Toll Brothers Bets Big on Cavasson in Scottsdale

  • Transaction Details:
    • Toll Brothers Inc. purchased an 11.27-acre parcel in North Scottsdale for $28 million ($2.5M per acre).
    • The land is part of Nationwide Realty Investors’ Cavasson mixed-use development at Miller Road and Cavasson Boulevard.
  • Development Plans:
    • Toll Brothers plans to build 135 luxury townhomes called “Toll Brothers at Cavasson.”
    • Construction will begin in fall 2025, with sales starting in late 2026.
    • The three-story townhomes will range from 2,200 to 2,700 sq. ft., featuring rooftop decks.
    • Expected pricing: $1M to $1.2M per unit.
  • Market Context:
    • The project benefits from high demand for luxury “lock-and-leave” units.
    • Nearby luxury projects include:
      • Belgravia Group (Chicago-based) – Sold out a $100M condo development at One Scottsdale.
      • The Statesman Group – Expanding The Luxe at Desert Ridge with 4,000 sq. ft. condos.
      • Optima Inc. – Developing a $1B luxury community in Scottsdale.
  • Shift in Land Use:
    • The parcel was originally planned for a 327-unit senior living community called Espree at Cavasson.
    • Developers Peoria-based Plaza Cos. and Vi Senior Living postponed the project in 2022 due to rising construction costs.
  • Cavasson Development Overview:
    • A 135-acre mixed-use development, which, when completed, will include:
      • 1.8M sq. ft. of office space
      • 1,600 residential units
      • Hotels, retail, and restaurants
    • Notable tenants already in place include Meritage Homes Corp. HQ and Choice Hotels International tech HQ.

Key Takeaways:

  • Toll Brothers is capitalizing on North Scottsdale’s luxury housing demand.
  • The $1M+ townhome market in Scottsdale remains strong, with limited supply.
  • Cavasson continues to grow as a high-end, mixed-use hub with strong commercial and residential demand.