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-   -   Phoenix Development News (3) (https://skyscraperpage.com/forum/showthread.php?t=173764)

Obadno Nov 8, 2022 9:57 PM

Large Lot South of 202
 
Wow, The other large empty lot on 40th street south of the 202 is turning into more Data Center:

Quote:

Denver data center company expands Valley presence with new campus near Sky Harbor
After acquiring 51 acres in Phoenix, Stack Infrastructure is ready to expand its data center presence in the Valley.

The Denver-based technology infrastructure company will build a new five-building, 234-megawatt campus near 40th Street and Loop 202, just minutes from Phoenix Sky Harbor International Airport. The campus will total more than 1.7 million square feet. Stack acquired the land from Sunbelt Land Holdings LP in late October for $78.5 million, according to real estate database Vizzda.

The project will be called Stack's PHXL2 campus.

“Capitalizing on the abundant growth opportunities in the Phoenix area offers our clients the utmost scalability and flexibility while being highly cost-effective and embracing renewable energy resources,” said Brian Cox, CEO of Stack Americas, in a statement. “Expanding our footprint in this fast-growing market is a testament to our continued dedication to anticipating the needs of our clients and staying ahead of the curve in the industry by quickly delivering significant added hyper-scale capacity.”

Data centers store, process and share data and applications and are used by colocation providers, which lease out space, or cloud providers such as Amazon, Meta, Microsoft and Google, which have in recent years looked to build larger campuses.

CBRE Group Inc.'s Mark Krison represented both Stack and Sunbelt in the deal. Sunbelt had planned to build flex office buildings at the site before selling the land to Stack, Krison said. He said that Stack is looking to start work on the campus in early 2023 and that the contract for a builder is out to bid.

Stack entered the Valley in June 2020 after purchasing 79 acres in Avondale to build a one-million-square-foot data center campus that has 150 megawatts of power. Known as PHXL1, the campus is located near Litchfield and Lower Buckeye roads.

Phoenix metro still a hot data center market
Data center developers and tenants have been attracted to the Phoenix market due to tax incentives, a lack of natural disasters, low latency, lower utility rates and a stable power grid, according to experts. Research from JLL said that new data center supply will be impeded by the availability of land and power in many major markets, which could drive expansion outside of traditional hubs.

"The climate and the cost of power are both accommodating for data centers here," Krison said.

As of the first half of 2022, the Phoenix metro has about 544 existing megawatts of power across 6.3 million square feet of space with only 23.9 megawatts vacant. It was second in the country, behind northern Virginia, with 278 megawatts under development compared to zero megawatts under construction in the first half of 2021, according to previous reporting.

Stack also has expansion expands in northern Virginia; Portland, Oregon and internationally in Germany, South Korea and Australia.

This summer, data center giant QTS Realty Trust also closed on a nearly 400-acre property in Glendale close to the Loop 303 for a planned data center campus. The firm paid $255 million for the site.
https://www.bizjournals.com/phoenix/...ta-center.html

https://media.bizj.us/view/img/12389...-site-plan.png

combusean Nov 8, 2022 11:20 PM

This seems like such bad planning to put this in the middle of the metro. Let Buckeye and Casa Grande have this stuff.

xymox Nov 8, 2022 11:37 PM

Quote:

Originally Posted by combusean (Post 9785469)
This seems like such bad planning to put this in the middle of the metro. Let Buckeye and Casa Grande have this stuff.

Some datacenter site selection has to do with where the fiber is. ATT runs their main internet backbone through PHX - it's possible this site is very close to that which provides a lot of benefits to them. Also has to do with power and types of power available (DC lines are heavily in favor for datacenter). I don't think that sort of infrastructure is out in Buckeye and Casa Grande - nor will it be for quite some time. There are already a ton of datacenter around the airport and into Tempe taking advantage of this.

Obadno Nov 9, 2022 3:25 PM

Quote:

Originally Posted by combusean (Post 9785469)
This seems like such bad planning to put this in the middle of the metro. Let Buckeye and Casa Grande have this stuff.

These were giant dead zones and greenfield sites. It was always slated for warehousing/flex industrial but it just happens to be Data center instead of amazon fulfillment centers.

ASU Diablo Nov 9, 2022 6:09 PM

Semiconductor giant could be planning another $12B investment in Phoenix, reports say
 
As expected :cheers:

https://www.bizjournals.com/phoenix/...n-phoenix.html
Quote:

A Wall Street Journal report said Wednesday that chip giant Taiwan Semiconductor Manufacturing Co. could be planning a multibillion-dollar expansion in Phoenix in addition to what's it's already planning to build.

