GTIS Partners and Harvard Investments Acquire 563 Acres of Residential and Commercial Land in Mesa, AZ

GTIS Partners Second Land Acquisition in Phoenix Submarket in Past Two Years

NEW YORK--(BUSINESS WIRE)--GTIS Partners, a real estate firm headquartered in New York City with an office in São Paulo, Brazil, and Harvard Investments, today announced the acquisition of a 563-acre parcel of land in the Phoenix, Arizona, submarket of Mesa. The City of Mesa land, part of the former General Motors Desert Proving Grounds, was acquired from a private investor.

“We are extremely pleased with this acquisition and look forward to what we believe will be one of the finest master planned communities in the Southeast Valley”

The parcel is entitled for 3,500 residential and multi-family units. Fifty acres has been designated for commercial use, which could include retail, office and hospitality space.

“By almost every measure, Phoenix and its environs have emerged as one of the fastest-growing single-family home markets in the country,” said Rob Vahradian, Senior Managing Director of GTIS Partners. “Demand for single family homes in the Southeast Valley area is high, but supply is dwindling because of low supplies of resale inventory and finished lots.”

Added GTIS Partners Vice President Teddy Karatz, “When you add to this a rise in Phoenix new home permits that are on pace to exceed last year’s applications by more than 75%, investment in single family residential lots becomes an exceedingly attractive proposition.”

Funds, including a co-investment vehicle, managed by GTIS Partners invested equity capital in a joint venture with Harvard Investments, a real estate investment and development company. Harvard Investments will serve as operating partner, managing the day-to-day operations of the deal.

“We are extremely pleased with this acquisition and look forward to what we believe will be one of the finest master planned communities in the Southeast Valley,” said Craig L. Krumwiede, President and Director of Harvard Investments. “When completed, the property will reflect the attributes of a new traditional community that draws on influences from modern growth principles and the timeless quality of historic American neighborhoods.”

The Mesa property is located along the Interstate 202 corridor, one of the primary employment routes in the area, and also is in close proximity to the Mesa Gateway Airport and Arizona State University Polytechnic Campus. Mesa is one of the nation's fastest-growing cities, and is the third-largest metropolis in Arizona.

In 2010, GTIS Partners, in partnership with Southwest Value Partners, acquired Merrill Ranch, a 4,500- acre property in northern Pinal County, approximately 30 minutes south of Mesa. That parcel is entitled for up to 18,000 residential lots. An additional 900 acres are fully entitled for commercial use.

About GTIS Partners

GTIS Partners is a global real estate investment firm headquartered in New York with an office in São Paulo. GTIS Partners has 56 employees and currently manages approximately $2.1 billion of committed equity. The firm pursues opportunistic real estate investments through direct equity investment and non-traditional lending activities. To date, the firm has committed capital to residential, retail, industrial, office, hotel, and mixed-use projects in the U.S. and Brazil, and is among the largest real estate private equity companies in Brazil. The firm’s principals have over 90 years of investment, management, and operations experience, which spans all major property types and geographies. By combining hands-on real estate expertise with a disciplined investment approach, GTIS Partners creates value for its investors and partners. For further information please visit www.gtispartners.com.

About Harvard Investments

Harvard Investments is a subsidiary of the Hill Companies, the oldest land development company in Canada. The Hill Companies has operated continuously in Canada as a privately held company since its inception in 1903, and has been active in the United States since 1980. Harvard has an extensive history as a qualified and successful land investor and developer. In Arizona alone, Harvard has planned, engineered and/or developed over 40,000 single family residential lots on 21,300 acres. For further information, please visit www.harvardinvestments.com.