More Land Near New Chipmaker Snagged for $17M

Article originally posted on HERE on January 11, 2022
Another parcel of land near the future north Phoenix home of the Taiwanese chipmaker and its new fab site at Loop 303 and Interstate 17 got snatched up for about $16.8 million.
Another parcel of land near the future north Phoenix home of the Taiwanese chipmaker and its new fab site at Loop 303 and Interstate 17 got snatched up for about $16.8 million.

Another parcel of land near the future north Phoenix home of the Taiwanese chipmaker and its new fab site at Loop 303 and Interstate 17 got snatched up for about $16.8 million.

According to Vizzda, a real estate data base, the Opus Group — a Minneapo-lis based a commercial real estate company — bought 29.87 acres near 19th Avenue and Happy Valley Road.

The sale date for the property was Dec. 21, according to the database.

Susan Eich, spokeswoman for Opus Group, said the company is pleased with the area.

“Opus is excited to develop state-of-the-art industrial projects in the Deer Valley submarket,” Eich said. “We look forward to sharing more information as our plans are finalized.”

The December sale shows the buying excitement for land hasn’t stopped in area that will house the roughly 1,050-acre Taiwan Semiconductor Manufacturing Co. campus where it will make computer chips.

In March 2021, TSMC and the city of Phoenix signed a development agreement that will bring a $12 billion chip manufacturing center to northwest Phoenix.

Construction on the campus’s first phase is ongoing. The first building is expected to be complete next summer at Sonoran Oasis Science and Technology Park.

The second phase will be outfitting and conditioning the building to manufacture chips.

Rick Padelford, a commercial real estate expert at Realty Executives, said land prices near the site has rocketed up since the announcement TSMC would come to Phoenix.

“(Land) has gone up signifi cantly — probably more than anywhere else in the Valley — in a short period of time,” Padelford said.

In November, Mack Real Estate Group bought 19.63 acres for $16.76 million near I-17 and Pinnacle Peak Road. Mack also bought a sizable piece of land — 224 acres— near Pinnacle Peak Road and Seventh Avenue in March.

The location is meant to help serve the supply needs of the semiconductor company.

New York-based real estate group Mack successfully bid $65 million to secure the land in the March 2021 deal where the property is described as a “signifi cant” parcel with room for additional growth.

Bob Lundstedt, executive vice president at DAUM Commercial and who covers the Deer Valley area, said the land is in high demand.

As of Dec. 10, he said he had 10 current escrows on land sales.

“We still have plenty of land in Deer Valley, however not much is fully-improved, ready to go,” Lundstedt said. There are no impact fees in Deer Valley versus the area north of Jomax (Road). Demand is strong, any buyers should hurry up and not dilly-dally.”

Padelford said the Deer Valley area is a “unique” one, and it’s not an easy area to snap up property.

“Everything I’m seeing and reading says it’s hard to buy out there,” Padelford said. “In Deer Valley, there was not that much supply to begin with.”

New high-tech manufacturing jobs could be a boon for a region that previously struggled to land highwage jobs. The Valley’s heavy tech industry, which includes major players such as Intel Corp., and ON Semiconductor Corp., are primarily based in Phoenix and Chandler.

Since the announcement, Padelford said the land near TSMC has put both developers and real estate companies in a frenzy.

“They snagged up everything they could.”

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