TSMC plans to announce in the coming months that it will build a "cutting-edge" semiconductor factory, or fab, north of Phoenix, according to people who spoke with the Wall Street Journal and are familiar with the expansion plans.

The investment is also expected to be similar to the initial $12 billion that the company committed to two years ago, the report said. The expanded facility would manufacture 3-nanometer transistors, which the report said are some of the tiniest and lightning-fast currently possible.

The Phoenix Business Journal reported last year that TSMC's first phase, which was announced in late 2020, will be worth $12 billion, and that the final investment in the facility, now under construction, will be even larger, potentially worth about $35 billion. The first phase of that fab is the largest foreign direct investment in the state’s history.

TSMC said in a statement to the Phoenix Business Journal that TSMC is now constructing a building to serve as a second fab at its Arizona site, leveraging resources from construction of its first fab for greater cost effectiveness.

"This building enables us to remain flexible for future expansion, but we have not arrived on a final decision on a second fab. In light of the strong customer demand we are seeing in TSMC’s advanced technology, we will consider adding more capacity in Arizona with a second fab based on operating efficiency and cost economic considerations," a spokesperson for TSMC said in an emailed response.

The city of Phoenix and the Greater Phoenix Economic Council were not immediately available to comment about TSMC's potential expansion.

The semiconductor company has said it plans to hold a ceremony in Arizona in December to install the first batch of production equipment in the plant now under construction and that the facility would produce 5-nanometer chips there. It is also gearing up to produce more advanced 4-nanometer chips with larger capacity at the facility, the Wall Street Journal report said.

The planned facility that was previously announced is on track for starting mass production in 2024 and has so far hired hundreds of workers.

TSMC told the Business Journal in late May that it has completed structural work on the support buildings for the first major sector of Fab 21, including the office building. About half of the glass has also been installed in the office building.

Dozens of suppliers have also flocked to Arizona to support TSMC and other semiconductor manufacturers.

News of the potential expansion by TSMC comes after the state announced it would allocate $100 million in federal funds it was awarded to boosting the state's semiconductor industry and after the CHIPS and Science Act was signed into law in August.

PHX31 Nov 9, 2022 7:01 PM

This probably sounds like one of the lamest anecdotes, but I think it has some foundational information to it..

I live in the north valley and ate at Chipotle in the Norterra area a couple weeks ago. The guy standing in front of me in line was a middle aged Asian man dressed in business casual attire with a lanyard around his neck labeled with a semiconductor convention of some sort.

az_daniel Nov 9, 2022 11:31 PM

Quote:

Originally Posted by xymox (Post 9785491)
Some datacenter site selection has to do with where the fiber is. ATT runs their main internet backbone through PHX - it's possible this site is very close to that which provides a lot of benefits to them. Also has to do with power and types of power available (DC lines are heavily in favor for datacenter). I don't think that sort of infrastructure is out in Buckeye and Casa Grande - nor will it be for quite some time. There are already a ton of datacenter around the airport and into Tempe taking advantage of this.

This is why there are data centers taking up entire blocks in downtown phoenix. Horrific urban planning that creates noticeable dead zones and stymies all activity around and beyond them, but they are critical infrastructure these days. Id rather them go here than in existing or developing urban neighbrohoods.

MiEncanto Nov 9, 2022 11:39 PM

Quote:

Originally Posted by az_daniel (Post 9786597)
This is why there are data centers taking up entire blocks in downtown phoenix. Horrific urban planning that creates noticeable dead zones and stymies all activity around and beyond them, but they are critical infrastructure these days. Id rather them go here than in existing or developing urban neighbrohoods.

It's certainly not ideal but every downtown has a few parcels that are not ideal. Everyone is always freaking out about the 2 data centers downtown and I just don't think it's a big deal.... I can think of so many other fish to fry that are actually things the city CAN do, whereas kicking out a data center for some other use is not gonna happen.

az_daniel Nov 10, 2022 4:54 PM

Quote:

Originally Posted by MiEncanto (Post 9786607)
It's certainly not ideal but every downtown has a few parcels that are not ideal. Everyone is always freaking out about the 2 data centers downtown and I just don't think it's a big deal.... I can think of so many other fish to fry that are actually things the city CAN do, whereas kicking out a data center for some other use is not gonna happen.

Agreed and there will always be things the city can do to improve landscaping, shade etc to mitigate. Had those data centers been built downtown today they would undoubtedly take a more urban form.

