Patrick Harfst

Real Estate in Val Vista Lakes, of Gilbert AZ

Part 5 of 7 parts

After the RTC left Val Vista Lakes, and the HOA became fully homeowner controlled, things began to settle down. The various builder subdivisions were nearing build-out. The remaining production subdivisions - Castaway Bay (Finitz Homes) and Patterson Point (Ditz-Crane Builders) were still active, but they too were nearing completion. Resales were now the dominant player for buyers who wanted to live in the east valley's most-sought-after community. For many families, this was a very good time. They bought their home in the down market that followed the S&L debacle, and now they were sitting on some nice equity. If they wanted to move up to a larger home, it was no problem. Many folks did just that! There are many families who are living in their 2^nd, 3^rd, 4^th, or even 5^th home here in Val Vista Lakes! It has become an inside joke that this is a Stephen King plot line - you can move, but all roads OUT of Val Vista Lakes lead you right back...

As the decade wound down towards Y2K, values were moving upward very nicely. Days On Market shortened to where sellers ran the risk of becoming homeless if they did not have their next place already in their sights. The lowest prices for detached homes crossed 100k, likely never to return. Even the condos at Beach Club Village moved upward in price to where most were now above 100k. The introduction of the internet & e-mail was having a noticeable effect on sales, as buyers & sellers now had an easy way to gather, send, receive, and "own" the data that makes up a real estate "market". Many in the real estate industry felt challenged by the changes underway, while others welcomed them. What is an absolute certainty from the vantage point of time is that the internet was here to stay, and even the clubhouse installed a WiFi hotspot for visitors to use.

Next - the new decade begins

The RTC finishes up...

Part 4 in a 7 part series

As the savings & loan debacle worked its way through the Arizona economy in the early 1990's, no one was spared. Locally, that meant a degree of pain for the developers & builders working in Val Vista Lakes. The Val Vista Lakes Partnership went into bankruptcy during this time, and the position of "declarant" (the legal entity in charge of assets & money until homeowner control is conveyed) fell to the RTC. We here in Val Vista Lakes were fortunate to have as our RTC liaison an honorable local attorney named Cary Forrester. Besides assembling the various remaining assets for sale to the highest bidder, he was responsible for the monthly subsidy to the HOA. Often, in the early years of a project, builders will keep resident HOA dues low, by way of a subsidy. Val Vista Lakes was no different, and our dues of roughly $30 per month were actually subsidized by another $25 - 30. This was a sizable check to write each month, but the checks always cleared. Cary continued the practice of allowing the homeowners to have a chartered (surrogate) HOA, which was called a Homeowners Rep Group, and performed the basic functions of the HOA, which at this time, existed only in his name. He WAS the HOA for legal purposes, while a group of dedicated homeowners held monthly meetings, addressed concerns that HOAs have, and basically kept Val Vista Lakes Community Association a viable entity for residents & guests.

During this timeframe, the RTC also packaged and sold the remaining lots (both commercial & residential) that were not already privately owned. The package that was finally sold was likely worth much more than the roughly 8 million dollars paid by a Chicago based partnership, the Public Pension Fund II - headed locally by the very nice Jeff Newburg. Where Val Vista Lakes was fortunate to have Cary Forrester, we were twice lucky with Jeff Newburg. He continued the funding of the subsidy until that obligation ended in 1994, and he agreed to fund the reserve account for the HOA to at least the amount that the partners had always bragged about - $50,000. This was as good as we could have hoped for... Many articles appeared in the local papers, telling of failed developments in the PHX area, where the RTC sold the assets to vulture funds, and where very vulture-like activity took place. Again, Val Vista Lakes came out ahead of the pack. Real estate sales were brisk, and resales were beginning to outnumber new build sales... times were good, and soon to get better.

Part 5 next

Real Estate Sales in Val Vista Lakes, Gilbert Arizona - History Repeats Itself?

