DR Horton cast the winning bid in a state land auction to purchase the first 2,800 chunk of the Superstition Vistas tract just east of the Eastmark area of Southeast Mesa. The planned Superstition Vistas area is larger than Mesa, Tempe, Gilbert, and most of Chandler combined.
The first parcel is 2,783 acres and borders Meridian road with its northwest corner at Elliot and Meridian and bottom end at Ray Road. The parcel straddles Ironwood.
Sales of state land benefits public schools. The auction had strict qualifications, and only four bidders met the qualifications: Blandford Homes, Stone Hill Land Partners, Shea Homes, and DR Horton. Bidders needed $40m in unrestricted cash and a net worth of $400m. Other requirements revolved around their master-planning track record.
The developer is responsible to prepare sewer and water connections for the future sale of an additional 5,000 acres of state land in Superstition Vistas. Apache Junction will annex some of the parcels and provide utilities to those areas. Apache Junction hopes to expand its offerings of master planned subdivisions within some of Superstition Vistas.
DR Horton has to put 10% down within 30 days of the auction, about $24.5%, and the Land Department will finance 90% of the purchase price with a 25 year term. No payments will be required in the first 8 years. The state will also get 50% of profits made when land is sold to developers later on, in addition to the loan payments. Part of the auction stipulation was that the winner must complete the build-out within 25 years, or 2045.