AZRE July/August 2021

JULY-AUGUST 2021

IN COMMERCIAL REAL ESTATE — 2021 — PAGE 24

INSIDE:

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Leading Ladies

President and CEO: Michael Atkinson Publisher: Amy Lindsey

W

hen Beyoncé sang, “Who run the world? Girls!” she most likely wasn’t referring to the commercial real estate industry. What she may not know is that in CRE, like so many other fields, women are rising to the top, holding leadership positions and changing the way companies do business. This issue celebrates those women. From our Most Influential Women honorees, to a trio of ladies who spend their free time helping those in need, to the moms who managed the challenges of running a family during the pandemic, these CRE professionals are making Greater Phoenix a better place to work and live.

Vice president of operations: Audrey Webb EDITORIAL Editor in chief: Michael Gossie Senior editor: Rebecca L. Rhoades Staff Writer: Kyle Backer Intern: Gabriella Herran-Romero Contributing writers: Tom Dunn | Carrie Kelley | Suzanne Kinney ART Art director: Mike Mertes Design director: Bruce Andersen MARKETING/EVENTS Marketing and events specialist: Lynette Carrington Digital marketing specialist: Paul Schaum Marketing designer: Heather Barnhill OFFICE

Rebecca L. Rhoades Senior editor, AZRE rebecca.rhoades@azbigmedia.com

Special projects manager: Sara Fregapane Database solutions manager: Amanda Bruno AZRE | ARIZONA COMMERCIAL REAL ESTATE Director of sales: Ann McSherry AZ BUSINESS MAGAZINE Senior account executives: David Harken | April Rice Account executive: Manessa Ochoa

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CONTENTS

FEATURES 2 Editor’s Letter 6 Trendsetters 8 Executive Profile 10 After Hours 14 New to Market 16 Big Deals

20 Legislative Update

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24 Most Influential Women

30 Women in CRE 32 Constru-Tech

38 Labor

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42 Downtown Phoenix Update

44 Scottsdale-Tempe Update

49 Arizona Builders Alliance

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TRENDSETTERS

MAIN ATTRACTION

Here’s what attracted some of Arizona’s most influential commercial real estate leaders to the industry

LARRY DOWNEY, vice chairman, Cushman & Wakefield: “Commercial real estate allows me the chance to interface with companies and their decision-makers, assisting them with corporate occupancy decisions. Every day, there are challenges that afford me the opportunity to problemsolve and find solutions for clients. No two days are alike, juggling transactions in Phoenix or cities across the U.S.”

MOLLY RYAN CARSON, senior vice president and Southwest Region market leader, Ryan Companies US: “Family.

The opportunity to work for a company that embodies my values and the opportunity to positively impact communities attracted me to the industry. Many things have surprised me throughout the years. What didn’t surprise me is hard work, honesty and talent are easy to spot and it’s even easier to spot their absence.”

LEROY BREINHOLT, president and designated broker, Commercial Properties Inc.: “For some reason I have wanted to be in real estate since I was a child growing up in Phoenix. I always loved selling things — from door-to-door candy sales as a child, to selling odds and ends as a teenager, to buying, fixing and selling cars as a teenager and during the first three of four years in the real estate business. I love the strategy of putting people together to ‘attempt’ to create a win-win situation and have both parties leaving happy and fulfilled.”

Bob Mulhern, senior managing director, Colliers International: “My father was a home builder and I always wanted to be in the development business. My first job out of college was for Continental Homes, and I moved into the commercial side of the business very shortly thereafter. I have since been involved in development, management, brokerage and ownership of commercial properties.”

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SHARON HARPER, chairman, president and CEO, Plaza Companies: “Plaza Companies started with an idea back in 1982 and has grown into a great success story with an excellent reputation. It has not surprised me, but it has very much taught me the value of creating strong partnerships and operating your business with the utmost integrity.”

