AZRE magazine July/August 2015 by AZ Big Media

INSIDE: Arizona Builders Alliance // International Interior Design Association // AZCREW's 30th Anniversary JULY-AUGUST 2015

The Most Influential Women in CRE

GROUNDBREAKERS

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'Forum' and Function

President and CEO: Michael Atkinson Publisher: Cheryl Green Vice president of operations: Audrey Webb

he last few months have been full of rip your hair out, tighten your seat belt excitement at AZRE. We hired our first staff writer, Meryl Fishler, whose byline you will begin seeing more within the pages of this magazine. Read her article about the private land grab on page 10. You may also note our stunning cover girls, who are the second grouping of humans to run on the cover of AZRE. Putting together the list of Most Influential Women is always a rewarding struggle. As a woman with a still-young career, I can’t imagine a better group of role models. It was a privilege to share their stories of achievement. They begin on page 33. AZRE is also introducing a new broker feature in the Big Deals section. We’re kicking things off with Commercial Properties Inc.’s Leroy Breinholt, who finds a way to be involved in more than 600 transactions a year. Hear the method to his madness, which includes fast cars, on page 18. And, lastly, I’ve been deep in throes of bringing together a stellar group of panelists for AZRE’s first commercial real estate forum. From the top developers in the state to leaders in commercial industries and the brokerage community, this meeting of the minds is one I recommend you make space for in Evernote. Save the date: July 23 at the Ritz Carlton between 3:30 and 7 p.m. We promise it’ll bring down the house — although that may also have something to do with it being the last big event at the Ritz before it’s rebranded as a boutique-y hotel in the Autograph Collection (read more about the changing hotel industry on page 6). Either way, it’s bound to be monumental, right? See you at the forum!

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EDITORIAL Editor in chief: Michael Gossie Editor: Amanda Ventura Staff writer: Meryl Fishler Intern: Laura Burnett

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AZRE | Arizona Commercial Real Estate Director of sales: Jeff Craig

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ART Art director: Mike Mertes Graphic designer: Ana Richey

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DIGITAL MEDIA Director of digital sales: Mark Blum Web developer: Eric Shepperd Digital coordinator: Robin Sendele

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MARKETING/EVENTS Marketing & events coordinator: Melanie Ploussard Marketing coordinator: Lorin Parkhurst OFFICE Special projects manager: Sara Fregapane Executive assistant: Mayra Rivera Database solutions manager: Cindy Johnson

Az BUSINESS MAGAZINE Senior account manager: David Harken Account managers: Megan Gould | Shannon Spigelman AZ BUSINESS LEADERS Director of sales: Mark Blum RANKING ARIZONA Director of sales: Sheri King EXPERIENCE ARIZONA | Play Ball Director of sales: Ryan Moore CREATIVE DESIGNER Director of sales: David Silver

Amanda Ventura Editor, AZRE amanda.ventura@azbigmedia.com

2 | July-August 2015

AZRE: Arizona Commercial Real Estate is published bi-monthly by AZ BIG Media, 3101 N. Central Ave., Suite 1070, Phoenix, Arizona 85012, (602) 277-6045. The publisher accepts no responsibility for unsolicited manuscripts, photographs or artwork. Submissions will not be returned unless accompanied by a SASE. Single copy price $3.95. Bulk rates available. ©2015 by AZ BIG Media. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without permission in writing from AZ BIG Media.

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CONTENTS

FEATURES 2 Editor’s Letter 6 AZRE Source

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12 New to Market

14 Big Deals

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20 After Hours

22 Legislative Update

26 Cover Story: Steeple People

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33 Most Influential Women

46 Tucson Market Update 50 International Interior Design Association

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57 AZCREW’s 30th Anniversary

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73 Arizona Builders Alliance On the Cover: Front (l to r): Jody Pokorski, Danielle Casey, Maria Salenger, Alison Melnychenko; Back (l to r): Alisa Timm, Vicki Williams, Karen Halpert, Barbi Reuter Photo by Mike Mertes

Corrections and clarifications:

In “New to Market,” Northern Trust’s new office was misidentified as being at Airport I-10. It is at the Discovery Business Campus. In “Legislative Update,” Tim Lawless’ column prematurely ended. The last sentence was supposed to read: “As a result of this draft ordinance, NAIOP-AZ formed a coalition with 10 other groups to pass SB 1241 (Barto) at the State Legislature that preempts cities from enacting this type of mandatory reporting and this bill was signed into law by the governor.” 4 | July-August 2015

GO TO store.azBIGmedia.com to purchase subscriptions, digital issues and plaques

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Make room for the boutique boom

By ???????????

By Amanda Ventura

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rizona may be pushing its weight around as a tech hub, but the state is also seeing its hospitality sector bounce back with a force that is causing waves of property exchanges, renovations and re-branding efforts to many hotels and resorts. Most recently, the Ritz-Carlton on 24th Street and Camelback Road in uptown Phoenix did not have its contract renewed and will be re-branded by Destination Hotels as part of the Autograph Collection, an independent boutique-style hotel. Tempe has also seen re-branding of a former Howard Johnson into the quirky Graduate Tempe near Arizona State University by AJ Capital Partners and the old Hayden Flour Mill in downtown Tempe has expectations to be the digs for another boutique hotel. “In Arizona, it seemed we had the double whammy of economic downturn and immigration legislation that had a negative impact on travelers, especially business travelers,” says HSL Properties Executive Vice President Omar Mireles, who purchased Hilton’s El Conquistador resort in Tucson last January. “As that has faded, that has made sellers more willing to sell.” Phoenix hotel occupancy rose nearly 5 percent in the first four months of 2015, bumping it to No. 3 in the top 25 markets. It helps that coastal towns

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GRADUATE TEMPE

PHOTOS BY CHRISTIAN HORAN PHOTOGRAPHY

of San Francisco, Los Angeles, Boston and Atlanta are seeing dramatic rises in pricing, which is bringing business inland, says CBRE Hotels First Vice President Jerry Hawkins. “Phoenix is in great demand for hotel purchases right now,” he says, adding that the city can expect some industry-wide changes to affect a sector that’s going through a complicated metamorphosis. The way typical branded hotels run is as such: A franchisee buys a building, hires a management company to handle day-to-day operations and then contracts out with one of the big “flags,” such as Starwood Hotels & Resorts (The W, The Westin, Sheraton, Aloft, among others). Every seven years or so, brands provide franchisees with a property improvement plan — or a PIP — and a check that can be cashed as a loan from a bank. “Being able to borrow from the bank for a PIP is less existent,” says Caliber Companies CEO Chris Loeffler. “The brands stopped forcing owners to do renovations in 2005, knowing what the future would look like.” Because of this, it could be nearly 17 years since some hotels have been renovated with a PIP. Renovation requests were down due to brands not wanting to lose their agreements. “Now that we’re through the

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recession, the brands are more willing to force an owner to comply with the property’s current brand," he says. This is leading to more hotels exchanging hands. Owners may not be able to keep up with aggressive branding pushes for a variety of reasons, including an owner being unable to borrow the necessary amount for renovations. A hotel renovation can cost nearly as much as a property. “(Consistent brands) are becoming somewhat obsolete,” he says. “Brands, even if they can upgrade, are forcing (older hotels) out of their systems and will not renew the brand.” Behold the boutique hotel. “Boutique hotels weren’t doing well (at the height of consistent hotel branding),” says Kimbra Cole, CBRE Hotels. “Now, Hiltons are bringing them into the system. If you go into an Autograph Collection hotel in Dallas, it won’t look anything like the one in Phoenix. They focus on what’s local.” Brands that don’t meet the standard and are phased out will be converted into less expensive hotels. Overall, this has the potential to push values down in the sectors, says Hawkins. There is a good chance that the already inexpensive hotels will be re-purposed for independent or assisted living, he adds.

July 23, 2015 Ritz-Carlton ARIZONA’S MID-YEAR UPDATE & FORECAST

AZRE magazine will host a panel of Arizona’s top commercial real estate experts, yielding in-depth discussions of economics, development and state of the industry. Highlights include market analysis and an all-star broker panel. Networking & cocktail reception to follow.

Dave Cheatham Velocity Retail Group

Craig Coppola Lee & Associates

Sharon Harper Plaza Companies

Justin Kelton McCarthy Building Companies

Lee McPheters JPMorgan Chase Economic Outlook Center/ASU

Bob Mulhern Jackie Orcutt Colliers International Cushman & Wakefield

Grady Gammage Gammage & Burnham

John Graham Sunbelt Holdings

Mike Haenel DTZ

Greg Vogel Land Advisors Organization

Sandra Watson Arizona Commerce Authority

Ed Zito Alliance Bank of Arizona

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PROJECT

NEWS Flooring Sky Harbor

The City of Phoenix, McCarthy Building Companies and Richard-Bauer will replace approximately 440KSF of Terminal 4 with terrazzo flooring. The project will begin in September 2015 and is expected to be completed in October 2019.

Ante up

Alliance Residential closed on two multifamily sites in Gilbert and Phoenix in early May. The two developments will reportedly host a total of 536 units.

Multifamily business

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E M G Breweries tap into adaptive I Breuse of retail, industrial SAN TAN BREWING COMPANY

PHOTO BY MIKE MERTES, AZ BIG MEDIA

Chilean-based developer Sencorp has broken ground on a 59KSF, 49-unit condo complex in downtown Phoenix, off 2nd Street. The project, en Hance Park, is across the street from Margaret T. Hance Park and expected to be completed in summer 2016.

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Skanska has finished the improvements to State Route Slate Creek Curve in Sunflower, a $6.1M roadway project for the Arizona Department of Transportation. This included roadway realignment, slope stabilization and installing a truck escape ramp.

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By Amanda Ventura

ifty-four-year-old Walter Crutchfield, principal and co-founding member of Phoenix-based development company Vintage Partners, is sipping on Oskar Blues Breweries’ Dale’s Pale Ale. It’s one of the beers hooked up to his office’s commercial grade tap, where craft beer flows often. “It’s a true American industry,” Crutchfield says. In the last five years, the craft beer industry has grown 15 percent. He attributes this to Millennials turning 21 in a time when hop-forward flavored beers were trendy. Crutchfield’s partner, Dave Scholl, testified for the passage of Senate Bill 1030, which would give Arizona's 72 breweries the highest barrel cap in the country, and Vintage Partners approached

the International Council of Shopping Centers’ lobbyists to support the bill. “We recognized that you have 300 empty big boxes,” Crutchfield says. “The next generation of tenants is where real estate is. People got stuck on Target coming back. It didn’t. If we don’t think about cultivating the next generation of tenants, we won’t have those tenants.” Vintage Partners, which has recently taken on renovating Uptown Plaza — a retail center that was once the epicenter of action in the ‘50s —is focusing on attracting breweries as tenants. While talking to local breweries about space, he says they mentioned being “stuck” by the then-current bill in terms of expansion. “There’s no project we have that we’re not having some discussion with brewery

What SB 1030 means for Arizona breweries:  Cap increase: Increases the current microbrewery production cap from 40,000 barrels to a total of 200,000 barrels regardless of the number of microbrewery licenses held.  Preserves current restaurants: Ensures the industry moves forward without compromising establishments currently in existence to allow for a clean transition under the new guidelines.  Guest tap privileges: Microbreweries will be able to sell other microbrews without having to obtain additional licenses. This provision also allows for greater distribution of beers produced as a collaborative effort between microbreweries.  Second level of microbrewery status: When a microbrewery hits the 40,000 barrel production level, it can keep growing (subject to cumulative cap) but relinquishes all self-distribution rights (except for its on-site retail), and it also cannot open any more remote/off-site retail locations.  Limit on number of remote/off-site retail locations: An overall limit of 7 licenses. Source: Arizona Craft Beer Guild

or brewpub,” he says. The dynamic of Uptown Plaza, he says, has flipped from being predominantly national tenants selling soft goods (such as clothing) to a gathering place where local shops and restaurants are the anchor tenants. In 2011, Arizona had 35 breweries that created $600M in direct economic impact and $1.2B in indirect economic impact. For every job held by a brewer, 45 jobs are created to support it. There are some limitations breweries are facing while looking for adaptive reuse projects. Ceilings, says Brian Kocour, senior director of retail brokerage at Cushman & Wakefield, need to be 18 to 20 feet high to accommodate kettles and brewery systems. Though he says he’d like to see a “true brewery” in downtown Phoenix — potentially in the Luhrs building, where he’s currently leasing — he notes that older industrial buildings are not making the cut in downtown Phoenix. Nano breweries, such as Mother Bunch Brewing, are having better luck. Breweries are also looking at nightlife

hot spots like Old Town Scottsdale, where Chicago’s Two Brothers Brewing Company just opened in the former Saddle Ranch building. The two-story building was already tall, but the surface area available for seating was precious. Architect Erik Peterson, of PHX Architecture, says the firm decided to have the brewing “floating” between the floors and above the bar as a spectacle of a design feature as much as a necessary one. “Every restaurant and bar is scouring the Valley for any sort of building with character,” he says. “We hear from restaurateurs that they’re visiting all buildings available through Scottsdale, Chandler and Phoenix to find those unique spaces that have open truss work or brick work to adapt for their restaurant … Even the ones that are coming from ground-up are incorporating things that make them look like old warehouses.” It’s ultimately more expensive to make a building look old, Peterson says. The textured aesthetic created by brick, trusses and wood beams are atypical building features today. Brewers are a bit romantic about the bones of a building and its story, says Rob Fullmer, executive director of Arizona Craft Beer Guild. Fullmer, before he turned his beer hobby into a career, worked in urban development, public policy and architecture, but he’s not alone. Brewers are constantly eyeing buildings with stories that often get incorporated into the product. For example, San Tan Brewing Company moved into a former Valley Bank building and has a “From the Vault” series of beer. Quite a few breweries are drooling over the former music store, Circles, in downtown Phoenix. For the rest of the people who may need to “manufacture” their brick-and-beer building, this could be the cause of delay in expansion plans. “People don’t run businesses waiting for laws to pass,” Fullmer says. “They generally like to have a five- to 10-year plan. If they have a brewery in another state, they’re already planning somewhere else in five to 10 years. This bill puts us on the list of available places. It won’t have an immediate effect.” The story of the bill itself was high profile in the brewing world, Fullmer says, adding that during a recent visit to Portland the story resonated with local brewers in Oregon.

PROJECT

NEWS West is best

Wentworth Property Company has announced it will begin marketing its 380KSF West 80 industrial speculative development, which will break ground later this year and be completed in 2016.

Money shot

Hayden House Tempe, LLC, has announced the name of its mixed-use development project on the corner of Mill Avenue and Rio Salado Parkway — One | Hundred | Mill. Construction is expected to begin at the end of the this year with delivery in 2017.

High voltage

APS is upgrading its Ocotillo power plant in Tempe, which includes replacing two gas generators from the 1960s with five modern units. The $700M project is expected to be completed in 2018. 9

AZRE SOURCE

THE LAST 17% The private land grab By MERYL FISHLER

t is obvious the Valley is landlocked, but not all of that land is up for grabs. Only 17 percent of land in Arizona is private land available for development. The public state trust owns a majority of the undeveloped land in the state. “I felt this is a well-kept secret,” said Kuldip Verma, CEO of Vermaland, one of the largest landowners in Arizona. This will cause a scramble for land as developers try to tie up the remaining land and, once those are spoken for, developers will have a difficult time to find land for their projects, Verma said. “As Phoenix grows, it will eventually become landlocked. You just cannot make any more land, and everything requires land,” Verma said. As the population grows land development will be forced around the state parcels that are not up for auction. The State Trust determines what land goes up for sale with the goal of maximizing profits for the state. “You need to pay attention to the State Land Department,” said Nate Nathan, president and broker of Nathan & Associates. About 200,000 acres a year are auctioned statewide and there is no way to predict what land will go to auction, Nathan said. Much of the Valley is backed up against state-owned land. However, there is land in the path of growth in the West Valley that can accommodate the growth, said Greg Vogel, CEO and founder of Land Advisors, the nation’s largest brokerage company focused exclusively on land.

