Cavco Plans $11M-Plus BTS on 30-Acre Buy

PHOENIX-To provide additional room for its fast-growing growing operations, the locally based Cavco Industries Inc., a producer of manufactured homes in Arizona, has purchased a 30-acre parcel in an all-cash transaction of about $3.3 million from Buzz Oates Enterprise Arizona LLC.

An estimated $11 million to $12 million will go into the build-to-suit to house the headquarters operation of Cavco Specialty, which develops model homes and lofts for Cavco Industries. There is no specific ground-breaking date scheduled for the property, which is located north of the northeast corner of 55th Avenue and Lower Buckeye Road. However, Joseph Stegmayer, Cavco’s president and CEO, tells GlobeSt.com that “we’re going to try to move as fast as we can on this structure and would like to have it completed within the next 14 to 18 months, depending on permitting and other factors needed.”

Stegmayer says an architect and general contractor will be selected within the next few weeks. The design and construction contracts are just now in the bid phase.

Though blueprints have not been finalized on the physical structure, Stegmayer says he’s planning to build a complex with about 120,000 sf of manufacturing and office space. “The main building will be better than 20,000 sf, with wide bays to accommodate large product on an assembly line,” he adds.

Cavco’s purchase also builds in room for expansion. “We have about 10 acres where the current plant is located,” Stegmayer says, “and the idea here was to obtain a larger plot of land to allow for more growth.” The current Cavco Specialty plant, located near the new site, will continue to produce other Cavco products, he adds. Stegmayer notes that, with Cavco’s consistent growth, the company is seeking additional opportunities to purchase property in Phoenix and in other areas.