PAT FEENEY, executive vice president, CBRE: “As a restaurant owner in town in the mid-1980s, I heard many unbelievable stories at the bar from customers in commercial real estate. I told my wife that if half of what they were saying was true, I had to get into that game. The rest is history.”

THINKING INSIDE THE BOX In early April, Pipeline Worldwide and a team of architects, contractors and engineers traveled to Uganda to implement the winning designs from the organization’s Battle of the Boxes. The goal of the competition was to convert shipping containers into housing for health care workers at refugee settlements in the African nation.

“The settlements typically are in very remote areas,” says Jamie Nollette, co-founder of Pipeline, a Phoenix-based nonprofit that connects donors with vulnerable communities in East Africa. “The health care staff are living in tents on the ground or temporary housing. It’s really poor conditions.”

As part of its aid work, Pipeline ships medical supplies and equipment to its partners in East Africa. The containers then remain in those countries. So Nollette organized the contest, which kicked off in August 2019. Three teams, comprising representatives from top companies in the Valley, were each given a 40-by-8foot container and, with a max budget of $15,000 that they raised themselves — which included the cost of the container as well as building it out and furnishing it — came up with a way to convert it into living quarters for six people.

“The idea was to use only materials that we could then find in Uganda,” Nollette explains, noting that one team substituted tree bark for insulation; another used bamboo for interior walls. “We want these to serve as prototypes, and then we will teach the locals how to replicate them.”

Each design also had to incorporate offgrid power.

“Access to resources, such as tools and raw materials, is extremely challenging in these third-world regions,” Nollette adds.

Openings for doors and windows have to be cut and the components installed on-site, generators and solar power need to be added, and each container has to be made livable.

“We definitely had some long days,” notes Todd Scott, project manager at McCarthy Building Companies (shown at bottom right), who was part of one of the competition teams and traveled to Uganda with Pipeline to help implement the designs. “But we were able to get all the containers built, complete with beds, mosquito nets, desks and chairs.”

Pipeline will return to the settlement in August to see how the containers are functioning after being lived in and make any needed modifications for future builds.

But whatever design elements come out on top, Nollette affirms, “The workers who will be using the containers say they are life-changing.”

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EXECUTIVE PROFILE

THE BUILDER Mike Bontrager is perfect leader to grow Alston Construction’s Arizona operations

By STEVE BURKS

M

ike Bontrager is a builder, through and through. During his career, he has been part of companies that have completed projects large and small, but where the construction expert distinguishes himself is in his innate ability to build successful teams.

“I do a couple things really well,” Bontrager says. “I’m hyper-focused on the culture of the company, and I’m very good at growing businesses and executing on the strategy.”

When Alston Construction, which operates in 20 markets across the country, wanted to expand into Arizona, it was looking for a leader who had a solid reputation among his or her peers as well as a track record of transforming struggling offices into successful ones.

Bontrager checks both boxes.

“Paul Little, the CEO of Alston, called me up out of the blue and said,

8 | July-August 2021

‘I hear you’re sitting on the bench,’” recalls Bontrager, who had just retired from Adolfson & Peterson Construction (A&P). “I didn’t know what Alston was, so I did some research on the company. Then Paul flew out from Atlanta, and we went to lunch and talked. We hit it off right away.”

Little offered Bontrager the job of vice president and general manager of Alston’s new Phoenix office, an opportunity that the recent retiree jumped at. It all became official in early March 2020.

“Two weeks after that, the whole country locked down,” Bontrager notes. “I called up Little and asked, ‘Are you sure you want to do this?’ He said he did.”

What Bontrager brings to the table for Alston is a nearly 40-year track record of success in the industry.

Locally, he led operations for two different firms during his time in Arizona. He is very active in industry groups. He’s on the Greater Phoenix Chamber executive committee and is chair of the Greater Phoenix Chamber Foundation; he is one of the co-founders of the Build Your Future Arizona campaign and is the steering committee chairman; and he’s also on the Beatitudes Campus board and will be board chair in 2022.

