Builder weighs possibly selling $20M in land
Source: Arizona Daily Star, by Christie Smythe
July 16, 2008
Local builder Sierra Pacific Homes, now in Chapter 11 bankruptcy, is preparing to possibly sell off its roughly $20 million worth of land, according to court filings.
The builder owns property in several local developments including Sonoita Ranch, Mountain Manor View, Vista Montana Estates, Countryside Manor, Andrada Ranch, Desert Point Estates and Valencia Alvernon Commerce Center, according to court documents.
Court filings say the builder is seeking to hire Chapman Lindsey Commercial Real Estate Services brokers James Marian and Dan Feig to market the landholdings.
Scott Gan, an attorney with Mesch Clark & Rothschild representing the builder, said Sierra Pacific is planning to recover from bankruptcy and that it is hiring real estate brokers merely to "test the market."
"They're interested in trying to figure out whether it's best to hold it, or if there's a better opportunity to try to sell it," Gan said.
The builder filed for reorganization bankruptcy on June 27 after defaulting on a loan owed to First National Bank of Arizona on most of Sierra Pacific's land, Gan said. First National Bank, which is suffering financial troubles of its own related to the housing market, initiated foreclosure against the builder, he said.
The builder's sales tumbled about 65 percent from 2006 to 2007 as the housing market slowed down, according to court documents. Revenue was about $43.5 million in 2006 and $15.4 million in 2007, the filings said.
Sierra Pacific is owned mostly by Torrance, Calif.-based Elite Homes, which has a 75 percent stake in the company, according to court documents. Locally, it is managed by Tri-Star Development Inc., which has a 25 percent stake. Tri-Star President John Agresti did not return a call for comment.
Sierra Pacific has built more than 500 homes in Tucson since 1993, according to its Web site.
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