Land up for auction near TSMC in Phoenix could see $7 billion in development and create 50,000 jobs
A 2,400-acre tract of land north of Phoenix surrounding the campus of Taiwan Semiconductor Manufacturing Co. could see new development worth $7 billion after being purchased by a New York-based real estate group in an Arizona Department of State Lands auction.
Mack Real Estate Group, a developer that has several major projects in the valley, including some of the designated “supplier sites” for TSMC in the Deer Valley area, purchased the land for $56.28 million on Wednesday. Mack, who had requested to start the auction, was the only bidder and purchased the land at the lowest price.
Craig Henig, Mack’s chief executive, made the offer. He was greeted with hugs and congratulations after Mack won the auction, including from his son, who came to surprise him at the auction.
While Mack was the only bidder, two other companies qualified to bid in the auction: Phoenix-based ViaWest Group and Conley Wolfswinkel’s W Holdings.
28 million square feet of buildings planned in the new “Silicon City”
Mack plans to partner with McCourt Partners to develop the land, located near Loop 303 and Interstate 17. In total, the development will bring 28 million square feet of new buildings, including industrial buildings, office , retail and apartments.
Richard Mack, CEO of Mack Real Estate Group, called the area “the new silicon city” in a statement regarding the land purchase and plans.
“TSMC’s semiconductor manufacturing campus in Phoenix is a tremendous economic engine of local, national and global significance,” Mack said in a statement.
“TSMC is quite simply one of the most important companies in the world. TSMC produces the chips that enable exponential innovation and the continued development of artificial intelligence,” added Mack. “Together with ASLD and McCourt Partners, we have the privilege of helping to build a new type of city that times supports and leverages the domestic and international digital transformation enabled by TSMC’s new semiconductor manufacturing campus.
The partnership between Mack and McCourt will control future sales of the land within the larger site, which will occur in stages over the years, the companies said. The partnership will also develop 600 acres of the site for multiple uses.
“A transformational project of this magnitude is an opportunity to not only contribute to, but actively drive, the growth of a city,” Jordan Lang, president of McCourt Partners, said in a statement. “Our passion for construction has always been forward-looking, and we are excited to partner with MREG to establish critical infrastructure adjacent to the TSMC campus and help shape a city that fosters innovation with global impact.”
The site allows for manufacturing, industrial, office, apartment and more facilities.
The land was part of a larger zoning deal in 2020, approximately 3,500 acres, that included land that TSMC purchased later that year. The site, now dubbed by the city as “Sonora Oasis Science and Technology Park,” has been divided into different designations, called “technology park” and “mixed-use highway” based on permitted uses.
The “technology park” area, located in the northwest portion of the site, allows for administrative, design, manufacturing and other employment uses.
The portion along I-17 has been zoned “mixed-use highway,” which can allow for employment, regional commercial, office, hospitality, multifamily development and other uses like restaurants .
According to Mack, approximately 8,960 residential units, as well as industrial and manufacturing space, retail and offices, could be built on the massive site.
TSMC purchased approximately 1,100 acres of land that had been included in that zoning deal and is under construction on its $65 billion manufacturing plant at the site.
The area could reach 50,000 jobs
Asked about the area in January, when the land was put up for auction, Phoenix Community and Economic Development Director Chris Mackay said the area could eventually be home to 50,000 jobs.
In 2021, Mack purchased sites in north Phoenix designated as “supplier sites” for TSMC, near Seventh Avenue and Pinnacle Peak Road. The sites, now called Mack Innovation Park, can accommodate approximately 3.5 million square feet of buildings. Mack is also the developer of a large industrial complex in Scottsdale.
Contact the journalist at cvanek@arizonarepublic.com. Follow her on X, formerly Twitter: @CorinaVanek.
This article originally appeared on Arizona Republic: Mack Real Estate Group and McCourt Partners to develop land near TSMC
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