The massive $7 billion Halo Vista development in north Phoenix has secured its first commercial tenants. Costco Wholesale Corp. and Marriott International will establish a presence in the 2,300-acre project designed to support the adjacent Taiwanese Semiconductor Manufacturing Co. (TSMC) microchip plant.
The agreements mark a significant step in building out the infrastructure for what is considered the largest foreign direct investment in Arizona's history. The new retail and hospitality options aim to serve the thousands of employees and associated businesses connected to the growing semiconductor hub.
Key Takeaways
- Costco and Marriott are the first commercial tenants for the $7 billion Halo Vista project in north Phoenix.
- The development is situated next to TSMC's massive semiconductor campus, a project with over $65 billion in investment.
- Two Marriott hotels, a Courtyard and a Residence Inn, will be built to serve the area.
- Halo Vista plans to include 30 million square feet of commercial space and nearly 9,000 homes.
First Tenants for a New Economic Hub
Developers Mack Real Estate and McCourt Partners have confirmed deals with two major American brands for their Halo Vista project. This master-planned community is located near Interstate 17 and the Loop 303 freeway, surrounding TSMC's 1,100-acre campus.
The addition of Costco provides a major retail anchor, while Marriott will address the area's growing need for accommodation. Phoenix-based firm Common Bond Development has been tasked with developing two distinct hotel properties: a Courtyard by Marriott and a Residence Inn.
Chris Jansen, president of the development entity Mack Halo Vista, stated that these commercial additions are crucial. "[They] enable our project to deliver much-needed services in support of the growing TSMC ecosystem," Jansen explained. An agreement for an auto mall within the development has also been reached.
A Symbiotic Relationship
The Halo Vista project is not just being built near the TSMC plant; it is being developed specifically to support it. The goal is to create a self-sustaining community where thousands of TSMC employees and workers from supplier companies can live, work, and shop without long commutes. This integrated approach is seen as essential for the long-term success of the semiconductor hub.
The Scale of TSMC's Arizona Investment
TSMC first announced its Arizona campus in May 2020. Since then, the company's commitment has grown substantially, making it a cornerstone of the regional economy and a key project in the U.S. effort to onshore semiconductor manufacturing.
Investment by the Numbers
- Initial Investment: Over $65 billion committed for three semiconductor fabrication facilities (fabs).
- Potential Expansion: The company is reportedly considering up to six fabs, which could push the total project cost beyond $165 billion.
- Job Creation: TSMC estimates it will create approximately 6,000 direct high-tech jobs.
- Indirect Impact: Tens of thousands of additional jobs are expected to be created through suppliers and supporting businesses.
Production at the first facility began last year, marking a major milestone for the project. The massive scale of the operation necessitates a correspondingly large support infrastructure, which is the primary mission of the Halo Vista development.
Building a Community from the Ground Up
The land for Halo Vista was acquired by Mack Real Estate Group in a May 2024 Arizona State Land Department auction for $56.3 million. The vision for the 2,300-acre site is ambitious, aiming to create a fully integrated urban environment in what was recently undeveloped desert.
Halo Vista's Master Plan
The full build-out of the project is expected to transform the landscape of north Phoenix. The plans include:
- Commercial Space: Approximately 30 million square feet designated for various uses, including industrial, retail, office, and research facilities.
- Residential Units: Nearly 9,000 homes are planned, ranging from apartments to single-family houses.
- Community Services: The development will also incorporate healthcare and hospitality services to support the resident population.
"These additions are incredibly important as we strive to create a symbiotic, master planned, live/work/play community for innovation that works well in service of TSMC and Phoenix as a whole," said Richard Mack, CEO of Mack Real Estate Group, in a statement.
Mack emphasized the collaborative nature of the planning process. "We have worked closely with TSMC and the city of Phoenix to understand the top-priority uses, and our team is working hard to deliver them," he added.
The Real Estate Teams Behind the Deals
A number of prominent commercial real estate firms are managing the leasing efforts for the vast project. The industrial and mixed-use components of Halo Vista are being handled by a team from CBRE Group, including Rusty Kennedy, Mitchell Stravitz, Mark McFate, and James Cohn.
The retail leasing strategy, which secured the Costco deal, is being led by Greg Laing and Dan Gardiner of Phoenix Commercial Advisors. Their work will be central to curating the mix of shops, restaurants, and services that will form the commercial core of the new community.
