Pulte Homes, owners of the Del Webb brand of homes, recently purchased an unfinished retirement community near Tucson, Arizona from K. Hovnanian Homes (KHOV), for $8 million cash. Four Seasons at Rancho Del Lago in Vail, AZ will be known as Del Webb at Rancho Del Lago, as Pulte Homes takes over ownership. K. Hovnanian, who is the sixth largest builder in the nation, began the project in February 2008.
They planned to build a total of 500 homes priced from the upper $100s. After only completing 35 homes, construction by KHOV halted due to the real estate downturn in Tucson and around the nation. KHOV had already completed all community amenities including a 14,000 square foot clubhouse that contains two swimming pools, a fitness center, hobby and craft studios, ballroom, and tennis courts.
Overview of Community
The community is located in a beautiful natural setting adjacent to the 18-hole Rancho Del Lago Golf Course. Located 30 miles southeast of Tucson and close to the I-10 corridor, this gated, age-restricted community has a full-time activities coordinator promoting resident involvement in the numerous sports and activities clubs and classes, such as gardening, poker, cooking, travel, and yoga.
Sports enthusiasts enjoy the 18-hole putting green, walking and biking on miles of trails, and tennis, pickleball, and bocce ball on numerous sports courts. The homes, designed with at least two bedrooms, two baths and a two-car garage, are being built with energy saving options and other desirable finishes.
Pulte plans to price the homes from the mid $100s, and is excited to once again offer its Del Webb brand of active adult communities to the Tucson area. This purchase likely guarantees the future of the Rancho Del Lago community and creates a more secure investment for current residents. Del Webb will continue to build the existing 12 KHOV model homes but will eventually switch to models exclusive to Del Webb.
Steve Long, an active adult real estate specialist with Long Realty who is the Tucson representative of 55places.com noted, “This is fantastic for Tucson. The Del Webb brand of active retirement communities is well known in Tucson. Del Webb has been looking for a new retirement community, and this one is beautiful, especially given its prime location next to the public Del Lago Golf Club."
The real estate market in Tucson has been significantly impacted by the recent economic slowdown. Many foreclosures have flooded the Tucson marketplace and sales of homes have stalled. Financing for builders is much tighter, as banks have drawn away from risky loans in speculative markets. This has created a shopping opportunity for builders with available funds to purchase at this juncture, and Del Webb has taken advantage with their purchase of Rancho Del Lago. It allows Del Webb to reenter a major retirement market where their presence is currently lacking.
Active Adult Communities Nearby
Del Webb has had several other active adult communities in the Tucson area including Sun City Oro Valley, Continental Ranch Sunflower and Sonora at Rancho Sahuarita. Since Del Webb completed Sonora at Rancho Sahuarita in 2008, they have not been actively selling in the Tucson market. Del Webb’s absence in the Tucson market was likely sorely missed by the company, which is the largest builder of active adult communities in the country, especially considering that Tucson has ranked at the top of many independent reviews for being a great retirement destination.
Forbes Magazine just ranked Pima County, which includes Tucson, as the third “Best Places to Grow Old,” and the AARP recently ranked Tucson as the “Best Place to Live Simply.” The recent acquisition of Rancho Del Lago further solidifies that Del Webb will have an active presence in the Tucson market for several more years.