Friday, January 22, 2021 / by Juan Grimaldo
Newport Beach, California-based Landsea Homes (Nasdaq: LSEA) has paid $35.52 million for land in Mesa and Goodyear, with plans to build more than 1,000 homes.
The homebuilder has been on a fast growth track in metro Phoenix since making its Arizona debut in 2018, quickly acquiring Mesa-based Pinnacle West Homes in June 2019 and buying Phoenix-based Garrett Walker Homes in January 2020.
Those two acquisitions of local homebuilders set up Landsea Homes to do well in the Phoenix market, said Jim Daniel, president of RL Brown Housing Reports.
"It provided a presence in popular master-planned communities and a large stake on the west side of our market," he said.
Landsea Homes is the seventh largest homebuilder in metro Phoenix, based on home closings in 2020, according to RL Brown research.
Greg Balen, president of the Arizona division of Landsea Homes, said the homebuilder closed on more than 1,100 homes in 2020, up from 133 closings in 2019.
New plans call for building 844 homes in Goodyear and another 223 homes at Eastmark master-planned community in Mesa.
According to Vizzda LLC real estate database, Landsea paid $19.1 million to BET Investments for 209.45 acres north of the northeast corner of Buckeye Road and Cotton Lane in Goodyear.
Vizzda also shows that Landsea paid $16.44 million for 223 finished lots at the southeast corner of Ellsworth and Warner roads to Brookfield Residential Properties and DMB Associates Inc, which are jointly developing Eastmark.
Nate Nathan, founder of Nathan & Associates and the broker who represented Landsea on both of those deals, said Eastmark has become the hub of the southeast Valley.
"It is one of the top-selling master plans in the United States," Nathan said. "It is surrounded by freeways, Phoenix-Mesa Gateway Airport, and employment is exploding all around the 202 freeway, 101 freeway and the new 24 freeway, which is currently fully graded all the way to Ironwood."
Nathan also brokered additional lot sales at Eastmark on the same day Landsea closed on its lots, on Jan. 8, according to Vizzda.
Capital West Homes paid $4.95 million to Brookfield and DMB for 45 finished lots, while Woodside Homes paid $15.49 million for 140 finished lots in the same area as the Landsea Home transaction, according to Vizzda.
Eastmark also has Taylor Morrison Home Corp. (NYSE: TMHC)and David Weekley in that area, said Eric Tune, vice president of land development for Brookfield Residential Arizona, who oversees Eastmark's next phase developments.
Those lot purchases are part of DU3/4N phases one through five, which has 1,277 lots, Tune said.
"Lot sales continue to be very strong at Eastmark, as we can't seem to keep up with the market demand," Tune said. "At this time, we are not sure how many more lots we will ultimately have to sell at Eastmark, but estimate it to be somewhere between 500 and 2,000, depending on how the community continues to develop north of Warner Road in upcoming phases."
Balen said Landsea has had good luck with other home sales within Eastmark, as the homebuilder ventures out into the East Valley. Most of its homebuilding activity has been focused on the West Valley.
With models expected to be ready in mid-2022, homes will range from 1,500 to 2,350 square feet, as average home prices are expected to start in the low $300,000s.
On the other side of town in Goodyear, plans call for building 844 homes within a community called El Cidro, with models ready in the first half of 2022, Balen said.
He expects homes to range from 1,315 to 3,240 square feet at El Cidro, and home prices to average in the low $300,000s.
"We're trying to be thoughtful by doing some of these smaller, smarter homes with more density," Balen said. "They are still single-family detached but not on a large lot. We think we can offer attainable pricing through density."