Mold Remediation in San Tan Valley, AZ

A couple of decades ago, when Arizona's real estate market was collapsing, Nariman Afkhami, CEO of Aread Inc., bought 1,000 acres in the far southeast Valley.

Now, growth is catching up to the master-planned Magma Ranch community he's developing in Florence that will boast 3,150 single-family homes upon completion. More than 1,000 lots have been approved for development and another 1,000 are left to be sold to homebuilders.

Aread's development is part of a wider trend of homebuilders circling the San Tan Valley area. Homebuilders working in the area include Dream Finders, KB Home and Mattamy Homes, which is on track to more than double its Valley footprint.

Most recently buying a big chunk of lots within Aread's development is Arlington, Texas-based D.R. Horton Inc. (NYSE: DHI). This area of Magma Ranch is called Magma Ranch Vistas, which encompasses nearly 600 acres and will include 2,060 homes upon completion.

On Aug. 28, an entity tracing to Aread sold 140 lots at the northeast corner of Cooper and Judd roads in Florence to D.R. Horton for $16.2 million in cash, according to Tempe-based real estate database Vizzda LLC. Three months earlier, on May 15, D.R. Horton paid $18.4 million in cash to Aread for 188 lots in that same area, according to Vizzda.

Scottsdale-based Nathan & Associates Inc.'s Nate Nathan, Ryan Duncan and Dan Baldwin negotiated both of those transactions.

Nate Nathan, president and designated broker for Nathan & Associates, said Aread is delivering a unique amenity package that will help to further elevate what he calls the "New Southeast Valley" and the hottest submarket in the metro Phoenix area.

Aread already has spent more than $10 million to build the community center and pool. The master site plan calls for building 17 pickleball courts and a championship court, Afkhami said. Wide bike paths and walking paths meander throughout the community, leading to multiple parks with cabanas, BBQs and basketball courts.

Alan Jones, president of Lennar's Arizona division, said he's also impressed with the amenities Aread is building at Magma Ranch Vistas. Miami-based Lennar Corp. (NYSE: LEN) is another builder at Magma Ranch Vistas.

"The community amenities, including fitness center, are great and some of the best amenities in the East Valley," Jones said.

Click on the gallery for a look at the amenities Aread is building at Magma Ranch Vistas:

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Magma Ranch Vistas is part of a 1,000-acre master-planned community being developed by Aread Inc. in Florence, Arizona. Expand to read more

Aread Inc

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Even with these rich amenities, the monthly HOA fee is under $100, Afkhami said.

With home prices in the $300,000 range, Afkhami said it was important to offer rich amenities for entry-level buyers.

"When they live there they can be proud of it and have facilities they and their children can use," he said.

The Florence Unified School District has a K-8 school within the original Magma Ranch. The district has indicated that another school may be coming in the future, said Afkhami.

"We don't have a timeline," he said. "Schools are important. Affordability is always a key. We noticed a lot of policemen and public employees of Florence live in Magma."

In 2018, Varde Partners signed on as an institutional partner to help develop the community. That Minnesota-based global alternative investment firm also is working with IHP Capital Partners to jointly develop Northpointe at Vistancia, which will add 3,200 homes to Peoria upon completion.

Also building at Magma Ranch Vistas is Starlight Homes, a division of Georgia-based Ashton Woods.

Vizzda records show Starlight Homes paid $2.82 million for 33 lots, $855,810 for 10 lots and another $855,810 for 11 more lots this summer at Magma Ranch Vistas.