Scottsdale Homebuilder Pays $25M for Large Tract of Land Along Loop 303
Article originally posted on Phoenix Business Journal on February 25, 2021
Scottsdale-based Taylor Morrison Home Corp. (NYSE: TMHC) has purchased 178 acres for $25 million along Loop 303 in the West Valley.
The nation's fifth-largest homebuilder bought the land on each side of Loop 303 just north of West Peoria Avenue in the city of Surprise. Taylor Morrison and KB Home (NYSE: KBH) already had built homes in the first section of the community, called Sycamore Farms.
Robert McGibney, regional president for KB Home, said KB Home already has sold out all its homes at Sycamore Farms and is now eyeing land further south down Loop 303.
"That whole area is really growing and becoming more vibrant than it was a few years ago as things start to fill in," McGibney said.
Near Sycamore Farms is Sterling Grove, a 780-acre community also in Surprise being developed by Horsham, Pennsylvania-based Toll Brothers Inc. (NYSE: TOL)
Jim Daniel, president of RL Brown Housing Reports, said there's also another six new future and active subdivisions west of Loop 303 between Waddell and Northern Avenue.
Nate Nathan, founder of Nathan & Associates Inc., said this is one of the last large residential tracts of ground left on the 303 corridor. He and Courtney Buck, sales associate with the Scottsdale-based land broker, negotiated the sale, which closed Feb. 18.
"It is becoming apparent that east of the White Tank mountains is becoming infill property," Nathan said.
This land buy comes at a time when Taylor Morrison is poised to open 150 new communities in its markets nationwide, including across metro Phoenix.
While Taylor Morrison officials could not be reached for comment, Sheryl Palmer, chairman, president and CEO, told analysts during a fourth quarter earnings call on Feb. 10 that her team has a good appetite for new land.