AZRE July/August 2019

JULY-AUGUST 2019

IN REAL ESTATE 2019

INSIDE:

IIDA: Pride Awards p. 34 | Arizona Builders Alliance p. 57

Plenty more to come

A

nother year, another illustrious list of deserving women gracing the cover of our July/August edition of AZRE Magazine.

Some may wonder how difficult it is to find enough worthy women industry leaders each year, and I have to say that finding enough is actually quite easy. Narrowing the list down to the women that you see featured on the cover is the most difficult part of the Most Influential Women in Commercial Real Estate process.

What we’ve learned in the eight years we’ve done this feature is the supply of women business leaders is healthy here in Arizona, but it can always use more professionals to rise up through the business ranks. We hope that this edition serves as motivation for young women business professionals to reach a little higher than they thought possible and work to stand out in this highly-competitive market. We want to see your face on our cover someday.

In addition to the outstanding women we feature on our cover story, this edition introduces you to an up-andcoming woman construction executive, as well as a new team of women that are taking a new approach to purchasing land parcels.

This edition also highlights the groundbreaking work being done by the Southwest Chapter of the International Design Association. This work was honored at the IIDA PRIDE Awards and feature interior spaces that are functional and inspirational.

Another highlight of this edition is the Arizona Builders Alliance supplement. In it, we look into all of the work that the ABA is doing to develop a skilled workforce, as well as sit down with five construction executives to get their thoughts on a wide range of subjects that affect the industry. We also shine a light on some of the projects that ABA members worked on in the past year.

Other features are an update on the progress of the Loop 202 South Mountain Freeway and the economic impact it is already having; a look at some of the development activity in the East Valley and how Rural Rd. in Tempe is beginning its transformation into an urban center; and finally, we examine technology that is having a major effect on the construction industry.

Steve Burks

Associate editor, AZRE steve.burks@azbigmedia.com

2 | July-August 2019

President and CEO: Michael Atkinson Publisher: Josh Schimmels Vice president of operations: Audrey Webb EDITORIAL Editor in chief: Michael Gossie Associate editors: Steve Burks | Alyssa Tufts Intern: Kaya Broady Contributing writers: Tom Dunn | Suzannne Kinney Tim Lawless | Nicole Snyder | Deb Sydenham ART Art director: Mike Mertes Design director: Bruce Andersen Intern: Ane Pulu MARKETING/EVENTS Marketing & events manager: Keith Chandler Digital strategy manager: Gloria Del Grosso Marketing designer: Michael Bodnar OFFICE Special projects manager: Sara Fregapane Executive assistant: Briana Villa Database solutions manager: Amanda Bruno AZRE | ARIZONA COMMERCIAL REAL ESTATE Director of sales: Ann McSherry AZ BUSINESS MAGAZINE Senior account manager: David Harken Account managers: April Rice | Kim Bailey AZ BUSINESS ANGELS AZ BUSINESS LEADERS Director of sales: Sheri Brown HOME & DESIGN EXPERIENCE ARIZONA | PLAY BALL Director of sales: Donna Roberts RANKING ARIZONA Director of sales: Sheri King 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. ©2019 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.

Every bank has business accounts.

Ours come with accountability.

Our commitment to you is based on more than just numbers.

At Alliance Bank of Arizona, we’re invested in your business as much as you are.

Bank on Accountability

Meet Your Local Banking Expert: Ericka LeMaster SVP, Commercial Real Estate elemaster@alliancebankofarizona.com (602) 952-5452

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Top 10 – Forbes Best Banks Alliance Bank of Arizona, a division of Western Alliance Bank, Member FDIC. Western Alliance ranks top ten on Forbes’ Best Banks in America list, four years in a row.

CONTENTS

FEATURES 2 Editor’s Letter 6 Trendsetters 10 Executive Profile 12 After Hours 14 New to Market 16 Big Deals

20 Legislative Update

57

24 Infrastructure

28 Constru-Tech 34 IIDA Pride Awards

43 Most Influential Women

14

52 East Valley Building

57 Arizona Builders Alliance

34

On the cover: See page 43

(Photo by Mike Mertes, AZ Big Media)

4 | July-August 2019

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

24

August 1, 2019 | 3:00 - 6:00 PM | The Camby Hotel

PURCHASE TICKETS TODAY at azbigmedia.com/awards-events

AZ Big Media is proud to host the 5th Annual AZRE Forum: Midyear update and forecast for commercial real estate. This year’s Forum will include two panels of experts – with focuses on Brokerage and Development.

We’ll look at what the year has seen so far, market trends and expectations for the future.

BROKERAGE PANEL

MODERATOR

PAUL KOMADINA CBRE

MIKE GARLICK NKF

LAUREL LEWIS NAI Horizon

RYAN SARBINOFF Marcus & Millichap

CHARLES STEELE JLL

WILL STRONG Cushman & Wakefield

DEVELOPMENT PANEL

MODERATOR

SANDRA WATSON Arizona Commerce Authority

JACKOB ANDERSEN Saint Holdings

Beverage Sponsor

BRANDON DILLINGHAM Hines

DEREK KIRKLAND DPR Construction

Brokerage Panel Sponsor

ERICA LEMASTER Alliance Bank of Arizona

ALANA MANN The Statesman Group

Development Panel Sponsor

JENNIFER SCHRADER Caliber Development

Signature Sponsors

TRENDSETTERS SUNDT WINS 23rd Build America Award Sundt Construction, Inc. was recently awarded its 23rd Associated General Contractors of America (AGC) Build America Award for its work on the APS Four Corners Selective Catalytic Reduction Retrofits.

The project won the 2019 JLT Build America in the Environmental Enhancement category. Sundt has won more Build Americas than any other contractor in history.

“We are proud of our work on this project and the widespread benefits it provides,” said Rich Keil, President of Sundt’s Industrial Group. “The operation of the facility will help maintain continued economic viability in the region, and the process upgrades will make a significant improvement in the overall regional air quality.”

The design-build project added four selective catalytic reduction systems for nitrogen oxide emission control for Units 4 and 5 of the APS Power Plant. The selective catalytic reactors (SCR) used are the tallest in North America and the second-largest air pre-heaters in the world, at 60 feet in diameter.

Over 400 craft staff members worked more than two million hours on the project. The award was presented during the AGC’s 100th Annual Convention Awards Luncheon in Denver, Colorado.

Norris Design’s Webb named Volunteer of the Year Norris Design announced landscape designer Amy Webb has been named the 2019 Volunteer of the Year for the Arizona American Society of Landscape Architects (ASLA). The award was announced at the annual Arizona ASLA Award Gala & Expo in April.

Recognizing an individual who makes notable contributions to or on behalf of the Society, Webb says the Volunteer of the Year Award doesn’t mark the end of her volunteer work but the beginning.

As a veteran Arizona ASLA member, Webb has been involved since she was a student at the University of Arizona and focuses her professional membership efforts towards establishing more opportunities for students and professionals to interact, teach and learn. Her recent involvement includes serving as the Membership Committee Co-Chair and helping to establish a new Emerging Professionals Southern Section Committee. Both committees focus on outreach, networking, establishing connections and furthering ASLA’s efforts within the southern Arizona community.

Webb has been with Norris Design, a planning, landscape architecture and branding firm headquartered in Denver, since 2017.

Initially hired as an intern, Webb became as a full-time landscape designer in Norris Design’s Tucson office after graduating with a Master of Landscape Architecture from the University of Arizona.

Original Company wins REIAC/Rockefeller Challenge

The Novus Innovation District in Tempe was the focus of the three teams competing in the 2019 REIAC/Rockefeller Challenge. Capturing top honors at the 6th annual event was the Original Company for its project, Karsten.

Teams consisting of graduating students from Arizona State University’s W. P. Carey School of Business, Masters of Real Estate Development (MRED) program competed for cash prizes. Original Company garnered $1,000 each for team members Jason Wagner, Lindsey Campbell, Tanner Weekes, and Wade Troeger.

“This is as close as you get to being in the business,” said Mark Stapp, director of the MRED program. “Pick a project, make a pitch, make money.”

This year’s development project included 48 acres on the back nine of the Karsten Golf Course at the NWC of Rio Salado Parkway and McClintock Drive. It was on a 99-year ground lease with ASU. This was the MRED students’ 3rd Synthesis project for their final grade.

The goal of the Original Company’s pitch, Karsten, was to develop an urban neighborhood in which residents are interconnected with the 6 | July-August 2019

environment and surrounding communities. Karsten would comprise three phases with a projected completion date of May 2029. It would feature: Hospitality, 165,000 SF, 165 keys; multifamily, 2 MSF, 1,700 units; office, 440,000 SF; and retail, 94,000 SF. A key aspect of the project was the emphasis on multifamily to serve the thousands of jobs located along the Rio Salado Parkway corridor.

It would include low-rise to mid-rise buildings and include workforce housing, which is in great need in Tempe. Total project cost would be $46 million; land ground lease payment would be $20 million; total sales were projected to be $86 million.

Industrial market driven by lack of mid-sized products According to JLL’s most recent Phoenix Industrial Market Report, the mid-bay industrial market now represents 42.1 percent of the Valley’s under construction industrial stock. The report points to a lack of product in the 50,000to 200,000-square-foot size range as a driver of this new construction.

“For many years, demand for Phoenix industrial space has centered around very large, e-commerce and distribution-focused tenant requirements,” said JLL Vice President Kyle Westfall. “The rise of the mid-bay sector is a welcome addition to that demand. It balances out our industrial landscape and allows the largescale and mid-size sectors to grow in tandem and complement each other – a trend we think will continue in a very robust way.”

As noted by JLL, mid-bay product has recorded more than 5 million square feet in gross leasing in the past 18 months, at an average rate of three deals per month and an average lease size of just under 100,000 square feet. The first quarter continued to reflect that trend, recording nine deals that collectively total just under 900,000 square feet.

In metro Phoenix, there are currently 23 midbay projects underway. Together, these total more than 2.5 million square feet, or 42.1 percent, of all local industrial stock currently under construction.

SIOR names Martensen as West Regional Director Rob Martensen, SIOR, executive vice president at Colliers International in Arizona was recently elected as the 2020 West Regional Director for the Society of Industrial and Office Realtors (SIOR). He will assume the position at SIOR’s Fall World Conference in Portland, Ore. in October.

Martensen has specialized in the metro Phoenix industrial market for 21 years, and his industrial expertise includes single- and multi-tenant building sales and leasing, land sales, build-to-suits, groundup speculative developments, and landlord and tenant representation. He is recognized as a top-producing industrial broker and industry leader, and has been involved in over 600 transactions, including industrial and land sales, leasing, and build-to-suits.

An SIOR member since 2009, Martensen has served in a variety of leadership capacities, including as the 2017-2019 President of the Arizona Chapter.

“I owe much of the success in my career to SIOR and the connections I have made in through this association,” says Martensen. “I’m honored to give back to the organization in this capacity, encouraging the positive evolution of SIOR and mentoring its dynamic members.”

Martensen serves on the Colliers International Logistics and Transportation Solutions Group, the company’s Arizona Leadership Council and Colliers AZ Cares Board.

PIPLINE

remains full The industrial real estate boom continued to roll throughout the country, with 272 million square feet of industrial product delivered nationwide, according to the Avison Young Spring 2019 Global Industrial Market Report. The report also noted that another 274 million square feet of industrial space is under construction.

According to the report, Phoenix is expected to deliver 8 million square feet of industrial product in 2019, ranking 7th out of the 20 markets cited in the report. Of that space, 45.6 percent of it was preleased, the fourth highest prelease level cited.

According to the report, Phoenix had 344 million square feet of industrial inventory and added 7.8 million square feet in 2018, while total absorption was 7.6 million. The average net asking price per square foot in the market is $7.10, while the average sale price was $99 per square foot, which was a bargain compared to the California market, which averaged $224 per square foot.

These 10 markets lead the way in accounting for more than 63 percent of the 274 million square feet of industrial product that is under construction nationwide.

Market

Total space in pipeline

% Preleased

1. Dallas

30.9M SF

44.7%

2. Philadelphia

29.2M SF

24.9%

3. Inland Empire 27M SF

98.6

4. Atlanta

22.7M SF

17.6%

5. Chicago

19.3M SF

26.9%

6. Houston

15.5M SF

28.3%

7. Phoenix

8M SF

45.6%

8. Charlotte

7.3M SF

21.1%

9. Savannah

7.1M SF

26.2%

10. Las Vegas

6.6M SF

0%

(Source: Alison Young Spring 2019 Global Industrial Market Report)

7

TRENDSETTERS Population keeps retail demand solid Strong demographic trends contribute to demand growth for Phoenix retail, according to the Marcus & Millichap Q2 Phoenix Retail Market Report. As the metro’s economy continues to grow, so will consumption.

The increases in jobs, housing supply and residents add to the growing need for retail space. Phoenix is expecting to post the nation’s third largest household growth for 2019 with 42,400 and the greatest positive net migration with nearly 80,000 residents anticipated to join the desert metro by the end of the year. The ongoing growth is causing retail demand to increase at a strong pace as well. Residential construction has been rampant across the metro, particularly in the East Valley and West Valley. As the new residences are leased and sold, demand for necessity retail in the form of grocery, fitness centers and other power centers will be amplified.

According to the report, there will be 431,600 square feet of retail product delivered in 2019, which is just 33 percent of 2018’s total.

Vacancy will fall to 7.3 percent and rents will increase 4.1% in the Metro Phoenix area.

Submarket

Y-O-Y Y-O-Y % Vacancy Basis Point Average Rate Change Asking Rent Change

Maricopa County

2.9%

-120

$33.98

37.1%

Airport Area

4.6%

-110

$18.59

6.8%

Northwest Phoenix

4.9%

0

$15.88

3.0%

Scottsdale

5.5%

-70

$23.92

6.5%

West Phoenix

6.5%

80

$15.77

6.6%

North Scottsdale

7.3%

-60

$21.36

0.4%

East Valley

7.6%

-40

$15.75

7.1%

South Mountain

7.8%

-100

$16.90

-0.6%

Downtown Phoenix

8.1%

-150

$19.48

14.1%

Pinal County

11.0%

540

$11.18

-4.1%

Overall Metro

7.8%

-10

$16.43

5.1%

Sanders honored by AZ Water Association The AZ Water Association awarded Brad Sanders of Archer Western as its Construction Professional of the Year.

The award recognizes Sanders’ significant contributions to the water/ wastewater industry, the AZ Water Association, Water Environment Federation (WEF) and the American Water Works Association (AWWA).

Sanders serves as a program manager overseeing Archer Western’s southwest water and wastewater construction operations. With over 20 years of experience, Brad has managed projects for numerous Arizona municipalities. His collective value of work exceeds $250 million in Scottsdale alone, and includes the CAP Water Treatment Plant Expansion, the Chaparral Water Treatment Plant, and the expansion of the Advanced Water Treatment Facility. Throughout his career, Brad has coordinated teams to work collaboratively with stakeholders to finalize design, develop cost models, and keep projects on track to deliver safe and high-quality results.

His passion for clean water was the catalyst behind Arizona’s Pints For People fundraiser, benefitting Water For People – a subcommittee of the AZ Water Association – whose purpose is to bring water and sanitation to every family, every school, and every clinic in which it works. In its inaugural year, the event raised over $14,000 for the non-profit organization.

8 | July-August 2019

Skanska develops protective gear designed for women Skanska, one of the world’s leading construction and development firms, has partnered with Colony Hardware and Radians to create a full line of offthe-shelf personal protective equipment (PPE) tailored to women employees.

Skanska believes women shouldn’t be asked to compromise their safety by wearing unisex PPE that are too large. Instead, they are taking the lead again to make the industry better and safer.

“I was encouraged to hear of Skanska’s launch of tailor-made personal protective equipment for females. While oversized PPE is a significant safety concern, it’s also a perception issue. I’m barely 5’3”, so traditional-sized PPE drowns me. It’s hard to command respect when you walk onto the jobsite looking like you are wearing your dad’s safety vest,” said Rochelle Riggs, Assistant Project Engineer at the Phoenix office of Skanska.

Skanska’s female workforce across the U.S. now has options for appropriate fitting PPE, including two types of gloves, one for touchscreens and one for general use, and tailor-made vests that are custom-built based on feedback from Skanska’s very own female employees.

These items are also available for every woman in the U.S. construction industry, no matter their location or company. Skanska’s goal is to raise the bar for safety across the industry and to drive change that results in inclusive, injury-free job sites around the country.

Rental home market Here are the Top 10 SFR markets, nationwide:

1. Las Vegas, NV 2. Orlando, FL 3. Atlanta, GA 4. Charlotte, NC 5. Phoenix, AZ 6. Dallas-Fort Worth, TX 7. Jacksonville, FL 8. San Antonio, TX 9. Indianapolis, IN 10. Fort Lauderdale, FL

According to research from Roofstock, a leading marketplace for singlefamily rental (SFR) investment properties, Phoenix is an attractive market for rental homes.

