124 acres of land in Scottsdale sells for $125M

124 acres of land in Scottsdale sells for $125M

Article Originally Posted By AZBigMedia On March 18, 2022

An affiliate of Mack Real Estate Group, LLC (MREG) is set to acquire approximately 124 acres of land in Scottsdale after submitting the winning bid at a state auction held this week.

The winning bid was $125,000,000, according to the Arizona State Land Department.

The property, situated at the northeast corner of Bell Road and Loop 101, is a well-located infill site that can accommodate up to 4.3 million square feet of industrial, flex, and residential space. Richard Mack, CEO of MREG, announced the deal.

“This parcel is the among the largest available undeveloped properties in Scottsdale, with an excellent location that can support a mix of logistics/last-mile space, flex space, and rental housing,” Mr. Mack said. “As we proceed with pre-development, we will determine the right combination of uses for the site. On the industrial side, for instance, we see great potential for synergies with our Mack Innovation Park project in Deer Valley. Overall, we remain bullish on industrial property and residential rentals in the Phoenix MSA, and continue to expand our local portfolio with new opportunities.”

The winning bid for the Scottsdale site follows significant industrial property acquisition and development activity by MREG in Phoenix over the past few years. In 2021, affiliates of MREG acquired control of 224 acres of industrial land in Deer Valley and commenced the development of Mack Innovation Park, consisting of up to 4 million square feet of industrial and manufacturing space targeted to innovative businesses engaged in the technology, light industrial and last mile uses. Groundbreaking on Phase I of the park is set for the second quarter of 2022, kicking off construction of approximately 900,000 square feet across multiple light industrial buildings. Additionally, MREG completed the construction of The Hub at Goodyear, a 793,862-square-foot industrial facility located in Goodyear, AZ, in 2020 and has fully leased the facility.

MREG has been active in residential property as well, acquiring a 20.25-acre land parcel in Deer Valley last year with plans to construct a 297-unit build-for-rent single family residential community. The planned development anticipates significant local job growth driven by the expanding semiconductor industry. Formation, MREG’s 4-Story, 170 Unit luxury apartment development in Scottsdale, will commence preleasing in the early spring of 2022, with units expected to deliver for occupancy this summer.

Craig Henig, based in Phoenix as Executive Director of MREG, oversaw the bidding for the Scottsdale state land parcel, joined by Randy Torres, Managing Director on MREG’s investment team. “Industrial and residential demand in Phoenix continue to be extremely strong,” Henig said. “We’re excited to have this new development opportunity in Scottsdale.”