Halo Vista’s first industrial project will target TSMC suppliers
Image: Phoenix Business Journal
Plans for the first wave of industrial buildings within the 2,400-acre Halo Vista development surrounding TSMC’s north Phoenix campus are working through city channels, enhancing the reputation of that part of the Valley as a mega industrial hub.
Developers aim to construct a high-end industrial tech park with eight buildings amounting to nearly 800,000 square feet total, according to documents obtained by the Business Journal.
“Modern business parks and warehouse facilities host more sophisticated corporate users, and this project is no exception,” California-based design firm Ware Malcomb wrote in a project narrative document. “It is anticipated that the TSMC suppliers who are located at our park will increasingly combine executive office, design and engineering, along with production manufacturing and warehousing,” the document reads.
The roughly 55-acre project site is at the northwest corner of Dove Valley Road and 43rd Avenue, within the planned Forge Innovation district at Halo Vista. The developers of Halo Vista, Mack Real Estate Group and McCourt Partners, did not provide comment on the new industrial project.
The development team in March broke ground on the first building – a new Costco store — within Halo Vista. Costco is located off Interstate 17 and Dove Valley Road, within a planned retail district where two Marriott Hotels are also underway.
The Shops at Halo Vista, an 11-acre mixed-use retail and hospitality project adjacent to Costco, is also getting built out. Phoenix-based Common Bond Development Group, the firm behind the Global Ambassador Hotel and other notable Valley projects, is now looking for tenants to move in there.
A mixed-use industrial vision
Halo Vista’s retail component will be far smaller than the industrial campus, with industrial space expected to make up about 60% of the 2,400-acre development across several technology and innovation districts. But planning documents suggest some districts will combine industrial with other uses.
“The emerging focus on integrated logistics supply chains and seamless customer experiences are resulting in overlap of retail, office and industrial uses; previously distinctive and separate uses are now more often combined and integrated,” according to the Halo Vista project narrative filed with the city on June 12.
The narrative describes a phased construction approach for “the first industrial project within Halo Vista.” The first phase will include three buildings totaling 252,720 square feet: a 159,120-square-foot building, along with a 49,920-square-foot building and a 43,680-square-foot building, according to the site plan.
A second phase would include three buildings totaling 161,280 square feet, while a third phase would feature the two largest buildings contemplated in the project: a 203,320-square-foot building and an 180,700-square-foot building.
“We seek support from the city of Phoenix in creating a phasing plan that maintains flexibility based on TSMC supplier’s needs,” according to the the project narrative.
All of the buildings will be constructed “as warm dark shells,” according to project documents, with actual uses to be noted during the tenant improvement process “once a tenant has been identified.”
“The design character of the proposed buildings are critical to the success of the project, and the development team will take great effort to deliver an elevated, sophisticated design above and beyond the typical, bland industrial box typology,” the narrative states.
North Phoenix industrial activity
Industrial activity in the north Phoenix area near TSMC’s campus has exploded in the past year, particularly in areas like Deer Valley. Now, more industrial development is moving closer to TSMC.
Further west along the Loop 303, Amkor is building a $7 billion chip packaging and testing facility to serve TSMC. Amkor’s campus is within another planned industrial hub – the Peoria Innovation Core.
The PIC, which spans over 7,300 acres, landed its first project other than Amkor in March with Opus Development Company LLC. Opus is planning to build a speculative industrial facility no less than 150,000 square feet on a roughly 12-acre site it acquired from the city directly north of Amkor’s campus.