For Alston, Bontrager is well on his way to cementing his reputation as a man who can build not only structures but also companies. His prior relationships in the market helped the company quickly secure project contracts, the biggest of which is the 685,000-square-foot Brooklyn Bedding factory and corporate office facility in Glendale, which broke ground in February 2021.

While at A&P, Bontrager had established a solid relationship with Brydant Real Estate, the developer that was working with Brooklyn Bedding on its new facility. After he left A&P to lead the Alston office, Bontrager approached Brydant and asked for a chance to build the project.

“Brooklyn Bedding told us that we were going to have to compete for it,” Bontrager remembers. “They put out a request for proposals, and we just outworked everybody. We worked long days and weekends, putting the budgets and schedules together. We just overresponded to everything.

“To have that project as an anchor is huge,” he adds. “I couldn’t ask for a better way to start Alston’s work in Arizona.”

Bontrager traces his ability to pull struggling operations out of trouble to his time with Weitz Construction, the firm that hired him straight out

of Iowa State University, where the future executive earned a degree in Construction Engineering. Bontrager arrived in Arizona in 1983 while employeed at Weitz and, in 2003, was running the office in Phoenix. He guided the firm through the Great Recession in the late 2000s, and when Weitz acquired Watts Constructors, Bontrager was asked to go to Hawaii to turn around that firm’s operations in Honolulu.

“I told them I’d give them three years in Hawaii,” Bontrager says. “I went over there and got it done in a year.”

Weitz then sent him to Iowa to work his magic on the company’s industrial group in its Des Moines office, a task he completed in a little more than a year.

“That’s when I really got into the process of turning things around,” Bontrager said. “When I went to Iowa and worked with the industrial group, I had some general guidelines, but I

created my own little processes for how to turn these things around.”

Following his stint in Iowa, Bontrager returned to Arizona and put the Weitz Phoenix office back on track. A few years later, he got a call from the CEO of A&P. “He said, ‘I hear you’re really good at turning offices around,’” Bontrager says.

“I told him that I was OK at it, but it’s painful.”

Bontrager guided A&P’s Phoenix operations into smoother waters before retiring in late 2019. Then Alston pulled him off of the sidelines.

“When you do this for 38 years — and I wouldn’t say I was on autopilot — there has to be a draw, something that motivates you,” Bontrager notes. “I looked at this new position as a challenge to get the Arizona operations going, and I knew that there was a chance that it wouldn’t work. But it was a challenge I was willing to accept.”

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AFTER HOURS

Better Together

By REBECCA L. RHOADES

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istorically, commercial real estate has been a male-dominated industry, so those women who do enter the field often have to work twice as hard to succeed. Many of those who make it to the top credit their success to strong female role models who supported their choices, strengthened their confidence and allowed them to believe in themselves and their career goals.

AZRE Magazine caught up with three female CRE professionals who spend much of their free time giving back to underprivileged, addicted or simply down-on-their-luck girls and women. Their philanthropic work helps build strong families and communities and encourages future generations to follow their dreams, no matter what challenges they may face.

Judi Butterworth

Judi Butterworth, senior vice president, Orion Investment Real Estate Butterworth has specialized in leasing and selling shopping centers for about 40 years. While her long list of professional achievements is impressive, her passion for helping others is equally as formidable. Shortly after moving to Phoenix in the 1980s, she began volunteering at Arizona Women’s Education and Employment (AWEE, now part of A New Leaf) and created one of the organization’s signature events, Cocktails and Clothes.

Last year’s soiree, held just days before the beginning of the pandemic in March, raised approximately $75,000.

Currently, Butterworth focuses on helping women and children through Phoenix Rescue Mission’s Changing Life Center. She also teaches classes at

the Estrella Jail that give incarcerated women life and coping skills.

Why is it important for successful women to help other women?

