Lennar buys 80-acre parcel in Phoenix for $32M

Homebuilding giant plans 300 units on abandoned golf course

Lennar Buys 80-Acre Parcel in Phoenix for $32.3 Million
Lennar's Jeff Gunderson; 79.85-acre land parcel (Getty, Linkedin, Arizona State Land Department)

Miami-based homebuilding giant Lennar Corp. won a Arizona State Land Department auction, securing an 80-acre infill land parcel for $32.3 million on Jan. 3.

The auction, which began with a minimum bid of $15.7 million, saw Lennar outbid three competitors, including Evergreen Development Co. and D.R. Horton Inc., with the final duel against Ashton Woods, which stopped bidding at $32.2 million, the Phoenix Business Journal reported.

Arizona State Land Department auctions have gained popularity among homebuilders and developers, with an estimated $300 million in sales expected in 2024. 

Lennar’s successful bid provides the homebuilder with a significant property in Phoenix, running along the south side of Pinnacle Peak Road, once the site of the Adobe Golf Course.

Jeff Gunderson, Lennar’s senior vice president of land operations, anticipates building about 300 homes on the site, ranging from 1,700 to 3,000 square feet. While the home prices haven’t been determined, the area near 43rd Avenue and Pinnacle Peak Road has been identified as a first-time and second-time move-up area for homebuyers. 

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Lennar intends to offer its own products, including multi-generational living NextGen homes, which is a “home within a home” that offers a separate entrance.

The construction timeline is estimated to be around 30 months away, as Lennar still needs to navigate the zoning and platting process. 

The company’s nearest community, Middle Vistas, about three miles away, is a 70-acre site positioned to cater to employees of the nearby Taiwan Semiconductor Manufacturing Co. Ltd’s manufacturing plant under construction.

Lennar recently bought the remnants of Veev, a modular building startup based in San Mateo that shut down last month after raising nearly $600 million and hiring up to 400 workers.

The homebuilder bought the proptech firm once valued at $1 billion for  “several dozen million” dollars, the San Francisco Business Times reported. Terms of the deal were not disclosed.

— Ted Glanzer