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The West Valley is the only area in the Valley that isn’t landlocked, and experts believe we will see a majority of future development in this area. “It is estimated the West Valley will capture about 42 percent of permits over the next few years,” Nathan said. The population of Phoenix is expected to add one million people every 10 years. The general consumption of land as the population grows is one acre for land for every six people, Vogel said. Vermaland’s strategy is to buy land about 10 to 15 miles outside of existing development that is strategically located and has characteristic that will appeal to developers, Verma said. Most of its land is raw and undeveloped, Verma said. “You can buy land at an extremely low per acre price and then develop it and sell it for a very high return,” Verma said. As the Valley grows, development pushes outward and these raw areas become prime real estate. When buying and selling land, developers consider availability to utilities, transportation and access, Vogel said. New freeways are dissecting the Valley and we can expect new development to occur at these off ramps. Development will follow these freeways, job listings and a cooperative government that supports economic development, Vogel said. Arizona can also expect to see growth up as it grows out, getting denser in downtown Phoenix, Tempe and Scottsdale.

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Planning and Zoning City of Avondale

In a move that would make it more competitive with some of its neighboring cities, the Avondale City Council voted to create an incentive fund that would enable the city to reduce development fees by 20 percent. The city hopes the reduced fees will generate more residential and commercial development and growth. Currently the city’s existing fee is approximately $2,000 higher than most other cities and among the highest in the West Valley. Development fees are one-time payments made by developers before they are issued building permits. The fees are then used for improvements to accommodate future growth. The general development community had indicated to Avondale that the market can’t bear the cost of the city’s development fees and has asked the city to review options. Jackson Moll, vice president of municipal affairs with Home Builders Association of Central Arizona, said the market won’t support the current fees and that the reduction is a welcome change. The Avondale Mayor, Kenn Weise, stated that the city needs to generate residential development and asked for cooperation from the development community. The plan is that more residential development will then lead to more commercial development. The 20 percent reduction amounts to $3,541 and would reduce the fee to $14,166. For commercial, the dollar impact of a 20 percent fee reduction will be different for each project because there is not a standard development fee amount for such projects.

The P&Z column is compiled by Dave Coble and George Cannataro with Coe & Van Loo Consultants, cvlci.com

New to Market

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Retail Crown on 7th

Mixed Use CB20

MIXED USE Tiburon at Chandler Airport

DEVELOPER: Buzz Gosnell and Niels

DEVELOPER: Wetta Ventures General Contractor: TBD Architect: Brick & West Design Brokerage: DTZ Location: 20th Street and Camelback

DEVELOPER: City of Chandler General Contractor: Brycor Builders Architect: Creo Architects Brokerage: DTZ Location: Cooper and Germann roads,

Road, Phoenix SIZE: 12,130 SF

Chandler SIZE: 81,050 SF

Kreipke

General Contractor: Alexander Building Company Architect: Brick & West Design Brokerage: Venture REI Location: 7th Street, between Missouri Avenue and Bethany Home Road Size: 18KSF VALUE: $6M redevelopment Start/Completion: November 2014 to summer 2015

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Start/Completion: September 2015 to

January 2016

Start/Completion: April 2015 to fall 2015

BREAKING GROUND: (Top to bottom, left to right): Crown on 7th, REI Distribution Center, First Place Transition Academy, CB20, Orchard Pointe

Industrial REI distribution center

Multifamily First Place Transition Academy

Senior Living Orchard Pointe

DEVELOPER: REI, Sunbelt Holdings, Merit

DEVELOPER: First Place, an Arizona

Partners

nonprofit

DEVELOPER: Glendale Heritage LLC General Contractor: Mountain West

General Contractor: Renaissance

Companies

Architect: Butler Design Group Location: Camelback Road and Loop 303 SIZE: 400KSF on 34 acres Start: May 2015

General Contractor: Ryan Companies Architect: RSP Architects Location: 3001 N. 3rd St., Phoenix SIZE: 88KSF VALUE: $18M Start/Completion: 1Q 2016 to 3Q 2017

Contracting LLC Architect: Reece Angel Rowe Location: Bell Road and 67th Avenue, Glendale SIZE: 172,062 SF on 3.95 acres Start/Completion: TBD

Leroy Breinholt’s Team David Bean, sales & leasing associate Corey Sposi, executive sales & leasing specialist Darin Edwards, vice president, sales & leasing Eric Jones, senior vice president, sales & leasing

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PHOTO BY MIKE MERTES, AZ BIG MEDIA

Commercial Properties Inc. pumps up the volume

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ou probably don’t want to invite Leroy Breinholt to a round of golf. It’s not just because he doesn’t have the five hours to spare, but he would just get bored by the ninth hole. Breinholt has been an industrial broker for nearly three decades, for much of the last he has made a reputation for closing more than 200 and 300 deals year. In the last seven years, his company, Commercial Properties Inc., has doubled in size. The 52-year-old was listed fourth in the U.S. for total square-footage of transactions in 2014 by CoStar Corporate. He completed

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1,953,851 SF in industrial deals. He was the leading broker in number of industrial transactions completed in 2014 by a long shot. Breinholt and his team completed 655 industrial transactions in 2014; The secondhighest contender completed 371. The goal is to complete two transactions a day, Breinholt says. In a firm with 90 people, 52 of which are brokers, Breinholt and his team complete just about half of the firm’s four daily transactions. A big deal for Breinholt is between $1M and $5M. A considerable slice of his M.O. is responsiveness and respect

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regardless of size. “We’re not trying to be the biggest,” he says. “I just want to be good at what we can do. ... You have to be on your game 12 hours a day, responding to everyone within an hour. These tenants are intense. They want more care and to be shown they are as important as the multi-million-dollar deals.” There are some days when he has only made a $50 commission, he says, but the key to turning that into a sustainable business is relationships. The fourth-generation Arizonan’s family has been in the area since the late 1800s, he says. His family has cultivated a lot of contacts in that time. Seven years ago, he closed his biggest deal for $22.8M. He had worked with the ownership for more than 20 years when they finally decided to sell. Now, the property, just down the street from CPI’s office, is seeing 400KSF of new development. The boardroom isn’t the only place where Breinholt likes to shift things into high gear. He and his family are huge snowmobile riders and have seven machines parked and ready for their vacations to Utah. Earlier this year, Breinholt was exposed to one of five private racetracks in the country, which is fast becoming his off-season hobby. A few years ago, he bought into two planes, which he can land at Inde Motorsports Ranch in Willcox, where he races his own cars, such as Porsches and Corvettes with family, business associates and clients. “I try to mix the family and the business," he says. In addition to pulling 12-hour workdays, Breinholt spends 15 to 20 hours a week in church service helping young adults. He’s also planning a trip in October to South Africa with Enactus.

It’s the big deals, and the brokers who make them, that make the market an interesting one to watch. In every issue, AZRE publishes the top five notable sales and leases that have occurred one month out from publication based on research compiled by DTZ and Colliers International with CoStar.

Top 5 Notable Leases and Sales (April 1 to May 31, 2015) Source: DTZ Research Department, Colliers International and CoStar

Industrial/Sales

Office/Sales

1. White Star PorTfolio, Phoenix 460,669 SF; $42,178,000 Buyer: The Realty Associates Fund X, LP Seller: White Star LLC Listing BrokerS: Mark Detmer and Bo Mills, JLL

1. AMEX Campus, Phoenix 513,361 SF; $91.5M Buyer: Griffin Capital Essential Asset REIT II, Inc. Seller: Police & Fire Retirement System of Detroit Listing BrokerAGE: Jim Fijan and Will Mast, CBRE

2. DMC Portfolio, Phoenix Metro 230,524 SF; $22.85M Buyer: BH Properties LLC Seller: Buchanan Street Partners Listing BrokerAGE: DTZ 3. Canal Crossing Logistics Center, Phoenix 155,114 SF; $14.7M Buyer: Bixby Land Company Seller: Conor Commercial Real Estate Listing BrokerAGE: Lee & Associates

Mark Detmer

Bo Mills

4. 8700 E. Thomas Rd., Scottsdale 128,795 SF; $6.75M Buyer: Wentworth Property Company, LLC Seller: Andreas & Elisabeth Layher Listing BrokerAGE: CBRE 5. Z Fahrenheit Building, Scottsdale 34KSF; $4,285,000 Buyer: 15690 N. 83rd Way, LLC Seller: Z Fahrenheit Holdings, Inc. Listing BrokerAGE: Airport Properties Specialists, LLC

BIG DEALS is sponsored by

2. Biltmore Commerce Center, Phoenix 259,730 SF; $58M Buyer: Lincoln Property Company Seller: DPC Development Companies Listing BrokerAGE: Cushman & Wakefield, Inc. 3. River Corporate Center, Tempe 133,225 SF; $24.6M Buyer: Bruce Karsh Seller: Piedmont Office Realty Trust, Inc. Listing BrokerAGE: Cushman & Wakefield, Inc.

Jim Fijan

Will Mast

4. Four Gateway, Phoenix 138,240 SF; $22,927,000 Buyer: VanTrust Real Estate LLC Seller: LBA Realty Listing BrokerAGE: CBRE 5. AIG Insurance, Phoenix 106,397 SF; $16.85M Buyer: Select Income REIT Seller: Sabal Financial Group, LP Listing BrokerAGE: CBRE

Waypoint

Firm: Lincoln Property Company and Harvard Investments Build: Waypoint – A two-building, 258,000 sq. ft. Class A Office Campus in Mesa, AZ Loan: Construction Loan financed by Alliance Bank of Arizona 15

LAND/Sales

MULTI-FAMILY/Sales

RETAIL/SALES

1. 44 Monroe, Phoenix 249,504 SF; 184 units; $50.65M Buyer: HSL Properties, Inc. Seller: Winthrop Realty Trust Listing BrokerS: Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch, CBRE

1. El Pedregal, Scottsdale 62,310 SF; $47,431,846 Buyer: Columbia Sussex Corporation Seller: Hilton Worldwide Holings, Inc. Listing BrokerAGE: Hodges Ward Elliott, Inc.

1. Paradise Ridge, Phoenix 49.6 acres; $35M Buyer: Camden Property Trust Seller: Arizona State Land Department 2. NWC 91st and Deer Valley Rd., Peoria 78.93 acres; $17,276,000 Buyer: Maracay Homes Seller: Communities Southwest 3. Pyramid Peak Parkway, Peoria 82.08 acres; $10.43M Buyer: Lennar Homes, Inc. Seller: Arizona State Land Department 4. Golden Sands Farm, Gila Bend 160 acres; $10,270,490 Listing BrokerAGE: Western Land Company 5. Lots 1-190, The Meadows, Peoria 53.22 acres; $9,307,956 Buyer: Woodside Homes Seller: Communities Southwest Listing BrokerAGE: Nathan & Associates

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2. Stone Canyon, Mesa 358,168 SF; 392 units; $47M Buyer: ORR 1 Mesa LLC Seller: SCI Real Estate Investments Listing BrokerAGE: CBRE 3. Pillar at Rock Canyon, Peoria 249,504 SF; 184 units; $36.2M Buyer: The Ergas Group Seller: Private Portfolio Group, LLC Listing BrokerAGE: CBRE

4. Cabana on Thomas, Phoenix 249,504 SF; 184 units; $24.35M Buyer: Abacus Capital Group LLC Seller: Deco Communities Listing BrokerAGE: Deco Communities

Asher Gunter

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2. Villages at Shea, Scottsdale 116,956 SF; $32.5M Buyer: YAM Properties, LLC Seller: Karlin Scottsdale Shea LLC Listing BrokerAGE: DTZ

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3. Sears, Chandler 141,032 SF; $26,938,488 Buyer: The Macerich Company Seller: Sears Holding Corporation

4. Sears, Glendale 97,874 SF; $22,984,013 Buyer: The Macerich Company Seller: Sears Holding Corporation

5. Marketplace at Lincoln & Scottsdale, Scottsdale 22,081 SF; $14M Buyer: Hannay Realty Advisors Seller: Covington Asset Management Listing BrokerAGE: ORION Investment Real Estate

5. Green Leaf at Dana Matt Pesch Park, Mesa 231,910 SF; 222 units $22.1M Buyer: Green Leaf Capital Partners Seller: Virtu Investments Listing BrokerAGE: Marcus & Millichap

Where Experience Meets Opportunity

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16 | July-August 2015

Tyler Anderson

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Industrial/Leases

Office/Leases

Tony Lydon

1. Liberty Logistics Center I, Phoenix 593,600 SF Landlord: Liberty Property Trust Tenant: Tuesday Morning Landlord BrokerS: Tony Lydon and Marc Hertzberg, JLL TENANT BrokerS: Don MacWilliam, Payson MacWilliam, Tom Woods, Brian Woods, Colliers International 2. NEC 94th Avenue and Buckeye Road, Tolleson 170KSF Landlord: First Industrial Realty Trust, Inc. Tenant: Mattress Firm Landlord BrokerAGE: Colliers International TENANT BrokerAGE: DAUM Commercial

Mark Hertzberg

Don MacWilliam

3. 2021 E. Jones Ave., Tom Woods Phoenix 94,885 SF Landlord: Cohen Asset Management, Inc. Tenant: Michael Lewis Company Landlord BrokerAGE: Lee & Associates TENANT BrokerAGE: DTZ

Brian Woods

4. 33 S. 56th St., Chandler 42,569 SF Landlord: Reasons Aviations LLC Tenant: Amorworks Enterprises Landlord BrokerAGE: Lee & Associates

5. Freeport Distribution Center, Phoenix 32,241 SF Landlord: Lincoln Property Company Tenant: Express Furniture Landlord BrokerAGE: JLL TENANT BrokerAGE: DAUM Commercial

BIG DEALS is sponsored by

18 | July-August 2015

Luke Walker

1. Phoenix Corporate Tower, Phoenix 112,323 SF Landlord: Colony Capital, LLC Tenant: Arizona Department of Child Safety Landlord Broker: Luke Walker and Dave Carder, CBRE TENANT Broker: Pat Williams, Steve Corney, Vicki Robinson, Andrew Medley and Chris Corney, JLL 2. Mesa Financial Plaza 46,555 SF Landlord: Wilson Property Services Tenant: Arizona Department of Child Services Landlord BrokerAGE: Cushman & Wakefield

Dave Carder

Pat Williams

3. Knight 101, Phoenix 34,590 SF Landlord: Knight Transportation Tenant: American Express Travel Related Services Landlord BrokerAGE: DTZ TENANT BrokerAGE: CBRE

4. Red Mountain Corporate Center, Phoenix 33,324 SF Landlord: 401 E. Washington St. Holdings LLC Tenant: Iasis Healthcare Corporation Landlord BrokerAGE: DTZ TENANT BrokerAGE: CBRE

1. 1311 E. Bell Rd., Phoenix 123KSF Tenant: Fry’s Food & Drug Store To be demolished

Steve Corney

Vicki Robinson

Andrew Medley

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2. Arcadis Fiesta, Phoenix 12,150 SF Landlord: 32nd Indian School Investors, LLC Tenant: Tuesday Morning Landlord BrokerAGE: De Rito Partners, Inc. TENANT BrokerAGE: Colliers International

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Retail/Leases

3. Arrowhead Marketplace, Glendale 11,795 SF Landlord: ACF Property Management Tenant: Devine Consign Landlord BrokerAGE: Strategic Retail Group

4. Thunderbird Square, Phoenix 11,400 SF Landlord: B.H. Chapman LLC Tenant: St. Vincent de Paul Landlord BrokerAGE: Rein & Grossoehme TENANT BrokerAGE: DTZ 5. 4601 E. Bell Rd., Phoenix 8,064 SF Landlord: West Valley Properties, Inc. Tenant: Leslie’s Swimming Pool Supplies Landlord BrokerAGE: Phoenix Commercial Advisors

Chris Corney

5. Chaparral Business Center VI, Scottsdale 17,350 SF Landlord: Salt River Community Development Company Tenant: Equiant Financial Services TENANT BrokerAGE: DTZ

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AFTER HOURS

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Wheelin’ and dealin’ Rob Martensen By MERYL FISHLER

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What type of racing do you do?