“By some shred of luck, I’ve hung out with good people and was able to go to college, but I was a single mom, and I know what it’s like to be tired, get no rest and have total financial responsibility. Women have such unique experiences because we can have babies and go through menopause, and we can empathize with each other’s problems. Any woman who steps out of her comfort zone to volunteer will get way more out of it than she gives.”

Why do you focus your philanthropic efforts on addiction issues?

“A lot of the women I teach don’t understand that they have a debilitating problem. They’re not stupid, but they’ve been brought up with parents who were addicts, they didn’t have a strong father figure, or they were assaulted. I want them to understand that they have options. Being able to look at somebody face to face, share your experiences and give them hope — no amount of money can buy that.”

What advice would you give to someone who is interested in volunteering?

“There’s no downside to trying different activities. Volunteering is a great way to escape from the daily pressures that you can’t otherwise get out of your head. When you’re helping other people, you don’t have time to think about yourself, and there’s a magic to that.”

Dena Jones, assistant vice president and director of marketing and digital solutions, Fidelity National Title Agency

Jones is a third-generation real estate professional who had philanthropic values instilled in her from childhood. After joining Valley Partnership in 2011, Jones began focusing more of her free time on helping others. Since 2013, she has served as chairman of the organization’s community project and board of directors’ liaison for its charitable work. In addition, she is involved with the Scottsdale 20-30 10 | July-August 2021

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AFTER HOURS NAIOP and the Urban Land Institute’s Women’s Leadership Initiative.

Dena Jones

Club’s annual Brokers for Kids/Agents Benefiting Children event, which raises money for youth charities; serves on St. Vincent de Paul’s board of young professionals, The Vinnies; and is on the board of the Care Fund.

Why is working with young people and giving back to the community so important to you?

“It all started with my mom. I would volunteer with her during the summer at Sunshine Acres Children’s Home, a place I serve and support today. I didn’t grow up with wealthy parents, but they always taught me that no matter what you have, there’s always something that you can give away. I learned that there’s more to life than what you do on a professional level; that there’s always other people in need.”

Why is it important for successful women to help other women?

“It always starts because that’s what you want, right? We women in business have to stick together. We have to teach the next generation of women.”

Tell us about some of your volunteer experiences.

“A few years ago, the Florence Crittenton Girl’s Ranch in Scottsdale contacted Valley Partnership because they did not have any usable outdoor space. We constructed beautiful gardens with seating areas, planters and a mural. We also added a heartshaped labyrinth with hand-painted stones. Now, every time a girl goes through the home, she paints rocks with messages of positivity so future residents can walk through and feel 12 | July-August 2021

a sense of peace. At Sunshine Acres, we built a recreational field for the kids. When they show up there, they usually have a lot of anger issues, so seeing them play on the field and transform in a safe and happy environment is amazing. I never need to know who my work is going to affect, but when you get a call or hear a story about how someone’s life changed or improved, it really makes you feel good.”

Julie Johnson, executive vice president, Colliers International Johnson has been in the CRE industry for about 30 years. It was through her volunteer work with Teach for America, which she began doing about 15 years ago, that she become involved with Girl Scouts. She frequently speaks to the scouts about her career as part of the organization’s Camp CEO program. In addition, she works with low-income and at-risk kids through Phoenix Youth at Risk/New Pathways For Youth and she mentors young professional women through Julie Johnson

Why is it important for successful women to help other women?

“If you read books or articles by successful people, they will almost always say that they had a mentor who helped them grow their career or find their purpose. A lot of the kids I work with can easily go in the wrong direction in life, so to help guide them in making choices that will be good for their future is important. I think that everybody, no matter what age, needs someone who is their supporter and advocate.”

Is there anyone in your industry who has inspired your philanthropic work?