The study states that as coastal real estate markets continue to exhibit late-cycle dynamics, investors are increasingly seeking out metros like Phoenix that provide strong, sustainable growth trajectories and real estate properties that offer an opportunity to capitalize on cities’ momentum.

Phoenix continues to grow rapidly - in fact, rent has grown 9.1% and the population increased by 2.1%. As one of the top job markets in the country, one that will continue in 2019, financial institutions and other firms such as Voya Financial continue to invest in the area.

HIGHS AND LOWS of rent in the Valley Apartments.com — the most visited apartment-listing site – took a deep dive into the Phoenix market to help renters learn more about the area for their apartment search. The cheapest neighborhood is Estrella with rent averaging at $714 while Downtown Scottsdale is the most expensive with rents averaging at $1,882.

Cheapest/Most Expensive Neighborhoods: Rent-Per-Unit Submarket

Firm focused on cannabis real estate Zoned Properties, Inc., a strategic real estate development firm whose primary mission is to provide real estate and sustainability services for the regulated cannabis industry, positioning the company for property acquisitions and revenue growth, recently announced the Company has established the Zoned Cannabis Real Estate Team under a licensed brokerage in Arizona and is actively working with new clients in the regulated cannabis industry.

“We are excited to launch the Zoned Cannabis Real Estate Team across the regulated cannabis industry. Setting up a real estate team under a licensed brokerage allows us to expand the scope of services we can provide clients and opens up access to new revenue streams,” commented Bryan McLaren, Chief Executive Officer. “Successfully permitted and zoned properties in the regulated cannabis industry have the potential to return premium valuations for real estate owners, creating an opportunity to explore new development strategies. Property owners, licensed operators, and development teams need real estate experts who know how to navigate the nexus of both real estate and cannabis regulations.”

Neighborhood

Average Rent

Old Town Scottsdale

Downtown Scottsdale

$1,882

North Scottsdale

Desert View

$1,531

Chandler

South Chandler

$1,514

North Scottsdale

North Scottsdale

$1,509

Gilbert

East Gilbert

$1,497

West Valley

Rancho Santa Fe

$1,475

North Scottsdale

Central Scottsdale

$1,380

Downtown Phoenix

Downtown Phoenix

$1,377

North Scottsdale

McCormick Ranch

$1,368

East Valley

Queen Creek

$1,355

West Maricopa County

West Valley

$891

Downtown Phoenix

Central Phoenix

$881

North Phoenix

North Phoenix

$876

North Phoenix

North Mountain

$875

East Valley

Country Club

$852

East Valley

Apache Junction

$846

West Valley

Westside

$836

Southeast Valley

Pinal County

$801

East Valley

Downtown Mesa

$764

South Phoenix

Estrella

$714 9

EXECUTIVE PROFILE

Challenge accepted DPR’s Kinsella has built career on exceeding expectations

By STEVE BURKS

B

efore there were dedicated STEM (Science, Technology, Engineering and Math) programs in schools, students interested in science and math weren’t fully aware of all of the career options available to them.

So a young Gretchen Kinsella saw that she had just two options for a career, one of which didn’t appeal to her at all.

“I was always really good at math and science and didn’t want to be a doctor,” said Kinsella, who grew up in Winona, Minnesota. “There’s really only two paths in the grand scheme for math and science nerds, and one is into the medical field and one is into engineering, so that’s really what started me off.”

The choice to focus on the engineering side of the equation turned out to be a perfect fit for Kinsella, who attended Iowa State University and started in civil engineering and then was naturally drawn into construction engineering.

“I always knew I wanted to build,” Kinsella said. “I guess I just didn’t know what that meant.”

While at Iowa State, Kinsella landed an internship at DPR Construction and hasn’t left the company. Kinsella has worked her way through the ranks for the past 18 years to become a project executive in the Phoenix office, with a focus on, ironically enough, medical facility construction.

Kinsella has been a project manager or executive on some of the largest medical facility projects in Arizona.

She was the project executive for the DPR team that completed the 700,000

10 | July-August 2019

Photo by Mike Mertes, AZ Big Media

square feet emergency department and patient tower expansion project at Banner — University Medical Center Phoenix, the largest project DPR had ever completed in Arizona. In fact, Kinsella gave birth to her daughter in a room that she helped build at the Banner — University Medical Center in Phoenix.

“I started my career on the Banner Phoenix campus,” said Kinsella, who worked on the Banner site in 2002 when it was known as Good Samaritan Hospital. “I actually gave birth in a room that I built, so that campus has a special place in my heart, just because of my personal connection to that.”

While the BUMCP holds a special place for Kinsella, she is also fond of Tucson due to projects she worked on for DPR. The project that had the biggest impact on Kinsella is the University of Arizona Medical Center South Campus Behavioral Health Pavilion + Crisis Response Center.

“I had a bunch of challenges on that project that really stretched my growth,” Kinsella said. “In a way, now that it’s 10 years later, I can say that’s one of my favorite projects because that’s the one that gave me the best growth opportunities.”

Another Tucson project that Kinsella was project executive on is the recently

completed Banner — University Medical Center Tucson Replacement Hospital. This $306 million project was the first that Kinsella worked on in Tucson since she got married and had a child.

“Tucson has a special place in my heart because I’ve sacrificed some personal life to spend time building iconic projects down there, this last one (BUMCT) being the most iconic, probably, in Tucson in a long time,” Kinsella said. “On this project, I’ve spent two days a week for the last two years in Tucson, away from my family.”

Kinsella is enjoying her transition to a company leader for DPR and is relishing the new challenges she faces as she learns how the business side of the company works. Throughout her career, Kinsella has learned that the key to job satisfaction is knowing where to direct her energy.

“This is a high-stress business and you have to pick and choose where you spend your emotional energy,” Kinsella said. “It’s real easy, especially as a young person in this job, to want to put your emotional energy into everything and it can be real frustrating and very draining and you feel defeated at times. That’s a big part of our business is just deciding where your energy can be best spent.”

AFTER HOURS

???????

Craig Coppola and Tashi Tshering on Mount Everest

The man with a plan

S

uccess in business or life doesn’t happen without at least a little bit of planning. One look at R. Craig Coppola’s top 10 goals and it’s easy to see why he’s found success in just about everything he’s tried.

Coppola, one of the Founding Principals and the highest producing office broker in Lee & Associates 40year history, keeps an 80-page, colorcoded spreadsheet with detailed plans on how he will accomplish 10 goals he’s set out for himself.

“I’m a really organized, achievementoriented guy. I plan work, free time, I plan all of my events,” said Coppola. “(Former Navy SEAL) Jocko Williams, who I follow closely, has a book titled, ‘Discipline Equals Freedom’. I’m a believer in that. Discipline allows you, when you plan, to do whatever you want to do in life.”

And Coppola has been able to do a lot during his lifetime thanks to a focus and discipline that was kindled at a young age. Coppola recalls that as a sophomore at Buena High School in Sierra Vista, he got called up to play

12 | July-August 2019

one varsity baseball game at first base.

His dad was the coach and his older brothers, one a senior and the other a junior, played third base and second base, respectively.

“After the game he told me, ‘you aren’t good enough to stay up here.’

And he sent me back down,” Coppola said. “I think at that point the decision to really focus and apply myself really came in and for the next two years I really did apply myself.”

That focus led Coppola to a successful amateur baseball career, first at Yavapai College and then Nicholls State in Louisiana. He was drafted in the 22nd round by the Minnesota Twins and played a year in their system before embarking on his current career path. He remained active, running his first marathon in 1987 and his last in 2004. In between, Coppola estimates he completed more than 80 marathons and ultramarathons, including the 2001 Marathon des Sables, a six-day, 156 mile ultramarathon through the Sahara Desert in Morocco.

To add another activity to his

By STEVE BURKS

running regimen, Coppola picked up Taekwondo in 1993 and earned his first-degree black belt in 1994. In 2002, he earned a 3rd degree black belt and was picked to be on a team that won the U.S. team Taekwondo championships and the World Championships in 2004. That team was inducted into the International Taekwondo Hall of Fame in 2015.

It would be natural to think that someone who has built a successful career and family life wouldn’t have time for too many activities outside of the office, but Coppola’s meticulous plans and focus have allowed him to pursue several activities many only think about, but never attempt, let alone accomplish.

“I’m really focused on my goals,” said Coppola, flipping to pages in his goals folder. “Here’s my next two months, how many days I’m working, how many days I’m traveling, how many days I’m free. This is how I live my life. It’s pretty organized.”

One of Coppola’s rules for himself is he must spend 30 days each year, “on

the ground.” That simply means he goes on multiple-day backpacking trips and goes off-the-grid to give himself time to refocus and rejuvenate. He’s hiked around the world, including hiking to Everest Base Camp and spending two weeks hiking other mountains in the Himalayas.

“Hiking to Everest Base Camp is pretty cool and we hiked a couple mountains around that, but meeting Tashi Tshering and having him guide us for 2 weeks was the highlight,” Coppola said, referencing the legendary hiking guide who was highlighted in John Krakauer’s novel, ‘Into Thin Air,’ which chronicles an ill-fated expedition to summit Mount Everest in 1996. “To hear his perspective of life made the hiking ancillary to the lessons I learned.”

Coppola is the author of five books and has two more books in the works.

The first three were business-related, and the final two delve into his personal life. In “The Fantastic Life,” Coppola chronicles how he organized his life so he could live what the title suggests, and in “What Now? A 5-Prong Approach to Handling Cancer Diagnosis & Treatment,” Coppola details his journey as a cancer survivor and gives advice for others on how to navigate what is a lifechanging process.

“When you’re faced with your own mortality, you want to make sure you can give another lesson to the kids,” Coppola said. “‘The Fantastic Life’ was written with them in mind, and now my weekly blog, LIFEies, as well.”

After he was cancer-free five years ago (he celebrated five years cancer-free with a clean scan in April), Coppola pondered retirement. With that in mind, he made a goal to have lunch with ten people age 65 or older. Coppola gave these lunches the name "chimera," which means something that is hoped or wished for, but is impossible to achieve.

“I had some questions. How did you transition? What did you do right? What would you change? How do you like what you’re doing now?” Coppola said. “I had those 10 lunches and they were fabulous, so for the last five years I’ve just continued them. I’m on my 97th lunch.”

Coppola said that after his third lunch with someone who was fully retired, he knew that he wanted to keep working. He feels that in the last five years since he

was found to be cancer free, he has given more effort to building and maintaining personal relationships and living that fantastic life he wrote about. His four children have all graduated from college and are in the early stages of starting their own families, his Coppola-(Andrew) Cheney team at Lee & Associates is enjoying record numbers and he’s managing to meet all the goals he’s set for himself to date.

“I’ve actually probably sped up my life more. I’m looking for more things to do,

more achievements, more experiences and to really embrace life,” Coppola said.

“Now all of our kids are going to be out of college and are all launched, that’s been the last five years and I really feel good about that. I’ve hiked in another 10 or 12 countries in the last five years. I have great relationships, we’ve really solidified our team here at Lee & Associates to allow me to do that. It’s been a really interesting five years and shows how much you can accomplish in five years if you’re focused."

RUNNING MAN: Craig Coppola competed in the Marathon des Sables in 2001.

MOUNTAIN TIME: The Coppola family during a family trip to the Swiss Alps.

13

NEW TO MARKET A

D

E

OFFICE A THE BEAM ON FARMER DEVELOPER: Mortenson and Urban Development Partners GENERAL CONTRACTOR: Mortenson ARCHITECT: RSP Architects LOCATION: 401 S. Farmer Ave., Tempe SIZE: 182,000 SF VALUE: WND START: 3Q 2019 COMPLETION: 4Q 2020

14 | July-August 2019

MULTIFAMILY B X PHOENIX DEVELOPER: X Social Communities, PMG GENERAL CONTRACTOR: UEB ARCHITECT: Shepley Bulfinch and Fitzgerald Associates Architects LOCATION: 200 W. Monroe, Phoenix SIZE: 225,000 SF VALUE: WND START: May 2019 COMPLETION: Fall 2021

INDUSTRIAL C AVONDALE 107TH DEVELOPER: Eisenberg Company GENERAL CONTRACTOR: Nitti Construction ARCHITECT: Butler Design Group BROKERAGE: Cushman & Wakefield LOCATION: 107th Ave. and Pierce St. in Avondale, AZ SIZE: Four buildings totaling 405,656 SF on 24 acres VALUE: $31 million START: August 1, 2019 COMPLETION: Q1 2020

B

C

F

INDUSTRIAL D 101 LOGISTICS PARK DEVELOPER: Seefried Industrial Properties & Crow Holdings Capital Real Estate GENERAL CONTRACTOR: Wespac ARCHITECT: DLR BROKER: Marc Hertzberg, Anthony Lydon, Riley Gilbert - JLL LOCATION: SWC 101st Ave. & Roosevelt St. SIZE: 652,146 SF in two Class A industrial buildings; 40-acre site VALUE: Approx. $27 million START: June 2019 COMPLETION: Q1 2020

RETAIL E THE STEELYARD DEVELOPER: Capital Development Group GENERAL CONTRACTOR: TBD ARCHITECT: Suite 6 Architecture + Planning LOCATION: Gilbert Rd. And Chandler Heights Blvd., Chandler SIZE: 26,000 SF VALUE: WND START: 3Q 2019 COMPLETION: 2Q 2020

MULTIFAMILY F MILLENNIUM PARK CENTRAL DEVELOPER: The Dinerstein Companies GENERAL CONTRACTOR: TBD ARCHITECT: Cuningham Group Architecture LOCATION: NW of 1st Ave. and W. Catalina Dr. SIZE: 295,000 SF VALUE: WND START: 4Q 2019 COMPLETION: 3Q 2021

15

A new name in the land game

By STEVE BURKS

T

here is a familiar name behind the deals, but it’s a new company that’s making them. SLM Land Holdings is a new venture between three women that is entering the land investment world in Maricopa County and beyond. SLM brings extensive market knowledge and puts land investment opportunities in reach for small investors who are getting priced out of prime parcels as land values rise.

16 | July-August 2019

“Based on my experience in the land business, several friends and family members have approached me over the years about wanting to invest in land.

Quite often they don’t know how to go about identifying the right land parcels, since they don’t have much knowledge or experience investing in land,” said one of SLM’s founding partners, Anita Verma-Lallian. “As land prices rise for a smaller investor, the type of property

that the smaller investor would be able to buy, let’s say for $100,000, is going to be fairly limited and not necessarily in the best location. What our group offers is access to high-end properties which are in strategic locations, that would be unavailable to a smaller investor individually.”

FROM LEFT: Smita Patil Mehta, Anita Verma-Lallian and Eileen Jain Sahai

SLM was formed by Eileen Jain Sahai, an attorney, Smita Patil Mehta, a physician, and Verma-Lallian, who gained extensive training and experience while working with Vermaland, one of the largest land holding companies in Arizona. The venture is an opportunity for VermaLallian to combine forces with two close friends and branch out with their own company, unaffiliated with Vermaland.

The first property that SLM secured was a 120-acre parcel along Interstate 10, just east of Tonopah. The land, which cost $1.54 million, sits in an Opportunity Zone, which is an attractive incentive for developers when they get around to building on the land.

“This particular piece is touching Belmont on one side, sits in an Opportunity Zone, and (the proposed) Interstate 11 is going to be in close proximity. This land had several attractive features,” Verma-Lallian said. “We are very excited that billions of dollars will be poured into these opportunity zones nationwide, so we anticipate there is going to be a lot of development in these areas over the

next ten years.”

SLM is working on closing a second land purchase in Tonopah, and is in the early stages of securing a third property in Pinal County.

“We’ve had a lot of fun doing this, so we’re going to keep going,” Mehta said.

“Our investors are excited about this.”

While Verma-Lallian brings the land investment background, Sahai works closely with corporate counsel to finalize each Offering, and Mehta works to attract investors. SLM has a unique investment strategy, bringing together funds from multiple smaller investors and purchasing land. The first purchase by SLM had investors on a wait list to be a part of that transaction, and Verma-Lallian said the pending second purchase was also quickly sold out.

“On our first purchase, we met with investors and literally after two days we were sold out and we had a wait list,” Mehta said. “We were also able to close early. We have quite a bit of funding lined up and we’re able to move quickly, unlike a lot of groups. We identify the land, negotiate it, and put it in escrow.

We offer a concierge service so our

10 WEST ARIZONA: SLM Land Holdings' first transaction was for a property west of Phoenix that is part of a planned industrial development.

clients can invest without worrying about anything.”

While Verma-Lallian is intimately familiar with the land investment process, she was quick to stress to her partners and investors that it’s different than other real estate investing.

“Everyone has to go into this knowing that to realize maximum appreciation, these deals can be a 10-15 year hold,” Verma-Lallian said.

“Since we are buying undeveloped land, we can acquire it at a low price, however, as the areas develop, that’s when major appreciation will take place. Ten to 15 years ago, Buckeye was similar to Tonopah, now it’s the fastest growing city in the nation. Land about 12 miles east of our first site is selling now for an average of 30 times what we paid for ours.”

