A newly built 6,597-square-foot mountainside home in Paradise Valley sold within a day of hitting the market, but it's a deal that has been years in the making.
The seller purchased a home at 5870 E. Indian Bend Road in 2019 for $1.2 million before embarking on a speculative redevelopment that resulted in a new house, a new address and a bigger price tag.
The five-bedroom home at 7010 N. 59th Place just sold for $12.5 million.
Listing agent Joe Reifman of HomeSmart started working with the seller at the start of the redevelopment process, about five years ago.
"I think it was a five-year labor of — mostly — love that resulted in the vision being delivered," Reifman said in an interview with Homes.com.
Scottsdale-based E&S Builders was the builder. Reifman remembers being on the front end of the project, helping obtain building permits.
Because the site was on the hillside, the process to build was first heard by Paradise Valley's Hillside Building Committee, which reviews land disturbance, heights, lighting, building materials and more in an effort to balance desert aesthetic views and environmental protection.
Reifman said the team spent three years in virtual meetings with the building committee during the heart of the COVID-19 pandemic that strung out the process. Once building permits were obtained, it took about two years to build 7010 N. 59th Place before Reifman started showing the home.
Prime land remains in demand
The home is situated on 1.14 acres atop Mummy Mountain in Paradise Valley with views of Camelback Mountain. Other features include a six-car garage and a resort-style backyard with a pool, spa and outdoor kitchen.
"The bells and whistles are all there as well," Reifman said. "There are tons of really intricate design details and little things that'll wow people."
Reifman said the buyer initially looked at the property in March and a deal was in place by the end of June. Reifman worked alongside Joan Levinson of Realty ONE Group, who represented the undisclosed buyer.
"I saw their face when they walked in the first time, and I could tell they were very into those views," Reifman said of the buyer's first visit to the home.
The end result is a recent example of why land is increasingly becoming a more sought-after commodity in Paradise Valley, where a growing cohort of custom buyers is driving up lot costs in the state. Through mid-August, sales volume for dirt lots in Phoenix has outpaced the previous year, with 30 lot deals closing for over $100 million.
Reifman has worked on similar deals that involved the demolition of an older house to make way for a high-end new home. He said the number of homes that fit that criteria is also dwindling.
"In that pocket of Paradise Valley, which is probably the best pocket, you're seeing [dirt lots] in the $4-5 million-plus range for even just a one-acre lot," he said. "I'd be curious what this lot would sell for as just a lot at this point."