AV Homes and JEN Partners Acquire 527 Acres at Eastmark
SCOTTSDALE, Ariz., Nov. 27, 2012 (GLOBE NEWSWIRE) -- Scottsdale-based AV Homes, Inc. (Nasdaq:AVHI) and JEN Partners, LLC, a New York City-based residential investment company, through a newly formed entity, acquired 527-acres at Eastmark, DMB Associates' newest large-scale integrated community in Mesa. AV Homes' investment was $18.6 million; JEN Partners investment was $13.6 million.
AV Homes will control 310 acres on which it plans to build approximately 1,000 homes under its Vitalia active adult brand. JEN Partners plans to develop the remaining 217-acre into a gated executive club community where it will sell approximately 550 developed home sites to a select group of luxury home builders.
AV Homes Executive Vice President Carl Mulac said the opportunity to be associated with Eastmark gives the company strong positions in both the East and West Valley active adult markets. "Eastmark is clearly one of the best development locations in the region. As the local home building industry continues to improve, we will be well positioned to serve active adults in two proven markets," he said. The company is currently building at its CantaMia active adult community located in the West Valley's Estrella master-planned community.
Mulac said the company is developing its plans for new housing product and the community amenities at Eastmark. He noted that the new active adult community will include an extensive open-space/trail system in lieu of a golf course as there are numerous public courses in the area. Pending entitlements, groundbreaking for the active adult community is expected to occur in early 2014 with the first home closing anticipated in late 2014. This will follow the grand opening of Eastmark in May of 2013.
Phoenix-based TerraWest Management Company, LLC will manage entitlement and land development activities on behalf of the companies. TerraWest's Managing Member Mike Jesberger said that JEN Partners' executive club community will be attractive to executives who are employed at a growing number of companies that have established, or are establishing operations in the nearby area. "We are planning a community that will offer an exceptional lifestyle opportunity and luxury homes from some of the Valley's most distinguished builders," Jesberger said. The timeline for development of the executive club mirrors that of the active adult community, and Jesberger noted that he is currently in negotiations with a number of possible homebuilding partners.
"In researching the growth of this market and the demographics of the area, we recognized early on the opportunity to bring a new active adult community to Eastmark. This phase of the development will enhance our vision for an integrated, vibrant community," said Dea McDonald, Senior Vice President of DMB Associates and General Manager of Eastmark. "We have always envisioned the addition of an executive enclave at Eastmark. Our proximity to so many employers and to a world-class airport makes this a desirable location for this kind of community."
About AV Homes:
AV Homes, Inc. is engaged in homebuilding, community development and land sales in Florida and Arizona. Its principal operations are conducted at its active adult communities of Solivita near Orlando, Florida and CantaMia near Phoenix, Arizona. The company also builds conventional communities for people of all ages in the Orlando and Phoenix areas under its Joseph Carl Homes brand. AV Homes' common shares trade on NASDAQ under the symbol AVHI. www.vitaliahomes.com
About JEN Partners:
JEN Partners, headquartered in New York City, is one of the nation's leading investors in residential land and homebuilding companies. The company's assets are located in Arizona, Florida, Texas and the Mid-Atlantic. TerraWest Communities is affiliated with JEN Partners and invests in master planned communities, finished lots, raw land, and other real estate assets in the metropolitan Phoenix area. www.terrawestaz.com
At five square miles (3,200 acres), Eastmark is a vibrant, integrated and evolving regional community poised as "The Heart and Hub of the East Valley." Scheduled to open its first phase of residential development with seven homebuilders in May of 2013, Eastmark is currently home to First Solar's global operations center. Eastmark sits at the center of a major transportation hub anchored by the Phoenix-Mesa Gateway Airport, three major freeways, numerous businesses and acclaimed educational institutions. An expansive 100-acre Great Park will connect residential areas, resort components, employment cores, recreational spaces and commerce. Eastmark is the largest privately held, contiguous property in the Southeast Valley. www.Eastmark.com
About DMB Associates, Inc.:
DMB Associates, Inc. ("DMB") is an Arizona-based, diversified real estate investment and development firm with real estate holdings through affiliated companies. DMB's portfolio includes signature commercial properties, resort/recreational and primary home communities, country clubs, health clubs and spas. DMB is known for development that complements and enhances the greater communities of which they are a part. Every DMB community is distinguishable due to the Company's core dedication to community life, partnership, legacy and stewardship. www.DMBInc.com.
This news release contains "forward-looking statements" within the meaning of the U.S. federal securities laws, which statements may include information regarding the plans, intentions, expectations, future financial performance, or future operating performance of AV Homes, Inc. Forward-looking statements are based on the expectations, estimates, or projections of management as of the date of this news release. Although our management believes these expectations, estimates, or projections to be reasonable as of the date of this news release, forward-looking statements are inherently subject to significant business risks, economic and competitive uncertainties, or other contingencies which could cause our actual results or performance to differ materially from what may be expressed or implied in the forward-looking statements. Important factors that could cause our actual results or performance to differ materially from our forward-looking statements include those set forth in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2011 and in our other filings with the Securities and Exchange Commission, which filings are available on www.sec.gov. At least 80% of active adult homes are intended for occupancy by at least one person 55 years or older. AV Homes disclaims any intention or obligation to update or revise any forward-looking statements to reflect subsequent events and circumstances, except to the extent required by applicable law.
CONTACT: Ken Plonski (AV Homes) 480-214-7408 firstname.lastname@example.org
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