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olliers International Senior Vice President Rob Martensen has been involved in more than 600 transactions, including industrial sales, leasing, build-to-suits and land sales, but when he isn’t making a deal he is in the driver’s seat.

How did you get into off-road racing? I just grew up going to the races and got the opportunity to do it myself when I was in college and have been racing ever since. 20 | July-August 2015

I do desert racing mostly, which includes races like the Baja 1000. I have raced in 10 Baja 1000s and those are long-distance endurance races. I also race in short-course, off-road racing where there are cars all around you, flying over you and under you, flipping and crashing right in front of you. But, those races only last 14 laps, so 20 minutes and you are done. In the long races, you are in the truck for 10 to 12 hours at a time.

What is it like being in the driver’s seat? A lot of people who played competitive sports when they were young will understand. There is a feeling you get inside before you hit the field; it is a nervous energy kind of a feeling. Most people after they graduate from high school do not get to experience that feeling again. Sure, there are pockets of adrenaline if you are going after a big deal or something you get kind of excited about, but nothing like that feeling you got before you stepped on

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the field. Racing is one of the ways to get that feeling again and I think that feeling keeps you young.

Is racing similar to business? They are very similar, especially desert racing. You are out in the middle of the desert and if you have a problem with the truck or crash or something, you have to overcome that without anyone’s help. The biggest thing in desert racing is no matter what, you just always try to get to the finish. If your transmission breaks, you figure out how to get it fixed. If you get a flat tire, you change it. If you get stuck, you figure out how to get yourself out. You never give up. The Baja 1000 is like a real estate deal: you are excited at the beginning and then you start getting into it and you run into problems and work through those problems and when you get to the finish line, like when you close a deal, everyone is happy.

What is your best business advice? Have fun doing what you’re doing. I like to mix my business with my fun. It is a lot more work to throw a big event at a race, but if I get one deal out of this the whole event pays for itself. If I don’t get a deal out of it, I still had a great time and I have given people an experience they probably would never have had. Mix business with pleasure and just have fun!

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Legislative Update

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E M G I Growing ‘pay-ns’ B WorkingA withZ Valley cities to pay for growth ©A

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11 Capital Place and 12 Capital Place PHOTO BY MIKE MERTES, AZ BIG MEDIA

s the economic recovery continues in the area, so does the discussion of how to pay for growth. These past few months, we have engaged across the Valley on a variety of issues. Valley Partnership successfully supported the Avondale City Council’s “economic incentive fund” to assist with the development fees applicable to new Avondale projects. Last year, we provided comments to the city as it adopted its development fee update and were concerned that the fee maximum supportable fees would have a negative impact on development in Avondale. We are encouraged by the city’s latest action to spur development

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with the creation of the fund and hope that their effort brings some sustained momentum to the recent uptick in single family permit activity. Cheryl L. Lombard In Phoenix, President & CEO Valley Partnership Valley Partnership is working with the Arizona Multihousing Association in support of the flexibility options provided for in the staff-supported Walkable Urban Code Text Amendment. In particular, we want to retain the provisions that

enable context sensitivity in plan approval by allowing staff to reduce the code’s restrictions 15 percent on glazing and blank wall treatments and 20 percent to 25 percent for minimum/ maximum setbacks, lot coverage, landscaping and parking. We believe these provisions wisely anticipate the uniqueness of future projects and give staff the authority to adjust the code’s restrictiveness while keeping to the intent and spirit of the new code. The Phoenix City Council is anticipated to take up this item later this year. Finally, we have been working closely with City of Tempe staff and the City Council on its process of implementing a new development impact program and whether or not streetcar will be paid for by any impact fees. The Tempe City Council will hold a hearing on the proposed plan in June and then continue discussions on the final fees before their ultimate adoption in late 2015.

Love & Legislation

T Knowledge is power Improving educational outcomes is imperative

n early June, Gov. Doug Ducey announced a plan to pump about $2.2B in new funding for K-12 schools over a 10-year period from sales of state trust lands. Currently, the beneficiaries receive 2.5 percent from the Permanent Land Endowment Trust Fund of which 93 percent goes to schools. Tim Lawless The governor’s plan President would increase this NAIOP Arizona to 10 percent for the first five years and then 5 percent for the next five years. Because the changes contemplated are constitutional in nature, the governor’s proposal would need to be referred by the Arizona Legislature to the November 2016 ballot. This referral would likely take place early next year in general session but it is possible a special session could be called sooner. The plan would provide $300 more per student than the current per-pupil funding of about $3,400. Ducey’s main objective, which NAIOP-AZ is in total agreement, is to

not raise taxes in tough economic times when there is more than $5B “sitting on the sidelines” in the state trust land corpus that can be harnessed more to improve schools. The governor’s office was quick to point out that the current state trust land fund value has grown from $2.4B in 2009 to more than $4.8B last year and only $100M a year is being currently spun out from proceeds. The plan is to keep the same approximate fund balance of $5B at the end of the 10-year period. The governor is also working with education leaders to get more money into the classroom by reforming the school aid formulas. NAIOP-AZ is in agreement that we need to do a better job in getting every dollar spent on education more into the classroom, where it matters and empowering local principals. To be sure, much work lies ahead and there are a myriad of details to work out as the Governor is embarking on one of the most ambitious agendas in Arizona history. We all have a stake to improve lagging Arizona performance outcomes. NAIOP-AZ looks forward to engaging in this process at the State Legislature.

he members of BOMA Greater Phoenix are no strangers to the intense world of politics. We regularly deal with local, state and international policymakers directly and through our BOMA International colleagues and through our advocacy committee. We engage in education and advocacy to ensure our diverse on-theground experience influences understanding and shapes public policy. This year, we are enhancing the prominence of those efforts through the creation of a Legislator of the Beth Lewallen Year award program. President This award will bring Italicized Consulting together BOMA Greater Phoenix members to celebrate the legislator with exceptional willingness to learn from BOMA advocates and respond to the interests of commercial properties in Arizona. It will highlight the importance of commercial properties to Arizona’s economy and communities and serve as another strategic step toward public engagement in policy discussions. We are proud to serve as a resource in public policymaking and a willing partner for those working to make our state a better place to live and work. We look forward to honoring state leaders who recognized the value of our members’ insights this year. The award will be presented at BOMA’s October Membership Lunch and will provide BOMA members with the chance to interact with state leaders.

Legislative Update

KNOCK AT THE ‘DOR’

Government practices vex contractors

Be the buzz

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Entrepreneurial spirit is tangible reality an you hear it? There’s a buzz. Once intermittent, it is steady, loud and persistent. It’s the energy being created by those taking risks and making investments in community cores throughout the Valley. It’s the sound of entrepreneurial spirit becoming a tangible reality. It’s placemaking. Several years ago, the advent of Reinvent PHX created a foundation for public-private partnerships harnessing entrepreneurial spirit to enrich Phoenix’s urban core. By establishing a transit-oriented model for urban planning and development, the city could transform itself into a walkable, opportunity-rich community. Endeavors to advance infill, mixed use, adaptive reuse and pedestrianoriented projects along the light rail corridor involve time and planning solutions that promote industry collaboration and balance community, development and design quality. Leaders representing transitoriented projects in Denver and Salt Lake City ventured to Phoenix recently and shared how the development industry uses form-based codes with successful community results and economic benefits. Those cities are using the latest regulatory tools to help create compact, walkable, vibrant and sustainable communities. In fact, many cities across the country are rethinking the way land development is regulated to encourage more sustainable, urban development focused on the triple bottom line. There is broad consensus that old city zoning frameworks mirror

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E M G I B Deb Sydenham FAICP, executive director, ULI Arizona District Council

he Arizona Legislature has struggled with the implementation of the Transaction Privilege Tax in the construction industry for years. Arizona’s prime contracting category is the most appealed, litigated and audited section of our tax code. In 2013, the legislature attempted to repeal Arizona’s prime contracting category and replace it with a tax on material at the point-of-sale. This is not some radical, new idea. Instead, this is how almost every state in the Mark Minter union taxes the construction Executive director Arizona Builders’ Alliance industry. The legislature nearly had the law passed when the cities intervened. The Arizona League of Cities went ballistic at the legislature over the change. It asserted that high-growth cities would lose out to cities where wholesalers operated; thus, shifting taxes from cities such as Surprise to places like Phoenix. The legislature backed off the sweeping repeal of prime contracting and tried to have it both ways. It half-way repealed the prime contracting law and created a new system in which smaller remodeling and service work is treated as point-of-sale and larger remodeling and new construction is prime contracting. The details of this distinction are enough to make seasoned CPAs’ eyes cross in confusion. The ink was barely dry on this new law when the executive branch decided to re-interpret the legislature’s intent. The Department of Revenue (DOR) has decided that, under certain circumstances, who a contractor works for is more important than the nature of the work. In this case, the determination of whether a project is prime contracting or point-of-sale would hinge on whether the contractor is working for a tenant in the building or the actual owner of the building. The motive of the DOR seems to be less about interpreting the law and more about having a scenario where more taxes are collected. Go figure. Left to its own devices, the state government is capable of creating unlimited mischief. That’s why groups like the Arizona Builders Alliance serve a valuable purpose. The ABA is able to intervene in these cases through persuasion, lobbying and litigation. And, we can do that thanks to the support of great companies in the commercial construction industry. Thanks to those firms for their continued membership. ABA serves as the last backstop against bad government policy and that can’t happen without great members.

Kristen Busby AICP, director, ULI Arizona District Council

outdated operating systems that need to be revamped to promote modern placemaking. Cities with vibrant mixed use, mixed income urban cores are adopting new planning regulations to revitalize areas and respond to increased market demand for walkable urban living. This means improving project design, neighborhood character, culture and preserving special historic places for a multigenerational spectrum. Developers in cities with adopted form-based codes and transit systems are capturing the transformative potential of these systems and have clarity of what neighborhoods envision for their future. This leads to streamlined approval processes, additional investment, increased predictability, less financial risk and fewer regulatory barriers. Pockets of vibrant activity and thoughtful development exist in Phoenix. Connecting these pockets in a meaningful way, creating places and not just buildings, is the challenge. Fortunately, that buzz of entrepreneurial spirit is coalescing into tangible reality.

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COVER STORY Pilgrim Rest Baptist Church in Phoenix needed a large space but wanted to maintain an intimate feel. A modern, bright interior with several windows allows natural light to illuminate the sanctuary. PHOTO BY MIKE MERTES, AZ BIG MEDIA

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S eeple People

ven after designing 150 churches, the team at CCBG Architects takes time to understand the individuality of each project. For seven months, CCBG President Brian Cassidy met with an East Valley church to learn about its program, mission and teachings. He spent the meetings listening, asking questions and learning about the religious texts before he even put a pen to paper. CCBG has designed about 150 churches in eight states over the last three decades. Among the work are countless Christian and Catholic churches, a Sikh temple, a Jewish temple, and, most recently, a Mormon temple. Each campus design comes with its own nuances and intricacies, all of which are discussed in the meetings beforehand. Discussions cover everyday topics like parking considerations to specifics like baptismal font placement, decisions that depend on the individual church, leader and practices at the time. But baptismal font placement is only one of hundreds of decisions. Following tradition, some churches choose to place the font at the church’s entrance as a symbol of entering the church through the waters. Other churches prefer baptism to be part of the service, and, to avoid craning necks, place it at the front of the church. “Like anyone else, you just have to

The Valley's sacred builders, brokers, designers By LAURA BURNETT

learn the people, learn what’s important and come to respect them for what they view the world to be,” says Martin Ball, associate at CCBG. Before construction, most churches create committees representing various interests within the church — many of whom have little or no background in design, construction or real estate. They advise the architects on their faith, and the architects do their best to work their beliefs into a structure. Eventually, goals and plans are presented to congregations for approval, starting what often becomes a back and forth conversation about details.

Articulate Architecture Designed by CCBG, The Phoenix Temple of The Church of Jesus Christ of Latter-day Saints opened in late 2014. As the most articulated religious structure CCBG designed, it went through many rounds of discussions and decisions to meet the temple requirements of the LDS church. While respecting the privacy of the church, the architects still needed to learn about its practices, the other buildings and the teachings. With two temples under construction in Arizona during the design process, the architects were able to get a glimpse and sense of the aesthetic end goal. Theaters are also in CCBG’s body of

work, ushering them into designing a new kind of worship space. Learning the technology of a movie theater allowed the group to expand into contemporary churches, the spaces often with more technology visible than a movie theater itself. Many of these interiors have replaced pews with chairs, feature a flat floor, instead of sloping toward the stage. One of these churches, Parkway Christian Church in Surprise, designed by CCBG Owner and Principal Paul Ladensack, held the belief that humans were unfinished by God and wanted to reflect that in the design of the building. With speakers, lights and cords visible, their simple interior echoed that notion. Also designed by Ladensack, Pilgrim Rest Baptist Church in Phoenix needed a large space but wanted to maintain an intimate feel. A modern, bright interior with several windows allows natural light to illuminate the sanctuary. These windows necessitated some creativity within the design process. The congregation wasn’t thrilled about stained glass, seeing it as a filter that hinders their view of God but still wanted something with the feel of stained glass. Through research ,the architects found artwork from the denomination’s ties to Africa: angels that were drawn on huts throughout the African plains. An abstraction of those drawings became the art for the 27

COVER STORY

PAUL LADENSACK stands before an abstraction of angels that were drawn onto huts in Africa, the origin of the denomination's religious practices. He used these in place of stained glass windows. PHOTO BY MIKE MERTES, AZ BIG MEDIA

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Modern Spaces

While some churches benefit from being able to build a new structure, many instead relocate to an existing building, whether a standalone church building, a multi-use business facility or even a school. Those churches call Earle Shroyer. As a church real estate specialist, Shroyer created a market for himself, aiming to help those churches on the move. During the 28 years he’s been with Realty Executives, Shroyer has represented 395 churches in Arizona, ranging from a historical church on the national registry to churches in strip malls between Douglas and Yuma to Tucson and Flagstaff. Maintaining regular contact with more than 1,200 churches in Maricopa County alone, his place as the church broker in Arizona is pretty solidified. He remembers names of ministers, pastors and reverends off the top of his

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windows, and to steer clear of stained glass, they were created instead with different colors of glass. “We try to look creatively to find ways to make their liturgy have meaning for them,” Ladensack says.

head, a personal touch certainly not unnoticed by churches, many of whom have worked with him repeatedly. In his office, a pew stands next to his desk and several church figurines line the windowsill. He explains what he calls his ministry, as he serves churches to the best of his ability. He started selling churches by chance, when a friend asked him to sell his church. Though he only had experience in residential real

Venerated Vocab: Font – a receptacle for baptismal water Chancel – the space around the altar of a church; for use by clergy, choir and other officials. Arcade – a series of arches supported on piers or columns, often part of a covered passageway. Cruciform – in the shape of a cross Nave – where the congregation sits Transept – in a cruciform church, when viewed from above, the shorter arms that cross the long area of the church, crossing at the nave. Stations – series of 14 images that represent the stages of Christ’s passion and death, visited in sequence, for prayer or meditation.

