TUCSON, Arizona -- D.R. Horton (NYSE: DHI) Tucson’s largest new home builder by volume in 2016 purchased 145 lots during Q1, or 36% of the 407 total lots that sold in Tucson metro, subject to change with the final week of the quarter still to come.
The home builder posted nationally, new orders for its latest quarter surpassed expectations, the latest indication of the housing market's recovery. New orders nationally increased 14% to 9,241 homes in the three months ended in December, above expectations of analysts surveyed by FactSet who projected 8,717.
The housing market is coming off a strong year. An estimated 1.17 million housing units were started in 2016, nearly 5% more than were started in 2015, making it the strongest year since 2007. Housing starts rose 11.3% in December to a seasonally adjusted annual rate of 1.23 million, the Commerce Department reported last week.
Permits in Tucson metro, a good indication of how much construction is in the pipeline, is also up by 42% year over year in February.
D.R. Horton wrapped up the final 43 lots of 184 total at Sycamore Vista in Vail, Arizona for $795,000 ($18,500 per lot). Previously known as New Tucson, these lots were re-platted and sold by NT Properties. This concludes the Sycamore Vista lot sales.
At Eagle Point Estates, in the western submarket of Tucson, D.R. Horton purchased 8-SFR lots for $318,000 ($39,750 per lot). This was the final takedown of a rolling option agreement for 83-lots at Eagle Point Estates. The seller, Tierra Valencia of Tucson is an affiliate of the Estes Companies (Bill Estes III, manager). D.R. Horton began construction at Eagle Point Estates back in January 2015. Lots are mostly 80'x100'.
In Green Valley, 43 finished lots in Rancho Abrego II were purchased for $1.83 million ($42,500 per lot). Lots are 45' and 50' x 115'. The seller was BBV Investment Limited Partnership LLP of Tucson, Pepper Viner, general partner, that also sold D.R. Horton 15 platted lots and common area at the new Rancho Abrego III for $262,500 ($17,500 per lot). The Rancho Abrego Community is a 55+ community.
Continuing with options at Fianchetto Farms in northern Marana near Gladden Farms' Community, D.R. Horton bought 6 more finished lots for $229,500 ($38,250 per lot) from Fianchetto Farms, LLC. This was the forth takedown of a 49-lot option within this 114-SFR lot subdivision and the second for this quarter. D.R. Horton began construction here last August 2016. Lots are mostly 55' x 110'.
Dan Feig and Aaron Mendenhall of Chapman Lindsey Commercial Real Estate Services represented the parties in all of the above transactions.
For more information, Feig and Mendenhall should be reached at 520.747.4000.
To learn more, see RED Comps #4617, 4630, 4670, 4639 and 4640.