“I am completely amazed by and admire everything that Judi Butterworth has done. Many years ago, she got me involve with AWEE. Her enthusiasm and great ideas for helping women encouraged me to begin donating some of my professional clothes to women who might need them for job interviews. The stories that I heard about the women and, later, some of the men who the organization helped were amazing. To be able to reach out to people who are in need, or who just need an opportunity, and be able to provide help really encapsulates why I volunteer.”

What does giving back to your community give to you?

“It gives me inspiration. It’s so exciting to see the seeds of greatness in these young women and to help them become more resilient and overcome some of their adverse situations.”

NEW TO MARKET A

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OFFICE A THE BEAM ON FARMER DEVELOPER: Mortenson ARCHITECT: RSP Architects BROKER: JLL SIZE: 184,000 square feet LOCATION: 401 S. Farmer Ave., Tempe START/COMPLETE: January 2021/ May 2022

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MULTIFAMILY B SPRINGS AT EASTMARK DEVELOPER: Continental Properties ARCHITECT: Huitt-Zollars GENERAL CONTRACTOR: McShane Construction SIZE: 276 units LOCATION: East Warner Road and South Ellsworth Road, Mesa START/COMPLETE: May 2021/ March 2022

INDUSTRIAL C PHOENIX LOGISTICS CENTER DEVELOPER: Merit Partner ARCHITECT: Ware Malcomb GENERAL CONTRACTOR: StevensLeinweber Construction BROKER: JLL SIZE: 481,600 square feet LOCATION: Southeast corner of 91st Avenue and Buckeye Road, Phoenix COMPLETION: End of Q3, 2021

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MEDICAL D GOODYEAR MEDICAL DEVELOPER: Wentworth Property Acquisitions ARCHITECT: Vertical Design Studios BROKER: Colliers International SIZE: 57,000 square feet LOCATION: 1830 NE Bullard Ave., Goodyear VALUE: $177 million START/COMPLETE: Q4 2021/Q4 2022

MULTIFAMILY E CABANA HAPPY VALLEY DEVELOPERS: Greenlight Communities and Holualoa Companies SIZE: 292 units LOCATION: Happy Valley Road and 19th Avenue, Phoenix START: August 2021

MEDICAL F PHOENIX CHILDREN’S HOSPITAL — ARROWHEAD CAMPUS DEVELOPER: Phoenix Children’s Hospital ARCHITECT: HKS SIZE: 180,000 square feet LOCATION: 18701 N. 67th Ave., Glendale VALUE: $134.7 million START/COMPLETE: Summer 2021/ Spring 2023

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An Electric Revolution ElectraMeccanica’s $35 million Mesa factory marks latest EV company presence in Arizona

By REBECCA L. RHOADES

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rizona has rapidly become the hub of electric vehicle (EV) manufacturing in the U.S. In Pinal County, the first phase of Lucid’s Casa Grande plant is complete, and the company soon will begin producing its all-electric luxury sedan; while Nikola Corp. is building a factory in nearby Coolidge where it will manufacture electric- and hydrogen-powered heavy trucks.

Now, Maricopa County has entered the EV market. On May 15, Vancouver, Canada-based ElectraMeccanica Vehicles Corp. broke ground on its first U.S.-based assembly facility and engineering technical center in Mesa. The $35 million plant will bring 500 high-tech, high-value jobs to the community.

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“Arizona is a magnet for auto innovation. We’ve had three EV groundbreakings in the last 16 months, which is incredible,” says Sandra Watson, president and CEO of the Arizona Commerce Authority.

“Companies testing their cars at proving grounds in the state include GM, Ford, Toyota, VW, Chysler and Nissan. Arizona is also the epicenter of automated driving. Waymo, Cruise, TuSimple, Embark, Intel and more all have operations here. We hope to continue this momentum.”

Following a year-long nationwide search, which included about a dozen locations in the Greater Phoenix region, Mesa eventually won out over Nashville, Tennessee.

“ElectraMeccanica ultimately chose

Arizona because of our abundant workforce, and our location with close proximity to California and Mexico is second to none,” Watson explains.

