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$40M Land Deal Closes After Year in Escrow

SURPRISE, AZ-Land Baron scores a discount on 576 acres the firm purchased here. The plan is to create retail, commercial and high-density residential.

By John McCloud | Updated on July 26, 2007

SURPRISE, AZ-The city has lived up to its name for a Las Vegas-based developer that got a substantial discount on a massive land purchase that has been in escrow for the past year. Land Baron Investments had its $45-million offer for a 576-acre site accepted in mid-2006, but whittled it down to $39.5 million by this month’s closing.

“The market’s changed in the last 12 months because of the residential correction,” Land Baron partner Michael Chernine tells GlobeSt.com. “It’s put the projects around this particular location on a bit of a slower path and allowed us to get a better deal.” The development site is north of Grand and 211th avenues.

Chernine says there was a lot of competition for the site when his firm made its offer, but most of the losing bidders were planning more or less pure residential plays. His company plans a mix of retail, commercial and high-density residential. He says the seller recognized the competition would not be there if the property went back on the market, enabling Land Baron to negotiate the price downward.

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