Construction in the Redtail Ridge subdivision in Redmond on Thursday, March 23, 2017. (Ryan Brennecke/Bulletin photo)

A new investor and homebuilder have joined Palmer Homes in building Forked Horn Butte, a Redmond subdivision that’s long been compared to Awbrey Butte in Bend.

Gary Diefenderfer, a Redmond real estate broker and investor, acquired the second phase of the 63-lot subdivision from the Department of State Lands and is working with J.D. Neel, a Bend homebuilder who gravitates toward midcentury modern and contemporary styles.

Vern Palmer, who agreed in 2015 to pay the state $3.33 million in three phases over 18 months for the 36-acre development, said he’s working with the city of of Redmond to replat 20 undeveloped acres into 68 lots. Palmer FH LLC completed its purchase of the third phase in fall 2016 at the same time Diefenderfer’s company, JAFHR Development Inc., purchased the second phase from the state.

The state acquired Forked Horn Butte in a 2009 property exchange. The original developer lost the property to a bank.

Palmer acquired the first phase, which included ready-to-build lots, but sold his option on the second phase. The first two phases are ready to build. Palmer said his company has completed three houses in the first phase and has five more in production.

Palmer named the subdivision Redtail Ridge, and Diefenderfer said he’s not decided whether to keep that name for the second phase.

The property sits on the western slope of the butte with views of the Cascade Range. Developers have planned since before the recession to build homes rivaling Bend’s most upscale subdivisions. That vision will begin taking shape this construction season with home prices at $500,000 and up, Diefenderfer said.

“They’ll probably be the most expensive we have here in Redmond,” he said.

Palmer said covenants setting a height restriction and requiring design review will preserve Forked Horn’s views. “We’re trying to create something that, if you go out there on a sunny day, it just knocks your socks off,” he said.

Working with Neel, Diefenderfer said he hopes to build 12 homes a year on speculation while also doing custom builds as they’re ordered.

Diefenderfer and Neel are optimistic about high-end home sales in Redmond. The first three houses built on speculation in Forked Horn were sold by the time construction crews reached the framing stage, Neel said.

Having grown up in Redmond, Neel said he’s always wanted to build on Forked Horn. “These are the best lots in Redmond,” he said.

Neel said he compares Forked Horn to Awbrey Butte for its views, but he said there won’t be any sprawling, seven-figure homes. Neel will build single-story houses ranging in size from 1,800 square-feet to 2,450 square feet that meet Earth Advantage building standards for energy efficiency.

Diefenderfer said he hopes to draw people who might be looking in Bend but want more space. The lots are around 10,000 square feet with recreational vehicle parking.

“We’re trying to entice the people from Bend to see Redmond does have a future,” he said.

— Reporter: 541-617-7860, kmclaughlin@bendbulletin.com

Editor’s note: This story has been changed to reflect property owner Vern Palmer’s involvement in the development.