(Phoenix) The Arizona State Land Department postponed today’s scheduled auction for land lease on 124-acres of commercially-zoned land in Scottsdale until May 24.
Arizona State Land Commissioner Mark Winkleman postponed the auction after none of the registered bidders offered for the minimum $68.5 million for the land. Although there were no bids, five developers had registered for the auction, two of which brought certified checks in the amount of $2.8 million, which is the required deposit from the winning bidder for the land that has an appraised value of $68.5 million.
According to Winkleman, although the Land Department was hopeful the land lease would be sold at the auction, he explained that the development process can be complicated and developers sometimes need more time before they will make a purchase.
“Clearly there is great interest in this parcel, as evidenced by the number of registered bidders and by those who brought certified checks with them to the auction,” Winkleman said. “Occasionally, developers need more time, so our staff will continue working with those interested bidders and plan for the sale to take place next month,” he said.
Winkleman explained that last year a similar scenario occurred when two registered bidders attended a land lease auction with neither offering a bid. The auction was postponed and one month later, two new bidders registered and the land lease was sold above the appraised value during that auction.
“There is no doubt that this land will be sold and generate a record-price,” said Winkleman. “Sometimes patience is the needed, but ultimately, the interest is there and the development community knows this is a very prime land parcel,” he said.
Today’s auction was for a 99-year lease on 124-acres of commercially-zoned land located on the southeast corner of Pima Road and Loop 101 in Scottsdale, which when auctioned next month could generate $1 billion in revenue for Arizona Common Schools.
Winkleman stated that last week the Land Department had a record land sale of $149.4 million for 269-acres for residential land in Desert Ridge.
The Arizona State Land Department manages 9.3 million acres of Arizona State Trust Land. The proceeds from the sale of land go to the beneficiaries of the Arizona State Land Trust Permanent Trust Fund, primarily Arizona Common Schools, supporting grades K-12. For more information about the State of Arizona Land Department visit land.az.gov or call (602) 542-4621.