Three major homebuilders acquire land near TSMC

Article originally posted on Phoenix Business Journal on December 2, 2024

Three major homebuilders have teamed up to buy nearly 300 acres of state land in Peoria.

California-based Shea Homes, which was the applicant for the Arizona State Land Department auction held Nov. 25, selected Lennar Corp. (NYSE: LEN) and Toll Brothers Inc. (NYSE: TOL) to buy the state land and build 700 homes on the site at the northeast corner of Dixileta and Litchfield road alignment.

The trio was the sole bidder for the parcel, nabbing the property for the minimum bid of $46.89 million.

Jon Fisher, vice president of land acquisition for Shea Homes, said Lennar will take more than a third of the 279.8-acre parcel, while Shea Homes and Toll Brothers will split the remaining balance.

“We still have to go through zoning and the entitlement process but the goal is to have about seven communities within the master plan between the three builders, with somewhere around 700 home sites,” Fisher said. “We have a couple of years to work through the entitlement process before we’ll actually purchase the land with our partners.”

When the Arizona State Land Department auctions land to homebuilders, they have the option to close on the land within 30 days of the auction or take the certificate of purchase (CP) option that allows the state to hold the land while homebuilders pay interest on the outstanding balance each year, Fisher said.

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