According to Mesa Mayor John Giles, the site offers a number of strategic advantages. “It’s just across the picket fence from a major airport, it’s next to a freeway that will get you to Southern California in half a day, there’s a strong workforce here, and Arizona State University is just a stone’s throw away,” he says.

Paul Rivera, CEO of ElectraMeccanica, adds that the tipping point was Arizona’s accessibility to the company’s target market: the West Coast. “Just the fact that there’s a lot of EVs in Los Angeles, San Francisco and up the coast in Washington and Oregon, made this location ideal for us. It reduces dwell time for vehicles and lowers transportation costs,” he says. “Plus, there are already a Tier 1 supply base and engineering partners coming here because of the other EV manufacturers.” UACJ Whitehall, a leading supplier of precision extruded aluminum automotive components for EVs, recently announced that it will be opening a plant in Flagstaff, while Li-Cycle, a leader in the recycling of

Chris Camacho lithium-ion batteries, the type used in EVs, will build a facility in Gilbert.

INNOVATION IN DESIGN Situated on 18 acres of land between Phoenix-Mesa-Gateway Airport and the Loop 202, the 235,000-square-foot stateof-the-art ElectraMeccanica complex will include a light vehicle assembly plant, 22,000 square feet of offices and 19,000 square feet of comprehensive research facilities. The company will be turning out its flagship EV, the single-seat Solo.

The factory will focus on light assembly, with parts and components produced by the company’s manufacturing partner, Zongshen Industrial Group, in China. The engineering tech center will ELECTRAMECCANICA SOLO: The $18,500 single-passenger, three-wheeled EV is designed for commuting and fleet services.

John Giles

Paul Rivera

include development and engineering offices, as well as battery, chassis and power electronics labs. The architect of the plant is Ware Malcomb, and Willmeng Construction is the general contractor.

ElectraMeccanica will lease the building from developer MarWest Enterprises.

Chris Camacho, president and CEO of the Greater Phoenix Economic Council, says, “This facility is going to be one of the most advanced state-of-the-art OEM facilities in the U.S. And this vehicle is a head-turner."

The diminutive Solo is unlike any other vehicle on the road. Featuring an eye-catching three-wheel design, the tadpole-style commuter car is designed for a single passenger. With a top speed of 80 mph and a range of 100 miles, it will retail for $18,500.

“I think there’s going to be a massive demand for the Solo from consumers as

Sandra Watson well as restaurants and other businesses that are looking at fleet services,” Camacho adds.

ElectraMeccanica has crafted a threepart strategy for rolling out the Solo.

First is a direct-to-consumer approach.

Currently, the company is promoting the vehicle at retail kiosks in malls throughout the state. The public can see and touch the Solo, ask questions and place preorders. The second element is fleet and commercial use. Instead of a hatchback, this version of the car features a cargo box. “It’s going to be a homerun for companies that are in fast food, pizza or grocery deliveries; and security companies that monitor parking lots and communities,” Rivera says. The third component will be a ride-share program for residential complexes and college campuses.

A WORKFORCE BOON Eventually, ElectraMeccanica plans to employ about 500 people at the facility, and it is already hiring for engineering positions. “One of the criteria that the company was looking for was workforce, and that’s a strength in this part of the Valley. These are good high-tech jobs,” says Giles. Adds Rivera, “Even our assembly line work requires skill because you’re putting together an EV. We’ll be bringing highly skilled labor into the facility to develop not only the next evolution of the Solo, but we have other vehicle aspirations as well.”

According to Watson, more EV companies establishing operations in Arizona means more high-wage jobs, which means more economic activity.

She says, “It’s also great because people who grow up here can gain training and skills in an advanced industry to get a quality job, all without leaving their community.”