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estate, Shroyer didn’t think it’d be too different and agreed. He sold the church and, a few weeks later, in response to phone calls coming in from other interested ministers who had seen his sign, he was knocking on doors of churches, asking ministers if they’d be interested in selling their churches. After all, he had a buyer.

Religious Sprawl Churches in the Valley are housed everywhere. Standalone buildings with steeples, charter school classrooms, between other businesses in strip malls. Congregations sometimes insist that relocation occurs within the same part of town, but others are able to see numbers sustain and even grow after a move across town. Once a congregation’s building reaches 80 percent capacity, it’s time to start looking at ways to expand, Shroyer says. As a savings account at a church is often designated for a specific purpose, such as a mission fund, churches generally don’t have large sums available to buy or build. Shroyer has seen buyers assuming mortgages from the seller and sellers taking second

COVER STORY EARL SHROYER: “I feel like (brokering churches is) a ministry. I’m just trying to be a servant and be of service to churches." PHOTO BY MIKE MERTES, AZ BIG MEDIA

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mortgages to help the buyer secure a loan. With the right timing and the right parties, Shroyer has traded churches for other churches or land, and land for churches. Meanwhile, all the other real estate factors apply: supply, demand and location. Without one single person within a church to provide funds, lenders look to the entire congregation instead. Should something go wrong with a loan, it’s the church board that is held accountable to repay the debt. Churches don’t have credit reports, pay property taxes, or file federal taxes, though some choose to do so. Because the banks can’t lend to a single person within the church, the loan carries a bit of a different risk, says Gregory Simpson of MidFirst Bank. Simpson lends to small churches, some with as few as 50 members. While businesses often only need to provide 10 percent for a down payment, churches typically need to provide 20 percent. That number moves up to 30 percent when a church buys a building that has been and will ever only be used as a church. Church communities aren’t always constant, another reason the loans carry somewhat more of a risk. A new leader, relocation, or simply the changing of messages can determine the success of a church and whether their numbers will grow, stay constant or decline. Shroyer is the only church real estate specialist he knows of. Some brokers have intermittently listed churches, but no one specializes like him. After 37 years in the industry, Shroyer’s thinking about the possibility of finding a replacement but realizes at this point that training someone new would just give him competition. “I feel like it’s a ministry. I’m just trying to be a servant and be of service to churches,” Shroyer says. Pointing out that the number of occupants is somewhat larger, Ladensack says he knows why the precision and detail need to be put into designing a church. “Churches are just like a home. It’s like a house, it has to be treated like a house: very special, very sacred,” he says.

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2015 MOST INFLUENTIAL

WOMEN IN COMMERCIAL

REAL ESTATE By Amanda Ventura

PHOTOS BY MIKE MERTES, AZ BIG MEDIA

he 12 women who made AZRE’s Most Influential Women in Commercial Real Estate list are an extraordinary bunch. While that seems implied in the recognition, it’s something that goes beyond their professional achievements. Many of these women have held minimum wage jobs, slowly working through the ranks to a C-suite. A few have known the struggles of being a single parent and what it’s like to be the only female voice in a boardroom. All of these women are active in their communities and industry organizations. And, all of them are changing the Arizona landscape one deal, drawing and deadline at a time.

MOST INFLUENTIAL

WOMEN

IN ARIZONA Kathy Bollinger

Executive vice president Banner University Medicine Division Years in the industry: 37

Kathy Bollinger began her career as a speechlanguage pathologist, where she says she learned the importance of communication. Really, though, after 37 years, she admits her most valued word is “yes.” Stretch after stretch of opportunity in the Banner system, Bollinger considers her highest achievements to include being the founding CEO of Banner Heart Hospital and, most recently, negotiating the acquisition of University of Arizona Health Network and affiliation with the University of Arizona. She was then asked to lead the new enterprise, which influences hundreds of millions of dollars in new construction. “We are creating history, one decision, one conversation at a time,” she says. Bollinger is responsible for oversight of Banner - University medical centers around the state in addition to Banner – University Medical Group. She is also responsible for operating efficiency and clinical excellence and oversight of the University of Arizona Medical Schools’ relationship with Banner Health. Lastly, she serves on the Banner Health executive team and has responsibility to integrate the services of Banner Health to ensure a wellcoordinated integrated care delivery system.

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What is a challenge you’ve faced and how did you overcome it?

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I have certainly had many professional challenges, but the one challenge that I felt most poorly equipped to handle was the day I received the diagnosis of cancer. My great boss provided me a context to move forward. He said, “Develop a plan and work the plan. Trust your care team and prioritize yourself. I’ll cover your work responsibilities.” I learned the most profound things about leadership through my own very personal patient experience.

What is your favorite part of your job? I’m highly-motivated to leave Banner Health stronger, kinder, better coordinated and more effective than I found it.

When you were a child, what did you want to be when you grew up? I wasn’t a child that had a plan. I enjoyed many things and have always been curious. I assumed I would do something amazing. It happened!

What is one little-known fact about you? I love Motown. 34 | July-August 2015

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Danielle Casey

Economic development director City of Scottsdale Years in the industry: 10

After a long absence, the Scottsdale Economic Development Department was revived in 2013 by Danielle Casey and her team. The department has since visited with more than 150 Scottsdale companies. The past president of the Arizona Association for Economic Development is responsible for executing the city’s initiatives related to new business attraction, business retention and expansion, small business and entrepreneurial support and revitalization.

What is the hardest professional or personal challenge you’ve faced and how did you overcome it?

In many city strategic planning efforts I have successfully completed, taking the time to truly build consensus is highly challenging but ultimately more rewarding. It requires patience, compromise and remembering that getting the product right in the end is better than getting it right now.

What do you consider your greatest professional accomplishment?

I am tremendously proud of my time as president of the Arizona Association for Economic Development in 2014-15. The association has never been stronger, all due to amazing volunteers and staff.

What is your most memorable deal or project and why?

Working with Banner Health to bring the first healthcare center to the City of Maricopa, because it served a huge public need in the community and was the result of years of commitment and partnership.

What is your favorite part of your job?

It feels amazing to meet someone who just got hired at a company that you had a hand in bringing into the community.

When you were a child, what did you want to be when you grew up and how did that aspiration affect your career? I wanted to work in a museum and be an anthropologist (with a huge crush on Indiana Jones). Surprisingly, the study of people, places and culture translates well to business development.

What is one little-known fact about you?

I am pretty handy and love old cars. My first car was a VW Bug I bought with babysitting money and rebuilt with my dad.

MOST INFLUENTIAL

WOMEN

IN ARIZONA

Cindy Cooke

Senior executive vice president Colliers International Years in the industry: 33+

Cindy Cooke leads one of the top multifamily brokerage teams in the country. Throughout her career, she has completed more than $2B in transaction volume. In 2007, she set the record for the largest apartment sale in Arizona history; the $427.5M, 5,178-unit, 12-property portfolio sale in Phoenix closed in 67 days. Early in her career, she started her own commercial brokerage and mortgage broker firm, where she was the sole proprietor for a decade. She now works on a team at Colliers International with her son, Brad.

Achieving the next level of success without comprising service to existing clients and family, seizing opportunities as they arise and building strong teams.

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What do you consider your greatest professional accomplishment? Still working on it.

What is your favorite part of your job?

Creating success for my clients.

When you were a child, what did you want to be when you grew up and how did that aspiration affect your career? I knew I wanted to be in the real estate business. I never deterred from that goal.

What is one little-known fact about you? I have an organic farm in North Carolina where we grow corn, wheat and soybeans.

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Karen Halpert

Senior vice president American Realty Capital Properties Years in the industry: 20+ Karen Halpert is a natural-born leader, though that doesn’t mean she hasn’t had a lot to learn along the way to heading up a property management group at one of the largest REITs in the country. She manages a team of 59 professionals responsible for the financial performance and operations of approximately 5,700 office, industrial and retail properties throughout the United States.

What is the hardest professional or personal challenge you’ve faced? It took me several years to really understand and define success for myself … I found that “having it all” and “doing it all” are not the same thing.

What is your greatest professional accomplishment? Balancing work and a home life while being a solid team player at both is always a challenge. Wanting to be home for my family forced me to become efficient in ways I didn’t think were possible. Improved organizational skills, in turn, allowed me to take on new professional challenges and opportunities as they were presented.

What is your most memorable deal or project? The first and only time I ventured away from property/asset management and into development was just prior to the great recession, overseeing office development and leasing at CityNorth.

What is your favorite part of your job? I enjoy interacting with my team, peers and other professionals inside and outside of my organization. I feel fortunate to be a part of the commercial real estate industry and surrounded by so many smart, hard-working and ethical individuals.

When you were a child, what did you want to be when you grew up and how did that aspiration affect your career? I had always planned to become a doctor but changed majors when I learned I would be footing the bill for my education. I switched to business, which led me to real estate, and I’ve never looked back.

What is one little-known fact about you? While in high school, I edited a couple of astronomy books written by my father.

MOST INFLUENTIAL

WOMEN

IN ARIZONA

Diane Reicher Jacobs, AIA Principal Holly Street Studio Architects Years in industry: 26

Diane Reicher Jacobs makes a living out of connecting the dots between project design, outcome and client aspiration. True to the role of an artist, the lines aren’t always straight, and that’s something she’s proud of. The architect, founding principal and community liason for Holly Street Studio Architects was born in New York City, raised in Puerto Rico, educated in Tucson and trained in Boston, as her bio reads. She founded Holly Street Studio in 1999, where her husband joined her three years later.

The hardest professional challenge is changing imbedded perceptions that design innovation is a luxury, when often it is the most important factor in a project’s overall success.

Growing an organization from the ground up that serves multiple communities, while teaching people from all walks of life about the power of creating place. I also enjoyed serving as 2014 AIA Arizona president.

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What is your most memorable deal or project?

Faye Gray Recreation Center. We began with a small budget and ambitious program to serve 100 kids daily. With the neighborhood’s input, we leveraged tight resources and built a point of pride.

What is your favorite part of your job? Listening to people’s stories and using that input to create spaces that surprise and inspire, as well as mentoring the next generation of architects.

When you were a child, what did you want to be when you grew up and how did that aspiration affect your career? I wanted to be an artist, teacher, counselor, political leader and ballet dancer. Seems four of five came true — architects wear many hats.

What is one little-known fact about you? I’m a certified SCUBA diver. Love the water. Love exploration. 38 | July-August 2015

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Alison Melnychenko Vice president, marketing DTZ Years in the industry: 30

Alison Melnychenko isn’t the type of person to put herself in the spotlight, though she has made a career of putting others in it. “I wear many hats, but primarily I work on business development, marketing campaigns and public relations efforts for DTZ and our clients,” Melnychenko says. She has handled multiple re-brandings of her firm, often works across multiple offices and runs an in-house printing press for a brokerage firm of 90 people.

How long have you been in the industry? My first job after graduating from ASU was with a Phoenix advertising and public relations agency, where I worked primarily on commercial and residential real estate accounts, so, technically, I have been working in the industry for 30 years. However, I grew up with real estate being part of my life since my father was a developer and real estate agent. I remember helping with open houses and events for his properties when I was still in high school.

What is the hardest professional or personal challenge you’ve faced and how did you overcome it? Keeping relevant and knowledgeable in a constantly changing marketing and PR field. When I started, billboards were hand-painted and press releases sent via the post office. I’m a quick study and I know when to ask for help.

When you were a child, what did you want to be when you grew up and how did that aspiration affect your career? I wanted to be a teacher, because I was always helping my friends write their papers for school. I still write papers, but, instead of a classroom of students, I work with an office full of real estate agents.

What is one little-known fact about you? At the age of 15, I was a “kringle girl” at O&H Danish Bakery, which was the only bakery outside of Denmark at that time that made Danish kringle.

MOST INFLUENTIAL

WOMEN

IN ARIZONA Jody Pokorski

Partner and real estate practice leader Snell & Wilmer Years in the industry: 30 Jody Pokorski has been behind some of the biggest deals in the Valley. She represented Arizona State University in the State Farm headquarters in Tempe deal that has become the largest office development in the state. A few years ago, her team handled the sale-lease for the University of Phoenix, which became the largest transaction of the year that wasn’t handled by the Arizona State Land Department. Over the last 30 years, she has practiced in the areas of real estate transactions, finance and regulatory matters. Her career accomplishments also include representing a $220M state/federal highway extension and widening project that utilized a public-private partnership structure and the redevelopment of a 4,000-acre former Air Force base into a mixed-use community. One of Pokorski’s colleagues said many of the biggest projects in the Valley wouldn’t be here if not for her.

As a young lawyer, negotiating deals against more senior lawyers was intimidating, but I tried to observe how others approached the process and learn something from each experience.

What do you consider your greatest professional accomplishment?

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The ability to look out the window and see so many projects that I have been a part of bringing to fruition.

What is your most memorable deal or project and why?

I have worked on many great projects, but it has been gratifying being a part of several complex deals for ASU, where I am a proud alumni and adjunct professor.

What is your favorite part of your job?

I love finding win-win solutions on challenging deals so that both parties walk away happy.

When you were a child, what did you want to be when you grew up and how did that aspiration affect your career? My undergraduate degree was in psychology, and I often think back to lessons learned in my social and behavioral psych classes.

What is one little-known fact about you?

My first job was at Harkins Theatres; I started working concessions and wound up as a manager. 4 0 | July-August 2015

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Barbi Reuter

COO Cushman & Wakefield | PICOR Years in the industry: 30 Barbi Reuter has been with Cushman & Wakefield | PICOR since 1985, when the firm opened. At the time, she was a student at the University of Arizona studying regional development. Now, she is responsible for operations, research, finance, marketing and social media for the Tucson-based company.

What is the hardest professional or personal challenge you’ve faced and how did you overcome it? About five years ago, I failed to define and articulate my role and value to my partners, after partially offramping and transitioning from a division leadership role to a company one. To overcome, I owned my shortcomings, worked with coaches and mentors, and battled back with actions to earn trust.

What do you consider your greatest professional accomplishment? Personally, being awarded the BOMA International President’s Award for advancing CRE industry education was a true highlight. More recently, positioning our relatively-small firm in a tertiary market as industry thought leaders has been very rewarding.

What is your most memorable deal or project and why? When I was in college typing leases for our company founder on Saturdays, he held up a commission check that was likely triple my single-mother annual salary. That got my attention. Determination not to live in poverty may have launched my interest in CRE, but the memorable deals are the firsts: The first receivership for a national bank, the first high-rise management account we landed, etc.

What is your favorite part of your job? Making connections that advance someone’s success – whether a client, staff member or professional colleague through CREW Network or other CRE industry affiliations.

