Vermaland, a leading Phoenix-based land banking and development company, announced today multiple solar land lease deals that illustrate an interesting trend that is occurring in Arizona.
Earlier this year, Vermaland leased over 2,000 acres of land in Gila Bend, Ariz. to a solar developer. That transaction was followed by a similar lease for 1,600 acres in Hyder, Ariz. and another 900-acre deal in Harquahala Valley, both for solar projects. This is all in addition to another 1,000 acres that Vermaland already had under lease with solar companies.
Kuldip Verma, founder and CEO of Vermaland, said that there are several other additional solar projects in the pipeline expected to close before year-end.
“This increase in solar activity is up significantly from prior years. If all of these leases result in eventual land purchases, which is typical, these transactions could total nearly $40 million in land sales,” said Verma.
Most of the deals are happening in the West Valley, which presents an interesting dynamic between this rush for solar projects and demand for new homes in the area.
“Arizona has one of the hottest real estate markets in the country right now, and with this increased demand from solar companies optioning so many of the limited large parcels we have left, this depletes the land that is left for homebuilders,” Anita Verma-Lallian, director of marketing for Vermaland and founder of Arizona Land Consulting said. “Homebuilders are already behind, struggling to keep up with the demand, specifically in the West Valley. Buckeye, for example, is one submarket that is very active right now and an area where there is a bit of a frenzy already created between solar companies and homebuilders and developers.”
Arizona Land Consulting was formed in June of this year and has assisted with optioning of over 3,000 acres since its inception, with several more deals in the works.
Vermaland has been in the land business as a wholesale buyer and seller for almost 20 years, starting the company in 2001. Vermaland owns thousands of acres of land in Tonopah, adjacent to property owned by Bill Gates, and other properties around the state including Harquahala Valley, Gila Bend, and Hyder which have all been a huge source of power for thousands with many properties containing solar farms containing hundreds of acres of solar panels.
For more information on Vermaland, visit www.vermaland.com or call 602-274-0700.