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Trustee Sale Yields $27M for Rancho El Dorado

MARICOPA, AZ-Harvard Investments Inc. and Meritage Homes of Arizona buy and divvy 650 acres after a derailed partnership gives the land back to its lenders.

By John McCloud | Updated on July 02, 2008

MARICOPA, AZ–Harvard Investments Inc. and Meritage Homes of Arizona Inc. paid $27 million to acquire 650 acres of residential development land in the Lakes at Rancho El Dorado. The Scottsdale, AZ-based companies bought the property at auction from Wachovia Bank and Wells Fargo Bank, which had taken it back from a previous Meritage partnership.

The land is a mix of partially developed land and finished lots at the northeast corner of Smith Enke and Porter roads in Pinal County. The acreage is approved for construction of 1,985 single-family homes. It originally was bought for $39 million by Scottsdale-based Maricopa Lakes LLC, a partnership of Meritage and Scottsdale-based Hacienda Builders Inc. formed in November 2004. The purchase included an additional 384 lots, where homes have been built and subsequently sold.

Late last year, Hacienda revealed it was considering being acquired by another Scottsdale company, Montage Holdings LLC, in the wake of the housing meltdown. Earlier this year, the lenders agreed to put the property into a trustee sale rather than allow it to go into default. The unpaid debt together with costs totaled $36.75 million.

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