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MULTIFAMILY/SALES

$131M | THE RETREAT APARTMENTS

20808 N. 27th Ave., Phoenix BUYER: MG Properties SELLER: LivCor BROKER: CBRE, Institutional Property Advisors

$108.5M |

PARAGON AT KIERLAND APARTMENTS 15608 N. 71st St., Scottsdale BUYER: Sunroad Enterprises SELLER: Sentinel Real Estate Corp.

$103.75M | ESCAPE AT ARROWHEAD APARTMENTS 7951 W. Beardsley Rd., Peoria BUYER: Escape Two LLC SELLER: Embrey Development

$99.5M | PORTRAIT AT HANCE PARK

1313 N. 2nd St., Phoenix BUYER: Knightvest Capital SELLER: Transwestern

$96.15M |

BROADSTONE RIO SALADO SEC Loop 101 and Rio Salado Parkway BUYER: Decron Properties SELLER: Alliance Residential

LAND/SALES

$36.48M | 182 AC

AVALON CROSSING SEC Crismon Road Extension and Williams Field Road Extension BUYER: Shea Homes SELLER: Levine Investments BROKER: Nathan & Associates

$36M | 166 AC

$27M | 48.38 AC LAGOON WATER PARK (PROPOSED)

$29.5M | 165.78 AC

$25.42M | 73.91 AC

SEC Loop 202 and Warner Road, Mesa BUYER: Scannell Properties SELLER: Meritage Homes BROKER: Nathan & Associates

STONEHAVEN PHASES 2 & 3 (PROPOSED) NEC of 91st Avenue and Camelback Road, Glendale BUYER: Taylor Morrison SELLER: Jacob F. Long BROKER: Land Advisors

18 | July-August 2021

SEC Loop 101 and Bethany Home Road, Glendale BUYER: Epic Adventures SELLER: Seldin Real Estate BROKER: Nathan & Associates MADERA WEST ESTATES (PROPOSED) SEC Queen Creek and Crismon roads, Queen Creek BUYER: Richmond American Homes SELLER: Communities Southwest BROKER: Nathan & Associates

Editor’s note: Here are the biggest deals in Arizona commercial real estate from May 1, 2021 through June 16, 2021, according to data collected by the commercial real estate tracking website Vizzda.

OFFICE/SALES

$34.585M | 1811 E. Northrop Blvd., Chandler BUYER: REM Finance SELLER: Irgens Partners

$18.2M |

$12.4M | DRIVETIME AUTOMOTIVE CORPORATE OFFICES

$15.25M | THUNDERBIRD PALMS MEDICAL CAMPUS

10229 & 10301 N. 92nd St., Scottsdale BUYER: Caliber Wealth Development SELLER: Pcres Holdings

ARROWHEAD EXECUTIVE CENTER 17235 N. 75th Ave., Glendale BUYER: Woodside Health/Crescendo Commercial SELLER: Holualoa Companies BROKER: Cushman & Wakefield

4020 E. Indian School Rd., Phoenix BUYER: 4020 East Indian School LLC SELLER: The Boyer Company

$10.5M |

5750 W. Thunderbird Rd., Glendale BUYER: Woodside Health/Crescendo Commercial SELLER: Charles Bruni

INDUSTRIAL/SALES

$43.1M |

1715 W. Elliot Rd., Gilbert BUYER: Silver Creek Development SELLER: SunCap Property Group

$23M | 320 S. 91st Ave., Tolleson

$19.23M |

BUYER: Kohlberg Kravis Roberts & Co. SELLER: Hopewell Development Company BROKER: Cushman & Wakefield

AMKOR RESEARCH AND DEVELOPMENT CENTER 1900 S. Price Rd., Chandler BUYER: Exeter Property Group SELLER: Digital Realty BROKER: CBRE

$21.8M |

$17.4M | MOUNTAIN VISTA COMMERCIAL CENTER

6800 W. Van Buren St., Phoenix BUYER: Kohlberg Kravis Roberts & Co. SELLER: Hopewell Development Company BROKER: Cushman & Wakefield

14647 S. 50th St., Phoenix BUYER: Westmount Realty Capital SELLER: Northstar Commercial Properties BROKER: Cushman & Wakefield

19

LEGISLATIVE UPDATE

What’s at Stake?

