Nearly a year after Mack Real Estate Group submitted plans for a rare Scottsdale industrial park, the site plan for the project is set to be heard by the city’s development review board.
Dubbed Mack Innovation Park, the New York-based developer looks to bring 1.2 million square feet of industrial and flex office space across 11 buildings east of the Loop 101 freeway near Pima and Bell roads. Mack made its play to acquire the land on which to build its park when it acquired the 124 acres at the site at an Arizona State Land Department auction in March 2022.
On Dec. 7, Scottsdale’s development review board will consider approving of a site plan, landscape plan, building elevations and site improvements for the first phase of the project, which would include four buildings totaling 570,000 square feet. Those buildings would range in size from 97,205 to 184,960 square feet, according to the project plans.
In its project documents submitted to the city of Scottsdale, Mack said the company’s vision is to capitalize on nearby freeway access and existing zoning entitlements while filling a “sorely lacking market.”
The Northeast Valley, the submarket in which Mack Innovation Park would be located, had just 13.85 million rentable square feet of industrial space as of the third quarter of 2023, according to a report from CBRE Group Inc. That amounts to just 3.4% of the total rentable industrial market in the Phoenix metro. While more than 40 million square feet of new industrial is under construction, none of it is taking place in the Northeast Valley, according to the report.
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With Mack developing the park, Butler Design Group has been tasked as the architect. Kimley-Horn is the civil engineer and Withey Morris Baugh PLC is the land-use attorney for the project.
Multiple bidders had sought land in Scottsdale
Several development groups pursued the site at the auction, 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.
Since it acquired the land, Mack and its project team conducted meetings and open houses with neighborhoods in the area. The chief concern from the neighborhoods was the effect it would have on traffic in the area.
The north Scottsdale area along Loop 101 is seeing the development of several new projects that are coming online in the coming years. Those projects include the Optima McDowell Mountain Village luxury community, the 120-acre One Scottsdale mixed-use development and Nationwide Realty Investors’ $1 billion Cavasson mixed-use development. On Dec. 5, ASM International unveiled plans to invest $300 million in a new HQ and R&D facility near the southeast corner of Scottsdale Road and Loop 101.
While based in New York, Mack has been investing in metro Phoenix since 1987, mainly focusing on industrial projects. In Deer Valley, Mack is building out a 3 million-square-foot industrial park six miles from the Taiwan Semiconductor Manufacturing Co. plant. It started construction on the first phase in August 2022, which comprises 917,000 square feet across seven buildings.
Mack also has plans to 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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