“It’s exciting to work with people coming from different backgrounds and getting different perspectives on how to do things.”

17

MULTIFAMILY/SALES

$112M | 677,000 SF

BELLA MIRAGE 3800 N. El Mirage Rd., Avondale BUYER: Milestone Investments SELLER: Priderock Capital Management BROKER: N/A

$93.8M | 381,000 SF

HARPER 4690 S. Lakeshore Dr., Tempe BUYER: N/A SELLER: JLB Partners, LP BROKER: Institutional Property Advisors

$80.4M | 236,674 SF

THE CORE SCOTTSDALE 15333 N. Hayden Rd., Scottsdale BUYER: Starlight Investments, Ltd. SELLER: Greystar BROKER: CBRE

$42M | 233,647 SF

WEST TOWN COURT 8400 W. Virginia Ave., Phoenix BUYER: Goodman Real Estate Inc. SELLER: InterCapital Partners, LLC BROKER: N/A

$39.75M | 246,420 SF

TIDES ON RAIL 1905 W. Las Palmaritas Dr., Phoenix BUYER: Tides Equities SELLER: Henley USA, LLC. BROKER: Berkadia Real Estate Advisors

RETAIL/SALES

$15M | 27,189 SF

15450 N. Scottsdale Rd., Scottsdale BUYER: Optima, Inc. SELLER: DMB Associates, Inc. BROKER: N/A

$13.8M | 59,400 SF

$10.2M | 49,343 SF

$11,750,000 | 44,462 SF

NORTH CANYON RANCH 23425 N. 39th Dr., Glendale BUYER: Pete Coury MD SELLER: Town West Realty BROKER: Taylor Street Advisors

WESTWOOD ON CAMELBACK 2211 W. Camelback Rd., Phoenix BUYER: Behpour Family Trust SELLER: Executive Villas Development Company, Inc. BROKER: SRS Real Estate Partners LA FITNESS 3625 S. Gilbert Rd., Gilbert BUYER: Waugaman Properties SELLER: Brent C. & Deborah I. Berge BROKER: Marcus & Millichap 18 | July-August 2019

SAFEWAY 9890 S. Estrella Parkway, Goodyear BUYER: Warren K. Kellogg SELLER: Kitchell Corporation BROKER: Marcus & Millichap

$9,392,049 | 61,819 SF

It’s the big deals and the brokers who close them that make the market an interesting one to watch. Here are the top notabe sales for the months of May and June.

Sources: Daniel Zawisha at Cushman & Wakefield Research.

OFFICE/SALES

$25.9M | 111,949 SF

2850 BUILDING 2850 E. Camelback Rd., Phoenix BUYER: DRA Advisors, LLC SELLER: AEW Capital Management BROKER: N/A

$25.2M | 117,394 SF

$9,561,940 | 29,352 SF

ONE CHANDLER CORPORATE CENTER 350 N. McClintock Dr., Chandler BUYER: Gramercy Capital Corporation SELLER: VanTrust Real Estate BROKER: CBRE

LINCOLN MEDICAL CENTER I 9225 N. 3rd St., Phoenix BUYER: Welltower Inc. SELLER: CNL Healthcare Properties, Inc. BROKER: HFF

$22.5M | 149,211 SF

$7,810,165 | 33,758 SF

DESERT CANYON 300 2411 W. Peoria Ave., Phoenix BUYER: Drawbridge Realty Management, LLC SELLER: Bridge Investment Group BROKER: Cushman & Wakefield

LAND/SALES

2720 BUILDING 2720 E. Camelback Rd., Phoenix BUYER: DRA Advisors, LLC SELLER: AEW Capital Management BROKER: N/A

INDUSTRIAL/SALES

IMAGERY ©2019 GOOGLE

$37,113,120 | 6.4M SF

W. Indian School Road, Goodyear BUYER: Microsoft Corporation SELLER: First Industrial Realty Trust BROKER: CBRE

$30,790,442 | 308,205 SF

$29.8M | 118,123 SF

8681 W. Washington St., Tolleson BUYER: Investcorp International, Inc. SELLER: Gramercy Operating Partnership, LP BROKER: N/A

$26.5M | 252,300 SF

VISTANCIA PARCEL A28 W. Hummingbird Terrace, Peoria BUYER: Tricon American Homes SELLER: Berger Holdings BROKER: N/A

HONEYWELL 19019 N. 59th Ave., Glendale BUYER: BH Properties, LLC SELLER: Lexington Realty Trust BROKER: Colliers International

$20,325,205 | 16,552,800 SF

$14,651,437 | 115,294 SF

CENTERPOINT 6 W. Olive Ave., El Mirage BUYER: Microsoft Corporation SELLER: John F. Long Family Revocable Trust BROKER: N/A

$19.55M | 7,585,974 SF

BUILDING B 3575 S. 28th St., Phoenix BUYER: Cohen Asset Management SELLER: Kitchell Development BROKER: CBRE

$12,632,160 | 97,456 SF

DESTINATION AT GATEWAY S. Mountain & E. Williams Field Rd., Mesa BUYER: W Holdings SELLER: Demuro Properties, LLC BROKER: CBRE

BUILDING A 3555 S. 28th St., Phoenix BUYER: Cohen Asset Management SELLER: Kitchell Development BROKER: CBRE

$19.2M | 5,052,960 SF PROLOGIS

$8,162,046 | 124,394 SF 4502 W. Monterosa St., Phoenix

NEC of W. Yuma Rd. & S. Bull Rd., Goodyear BUYER: Prologis SELLER: Kohnen Investments BROKER: JLL

BUYER: Exeter Property Group SELLER: David Turner International, LLC BROKER: DAUM Commercial Real Estate Services 19

LEGISLATIVE UPDATE

Legislative session sees wins for economic development T

he Arizona Legislature worked through the Memorial Day Weekend to close one of the longer Regular Sessions in recent memory. The 2019 Regular Session of the Arizona Legislature was positive for economic development issues.

Water, tax reform, infrastructure and technology are only a few of the important issues the Arizona Legislature tackled this year.

WATER Water is a critical resource in our arid climate. Without proper water policy, there is no economic development.

That’s why the Arizona Association for Economic Development (AAED) pushed hard for the passage of the Drought Contingency Plan (DCP). Both Democrat and Republican lawmakers came together to pass the DCP which will help ensure an adequate water supply into the future.

INFRASTRUCTURE The budget passed by the Arizona Legislature and signed by Governor Ducey had a number of infrastructure investments. They included: • $3 million for broadband infrastructure in rural Arizona • $130 million to expand I-17 for 15 miles of northbound and southbound lanes • $57 million for Pinal County water infrastructure • $77 million for infrastructure projects throughout the State • $28 million to widen SR 95 near the Yuma Proving Grounds • $20 million construction of two new traffic interchanges on I-40 just east of Kingman • $10 million for ADOT for design work 20 | July-August 2019

Nicole Snyder AAED

to widen the I-10 from Phoenix to Casa Grande • $10 million for aviation projects throughout Arizona • $6.5 million for a second interchange bridge for State Route 24 near the Gateway/Mesa Airport • $2.8 million to repair the Jesse Hayes Road bridge in Globe • $15 million for Pima Community College Aviation Technology program infrastructure

WORKFORCE DEVELOPMENT The students of today are the workforce of tomorrow. AAED placed a high emphasis on continuing the work of building Arizona’s future workforce. Lawmakers included funding for education programs throughout Arizona. Some of the investments include: • $165 million to fully fund 20% teacher pay raises by school year 2020 • $136 million for District and Charter Additional Assistance • $88 million for school building renewal • $76 million for new school construction • $30 million new dollars for high- performing schools through results- based funding

• $20 million to hire more school counselors and police on campus • $10 million to grow Career and Technical Education at public high schools • $35 million funding for Arizona’s three public universities, ASU, U of A and NAU • $15 million in permanent, ongoing funds expanding Arizona Teachers Academy • $15 million to expand the Pima Community College Aviation Technology Center • $14.2 million for rural community colleges outside of Pima and Maricopa County • $6 million over three years for STEM programming at Maricopa and Pima Community Colleges • $5.8 million to expand Maricopa County Community College’s healthcare offerings • $1 million for Diné College, community college on the Navajo Nation

TAX REFORM The Legislature included tax reforms in this years’ budget. Conformity with federal tax reforms and the ability for Arizona to collect taxes from out-of-state retailers were two of the biggest reforms. The latter creates retail parity for Arizona’s brink-andmortar businesses. The legislature also compressed personal income tax brackets from five to four.

AAED works throughout the legislative session with lawmakers to explain the practical application of these issues. Summing up, the 2019 session was a success for economic development.

Nicole Snyder is the AAED president and is the director of business strategies and client solutions for Johnson Carlier.

Income tax conformity important to all B

y the time you read this, the Arizona State Budget of about $11 billion will have been passed. Without a doubt, the most significant single provision which made passage possible was a compromise between the Governor and legislative leaders on the issue of the state conforming to the federal income tax code moving forward. Many know that this single impasse held passage of the budget up for many weeks beyond the expected 100-day legislative session.

This compromise is important as otherwise Arizona taxpayers would be collectively looking at a $211 million annual and growing state income tax increase. The compromise also represents a step forward for the principle of tax simplicity as the standard deduction will have been increased which decreases the need for taking itemizations and the current state income tax brackets will have been reduced from five to a lower number.

As background, in December of 2017 the Congress passed one of the most sweeping personal and corporate income tax changes since the Reagan era more than 30 years ago. This “Tax Cut and Jobs Act” (TCJA) significantly reduced federal corporate income taxes in order to bring more corporate HQs back to the US and both simplified and reduced individual income taxes for most by limiting deductions and exemptions in exchange for cutting income tax rates and almost doubling the standard deduction.

In 2018, however, the State of Arizona decoupled the Arizona code from the changes made by the federal code after the historic TCJA which translated in a significant tax hike for those that filed state income taxes in April of this year. Understandably then, lawmakers

Tim Lawless

BOMA Greater Phoenix were under pressure to return some of this largesse back to the people moving forward especially as the state surplus has grown to almost $1B. Currently, the five state income tax brackets have rates of 2.59%, 2.88%, 3.36%, 4.24%, and 4.54% and a standard deduction at $5,300 for individuals and $10,600 for couples. Basically, the idea was to eliminate completely the 2.88% bracket pushing those filers to the lower 2.59% and to then shave off varying percentages from the higher rates that were speculative at press time. Hence, we would go from five brackets to four.

Significantly, the compromise would also match the higher federal standard deduction moving to $12,000 filing as individuals and $24,000 as couples which more than doubles each.

The purpose of these reforms was intended to both simplify filing by not needing receipts nor even needing a tax professional but also preventing an ongoing tax increase.

Significantly, the compromise also included changes necessary to better comply with the Supreme Court’s recent “Wayfair” decision in order to now tax internet transactions for out-of-state

sellers and thereby level the playing field with in-state brick and mortar retailers who were at a previous disadvantage.

BOMA of Greater Phoenix strongly supported this particular compromise as a result of stakeholder negotiations on the previous HB 2702.

In short, the retail classification in the archaic and anti-Wayfair compliant Model City Tax Code (MCTC) is put more directly in State Statute as BOMA advocated. This move alone represents about 60% of all revenue of the tax base for cities. This is a big victory for taxpaying firms who want simplicity and a more standardized rather than byzantine tax base making it difficult and costly for compliance.

In short, there is now more direct sales tax accountability for the taxpayer with “Wayfair reform”.

Overall our state income tax system is also now more fair and simple as a result of “conformity” which hopefully will make all of us less reliant on our tax preparers with less need for itemized deductions and retention of receipts.

Tim Lawless is the executive director of BOMA Greater Phoenix.

21

LEGISLATIVE UPDATE

Maintaining Momentum momentum

W

e’ve got a lot to celebrate in Metro Phoenix’s commercial real estate market. Just take a look at some of the highlights.

Unemployment remains a low 4.4 percent.

Chief Executive magazine ranked Arizona the 7th best state in the country for business, up two spots from last year.

For the third year in a row, Site Selector magazine ranked Arizona the No. 1 state in the Mountain West in its Prosperity Cup. Arizona’s Office of Economic Opportunity estimates job growth of nearly 543,000 by 2026 The office vacancy rate in Metro Phoenix stands at 15.4 percent, the lowest in more than a decade.

Net absorption in the office market reached a 10-year high with 23 months of positive absorption. This upward trend is expected to continue.

These statistics all tell the same story – Metro Phoenix is among the strongest markets in the country.

Individuals and companies are choosing to invest here. Many factors contribute to these decisions, but public policy plays an important role.

So how do we keep this momentum going? We can’t rest on our laurels.

Other states are working aggressively to lure companies for the next corporate expansion and to create vibrant communities for entrepreneurs.

Fortunately, adhering to smart fiscal

22 | July-August 2019

Suzanne Kinney NAIOP

policy and good governance will go a long way in keeping us on top.

Here are some specific public policy recommendations that stand the test of time.

Be prepared for future economic downturns: History has taught us that economic expansions can’t last forever. The legislature can, however, take action now to ensure Arizona is in the best position possible to weather a future downturn. This means directing one-time budget surplus funds to one-time expenses such as capital investments in our schools and basic infrastructure as well as muchneeded technology upgrades for state government. Policy makers must resist committing these funds to ongoing fiscal obligations, such as expansions of entitlement programs. Second, the state should continue to pay down existing debt. This includes addressing the accounting gimmick of rolling over

payments to our K-12 public schools into the following fiscal year. And third, we should maintain a sufficient balance in our Rainy-Day Fund to cover predictable future budget deficits and to improve our credit rating so the state can access better terms for any future debt.

Create a more competitive tax code: Major tax policy decisions are looming for our state leaders. They include federal tax conformity, how to tax e-commerce, and which digital goods should be subject to taxation.

As legislators wrangle through these complex issues, we have an opportunity to make changes to areas of the tax code that would help us attract more business investment and create new jobs. As commercial real estate professionals, we see that our high commercial property taxes temper our standing when site selectors are evaluating possible locations for a business expansion.

Meet the educational needs of Arizona students at K-12 and postsecondary levels: NAIOP members are on the front lines of business attraction.

As such, we understand the importance of an excellent educational system and ready workforce. Meeting our state’s promise to increase teacher salaries by 20 percent by 2020 must remain a priority. However, the competition for talent is fiercer than ever. More action is needed to achieve the educational outcomes that will put Arizona in the top tier. New revenue sources will likely be required. As stakeholders to the public education system, the business community must come together to find a balanced and sustainable approach to funding our schools.

The positive economic headlines we keep reading these days did not come about by blind luck. They are the result of careful decisions made by leaders in the private and public sectors. When our elected officials take a light-handed approach to regulations and taxes and keep our state’s fiscal house in order, we stand the best chance to keep our economy on a positive track.

Suzanne Kinney is the president and CEO of the Arizona Chapter of NAIOP.

Climate risk and your bottom line C

limate risk is real. When thirty of the largest global capital investors are hedging their bets against climate risk, it’s time to take notice.

According to Climate Risk and Real Estate Investment DecisionMaking, a 2019 report released by the Urban Land Institute and Heitman, understanding climate risk and its real estate investment implications is a complex challenge for property investors. For the immediate future, the world is seeing an increase in the frequency and intensity of extreme weather events due to climate change.

In the longer run, the consequences of climate risks such as sea-level rise and extreme heat will increasingly highlight the vulnerability of individual assets and locations – and potentially entire metropolitan areas.

Globally, the number of extreme weather events increased by more than 250 percent between 1980 and 2013.

Recognition is growing of the risks these events pose to investment; the 2018 edition of the World Economic Forum’s Global Risk Landscape, which ranks societal, technological, economic, environmental, and geopolitical risks, identified extreme weather events, natural disasters, and the failure of climate change mitigation and adaptation as being most likely to occur and to have the greatest impact globally.

Both the physical and transitional risks associated with climate change have financial impacts for real estate owners and operators. Physical risks, such as catastrophes, can lead to increased insurance premiums, higher capital expenditures and operational

Deb Sydenham ULI

costs, and a decrease in the liquidity and value of buildings. Transitional risks, which center on the economic, political and societal responses to climate change, can see locations, and even entire metropolitan areas, become less appealing because of climate-change-related events, leading to the potential for individual assets to become obsolete.

Assessing and pricing climate risks is an evolving issue for the industry.

With the complexity surrounding the emerging fields of data and technology, many industry players are still evaluating how best to factor potential risks into their actions to mitigate perceived exposure and how to reflect concerns in financial projections.

Tools and technologies are emerging across the real estate sector to help investment managers better assess their risks and to help navigate potential impacts of climate change. This is an emerging market that combines advanced mapping capabilities with risk analysis for real estate under a range of scenarios for

extreme weather events and longerterm climate risks.

The ULI/Heitman report identifies next steps for the industry to improve awareness and understanding should include the following: n Improve reporting on climate risk in annual and quarterly Resilience reports. As was seen with early work on environmental sustainability, this helps create awareness among investment managers and investors and helps drive change. n Use big data to better understand patterns around changes in asset liquidity, valuations, and weather forecasting. n Work with the insurance industry to understand data and gain knowledge on how climate change is affecting premiums and coverage. n Engage with city leadership in vulnerable areas to support city-level commitment to and implementation of mitigating physical and transitional risks.

