Almost four years after buying The District at Green Valley Ranch out of foreclosure, a Phoenix real estate firm has bought out its partner on the deal, paying far more than the duo originally spent.
Vestar has paid $120 million to Rockwood Capital for the roughly 38-acre mixed-use property off both sides of Green Valley Parkway just south of the 215 Beltway.
The two companies teamed up in fall 2011, when the economy was in far worse shape than it is today, to buy the retail-focused development for $79 million cash.
Vestar’s buyout closed July 1, Clark County records show. It was announced today.
The sale gives Vestar full ownership and comes after the owners signed more tenants, boosting the occupancy rate to 95 percent from 84 percent when they bought The District, Vestar said.
The owners made a number of changes to the Henderson property, most notably replacing a pedestrian promenade that bisected the main shopping area — on the west side of Green Valley Parkway — with a two-lane road and dozens of parking spaces.
They also added decorative lighting, outdoor seating areas, a splash-pad and new landscaping.
“Vestar is committed to the success of The District and is proud of what we have accomplished with the property thus far,” Executive Vice President Jeff Axtell said in a news release. “Rockwood Capital has been an exemplary capital partner for us and has realized a significant return on its investment. We look forward to working with them on future ventures.”
Axtell was not available for an interview today, a spokesman said. Axtell said through the spokesman, however, that “no loan” was involved in the buyout, indicating Vestar paid cash, and that the company wants “to hold long term,” so it doesn’t plan to sell the property anytime soon.
The District, developed by American Nevada Company, was built in two phases: the 21.5-acre western portion, which opened in 2004 and includes retail, office space, and condominiums above the stores, and the 16-acre eastern portion, which opened in 2006 and has retail and offices.
Lenders seized The District through foreclosure in early 2011 and sold it to Vestar and New York-based Rockwood later that year.
Tenants include Whole Foods Market, Williams-Sonoma, REI, Pottery Barn and Rachel’s Kitchen.