BHP Billiton of Melbourne, Australia and Los Angeles-based Lowe Enterprises are joint venturing on the unnamed project, set to rise on the site of a former copper mine along Arizona 77 northeast of Tucson. Ground will break in 2008, possibly 2009. Though it's being mapped out as primarily residential, it will have an estimated 5% dedicated to retail, light industrial and office development.
"They just finished up remediation and site reclamation and are ready to move ahead," says Kent Merselis, senior vice president with Lowe Enterprises' Phoenix office. He estimates the build-out could take up to 15 years.
BHP Billiton selected Lowe as its developer following a nine-month review of US firms. Merselis tells GlobeSt.com that the partnership is the first for both companies. "I think we represented what they were trying to find--a horizontally integrated firm that can develop a variety of things, such as light industrial, office, golf courses and so on," he adds. "They could have entered into an agreement with homebuilders specifically, but I think they wanted to do more mixed-use components."
Merselis says Lowe will develop the infrastructure for land sales to homebuilders. Lowe will handle the commercial development side.
Merselis says the area is a prime candidate for a mixed-use development that will bring a good return for BHP Billiton. "Tucson is running out of land for development," he adds. "Plus, it's a beautiful view."
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