Houston-based Hines is developing its first Arizona master-planned community in the West Valley.
On July 12, Hines paid $8.88 million to an entity tracing to Tenaska Capital Management for 115.52 acres east of the northeast corner of 163rd Avenue and Jomax Road in Surprise, according to Tempe-based Vizzda LLC.
Chicago-based William Ryan Homes will build 161 homes in the new master-planned community, called Nobella, said Chris Anderson, senior managing director and partner at Hines. The Houston firm plans to build 545 homes in total at the community.
Anderson’s team is already in talks with another homebuilder for a parcel that will include 150 lots.
“I can’t say who it is yet but it’s in the final stages of contract negotiations,” Anderson said.
This vicinity map shows where the new master-planned community will be developed.
Nate Nathan, Dave Mullard and Casey Christensen of Scottsdale-based Nathan & Associates Inc. are representing Hines on those lot transactions.
With construction slated to begin in the third quarter of 2024, homes will be available for sale within 18 months and priced in the upper $400,000s, he said.
The community will include open spaces, gathering areas, a dog park, playgrounds, and an extensive trail system. The remainder of the land is being reserved for a build-to-rent community for 230 units, Anderson said.
About two-thirds of the homes will be for-sale homes while one-third is planned for rental units, he said.
Project marks Hines’ first build-to-rent units in Arizona
Not only does Nobella represent Hines’ first master-planned community in Arizona, but also its first build-to-rent product. Anderson said it’s too soon to determine if Hines will build the BTR portion or will sell that parcel to another developer to build a rental community.
Hines has developed master-planned communities including build-to-rent products in other states, including Colorado, Texas, Virginia and Florida, Anderson said.
“We’re hoping to really expand this product type here in the Valley for us,” Anderson said.
This 115-acre parcel will become HInes’ new master-planned community in Surprise.
Anderson said his goal is to offer a mix of attached and detached rental units within Nobella.
While the BTR concept originally was envisioned by Arizona pioneers as a community of detached single-family rental homes with resort-like amenities, other developers have built these rental communities with attached units, including townhomes.
“We’ll take the best products and incorporate those and do our Hines Plus One,” Anderson said. “That means we’ll do something special, either energy efficiency, amenities, or walking trails.”
Hines has built about 1,000 apartment units in metro Phoenix since 2019, Anderson said.
“Hopefully, we’ll have some more coming,” he said. “We’re going through final design on another one now in Peoria within the Trailhead master plan.”
Founded in 1957, Hines has about $144.1 billion of assets under management. The firm has 165 global developments underway.
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