When you were a child, what did you want to be when you grew up and how did that aspiration affect your career? Among my career aspirations were geologist, hair stylist, pilot, architect and judge. Judge may have come closest to my many years spent in commercial property management.

What is one little-known fact about you? I’ve had (fleeting) onstage moments with Barry Manilow and Bobby McFerrin and once joined a group that sang in Carnegie Hall.

MOST INFLUENTIAL

WOMEN

IN ARIZONA

Maria Salenger, AIA Senior associate, Jones Studio; Co-founder, partner, Colab Studio Years in the industry: 21

In 2011, architect Maria Salenger and her husband, a fellow architect, were featured in the Wall Street Journal for their unconventional abode hidden in the middle of a 1950s Phoenix neighborhood. Salenger works for Jones Studio, which recently completed the Mariposa Land Port of Entry and the Mesa Community College Performing Arts Center, and is the co-founder of Colab Studio with her husband. The awardwinning architect serves the design studios and their clients in visioning sessions, research and project development.

What is the hardest professional or personal challenge you’ve faced and how did you overcome it? Two weeks with my toddler in the hospital; along with receiving support from family and friends, we planned small pleasures like a picnic in the courtyard to remind us of the outdoors.

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Co-chairing the American Institute of Architects National Women’s Leadership Summit in Phoenix. My colleagues and I welcomed extraordinary thinkers and creators from across North America to our city.

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What is your most memorable deal or project and why?

Designing the Arizona 911 Memorial at the state capital with my two partners. We were personally thanked by victims' family members for honoring their loved ones in this way.

What is your favorite part of your job? Looking for new perspectives from which to solve problems.

When you were a child, what did you want to be when you grew up and how did that aspiration affect your career? Dentist, chef, graphic designer, architect, artist – in that order. I looked for a path with richness and diverse opportunities.

What is one little-known fact about you? I like building codes!

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Catherine Thuringer Principal Trammell Crow Company Years in the industry: 30

At the beginning of 2014, Cathy Thuringer was promoted to principal at Trammell Crow Company, where she has oversight of its industrial development in Arizona. This is no small feat of square footage. Trammell Crow recently brought the largest speculative development to the Valley with the 791KSF Coldwater Depot Logistics Center.

What is the hardest professional or personal challenge you’ve faced and how did you overcome it? My first ground-up development. I learned very quickly how important it is to surround oneself with the right talent in order to succeed.

What do you consider your greatest professional accomplishment?

Achieving the rank of principal and becoming an active member of Trammell Crow Company’s leadership team.

What is your most memorable deal or project and why?

Coldwater Depot Logistics Center – Phase 1 was the largest and most successful spec industrial project for our team. It was voted NAIOP’s 2013 Speculative Industrial Project of the Year.

What is your favorite part of your job?

Working with exceptionally talented people to transform a vision into reality.

When you were a child, what did you want to be when you grew up and how did that aspiration affect your career? A travel agent—how did I do?

What is one little-known fact about you? I am an avid wildlife/nature photographer.

MOST INFLUENTIAL

WOMEN

IN ARIZONA Alisa M. Timm

Director of management services, Desert West Region Lincoln Property Company Years in the industry: 25 Real estate is in Alisa Timm’s blood. Maybe that’s why she treats all of her clients and coworkers like family. “Singling out a (favorite) deal is difficult because I would say the most memorable ones are the clients who keep coming back because you have grown the relationship with them,” she says. From instigating team outings to TopGolf or company walks for autism, Timm works to keep her team members in touch with the community. Timm is responsible for the development and delivery of property management services for Arizona, Nevada, Utah and New Mexico.

Most recently, I have been responsible for leadership in our region of a portfolio that has grown more than 40 percent with more than 115 percent employee growth in just two years. The challenge has been to provide vision with integrity while keeping the focus on bottom line results for our clients and customers. The results speak for themselves.

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I opened an office for a major broker/property management company starting literally from a desk and a chair to several million square feet of properties under management. Change was constant and not always easy, but the opportunity was amazing and worth the blood, sweat and tears.

When you were a child, what did you want to be when you grew up and how did that aspiration affect your career?

Real estate is in my blood. My dad used to drive me around buildings and when my kids were young they used to ask if we had to go around the buildings before we went in! Two of three think they are going to be in real estate.

What is one little-known fact about you?

I have become a golf fanatic. I am terrible, but focused.

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Vicki Williams

Senior vice president, commercial real estate Alliance Bank of Arizona Years in the industry: 25+ Since 2004, Vicki Williams has been her company’s go-to person for commercial real estate at the largest bank headquartered in Arizona. Williams’ banking career began in New York for the Chase Manhattan Bank. She then joined a community bank in Phoenix, which ultimately, through mergers and acquisitions, became Wells Fargo. For the last two decades, she has specialized in commercial lending. Alliance Bank of Arizona has financed Building 3 at SkySong and the acquisition of MetroCenter by the Carlyle Development Group. Past president, Williams sits on the board of AZCREW, is a member of ULI and the Arizona Commercial Mortgage Bankers Association.

What is the hardest professional or personal challenge you’ve faced and how did you overcome it? Being a manager and a single mother. I overcame it with the support of my team and my employer at the time, Norwest Bank.

What do you consider your greatest professional accomplishment? Helping to build and grow Alliance Bank’s Phoenix commercial real estate lending team to become a dominant lender in the market and an important part of the bank’s success.

What is your most memorable deal or project? Doing work on a portfolio of loans to companies in Mexico after the less-developed-country (LDC) debt crisis and peso devaluation in the 1980s.

What is your favorite part of your job? Working for a bank whose management understands real estate and is growth oriented and values my input.

When you were a child, what did you want to be when you grew up and how did that aspiration affect your career? I had no idea what I wanted to be – or maybe I have just forgotten.

What is one little known fact about you? I enjoy trout fishing in the White Mountains, specifically stream fishing. 45

SUN CORRIDOR, INC.

CANDID CAMERA Joe Snell captures the big picture of Tucson

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sually when people are trying to get inspired, they look up. That may not be the case concerning Tucson and its surrounding areas in the near future. Joe Snell, president and CEO of Tucson Regional Economic Opportunities, says Southern Arizona is celebrating its best year since 2007. With news of HomeGoods, Comcast and LCMS moving into or expanding in Tucson, job numbers and capital investment are soaring. A win for Tucson, is a win for Phoenix, he adds. Snell wants Arizona’s economic developers to think bigger, and that’s why the organization announced in June it changed its name to Sun Corridor, Inc., which has 56 board members who represent 85 percent of all employers south of Phoenix.

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Let’s talk about some of these good announcements coming out of Tucson. There’s no doubt the recession hit Arizona hard. Southern Arizona was hit especially hard. It has been a rough run of it for six or seven years. We’ve been more aggressive into our operations than we were pre-recession. In every measure, we’ve had the best year since going into the recession. We ended up announcing, between major expansions or relocations, 14 major projects. … We did add two more foreign trade zone magnet sites to Pinal County… We opened our footprint by offering

46 | July-August 2015

PHOTO BY Brent Mathis

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them two FTZ sites. … We’re actively selling Pinal County. It’s a natural segue to Sun Corridor. The name change, more than anything, is just catching up to the reality of what’s happening on the ground.

What is the significance of Sun Corridor? One of the mantras we have with that is we just need one market. Sun Corridor is loosely a term for all these cities (in Southern Arizona). … We are the biggest bi-national economic development group in the nation, which means we’re working both sides of the border. Mexico is an integral part of our future economy. We plan to have a strong presence there. We’re one market divided by a border. We want people to look at Southern Arizona and Northern Mexico as one market.

What is Sun Corridor’s statement about the difference it will make? We want to shape and maximize economic opportunities for Arizona. I think Southern Arizona will be an economic convergence center for the U.S., Mexico and Canada.

Last year, when we talked, you mentioned creative fundraising initiatives. Where is Sun Corridor at with these? The vast majority of our funding is private. Funding is not an issue for us. We’re doing very well. We’re providing a strong vision. We’re healthy with good reserves. (Paying for infrastructure) is still an issue for us. We’ve worked closely with the rest of the business community and local government to support a bond issue that could put $800M back into the system. I have a 56-member board that voted unanimously on this. If we don’t invest in our own roads and economic development initiatives, who will? … What I’m saying is that maybe 15 years ago, we would have looked at the federal government to underwrite us. Now, we’re taking control of our destiny.

What is one of Tucson’s most understated values? I think Tucson is well-known but not well understood. There are a lot of values here that are not well-understood. The talent pool is deep and rich at all levels. We have great high-tech and craftsmen. Our strategic location is just super. It’s not just Tucson. It’s Southern Arizona. Big markets in California and growing in Mexico…they’re going to be an economic superpower quickly.

How has the Banner-University Health Network merger affected SoutherN Arizona? I was extremely supportive of the Banner partnership. One problem we have in Arizona is we think in pockets. We think too small. We’re one market. When I was in New York, Phoenix is five times the size of Tucson but no one has heard of it. They see L.A., Chicago and everything else in between. I came out of Denver doing this. In Southern Arizona, we embrace regionality. Maybe UA brings something no one else does. Let’s work as one market. Banner Health’s work does point to one market. I love their slogan: No boundaries. We embrace that. 47

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International Interior Design Association

The IIDA Southwest PRIDE Awards The IIDA Southwest PRIDE Awards were presented on April 23 at Hotel Palomar in Phoenix. I P Q

Project Awards

Commercial, <10KSF - Design Excellence

A Corgan Corgan Phoenix Office

Commercial, <10KSF - Award of Merit

B SmithGroupJJR GoDaddy Scottsdale

Industry Awards Partner of the Year

Thomas Reprographics

Industry Appreciation Jennifer Kittoe Avalon Collection

Outstanding Service Casey Potash KI & Pallas Textiles

Lifetime Achievement Kelly Bauer Richard+Bauer

Commercial, 10KSF-25KSF - Award of Merit

C Davis Mobisquad

Commercial, >25k SF - Design Excellence

D Gould Evans + Canary ValueAct Capital

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Commercial, >25k SF - Award of Merit

E SmithGroupJJR GoDaddy Tempe

Commercial, >25k SF - Award of Merit

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F Corgan

WageWorks

Creativity on a Budget - Award of Merit

G Gensler Confidential Contact Center

Education - Award of Merit

H SmithGroupJJR Central Arizona College, Maricopa Campus

Hospitality + Retail + Restaurant - Design Excellence

I Gensler Sun Devil Marketplace

Hospitality + Retail + Restaurant - Award of Merit

J FFKR Architects Talking Stick Resort Palo Verde Lounge

50 | March-April 2015

On the Boards - Award of Merit K Gensler

LBA 2500 Union Hills Paseo

Outstanding Team on a Design Project - Design Excellence

O Krause Dickinson Wright

Public Facility - Award of Merit

L Davis Alliance Bank

Best of Show - Design Excellence

P Gensler Sun Devil Marketplace

Single Space - Award of Merit

M Gensler Rose Law Group Lobby

Peopleâ&#x20AC;&#x2122;s Choice Award

Q Gensler Sun Devil Marketplace

Healthcare - Award of Merit

N SmithGroupJJR Mountain Park Health Center

IIDA

WHAT’S IN A NAME?

Commercial interior designers seek legal regulation

By Amanda Ventura

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here is more to an interior designer’s work than what meets the eye. A coalition of designers have been trying to get Arizona lawmakers to recognize this since 2011, when its most recent draft to include interior designers in Arizona Revised Statutes failed to pass. Their edits would have made Arizona the 31st state to recognize and regulate interior designers’ certifications and training. It is a “continual battle to show how hiring a qualified interior designer is important” and differs from hiring a decorator, says Jill Gibney, interior designer at McCarthy Nordburg. An interior decorator can rearrange an office’s furniture, re-imagine a break room’s aesthetic or fill blank space with trendy statues or a fountain. A commercial interior designer, by definition, can do all of the same things, as well as make structural changes due to formal training in the topic. This, however, is not the case in Arizona. In fact, interior designers — even those who are formally trained — must have all their structural work signed off by a certified architect. That’s why many design firms employ people like Michelle Rutowski, of Dick & Frische Design Group, a certified architect who says 85 percent of her job is related to architecture.

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In many states, commercial interior designers must take the NCIDQ, short for National Council for Interior Design Qualification. The eligibility for this qualification is extensive and the exam price tag is around $1,000. Despite Arizona law, many commercial interior designers still pursue the certification. “It is important for designers to take the exam as soon as they are eligible as a commitment to the profession,” Gibney says. The American Institute of Architects openly opposes practice and title regulations being extended to interior designers. "In the public interest, the AIA holds that only architects and engineers licensed through examination possess the necessary education, training and experience to protect the health, safety and welfare of the public in the built environment," according to AIA's public policies and position statements. "Other individuals may possess useful skills in designing within the built environment, but fragmentation of responsible control of the building design process endangers and misleads the public as to respective areas of competence and expertise. The AIA opposes practice or title regulation of individuals or groups other than architects and engineers for the design of buildings." When AIA Arizona was contacted for comment, it deferred to the national

organization's policies. Nevada and New Mexico, both part of IIDA Southwest, have practice and title laws, respectively, that regulate interior design on a state level. “Nevada sets the bar when it comes to the interior design profession,” says Peggy Favour, principal of Las Vegas’ SMPC Architects and member of IIDA. Nevada’s registered interior designers can sign and seal documents for permitting per guidelines of the Nevada 2009 Blue Book. On the other side of Arizona, in New Mexico, the title Licensed Interior Designer identifies a professional who completes a formal education, has legitimate work experience and has demonstrated competency on the NCIDQ examination. An annual license renewal process confirms professional conduct and continuing education compliance, explains Favour. “It is surprising that the State of Arizona, with three institutions that offer professional level interior design programs accredited by CIDA, would not have professional state recognition to support the professional career paths of their graduates,” says Favour. It’s an issue of keeping design students in the state, IIDA Southwest President Stephanie Fanger says. “Professionals designing commercial use spaces need to have advanced knowledge of the local building codes and require specific experience to plan space and create designs that comply with these codes,” says Chris Dos Santos of Gensler in Las Vegas. “Clarity in knowing which people practicing interior design can provide this service is critical to the industry and life safety.” DFDG’s Rutowski is the vice president of advocacy for IIDA Southwest, where she intends to re-assemble a coalition to bring this issue to the legislature. Until then, she encourages certified designers to make clients aware of their recognition by the industry, to show them there’s more than meets the eye.

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IIDA CHEYNE BROWN AND STEPHANIE FANGER PHOTO BY MIKE MERTES, AZ BIG MEDIA

professional skills of public speaking, conducting meetings and managing schedules and budgets long before I had those opportunities on the job. When the time came for me to present to a client or to manage a project schedule, I had already developed the experience and confidence to be successful. SF: I joined IIDA during my freshman year at ASU to network with the upperclassmen. I continued to be involved with IIDA after graduating college for the leadership opportunities, something I would not get to directly experience in an entry level interior design position.

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2 RIPPLES of TALENT IA D E M T G I B Z A © Commercial design organization to fill talent gap in Arizona By Amanda Ventura

he International Interior Design Association is the only worldwide design organization that solely focuses on commercial work. It has more than 13,000 members in 33 chapters around the globe, though IIDA Southwest Chapter President Stephanie Fanger and President-Elect Cheyne Brown have their eye on retaining interior design talent instate through mentorship programs and raising awareness among the business community of an interior design talent bleed out.