It is important for the industry to come together as it addresses climate change. There are many opportunities to collaborate to help increase understanding of the topic as well as to develop common standards, and share successful strategies and solutions. The Phoenix Metropolitan area is ground-zero for extreme heat and well-positioned to be a thoughtleader in the challenge to mitigate climate risk and increase resilience of Arizona communities.

Deb Sydenham is the executive director of ULI Arizona District Council.

23

INFRASTRUCTURE

Lane change Long awaited South Mountain Freeway will link the Valley, spark economic growth

By STEVE BURKS

I

t’s just 22 miles, but the impact of the soon-to-be completed South Mountain Freeway will be felt near and far in Arizona.

The first-of-its-kind public-private partnership freeway development in Arizona is nearly 80 percent completed, with stretches of the freeway in the Ahwatukee area already being utilized on short-term basis as work continues.

The $1.7 billion freeway is expected to be completed in November, opening up a much-needed route between the West Valley and the Southeast Valley.

“While the project remains on schedule, it’s worth noting that ADOT is delivering the Loop 202 South Mountain Freeway three years sooner than originally anticipated and at a cost savings exceeding $100 million by using an innovative approach to selecting the team to design, build and maintain the highway,” said Dustin Krugel, public information officer for the ADOT. “The freeway is scheduled for full completion in 2020, although traffic is expected to be using the freeway earlier.”

The public-private partnership operates under the Connect 202 Partners label and is made up of Fluor Enterprises, Granite Construction, Ames Construction and design firm Parsons Brinckerhoff, together with leading highway maintenance services contractor, DBi Services.

Unlike other freeway projects in the Valley, the South Mountain Freeway will open with all of its lanes, three regular commuter lanes and one HOV lane.

Past freeway projects, like the Loop 101 through Scottsdale, opened with fewer

24 | July-August 2019

SOUTH MOUNTAIN FREEWAY FAST FACTS 22 New miles of freeway 41 Bridges 15 Interchanges 12 Miles of sound walls

6 Miles of shared-use path 5 Multi-Use crossings 1 System interchange 1 Pedestrian bridge

25

INFRASTRUCTURE lanes than they have currently.

“The good thing about it is it is being built to its ultimate size, four lanes in each direction,” said Martin Perez, program manager for the City of Phoenix. “There’s not going to be two lanes and then more construction.”

Another unique aspect of the South Mountain Freeway is it will feature Arizona’s first diverging diamond interchanges, one at Desert Foothills Parkway and the other at 17th Ave., both in Ahwatukee.

While all of the news is positive right now, getting to this point in construction didn’t come without some struggles. Krugel noted that there were several difficult construction challenges on the project, including one that will be tackled after the freeway is completed. Krugel cited the challenge to maintain access to businesses and building bridges over the railroad tracks between Van Buren Street and Buckeye Road. Also, crews had to remove heavy rock between 51st Ave. and 32nd Lane in a center segment of the freeway. Also, it took a lot of juggling and adjustments for crews and the public during construction along Pecos Road in Ahwatukee.

And the final challenge will come when the rubberized asphalt is applied during portions of the freeway that currently have traffic, which will require closing lanes.

Throughout the whole process, Krugel said that staff worked overtime to maintain communication with the contractors as well as the public.

“The South Mountain Freeway project communications team distributes a weekly traffic advisory to more than 20,000 stakeholders,” Krugel said. “In addition, this is the first ADOT project that has its own social media accounts (Facebook @SouthMountainFreeway and Instagram @SouthMountainFreeway) to reach its audiences.”

As the finish line for the South Mountain Freeway nears, it marks the end of a long, contentious history dating back to 1985 when the freeway was originally passed by Maricopa County voters. Years turned into decades as community groups and the Gila River Indian Community voiced 26 | July-August 2019

opposition to the project due to the impact it would have on the land.

Ultimately, plans that were satisfactory to the GRIC were made and the freeway project pushed ahead in 2016.

Frequent commuters on the I-10 from the West Valley are anticipating less traffic, as an estimated 120,000 to 190,000 vehicles are expected to use the South Mountain daily by 2035.

Another group is anxiously waiting for the South Mountain to finish: Developers. There are already projects underway, including Trammell Crow Company’s West 202 Logistics Center, a 554,000 square foot industrial building that is nearing completion less than a mile from the new freeway.

“It’s a project that we’re really excited about and we’ve had a ton of interest in it,” said Cathy Thuringer, principal for Trammell Crow Company, who expects to be done with the West 202 Logistics Center by August. “I think we are going to be able to lease it out in a heartbeat.

But this would have had a lower liklihood of happening had the 202 not been built.”

Another development that is already far down the planning road is a mixed-use complex on 100 acres owned by Kitchell Corp. at 59th Ave. and Baseline in Laveen. Already, Sprouts Farmers Markets has made plans to build a new store, and Harkins Theatres recently announced its plans for a 12-screen multiplex.

“There are really a lot of young professionals in Laveen, and now we have a new gateway into that area to really showcase what’s available,” said Lori Collins, Deputy Economic Director for the City of Phoenix. “It gives us the opportunity to create an entirely new employment corridor.”

“Along 59th Avenue, there’s a lot of farmland that is ripe for development,” added Perez. “We have a goal in the city to develop a tech corridor similar to the Price Corridor in Chandler.”

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27

CONSTRU-TECH

HAND POWERED Mobile apps helping Corbins stay lean in face of rapid growth

By STEVE BURKS

T

he past year has been a monumental one for Phoenix-based Corbins Electric. Longtime company executive Mark Fleming retired in January, but before he stepped away, he positioned Corbins for success. The company grew to more than 700 employees and expects to pass the $125 million mark in revenue in 2019, thanks to a forward-thinking leadership team, led by president and CEO Justin Martin and CFO Jessica Grant, who are part of a six-person team of Partners that are guiding the company forward.

“We made an intentional decision in 2015 to get and always be overbuilt on the back end,” said Martin, who has been with Corbins since 2012.

“That way, we could go take advantage of these opportunities without asking how are we going to get this done on all of these business aspects.”

By back end, Martin was referring to the business functions of the company like payroll, purchasing and billing. In 2015, Corbins had 200 employees and began using specially-tailored mobile applications to streamline some of the business tasks.

28 | July-August 2019

“We originally started by developing a daily report and mobile time collection application,” Martin said. “For us, it was about making our processes more scalable. We needed to not only digitize things, take a paper form and turn it into digital format, but really have the data to be smart, connected and searchable and behave in a certain way.”

Since launching those first apps, Corbins has expanded its application development and now has more than 80 apps that are in use by employees, both in the office and out in the field. In 2015, Corbins began developing applications on the Hexagon PPM Catavolt platform.

In 2018, Hexagon changed the updated platform name to Xalt, which is what Corbins is currently using.

Xalt provides a framework for users to build Automated Connected Ecosystems (ACE), which, put simply, means data is connected, collected and accessible through mobile applications instead of spread out among various

accounting, time management or project management programs back at the office.

“It’s like WordPress for websites,” Martin said. “Anyone can build a website because WordPress does all of the heavy lifting. You can still mess it up or make it better. But a lot of the stuff is done for you.

It’s like that, but a little more technical.”

Calling these functions apps makes it easier to understand, but according to Corbins Partner and vice president in charge of business services JD Martin, they are actually connected workflows.

“We started using these workflows as a way of solving problems that we saw,” said JD Martin, who oversees the application development department. “A lot of people are trying to solve problems with Excel templates or simple web applications. We’re able to solve issues with Xalt by connecting databases, running analytics and collecting informaton from the field that we need.

We also use these connected workflows to push info back out so they can make the

best decisions on behalf of the company.”

Justin Martin also noted that Xalt provides much-needed security to go along with connected functionality.

“Neat thing about the platform is that the Cloud provides a connection, but all of the data is stored behind our firewall,” said Justin Martin. “This is important because we do a lot of work for Intel or other clients with confidential information.”

In 2016, JD Martin was the lone developer using the Catavolt platform at Corbins, so the process was slow. The younger brother of a Corbins intern just happened to be finishing his first year studying computer science at Arizona State University and was interested in working at Corbins, developing ways to utilize the Catavolt platform. Corbins brought on Nate Unruh on a part time basis that summer, in between his shifts at In-and-Out. “I just left him the users’ manual and he reversed engineered some of

INFO ON HAND: Corbins Electric project managers and foremen can access a wide variety of data through web-based applications.

29

CONSTRU-TECH

VR HEADSET: Corbins Electric also implements augmented and virtual reality technology on the jobsite.

the things I had done,” JD Martin said. “In three weeks, he was far more proficient and effective than I was in the nine months leading up to that, so by the end of the summer, we knew we had something.”

Unruh leads the now seven-person development team at Corbins that has created 80 apps that are used by the company. Unruh graduated from ASU in May and added a minor in engineering and industrial management to his computer science degree.

“Nate is a member of our middle management, we call it the business leadership team,” said Grant. “He knows what every aspect of the business is working on, what their priorities are and everyone has an app that they want done, so he’s managing that for the business.”

As the staff has seen how valuable and functional the apps are, they have come up with ideas of their own.

“Most of our most experienced field leaders were apprehensive at first but then they saw that they were the developers and what they asked for got built,” Justin Martin said. “Our internal development list is 150 apps long on top of the 80 that we’ve built because the ideas never stop.”

The apps have helped Corbins move into a more digital, connected work environment. For example, handling timecards, payroll and Human Resources tasks have gotten much 30 | July-August 2019

simpler. Before developing applications to handle the time card and payroll process, Grant and her accounting team had to deal with all kinds of different pieces of information, as well as software programs that weren’t compatible. Often, they would have to enter personnel data several times for different tasks.

“We’d get pictures of timecards, poorly handwritten ones that we had to decipher, it was a mess,” said Grant.

“Job processing is better because we’re not trying to decipher what they wrote on a piece of paper or what project they’re working on. It minimizes errors and rework.”

Each application has different versions for different people. Most applications have a foreman, a superintendent, a project manager and an office version with different security and permissions. This insures that only certain information is allowed to be input or updated by certain people.

Another function that the applications are valuable for is tracking which employees are working on what project and what skills and training those employees have. If Corbins moves someone from one project to another, the superintendent or foreman on the new job site can pull up that employee file and see all of the past projects, certifications and performance evaluations for that employee. That allows the project leaders to know what

kind of task they need to put those new arrivals to work on.

There are also applications for tracking tools and materials on each job site. If a specific tool is needed on one job site, a project leader can pull up the app, locate a tool and make a request to have the tool transferred. Once the tool arrives, the project leader goes on the app to confirm it has been received.

“The apps track what the tool is, it’s service history, does it need to be calibrated, the replacement cost,” Justin Martin said. “Other foremen can see what foreman has what tools. I can see if they have a tool I need, they can transfer that tool person to person and it doesn’t have to come all the way back to the office. Our tool loss has decreased dramatically.”

Justin Martin said that all of the applications have made life easier for his foremen. Daily reports, tracking who is on the job site or what materials are needed is all at the foreman’s fingertips on their iPads. This has allowed Corbin’s most skilled electricians to do more training and mentoring on the job, instead of paperwork.

“The focus continues to be on the foremen themselves and making their processes more efficient,” Justin Martin said. “We want to get them back to mentoring and leading this generation of field workforce that we need to grow so badly and having to do less paperwork and administrative duties.”

CONSTRU-TECH

Computerized concrete

System monitors and adjusts product while it’s in transit

By STEVE BURKS

B

uilders like control and they like consistency. What builders seem to be afraid of is technology, since it’s a step into the unknown.

No segment of construction is more stuck in the ways of the past than the companies that make, deliver or work with concrete. But one company is starting to pull the industry into the future with a system that gives concrete contractors the control and consistency that they crave.

GCP Applied Technologies has seen dramatic growth in the usage of its VERIFI In-Transit Concrete Management System. The system uses a series of sensors and hardware installed on ready mix trucks that are connected to the cloud. These sensors test the concrete mixture during transit, collect data and adjust the mixture by adding more ad mixture or water. VERIFI also measures temperature, drum speed and number of revolutions the drum makes. This ensures that the concrete mix is precisely what the buyer requested and is ready to be poured when the truck arrives.

“What we say VERIFI does is it monitors, measures and manages the concrete in transit,” said Ken Riley, Western Region manager for GCP Applied Technologies. “Big thing for the contractors is consistency on the job site. If concrete is showing up with a slump that is consistent, the whole process runs smoother. There are fewer issues with it and it’s just a big impact on the scheduling of the projects.”

The slump of the concrete is simply it’s thickness and how easily it pours and can be formed by the workers on the job site. For contractors, the VERIFI system saves a lot of time with each truck.

“If I know I’m getting the exact same product, truck, after truck, after truck, on the job site, my labor is going to be more efficient and consistent because

32 | July-August 2019

I’m not stopping to add water,” said Derek Wright, president of Suntec, one of the largest concrete contractors in Arizona. “VERIFI is greatly improving the reliability and predictability of the ready mix product that gets delivered on the job site.

“It is probably the most technological innovative thing that we’ve actually seen implemented and making dramatic improvements in the market right now.”

VERIFI’s history goes back more than a decade, but it is just starting to see wide-spread implementation. It was developed by a private company whose research and development team explored ways to manage concrete deliveries.

W.R. Grace and Company licensed the technology in the early 2000’s and in 2011 purchased all of the rights and patents for the VERIFI technology. In 2016, W.R. Grace and Company split into two independent companies, Grace and GCP Applied Technologies.

“For W.R. Grace and now GCP Applied Technologies, VERIFI was a real good fit because we make the chemicals that help the producer in the plant create a quality, high-performing mix,” said Matt Nazarenko, global

marketing manager for GCP Applied Technologies. “Now we have the largest database of concrete properties in the world. We are a chemical company, we are not a technology company and that has started to shift a little bit. We are looking at different technology and how it applies.”

Riley said that there are two ready mix companies in Arizona that currently use the VERIFI system with more looking to come on board.

Company-wide, Nazarenko said that GCP Applied Technologies had a 40 percent increase in the number of VERIFI installations in 2018 and 2019 is on track to surpass that growth percentage.

“We had our first international signing in Asia-Pacific in Singapore, we have an account that’s going to be starting in Australia and we had a customer put it on every truck they had in the United Kingdom,” Nazarenko said. “The interest is there, so we’re seeing some rapid expansion.”

Installation of the system is designed to not interfere with normal operations, as Riley said the installation teams can work when the trucks are parked for the night.

COMING NEXT ISSUE FEATURED TOPICS INCLUDE:  NAIOP  Cool

Places to Work  Adaptive Reuse Projects  Ryan Companies Celebrates 25 Years  Arizona Multihousing Association Update

For additional information call 602.277.6045 or visit azBIGmedia.com 33

INTERNATIONAL INTERIOR DESIGN ASSOCIATION

WORK THAT INSPIRES IIDA PRIDE awards showcase projects from around the globe

By STEVE BURKS

I

n April, the International Interior Design Association’s Southwest Chapter honored the best people and projects of 2018. The 23rd annual IIDA Professional Recognition for Interior Design Excellence (PRIDE) Awards highlighted some of the best work in the industry.

There were 26 different projects that received awards, as well as three students who were honored for their project designs. The PRIDE Awards recognize the transformative work being done by architectural firms in IIDA’s Southwest Chapter, projects that span across the country and the globe.

The IIDA organization has more than 15,000 members worldwide and is active in 58 countries. The group is dedicated to enhancing the quality of life through excellence in interior design and advancing interior design through knowledge, value and community.

SINGLE SPACE

ON THE BOARDS A

DESIGN EXCELLENCE AWARD

Project: Rio Eco2 Venture Location: Phoenix Firm: Krause Team Member: Michael Krause, Kartika Rachmawati Size: 7 million SF Estimated completion date: Summer 2035 Concept Statement: GrowHaus2.0 is an education and neighborhood resource center for the advancement of new technological ideas for agriculture in extreme environments. In an area such as Phoenix that is already considered a food desert, the center will provide the means for its greater surrounding area to nourish themselves. Creating a community-driven food system by serving as a hub for distribution, production, education, and economic opportunity. Real social change happens at the edge between the ideal and the possible. The GrowHaus2.0 will strive to continually push that edge in achieving a resilient future for Arizona.

