Article originally posted in the AZ Central on Nov. 6, 2026.

Vestar, the Phoenix-based developer of open-air malls and shopping centers, came out victorious after a bidding war for 20 acres in north Phoenix at an Arizona State Land Department auction.

The site, located north of Pinnacle High School, at Black Mountain Parkway and Deer Valley Road, was approved for a grocery-anchored shopping center in late 2024. Vestar led the rezoning and was the applicant for the auction.

Three bidders competed at the auction: Vestar; Castlefin Group, a real estate firm with a presence in Arizona and Taiwan; and A3M Legacy Trust, represented in the auction by longtime Phoenix real estate developer Andrew Cohn. After 35 bids total, Vestar bought the land for $10.35 million.

After the 33^rd bid, the Arizona State Land Department representative leading the auction began to declare the auction over, following three chances for bidders to offer a higher bid. While she was speaking, the representative from Castlefin Group raised her paddle, prompting questions about whether the bid should be allowed. Department officials allowed the bid, but Vestar outbid Castlefin in the next round.

Vestar plans to develop a 120,000-square-foot shopping center called Black Mountain Village. The project will be anchored by a 65,000-square-foot grocery store and will have a mix of restaurants and shops.

Ryan Ash, senior vice president of asset development for Vestar, said it was too early to announce any tenants or brands that will locate at the project, but said the company planned to create a “first-class destination retail” development.

The project will cost about $50 million to develop.

Ash said the development likely would break ground in the fourth quarter of 2027 and take about 20 months to build.

When the project was going through the rezoning process, it drew strong opposition from neighbors, who said the area was better suited for single-family homes. Neighbors said they were concerned about the noise, traffic and litter that could be generated by the drive-through restaurants proposed for the site.

Vestar is the developer of shopping centers around the Valley, including Desert Ridge Marketplace, Tempe Marketplace and Verrado Marketplace. The company plans to begin construction soon on Laveen Towne Center, a 500,000-square-foot shopping center at 59^th Avenue and Dobbins Road.