Fox Creek Extends ‘Leaseback’ Option
As construction officially commences at The Ridge, Brookfield Communities’ newest neighborhood at its Fox Creek development along the Colorado River in Bullhead City, a few select homebuyers will be able to participate in a unique “leaseback” program.
Here’s how it works: Brookfield sells a home to an individual buyer who agrees to leaseback the home to Brookfield Communities. Brookfield Communities then builds a home on a view lot in its Fox Creek master-planned community. The lease agreements, at least for two years at about 7 percent, gives usage of the home back to Brookfield who use the home as a model to sell other homes in the community.
Over the years, Brookfield Communities has successfully “leased back” more than 50 homes in its Bullhead City and northern Arizona master-planned communities. The program is ideal for buyers who may want retire and move to Bullhead City in the future, but want an immediate income producing asset which also appreciates over time. The program also gives buyers a set price point before they take residence. About 50 percent of these leaseback buyers move into the homes over time, after the lease is up.
The upside for the buyer is that the home is never lived in – it is simply used as a model home to showcase the community to potential buyers – and is well cared for during the lease timeframe. Typically, these homes also have many upgrades and maintenance is handled by Brookfield Communities as well.
While Brookfield is looking at the leaseback program for five of its models in Fox Creek, it has successfully used the leaseback strategy for homes at its Verde Santa Fe master-plan near Sedona as well as for nearly two decades at Fox Creek in Bullhead City.
“The biggest plus for buyers is a guaranteed above market interest rate return on a new home they will purchase just over the cost of construction,” said Phil Petersen, founder and president of Brookfield Communities. “After the lease, the home is turned over in perfect, never used condition.”
Recently, Bullhead City officials approved the final details at The Ridge, giving Brookfield Communities the green light to begin construction of the new neighborhood at Fox Creek.
Homes and neighborhoods in The Ridge feature revolutionary designs including an expansive mix of architectural styles – from Bungalows to Mid-century to Modern. The Ridge at Fox Creek sits on a high ridge at Brookfield Communities’ master-planned community near the Colorado River and across from Laughlin, Nev. The Ridge, with mountain and desert views, is on the highest point in Fox Creek. The Ridge is comprised of four separate ridgelines and features natural arroyos, unspoiled terrain and high desert vegetation. Lush landscaping, large trees and “The Roost” – an exclusive community clubhouse will complete The Ridge. The Roost includes a bar area, a swimming pool and built-in recreation amenities for residents to enjoy. Lots in the first phase of The Ridge are limited to 48 and are now available.