Stephanie, you’ve said nearly half of your students at ASU leave Arizona to find design jobs out of state. Where are they going and why aren’t they staying? Stephanie Fanger: As a faculty

associate at ASU, I see about half of my students leave after graduation. The students that leave Arizona to pursue employment in other states are looking for diverse jobs that just are not offered in Arizona. I have had students describe their passion for interior design within the realms of yachts and boating, aviation, tropical resorts and film sets.

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Why is it significant that the students are leaving, and how can the industry increase its retention rate of young designers? SF: As the economy has improved in recent years, there has been quite a demand for student interns. This past spring semester alone, there was more internship requests from firms than students able to take on the role. The Arizona community can retain young designers by aiding in our mentorship program, a partnership between our professional members and student members. This past year we had more than 20 partnership pairings.

Why did you join IIDA — and what keeps you a member? Cheyne Brown: I joined IIDA as college

student in order to learn more about the industry and meet practicing interior designers. My IIDA affiliation helped me successfully relocate from Phoenix to Los Angeles, where I continued my involvement as a committee member and eventually a board member. Through IIDA, I quickly built a robust professional network and was able to build

Phoenix is one of multiple City Centers in IIDA Southwest. How do the different centers interact year-round? CB: The City Centers of Albuquerque, Las Vegas, Phoenix and Tucson are all part of the Southwest Chapter and are governed by the chapter board of directors. Often more event focused, the City Centers discuss their calendars and exchange ideas on a monthly conference call, helping them elevate the quality of their individual programs. Twice a year, the entire board, including representatives from each city, come together at a board retreat to determine the future and next steps of the chapter.

What is a major goal for the organization going into 2015-16? CB: As incoming president, one of my

major goals is to increase our student outreach. I would like to build on the success of the Arizona State University Campus Center and bring similar programs like NCIDQ information sessions, design firm tours and mentorship programs to additional campuses throughout the region.

Membership The IIDA Southwest Chapter has 309 members in the entire chapter, 237 of these members are in Arizona and 222 of those are specifically in Metro Phoenix.

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AZ CREW

LIVING 5 1 SOCIAL 0 2 A I D E M G I B Promoting one’s individual and professional brand to full potential By AMANDA VENTURA

58 | July-August 2015

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Krystal Dill

Barbi Reuter

Christie Veldhuizen

emember when Sheryl Sandberg’s Most employers have made it a policy Face time versus Facebook “Lean In” was published in 2013? to familiarize employees with their AZCREW members seem to be There were many tips for advancing branding — what the company does and immune to the status quo. Members one's career, but one of the top five, as is working to project to potential clients. of AZCREW say a perk of joining the selected by Forbes, is to form a lean-in However, in a day and age where organization is its in-person networking. circle with one of the book’s online “circle some networking is moving to social When Lincoln Property Company’s kits.” In essence, it encouraged finding media outlets, it begs the question Krystal Dill was accepted to AZCREW a group of other professional women of just how important it is to brand four years ago, she joined the PR/ with whom to share best practices and yourself as an individual? Outreach committee. It allowed her professional stories. In 2012, CREW Network surveyed to promote herself with a microcosm For women who work in commercial 234 members and 16 executive that could be applied to her business real estate in the Phoenix Metro, level women using the Leadership environment and the larger industry. that group already exists as Arizona Potential Indicator assessment tool by “Being involved in this reputable Commercial Real Estate Women, more MySkillsProfile. The objective was to find organization can provide countless direct often referred to as AZCREW. the leadership strengths and deficiencies and indirect results of self-promotion in From its monthly luncheons to its of its members. On average, members combination with growing your network Black and White Affair, golf tournament ranked highest in “monitoring quality” of high-quality colleagues,” she says. and mentorship programming, AZCREW and “focusing on business.” Its lowest Dill says in-person networking encourages its male and female members ranked categories were “taking risk” and comprises about 80 percent of all to build a community within the “relating and networking.” professional connections, while digital industry that’s welcoming and fosters a Strengthening its membership’s skills networking is the remaining 20 percent. 12 gender-neutral equality. in the latter categories are a focus of the AZCREW President-elect Christie PEW RESEARCH Decades before the dawn of social organization’s recent whiteCENTER papers. Veldhuizen, vice president of operations at media, a professional network could only be built within the workplace and through networking groups. Twitter, Instagram, Pinterest AZCREW is one of the first such Social media matrix groups thatLinkedIn catered to all women in the and than there were % of users of each particular site who use another particular site (e.g., 34% industry regardless of trade. AZCREW, last year. Similarly, there are of Pinterest users also use Twitter) which is celebrating its 30th year as more LinkedIn users who use part of the global CREW Network, Use Use Use Use Use hostsTwitter, annual andInstagram monthly events Twitter Instagram Pinterest LinkedIn Facebook andwhere Pinterest members can network in a professional % of Twitter 58% 42% 47% 91% than there were in 2013. Finally, users who … environment. Thethere landscape networking and users % of Instagram are of more Pinterest 52% 47% 38% 94% users who … professional awareness is changing with on Instagram and LinkedIn than the increased adoption of social media, % of Pinterest 34% 43% 40% 88% users who … and members AZCREW are lookinglikely in 2013.ofThese increases more seriously at how this can integrate % of LinkedIn 39% 35% 40% 86% reflectpromotion. the overall trend toward users who … into existing % of Facebook multiple-site use described 29% 34% 34% 33% The greater good users who … above. Without visiting your company’s Pew Research Center’s Internet Project September Combined Omnibus Survey, September website, can you recite its mission 11-14 & September 18-21, 2014. statement or slogan? Can you pull its PEW RESEARCH CENTER logo’sTurning shades outto of sites a colorother wheel?than How aboutFacebook, sharing someahistory behind your significant level of company’s origins?

overlap exists between Instagram and Twitter users—58% of Twitter users also use Instagram, and 52% of Instagram users also use Twitter. Among non-Facebook sites, this is the highest rate of 59 “reciprocity” between user groups measured.

AZCREW

How To Master LinkedIn Crystal Washington, owner of CWM Enterprises, is a social media guru. She has helped large companies such as Google and Microsoft harness the utility of the Internet’s networking tools and find freedom from any hesitation professionals have about promoting themselves on a limitless stage. Here are her top tips for women in commercial real estate.

Crystal Washington

1. Use LinkedIn. LinkedIn is more male dominated, but it’s the one social network that is 100-percent business. 2. Use keywords. Keywords are not just for website SEO. LinkedIn runs off keywords, so users should put extra thought into the terms that appear on a profile. Ask: Are these words I expect my clients to use when searching for my services?

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4. Use groups. Groups consist of a target market. It helps profiles wind up higher in a search queue when they have groups in common. 5. Use good photos. Don’t use your daughter’s “my first Barbie camera” picture of you or a cute picture of a Cancun vacation. Invest in professional head shots. These can be creative. You don’t want to look theme-y or like you’re at a magazine shoot, but using a head shot can be enough to catch someone’s eye. Also, use current head shots. If you’ve gained or lost 50 pounds, go ahead and update your photo.

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DTZ, says the split is more 90-10 for her. “Personally, I prefer in-person networking…but I do like that through LinkedIn I am able to stay connected with people I am introduced to,” she says. It’s more important, she says, for her company to have online promotion. “For DTZ, online promotion through our company website and social media is very important and something we continue to expand,” Veldhuizen says. “However, I understand that with company success there are more opportunities for individual success, so promoting one is not mutually exclusive to promoting the other.”

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Dill, who handles marketing for LPC says there is room for improvement. “I greatly support social media outlets as a marketing source, communicator to the masses and promotional tool for professional purposes,” Dill says. “Personally, I have not yet utilized them to their fullest. While the outlets serve as a great supplement for networking and promotions, the in-person touches and interactions will always be essential.”

Tuned in, Linked up According to Pew Research Center’s Internet Project Survey in 2014, half of all LinkedIn users have college

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3. Use contacts. The second-most popular way to find people on LinkedIn is through similar connections. A profile will appear higher in searches if there is some degree of connection between the searcher and your profile.

educations. This is the first time such information has been reported. More than half of all adults who use the internet are active users of two or more social networks. While Facebook is the most popular of the social media sites, Twitter and LinkedIn have seen jumps in usage by adults year over year since 2012. In fact, according to the study, LinkedIn is the second-most used social media network after Facebook. “The thought leadership in CRE on social media seems male dominated, so room exists for female voices in the conversation,” says Barbi Reuter, COO of Cushman & Wakefield | PICOR, and Tucson CREW and CREW National board member. “I’m surprised not to see more, as we are typically connectors, and engagement is key to success in the social sphere. I do see a higher presence for women in LinkedIn than Twitter. Women’s voices are more predominant in Twitter in the retail and marketing spheres, than in finance and pure brokerage.” It may just be about getting it right. “Some users abuse social media by utilizing the outlets to post content that is not ‘public worthy,’” says Dill. “Unfortunately, these spammers affect the overall perception of social media in today’s culture. This has led to misunderstandings that using social media is ego-driven and selfish. Social media should be used to be promote confidence and personal publication via meaningful content. “One of the best aspects of this industry are the incredible women mentors at our fingertips,” Dill says. “Their counsel and expertise has been invaluable as I’ve navigated my way through my career thus far. With their guidance, I have successfully asked for raises and/or modifications for my position. Social media has served as the communication tool to inform the market of my promotion and/or title change(s). These days, I believe this is how most of our network is informed. It creates community and a sense of place among the industry. I should have done those things sooner!”

The CREW Network A majority of members have more than 11 years of experience

More than 70 percent are presidents, CEOs, partners or senior managers of their companies

72 percent have given

a referral from another member in the last year

54 percent reported

receiving a referral from another member in the last year

60 percent have an

annual income of more than $100,000

Who is AZCREW? Membership’s Professions (percentage) ACQUISITIONS / DISPOSITIONS

BUSINESS DEVELOPMENT

2.6

15.7

ADMINISTRATION

COMMERCIAL LENDING

MARKETING & PR, CRE

AFFILIATE - CONSTRUCTION SUBCONTRACTING

CONSTRUCTION

OTHER

AFFILIATE - PROPERTY MAINTENANCE

CONSULTING, COMMERCIAL REAL ESTATE

PROGRAM / PROJECT MANAGEMENT

ARCHITECTURE

CORPORATE REAL ESTATE

PROPERTY MANAGEMENT

ASSET MANAGEMENT

FINANCE

REAL ESTATE DEVELOPMENT

BROKERAGE

INTERIOR DESIGN/SPACE PLANNING

TITLE/ESCROW

3.47 <1

1.74 8.7 6

14.8

5.2 5.2

2.29 5.2 8.7 <1

LAW

2.6 <1

1.74 9.6

1.74 <1

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lot can happen in 15 minutes. Advice can be offered. New appointments saved. Minds can be changed. Coffee can be retrieved between meetings. For many executives, time is priceless. Time is how many members of AZCREW “pay it forward” these days, through mentorship programs and networking functions. However, AZCREW’s national parent, CREW Network, has been, quite literally, paying it forward since 1998.

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Awareness and donations are rising among CREW chapters, according to the 2014 CREW Foundation annual report, which illustrated a recordbreaking year. “We’re very proud of our foundation,” says Maureen Anders, the founder of CREW Foundation and its chair in 2004. She is part of a group known as the Women of Vision. Each member has personally given $10,000 to CREW Foundation. Anders has given four times the minimum entry.

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“We regrettably find women don’t hear about careers in commercial real estate unless their families or someone they knew (worked in the industry),” says Anders. Current CREW Foundation President Gail Ayers is also a "woman of vision" and says the scholarship selection committee has nearly 40 chapters represented. Many of the chapters are also donating more to the cause of funding young women’s pursuit of a commercial real estate education. “The foundation’s role is to ‘pay it forward’ and encourage more women to get involved in the commercial real estate industry,” says Christie Veldhuizen, president-elect and Foundation Champion for AZCREW, and designated broker of operations at DTZ. AZCREW’s chapter goal for 2015 is to get 50 percent of its membership to donate to CREW Foundation, she says. AZCREW is a silver supporter, meaning it donated between $5,000 and $9,999.

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AZCREW

“Look at what we can accomplish when we put 10,000 women’s focus in one direction.”

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– Gail Ayers

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Samantha Pinkal

Gail Ayers

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In addition to scholarship opportunities, Ayers says, members sometimes will host CREW Career workshops for young women, where they can learn through a project development simulation about the different roles available in commercial real estate. You can never make connections too quickly, Anders adds. “I’ve been a (CREW) member since 1988 and would continue forever,” she says. “My success was the fact that I was so well-connected. Anytime my company needed anything in the country (I could call on CREW). Law

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enabled me, but mostly CREW.” Samantha Pinkal, senior predevelopment and marketing manager for Weitz, has been a member of AZCREW for two years and chairs the programs committee. She says her career was greatly influenced by female mentors in college, including Jokake’s Rozlyn Lipsey and Caliente Construction’s Lorraine Bergman. “(It’s valuable) for women, especially young women looking at their career options, to see role models,” says Pinkal, who mentors Arizona State University students and interns at Weitz. Pinkal, who graduated with a degree in construction management, began her career at Weitz as a project engineer. She said it was through the mentorship of project managers that she realized she wanted to shift into business development. “They helped me do a lot of personal development coming out of college,” she says. “They really helped guide me to this position that suits me better.” Pinkal recommends other young professionals also build alliances with senior managers who can see and build upon an individual's strengths often before she knows what they are. “Without mentors, you have no light down the path you’re going down,” says Pinkal. “You’re just following this path you’re going down. … They offer you advice, (such as) ‘Here are your strengths and things I recommend you explore,’ rather than learning the

hard way.” When CREW was founded, Anders says, it was to create a solid entity through which members could share, mentor and give back. “We provided many ways for the women to give back,” Anders says. “They do it anyway, but we wanted to have it more organized in CREW. You can either give to the foundation monetarily or you can become directly involved like UCREW or CREW Careers. … I love helping other women succeed. So … every dollar I have given them was extremely well-spent. … Paying it forward is essential, but I’m still available whenever…if (mentees) need something, they call me. It’s about always being there.” It’s not hard to sell the executive salary, which, according to CREW’s most recent benchmark study, falls around $175,000. In 2013, more than $120,000 was donated to yield $50,000 in scholarships. CREW has worked with more than 60 scholars, and every graduate has had a job. Many of them end up working after an internship. “Look at what we can accomplish when we put 10,000 women’s focus in one direction,” Ayers says. That said, men are the fastest growing sector of CREW. There are currently two male presidents of CREW chapters. Gail even hints that she has bought up a few domain names in case the group becomes more gender neutral.

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AZCREW

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By Amanda Ventura

PHOTO BY MIKE MERTES, AZ BIG MEDIA

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CREW Network I holds an open D door for women ME G I A B ZCREW may be celebrating its 30th anniversary as a CREW Network chapter, but its sister chapter to the south has only been around since 2003. Barbi Reuter, a charter member of CREW Tucson, has held numerous roles in CREW Tucson, including two stints as director of the board and is currently serving a two-year term on the national CREW Network Board of Directors. Through this affiliation, CREW Tucson is helping put Arizona real estate on the national stage of an organization with 9,500 members in the U.S.

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Why did you join CREW Network and what keeps you a member? Besides being a joiner and serial networker, I joined CREW Tucson to be part of a senior network of commercial real estate professionals intent on driving business in a supportive environment. The idea of being part of a start-up chapter was energizing. 70 | July-August 2015

Barbi Reuter, a charter member of CREW Tucson and a member of the national CREW Network Board of Directors.

