Arizona may have issues with accessibility to water, but it’s still a hot spot for developers.
To wit: Rockefeller Group paid $8.7 million for two sites totalling 16.5 acres in South Phoenix to develop 152 build-to-rent townhomes, AzBigMedia reported.
Construction is expected to begin this summer, with occupancies starting in early 2025, the outlet reported.
The properties are about 2 miles away from each other.
The first site, at 8181 South 20th Street, is 9.2 acres and sold for nearly $5 million. The seller was The Bruckal Group. The second site, at 825 East Euclid Avenue, is 7.3 acres and sold for $3.8 million. The seller was Proximity Rental Homes.
The two- and three-bedroom townhomes will range from 1,100 square feet to 1,525 square feet. Amenities for each property will include a pool, dog park and hot tub.
But Rockefeller may be approaching the plans with rose-colored glasses.
The purchase comes on the heels of the state’s announcement that it lacks sufficient groundwater to support the already approved housing construction in the Phoenix area.
State officials have decided to halt the building of new subdivisions, potentially bringing an end to the rapid development that has propelled Phoenix to become the fastest-growing metropolitan region in the United States, the New York Times reported.
The scramble to secure water rights is expected to disrupt Arizona’s real estate market, driving up home prices and jeopardizing the region’s historically affordable housing.
Governor Katie Hobbs, a Democrat, assured the public that the state is not on the brink of running dry and emphasized that new construction will continue in major cities like Phoenix.
However, the analysis conducted by the state, which projected groundwater levels over the next century, prompted the decision to restrict future housing developments that rely on wells for water.
Maricopa County, which includes Phoenix and its suburbs, relies on groundwater for over half of its water supply, with the remainder sourced from rivers, aqueducts, and recycled wastewater.
— Ted Glanzer