34 | July-August 2019

AWARD OF MERIT Project: 30 Otis Location: San Francisco, CA Firm: Gould Evans + Canary Team Members: Bob Baum, Curtis Laub, Melissa Alexander, Colleen Cunningham, Kelly Hatch, Katie Andes Size: 467,000 SF Estimated completion date: June 2021

AWARD OF MERIT Project: Ayia Napa Marina Location: Ayia Napa, Cyprus Firm: SmithGroup Team Members: Casey Potash, Simone Schoen, Maja Strand, Scott Steffes, Nhu Lee, Danielle Hoyt, Alexandra Ayres, Bill Ash, John Kretschman, Andrea Reynolds, Bill Jensen, Chad Britnall, and additional support of 40 people. Size: 1.2 million SF Cost: $280 million Estimated completion date: December 2021

B

DESIGN EXCELLENCE AWARD

Project: Rooted Rising Foyer Location: Phoenix Firm: Loewen Design Group Team Members: Tamara Loewen, Bruce Spiegel, Jeanette Mendez, Juan Aguilar, Anna Cutter, Gensler Architecture (Phoenix), Energy Systems Design, Holder Construction, Steve Cohn, Paige Lund, Nigel Hatcher Size: 2,400 SF Completion: April 2017 Concept Statement: “Rooted Rising Stories”, a singular space created as the Entry Experience for this iconic hotel. A glow of deeply rooted history is revealed, as a metaphor to the region. The storyline of “Phoenix to the Third Power”, rising three times from the ashes. A custom glass sculpture made in Prague is the focal element of this experience, and is the basis for the interior design concept, simplified as two

A

B

35

IIDA C

D

AWARD OF MERIT

E

Project: 2800 N. 44th St. 5th and 6th Floor Location: Phoenix Firm: Evolution Design Team Members: Roberta Thomas, Nicole Ford Size: 34,000 SF Completion: November 2018 COMMERCIAL OFFICE 10,000 TO 25,000 SF D

words, “Rooted Rising”. Simple materials threaded together, to create an artful arrival.

The welcoming foyer envelops guests, and builds thought provoking anticipation to what lies ahead.

AWARD OF MERIT Project: Renaissance Square Reposition Lobby One Location: Phoenix Firm: RSP Architects Team Members: Joe Tyndall, Alissa Franconi, Dawn Brown, Kim Bellefeuille Size: 6,000 SF Completion: June 2018

AWARD OF MERIT Project: Monroe Amenity Floor Location: Phoenix Firm: Gensler Team Members: 36 | July-August 2019

Lindsey Feola, Kiana Taie, James Bailey Size: 2,000 SF Completion: November 2018

DESIGN EXCELLENCE

Project: Orcutt | Winslow New Office Location: Phoenix Firm: Orcutt | Winslow Team Members: Vince Rieselman, Alma Gonzales, Jennifer Wilcynski, Daily Wright, Sarah Drennen, Jana Scott, John Cantrell, Ariana Gibson, Mark Yarish Size: 20,000 SF Completion: June 2018 Concept Statement: We created a space to move into that has a sense of place and for the exploration of new possibilities in sustainable design. Our space is hip, cool, healthy and fun, full of daylight and energy for everyone who creates and gathers there.

AWARD OF MERIT COMMERCIAL OFFICE OVER 25,000 SF C

AWARD OF MERIT

Project: Cognizant Waypoint 4 Location: Mesa Firm: Gensler Team Members: James Bailey, Patrick Magness, Kathryn Decker Size: 52,000 SF Completion: May 2018

Project: DM Cantor Law Office Location: Phoenix Firm: Gensler Team Members: Katie O’Donnell, Garrett Smith, Dawn Hart, Manrique Umana Size: 13,000 SF Completion: May 2018 COMMERCIAL OFFICE UNDER 10,000 SF

AWARD OF MERIT

E

Project: Make-A-Wish America Location: Phoenix Firm: Worksbureau Team Members: Laura LeGoullon, Killian McCray, Rob Gaspard, Richard Jensen Size: 92,000 SF Completion: October 2018

Project: Cognizant | Pega Digital Innovation Center Location: Mesa Firm: Gensler Team Members: Katie O’Donnell, Ali Chopra, Patrick Magness, Karina Plotko Size: 4,800 SF Completion: November 2018

AWARD OF MERIT

THANK YOU TO OUR FANTASTIC CLIENTS & INDUSTRY PARTNERS FOR COLLABORATING WITH US ON AWARD-WINNING DESIGNS!

www.gensler.com

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37

IIDA F

clinics, and physical and occupational therapies. An open lobby with central fireplace offers comfortable respite for all users, with access to a cafeteria, gift shop, community room, and chapel.

EDUCATION (K-12) G

AWARD OF MERIT

Project: Young Mind Center Location: Phoenix Firm: Gould Evans + Canary Team Members: Alyssa Hitt, Melissa Alexander, Brant Long Size: 10,000 SF Completion: October 2018 EDUCATION (HIGHER EDUCATION)

DESIGN EXCELLENCE Project: University of Houston Clear Lake Recreation and Wellness Center Location: Clear Lake, TX Firm: SmithGroup Team Members: Casey Potash, Mark Adams, Mark Kranz Size: 81,000 SF Completion: July 2018 Concept Statement: The Recreation & Wellness Center elegantly marries student life with in-demand wellness focused academic programming as the new home to the University’s Department of Exercise & Health Sciences. Academic functions are further supported with new classrooms, a departmental suite, & collaborative learning area including charging bars & various study rooms.

G

AWARD OF MERIT Project: Liv Communities Location: Tempe Firm: SmithGroup Team Members: Casey Potash, Stephanie Oleska, Brooke Waldron, Michelle Romero, Mark Adams Size: 9,000 SF Completion: May 2018 HEALTHCARE F

DESIGN EXCELLENCE

Project: Presbyterian Santa Fe Medical Center Location: Santa Fe, NM Firm: Dekker Perich Sabatini Team Members: Dekker Perich Sabatini, Presbyterian Health Services, Jaynes Corporation, Bohannon Houston, Bridgers and Paxton, Goodmans Interior 38 | July-August 2019

Structures, Contract Associates, Travis Lewis Size: 305,000 SF Completion: October 2018 Concept Statement: To serve an increasing Northern New Mexico health plan membership, Dekker/Perich/ Sabatini designed a new medical center for Presbyterian Healthcare Services in Santa Fe, NM. The 36-bed acute care facility addresses inpatient needs through the use of state-of-the-art medical technology while also providing ease-of-access to specialty outpatient clinics.

The hospital includes 24-hour emergency services, urgent care, diagnostic imaging, surgical procedures, outpatient medical

AWARD OF MERIT Project: Idaho College of Osteopathic Medicine Location: Meridian, ID Firm: Dekker Perich Sabatini Team Members: Dekker Perich Sabatini, Idaho College of Osteopathic Medicine, ESI, Keller Associates, Musgrove Engineering, GL Seaman and Company, Travis Lewis Size: 90,000 SF Completion: August 2018 AWARD OF MERIT Project: University of Texas at Dallas Engineering and Computer Science West Location: Richardson, TX Firm: SmithGroup Team Members: Casey Potash, Mark Adams, Mark Kranz Size: 206,000 SF Completion: August 2018 HOSPITALITY, RETAIL & RESTAURANT H

DESIGN EXCELLENCE

Project: Dust Cutter Restaurant & Bar Location: Phoenix Firm: Loewen Design Group Team Members: Tamara Loewen,

H

Bruce Spiegel, Jeanette Mendez, Juan Aguilar, Anna Cutter, Gensler Phoenix, Eva Michelthwaite, Steve Cohn, Paige Lund, Nigel Hatcher, Holder Construction Size: 3,200 SF Completion: April 2017 Concept Statement: A Modern Urban Saloon, located in a hotel in downtown Phoenix. Design and branding was done to create a modern interpretation of cowboy culture and slang of The Old West. The open plan, and the open garage doors to the street activate interaction by the hotel guests and locals. Authentic, hip and cool.

The “Interactive Community Bar Concept,� was developed, which is integral to the success of this project. An open and strategically designed multi-functioning bar, includes a feature community table, post and perch table, and a four-sided bar, that services up to 60. This modern saloon has been a great success for The Owner and Brand.

I

GOVERNMENT

DESIGN EXCELLENCE Project: Salt River Pima Maricopa Indian Community Justice Center Location: Scottsdale Firm: Gould Evans + Canary Team Members: Krista Shepherd, Aaron Herring, Steve Valey, John Dimmel, Jim Miller, Alyssa Hitt, Joey Gamblin, Melissa Alexander Size: 93,000 SF Completion: April 2017 I

AWARD OF MERIT Project: Phoenix Renaissance Existing Hotel Lobby Remodel Location: Phoenix Firm: Loewen Design Group Team Members:

Tamara Loewen, Bruce Spiegel, Jeanette Mendez, Juan Aguilar, Anna Cutter, Holder Construction, Eva Mickelthwaite, Steve Cohn, Paige Lund, Nigel Hatcher Size: 9,200 SF Completion: April 2017

Concept Statement:

The Salt River Pima-Maricopa Indian

Community has resided within the Sonoran Desert and the banks of the Salt and Verde rivers and has been devoted to living off the land. As a gradual sequence, materials that begin outside continuing inside. In the courtrooms, natural light is brought into the building through lightwells and clerestory glass.

Outside of the courtrooms, a wood slat bench spans the length of the corridor providing a moment of serenity before court. The craft of building demonstrates a deep care for 39

IIDA J

K

the handmade and provides a glimpse into tribal values toward artistry, the outdoors, significance of place, and Community.

AWARD OF MERIT Project: Phoenix Sky Harbor International Airport Terminal 3 Modernization Program South Concourse Location: Phoenix Firm: Corgan Team Members: Molly Milne, Hunter Floyd, Thomas Lusk, Jeff Mangels, Russell Waldrup, John Trupiano, Emily Duncan, Jessica Case, Elizabeth Mendivil, Amy Bray Size: 229,000 SF Completion: September 2018 J

AWARD OF MERIT

Project: Hobbs Center of Recreational Excellence Location: Hobbs, NM 40 | July-August 2019

Firm: Dekker Perich Sabatini Team Members: Emily Allen, City of Hobbs,

Barker Rinker Seacat Architecture, Haydon Building Corp, JVA Consulting Engineering, Pettigrew and Associates, The Ballard Group, Reese Engineering, Norris Design, Water Technology, Soft Play LLC, Business Environments, Travis Lewis Size: 160,000 SF Completion: May 2018 MIXED USE K

DESIGN EXCELLENCE

Project: Colby College Alfond Commons Location: Waterville, MN Firm: Ayers Saint Gross Team Members: Michelle Kollmann,

Nathan Korkki, Julieta Dorame, Allison Wilson, Cooper Melton, Eric Moss, Landry/

French Construction, ES Boulous Electrical Engineering, Johnson & Jordan, Becker Structural Engineering, Sebago Technics Civil Engineering and Landscape, Workplace Transformation Facilitation Size: 105,000 SF Completion: August 2018 Concept Statement: Colby College Alfond Commons is a 5-story, mixed-use facility and the flagship component of a revitalization investment in downtown Waterville. A diverse student experience program, reflective of their unique culture, is housed within. The ground level is a collection of lounges, wellness, retail and a signature community forum, designed to foster engagement by hosting city council meetings, lectures and more. A live-learn community on the upper levels is comprised

L of residential, academic and social lounges.

The built environment focuses on a sense of place, capturing local character and connecting institution and community. Visual and physical connections create continuity between spaces and blurs boundaries. The project is seeking LEED Silver.

L

DESIGN EXCELLENCE

Project: Rise at State College Location: State College, PA Firm: Shepley Bulfinch Team Members: Carmen Moussa, Joe Herzog,

Tom Chinnock, Pete Rasmussen, Cassandra Lemon, Paul Marquez, Andrea Rose, Nicholl Hubbell Size: 332,000 SF Completion: July 2018 Concept Statement: Rise at State College offers an amenity-rich, mixed-use housing opportunity to a mix of young professionals, undergraduates, and graduate students.

Considered a signature building by local officials, this is the first project in a new zoning district developed to revitalize the main gateway into State College. The 186-unit project is situated on the edge of campus. With a historic focus on agriculture, the present-day Penn State has become a leader in engineering. Rise combines a blend of multi-family housing with ground level commercial spaces, a mix that helps solve a lack of affordable housing available to students and the greater community.

M

AWARD OF MERIT Project: Rise on Apache Location: Tempe Firm: Shepley Bulfinch Team Members:

Carmen Moussa, Joe Herzog, Jonah Busick, Calvin Cangco, Andrea Rose, Aaron Escamilla Size: 665,000 SF Completion: July 2017 STUDENT M

DESIGN EXCELLENCE

Student: Stephanie Hernandez Project: ILF International Law Firm Location: San Francisco, CA Team Members: Jillian Kelley Size: 14,000 SF Completion: December 2018 Concept Statement: International

Law Firm (ILF) is a global company with an established portfolio representing large and small agencies. The South of Market District is popular among young businesses as the industrial warehouse character is relaxed and casual compared to a typical corporate building. During the discovery phase, the two connection points between ILF and their

target market are the guiding principles of humility and confidence. ILF’s clients are brave entrepreneurs yet understand the need for a supportive network. Humility and confidence may be two extremes, but when in equilibrium, one can amount to great success. The project intent is to balance and celebrate the two different extremes seen in their company culture, market sector, and neighborhood.

AWARD OF MERIT Student: Kelsey Williams Project: Broken Boundaries Location: Phoenix Size: 40,000 SF Completion: December 2018

AWARD OF MERIT Student: Julia Lopez Project: Vertigo Location: Phoenix Size: 160,000 SF Completion: May 2018

41

WE ARE HERE

Celebrating women in healthcare design With a team of nearly 60% women, ARCHSOL is dedicated to creating healthcare spaces designed to accommodate the needs of a diverse population.

Congratulations to Lori Aune, our own Director of Operations, on being named one of AZRE's Most Influential Women of 2019!

AZRE RED Awards Real Estate and Development 2017 Winner

Healthcare Leadership Awards 2018 Finalist

8900 E. Bahia Drive, Scottsdale AZ 85260 Main | 480.471.8267 archsolteam.com

IN COMMERCIAL REAL ESTATE FOR 2019

By MICHAEL GOSSIE

T

here are many adjectives that could be used to describe all of the 2019 Most Influential Women in Commercial Real Estate. Innovative.

Driven. Brilliant.

But that doesn’t mean they don’t all have personality traits that have gotten them into trouble and caused a bump or two on their paths to success.

“An executive coach once told me that my reach for perfectionism could be a hang-up to getting things done,” says Denise Nunez, senior vice president at NAI Horizon.

So how did Nunez overcome that quest for perfection?

“I learned how to balance a need for meeting high expectations with what I was actually able to achieve,” she says.

When her colleagues think of Kimberley Shapiro Poole, vice president of business development for Skanska USA Building, many describe her as strategic and forward-thinking. That’s a good thing, right? Think again.

“I’m a problem solver,” Shapiro Poole says, “so it’s my instinct to want to jump ahead and find a solution right way, so I have to remind myself to take my time, work with my team and come up with the best, most relevant and appropriate strategy. Early engagement and early buy-in saves time, energy and money.”

For some of the other Most Influential Women in Commercial Real Estate, the traits that get them in trouble can be a little more obvious.

“Let’s just say I have been known to be outspoken,” jokes Bettina Hunt, vice president of leasing for Healthcare Trust of America. “Although I prefer straightforward conversations, I am learning the art of being more tactful.

There is definitely a skill in knowing how and when to say things and I am grateful that it is never too late to learn.”

But there is a lot more to learn about this year’s Most Influential Women in Commercial Real Estate. Get to know them a little better on the pages that follow and join them at a dinner celebrating them on Aug. 22, 2019. For details, visit azbigmedia.com.

MOST INFLUENTIAL WOMEN Lori Aune Director of operations ARCHSOL Architects

Focused on healthcare design, Aune’s 30-plus years of experience is a synthesis of strategic skills developed through interactions with clients and colleagues alike. Aune promotes innovative approaches for teamwork that result in maximized results for ARCHSOL’s clients.

STRENGTH: “Curiosity. I am forever-curious. I believe an environment of curiosity brings out the best in people. My leadership style is fueled by an intrinsic desire to encourage and evoke the talents that are inherent in all of us. My innate, genuine sense of curiosity correlates to ARCHSOL’s success—it causes me to ask questions, understand, empower and promote both my teammates and clients. When curiosity is stoked, creativity thrives.”

Lisa Buelna Director of business development hardison/downey

SOURCE OF PRIDE: “The

creation, with my counterpart at Kitchell, of Build FORE Good, our annual charity golf tournament.

Over the past 6 years our trade partners have helped us raise more than $600,000 for local charities. Handing over a big check every year to people who deserve it way more than I do feels pretty great.”

STRENGTH: “I’m ultra-competitive — maybe to a fault sometimes.

But my passion for succeeding and winning has helped both my personal career growth, and — I hope — hardison/downey win work.

Additionally, in a male-dominated industry, I have no problem taking crap — and I will give it right back, and then some.”

Lindsey Carlson

Senior vice president, Arizona Colliers International Carlson specializes in tenant and landlord representation for the leasing and sale of office properties.

She is a skilled negotiator focused on providing exceptional service and strategic solutions that align with her client’s objectives.

SOURCE OF PRIDE: “Helping my client, an emerging

company, locate and negotiate a unique real estate solution which resulted in the re purposing of former car dealership. Through creativity and problem solving we were able to overcome many challenges and the result is a thriving campus where they have experienced great success. Working strategically to come up with unique solutions that allow my clients to thrive brings me the most satisfaction.”

