Renowned residential developer Blandford Homes has won the bid for 115 acres of prized state land in Mesa, Arizona.
The company acquired the land near Hawes and Warner roads as part of the 1,200-acre Hawes Crossing community for nearly $38 million, Reported by AZCentral.com.
Blandford Homes plans to build 450 to 525 homes on the site, with model homes due to open in late 2025 or early 2026.
Bradford was the sole bidder for the property.
The company’s founder and president, Jeff Blandford, expressed confidence in the Phoenix real estate market, citing strong job creation in the city and a significant relocation of people from other states to Arizona.
“The limited land available for residential construction in the East Valley and Mesa was a significant factor in this acquisition,” he told the outlet.
The housing market in the Phoenix area has seen an upturn this year, driven by a decline in the supply of existing homes.
Both new and existing home sales will decline in the second half of 2022 due to rising interest rates. However, the market has shown resilience, with about 9,250 new homes sold in the Phoenix metropolitan area through May, down less than 1% from the first five months of last year.
The median price of a new home in Silicon Valley is $475,000, about $40,000 more than an existing home.
“Residential construction is back,” Nate Nathan, a land specialist with Nathan Associates, told the outlet. “Population and employment growth remain strong.”
The City of Mesa has annexed multiple dairy farms, county land, and state land in 2020, paving the way for mixed-use projects that are expected to attract residents and create jobs.
In addition, the construction of apartments and shopping malls in new developments has begun.
Another 165-acre state-owned parcel, at the northeast corner of Warner Road and near Loop 202 in Hawes Crossing, is scheduled for auction on Aug. 29.
The lowest bid for the lot was $62.7 million.
Housing development in Arizona has been looming under a cloud of uncertainty, though not necessarily a rain cloud, due to groundwater shortages.
The state recently announced that it lacks sufficient groundwater to support approved housing construction in the Phoenix area.
State officials have decided to halt construction of new subdivisions, which could end the rapid growth that has propelled Phoenix to become the fastest-growing metropolitan area in the United States.
— Ted Glazer