How do the local chapters’ relationship with the national network affect Arizona and local industry members? Local chapter members, whether from Tucson, Phoenix or any of our other 70 chapters, tap a powerful network available at a moment’s notice. CREW Network members represent every discipline needed to complete a transaction or a ground-up development. I’ve received inbound referrals from members of Pittsburgh and Denver CREW chapters and have referred business out to members of CREW New Mexico, CREW Los Angeles and many others. Because CREW has experience requirements, the membership base is very senior – skilled, professional and diligent. Nearly half have more than 15 years of experience, while more than a third of our members have 20+ years in the business. Nothing beats face time and networking “in real life” in this electronic world, so attending CREW Network’s annual convention in the fall is always a power-packed, energizing event, as are the two leadership summits held each year.

What are some of the topics or advocacy efforts CREW Network works on that Arizona could benefit from? CREW Network is known as the industry’s thought leader when it comes to women in CRE. We lead from facts and conduct benchmarking studies every five years, including 2015. Results highlight compensation, career satisfaction, work-life balance, career advancement, and other issues, differentiated by gender, within the CRE industry. We are also publishing a white paper on working with executive recruiters, developing a leadership certificate program, and, through our foundation, funding scholarships for women in the industry. From an advocacy standpoint, CREW Network has a seat at the real estate roundtable – an exclusive group of industry and association leaders guiding policy with a cohesive industry voice.

Are there any issues that you think should see more of a dialogue in the next 12 months? Improved financial results for firms with diverse leadership from the board room to other senior ranks receives well-deserved attention now. Expanding this message and the systems to ensure paths of opportunity are a high priority, in my mind. This ties well with the timing of the white paper.

Has CREW Network had a direct influence on your professional growth? CREW Network has done so very much for me. Not long after participating in CREW’s C-Suite Mentoring Program, I was promoted to COO of my firm. Leadership opportunities at the local and national level hone my skills, expand my learning and connections and open doors. In turn, I am thrilled when I can open doors for others. 71

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Task Masters DOL cracks down on illegal practices in construction industry By AMANDA VENTURA

or the last five years, the Department of Labor has investigated 16 companies in Utah and Arizona for misclassifying employees as contractors. It came to a close on April 23 with $700,000 owed in back wages, damages and penalties for more than 1,000 construction industry workers in the Southwest. However, this is hardly the end of the DOL’s targeting of the construction industry for illegal labor and wage practices. “Many employers are feeling the squeeze in the construction industry from the recession and they’re looking for answers and sometimes innocently stumble on the answer of making people independent contractors,” says John Doran, attorney at Sherman & Howard. The aforementioned case, for instance, included a company that asked its employees to form LLCs. It went from having employees one day to having none. Misclassification of employees and contractors is more often than not unintentional, experts say. The easier said than done solution is educating employers and employees. “Arizona does present additional challenges as a border state,” says Jesús Olivares, community outreach specialist for the DOL’s wage and hour division. “A lot of migrant workers and transient employees work here and then move on

to other states. It’s a culture in which employees think in order to keep a job, they can put up with these illegal practices. Migrants have no options and that creates an additional obstacle for us. I think here, locally, more than 60 percent of employees who have been misclassified are Hispanic.” Even if employees seem happy, says Tracy Miller, attorney at Ogletree, Deakins, Nash, Smoak & Stewart, it only takes one person to set an investigation in motion. Sometimes that catalyst is a competitor who is getting underbid by a company that can afford to charge less for a project due to money being saved by misclassifying employees. On average, misclassifying workers can save a company 30 to 35 percent of worker overhead, Olivares says. “We try to educate our members,” says Arizona Builders Alliance Executive Director Mark Minter. “Employment law attorneys come to our conventions … I hope, as a result of those efforts, people are more aware of potential pitfalls.” Minter says most calls from members seeking advice concern issues of travel time and apprenticeship classifications, not about righting the misclassification of employees. Minter understands the consequences of misclassification, citing a personal friend who lost his business 75

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ABA “If the right players are involved and the right players know what they’re looking for, we’re going to make the light shine forward and force the bad actors into the dark further.” – Matt Meaker

John Doran

Helen Holden

because he improperly reported sales tax and was audited by the Department of Revenue. The solution, for Minter, is transparency from the DOL. He recalls that shortly after the American Recovery and Reinvestment Act was passed, a lot of government projects were swept into the pipeline and scooped up by contractors who may have not understood federal classification rules. “We tried to get guidelines from

Matt Meaker

Tracy Miller

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Thom Cope, partner at Mesch, Clark & Rothschild, offers advice for protecting one’s company from misclassification problems.

What can contractors do to protect themselves or prepare for an audit from the Department of Labor?

The No. 1 thing is to keep accurate records of hours worked for their non-exempt people. The second thing is to make sure the payroll check stub clearly delineates the hours worked and 78 | July-August 2015

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the DOL, but we were told, ‘We’ll look at the situation and advise after the fact,’” Minter recalls. This led to expensive misinterpretations of federal guidelines, he said. Olivares, in concert with industry leaders, such as Sacks Tierney lawyers Matt Meaker and Helen Holden, and organizations like the ABA, launched the Employee Misclassification Compliance Assistance Program about a year ago to further the educational mission.

breaks out the straight time and overtime. It is imperative to the DOL that these add up and are recorded accurately. Also, if there is a piece rate or a bonus, those numbers/hours need to be shown separately. What is the biggest mistake and/or misconception contractors make with regards to misclassifying workers?

The biggest mistake is that contractors want to save overtime so they put people on “salary.” Putting someone on salary is a sure sign to the DOL that the employer is not paying overtime. As I said, hours for non-exempt workers needs to be accurately kept and employees must be absolutely held to the fire to make sure their time sheets are accurate. Supervisors must not “OK” time sheets that are not accurate.

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Mark Minter

Jesús Olivares

The EMCAP program is a self-audit tool developed to help contractors assess their classification practices. The program also offers a good faith model in which the agency will waive money going to the federal government. “Peer pressure is a powerful tool,” says Meaker. “If the right players are involved and the right players know what they’re looking for, we’re going to make the light shine forward and force the bad actors into the dark further.”

What advice regarding worker classifications can you suggest to contractors?

Have accurate job descriptions. Make sure that workers work are not working unauthorized overtime. Make sure the payroll company is accurately informed about the hours. The payroll company relies on the employer for accurate information. They don’t know what is going on at your company. Give them accurate information. What can contractors do to ensure they aren’t misclassifying their workers?

Have an audit by a competent employment attorney who understands the classification system and has years of experience not only doing the audits but knows what the DOL is looking for when they do their investigation.

ABA

COMMERCIAL CONSTRUCTION POISED FOR REBOUND By Mark Minter, executive director, Arizona Builders Alliance Joe DuVall, president, ABA; project executive, Kitchell

ometimes, it looked like the Great Recession was never going to end. Layoffs, shrinking or non-existent margins, projects that bid but never got built all seemed to be the order of the day in recent years. It looks like the years of frustration may be over. Recent trends in Arizona indicate that construction job numbers are on the rebound and projects with real financing seem to be working their way back into the market. In the last year, Arizona experienced 2-percent growth in construction employment â&#x20AC;&#x201D; the first real job growth experienced in construction in a number of years. Additionally, there are a number of large projects that should be underway in the near future. Projects in hospitality, health care and speculative office/retail are poised to start later this year or in early 2016. Contractors are reporting healthy rebounds in backlog and prospective projects to bid. With that, the potential for labor shortages is around the corner. Many construction workers retired or left Arizona for greener pastures when the market collapsed in 2009. Contractors will be faced with the challenges of recruiting trade and professional workers to the industry. Once hired, those new employees will need to be trained and acculturated to the construction industry. The Arizona Builders Alliance offers a variety of programs aimed at helping contractors with workforce training issues. ABA operates apprentice and training programs for electricians, mechanical workers and heavy equipment operators. The programs are offered at Gateway Community College, Central Arizona College and by online correspondence for students on remote or out-of-state projects. New professional employees to the industry face the same level of need for training. The ABA has an entire series of training in legal, safety, financial and managerial areas. For a complete list of upcoming classes, visit azbuilders.org.

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PHOTO BY MIKE MERTES, AZ BIG MEDIA 80 | July-August 2015

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ABA ABA MEMBER SPOTLIGHT

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PHOTO BY ROBIN SENDELE, AZ BIG MEDIA

Marty Hedlund Sr. vice president and Southwest district manager, Sundt Construction, Inc. Years in construction: 32 Years at Sundt: 31 Years as an ABA member: Since the beginning! Sundt was involved in the merging of AGC Building Chapter and the ABC organization into the ABA. Role at Sundt: I lead about 100 talented employee owners of Sundt in providing services in the construction of projects throughout Arizona, New Mexico and west Texas.

What’s one thing everyone should know about your company?

We are 100 percent employee owned and celebrating our 125th anniversary in 2015. What are recent projects you’ve worked on in Arizona? UA Health Science Education Building, Chandler City Hall, ASU Cronkite School of Journalism, Riverpoint Center, Henkel/Dial Headquarters and R&D Building, ASU Sun Devil Stadium transformation.

82 | July-August 2015

What’s on your bucket list? I am an avid golfer. On my bucket list is to play as many of the top 100 golf courses in the world as I can and see some great parts of this great planet. Why did you join ABA? ABA provides true industry leadership, from its staunch representation of our interests in the legislative process to developing exceptional leaders and construction professionals through its educational programs. Being active in ABA supports all that is good about our industry. How has being an ABA member contributed to your professional success? I participated in the year-long Leadership Development Forum many years ago, and it really opened my eyes to the possibilities for success in our industry and introduced me to many colleagues who I rely on for support today. What is one of the biggest obstacles that the construction industry will face in 2015? As our markets continue to improve, and hopefully catch fire, the war for talent in management and craft is critical to win. We are only as good as our people.

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Fred Knapp Vice president, Tucson, CORE Construction, Inc. Years in construction: 37 Years at CORE: 6 Years as an ABA member: 6 Role at CORE: Business development, project director and local liaison between owners, staff and subcontractors. I also, direct support and coordinate community service projects. What’s one thing everyone should know about your company? Since 1937, CORE has been a family-owned business. Headquartered in Phoenix, we have offices across the country from Reno, Nev., to Ft. Myers, Fla. Our emphasis is that service comes first. What are recent projects you’ve worked on in Arizona? Arbor De La Vita and Likens Hall (University of Arizona dormitories), Ed Pastor Justice Complex (Nogales), school projects for Continental, Sahuarita and Amphitheater districts and TUSD Solar. What’s on your bucket list? Professionally, I would like to leave the legacy that promotes our “CORE Values” — honesty, integrity and continuous improvement. Personally, we will see what the future holds. Why did you join ABA? I believe the work the ABA staff does through legislative initiatives and community service is not only important but crucial to the success of our industry. How has being an ABA member contributed to your professional success? It has assisted in validating our primary purpose and theme of serving our clients and the communities in which we work, along with giving us an opportunity to better ourselves as reflected in our CORE values. In retrospect, I believe it has enhanced our standing in the business community and in the eyes of our peers. What is one of the biggest obstacles that the construction industry will face in 2015? My biggest concern is the ability of the individual trades to have qualified personnel (in place) to man each and every project which will be under construction in the near future.

ABA

CRAFTING A FUTURE ABA-AGC apprenticeship program to fill talent shortage

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By AMANDA VENTURA

he house, the cabin, the cars and the company. Dean Lundstrom lost it all when he declared bankruptcy in 2010. Twenty-six employees were out of work. Before turning the page on Chapter 11, his company had been awarded American Recovery and Reinvestment Act projects. At a point, though, Lundstrom says he knew it was too late to save his business. However, knowing what was on the horizon, he sold his only remaining contract — one with the City of Phoenix — to his last-standing employee, Henry Burruel. In the meantime, Lundstrom focused on returning to the industry. With his newly restarted company, Commercial Comm & Electric, he was determined to make some changes. Then, he discovered the Arizona Builders Alliance. In 2013, he became an ABA member. Two technicians who were joining his company, though, said they wouldn’t work for him unless they could be involved in ABA’s apprenticeship program. The apprenticeship program offers craft training in specialities, like electrical engineering and heavy machinery operation. The electrical and heavy machinery operation teaching facilities are located, respectively, at Gateway Community College and Central Arizona College. Enrollment in the four-year programs lead to the equivalent of journeymen certification, which can lead to an annual starting salary of $43,500, according to the ABA. “It was eye-opening,” says Lundstrom, who had previously hired

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electricians regardless of certifications. The next year, he had two more technicians join the program and has another one starting in fall. “I’ve seen a change,” he says. “My older guys who went through the class, they will challenge inspectors on codes because all during the class, they’re brought up on codes…(The program brings) a confidence in their ability.” Lundstrom says he has personally enrolled in ABA’s leadership programs and is happy to report his company now has six employees. “The construction industry, in terms of job numbers, is in a recession,” says Mark Minter, executive director of ABA. “We’re about half the number of jobs we had at the peak. They go up a few thousand one month and down another.” This is the typical call to action by construction companies in Arizona that are looking for craftsmen. Arizona was one of the worst states for construction growth last year, according to a report by The Associated General Contractors of America. ASU professor and economist Lee McPheters has reported that construction jobs are one of three major factors holding back the Arizona economy. The industry is down by about 100,000 jobs, he reported last December. “More people are leaving the industry than coming into it,” says Sundt’s Director of Craft Development, Ken McKenzie. “The next three to five years, we could be 100,000 to 200,000 people short in this part of the country. You can’t do that without craft people.” That’s why Sundt Construction invests about $10,000 a year to train employees who have worked for more

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than six months and pays for their wages, transportation and housing for four years. In June, Sundt will open its first monthly classes at a warehouse the company bought to host pipe-fitting, welding and structural steel courses. The workforce is at a further disadvantage, says Wilson Electric President Wes McClure, when the Baby Boomers retire, leaving a talent shortage in the wake. That’s why his company attempts to enter about 50 employees in the ABA-AGC Education Fund Apprenticeship Program every year, even if only 15 to 20 of them make it through all four years of the program.

PHOTO BY MIKE MERTES, AZ BIG MEDIA

By the time a student graduates from an apprenticeship program, they are qualified to work at a journeyman-level. McKenzie estimated that close to 70 percent of ABA apprentices at Sundt have become supervisors, noting a carpenter who is now a senior vice president. “It’s important to have trained individuals and new blood coming to our company,” says McClure, who started his own career as a laborer and worked his way to president. “It’s been increasingly harder with the lack of construction over the last five or six years and the wages and things that are a barrier to construction. You’re working in heat, but it’s a good trade to go into with a lot of upside if

you’re ambitious.” Like many companies that participate in ABA’s apprenticeship program, Wilson Electric pays for its employees’ education regardless of where the student chooses to work afterwards. The company, McClure says, has an annual training budget of $1M. “People in construction are gamblers,” he says, adding, “when it comes to the available work and being able to perform it.” One other company that has been on board with ABA’s apprenticeship program is D.P. Electric. “The apprenticeship program has impacted the quality of our workforce for

the better,” says D.P. Electric President Dan Puente, whose company can have between five and 35 people in the program at a given time. “Trained electricians bring quality and confidence to the job site – they aren’t hesitant during the installation process and there is no re-work as the quality meets D.P. Electric’s standard. It is very noticeable who has been through the program and has not. We encourage all our employees to go through the program.” Brett Bieberdorf, co-owner of Rural Electric, says that before he and his sister bought the company from their parents in 2007, the company hired “off the street.” Since Arizona is a state that doesn’t certify electricians, Bieberdorf 85

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ABA says it’s difficult to ensure quality. However, the apprenticeship program has helped him bring quality in-house. In 2006, Rural Electric had just over 90 employees, three of whom held a Journeyman certification. Nearly a decade later, the company dropped to 80 employees — with 20 Journeymen. The composition of the workforce is changing from more laborers to electrical tradespeople, says Bieberdorf. “I don’t think kids realize being an electrician is just the beginning,” says Bieberdorf. “You want there to be incentive. Entry level shouldn’t be a living wage.” Journeymen can make between $20 and $25 an hour, says Mark Minter. Every six months and 1,000 hours of work can lead to a raise, he says. “Over the years and going forward, employees are going to be choosy,” says Bieberdorf. “If employees feel they can get a better package, they will. Our pushing the apprenticeship program has helped us retain employees. If they see you’re willing to commit for four years, that creates loyalty.” Lundstrom sees that, too, adding

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that his single former employee, Burruel, who has since built his own small company of workers, will soon combine their two six-person companies into one. Despite the positive changes Lundstrom has seen

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in his workplace due to education, he won’t make it mandatory for employees. “I don’t have a lot of benefits, but paying for my employees’ apprenticeship education fees is one I can offer at this point,” he says.