44 | July-August 2019

Congratulations to Kristine Newman and each of the 2019 Most Influential Women in Business honorees!

Thank you for your leadership and for all you do to make Arizona a better place.

Kristine Newman Sr. Vice President Finance mccarthy.com

45

MOST INFLUENTIAL WOMEN Frances J. Haynes

Partner Lewis Roca Rothgerber Christie Haynes is the chair of Lewis Roca Rothgerber Christie’s Real Estate Industry Team.

SOURCE OF PRIDE: “I am most proud of the long-standing, trusting relationships I have developed with my clients. My clientele is comprised of individuals and companies of varied sizes/ business scopes. I am very privileged to have represented many of the same clients for over 20 years in which these relationships continue to be both personally and professionally rewarding.”

STRENGTH: “The combination of innate curiosity and persistence results in a lawyer who digs deep and doesn’t give up. This combination has helped me succeed and it comes pretty naturally to me.”

Jill Hegardt

Vice president of entitlements DMB Associates Prior to DMB, Hegardt worked in the public sector, including working as the planning director for Maricopa County. She is also currently the chair for Valley Partnership and Ballet Arizona.

SOURCE OF PRIDE: “Having worked in both the public and private sectors and having the opportunity work on many significant development projects and public policy issues over the years, my most satisfying accomplishments have been when I’ve been able to help people solve their problems and achieve their goals.”

STRENGTH: “Being a good listener has always been effective for me. Listening and understanding what people want has been key in accomplishing my goals.”

Bettina Hunt

Vice president of leasing Healthcare Trust of America Hunt brings more than 20 years of commercial real estate experience to her role at Healthcare Trust of America. Her portfolio includes more than 1.5 million square feet of medical office buildings in the Phoenix and Tucson market.

STRENGTH: “Being industrious has always proven to be advantageous.

There is no downside to being honest, reliable and hard working. My strong work ethic compels me to look for ways to improve what I do and to find satisfaction in doing it.”

TRAIT THAT CAN BE TROUBLE: “Let’s just say I have been known to be outspoken. Although I prefer straightforward conversations, I am learning the art of being more tactful.”

46 | July-August 2019

CONGRATS

LISA!

Lisa is an integral part of the h/d organization, continuing to display her dedication and commitment to the firm and our local contracting community.

We cannot imagine anyone more deserving of this designation and we are thrilled to see her leadership recognized amongst an outstanding group of leaders.

LISA BUELNA

DIRECTOR OF BUSINESS DEVELOPMENT

CONSTRUCTION MANAGEMENT

GENERAL CONTRACTING

www.hardisondowney.com

DESIGN/BUILD

MOST INFLUENTIAL WOMEN Teri Jones

President of the Building Group Sundt Construction Jones brings 40 years of experience in the construction industry to her role as president of the Building Group, which is responsible for more than $800 million worth of work this year across Arizona, California, New Mexico and Texas.

STRENGTH: “Being a good listener and having a relentless, never-give-up attitude. Construction is about solving challenges. Listening to all aspects of a challenge and staying focused is key to getting to a viable solution.”

BEST CHILDHOOD MEMORY: “Traveling across country with my

grandparents in their 1967 Cadillac when I was 10 years old. It ignited my passion for traveling to places I’ve never been before.”

Susan LaGanke Senior managing director, project and development services Cushman & Wakefield

LaGanke leads Cushman & Wakefield’s National Mid Cap Multi-Market Practice and Southwest area comprising Phoenix, Denver, Salt Lake City, and Las Vegas.

SOURCE OF PRIDE: “Successfully growing project management businesses. One of the reasons I have been able to grow each of my markets or platforms is that I take pride in really connecting with people. My longevity in the industry, business acumen, and attention to details, enables me to ask all the right questions to fully understand what each Client needs to provide the right solution. The trust that I build with both internal and external stakeholders is very rewarding.”

Karyn MacVean

Broker Keyser Aerospace Team In addition to her work at Keyser leading the Aerospace Practice Group, MacVean is also helping to guide the effort for an FAA-approved spaceport here in Arizona.

SOURCE OF PRIDE: “I am proud of the work being done around the spaceport initiative because, at the end of the day, it means we’re helping to improve the Arizona economy by bringing quality jobs and educational opportunities to Arizona.”

BEST CHILDHOOD MEMORY: “My favorite childhood memory is running

the Central Avenue Bridal Path every day after school with my high school track teammates. Being surrounded by supportive people who encouraged and helped me to become a better version of myself, filled me with warmth that has far surpassed my high school years.”

48 | July-August 2019

LEADING THE WAY LINDSEY CARLSON

AZRE

Most Influential Women of 2019 Congratulations to Lindsey Carlson, senior vice president, Colliers International in Arizona, on being honored by AZRE as one of the Most Influential Women of 2019.

“Lindsey Carlson exemplifies all of the personal and professional virtues that commercial real estate professionals strive to achieve,” says Bob Mulhern, senior managing director of Colliers International in Arizona. “Lindsey’s personal integrity, her client service mindset and her dedication to outstanding professional organizations such as AZCREW are testimony to her leadership in the industry.”

49

MOST INFLUENTIAL WOMEN Kristine Newman, CPA Senior vice president McCarthy Holdings

Newman evaluates and analyzes strategies to deploy and diversify capital for the benefit of the company’s employee-owners.

SOURCE OF PRIDE: “I am most proud of being an integral

part of McCarthy’s Southwest Region leadership team to help deliver exceptional results for clients and grow the region’s revenue by more than 200 percent during my 13 years serving as controller and vice president of finance. In this role, I also helped launch the McCarthy Partnership for Women, a national resource group that supports the recruitment, development and retention of women in our industry to broaden diversity of perspective. I am proud to work with a company that prioritizes this culture.”

Denise Nunez Senior vice president NAI Horizon

Nunez is a commercial real estate agent with more than 25 years of focused self storage expertise.

SOURCE OF PRIDE: “I finished

2018 as the top producer at NAI Horizon. It represents hard work, persistence and patience.

Working in what is still considered a male-dominated industry, I am proud of that accomplishment and hope to attain that same ranking for 2019.”

STRENGTH: “Being well organized, dependable, efficient and a good communicator have helped me to excel. Applying these qualities to each deal gives my clients what they expect and keeps them turning to me for their next deal.”

Kimberley Shapiro Poole Vice president of business development Skanska USA Building

A 27-year veteran of the architecture, engineering and construction industry, Shapiro Poole’s expertise is in mission critical, healthcare, manufacturing, aviation and higher education work.

She is a member of the Skanska Phoenix leadership team.

SOURCE OF PRIDE: “I take great pride in having a significant impact on the strategic growth of Skanska’s Arizona office. Organically growing a business is a difficult challenge. Together, with my team we’ve done just that. It’s very rewarding to help create positive change in our community while at the same time build long-lasting client relationships and solidifying the right projects for our team in such a competitive landscape.”

50 | July-August 2019

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azBIGmedia.com 51

EAST VALLEY

RURAL TURNING URBAN

By STEVE BURKS

T

empe is transforming into the Valley’s second urban center, as high-rise buildings begin to fill in around Arizona State University, one of the biggest development magnets, if not the biggest, in Arizona. Much of that development is occurring along the traditional avenue, Mill. Currently, there are four major projects in the Mill Ave. corridor set to be completed in 2019 or early 2020. Those projects, the Westin Tempe, Mirabella ASU, Tempe Hilton Canopy Hotel and The Local, will do much to add to the urban feel of Tempe.

But Mill Ave. isn’t the only area of rapid development in Tempe, as the urbanization of Rural Road is well on its way.

Currently there are four major construction projects underway along Rural Road, north of University and spanning across Tempe Town Lake where Rural technically turns into Scottsdale Rd. The most notable project is the massive Watermark development on the north shore of Tempe Town Lake. The 656,041 square foot structure is rapidly taking shape, as is the neighboring Aura Watermark Apartments. Those two structures dominate the north shoreline.

“We’re really following through with the vision that we’ve had all along to have buildings around the lake that compliments it,” said Tempe Mayor Mark Mitchell. “It’s exciting to see The Watermark grow and it’s

52 | July-August 2019

going to complement what (the Novus Innovation Corridor) is doing and all of the other Class A office space. You can’t have enough Class A office space right now. It’s really the center of the Valley now.”

While Watermark is shaping the north side of the lake along Rural Rd., the Novus Innovation Corridor enters Phase 3 of its massive development along Rural Road south of the lake. The first two phases were the five buildings and 2.1 million square feet of space that comprise Marina Heights. Phase 3 is the transformation of the northwest corner of Rural Rd. and University Dr. Two projects are already underway in Phase 3 of the Novus Innovation Corridor. Mortenson Construction is working on a 259-room dual branded Hyatt House + Hyatt Place hotel, which will be 151,000 square feet and open before school starts in fall of 2020. The seven-story hotel will feature a rooftop pool, bar and outdoor gathering areas, as well as a restaurant and bar on the ground floor.

“It’s pretty exciting for me, personally, to have a great hotel coming out of the ground on Day 1 here at Novus,” said Charley Freericks, senior Vice President for Catellus, the developer of the Novus Innovation Corridor along with Arizona State University. “As master developer, our commitment is to attract world-class businesses and developers to the Novus Innovation Corridor and champion and

ON THE RISE IN TEMPE: Major developments in Tempe are, from top to bottom, The Watermark and The Aura at Watermark, The Local, and Hyatt House + Hyatt Place Hotel.

celebrate the vision for this world-class development. We’re confident that the Hyatt flag will serve as a magnet for other major companies to bring their newest and most progressive ideas and projects here to Novus.”

The other project underway is a 175,000 square foot, Class A office project that Ryan Companies is building.

The hotel and office projects will soon be joined by a multifamily residential project as well as more office space, as the Novus Innovation Corridor rises up along both sides of Rural Road.

“We realize that this is an opportunity to redefine the north end of our Tempe campus, our largest, most research intensive, oldest campus,” said Dr. Morgan Olson, Arizona State University Vice President who oversees the university’s development. “We’re the largest research university in the country and we’re increasingly global in terms of our activities. We’re looking for high-quality organizations that value that type of relationship and we see that with what we have happening here in the Novus Innovation Corridor.”

The skyline along Rural Road north of University Drive will be transformed by the Novus Innovation Corridor, as office buildings, apartments and retail projects fill in the entire half-mile stretch to Tempe Town Lake and then eastward to McClintock Rd. “The Novus Innovation Corridor is projected to bring 24,000 jobs and 5,000 residents and that’s going to grow our corridor,” said Mitchell. “This is going to help Tempe provide the lifestyle experience that really fits into our urban core in the city.”

And, it’s going to continue to provide the much-needed employment as well as residential for our city where families will want to live, work, play, as well as attend the best university in Arizona State University.”

53

EAST VALLEY EV PROJECT UPDATES

Tempe The Local JE Dunn Construction is nearing completion of Forum Real Estate Group’s mixed-use project that will feature 286 apartments and a ground floor, Whole Foods Market on the NW corner of University Dr. and Ash Ave. Mark-Taylor Residential is the management company for the apartments.

Updated completion date: Apartment leasing has begun, Whole Foods to open in October The Grand Phase 2 Exterior work is completed and WhitingTurner crews are working on interior finishes of the 352,000 square foot, DAVIS designed office building. The Grand at Papago Park, developed by Lincoln Property Company, will ultimately bring in 1.8 million square feet of office space, and 1.4 million square feet of multifamily, hospitality and retail product.

Updated completion date: July 2019 Westin Tempe CAI Investments is very close to delivering the latest high-end, full-service hotel to downtown Tempe. The 290-unit hotel is located on Seventh St. between Mill Ave. and Myrtle Ave. Designed by RSP Architects, the Westin will rise 18 stories and include a rooftop pool and lounge.

Updated completion date: August 2019

54 | July-August 2019

Alliance Broadstone Rio Salado Tempe has a sliver of land that sits east of the Loop 101 along Rio Salado Pkwy., and that is where the 276-unit Broadstone Rio Salado is rising up. The Alliance Residential luxury apartment complex is within walking distance to Sloan Park, spring training home of the Cubs, and a very short drive to either Mesa Riverview or Tempe Marketplace.

Updated completion date: First apartments to open August 2019 Chandler The Lotus Project Conor Commercial Real Estate is just over a month away from delivering the 473,516 square feet of industrial space in four buildings in this prime location at the confluence of the 202 San Tan Freeway and Interstate 10. McShane Construction is expected to finish up a month ahead of schedule and CBRE has already preleased 25 percent of the space, including a full building lease on Building 3 (118,383 SF).

Updated completion date: August 2019 Allred Park Place The latest phase of this massive development along Price Rd., south of the Loop 202 will deliver more than 600,000 square feet of office and high-tech research and development space. Willmeng Construction expects to finish on buildings

15 and 16 in July and buildings 17 and 18, home of the new Orbital ATK campus, will be finished in September. CBRE has already fully leased the 150,000 SF Building 16 and has leased 40,000 SF of the 120,000 SF in Building 16.

Updated completion date: September 2019 San Valencia This Mark-Taylor apartment community is part of a boom of new complexes being developed along Germann Rd., just south of the Loop 202. San Valencia is the largest multi family residential project to be recently built in Chandler with 556 units.

Updated completion date: Community has begun renting and expects to be fully completed by October 2019.

Chandler Freeway Crossing This Mark IV Capital development will deliver 153,370 square feet of office space to the Price Freeway corridor.

This buildinig is Building No. 4 in the development, with another Class A building in the planning stages.

Updated completion date: August 2019

TEMPE: A rendering of what the Novus Innovaiton Corridor will look like along Rural Roaad in Tempe.

Gilbert Gilbert Spectrum - Phase 1 The building, known as Building One, is one of five new buildings – totaling more than 435,000 square feet – that SunCap Property Group will develop at Gilbert Spectrum. Graycor Construction is making progress on the 135,745 SF flex industrial building that sits at the southwest corner of Elliot and McQueen roads.

Updated completion date: July 2019

TOP TO BOTTOM: The Grand Phase 2, San Valencia, Metro East Valley Commerce Center II, Fat Cats.

Gilbert Crossroads Business Park EastGroup Properties is launching a fourbuilding, two-phase industrial park on land near Gilbert and Germann roads. The first phase is two buildings, one 58,000 SF and the other 82,000 SF, both speculative buildings.

Updated completion date: November 2019 The Commons at Rivulon, Buildings C and D Layton Construction is currently working on a pair of two-story office buildings, one 102,400 SF and the second 97,250 SF. These two Class A office projects developed by Nationwide Realty Investors sit right next to Deloitte’s new Arizona offices along Pecos Rd., just east of Gilbert Rd. Updated completion date: Spring 2020 Mesa The Landing at PMG Marwest Enterprises is delivering 281,050 SF of Class A industrial product to Mesa’s Gateway Area. In total, there are six buildings at The Landing, ranging in size from 11,945 to 112,748.

The project is located on the southeast corner of Ray and Sossaman roads. CBRE has already signed three tenants for the property.

Updated completion date: June 2019 Metro East Valley Commerce Center II Graycor Construction is nearing completion of this two-building, 363,530 SF light industrial project for Metro Commercial Properties. The project is located on 21 acres on the southwest corner of Auto Center Drive and Horne Street.

Updated completion date: July 2019 Fat Cats — Family Entertainment Center A.R. Mays Construction is currently building this 64,050 SF family entertainment center at 5846 E. Longbow Parkway. The center features eight theaters, 20 bowling lanes, arcade, ninehole glow in the dark mini golf, party room, virtual reality area, bar and restaurant.

Updated completion date: November 2019 55

ARE YOU IN THE KNOW?

FIND OUT NOVEMBER 2019

AZRE Magazine combines the top people to know with the top projects to know—all in one annual issue. Let PTK Magazine introduce you to the best commercial real estate people and projects that define the industry. Make sure you’re in the know, and pick up a copy of PTK when it launches in November.

2019

ABA

DEVELOPING THE FUTURE Arizona Builders Alliance partners with Build Your Future campaign for recruitment and education for construction careers By ALYSSA TUFTS

58 | July-August 2019

T

he road would look pretty sparse if there weren’t buildings; now, with more construction projects underway than ever and workforce shortages, some exciting developments are being stalled until the high demand for qualified workers is filled.

The way to fill that gap? Recruitment and education. Professionals and associations in the construction industry are encouraging young people to pursue careers in construction by raising awareness of a stable and challenging career that’s wellpaying, has opportunities to gain experience and advance your career and see tangible results of your work where people will make memories, work, live and enjoy.

59

ABA

Marty Hedlund

Jennifer Mellor

Derek Wright

Arizona Builders Alliance (ABA), which focuses on education through craft training to management education; networking and business development opportunities and legislative advocacy on behalf of the commercial construction industry, is working with Build Your Future (BYF), a national campaign that brings awareness to construction careers through recruitment, education and local partnerships to develop the next generation of construction professionals.

those organizations could spread the campaign’s message and contribute to its purpose as a collaborative effort, Mellor says.

