269 acres of state-owned land in Desert Ridge sells for $79M

A piece of state-owned land in north Phoenix’s popular Desert Ridge area sparked an hourlong bidding war between homebuilders last week. Winning bidder D.R. Horton Inc. paid $79 million.

The 269-acre parcel, east of 56th Street and north of Deer Valley Drive, was appraised for $54 million. Four builders bid for it.

It’s the priciest Arizona state land sale since builders Taylor Morrison Home Corp. and Pulte Homes partnered to pay $100 million for 410 acres in Desert Ridge in March 2016. The partnership was the only bidder for that site.

Builders Lennar, Shea Homes and Blandford Homes were the other three bidders at the April 25 auction. All had to bring a cashier’s check for $16 million to bid.

“Mature assets such as this parcel, when sold, provide opportunities for economic growth for not only the (State Land) Trust beneficiaries but also contribute to economic growth for all Arizonans,” State Land Commissioner Lisa Atkins said about the sale.

Proceeds from the sale will go toward K-12 public education.

D.R. Horton, the largest homebuilder in the U.S., hasn’t yet announced its plan for the site. The builder has several subdivisions underway across metro Phoenix. Its communities ranked among the top 10 Valley subdivisions for the most home sales last year.