Howard Hughes Buys Land to Build 100,000 Homes in Phoenix

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Howard Hughes Buys Land to Build 100,000 Homes in Phoenix
Howard Hughes Buys Land to Build 100,000 Homes in Phoenix

From left: David O’Reilly, CEO, The Howard Hughes Corporation and Jerry Colangelo, partner at JDM Partners, discuss the economics of Scale. Howard Hughes Corporation announced Tuesday that it had purchased the huge, proposed master parish Jerry Colangelo is planning for nearly 37,000 acres in Phoenix. The acquisition of the Douglas Ranch project in the West Valley neighborhood adds to Howard Hughes’ list of master plan communities. This will have 100,000 apartments, 300,000 residents and 55 million square feet of commercial space. Howard Hughes acquired the “shovel-ready” land from Colangelo’s JDM Partners and Mike Ingrams El Dorado Holdings for $ 600 million. Both developers will remain with Howard Hughes as joint venture partner in the parish’s first village, Trillium, which will comprise 3,000 acres. An SEC filing shows that JDM and El Dorado have the option to reclaim 50 percent of the masters community – outside of Trillium – for $ 271 million as long as they do so over the next six months. “We’re building a city of the future – by leveraging the development skills of Howard Hughes Corporation to build a community with limitless potential to fuel growth, business expansion, economic opportunity and innovation,” said Colangelo, former Phoenix Suns board member and member of basketball -Hall of fame, according to a press release. Phoenix has been one of the hottest housing markets in the country, and sales of Douglas Ranch’s residential lots are expected to begin in the first half of 2022. The developer expects to sell at least 1,000 lots in the first year. Howard Hughes is the largest master plan community operator in the United States. The portfolio includes properties in Las Vegas and Houston. Phoenix is ​​booming and has led the country’s most important metropolitan areas in terms of net migration for the past three years. The average home price in Phoenix reached $ 399,900 in June, up 31.1 percent year over year. The city is also among the best in the country when it comes to risk-adjusted returns on home investments. Howard Hughes is running a much smaller but significant project in Lower Manhattan in a longstanding parking lot at 250 Water Street. The company’s proposal for a 25-story tower with 270 units, including 190 at market price, is expected to be approved by the town planning commission on Wednesday. Contact Walter Warner Holden

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