Jennifer Mellor, chief innovation officer with the Greater Phoenix Chamber Foundation says the Chamber focuses on four workforce collaboratives: cyber security, construction, healthcare and financial services. Mellor says the Chamber Foundation has been approached by the construction industry for years inquiring about collaborative efforts in workforce development.

“The Chamber decided to get involved because construction is one of the thriving factors of our economy.

We are now seeing and hearing quite often that construction projects are either being delayed or in some cases being put on hiatus because of the lack of a qualified workforce. And we know from an economic development standpoint if we’re going to grow our economy, we have to have the people to build the buildings.”

The Phoenix-Mesa-Scottsdale metro area added 16,600 new construction jobs between April 2018 and April 2019.

The Chamber Foundation partnered with the ABA, the American Subcontractors Association of Arizona (ASA-AZ) and the Construction Financial Management Association (CFMA) on the Build Your Future campaign because the chamber knew 60 | July-August 2019

“The Greater Phoenix Chamber Foundation launched a construction workforce collaborative about three years ago, where we were bringing construction employers together and talking about their workforce

134,900 people are working in the construction industry today, an increase from 80,000 in 2011.

Per the 2019 Construction Hiring & Business Outlook, 78 percent of contractors report having a hard time finding qualified workers to hire.

155,000+ job openings in construction in Arizona between now and September 2022.

63 percent of firms plan to increase investments in training and development in 2019, up from 52 percent at the beginning of 2018.

71 percent of companies with more than $500 million in revenue plan to increase investments in training; and 59 percent of firms with $50 million or less in revenue. *All According to the Associated General Contractors of America

Dan Puente

challenges,” Mellor says. They went to education programs such as Metro Tech High School, EVIT and GateWay Early College High School and found great programs, but some had been put on hiatus because they had additional capacity for training. “Our employers were looking to hire thousands, and only had 12 to 20 students going through these programs; so our employers came back and said we needed to do a campaign that focused on the importance of the construction trades,” Mellor says.

Dan Puente, CEO of DP Electric, says the ABA supports the construction industry through education, training, outreach and networking, however they don’t have the resources to handle statewide workforce development.

“That is why the partnership with BYF is so important and is strictly focused on recruitment and changing the perception of career paths in the construction industry,” Puente says.

“Part of ABA’s strategic initiative is to assist with the monumental task of creating a viable, professional and craft workforce for the construction industry,” says Marty Hedlund, regional vice president of Sundt Construction. “A lot of doing that is taking the 300+ members of the ABA and rallying that group of businesses around the concepts to get the word out and help with the professional image of the construction industry.”

“The organization engaged with the Build Your Future campaign because they see the need for real change. Many of its board members and members

ABA are engaged in this effort,” Puente says. “DP Electric believes these grassroots efforts are exactly what the industry needs and along with General Contractors and other Subcontractors who have joined the steering committee (of the ABA). DP Electric understands the importance of workforce development in the construction industry and the company knows that as a team, more can get done to truly grow the initiative and educate the public. It takes a lot of hard work to get the community involved and it would have been very difficult for the ABA to go it alone, so that is why the group effort is important.”

Companies involved have invested over $1.5 million for a three-year campaign, Mellor says. “Build Your Future is a national campaign out of the National Center for Construction Education and Research (NCCER), so we’ll be launching a localized Build Your Future Arizona campaign in September 2019 around Labor Day.” Mellor says the launch will primarily be a marketing and branding campaign with social and digital media messaging and signage including billboards across the Valley, in addition to strategic partnerships such as Arizona Construction Career Days in November.

“The marketing campaign will feature messaging aimed at changing the perception of construction,” Puente says. “The message of the BYF campaign focuses on professionalism in the construction industry and changing the outward perception of the industry in the community. Many people perceive the industry as one that people go into because they are not smart enough to go to college. People in the ABA, BYF and the industry know this is far from the truth. This campaign is geared towards educating the public that construction is a professional industry, where you can grow and make a good living, therefore setting up your life in a positive manner.”

Derek Wright, president of Suntec Concrete, says the Build Your Future campaign is helping support the next generation of construction 62 | July-August 2019

professionals by “creating awareness and telling the story of opportunity in the construction industry.

Regardless of the specific trade, there are opportunities for young, talented tradesmen who want to choose this career path,” Wright says.

The Build Your Future campaign raises awareness about the construction industry as a successful career “through extensive communication on training, education, compensation and benefits that are available and without having to incur the college debt of other careers,” Wright says. “ABA’s industry workforce

initiatives coincides very well with Build Your Future’s focus to develop the next generation of builders.”

The ABA will be tapping into the national Build Your Future campaign’s resources that have proven successful in other states and making the collateral relevant to Arizona’s campaign Puente says. Some of those materials include videos of real life success stories with construction professionals; a variety of brochures, infographics and posters and resources about career paths in construction and education and

ABA training options.

“I like the videos where they interview young men and women who are choosing construction as a career path,” Hedlund says. “One of the things that always attracted me to this industry is what many people say about it—that they love to turn around at the end of the day and see the tangible results of their efforts. It’s daily, weekly and monthly and it may be even more so on the project end time when you look at something that didn’t used to be there and say, ‘I contributed to that.’

Those kind of videos of young people saying that makes me recall my younger days in the business. It makes me remember how many times my children say to me, ‘I know Dad, that’s one of the buildings you built’ when we drive by.”

Mellor says the campaign is aimed at changing a misperception that the construction industry is not

64 | July-August 2019

technologically advanced. “It’s very innovative in adopting technology, they use iPads to view blueprints and drones to take photos to measure out job sites.”

“Our industry is changing with technology and innovation regarding 3D and virtual technologies, AI and analytics,” Hedlund says. “I encourage young people to embrace it and recognize that even though people in our industry still have to use equipment, we’re also figuring out ways to improve production and manufacturing technologies to be more efficient.”

In addition to innovation with technology, Hedlund says an attractive aspect of the construction industry is the variety because there are opportunities to work on different sites.

“Whether it’s in the skilled trades or in supervision, it’s a grand challenge to climb that ladder. That’s a great feeling to know that everything you’re doing

is helping contribute to a tangible successful outcome,” Hedlund says.

Puente says the partnership with BYF and ABA will be successful because of the commitment of the companies and the people engaged within the community. “This group effort is long overdue as it has been an issue for many years. With the economy as it is today, the entire industry is having difficulty growing their workforce to meet the needs of the current demand. It affects developers, owners and contractors across the board in areas such as safety, quality and productivity. It also affects workforce quality of life as more demand is required causing more stress that comes from working longer hours,” Puente says.

According to the Associated General Contractors of America, the PhoenixMesa- Scottsdale metro area added 16,600 new construction jobs between

ABA “Our goal is to increase the number of qualified applicants that are going to the employers and also to ensure that we’re filling every classroom and training program to capacity because the need is that great.”

– Jennifer Mellor April 2018 and April 2019 and 134,900 people are working in the construction industry today, an increase from 80,000 in 2011.

Per the 2019 Construction Hiring & Business Outlook, 78 percent of contractors report having a hard time finding qualified workers to hire.

The BYF campaign hopes to change that statistic. “Our goal is to increase the number of qualified applicants that are going to the employers and also to ensure that we’re filling every classroom and training program to capacity because the need is that great,” Mellor says. “We’re projected to have over 155,000 job openings in construction in Arizona alone between now and September 2022. The need is really significant, and we know that the campaign’s messaging works; we’ve been partnering with a national campaign as well, which is part of the Build Your Future brand, and they’ve done some digital media campaigning, and they’ve already had four million impressions as part of their campaign in just four months.”

Mellor says there’s a misperception that the construction trades are lowwage jobs, when in fact they’re actually really high-paying jobs, as the average salary is $56,000.

“And they’re also really rewarding careers, not many people can drive by a venue and say, ‘I built that home or stadium, or I helped build the airport.’

So I think we need to get back to the pride of the construction trades,” Mellor says.

High-paying salaries, career advancement and seeing tangible results of your work are just a few benefits of a career in construction. Puente says some long-term goals of the BYF campaign include “educating the public, 66 | July-August 2019

parents and educators of high school youth and changing their perception to realize that college is not for every high school graduate. Construction must be viewed as a viable career option for today’s youth,” Puente says.

“The BYF campaign is going to reframe how the industry presents careers in construction. If parents and educators get behind this message, recruiting at the high school level will be successful. I have seen this first-

The AGC’s 2018 Workforce Development Plan details the following ways to support workforce development by ensuring federal funding through: Career and Technical Education (CTE) programs in secondary and post-secondary education.

Federal job training programs under the Workforce Innovation Opportunity Act (WIOA). This approach would provide otherwise underemployed adults with a more secure career. WIOA funding should be increased in order to realize the full potential of the 2014 law’s improvements and incentives for employers to engage, collaborate with educators and others to provide career training.

Inequities of workforce and education funding; the federal government provides $120.1 billion a year in Pell grants and loans that help offset higher education costs for four-year programs; by comparison, the federal government provides only $2.7 billion for WIOA, with 15 percent for training and $1.1 billion towards all types of CTE. Expanding Pell grant usage for short term credential programs would help in recruiting more students to construction careers.

hand when speaking at ABA education events. I have told my story of how I started DP Electric as a local guy with a high school degree and now I own and manage a $66 million electrical contracting company. My story resonates with youth.

It will take a while to measure the results of how the BYF campaign impacts the industry, but this makes the effort even more important. BYF will increase the workforce in the construction industry. And with more quality people in the construction industry, the more product can be constructed.”

Some of these goals will be attained through the BYF campaign “reaching out to educators, legislators, municipalities and the governor to educate the community to see the big picture that we need to bring back vocational schools,” Puente says. “Hopefully the impact of the BYF campaign will confirm this with the decision makers and have them embrace the fact that construction is a professional career that you can build a future with and ensure financial stability.”

“I think BYF is going to help support the future of our economy to be quite honest. I see it as a real grassroots effort that is needed in our current culture,” Puente says. “I started off in the trades without a college education and now I own and run a successful company that employs more than 350 people. I did this through hard work and learning, growing and treating people right. If I can do this, there must be many others that can do the same. I think my story and many others need to be told so our youth understand the message, ‘If he can do it, I can do it too.’ I’m excited to be a part of this incredibly important community effort and look forward to engaging with decision makers to rally behind the BYF/ABA initiative.”

BUILT TO

EXPAND HORIZONS

Optima Kierland, Scottsdale

GRIT

PERSEVERANCE GETS THE JOB DONE RIGHT. suntecconcrete.com

ABA

Builders Roundtable

I

t’s an exhilirating time to be a builder in Arizona. Record construction activity has continued through 2018 and 2019, with multi-million dollar projects being built in all corners of Arizona. Despite all of the activity and excitement, the builders in Arizona continue to wrestle with maintaining

68 | July-August 2019

and training their workforce, a rise in materials costs and the inevitable slowdown that is on the horizon.

These Arizona Builders Alliance leaders provided some of their expertise to AZRE Magazine on what issues they are facing and how they are keeping up with the rapid pace of growth in Arizona.

Justin Dent

Justin Martin

Kimberly Davids

Lorraine Bergman

1. HAS THE SKILLED WORKFORCE ISSUE IN ARIZONA IMPROVED IN THE LAST 3-5 YEARS, AND IF NOT, HOW HAS YOUR COMPANY ADAPTED TO THIS NEW REALITY?

hardship in meeting schedules. To offset the demands, we now seek to better understand whether they have availability to appropriately schedule and service the project before awarding.

Justin Martin, President & CEO, Partner, Corbins Electric: The demand for electrical services has outpaced the development of skilled workforce in Arizona over the past 5 years. Corbins has responded to supporting these increased opportunities on three fronts. First is through the effective implementation and development of construction technologies that have decreased the overall headcount as well as the level of experience necessary to meet project demands.

Secondly, by investing heavily in Workforce Development; creating and deploying training modules for our existing workforce. Lastly, we have worked to attract talent from other areas of the country to come to Arizona to participate in these building opportunities.

Kimberly Davids, General Manager, Weitz: The skilled workforce in Arizona is more competitive in the last few years as there is a decrease in people entering the skilled labor and technical trades. While the quality of labor has increased, the quantity of the labor hasn’t. We have started to engage subconsultants and trades earlier to secure labor on upcoming projects and internally, we have increased our college recruiting programs to identify key targets earlier. We have also invested in the Greater Phoenix Chamber’s Build Your Future initiative to be an active member in the industry to help foster growth amongst the skilled labor workforce.

Lorraine Bergman, President/CEO, Caliente Construction: We have seen little improvement in the continued demand of skilled workforce in Arizona. Fortunately, our company reputation has allowed us to continue to grow our professional and qualified staff through employee and subcontractor referral. Regarding our projects, we recognize the magnitude of work taken on by the subcontractors during this busy time has created a

Justin Dent, Senior Vice President of McCarthy’s Southwest Region: We’re working hard to attract top talent through McCarthy’s 5-step program, which also involves proactively working to open the industry to more women, and we’re seeing significant positive results nationally.

1. Recruiting: Recruit full-time professionals and seek out various levels of developing talent, including veterans; students in middle or high school and college; those involved in vocational training programs, like SkillsUSA and JTED; and those displaced by

Marc Kinseth

downturns in American manufacturing.

2. Training: McCarthy’s awardwinning full-time training team and comprehensive skills assessment along with our onboarding programs give people the right tools to succeed throughout their careers and grow professionally.

3. Workforce Management: We identify which skills and capabilities are required for each project and deploy our workforce accordingly.

4. Retention: Keeping craft professionals in the trade is a critical goal. So, we support them with robust human resources and a deep package of financial incentives.

5. Referrals: Once craft professionals join McCarthy, our Craft Referral Program pays them a bonus to refer new candidates.

Marc Kinseth, President, Sun Mechanical Contracting, Inc.: Unfortunately the skilled workforce in southern Arizona has been an issue for the last 10-15 years. In the past, there has always been a lot of good people that want to work hard, but just don’t have the training. Now, it is hard to find good hard working people available in the market. We realized about 15 years ago that we needed to do something, so we started our own state and federally approved apprentice program. To date, we have probably put 40-50 tradesman through a 5 year program. It not only trains good tradesman, but also creates a sense of loyalty between the employee and employer.

69

ABA “Talent beyond the tradesman is another big challenge for contractors. Growth has created opportunities for upward mobility to contractor employees into management and supervisory positions.” – Justin Martin

2. OTHER THAN WORKFORCE SHORTAGES, WHAT ARE THE BIGGEST CHALLENGES BUILDERS IN ARIZONA FACE DURING THIS CURRENT GROWTH CYCLE? MK: At the state level, we are constantly dealing with new laws affecting the workforce, whether it be minimum wage, paid time off, etc. I am a big believer in taking care of the workforce, but when it comes to added costs that effect that bottom line, change needs to happen slowly. At the federal level we are dealing with tariffs and material shortages related to these tariffs. All of these are items that can’t be anticipated when you are bidding projects that are 2-4 years long.

LB: The biggest challenge is the increase in material and labor costs.

Inflating cost creates project delays, reduced scopes or cancellations due to budget busts. Owners are also looking at alternate staffing solutions in lieu of remodels/tenant improvements.

JM: Talent beyond the tradesman is another big challenge for contractors.

Growth has created opportunities for upward mobility to contractor employees into management and supervisory positions. The development of soft skills, management and scheduling techniques, and financial acumen for project management teams and field supervision at the pace necessary to meet the demand can create a significant burden on senior leaders. Providing these opportunities can also take valuable team members out of the field.

70 | July-August 2019

3. HOW HAS NEW AND EMERGING TECHNOLOGY HELPED ARIZONA BUILDERS BE ABLE TO KEEP UP? LB: What really stands out on the construction side is our ability to update our projects in real time, which greatly adds to our overall efficiency.

Project management software integrates construction activity with job costing and maintains efficient and effective document control. We utilize Bluebeam for innovative solutions in preconstruction, as well as editing and marking up plans which allows us to collaborate with all stakeholders during design and construction.

KD: Builders are adopting technologies that allow owners and end users to see and experience their sites before they are built. The progress in virtual design, online management tools, iPads, Microsoft Surfaces as examples have allowed Arizona builders to build more efficiently and cost effective.

Prefab manufacturing can also lead to faster build times and save owners money and time.

JD: Technology plays a critical role in enhancing quality, cost management and creating efficiencies. With technology, we can do things better, smarter and faster with fewer resources.

We particularly see this in Virtual Design Construction (VDC) whereby early collaboration and coordination with the design team provides innovative solutions to design, material selections and is resulting in a positive impact on costs, scheduling and finding efficiencies.

4. FROM YOUR PERSPECTIVE, HOW MUCH LONGER WILL WE SEE THIS FRANTIC PACE OF CONSTRUCTION ACTIVITY IN ARIZONA? MK: I really see in the southern Arizona market about 2-3 years of strong construction activity. The metropolitan areas are seeing a huge growth in multifamily housing and entertainment/restaurant venues to meet the new generation workforce that doesn’t need to leave home to run their business. The healthcare market is going to remain strong.

