 |
|
|
| Desert Vista Highlands LLC (1999-2003) |
|
The following case study illustrates how a land parcel's value can be improved by rezoning, thus increasing both the utility and value of the property. As the population of Tucson grew, development in the mid-90's expanded quickly to the southeast, along the Interstate 10 corridor.
Desert Vista is located 1 mile south of the Interstate 10 and Alvernon Boulevard interchange, and approximately one mile west of the Interstate 10 and Valencia Boulevard interchange.
|
|
|
|
As
can be seen on the aerial photo, (right)
the Desert Vista Highland's property
is located in a newly developing residential
area.
New World Homes, a 180 lot subdivision, has been built across the street--west and a little north of Desert Vista Highlands. KB Homes opened a 451-home subdivision in September 2002 directly west of the property that as of 2005 is sold out.
DR Horton broke ground in January 2003 on a 282-home subdivision just south of the property, and as of 2005 this subdivision is almost sold out.
|
|
|
|
The Myers Group acquired the property in 1998 prior to the new development that is now occurring in the area. Since that time TMG has rezoned the property from office/industrial to residential and obtained a fully entitled and mapped property.
TMG purchased this property in 1999 for $225,000 and sold it to a major Arizona builder in January 2003 for $1,230,000. The sale was closed July 19, 2004.
|
|
RESULTS
- Desert Vista Highlands
LLC
|
|
 |
|
TMG's new zoning and use was more in line with the development trends occurring in the area.
In conjunction with the sale of this property TMG entitled the property for 82 residential lots.
|
SUMMARY
- Desert Vista Highlands LLC
|
|
$225,000
|
|
Architecture,
eng. & planning
|
$35,000
|
|
Real
estate taxes
|
$18,000
|
|
Resale
price (7/19/04)
|
$1,230,000
|
|
Gross
appreciation
|
$943,000
|
|
Holding
time:
|
3
years & 6 months
|
89.4% ANNUAL PROPERTY APPRECIATION
|
|
|
|
