You are correct. Something about this deal smells. $14,700 an acre is outrageous for undeveloped desert land. I just heard of land going for $3,000 an acre, and it was only a few years ago that you could buy it at $100 an acre.
I will have to keep this on hand when I am thinking of selling property.
I agree. People around here don’t understand that 3000 acres is nothing. Tiny. And there is something amiss about this price.
I presume that parts of it are developed, driving up the cost. They would want utilities already available, and roads. Of the 3000 acres, they are using 1900 for their plant’s mirrors, which leaves 1000 acres for something.
The cost does seem a bit high otherwise, but I don’t see any reason to think this company is stupid or had stupid advisors who couldn’t set the correct price for the land they were purchasing.
Wolfswinkel faces $171M judgment
The case involves the 2003 sale of 13,500 acres along the parkway, west of Phoenix, to WVSV Holdings, controlled by Wolfswinkel's sons Brandon and Ashton.I just quoted this because it shows the price of some land in 2003: 13,500 acres for 74 million. That's considerably less than the 3000 acres for 45 million they just got. But it was interesting to read about this family's misfortunes.The Wolfswinkel group paid $74 million for two parcels, including 10,000 acres owned by 10K LLC, which includes Franke, Beus, Baldwin, attorney Paul Gilbert, investor Bill Pope and others.