A 5-acre lot in the elite area of Paradise Valley known as Billionaire’s Row has sold for a record $12.5 million.

It is the largest land deal for a parcel zoned for a single-family home in the town.

Frank DiMaggio, of Scottsdale-based Compass, represented the buyer for the transaction, who did not disclose his or her name, only to say they are locally based.

While the local cash buyer’s construction plans are not yet finalized, DiMaggio expects the single family home that will eventually occupy the property to be more than 50,000 square feet.

The off-market transaction involving the parcel is located at 5711 N. Yucca Road.

The property offers views of Camelback Mountain and sits among the expansive estates and compounds owned by Arizona’s elite.

DiMaggio said the lot is vacant and the record is for a lot planned to have one home and is not meant to be subdivided.

“With an influx of buyers from California, Seattle and Portland, the Arizona real estate market is reaching an entirely new level of affluence,” he said in a news release. “It’s becoming more like markets in Beverly Hills, Aspen and Greenwich, Connecticut, with sales numbers looking more like those you once saw only for waterfront properties or high-rise apartments in Manhattan.”

In Paradise Valley, zoning laws limit construction to 25% of a lot’s total size, so buyers looking to build large-scale homes must find spacious lots to match. With properties of this size rarely hitting the market, DiMaggio said, such opportunities drive competition and prices, mirroring the demand seen in other exclusive real estate markets.

He said the land also has a level landscape, with flat terrain, making it well-suited for construction.

DiMaggio said the property was initially listed at $15 million before it was taken off-market, and then introduced to a cash buyer who was originally looking at a different lot.

“Rarely, if ever, do 5-acre lots come on the market in this neighborhood,” DiMaggio said, noting that the scarcity of such properties drives demand. “There are people that want to build 20,000, 30,000 or 40,000 square-foot homes, but the only real limitation is the lot size. There aren’t many lots like this that will ever exist in this area.”