Dec 13, 2022


Articles & Insights

ICM Asset Management partners with Mack Real Estate Group (MREG) on a 1.3 million square foot warehouse park in Phoenix, Arizona

Mack Innovation Park – Phoenix, Arizona

(Phoenix, AZ)ICM Asset Management is pleased to announce its joint venture partnership with New York-based Mack Real Estate Group (MREG) to develop Mack Innovation Park Deer Valley in Phoenix, Arizona. The first phase of the master-planned industrial park is already under development and will include more than 917,000 square feet of warehouse space, the second phase, with an additional 409,839 square feet, will start construction in 2023.

Less than five miles away, the Taiwanese Semiconductor Manufacturing Company (TSMC) is developing their new $12 billion computer chip plant. TSMC says it will more than triple its investment to $40 billion, following an announcement by Apple that the U.S.-based plant would manufacture significantly more chips for its iPhone’s, as a means to nearshore this critical component of its supply chain from Asia.

“Today is only the beginning,” CEO Tim Cook said. “Today we’re combining TSMC’s expertise with the unrivalled ingenuity of American workers. We are investing in a stronger, brighter future, we are planting our seed in the Arizona desert. And at Apple, we are proud to help nurture its growth.”

The announcement came as President Joe Biden and the Taiwan-based firm’s boss opened the factory in Arizona. The investment by TSMC in north Phoenix represents a structural change to the demand profile for industrial property in the area.

“We are pleased to be doing our second investment with Mack Real Estate Group, a world-class developer and operator who has had a presence in the Phoenix market for over 30 years,” said Scott Myers, ICM’s Managing Director. “The Deer Valley submarket has a vacancy rate of under 2% additionally, and Mack Innovation Park benefits from close proximity to the new TSMC semiconductor plant. Mack Innovation Park will be the best-in-class industrial development in the submarket, providing space for companies serving TSMC as well as accommodating pent-up demand from local manufacturing and logistics companies.”

Mack Innovation Park will be the best-in-class industrial development in the submarket.
— ICM’s Managing Director: Scott Myers

Part of Phoenix’s 15-village system, Deer Valley has always had an industrial footprint, thanks in part to the presence of the Phoenix Deer Valley Airport. The first phase of the master-planned industrial park includes more than 917,000 square feet of warehouse space across two locations: three buildings at 19th Avenue and Alameda Road (Site A) and a four-building complex at North Central Avenue and Pinnacle Peak Road (Site C). These first seven buildings range in size from approximately 63,000 square feet to 208,000 square feet and can accommodate tenants needing as little as 4,800 square feet. A second phase with an additional 409,839 square feet of industrial space at 7th Avenue and Pinnacle Peak Road (Site B) is planned to start construction in 2023.

Our Partner: Mack Real Estate Group (MREG) is a vertically integrated, institutional real estate developer, operator, investor and lender with roots in a family business dating back to the 1960s. MREG has a history of identifying and capitalizing on short and long-term real estate investment opportunities throughout multiple market cycles. MREG’s investment approach is highly research-driven, with a well informed view of cyclical and secular market developments, and emphasizes local expertise and execution capabilities.

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