Scottsdale, Paradise Valley and upper-end neighborhoods in Phoenix often take the lion's share of top-dollar deals in Arizona.
For more than 20 years, Sonora West Development has built hundreds of projects in those high-end neighborhoods, totaling about $1 billion in development across Phoenix.
Now, the firm wants to branch outside of those traditional luxury markets to reach more prospective buyers who might not have a Paradise Valley or Scottsdale budget, according to Scott Pfeiffer, founder, chief executive and president of Sonora West.
"Most people are completely priced out of those areas," he said in an interview with Homes.com. "I think just with the price of land in north Scottsdale and the lack of availability, we do have to move someplace anyway."
In one example, Pfeiffer said Sonora West will be building a pair of 20-home communities in the Northwest Valley, which includes cities like Surprise and Peoria.
Homes in the town of Paradise Valley, home to Arizona's largest cluster of luxury estates, carry an average value of more than $4.3 million, compared to a home in the city of Peoria, where the average value is $627,459, according to Homes.com.
"My thought is that we can bring our quality and our design into areas that aren't quite as high-priced as the Scottsdale/Arcadia/Paradise Valley areas. And I want to prove it," Pfeiffer said.
Builder considers infill expansion
Another area that Sonora West is considering is Phoenix's East Valley, which is home to cities such as Mesa and Gilbert.
Pfeiffer said his firm has completed projects in those areas before, albeit on a smaller scale, in the form of a single home or a smaller community.
These projects will still be higher-end, luxury homes, but without the price tag that comes with a new-build home in Scottsdale, Paradise Valley, and other high-end neighborhoods in Phoenix.
Sonora West's strategy for scouting areas to build includes looking for infill spots in urban locations. These spots could be a strip of vacant land or an underutilized commercial building.
"We look for those unique opportunities where we can build a better product," he said.
Sonora West gives updates on ongoing projects
But Sonora West hasn't forgotten about its projects in Scottsdale and Phoenix.
Sonora West is building four homes at its Camelback Palms community, off the busy Camelback Road in Phoenix. The buildout on the two homes closest to Camelback Road is about halfway complete.
The expected price for Camelback Palms residences will range between $6.5 million and around $10 million, and between 5,700 and 8,000 square feet in size, Pfeiffer previously told Homes.com.
Additionally, Sonora West is approximately halfway through selling its 21-home community, Serene, located in north Scottsdale. This community spans a range of over 2,800 to over 3,700 square feet.