Dive Brief:

• New York City-based developer Mack Real Estate Group and Los Angeles-based investor McCourt Partners have unveiled plans for a $7 billion, 28 million-square-foot mixed-use development, expected to include up to 8,960 multifamily units, in Phoenix’s North Valley.
• Known as Halo Vista according to the Phoenix Business Journal, the 2,300-acre development site is directly adjacent to the Taiwan Semiconductor Manufacturing Co.’s Arizona semiconductor fabrication complex. 
• The Taiwanese company has two factories under construction there, with production expected to start at the first plant next year.

Dive Insight:

In May, Biscuit Flats Dev LLC, an affiliate of Mack Real Estate Group, won the development rights for the land at auction from the Arizona State Land Department for $56.28 million. Under an agreement with the ASLD, Mack and McCourt have the right to directly develop approximately 600 acres of the site across multiple uses, to control land sales to other developers for the remaining portion and to oversee infrastructure improvements across the whole.

McCourt and Mack worked for years with the ASLD to master-plan the 3,500-square-foot parcel that could include up to six semiconductor plants in the future, according to the Phoenix Business Journal. Mack estimates that the TSMC plants and associated business ecosystem could create up to 80,000 jobs in the Phoenix area. 

Mack has an existing portfolio of more than 9,100 multifamily units nationwide. The company declined to disclose which portion of the planned 8,960 units at Halo Vista will be developed by Mack and which will be on parcels sold to other companies. No other details on the residential developments have been released.

A number of housing developers have been opening new projects in Phoenix with TSMC’s operations in mind. In April 2023, the Empire Group of Cos. broke ground on a 297-unit build-to-rent property in Peoria, Arizona, with an eye toward housing the company’s employees. Toll Brothers Multifamily Living also broke ground on two properties later that year, one of them within a short drive of the campus. 

TSMC has begun limited initial manufacturing operations at its first plant, according to AZ Central. The second plant is expected to open in 2028, and plans for a third plant were announced in April, according to Construction Dive.