4,500 Acres Trade in $28M Distressed Deal

PHOENIX-A 4,500-acre parcel located in the Merrill Ranch master-planned community has sold for $28 million in a foreclosure deal with a consortium of more than 60 banks. The buyer was a partnership comprised of Southwest Value Partners (SWVP) and GoldenTree InSite Partners (GTIS Partners).

A fund managed by New York City-based GTIS Partners invested 70% of the equity capital, while San Diego-based SWVP contributed the remaining 30% of equity capital. SWVP, a privately-held real estate investment company will manage the day-to-day operations of the partnership.

Located in northern Pinal County along Hunt Highway, Merrill Ranch is about 30 minutes southeast of the Gilbert/Chandler/Mesa submarkets. The parcel is partially entitled for up to 18,000 residential lots and an additional 900 acres are fully entitled for commercial use. The commercial portion could eventually accommodate more than 2 million square feet of retail or office, according to Tom Shapiro, president of GTIS Partners.