Obadno Nov 10, 2022 5:27 PM

This isnt downtown who cares?:shrug:

exit2lef Nov 10, 2022 6:17 PM

Quote:

Originally Posted by Obadno (Post 9787171)
This isnt downtown who cares?:shrug:

Agreed. For a parcel of land situated between the canal and the freeway, several miles removed from Downtown, this is actually a pretty good land use.

downtownphxguy12 Nov 11, 2022 3:13 PM

new bakery
 
proof bakery out of mesa is moving into one of the storefronts at eco phx.

can;t wait to go get morning croissants!

Proofbread.com

PHX-DUDE-MAN Nov 11, 2022 3:53 PM

Great view of downtown
 
Here is a really nice recent view of downtown Phoenix. It's increased density tremendously within the last 10 years:

https://youtu.be/h6SId3yAk8c

muertecaza Nov 11, 2022 4:53 PM

Quote:

Originally Posted by downtownphxguy12 (Post 9787964)
proof bakery out of mesa is moving into one of the storefronts at eco phx.

can;t wait to go get morning croissants!

Proofbread.com

Awesome. To any non-eastsiders that haven't been, can't recommend it highly enough.

exit2lef Nov 12, 2022 12:49 PM

Quote:

Originally Posted by muertecaza (Post 9788041)
Awesome. To any non-eastsiders that haven't been, can't recommend it highly enough.

I'm surprised they're expanding to multiple locations. I love Proof, but it seems like just yesterday that they were a home-based business struggling with city code issues and then opening their current facility on Main. I wish them well but hope they don't undermine themselves by expanding too quickly.

CrestedSaguaro Nov 17, 2022 5:26 PM

3200 North Central Residential Tower
 
New Midtown multi-family proposal for 3200 N. Central.

If anyone recalls, there was originally a pre-app for a 250' proposal in this spot in 2019. Looks like it's been dropped for a new 16 story development. This will sit in-between 3200 and 3300. Renderings look good and would add some really good density/fill to Midtown. Architect has changed from CCBG to Davis.

View docs on my Google Drive: https://drive.google.com/drive/folde...eG?usp=sharing


https://i.imgur.com/upI5D0A.png


https://i.imgur.com/JitntSE.png


https://i.imgur.com/YVJMcD0.png

IndyAZ Nov 17, 2022 6:29 PM

Quote:

Originally Posted by CrestedSaguaro (Post 9792996)
New Midtown multi-family proposal for 3200 N. Central.

Unfortunately that project is dead, at least for the time being due to construction costs.

CrestedSaguaro Nov 17, 2022 8:06 PM

Quote:

Originally Posted by IndyAZ (Post 9793064)
Unfortunately that project is dead, at least for the time being due to construction costs.

The PAPP was just submitted. How is it dead already?

IndyAZ Nov 17, 2022 10:07 PM

Quote:

Originally Posted by CrestedSaguaro (Post 9793160)
The PAPP was just submitted. How is it dead already?

Preliminary pricing came back right after and developer walked.. Also, it wasn't submitted today, if you review the forms, it was submitted Sept. 7th, its just now showing up in the City system.

ASU Diablo Nov 28, 2022 5:31 PM

How Metrocenter redevelopment, light rail extension could benefit AZ chip industry
 
Moving forward...breaking ground next year!

https://www.bizjournals.com/phoenix/...l-castles.html

Quote:

Developers of the $1 billion Metrocenter Mall redevelopment project are set to move forward with purchasing the 80-acre site and demolishing most of the buildings by next year.

Florida-based Concord Willshire Capital LLC and TLG Investment Partners and Texas-based Hines received the final approvals needed from the city of Phoenix for a tax incentive agreement, or Government Property Lease Excise Tax treatment, last week.

This means the developers will lease the property from the city for 25 years once it's built and pay an excise tax that's lower than what the property tax would be for the apartment complexes. Right now, the site produces $500,000 in property taxes, while the new development will produce $2.5 million to $3 million annually in excise taxes through the GPLET, said Steve Betts, a consultant for the project who is also a managing director at Holualoa Cos.

"The reason that's important is that trying to redevelop an old mall like this is not for the faint of heart, it is very expensive to be able to demolish and do all of the abatement work and untangle the spaghetti of infrastructure under that existing mall and then be able to put in new infrastructure," Betts told the Business Journal.

The decrease in taxes for the apartments will help offset costs associated with asbestos abatement, demolition and removal of existing infrastructure, Betts said, adding that the costs and difficulty of taking on a project of this scope is what prevented companies from wanting to redevelop the site for 10 years.

