North Phoenix New Home Developments (Scottsdale, Chandler: apartments, condos, buy)

[WriterDude]

Hi Everyone,

At this point, I think everyone has heard about the big Pulte/Taylor Morrison development on Deer Valley (Taylor Morrison Press Release), but yesterday I saw on the land auction page that DR Horton has purchased a 96 acre parcel on Mayo. It's right next to the 90 Degrees apartments, on the south side of the street.

Here's a link to the auctions page: https://land.az.gov/auction-results. No news items to describe it - this doesn't seem to have hit AZ Central, and there's no press release on the DR Horton website.

Perhaps north Phoenix new home development is starting to warm up a bit? Does anyone have any information about this?

[observer53]

Originally Posted by WriterDude

Hi Everyone,

At this point, I think everyone has heard about the big Pulte/Taylor Morrison development on Deer Valley (Taylor Morrison Press Release), but yesterday I saw on the land auction page that DR Horton has purchased a 96 acre parcel on Mayo. It's right next to the 90 Degrees apartments, on the south side of the street.

Here's a link to the auctions page: https://land.az.gov/auction-results. No news items to describe it - this doesn't seem to have hit AZ Central, and there's no press release on the DR Horton website.

Perhaps north Phoenix new home development is starting to warm up a bit? Does anyone have any information about this?

Between those two developments (the other being four times as large), it would seem that things are getting better in the residential construction area.

[ScottsdaleMark]

The Desert Ridge area bounced back from the Recession as quickly as any area in the Valley in terms of existing home values. So I know It's a hot area and I guess that's why Taylor Morrison and Pulte paid so much for the land. 100 million for the land is 244,000 an acre. The DR Horton buy of 90 acres off of Mayo cost them 385,000 an acre. These are primo prices for land in a primo location, although not Scottsdale-level prices. I see 12 acres at Scottsdale and Union Hills sold last year for 1.6 million an acre, apparently they plan to build 300 condos there. I guess it just goes to show you how valuable a big plot of clear land is, versus what individual lots (in-fill) command on the land market.

Thank you for the link to the auction results, OP.

[WriterDude]

Originally Posted by ScottsdaleMark

Thank you for the link to the auction results, OP.

You're welcome!

I'm just fascinated - I agree, $244k-$385k/acre is steep. After they split the land into lots, open space, roadways, drainage, and the like, they may be limited to 5-6 buildable lots per acre. That compares unfavorably to the per-lot pricing in Chandler/Gilbert, where their costs would be up to $50k less per lot.

So the way they pencil out the home cost means houses up in North Phoenix can cost $100k-$150k more than the same house in Gilbert. I'm guessing if DR Horton goes for a more affordable product, they could do really well up there. (If they'd build an 1800-2100 sq ft 3br/2.5ba for about $400k, they'd sell out in a week.)

And of course, what I really REALLY want is for someone to re-activate construction on the areas off of Deer Valley past 56th St.

https://goo.gl/maps/XgoDWUEatrP2

For years now, I've been looking at those developments like the Nazca lines in Peru. All of those abandoned developments from the housing collapse. C'mon Arizona Land Development - sell that land less expensively, build 56th through to Pinnacle Peak, build Deer Valley down to the 64th St. ramp onto Loop 101, then step back and watch that area boom.

[Zippyman]

Originally Posted by WriterDude

You're welcome!

I'm just fascinated - I agree, $244k-$385k/acre is steep. After they split the land into lots, open space, roadways, drainage, and the like, they may be limited to 5-6 buildable lots per acre. That compares unfavorably to the per-lot pricing in Chandler/Gilbert, where their costs would be up to $50k less per lot.

So the way they pencil out the home cost means houses up in North Phoenix can cost $100k-$150k more than the same house in Gilbert. I'm guessing if DR Horton goes for a more affordable product, they could do really well up there. (If they'd build an 1800-2100 sq ft 3br/2.5ba for about $400k, they'd sell out in a week.)

And of course, what I really REALLY want is for someone to re-activate construction on the areas off of Deer Valley past 56th St.

https://goo.gl/maps/XgoDWUEatrP2

For years now, I've been looking at those developments like the Nazca lines in Peru. All of those abandoned developments from the housing collapse. C'mon Arizona Land Development - sell that land less expensively, build 56th through to Pinnacle Peak, build Deer Valley down to the 64th St. ramp onto Loop 101, then step back and watch that area boom.

There's no need to discount anything & I don't see that area filling up with single-family homes - it'll end up with small (expensive) low-rise condos, which is appropriate for the area. If people want single-family residences at affordable prices, all they need to do is get over their internal biases against living *in* the city of Phoenix & buy one or two more exits further down the expressway. $200k will get you pick of the litter @ cave creek road or 7th street. The area is already "booming" with infill developments, new apartments & brownfield redevelopments without any subsidies.