Target parameter estimation performance is investigated for a radar employing a set of widely separated transmitting and receiving antenna arrays. Cases with multiple extended targets are considered under two signal model assumptions: stochastic and deterministic. The general expressions for the corresponding Cramer-Rao lower bound (CRLB) and the asymptotic properties of the maximum-likelihood (ML) estimator are derived for a radar with $M_t$ arrays of $L_t$ transmitting elements and $M_r$ arrays of $L_r$ receiving elements for both types of signal models. It is shown that for an infinitely large product $M_tM_r$, and a finite $L_r$, the ML estimator is consistent and efficient under the stochastic model, while the deterministic model requires $M_tM_r$ to be finite and $L_r$ to be infinitely large in order to guarantee consistency and efficiency. Monte Carlo simulations further investigate the estimation performance of the proposed radar configuration in practical scenarios with finite $M_tM_r$ and $L_r$, and a fixed total number of available receiving antenna elements, $M_r L_r$. The numerical results demonstrate that grouping receiving elements into properly sized arrays reduces the mean squared error (MSE) and decreases the threshold SNR. In the numerical examples considered, the preferred configurations employ $M_t M_r > 1$. In fact, when $M_t M_r$ becomes too small, due to the loss of the geometric gain, the estimation performance becomes strongly dependent on the particular scenario and can degrade significantly, while the CRLB may become a poor prediction of the MSE even for high SNR. This suggests it may be advantageous to employ approaches where neither $M_tM_r$ nor $L_r$ are too small.