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Posts tagged as “Avimor”

Avimor on the block?

avimor

Entrance to Avimor, at Highway 55/Stapilus

We've been following the Avimor saga for a while now, for the reason that in the Boise area it's a big deal: It amounts to creating a whole city off the highway between Eagle (just west of Boise) and Horseshoe Bend. It is the biggest of the large planned developments in the Boise foothills, it has progressed substantially, and it could have a big effect (actually various big effects) on development in the area. Its plans contain, we should note, a number of attractive features; there are also a number of drawbacks.

It has not, however, been progressing very rapidly. In February 2006, Avimore's parent, SunCor Development of Arizona, projected that within five years the project would be completed with 684 housing units, a resident population of 1,952, some commercial development and various amenities. In January of this year, three years in, reports surfaced that just six properties apparently had been sold and two families were resident.

Against that background, consider this report from yesterday's Arizona Republic newspaper:

"Pinnacle West Capital Corp.'s real-estate subsidiary, SunCor Development Co., will attempt to sell $400 million in housing developments and golf courses - most of them in Arizona - to reduce debt and focus on commercial building, the company announced Thursday. Arizona Public Service Co. is Pinnacle's main subsidiary, but the smaller SunCor business has been a drag on earnings recently. In the fourth quarter of 2008, SunCor impairment charges of $32.5 million helped push the parent company to a quarterly loss, so the SunCor board of directors voted to sell nearly all of its assets, spokesman Alan Bunnell said."

There's no reference yet to the selloff on the SunCor web site on on Pinnacle's. Possible Avimor isn't on the block. But it looks likely.

And what will happen to it then?

Avimor’s timeline

We've been wondering about how the string of mega-developments around Boise, all launched a year or two to mere months before the real estate/finance crash last year, are getting along. The key case would be Avimor.

Avimor is a big development, located in the Boise foothills partway between Eagle and Horseshoe Bend off Highway 55. The developers' web site offers a by-the-numbers rundown: "684: The number of housing units. The majority would be single-family homes, with about 60 multifamily units such as lofts. 75,000: Square footage of commercial and community space. 1,952: Projected population of Avimor. 830: Total acres in Avimor. 498: Acres of open space and parks in Avimor. 9.5: Miles of public trails in Avimor. 5: Years to build Avimor."

Note that last: Five years to build, according to the web statement in February 2006. We're now nearly three years into that.

Their odds of hitting target don't look great. From a post a few days ago in the Boise Guardian:

We got the following from an obvious insider and frankly what they apparently see as a positive sign is pretty weak.

“Avimor has had residents since October. There are three homes closed, two with families living therein. One home is under construction for a family. Another pre-sold home is about to start for yet another family.

“All four families are from the valley and have lived in Idaho for several years. The MLS only has a few spec homes listed which none have sold. Two spec homes have contracts pending, contingent on financing which is almost impossible to get.”

Even if we give them the benefit of SIX homes sold in the past year, it will take 500 years for them to sell 3,000 homes.