While it is definitely no secret that Arizona real estate is undergoing huge transformations, the potential for real estate in the West Valley just got even more exciting thanks to huge news from Bill Gates’ Belmont Partners. In what we might call “The Real Estate Investment Heard ‘Round the World,” (you’re right, we won’t call it that), the firm spent $80 million to purchase 25,000 acres of land and build a Smart City in Tonopah (about a 45 minute drive west from downtown Phoenix). “So what, rich people buy land all the time …” Oh yeah, did we mention that they are also building a SMART CITY? Not sure what that means? Read on. We will cover what you need to know about the smart city in Tonopah AZ and what it will mean for the area real estate market.
Bill Gates’ Belmont Partners to Build Smart City in Tonopah
The smart city, which will be known as Belmont, has huge potential, due in part to the fact that the tract of land purchased by Bill Gates’ investment firm is outside of all cities’ jurisdictions. According to the Belmont Partners press release KPNX got their hands on:
“Belmont will create a forward-thinking community with a communication and infrastructure spine that embraces cutting-edge technology, designed around high-speed digital networks, data centers, new manufacturing technologies and distribution models, autonomous vehicles and autonomous logistics hubs.”
Based on what we know so far, Belmont Partners is estimating that they will build 80,000 homes in the new smart city, with nearly 4,000 acres to be dedicated to industrial, office and retail space, around 3,400 acres of open space and 470 acres for public schools. If these ratios hold true through construction, it seems the new smart city in Tonopah will have huge appeal to young families with a healthy mix of employment opportunities, parks and recreation as well as what will probably be the coolest schools in America. Furthermore, the tract of land is in close proximity to White Tank Mountain Regional Park, which will ensure that outdoor enthusiasts will be equally excited to live in an ultramodern smart city.
The Potential Impact of the New Smart City on West Valley Real Estate
Right now the area is largely empty, save for some pretty mountain views and wildlife. But look for that to change even sooner than anticipated. West Valley real estate has been a good investment for some time thanks to easy access to freeways and the availability of larger, newer houses. But homes in those areas will be in even more demand as development of the smart city begins and especially once it is complete. And with all of those high-paying tech jobs it will bring to the West Valley, look for the market demand for higher-end homes in the area to take an especially pronounced rise. With the freeways in the West Valley giving easy access from southern California, we predict that we will see many a moving van on those freeways in the future. And even if you don’t end up being one of the estimated 180,000 people who will live in the smart city, look for ripples in the Phoenix-area real estate market — especially in communities like Buckeye and Goodyear. Look for people buying homes in the new developments like Verrado to cash in big once services at the new smart city get up and running, meaning that people will presumably have to commute in for work (though whether or not it will be by flying car is unclear).
Overall, smart cities are a relatively new phenomenon. It was practically all anyone could talk about at CES (a trade show attended by brands like AT&T and Facebook). And companies like Cisco and Huawei are trying to figure out how to get in on the smart city game too. While it seems that there is still some disagreement about what exactly constitutes a smart city, the potential for the one in Arizona is especially exciting because of the blank slate they have to work with. Other cities, like Columbus, Ohio, are being sort of retrofitted as smart cities — thanks in part to investments from another Microsoft millionaire, Paul Allen, no less.
But, with Bill Gates in the mix, Arizona’s smart city is sure to be a winner. And if you happen to own West Valley real estate, you will probably be a winner too. While the actual fruition of Belmont Partners’ vision for the smart city is still probably years away, now is the time to buy property low. If you do not own West Valley real estate, or you want to buy more in light of all of the crazy smart city news, call us today. Whether you are envisioning buying land or a home that you can live in until it is time to cash in on your investment, our agents will help find the right property for you and your family.