PulteGroup and Tri Pointe Homes completed their final land acquisition from the state of Arizona to build a master-planned community near Phoenix.
Tri Pointe and Pulte closed on their purchase of a 274-acre parcel west of 83rd Avenue between Happy Valley Road and Jomax Road in Peoria, Arizona, for $63 million, the Phoenix Business Journal reported. The price works out to $230,000 per acre.
The land will be part of the 1,200-acre Aloravita residential community.
Phoenix is a balanced market, but prices have dropped, with the median list price down 7.3 percent year-over-year in April to $475,000. according to Realtor.com. Homes are sitting on the market an average of 54 days.
Tri Pointe and Pulte were the winning bidders for the land in October 2024. They received a certificate of purchase and only had to pay interest on the land until the deal was closed. In the interim, Tri Pointe and Pulte have been working with the City of Peoria to secure entitlements to develop the property.
The developers would have surrendered the land back to the state and sent it back to auction if it had defaulted on any of the terms in the joint venture’s certificate of purchase. Tri Pointe and Pulte scooped up a separate piece of property after the previous certificate holder, Patriot American Arizona LLC, defaulted on land it won at auction. In 2020, Shea Homes was the winning bidder for that land, closing on the 415 acres in 2022 for nearly $46.8 million. Shea then entered into a joint development agreement with Pulte and D.R. Horton to develop that site, which is part of the larger master plan.
With the last piece of the Aloravita site now under PulteGroup and Tri Pointe’s ownership, the joint venture can begin work on 568 homes across the 274-acre patch. Tri Pointe will build 275 of those homes and Pulte will build 293, erecting the residences in phases, with the first phase including 109 for Tri Pointe and 164 for Pulte.
PulteGroup first started assembling its Aloravita package in 2017 with its first purchase for the planned enclave. In total, Pulte holds 860 lots in the entire Aloravita master-planned community. Model home construction is expected to begin late next year.
— Chris Malone Méndez
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