Lennar Corp., a major homebuilding company, emerged as the victor in a competitive bidding war for a sizeable plot of infill land in Phoenix, according to ABC15. The auction, hosted by the Arizona State Land Department on Jan. 3, saw Lennar's winning bid of $32.3 million for the 79.85-acre site, which prominently sits just east of Six Flags Hurricane Harbor Phoenix water park. The bidding started at $15.7 million and increased in $100,000 increments, enduring a tense 45-minute duration.
The bid competition drew interest from several formidable players in the development industry, including Phoenix-based Evergreen Development Co. and D.R. Horton Inc., headquartered in Arlington, Texas. However, these companies bowed out before the final round of bidding. The last moments of the auction boiled down to a head-to-head clash between Lennar and Ashton Woods of Alpharetta, Georgia, the latter stopping short at $32.2 million as noted by Jeff Gunderson, Lennar's senior vice president of land operations, in a statement obtained by Phoenix Business Journal.
Arizona State Land Department auctions have drawn a steady crowd of homebuilders and developers in recent years, with the department forecasting over $300 million in sales by the end of the 2024 fiscal year. Past high-profile acquisitions include the Mayo Clinic's $139 million purchase for a 228-acre parcel and D.R. Horton's $245.5 million splurge for 2,783 acres in the far East Valley.
The prized parcel near 43rd Avenue and Pinnacle Peak Road, once home to Adobe Golf Course, promises potential for Lennar, with its proximity, to major employment hubs. "Just from a location standpoint, we're extremely excited about being the successful bidder at the auction," Gunderson explained to ABC15. Lennar plans to construct about 300 homes on the site, with the development process, including zoning and platting, expected to take around 30 months before model home construction can begin.
Gunderson indicated that home sizes would range from 1,700 to 3,000 square feet without committing to specific price points at this juncture. The strategic move by Lennar aims to cater to the housing needs of those stepping up on the property ladder for the first or second time in the Phoenix area. Additionally, the Lennar team has its sights set on tapping into the demand from employees at the Taiwan Semiconductor Manufacturing Co. Ltd's expansive manufacturing plant underway nearby, by providing housing at its Middle Vistas community, situated just three miles away from the new site.
