Michael Clancy
The Arizona Republic
Mar. 25, 2008 10:59 AM One of the last remaining large parcels in northeast Phoenix’s Desert Ridge community will go to bidders on Thursday.
The Arizona State Land Department hopes to sell the 205-acre site for $42 million plus an infrastructure commitment. Under the Desert Ridge Specific Plan, most of it is zoned for low-density residential.
The land brackets the golf course at the J.W. Marriott Desert Ridge Resort on the northern and eastern sides. It runs along the south side of Pinnacle Peak Road and the western side of 56th Street. The parcel is unusually shaped. One block is at the southeastern corner of Tatum Boulevard and Pinnacle Peak. It is zoned for 200 units, possibly multifamily residential. The rest of the land forms an L around the golf course.
Joe Shopper, a real estate broker who is part of a group looking at the land, said the finances may not be right for a sale. He pointed out that in order for a buyer to make any profit, the homes would have to be in the $3 million to $5 million range.
Shopper said his group hoped to rezone the corner of Pinnacle Peak and Tatum for commercial to help defray the costs, but the chances of success are unlikely. He said a luxury condo development also appears unlikely.
The applicant for the property is Arizona Village Communities, which has developments in Chandler and Carefree.
Paul Meka, the company’s land-acquisition specialist, said in January that the company intends to bid on the property. He was unavailable on Monday for an update.
The total price comes to more than $200,000 an acre, relatively low for Desert Ridge. The most recent sale of a large parcel there brought in more than $550,000 per acre in April 2007, and a smaller parcel sold for more than $1 million an acre in May.
One other large parcel, about 265 acres at the southeastern corner of 56th Street and Pinnacle Peak Road, is unsold in Desert Ridge.
The Desert Ridge Specific Plan, which governs development in the area, allows 1,098 homes to be built in the area up for auction on Thursday, but Arizona Village Communities’ Web site talks about 800 units total. www.theholmgroupaz.com
