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Opposing the hostile take-over of Liberty Apple Valley
December 19, 2012 (Pasadena, California) — The California Division of the Land Advisors Organization, the nation’s largest land brokerage firm, announced today the landmark sale and permanent transfer of 5,971 acre-feet of water rights from Rancho Las Flores, LLC to the City of Hesperia for $31,700,000. The water rights are associated with the Rancho Las Flores master plan, a ±9,000-acre planned community within the City of Hesperia, a town in Southern California’s Victor Valley approximately 80 miles northeast of downtown Los Angeles.
In May 2012, the Land Advisors’ team of Terry Ruckle, Randy Coe and Michel Faris was engaged to market and sell one of the largest blocks of water rights in Southern California on behalf of a post-bankruptcy manager for the estate of a private mortgage lender that had previously lent more than $80M to the project. Land Advisors was brought in to develop an exit strategy for the Rancho Las Flores development and market the water to potential end-users capable of absorbing the entire quantity. Due to the large size of the water right and scarcity in the region, the City issued a bond to purchase the entire quantity to meet the future demands of the growing City.
Given the size and scope of the water right, this transaction highlights the privatization of the water market, stated Land Advisors-California Division Co-Founding Principal, Terry Ruckle.
To determine the appropriate sales price, Land Advisors provided an in-depth market analysis of the region’s water markets and an asset valuation and pricing analysis. The analysis included an assessment of the marketability, a review of the water supply portfolio of local water purveyors and municipal water providers, market absorption rates and price, transaction terms, and other details on recent water right transaction within the region. Land Advisors also developed potential end-users through informal discussions with local municipalities, government officials, land developers, investors, and other high-end water users in the region.
To market the asset to potential buyers, Land Advisors created due diligence materials including an investment summary, a power point presentation describing the strategic development plans, a financial model with proposed sale and disposition alternatives, a market analysis report, and gathered all associated legal and engineering documents pertaining to the water rights. Land Advisors called upon an extensive array of contacts in the investment industry and managed all discussions and negotiations with potential buyers.
Through our competitive process and unparalleled database of potential end-users, the net recovery on this deal for the lender will be significantly greater than was previously anticipated.
Land Advisors Organization’s California Division is witnessing an uptick in interest from all buyer types in nearly every market in the state. Having completed more than $285M of transactions in 2012 year to date, the company’s pipeline through the rest of the year is poised to more than double that number, a testimony to the major increase in land activity.
For additional information regarding this transaction, contact Terry Ruckle at 626.376.9840 x16, Randy Coe at 949.852.8288 x18, or Michel Faris at 949.852.8288 x14.
For more information about the California Division of Land Advisors Organization, please visit landadvisors.com or contact Tom Reimers at (949) 852-8288 x28.
Land Advisors Organization specializes in innovative land brokerage through deep market insight and unparalleled client relationships. With an exclusive focus on land, Land Advisors Organization integrates current comprehensive information, cutting-edge technology and geographically specialized professionals to help our clients identify and capitalize on valuable opportunities in all kinds of economic environments. The Land Advisors Organization employs a true collaborative brokerage model with offices located throughout Arizona, California, Colorado, Florida, Nevada, Utah, and Texas.