Miracle deal: Legacy Sports Park in Mesa to be acquired out of bankruptcy
Oct 25, 2023, 1:15 PM
(Jim Poulin/Phoenix Business Journal)
Attorneys for Legacy Cares, the nonprofit that owns the 320-acre Legacy Sports Park in southeast Mesa, announced Tuesday that a deal has been struck to sell the financially beleaguered sports complex out of bankruptcy.
Burke Operating Partners LLC, which is a private equity firm based out of the San Francisco Bay Area, will acquire the park if the deal ends up being approved by U.S. Bankruptcy Court. The PE firm’s managing partner, Mike Burke, describes his position on LinkedIn as “currently leading all aspects of several acquisitions involving businesses facing financial, legal, and/or operational challenges.”
The total cash consideration for the transaction will be just over $25.5 million, with Burke putting in approximately $19.5 million and Pacific Paving LLC, which owns the land in Mesa that Legacy Cares leased and built the park on, providing $6 million in cash.
The broad terms of the deal were outlined in a court hearing Tuesday afternoon with the majority of the proceeds – a little over $19 million – of the sale going towards settling mechanics’ liens. UMB Bank, which is the bond trustee for the bonds used to build the park, will get $2.2 million and 11% equity in the park. The rest of the funds will be used to pay off professional and administration fees and other claims against Legacy Cares.