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Land Ho! Developer Ponys up $58M for 1000 Acres

By Jay Thompson

Real Estate Technology with Zillow

December 08, 2006 11:11 AM

Despite the bubbleheads predictions of the impending collapse of the real estate market in the known universe, real estate growth transactions continue to happen.

Desert Communities, Inc (an affiliate of Vegas based Rhodes Homes) just plunked down 58 million bucks for 1,010 acres in the Southeast Phoenix Valley. That seems like a lot of land, and a lot of coin. And it's not chicken feed.

But what's more impressive is this is truly just the tip of the iceberg. This part of the Phoenix Valley (between Apache Junction and Florence, AZ) is but a small part of 275 square miles of state land -- and it's ripe for development.

Estimates for this 10 billion dollar hunk of land (yes, that's billion with a "b") is that it will eventually be the home of 1,000,000 people. (yes, that's one million people). Sure, there's not much there yet, but there will be. Probably before we know what hits us.

By my rough calculations, 1,000,000 people are going to need 300,000 homes. Someone's got to sell them...

More here, including a link to the article in the Arizona Republic.

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Eddy Martinez

Nationwide Funding Group - Highland Park, CA

Thats really good news for all of us. I do loans in Arizona. This will surely increase your production.

Dec 08, 2006 11:17 AM

Chris Griffith

Downing-Frye Realty, Bonita Springs, FL - Bonita Springs, FL

Bonita Springs Listing Specialist - Agent

I can't believe how the PHX area has grown. I make several trips a year (from FLA) and can't believe the difference on each trip. Amazing.

Dec 08, 2006 11:20 AM

Maureen Francis

Coldwell Banker Weir Manuel - Bloomfield Hills, MI

Coldwell Banker Weir Manuel

Yo, T-Preg,

Your site is loading like molasses in January.

And, is there no justice? I ask you why you didn't blog about zillow and then you get tons of traffic for you late day post! On mybloglog you were #4 on my list of hot topics in my groups. Nice job.

Dec 08, 2006 12:09 PM

Renée Donohue~Home Photography

Savvy Home Pix - Allegan, MI

Western Michigan Real Estate Photographer

I live "at" Rhodes Ranch. Rhodes puts together a really nice master planned product. I like Tuscany here more than Rhodes Ranch. Their models are so different and priced right, not a great location though.

I just visited their "urban living" townhomes @ X-It yesteday but their models still aren't done.

They definitely think outside of the box and probably will do VERY well in phoenix

Dec 08, 2006 02:47 PM

Brian Brady

Matthews Capital Markets - Tampa, FL

858-699-4590

As a former 12 year resident of the Valley, I have to ask the inevitable question. A million more in the SE Valley, a million more in Buckeye...where's all the water coming from?

Dec 08, 2006 05:15 PM

Jay Thompson

Zillow - Seattle, WA

All - thanks for commenting. As for Phoenix growth, I've only lived here for eight years (but it has changed a LOT since then). My lovely bride on the other hand, was born and raised in The Valley of the Sun. SHE has seen some *amazing* changes...

Maureen - T-PREG seems to be loading fine for me. Still seeing it creep along? And no, there is no justice.

Brian - where's all the water coming from? We just steal it from Colorado. And California.... :)

Dec 08, 2006 06:17 PM

They steal it from Nevada too! California thinks they got screwed?

An excerpt on the Colorado Compact:

After 11 years the mammoth and complicated case concluded. The decision in Arizona v. California resulted in major power shifts, between the states and between the states and the federal government. Colorado River water was apportioned, with California receiving 4.4 maf, Arizona 2.8 maf and Nevada 300,000 af, with each state also awarded all the water in their tributaries. Arizona was a big winner, gaining almost all the advantages it sought in the 1922 compact. A nagging water supply problem was resolved.

This was all negotiated before Nevada really came into existence. Hoover dam & the railroad were the turning point and creation of the gambling mecca it has become today!

Dec 09, 2006 02:07 AM

Maureen McCabe

HER Realtors - Columbus, OH

Columbus Ohio Real Estate

Thanks for sharing this with the "My other blog is" group Jay. This is just what I want to see on that group. I had found your blog via Technorati already...

Dec 09, 2006 03:40 AM

Tony and Suzanne Marriott, Associate Brokers

Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ

Coldwell Banker Realty

I have missed seeing you blog on Active Rain. Therefore I have decided to encourage you to post again - lest I pass you up in the points for #1 in Arizona! :-) Had lunch with Jonathan Dalton the other day. He had great things to say about you - and told me he would give you a heads up! :-))

Dec 11, 2006 01:49 PM

Hey Tony - I've been really busy and have been not-so-active on ActiveRain. But I've seen you blazing to the top of the Arizona list! Thanks for the motivation to return!!

Dec 12, 2006 02:47 AM

Land Ho! Developer Ponys up $58M for 1000 Acres

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