Ahwatukee's last big parcel to become giant residential community with 1,500 homes

Ahwatukee's last big parcel to become giant residential community with 1,500 homes

By Angela Gonzales

This huge swath of land is the last large parcel for residential development in Ahwatukee. Blandford Homes

Gilbert-based Blandford Homes is beginning development of a new master-planned community in Ahwatukee that will boast 1,050 single-family homes and another 479 rental units.

"It's the very last piece of property in Ahwatukee of any size at all," said Jeff Blandford, founder and president of Blandford Homes.

Infrastructure work has begun on the land along Pecos Road and bounded by the 27th Avenue, Chandler Boulevard and 19th Avenue alignments.

"Grading is about to be underway," Blandford said.

Construction on model homes is expected to begin in late 2025 for the community, which is named Upper Canyon. Of the 1,050 single-family homes to be built in that development, Blandford Homes is building 250 homes, while Atlanta-based PulteGroup Inc. (NYSE: PHM) has another 350 and Arlington, Texas-based D.R. Horton Inc. has the balance, Blandford said.

Blandford's contribution will be a mix of single-story and two-story homes ranging between 1,700 and 4,000 square feet. Prices will start in the high $600,000s to over $1 million, depending on the product.

As for the 479 multifamily units that will be built there, 150 will be build-to-rent units and the remaining will be traditional multifamily units.

"Right now nothing has been presented to the city yet on multifamily," Blandford said.

Builder has been watching the property for years

Blandford has had his eye on that state land parcel since the mid 1990s.

"It is a highly coveted piece of property in Ahwatukee," he said. "There's nothing left out there. The state held this property for a very long time."

Then in 2021, the Arizona State Land Department set the parcel for auction, with a starting bid of $105 million. On June 7, Blandford found himself up against three other bidders.

"To my knowledge, it was the most competitive state land auction — at least in the last 15 years," Blandford said.

The bidders ratcheted up the price with 328 bids as they tried to outdo one another. It ended at $175.5 million, with Blandford as the winner.

The bidding war was even more frenzied than one in 2020 where a 2,783-acre parcel of state land in the East Valley opened at $68 million and within a matter of minutes skyrocketed to $245.5 million. D.R. Horton Inc. was the winning bidder after 118 bids.

Blandford was one of the bidders that lost against D.R. Horton, he said. While Blandford has been buying state land since the early 1990s, he said it's a very stressful process to be the one holding the bidding paddle.

"It turns your stomach," he said. "It's very stressful."

Bandford continues work at Hawes Crossing, Earnhardt land

On June 28, 2023, Blandford Homes was the successful bidder for 115 acres at a state land auction for 114.7 acres in Mesa, northwest of Hawes and Warner roads.

Blandford said his team is working through entitlement approvals with the city for 455 homes within Hawes Crossing master-planned community.

Those homes will range from 1,700 to 3,700 square feet and are expected to be priced in the high $500,000s.

Blandford is also building 100 homes on what was formerly Tex Earnhardt's 38-acre family compound in the middle of Chandler. Earnhardt was the founder and CEO of Earnhardt Auto Centers.

Models are expected to open in mid-September for homes that will range between 2,400 and 4,200 square feet and start in the mid $700,000s.

These home sales come at a time when the 30-year fixed rate mortgage is lingering just under 6.5%, according to Freddie Mac's latest update on Aug. 22.

"We've seen an increase in traffic over the last week because of interest rates coming down," Blandford said. "Traffic is up considerably."

Blandford said he's hopeful the Fed will drop rates in September, which will help further reduce mortgage interest rates.

"The whole trend is downward now," he said. "With the downward trend in interest rates, that tends to pull the mortgage rates down even before the Fed actually announces the actual rate decrease."

Final Thoughts: 

As Ahwatukee welcomes its last significant development with the Upper Canyon community, this marks a rare opportunity for those seeking to establish roots in one of Phoenix's most coveted areas. With 1,500 homes set to rise in this scenic neighborhood, future residents can expect a blend of luxury, modern amenities, and a prime location that offers both tranquility and easy access to urban conveniences. For those moving in from out of state, this is not just a chance to own a home in Arizona; it’s a chance to become part of a vibrant community in a region that continues to grow and thrive. Whether you're looking for a spacious single-family home or a convenient rental, Upper Canyon promises to be a cornerstone of Ahwatukee living.