312 Million for This? By Mish

Toll Brothers, Meritage Homes and Simon Property Group Joint Venture announce the purchase of a 5,485-acre land parcel in Phoenix's Northwest Valley for $312 Million.It is the largest real estate transaction in Arizona history.

The Maricopa County property, which DaimlerChrysler currently utilizes as a vehicle endurance testing and development facility, is bound by 183rd Avenue on the east, 211th Avenue on the west, Dove Valley on the south and Joy Ranch Road on the north. DaimlerChrysler will continue to lease the property for the next few years, in order to plan and accommodate for the orderly transition of its testing operations.Toll Brothers and Meritage Homes each plan to build a significant number of homes on the site. Simon Property Group, Inc. has the option to purchase a substantial portion of the commercial property. Other parcels may be sold to third parties. Initial plans call for a mixed-use master planned community, which will include approximately 4,840 acres of single-family homes and attached homes. Approximately 645 acres of commercial and retail development will include schools, community amenities and open space. Initial homes sales are tentatively scheduled to begin in 2009. According to the approved General Plan, the site allows between 15,000 to 31,000 homes.Robert I. Toll, chairman and chief executive officer of Toll Brothers, Inc., stated: "We are thrilled to have been chosen by DaimlerChrysler and to have teamed up with two excellent partners to develop this fabulous piece of real estate. The northwest area of Phoenix has experienced unprecedented popularity and this particular parcel is a highly coveted site."$312 million for 5,485 acres of desert with a testing track on it. That amounts to $56,882 dollars per acre of flat desert.Enquiring Mish bloggers might be wondering exactly where "Phoenix's Magnificent Northwest Valley" is. Thru the wonder of Google satellite imagery I am pleased to show everyone the following pictures of just what that consortium of buyers got for their $312 million.Here is this "highly coveted site"......

to be continued at: http://globaleconomicanalysis.blogspot.com/2006/01/312-million-for-this.html