Potential rapid bus could connect TSMC workers to light rail

Betts said this location is a "prized" transit-oriented development site due to the multi-modal transportation options such as a rapid bus link and planned elevated light rail station and expansion. Also notable is the fact that the site is close to the planned Taiwan Semiconductor Manufacturing Co. factory, he said.

"We're talking to the city about having rapid bus connections from this urban village to the north to provide worker transit to the Taiwanese semiconductor and their supplier plants," Betts said. "This urban village, which will have 3,000 dwelling units and potentially 5,000 workers, would have the ability to hop on light rail to go south into the center city or hop on a rapid bus route and go north to any of these employers that are now under construction."
In May, the first development agreement was approved to reimburse the developer for construction of parking garages. Now, the development team is preparing to close on the mall property, start asbestos assessment and demolish the buildings in the first quarter of 2023. Site work will continue through 2023 so it's ready for apartment construction to commence by the end of next year, Betts said.

In total, the current plans for the redevelopment include approximately 2,850 apartment units, including potential condominiums, a minimum of 100,000 square feet of retail space, two hotels and a public park and plaza. Betts said the apartments will be within the 80 to 120% of the area median income-range, while much of the new retail at the Village will feature services and convenience stores.

"We're trying not to inappropriately impact the wonderful existing retail that's right around us," Betts said. "We have a number of other high-quality restaurants and retailers right along Peoria right outside our door step."
The existing Walmart Supercenter will remain at the site and be attached to the town center, while the existing self-storage facility will also stay.

Construction impacts: Developers working with businesses

With both the light rail extension and ongoing Metrocenter redevelopment project underway, one business in the area previously raised concerns about potential impacts of construction.

This summer, Metrocenter's neighbor, the longtime Castles N' Coasters, sent a letter to the city with fears over construction in the area affecting the park and the future Village project negatively impacting its business.
Betts said the developers hadn't met with Castles N' Coasters before it sent a letter to the city but have since sat down with the owner to address his concerns.

"Now that we've had an opportunity to meet and spend almost two hours talking through the project, all the details of the project, we believe he is very supportive now, because we will be bringing many quality patrons to this project," Betts said, adding that Castles N' Coasters' main concerns were accessibility and visibility during construction and security. "We assured them, [safety] was our No. 1 issue, that we are in fact going to have security ... we are in the process of negotiating for a police office that's part of our town center that we would donate."

Jeff Stapleton, the program manager for Phoenix's transit oriented development, said the city wants developers to have a "great relationship" with properties around them and that the developers of Metrocenter helped fund a community organizing effort to engage more businesses and property owners in the area.

Betts said Councilwoman Ann O'Brien's office set up a series of meetings with business groups in the area and that the developers and the city jointly funded an outreach person to give businesses and property owners a voice in improvements as the project progresses.

Light rail expansion: Set to open by 2024

A key piece of the Metrocenter redevelopment is the Northwest Extension II of the Valley's light rail system, which first opened in 2008 and has expanded to 28 miles of rail and three miles of temporary streetcars.

One of Valley Metro's two active construction light rail projects includes the Northwest Extension Phase II and an expansion into south Phoenix, a total of seven miles of active construction.

The Northwest Extension will extend the light rail west on Dunlap Avenue from 19th Avenue and then north on 25th Avenue and across Interstate 17 at Mountain View Road and ending west of the freeway at the former mall site. It will also include three stops along the extension and a park-and-ride location at the former mall site.

"This is pushing another mile and half into northwest Phoenix to connect communities and give them another option," said Trevor Collon, Valley Metro's deputy director of construction. "We've [also] seen consistently that economic redevelopment does happen around our light rail corridor, so that's an ancillary benefit as well, that people are interested in living and working around the stations."

As of November 2022, Collon said the $401 million Northwest Expansion II is about 60% completed. It's expected to open in early 2024 and help connect West Valley communities to Phoenix.

"If you've been out there or had the opportunity to be around it, you're going to see a lot of visible progress in the last year or so," Collon said. "We've connected our bridge over the I-17. Every single one of our three new stations have gone into the air."

In the summer of 2023, Valley Metro said the project will appear completed, but during this time the agency will be testing the light rail to make sure all of the systems are working. In addition, the light rail station platforms will feature artwork from seven artists, Valley Metro said. This expansion project also includes an elevated light rail station, which is the first in the Valley metro system, a parking garage, and a transit center for buses underneath the platform, which is where Metrocenter's existing transit center will be moved to.

It will also have a direct connection from the garage to the elevated station, so people can park and walk across to the station on a bridge, he added. To date, the expansion project has hired more than 1,500 workers including engineers, construction workers to public relations and real estate professionals.


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