(Phoenix) In what real estate professionals have categorized as a challenging market for land sales, the Arizona State Land Department successfully sold two parcels of Arizona State Trust Land in Peoria for a combined $102.5 Million.
"The market for land for development is in flux," Arizona State Land Commissioner Mark Winkleman stated after the auctions. "The fact that we sold the land for over $100 Million shows that this State Trust Land is well situated near existing successful projects and an appropriate location for reasonable growth in the City of Peoria."
The parcels, both approximately 630 acres, are located on the north and south sides of Jomax Road between 83rd and 67th Avenues. The successful developments of West Wing Mountain Ranch and Terramar are located nearby.
The successful bidder at both auctions was Patriot American Arizona, L.L.C., represented by Daryl Sherman. This was the first time Patriot American purchased Arizona State Trust Land at auction. Patriot American paid $51 Million for the parcel to the south and $51.5 for the northern parcel. Toll Brothers Homes, who has spent hundreds of millions of dollars purchasing State Trust Land in the past, competed in the second auction for the northern parcel, but eventually dropped out.
"The Arizona State Trust Land located in the urban areas in the Valley are uniquely situated and are extremely valuable," Commissioner Wink leman continued. "Even with today’s evolving market, we remain dedicated to earning millions for Arizona education."
The Arizona State Land Commissioner serves as trustee of over 9.3 million acres of Arizona State Trust Land. The proceeds from the sale of Arizona State Trust Land are delivered to the beneficiaries of the Arizona State Trust Land Permanent Trust Fund, primarily Arizona Common Schools, K through 12.