The Howard Hughes Corp. and Jerry Colangelo launched Douglas Ranch, a new large-scale master planned community in Buckeye.
Encompassing nearly 37,000 acres, Douglas Ranch is anticipated to become one of the leading master-planned communities in the country, with 100,000 homes, 300,000 residents and 55 million square feet of commercial development.
“Douglas Ranch and 37,000 acres is a massive project that has an incredible opportunity, a blank canvas to create the next idyllic community at the leading edge of technology and sustainability, and allow us to create a community, from the ground up, that will deliver and meet the needs of the local residents,” said David O’Reilly, chief executive officer of The Howard Hughes Corp.
“It’s really about creating that new urban ideal, where people can live, work, play, pray and discover all in one area.” 1Residential lot sales at Douglas Ranch are scheduled to begin in the first half of 2022. The master-planned community was acquired by Howard Hughes from JDM Partners, led by Colangelo, David Eaton and Mel Shultz, and El Dorado Holdings, led by Mike Ingram; both companies will remain as joint venture partners with HHC on Trillium, the 3,000-acre first village of Douglas Ranch.
“The launch of Douglas Ranch is momentous news for Phoenix and the state of Arizona. We are creating a city of the future — leveraging The Howard Hughes Corporation’s development expertise to build a community with limitless potential to spur growth, business expansion, economic opportunity and innovation,” said Jerry Colangelo, sports executive, businessman, and long-time Phoenix resident whose development company, JDM Partners, is one of the largest owners of entitled land in Arizona said.
“To ensure the success of Douglas Ranch, we specifically sought out The Howard Hughes Corp. for its unique capability to build exceptional communities, implement proven best-in-class practices across new platforms at significant scale, and rapidly deliver on build-to-suit opportunities to help businesses relocate.
“As we prepare to start selling homes, we are excited that Douglas Ranch has been elevated to the ranks of the Howard Hughes communities that are among the most sought-after places to live, work and thrive in the nation.”
Douglas Ranch will focus on sustainable development and technological advancement, which will help serve and drive the substantial growth that is taking place in the Valley.
It has ranked as the country’s top metropolitan area for net migration for the past three years, owing to its strong economy, low unemployment rate, business-friendly environment and educated workforce.
Phoenix has added almost 1 million residents in the last decade and is expected to grow by approximately 100,000 residents annually over the next 10 years.
The city’s West Valley showed outsized growth in new home construction in the region at over 8% per year and captured 57% of all housing demand in Phoenix. The area is positioned for exponential growth as long-term migration of residents and businesses is projected to continue.
David Roderique, Buckeye’s economic development director, said Douglas Ranch in its completion will be larger than the city of Scottsdale.
“This is a very significant project, and it’s going to have a huge amount of amenities, with 100,000 homes, retail, office buildings, hospitals, all kinds of development,” Roderique said.
“It is an extremely significant type of development for us. This really helps to show that the West Valley can absolutely have these types of amenities, and so we’re just thrilled about it.”
With this acquisition, The Howard Hughes Corp. now operates the country’s largest portfolio of large-scale master planned communities, with over 100,000 acres, including Summerlin in Las Vegas, and The Woodlands and Bridgeland in the Greater Houston area, which all consistently rank among the country’s best places to live.
“We have an incredible job and incredible opportunity at Howard Hughes and it’s part of what our employees hold so near and dear to their hearts, in that when we improve our residents lives, when we make our residents lives better, our customers lives better, our tenants lives better by adding great amenities, performing arts centers, walking trails, outdoor parks and areas for recreation, more people want to live in those communities, and the value of their homes go up,” O’Reilly said.
“And that’s when we’re profitable as a public company, and that symbiotic relationship between our residents and master developer is an incredibly rewarding opportunity for us and one that we have such excitement to go out and execute.”
The $600 million acquisition of the 37,000-acre Douglas Ranch is an opportunity to add a fully entitled, “shovel-ready” master-planned community to The Howard Hughes Corp.’s portfolio of award-winning communities — without hindering its already-extensive development pipeline.
With the expectation of over 1,000 lot sales in 2022, Douglas Ranch can replicate the self-funding business model synonymous with Howard Hughes Corp.’s other large-scale master-planned communities.
“The characteristics of this community are vastly similar to HHC’s other MPCs across the country, with a prime location, strong demographics in a thriving job market, high barriers to entry, and limited competition,” O’Reilly said.
“Phoenix ranks as one of the country’s most affordable metropolitan areas, and as it continues its dynamic growth as an extremely well-situated regional hub, Phoenix’s West Valley is the ideal location for people and businesses looking to thrive for generations to come.”
Douglas Ranch is projected to become home to over 300,000 residents .
It is positioned in the pathway of Phoenix’s significant growth in the West Valley and has access to I-10 through the Sun Valley Parkway.
Additionally, Douglas Ranch is located near the future home of the I-11 interstate, which is projected to create $30 billion to $60 billion of economic impact in the region. I-11 will connect Phoenix, Las Vegas and Southern California, and eventually establish a new trade route between Canada and Mexico by way of Idaho, Arizona and Nevada.
“Douglas Ranch will be a catalyst for growth, an economic boon for Arizona, and an ideal strategic fit within our HHC portfolio,” said Jay Cross, president of The Howard Hughes Corp.
“As we shape our cities of tomorrow and deliver the new urban experiences that people and businesses are seeking today, we are designing communities with urban amenities and intelligent infrastructure integrated into expansive open settings, with convenient access to major metropolitan cities.
“This transaction presents an opportunity to implement impactful ESG initiatives to support the community and promote renewable practices.”