News Summary
Mortenson Co., a Minnesota-based commercial developer, has successfully acquired a 217-acre parcel of vacant land in northeast Phoenix for $136 million. The acquisition took place during a public auction organized by the Arizona State Land Department. The land, previously sought by the Arizona Coyotes, is currently zoned for ranch and farm residences but has potential for mixed-use development. Mortenson aims to create a corporate campus amidst the region’s growing development activity while ensuring its plans align with existing zoning regulations.
Phoenix, Arizona — Mortenson Co., a commercial developer based in Minnesota, has acquired a 217-acre parcel of vacant land in northeast Phoenix for $136 million, marking a significant milestone in the region’s real estate development landscape. The winning bid was part of a public auction held on June 20, organized by the Arizona State Land Department.
The auction commenced with a opening bid of $110 million, attracting numerous participants both in-person and remotely. After approximately six minutes of competitive counteroffers, Mortenson outbid rival firm Verde Investments, which had shown interest in repurposing the former Fiesta Mall in Mesa.
Located west of Scottsdale Road and north of Loop 101, the land was previously sought by the Arizona Coyotes, an NHL team that has since relocated to Salt Lake City and rebranded as the Utah Mammoth. This sale is particularly noteworthy as it comes a year after the Coyotes’ former owner, Alex Meruelo, failed in his attempt to secure a new arena location at this site.
The existing zoning on the acquired land does not currently permit the construction of an arena. It is primarily designated for ranch and farm residences. However, portions of the land can accommodate single- and multi-family housing, along with planned community districts and commercial developments. Future developments by Mortenson will need to align with these zoning regulations.
Mortenson’s vice president of Real Estate Development, George Forristall, expressed enthusiasm about the possibilities this new acquisition presents. The company plans to create a mixed-use corporate campus in an area that is currently experiencing considerable development activity. As plans progress, Mortenson has expressed a commitment to enhancing the community and collaborating closely with the City of Phoenix and the State of Arizona.
In addition to this prominent acquisition, other notable land transactions are unfolding across the region. Arizona Land Consulting recently purchased 160 acres in Buckeye for $21.7 million. This site is intended for data center development and could potentially host up to 3.5 million square feet of industrial space, with projected investments reaching up to $4 billion.
Meanwhile, TerraWest Communities has acquired a 210-acre parcel in the West Valley for $10 million, with plans to rezone the property to accommodate up to 1,000 homes. Similarly, Lennar has invested $49 million in land located in Apache Junction, intending to develop 851 homes as part of a larger project.
Under Arizona law, proceeds generated from land sales by the state are mandated to benefit K-12 public schools, universities, and similar educational programs. This provision ensures that the sale of valuable land assets contributes to essential community funding.
The recent auction victory is a testament to Mortenson’s confidence in Phoenix’s real estate market as the region continues to evolve. The company has previously shown interest in other parcels of land in the area, including a bid for 100 additional acres from the northern side of the auctioned site. The ongoing developments and prospective projects signal a robust and dynamic future for the Phoenix metropolitan area.
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