Undeveloped Paradise Valley homesite sells for state-record $12.5 million
Nov 19, 2024, 8:24 AM
A 5-acre homesite at 5711 N. Yucca Road in Paradise Valley sold for $12.5 million. (Realtor.com Photo)
(Realtor.com Photo)
PHOENIX – An undeveloped 5-acre piece of land in Paradise Valley sold on Monday for $12.5 million, a record for a single-family residential lot in Arizona, according to the buyer’s agent.
The flat homesite at 5711 N. Yucca Road in Arizona’s wealthiest city offers views of Camelback Mountain and Mummy Mountain.
The buyer, who was identified only as someone who is locally based, paid cash and is expected to build a 50,000-square-foot home.
The seller owned the property, which is in the area of Paradise Valley known as Billionaire’s Row, for less than three years after buying it in March 2022 for $9.4 million.
The land went back on the market in September 2023, when it was listed at $15 million. The asking price was trimmed to just under $14 million in May of this year, and the property was delisted in August. It was then relisted at $13.5 million in September before selling this week for $1 million less.
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“Rarely, if ever, do 5-acre lots come on the market in this neighborhood,” Compass agent Frank DiMaggio, who represented the buyer, said in a press release. “There are people that want to build 20,000-, 30,000- or 40,000-square-foot homes, but the only real limitation is the lot size. There aren’t many lots like this that will ever exist in this area.”
The state record might not last long. A 4.75-acre Paradise Valley lot at 3627 E. Bethany Home Road was recently listed with a $23.2 million asking price.
Why is Paradise Valley land so expensive?
Paradise Valley, an enclave surrounded by Phoenix and Scottsdale, is known for its exorbitant residential real estate market. The median home listing price for the town’s 85253 ZIP code is $4.7 million, according to Realtor.com.
In addition, the town’s zoning laws restrict construction to just 25 percent of a lot’s size, making spacious homesites especially valuable.
In April, a 27-acre Paradise Valley parcel off 54th Street with space for multiple homesites sold for a whopping $42 million.
“With an influx of buyers from California, Seattle and Portland, the Arizona real estate market is reaching an entirely new level of affluence,” DiMaggio said. “It’s becoming more like markets in Beverly Hills, Aspen and Greenwich, Connecticut, with sales numbers looking more like those you once saw only for waterfront properties or high-rise apartments in Manhattan.”
