In its largest land purchase since the July 2007 merger of Taylor Woodrow and Morrison Homes, Taylor Morrison has bought 116 acres of land in Surprise, Ariz. from CPI Surprise Farms, LLC.

The company paid $16.7 million for the five parcels with a total of 419 lots, the company said.

Taylor Morrison, which moved its North American headquarters to Phoenix last summer, is already building its Legacy and Premiere series of homes ranging from $180,000 to the $200,000s in the master planned community of Surprise Farms. The company has 40 communities in 12 Phoenix-area cities. The company's Phoenix division is its largest in North America.

"Taylor Morrison made the investment after thorough market research," Phoenix division president Charlie Enochs told Big Builder. "The Surprise area has one of the most constrained finished lot inventories in metro Phoenix and is a submarket where the company has had success in the past and expects to have similar success in the future."

Taylor Morrison has plans to build four new home communities, each with its own model home center, on the land. Despite the challenged market, it made sense to invest in the company's future land supply," Enochs said. The sale price equals about $40,000 a lot.

"The land was purchased at a very attractive price and it will allow the company to immediately open two new communities at competitive pricing even in today's challenging market conditions," he said.

Learn more about markets featured in this article: Phoenix, AZ.