ABA'S LEADership ALUMNI

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“The ABA’s electrical apprenticeship program provides life-changing opportunities for individuals looking to advance their career in the electrical industry. Graduates from this program gain new skills and knowledge, which, in turn, instills more confidence to be stronger leaders in the field. As a graduate in 2004, I feel that I now have the tools to be successful in my career.” — John Colonna, industrial division manager, Rural Electric

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“Our company has been involved with ABA since its formation in 1994. We have gained much valuable knowledge through the numerous seminars and educational programs while building relationships with our peers. Being able to work together as contractors on legislative issues has also been extremely beneficial for our commercial construction industry. Our company is better because of the Arizona Builders Alliance.” — John Hobbs, president, W.E. O’Neil, Southern Arizona

“(Johnson Carlier has) used this organization to educate our employees through attending various seminars as well as sending employees through the LDF program. As a graduate of the LDF program, I can attest to the value it provides for individual growth for those in the construction industry. ABA is also a helpful tool to network among those in the construction industry in Arizona.” — Rick Weiss, vice president of operations, Johnson Carlier

“The ABA’s Leadership Development Forum was a wonderful learning experience that helped guide me in the development of personal goals and honed my interpersonal relationship skills. It was a great open forum for the sharing of industry knowledge and insight and how to be the right person on the ‘bus’ for my company’s future and success." — Phil Richardson, project consultant, Coreslab Structures

ABA ABA MEMBER SPOTLIGHT Dennis A. Caldwell, Jr. Project manager Caldwell Construction Years in construction: 16 Years at Caldwell: 13 Years as an ABA member: 1 Role at Caldwell: I am the face of the firm. I handle marketing, business development, client interaction and manage projects.

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Richard Karber CEO, Karber Corporation (K corp) Years in construction: 20 Years at current company: 1 Years as an ABA member: 10 Role at K corp: My primary roles are to establish the vision and strategy for K corp, build culture, hire great people and make the coffee on Tuesday. What’s one thing everyone should know about your company? K corp provides construction services specializing in self-performing mechanical and plumbing scopes of work on commercial projects. K corp also provides custom fabrication/manufacturing of equipment skids and modular data centers. What are recent projects you’ve worked on in Arizona? I’ve been fortunate in my career to be a part many significant projects that include the Phoenix Convention Center, Sky Harbor Flight Tower, Wild Horse Pass Casino, NAU Health & Wellness, IO Data Center, Cox Data Center and NRG Central Plant.

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What’s on your bucket list? My parents did a lot of cool stuff with me and my siblings growing up. My bucket list includes pretty much the same things with my family. Why did you become a member of ABA? K corp values the ABA for the opportunities to network with other companies in our industry; we respect the experience and innovation of many of these member firms. What is one of the biggest obstacles that the construction industry will face in 2015? This market is very competitive and presents many challenges. I believe that specialty contractors in our market generally do a poor job measuring the quality of the service they provide and have limited ability to measure the cost of waste and rework. I believe a great opportunity exists for specialty contractors to develop certifiable quality management plans that incorporate lean construction principles, measures performance and produces useable data for continuous improvement.

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What’s one thing everyone should know about your company? We’ve only been focusing on commercial projects full-time since 2009. We are still in what I call our infancy stage and have a lot to learn.

What are recent projects you’ve worked on in Arizona? A ground-up expansion for Desert Sun Medical, including new operatory and R&D addition; a Double Tree Hotel conversation, including 144 rooms and all public areas; and North Point Student Housing expansion, including a new gym, leasing office, theater, study/conference rooms and public restrooms. What’s on your bucket list? To own a small limited service hotel. I have a degree in hotel administration from UNLV and previously worked for Hyatt Hotels. Why did you join ABA? (For) educational and professional development and to establish relationships with others who will eventually be Tucson’s leaders in construction. How has being an ABA member contributed to your success? It has allowed my firm to attend trainings (that enhanced our) work environment. We already plan to improve internal policies and procedures. What is one of the biggest obstacles that the construction industry will face in 2015? We can always use more negotiated work. Negotiated work benefits contractor and client alike. It results in more loyal relationships and, inevitably, solid growth.

ABA

ARIZONAâ&#x20AC;&#x2122;S FINEST Arizona Builders Alliance is a partnership between the Arizona chapters of the Associated Builders & Contractors (ABC) and the Building Chapter Associated General Contractors (AGC). It represents more than 250 contractors, suppliers and professional service firms in the commercial construction industry. Here are spotlight projects its members have been working on this year.

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A. Airport I-10 Developer: Wentworth Property Company General Contractor: Wespac Construction Architect: Butler Design Group Location: Phoenix Size: 604,658 SF Brokerage: Rio Salado Commerce Park LLC Value: $23M Subcontractors: Suntec and Kortman Electric Interesting fact: Consisted of three, Class-A industrial facilities on a 58 acre brownfield site.

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B. Arizona Cancer Center Developer: University of Arizona General Contractor: Hensel Phelps Architect: ZGF Location: Phoenix Size: 213,649 SF Value: $88M Start/Complete: June 2013 to May 2015 Interesting fact: Stakeholders include UA, City of Phoenix and Dignity Health

C. Canyon Vista Medical Center Developer: RegionalCare Hospital Partners General Contractor: JE Dunn Construction Architect: Gould Turner Group Architects Location: Sierra Vista Size: 176KSF Value: $55M Start/Complete: December 2013 to March 2015 Subcontractors: General Air Control, JE Dunn Construction, Sun Mechanical Contracting, Suntec Concrete, Wilson Electric Interesting fact: Local subcontractor outreach strategies allowed for $31.5M of the total $42.1M subcontractor commitment to be awarded to southeastern Arizona subcontractors.

D. College Avenue Commons Developer: Arizona Board of Regents General Contractor: Okland Construction Architects: Gensler; Architekton Location: Tempe Size: 137KSF Value: $54.5M Completed: July 2014 Subcontractors: Audio Video Resources

E. Comerica Bank BC Developer: CBRE General Contractor: Caliente Construction Inc. Architect: PM Design Group Location: Peoria Size: 2,500 SF Value: $1M Start/Complete: June to November 2014 Subcontractors: True Metal Solutions Interesting fact: The building’s east elevation features a “dynamic glazing” system that transitions from light to dark with the intensity of the sun.

F. DC Ranch Clubhouse Developer: The Country Club at DC Ranch General Contractor: Wespac Construction Architect: PHX Architecture; SB Design, LLC Size: 9,500 SF Value: $2M Start/Complete: January to November 2014 Interesting fact: Awarded Best Clubhouse renovation of 2014 by Golf, Inc. Project included a patio extension and complete interior renovation.

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G. IHS San Carlos Developer: San Carlos Apache Tribe General Contractor: McCarthy Building Companies, Inc. Architect: Rhode May Keller McNamara Architecture PC Location: Peridot Size: 184KSF Value: $85M Start/Complete: December 2009 to November 2014 Subcontractors: Delta Diversified, Performance Contracting Interesting fact: More than 50 percent of the labor was performed by tribal members and included a high school program

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H. Liberty Center at Rio Salado Developer: Liberty Property Trust General Contractor: Wespac Construction Inc. Architect: RSP Architects Location: Tempe Size: 160KSF (Bldgs. 1 and 2) Value: $30M Start/Complete: August 2013 to May 2015 Subcontractors: Suntec, Wholesale Flooring, DP Electric Interesting fact: This is the first two of eight possible structures, including four parking structures.

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I. Paradise Valley High School renovations Developer: Paradise Valley Unified School District General Contractor: McCarthy Building Companies Location: Phoenix Size: 60KSF Value: $15M Start/Complete: May 2013 to July 2015 Subcontractors: Pueblo Mechanical, Schuff Steel, JENCO, Stone Cold Masonry Interesting fact: This project is being built on an occupied campus and includes covered temporary safety walkways the students were able to paint.

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J. Pima County Courthouse & Parking Garage Developer: General Contractor: Sundt Construction Architect: AECOM Location: Tucson Size: 290KSF Value: $92.75M Start/Complete: February 2012 to April 2015 Subcontractors: Coreslab Structures, Sun Mech., Wilson Electric Interesting fact: This building was originally intended to house the Pima County and Tucson courts. Tucson pulled out in December 2012.

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K. Regency House Condominium Phase I and II Structural and Utility Infrastructure Upgrades Developer: N/A General Contractor: Caliente Construction Inc. Architect: Gervasio and Associates Location: Peoria Size: 215KSF Value: $6.4M Start/Complete: May 2011 to October 2014 Subcontractors: Jones Concrete and Progressive Roofing Interesting fact: Repairs encompassed eight years. Construction was completed in two phases, over four years, funded completely by individual condominium homeowners, during the depression.

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L. Saint Xavier University Developer: Town of Gilbert General Contractor: Okland Construction Architect: SmithGroupJJR Location: Gilbert Size: 87KSF Value: $30M Start/Complete: July 2014 to August 2015 Subcontractors: Comfort Systems, Progressive Roofing, Kearney Electric Interesting fact: Fast track programming, design and approved GMP within five months from start date.

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M. SALT Developer: OliverMcMillan General Contractor: Adolfson & Peterson Construction Architect: Todd & Associates Size: 497KSF Value: $39M Start/Complete: August 2014 to March 2016 Subcontractors: Suntec Concrete Interesting fact: SALT is a four-story, 264-unit, class-A apartment community with direct frontage on Tempe Town Lake.

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N. Talking Stick Resort Pool Remodel, Phase II Developer: Salt River Gaming Enterprise, a division of Salt River Pima Maricopa Indian Community General Contractor: The PENTA Building Group Architect: FFKR Architects Location: Scottsdale Size: 5400 SF Value: WND Start/Complete: November 2014 to April 2015 Subcontractors: Performance Contracting, Inc, Total Shade, LLC, W.J. Maloney Plumbing Interesting fact: The project has an operable DJ booth that raises from a below grade pit to three feet above grade though the use of a spiral lifting system.

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O. The Village at Aspen Place Developer: The Village at Aspen Place LLC General Contractor: Wespac Construction Architect: NSPJ Architects Location: Flagstaff Size: 344,144 SF Value: $37M Start/Complete: April 2014 to December 2015 Subcontractors: Coreslab Structures Interesting fact: This is the main housing component for the The Village center in Flagstaff. The multihousing project consists of 226 units and 33KSF of retail.

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ABA

Paving a way for veterans in ABA’s apprenticeship program U.S.

Rep. Martha McSally visited Catalina High School on May 11, 2015, to learn more about the Arizona Builders Alliance (ABA) and its efforts regarding community partnerships, construction career outreach, training skilled labor and apprenticeship opportunities. ABA allies with Joint Technical Education District - Pima (JTED) and the Catalina High School’s Career and Technical Education (CTE) program to prepare students Tom Dunn for construction Arizona Builders Alliance careers after high school. ABA utilizes Catalina High School facilities to teach the beginning construction classes for its apprenticeship program. McSally visited the school at ABA Director for Southern Arizona Tom Dunn’s invitation. The congresswoman was briefed on CTE, JTED, ABA apprenticeship and the Explorer Post 811 programs. McSally discussed her initial work regarding legislation that would enhance veterans’ abilities to access training for careers in skilled labor. The Veterans’ Entry to Apprenticeship Act that she’s championing in Washington, D.C., would allow veterans to use the G.I. Bill for pre-apprenticeships similar to the programs being offered at Catalina High School. The ABA award winning Explorer Post 811 offers young men and women the chance to learn about construction careers by touring construction job

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U.S. Rep. Martha McSally visited Catalina High School to learn more about the Arizona Builders Alliance's community partnerships, construction career outreach, training skilled labor and apprenticeship opportunities.

sites, manufacturing facilities and offices. The networking opportunities for the Explorers also create bonds in the industry that will assist them when they are able to enter the workforce. With the changes in the workforce and the impending lack of skilled labor, these students have an opportunity to make strong career choices that may help them achieve better livelihoods in today’s challenging economic times. Teacher Jack Draper explained that the benefits of the Explorer Post 811 program’s partnership with Catalina High School can be transformational for students and in turn the entire community. “We’ve put kids whose families have

struggled for generations into jobs at $18 an hour,” Draper said. McSally said she has three siblings who had careers related to construction, and she understands that well-paying trade crafts are essential. Industry partners, including Tom Dunn of the ABA, Ed Butchart of Barker Morrissey Contracting, Todd Scholer of Sun Mechanical, Mike Goodwin of Climatec, BTG and Tom Kittle, owner of Kittle Design & Construction, were on hand to discuss the need for a trained workforce in their companies. Tom Dunn is the director for ABA Southern Arizona

Thank you to our many trade partners who helped build the award-winning PHX Sky Train速 Terminal 3 extension.

Endo Steel, Inc.

*And many others

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THE DRIVE TO SUCCEED ABA supplies schoolchildren with much-needed tools

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he Arizona Builders Alliance began collecting new backpacks for underprivileged children in the summer of 2010. The collection was so popular with member companies that it was expanded the following year to include basic school supplies for all grade levels. In 2012, the ABA’s Community Service Board partnered with Children First Academy, a nonprofit charter school with campuses in Tempe and Phoenix. All Erica Lange Arizona Builders Alliance of the school’s students and their families are at or below the poverty line and a vast majority of the students are homeless. The Phoenix campus has approximately 350 students (grades K-9) and the Tempe campus has 300 students (grades K-8). Between cash and supply donations by ABA member companies, more than $25,000 in supplies were raised.

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Enough school supplies were donated last August to support the need of more than 750 children between both campuses. In fact, there were so many donations that the schools were able to store some extras to use throughout the year and for teacher use. Members also donated clothing and food, which are much-needed items. Because donations were so generous, the Community Service Board was able to also purchase sports equipment for both campuses. “The appreciation that the students, teachers and administration express when we distribute the supplies in early August is heart-warming,” says Erica Lange, assistant executive director for the ABA. “The excitement

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and gratitude is clear the moment each child enters the room. The wonderfully positive response we’ve gotten from our members, as well as CFA, has made the drive something we look forward to every year.” The ABA’s Community Service Board is raising funds for the 2015 Backpack Drive through July 24. “We are in need of cash donations to purchase wholesale orders of school supplies, as well as binders/Trapper Keepers, lightly used clothing, hygiene products and canned food,” says Lange. Erica Lange is the assistant executive director for Arizona Builders Alliance

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