The seller, Geupal Family Trust, owned the land at least 20 years, says James Bayless, a senior associate in Phoenix for CB Richard Ellis Inc. The acreage, once used for manufacturing concrete, has been rezoned to A-1.
Bayless tells GlobeSt.com that only 78 acres are developable. The land, situated at the southeast corner of 7th Street and Deer Valley Road, will be divided into 54 tracts of one to three acres for resale at $10 per sf to $13 per sf.
"This deal was very difficult because of seller requirements and concerns about the land," says Bayless, who teamed with CBRE's Ashley Brooks and John Werstler to broker the acquisition for Spiekerman and Alere Group. Tim Thompson of West USA Realty represented the seller.
Bayless says the seller required prospective buyers to put down $50,000 of hard money. "We brought the deal to a lot of large developers, but they weren't interested because it was kind of risky because of the hard money," Bayless says, "and also because we weren't sure how much of the land was developable and how much environmental work it needed." He says the rezoning and site plan were worked out during the escrow period.
Bayless says there is a lot of demand for A-1 zoned land in the area. "The Deer Valley submarket is one of the hottest areas in town," he says, "and it's dominated by owners/users that are being pushed out of the Scottsdale Airpark and are heading west. There are a lot of small business owners like pool companies and tile companies that are being priced out of the airpark."
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