There are two separate but interconnected investments, PEI – Cannon Ranch & PEI – Cannon Ranch 1b.
PEI Cannon Ranch is the residential project. We acquired bank-owned land entitled for 4200 residential lots for $16M that had been in escrow for $160M in 2006. The former buyer fell out of contract when the market collapsed so the owners filed bankruptcy and the property went back to the bank. We partnered with two NY hedge funds (who bought in for 90% and we own 10% of the project). The business plan is to finish the Final Map, and then sell lots in bulk to builders starting in 2016.
We changed the name of the community from Cannon Ranch to the Mirada and changed the amenities from a golf course to a water community, using Crystal Lagoon technology. The development is located just 30 miles Northeast of Tampa, FL.
PEI Cannon Ranch 1b is 29 acres slated for commercial use, adjacent to the residential development. Our group purchased the land for $1.2M (it had sold for $6.5M in 2004). We are holding this land until construction on Mirada begins, which would increase the need for commercial property (namely a grocery store).
You can learn more about the project below, and also review the updates. We are allowing a very limited number of new investors to participate, while replacing some older investors who needed to exit at this time.