John Paulson’s Real Estate Recovery Fund is betting on land in Arizona, Colorado and Nevada.
Paulson’s fund (managed by former Lehman Bro, Mike Barr) apparently lost a bid on TOUSA land in Florida to Starwood Land Ventures LLC in January.
This time around, Paulson’s Recovery Fund be the first bidder on lots in various stages of development in Arizona, Colorado and Nevada, two of the “bubble states” where land prices of finished lots are soaring. (The third is California. Colorado is not a bubble state.)
“If we take a piece of property to market we’re going to have every publicly traded homebuilder participate in a bid,” Norm Scheel, a principal in a California and Nevada land brokerage, told Reuters.