Richmond American Buys 221 Lots in Palm Valley

September 29, 2009

Richmond American Buys 221 Lots in Palm Valley

Richmond American Homes of Arizona Inc. in Phoenix (Todd Demarets, div. pres.) paid $6.568 million in cash to acquire 221 finished lots within the Palm Valley community located in Goodyear. The seller was SunCor Development Co. in Tempe (Steve Betts, CEO). On the same day of that sale, Richmond American resold 145 of the home sites to a company formed by Southwest Value Partners in San Diego, CA. All of the lots average 7,500 sq. ft. (60×125) and 8,750 sq. ft. (70×125). Richmond American will build 76 homes on lots located north of McDowell Road and west of 159th Avenue. The three- and four-bedroom units are expected to range from 1,800 sq. ft. to 2,700 sq. ft. The subdivision is called Covina. Richmond American has been buying land in the Valley for new subdivisions. Jack Gallagher, director of land acquisitions at Richmond American, says the company wants to buy more residential land across the Valley. Richmond American Homes of Arizona is a subsidiary of Denver-based MDC Corp. (NYSE:MDC). Of the home sites acquired by the Southwest Value Partners entity, 107 are located just north of McDowell Road and east of 159th Avenue. The other 38 lots are located about 1½ miles to the north at the northwest corner of Indian School Road and Pebble Creek Parkway. SVP will hold the lots until the housing market rebounds.