New regulations and technology constantly change how the hospitals and clinics have to do business. This usually requires some type of building infrastructure changes.

KD: 2020 has a positive outlook, but there is going to be a market correction eventually. The current pace isn’t sustainable but when a slow down does hit, it won’t be as drastic as it was in 2008. Companies are also better prepared to help anticipate and weather the impacts of a downturn.

JM: Things are looking positive for the foreseeable future. Maricopa County has been reported as one of the fastest growing counties in the nation and large technology and mission critical owners are choosing Arizona as the location for their projects. I believe the diversity of economic drivers that have created this demand will help sustain it for several years.

5. WHAT DID BUILDERS IN ARIZONA LEARN AFTER THE LAST

ABA “Technology and innovation are allowing us to work smarter with less field people by trying different, less expensive methods of construction that don’t compromise quality.”

– Marc Kinseth

ECONOMIC DOWNTURN THAT WILL MAKE THEM MORE PREPARED WHEN THE MARKET INEVITABLY SLOWS DOWN? LB: Caliente was very fortunate in the last downturn in that we didn’t lay-off any employees, and we continued to grow as a company in both revenue and staff. I attribute that to our diverse portfolio. We operate equally in the public and private sector and manage projects large and small. It’s important not to keep all your eggs in one market sector.

JD: Builders learned to diversify. Those who did not, are not around any longer.

At McCarthy we expanded into new markets, including our Arizona-based national solar and water/wastewater groups. And, we invested in developing our Job Order Contracting team and self-perform divisions that allow us to tackle small and large jobs as well as have more control of quality and schedule, particularly as we saw the labor shortage threat on the horizon.

MK: We are seeing smaller companies diversify and include new markets in their portfolio; such as commercial contractors getting into institutional type of work like healthcare or K-12 construction. These areas seem to endure even when the economy takes a turn for the worse. Technology and innovation are allowing us to work smarter with less field people by trying different, less expensive methods of construction that don’t compromise quality.

6. HOW HAS THE FOCUS ON SUSTAINABILITY AND “GREEN BUILDING” CHANGED THE WAY THE INDUSTRY BUILDS IN ARIZONA? 72 | July-August 2019

KD: Building codes are including language that advocate that sites need to be more sustainable and power efficient. Alternative energy sources to power sites continues to be an area of growth. Projects having a place to charge your electric vehicle is becoming the norm amongst multifamily, retail, mixed use, and office sties to name a few.

JD: McCarthy earned the top ranking as the #1 Green Builder in Arizona earlier this year, demonstrating that green building practices are integrated into every project. By understanding the goals of each owner, we collaborate with the team to find cutting-edge solutions, material choices and look for ways to provide the right sustainable options based upon the goals of the owner.

JM: I am sure this has impacted project designs in ways that have carried forward as new standards.

From a subcontractor’s perspective in this current climate, the focus on cost and speed of delivery seems to be overshadowing any focus on sustainability or green building beyond that already established during design.

7. DESCRIBE THE BUSINESS CLIMATE IN ARIZONA FOR BUILDERS AND HOW THAT HAS HELPED OR HINDERED THE INDUSTRY? LB: I think the climate is ripe for builders in AZ. The various municipalities, economic development organizations and state leaders are doing an excellent job of attracting and growing business in AZ. I see a genuine effort to collaborate across city borders to ensure we thrive as a state and continue to develop responsibly.

MK: With so much work out there, a revolving door aspect has developed.

Contractors are stealing good people from their competitors across the board.

From the field to upper management, people are constantly changing. This can create unhealthy competition when it comes to getting work.

KD: Arizona is a hypercompetitive market. Builders still have the economic slowdown in the back of their mind but are faced with a challenge of securing as much work as possible the market is hot but not securing so much that they aren’t successful in building their pipeline. This has created a variety of marketing and business strategies and approaches. A market like this can be great for an owner as more competition can help keep costs down and also gives an owner a range of builder options.

JM: Arizona as a state seems to be pro-business including reasonable, although not perfect, legislation and programs that impact contractors and has attracted more business owners to Arizona who have construction needs. This has helped contractors deliver projects that owners need and is reciprocal and positive for the entire community.

JD: The recent legislative session delivered some favorable policies for business and construction, which are expected to result in a continued strong economy and will afford people to continue building and investing in Arizona. And, thanks to leadership taking progressive action in construction legislation, the community will benefit with better public building projects across the state.

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ABA

ABA Member Projects

T

he Arizona Builders Alliance members had a banner building year in 2018 and that is continuing through 2019 and beyond. Here is a look at just a few of the more noteworthy projects that ABA members worked on in the past year.

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Phoenix Children’s Hospital Women’s & Children’s Pavilion at Mercy Gilbert Medical Center Owner/Developer: Dignity Health General Contractor: JE Dunn Construction Architect: CannonDesign Location: 3555 S. Val Vista Dr., Gilbert Size: 373,947 SF Value: $169 million Start-Completion dates: November 2018-December 2020 Subcontractors: Delta Diversified Enterprises; Comfort Systems USA; Schuff Steel Company; Walters & Wolf Construction Specialties, Inc.; RCI Systems, Inc.

Maricopa County Intake, Transfer and Release / Detention Facility Owner/Developer: Maricopa County General Contractor: Helsel Phelps Architect: Arrington Watkins Architects Location: 3333 W. Watkins St., Phoenix Size: 447,808 SF Value: $144 million Start-Completion dates: May 2017-October 2019 Subcontractors: ABG ;Caulking; Aluglas; Beecroft; Bell

Steel; Bergelectric; Buesing; Century Laminating; CML; Comfort System USA Southwest; Delta Turnstlyes; DH Pace; Diversified Interiors; E & K of Phoenix; Foothills Fire Protection; HACI; Harris Rebar; Hunter Contracting; Hurricane Fence Co.; ISEC; Lifetime Plumbing; Otis Elevator; Pennington Paint Company; Redpoint Contracting; Roofing Southwest; Rolling Plains; Sentinel Fence; Southwest Design and Supply; Spectra Contract Flooring; Stone Cold Masonry; True Metal Solutions.

Wexford PBC1 Owner/Developer: Wexford Science + Technology General Contractor: Okland Construction Co., Inc. Architect: HKS Architects, Inc. Location: 850 N. 5th St., Phoenix Size: 225,000 SF Value: $77 million Start-Completion dates: Q1 2019Q3 2020 Subcontractors: Suntec Concrete, Comfort Systems, Delta Diversified, Stone Cold Masonry, Kovach

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ABA Arizona State Veterans’ Home Flagstaff & Yuma Owner/Developer: Arizona Department of Veterans’ Services & Arizona Department of Administration General Contractor: The Weitz Company Architect: SmithGroup Locations: 2100 N. Gemini Dr., Flagstaff; 6501 E. 34th St., Yuma Size: Both buildings are 74,000 SF Value: $31.48 million (Flagstaff); $28,177,000 (Yuma) Start-Completion dates: June 20191Q 2021

Canopy by Hilton Tempe Downtown University Area Owner/Developer: Driftwood Acquisitions & Development General Contractor: Sundt Construction, Inc. Architect: Allen + Philp Partners Location: NE Corner of University Dr. And Myrtle Ave., Tempe Size: 136,000 SF Value: $36 million Start-Completion dates: July 2018Q1 2020 Subcontractors: Sun Valley Masonry; Wilson Electric; TDIndustries; MKB

76 | July-August 2019

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ABA Dove Mountain CSTEM K-8 School Owner/Developer: Marana Unified School District General Contractor: CHASSE Building Team Architect: Corgan Location: 5650 W. Moore Rd., Marana Size: 107,000 SF Value: $29 million Start-Completion dates: April 2018July 2019 Subcontractors: Sun Valley Masonry: Blanco Concrete; P&M Drywall; Progressive Roofinh; K2 Electric; Pueblo Mechanical; Comfort Systems; JB Steel

Nevitt Elementary School Campus Rebuild Owner/Developer: Tempe Elementary School District General Contractor: Concord General Contracting, Inc. Architect: HDA Architects 78 | July-August 2019

Location: 4525 E. Saint Annne Ave., Phoenix Size: 96,000 SF Value: $22,181,429 Start-Completion dates: February 2018-August 2019 Subcontractors: L.R. Cowan

Concrete Co., Inc.; Stone Cold Masonry; R-N-R Steel, LLC; Pete King Construction Company; Irontree Construction Inc.; Commerical Air, LLC; Echo Canyon Electric, Inc.

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ABA Arizona Federal Credit Union Renovation & Modernization Owner/Developer: Arizona Federal Credit Union General Contractor: TEPCON Construction Architect: Cuningham Group Location: 1125 E. Southern Ave., Mesa Size: 30,000 SF Value: WND Start-Completion dates: December 2017-April 2019 Subcontractors: Premire Demo, RHQ, Adobe Drywall & Paint, Sun-Tech Glass, W&W Structural, Furniture Concepts, Rite Way, ADS Doors, Sun Doors, Quality Floors, Wholesale Floors, AZ Pro Paint, Crout & Heller, CFM Mechanical, SEC Electrical, Alliance Fire Protection, Ryan Mechanical, SW Intergration, JF Ellis, Pro Con Concrete, Cable Solutions, Skyce Steel, Urban Energy, Interstate Glass, R&D Plumbing, Canyon Plastering, Southwest Acoustics, McKenna Construction, ACE Asphalt, WT Jenkins Landscaping, Mason Medics, Hurricane Fence

Casa Grande Community Recreation Center Owner/Developer: City of Casa Grande General Contractor: Haydon Building Corp.

Architect: Architekton Location: 1905 N. Peart Rd., Casa Grande Size: 55,000 SF Value: $18.2 million Start-Completion dates: February 2018-April 2019 Subcontractors: Tekstar Plumbing; Sun Valley Concrete; Corbins Electric; Arizona Glass; Bell Steel; Gen3; MAG Masonry.

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ABA Chandler Public Safety Training Center Phase 2 Owner/Developer: City of Chandler General Contractor: Caliente Construction Architect: MWL Architects Location: 3550 S. Dobson Rd., Chandler Size: 33,680 SF Value: $11 million Start-Completion dates: March 2019Q1 2020 Subcontractors: ACS Services; Heywood Builders Inc.; TPAC; Star Roofing, Inc.; RKS Plumbing & Mechanical, Inc.; JD Sun Mechanical; AJP Electric.

Hillenbrand Softball Stadium Renovations Owner/Developer: University of Arizona General Contractor: Concord General Contracting, Inc. 82 | July-August 2019

Architect: Swaim Associates Ltd. Architects Location: 220 W. 6th St., Tucson Size: 20,000 SF Value: $8.4 million Start-Completion dates: May

2018-March 2019 Subcontractors: Kelly Energy, Inc.; Akowski Masonry, Inc.; RG & Sons Plumbing; Achilles Air Conditioning Systems; JB Steel; Concrete Edge

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ABA

ABA chairman doesn’t sit idly by

By STEVE BURKS

B

rad Lloyd grew up in the construction industry in Arizona, so he’s been a part of many trade groups and associations. Lloyd has stayed active in the Arizona Builders Alliance because it lives up to its name: it builds up the industry.

“I don’t like being a member of a group that just sits around and talks and doesn’t do anything,” said Lloyd.

“You watch a group and you see what it can accomplish. To me, that’s a driving force for ABA and that’s why we stay involved.”

Lloyd is the Vice President for Lloyd Construction in Tucson and is the Chairman of the ABA Board of Directors for 2019. Lloyd Construction has been a Tucson staple for a halfcentury, as the company is celebrating 50 years in business in 2019. Lloyd’s father founded the business and he and his brother, Bill Jr., have kept the family business growing, with a little assist from the past efforts of the ABA. In fact, there is a Bill Lloyd Sr. scholarship given each year to outstanding engineering students at the University of Arizona.

“There is the whole social connections, business development side, the personal side of ABA and, to me, that pales to what ABA does for the development of the industry as a whole,” Lloyd said. “It protects all of us and our way of life and how we do business. That’s the thing that keeps me involved in ABA.” The Lloyd family has been involved in the ABA for decades, and the new board chairman said he began to

84 | July-August 2019

take on a more active role in the organization in the last decade.

Lloyd said he is also drawn to the ABA because of all of the good that the organization does for the Brad Lloyd community.

He said the ABA in Southern Arizona has service projects each year in which they get the permitting and do renovations for different groups, the largest project being $250,000.

“They do a lot of altruistic activities for different groups and the whole organization is constantly giving back,” Lloyd said. “If you wanted to ask me about the thing that drug me into this and keeps me coming back, the thing that I love is the altruistic view of the group where they are constantly trying to help.”

Being a Tucson builder, Lloyd’s involvement is valuable because it ensures that the ABA stays informed about issues that affect Southern Arizona builders. The statewide group has representatives from more than 300 companies.

“Bringing the Southern Arizona voice up to Phoenix is necessary, due to the fact that there are differences in how we do things and we come across things that are more important to us than they are in Phoenix,” Lloyd said. “The Southern Arizona branch

does a fantastic job of education for your employees or the new workforce coming up in the industry. That’s important, but we’re always trying to push it higher because the image of construction has taken a beating and we need to attack it as a state and down in Southern Arizona we need to be pushing a positive image on the benefits of construction as well as we do up in Phoenix.”

Lloyd said he has been thrilled by the efforts of ABA president Tom Dunn, who moved into the role in 2018. He was part of the leadership group that embarked on a national search for a new leader and is very pleased with the choice.

“Where he’s really shining, to me, is on the legislative front,” Lloyd said. “He immerses himself on all of the issues and keeps us abreast of them and allows us to make decisions and then charges forward.”

Lloyd also had high praise for the ABA Director for Southern Arizona, Tim Bee, and feels that, “We have the right men in place.”

During his one-year stint as chairman of the board of directors, Lloyd’s role is one of leading meetings and keeping everything moving forward, as well as advocating for the ABA and its members.

“This is a complete democracy, no one person drives the agenda,” Lloyd said. “I just try to help push forward what the group as a whole wants and what direction the ABA goes in its efforts to promote and protect this industry.”

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ABA

things learned over the past year as president of the Arizona Builders Alliance

By TOM DUNN

J

uly 1st 2018 was my first day on the job as president of the Arizona Builders Alliance (ABA). Since 2011, my service was in southern Arizona as the Vice President. This experience allowed me to know the inner workings of the alliance, create strong connections with industry leaders throughout the state of Arizona and the entire country, develop support teams with our national trade associations, the Associated Builders & Contractors (ABC) and the Associated General Contractors Building Division (AGC), and knowledge of the membership program needs. It helped me hit the ground running. The work was definitely more challenging than imagined.

Following 5 things were learned after 12 months on the job: 1) Workforce – get a job! There’s a great opportunity for the next generation to start a great career and take the reins of a rewarding industry. The strong economic climate in Arizona has brought a significant amount of commercial construction to the state. That teamed with a resurgent economy nationally has created intense competition in the labor markets.

86 | July-August 2019

One hurdle is getting the word out to the younger people and creating pathways of success for them. ABA has statewide efforts in workforce development.

Tom Dunn We’re in the high schools, community colleges and universities touting a future in construction. ABA members are also leading the efforts in construction career awareness.

2) Training – get ‘em skills! After the decimation of the workforce by the Great Recession, a new intelligent, energetic and competent workforce needs training. ABA offerings in management training, BIM, Lean, Project Management, Safety and Craft Training are demanded by the commercial construction workforce.

ABA is renowned for the successful programs that help the industry perform at high levels. We’ve seen the future and it needs training.

3) Politics – stay vigilant! We

have a seat at the table with the discussions that effect the commercial construction industry. At the local, city, county, state and federal levels, we have boots on the ground advocating for the entire industry. Elected officials know they can count on us to help them navigate through challenging legislation waters that could damage or benefit the industry. We are vigilant regarding legislative issues and regulatory overreach.

4) Staff Matters – hire talent!

The ABA board of directors charged me with policy and planning and empowered me to hire talented people and in turn empower them to provide outstanding value to the membership and the entire industry. Our Vice President, Erica Lange, continues to provide excellent management training to the industry while expanding educational offerings. Our Director for Southern Arizona, Tim Bee, has become the voice of construction in southern Arizona, focusing on workforce development and creating pathways to success for the next generation of workers. Kimberly Kahl, our Director of Workforce Development has created efficiencies in delivering craft training to 500+ apprentices, creating better ways to train.

5) Membership makes the ABA Great! Our ABA membership is literally the “Who’s Who in Arizona Commercial Construction”. The support of the ABA Board of Directors, the many volunteer led committees, to volunteer speakers at various trainings and seminars. We have the men and women of our industry that know how to make selfless advocacy decisions for the benefit of all.

We are making a huge difference in the commercial construction industry by advocating for a better economic climate, better workforce and better community. We look forward to continuing the fight!

The ABA is the Arizona chapter of both ABC and AGC, making us an Alliance of the construction industry in Arizona. Hence, the Arizona Builders Alliance.

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