Startup to develop Rhodes assets

A Dallas-based startup will manage and develop the assets of bankrupt Rhodes Homes, primarily the master-planned Rhodes Ranch in the southwest Las Vegas Valley and Tuscany community in Henderson, a company executive said Thursday.

Dunhill Homes, operating for about a year, will also manage several commercial parcels, including 50 acres near the proposed Durango Station casino site at the southern beltway and Durango Drive.

Dunhill, a subsidiary of Winchester Carlisle real estate holding company, was selected by Carwin Advisors, which had advised first-lienholders throughout Rhodes' bankruptcy process.

A group of lenders led by Credit Suisse was owed
$370 million by Rhodes and took control of the assets in January in accordance with the restructuring plan approved by U.S. Bankruptcy Court Judge Linda Riegle. Rhodes' planned Pravada community near Kingman, Ariz., will be sold as part of the plan.

"Introducing a new builder to the market like this is a beautiful thing," said Don Boettcher, a former Pulte Homes executive who was named Dunhill's division president. "What better way to launch a new homebuilder than with two trophy properties in Las Vegas. We don't have the stress of the others, the skeletons in the closet. We don't have legacy issues when we turn our lights on in the morning."

Boettcher said he's evaluating how to reposition Dunhill and introduce new products in the market. He said his ultimate goal is maximizing return to creditors, who are now equity members under the reorganization plan.

Boettcher expects to close escrow on about 200 new homes this year, which would probably rank Dunhill among the top 10 builders in Las Vegas. Most of those homes would be at Rhodes Ranch, the larger and more mature of the two communities with 314 finished lots and 1,993 unfinished lots.

Rhodes, founded by Jim Rhodes, isn't the only builder to collapse in the housing downturn. Other bankruptcies include Beazer, Woodside and Engle. New-home sales in Las Vegas have fallen from a peak of nearly 39,000 in 2005 to slightly more than 5,000 in 2009.

Las Vegas-based SalesTraq reported 342 new home sales in February, down 4.5 percent from the same month a year ago. New home median price slipped 5.2 percent to $206,255.

SalesTraq housing analyst Larry Murphy said it's encouraging that someone convinced investors they have a chance to recover at least some of their $370 million, though the alternative is to do nothing and lose it all.

"It's a challenging time to recover anything," Murphy said. "On the other hand, look at Harmony Homes. They're buying lots from Pardee and Engle. They've got 10 subdivisions open and 107 (escrow) closings since they started."

Boettcher said Dunhill will pursue growth opportunities in Las Vegas to "expand the brand" over the next few years while completing development of Rhodes Ranch and Tuscany. The builder is also active in Dallas and Houston.

"We are very excited about this opportunity," he said. "We are proud to be a part of a fresh start for these exceptional real estate assets."

Dunhill's management is led by Chairman Richard Dix, former Mountain West area president for Pulte based in Las Vegas. Kevin Corbett, who worked for Centex and Engle in Las Vegas, was hired as the local division's vice president of finance.

Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.