According to a December 3, 2007 Article many builders are selling land once worth billions for 40-60% of book value. Recently Lennar Corporations sold 11,000 home sites to a venture mostly owned by Morgan Stanley. The sale of these lots valued at $1.3 billion as of September 30, 2007, $525 million ... a mere 40% of the book value. These sites are located in 32 communities in some of the hardest hit areas in the country.
Lennar Corporation will have a 20% ownership in the venture which may explain the reduced price. The corporation also has the right to repurchase some of the home-sites.
D.R. Horton, just weeks before, sold 7,000 acres outside Phoenix for $70 million.
Some of these sales are triggered by tax concerns and would allow the companies to recoup taxes as far back as 2005.
This is a major move for troubled builders and maybe the signs of desperate times.
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