Mack Real Estate Group proposes 1.2M-square-foot Scottsdale industrial-office park – The Business Journals

Nearly a year after acquiring a large — and expensive — site in north Scottsdale, Mack Real Estate Group filed plans to get city approval for its new development.
The developer submitted an application earlier this month for the first phase of Mack Innovation Park on the northeast corner of the Loop 101 freeway and Bell Road. The first phase will include five buildings that range between 45,375 square feet and 129,395 square feet, totaling nearly 494,000 square feet. The site plan shows four buildings for another 572,000 square feet for a second phase.
In total, the park could bring on 1.2 million square feet across 11 buildings when fully built out across industrial and flex office space. A timeline for when construction is expected to start and complete was not immediately known on Tuesday.
Mack will be the developer of the park while Butler Design Group has been tasked as the architect. Kimley-Horn will be the civil engineer and Withey Morris is the land-use attorney for the project.
“We’re pleased to bring forth our plans for the development of the 124-acre site in Scottsdale and satisfy the unmet demand for larger industrial and flex office spaces in the north Scottsdale submarket. We also believe in being good corporate stewards and will continue to meet with members of the community and be responsive to their requests as we move forward,” said Richard Mack, CEO of Mack Real Estate Group, in an emailed statement to the Phoenix Business Journal. “We have boots on the ground and our fingers on the pulse of this exciting market, and we continue to work with our neighbors in Scottsdale to explore their suggestions for our current project.”
The northeast Valley, the submarket in which Mack Innovation Park is set to be located, has the smallest industrial inventory and fewest amount of square feet under construction of all submarkets in the Phoenix metro in the fourth quarter of 2022. The area had 14.2 million square feet of inventory across 505 industrial buildings and had just over 160,000 square feet under construction as of Q4 2022, according to a market report from Cushman & Wakefield.
The project will be heard by Scottsdale’s Development Review Board at a date to be determined.
Mack won the 124-acre site in March 2022 at an Arizona State Land Department auction, bidding $125 million.
Several development groups also pursued the site, which had an opening bid of $58.58 million. Mack beat out other bidders such as Baker Development Group, Verde Investments Inc., FCP Fund V REIT Investor LLC and 101 & Bell Development Partners LLC, according to previous reporting.
While based in New York, Mack has been investing in metro Phoenix since 1987, mainly focusing on industrial projects until venturing into rental units this year. In August, Mack started construction on the first seven buildings of a 3 million-square-foot industrial park in Deer Valley, six miles from Taiwan Semiconductor Manufacturing Co.’s campus. The first phase of the park will comprise 917,000 square feet of speculative warehouse space and is expected to be delivered this year.
Mack also will invest about $250 million to build three single-family rental home communities across the Valley. The company plans to build 735 rental units near TSMC in north Phoenix across two communities.
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