMUNITY
Maricopa County - A joint venture formed by Shea Homes of Phoenix Inc. and Tricon Capital Group Inc. in Toronto, Ontario, Canada (TCN:TSX) paid $59.5 million to acquire the Tegavah golf course community located northeast of Scottsdale in Maricopa County.
The 856-acre master-plan, formerly called Vista Verde, is located in the shadows of the Tonto National Forest along the north side of Rio Verde Drive and east of 172nd Street (alignment). The purchase included the 18-hole Tegavah Golf Club championship layout and 500 + acres of raw land that is approved for 1,148 residences.
The seller retained 137 developed lots within Tegavah, which will be developed as a Trilogy age targeted community. The buyer was Tegavah Construction LP (Shea/Tricon entity). The seller was Vista Verde 2013 LLC, a joint venture formed by JEN Partners in New York City, N.Y. (Reuben Leibowitz, principal) and Brookfield Residential Properties Inc. in Calgary, Alberta, Canada (NYSE:BRP, Robert Stelzl, chairman).
The deal was brokered by Nate Nathan and Courtney Buck of Nathan & Associates Inc. in Scottsdale. Maricopa County records show buyer acquired the property with a $41.6 million cash down payment and the seller carried back $17.9 million of the purchase price. Sources say that loan is for three years.
One year ago, BREW reported the JEN Partners/Brookfield venture paying $45 million to acquire the golf community then known as Vista Verde. That acquisition included the 178-acre golf course, the 500 + acres of undeveloped land and 151 finished lots that were held out of the sale to Shea/Tricon. TerraWest Communities LLC in Phoenix (Mike Jesberger, principal), which manages real estate investments in the Valley for JEN Partners, made some changes after taking over management of Vista Verde. In addition to changing the name to Tegavah, TerraWest also rezoned the property to allow a maximum of 1,285 residences. TerraWest used 14 of the 151 developed home sites to redesign the main entry into Tegavah. The 137 finished lots still held by JEN Partners/Brookfield, which each average 20,000 + sq. ft., will be marketed for sale to one or more builders.
The home sites are being marketed by Nathan and Buck and will also be age targeted housing, and part of the Tegavah community association. The nationwide Trilogy brand, which is developed by Shea Homes Active Lifestyle Communities, is known for having resort style amenities and high-end, luxury homes.
Last week, the company announced plans to develop its 16th active adult community in the U.S. in a project northwest of Phoenix being called Trilogy at Wickenburg Ranch. Vista Verde Golf Club opened for play in 2006 and 35 lots were sold to individual buyers before home building activity at Vista Verde stalled with the crash in the economy.
Based on its success with the Trilogy communities, the rebound in the housing market and the prime location just northeast of Scottsdale, Shea Homes Active Lifestyle likely will have significant interest from buyers at Tegavah. Home sales will being next year. Shea Homes Active Adult Lifestyle is a division of the J.F. Shea Co. Inc. in Walnut, Calif. (Bert Selva, CEO). Shea Homes builds conventional housing in the Valley as Shea Homes Limited Partnership in Scottsdale (Buddy Satterfield, pres.) as well as active adult/age targeted.
Tricon Capital (David Berman, CEO) is a publicly-traded North America real estate investment company with more than $1 billion in assets under its management. The company has several other Valley investments. Hal Looney and Rick Andreen head up Arizona operations for Shea Homes Active Lifestyle . . . call them at (480) 367-3700. Berman is at (416) 925-5610. Reach Jesberger at (602) 920-1722.
Talk to representatives of JEN Partners at (212) 755-4300. John Bradley of Brookfield Residential is at (602) 421-3292. The Nathan & Associates agents are at (480) 367-0700.