Gladden Farms Lender to Sell Land?
The real estate meltdown has reached critical mass in my neck of the woods. I live up in Gladden Farms, a master-planned community in Marana, AZ (just NW of Tucson) and the lender for the undeveloped property has filed a notice of trustee's sale.
Below is an excerpt from the Arizona Daily Star:
Â Â Â
The lender for master-planned Gladden Farms in Marana
has filed a notice of trustee's sale for about 605 acres, most of which
is vacant farmland just east of the development.
The notice filed last month by a division of GMAC Bank also
includes a small portion of subdivided but undeveloped lots, but the
action is not expected to affect current Gladden Farms homeowners.
Â Â Dean Wingert, senior vice president for Gladden Farms, said in a
prepared statement the project's developer and owners have a
long-standing relationship with GMAC, but problems arose following a
recent appraisal of the vacant land.
Â Â Lenders can sell property through a trustee's sale when a borrower
is in default or foreclosure. Though full details of what precipitated
the Gladden Farms sale were not immediately available, a drop in equity
based on falling appraised values can trigger default provisions.
Â Â "They did an updated appraisal of the vacant land, and it came back with a very low value on today's conditions," Wingert said.
Â Â Gladden Farms acquired the land in 2005. It sits just east of the
master-planned community between Tangerine and Moore Roads. The notice
of sale will have no effect on the existing development, Wingert said.
Â Â For the last five months GMAC has not paid for any of Gladden
Farm's expenses, so the developer has gone ahead on its own with $2
million in improvements to the site and also made a major payment to
the town of Marana, Wingert said. Because of that commitment, Wingert
said he expects the developer to find new financing before a trustee's
I've also received a letter in the mail regarding this issue, and I sure hope that Gladden Farms can get this sorted out. A Fry's shopping center has been on hold for the past year and a half (already bladed and utilities run) and if the land does go up for auction I imagine it would take even longer.
It sounds as though Gladden Farms management is optimistic about finding a new lender, however, so we'll just have to see what happens.