Part 3 in a 7 part series

By the late 1980's, sales in Val Vista Lakes were brisk, although much of that would be attributed to the builders, with their large advertising budgets... Richmond American, Ryland, McBail, and A&M homes were the major players on the production side, with a large numbers of custom builders putting up homes in the custom areas. Times were good - the community was coming together as Dennis Barney and the rest of the partners had envisioned. But, storm clouds were on the horizon... In late 1986, the seemingly dead "Tax Reform Act" came to life and was passed by Congress, and the air was beginning to leak out of the real estate balloon. By 1989 / 1990, the writing was not only on the wall, it was on the notices being delivered to the Val Vista Lakes Partnership from Western Savings, the major lender to the partners for their development money. Western Savings itself was on the ropes, and soon the Resolution Trust Corporation, a newly minted entity, was knocking on their doors. The news media had fun with the headlines - "Val Vista Lakes Declares Bankruptcy" sounded much worse than the more accurate "Val Vista Lakes Partnership" declaring the same. That aside, the partners' days here were coming to an end.

From the start, the RTC was an awkward dance partner for a community like Val Vista Lakes. They were charged with cleaning up and selling the remaining assets of numerous failed savings & loans, plus a number of banks as well. The local Val Vista Lakes assets were mainly the commercial corners, a few scattered lots, and the crown jewel that became Crystal Shores. This was to be the last-developed custom area, sure to command top dollar, as it faced directly west on the main lake towards the clubhouse. The RTC knew the history, and was even understanding of the larger concerns of residents, but the market was not good for custom lots in the early 90's. Production it would be. Shea Homes ended up with the land, and went on to build a very nice lakefront subdivision... The public loved the homes, and the head sales guy even moved into one of them with his family.

Next - the RTC finishes up

Real Estate History in Val Vista Lakes, in Gilbert Arizona. The tropical water wonderland of Val Vista Lakes was not always what visitors & residents see when they drive thru the shady, tree-lined streets. Once upon a time, not all that long ago, actually, the land was a sheep farm. Then, in the early 1980's, a group of land developers had the grand idea to plan out and build what would become the marvelous lake-based community we know as Val Vista Lakes. These guys had been successful as mini-farm subdividers, and this venture would take them in a new direction. Val Vista Lakes would be a larger community than they had tackled before, but it would also feature a huge clubhouse, and several man-made lakes. The water rights were negotiated with the Salt River Project, and construction began around 1984. Lakes & clubhouse first, and then the various builders began their model homes. Val Vista Lakes was coming to life!

The first homes were completed in 1986, and residents arrived right away. Coming mainly from California and the midwest, these residents enjoyed the flavor here - no desert landscaping, and plenty of "Santa Barbara meets Newport Beach" styling. Advertising was always easy for the developers before, but now they were feeling the challenge of a slowing market, thanks to effects the 1986 tax reform act. Instead of large print ads, they brought in musical attractions, namely The Righteous Brothers & The Beach Boys. Spinnaker Bay Park was transformed into a very "cool" place for a few magical events, and people came out in droves. The concerts worked to get the word out, and sales remained brisk. Families loved the sandy beach lagoon, the indoor racketball courts, the tennis courts, and the idea that they were fully vested owners in a 32,000 sq ft clubhouse that doubled as a wedding reception hall. Times were good in Val Vista Lakes!

Next to come... The RTC days

Real Estate for sale in Val Vista Lakes is moving off the shelves like crazy! There are over 2000 homes in Val Vista Lakes, yet just 41 homes are for sale right now. And, there are over 35 homes in escrow! The buyers are out there, folks... Priced right, homes in Val Vista Lakes will sell in a relatively short time frame, normally under 60 days. The clubhouse (www.ValVistaLakes.ORG ) is the centerpiece of the community, with tennis, racketball, pools, ballrooms, and much more. Every weekend, weddings grace the oval adjacent to the sandy beach pool.

So, why do many residents elect to stay in Val Vista Lakes when they move up or down? Well, as so many folks have found when they moved to Arizona, their social and family roots are in another state, and the desire to fit in is paramount. Val Vista Lakes offers the perfect environment to re-create that small town feel that is missing elsewhere... Other subdivisions in Gilbert, with homes built by the same builders, same age & floorplans, are fine, but are just a collection of homes, with a greenbelt or a single tennis court for common amenities. Here in Val Vista Lakes, we have the 32,000 square foot crown jewel of North Gilbert... The clubhouse, and the related activities & programs, are the glue making residents feel like part of a small town, one that Norman Rockwell would have loved!

To summarize, with prices down to 2003 levels, and loan rates very favorable, buyers have found Val Vista Lakes once again. Our homes may be a bit older than areas farther south, but our friendly residents more than make up for it! Come see what makes this one of the most desirable areas of the whole east valley!