The PRO Act could change the way all industry does business in Arizona

T

he PRO Act (Protecting the Right to Organize; HR 842/S 420) attempts to increase union density and union leverage without regard for the negative impacts it would have on workers, businesses and the entire American economy.

Currently 94% of Arizona businesses are merit shop (open or non-union shop), with union workers making up 6% of the state’s workforce. As this article is being written, Arizonans have freedom to choose if they would like to participate in an open shop or a union shop. The open shop’s upward mobility, fair wages, work opportunities and labor practices have proven to be the better choice for 94% of the workers who have had to make this decision.

Arizonans are individuals who make their own decisions and are responsible for their own actions. Individual rights are extremely important, and the pathways to the pursuit of life, liberty, happiness and personal property should be individually decided. Arizonans have been clear on these decisions, and the result is a vigorous economy that is poised for not only an economic rebound but also an economic boom.

Our state’s economic future is at risk if the PRO Act becomes federal law. All sectors of the economy would be at risk.

Workers and businesses that have built strong relationships and business models would have to completely restructure to an uncertain future.

20 | July-August 2021

Tom Dunn ABA

Repealing right-to-work protections would strip millions of Americans of the right to refrain from joining a union, hindering private sector growth and business migration to pro-business states such as Arizona.

The PRO Act also would strip personal privacy from employees as their personal information, including home address, cell phone number, assigned work shift information and more, would be provided to organizers so they could freely contact the employees. In addition, the death of the secret ballot is included in this act.

“Card Check” is the organizers’ preferred way to run an election as the employee’s individual vote is made public, opening the election to acts of intimidation.

Not only is the PRO Act an attack on individual freedoms, but it is also an attack on employers’ abilities to protect their own interests. It interferes

with attorney-client confidentiality and makes it harder for businesses, especially small businesses, to secure legal advice on complex labor law issues. The inequity of this act targets small business for future failure.

The act also attacks independent contractors by curbing opportunity in the new gig economy. Many of those independent contractor opportunities would be sent overseas to other nations that are eager for the work. Research study from the American Action Forum estimates that up to 8.5% of the gross national product would be at risk if the PRO Act’s “ABC” Test is nationalized. Under this test, a worker is presumed to be an employee unless the employer can show that certain conditions are met. Assembly Bill 5 is California’s provision that reclassifies independent contractors. A statute such as this in Arizona would devastate our high-tech sector, and any efforts to bring high-tech to our state would be in vain.

The PRO Act’s removal of secondary boycott protections will lead to “topdown” organizing efforts as many owners, suppliers, contractors and specialty contractors would be at risk for boycotts and business stoppages. This is just the tip of the iceberg. For more details visit opposetheproact.com.

Tom Dunn is president of the Arizona Builders Alliance.

Investment Tax Credit. The program is available to expand early-stage investments in targeted Arizona small businesses. The tax credit offsets Arizona capital gains tax liabilities associated with the disposition of investments in small businesses certified by the ACA. The program is up for reauthorization and is currently in the Senate version of the proposed budget.

The Big Three

TAX REFORM

I

t’s been a year of change for all Arizona residents, businesses and organizations. Our state legislature is no different. Lawmakers went back to work in January as COVID-19 cases spiked throughout the state. They adjusted by allowing remote voting and public testimony. At the time of publishing this article, the Capitol remains off limits to the public, but legislators are still in session doing the work of the people.

To date, the Arizona Legislature has passed several bills of significance to economic developers. Still more economic development issues are wrapped up in the fiscal year 2022 state budget currently under negotiation.

Following are the big issues lawmakers are addressing this year.

QUALIFIED FACILITIES Without question, the biggest economic development bill this year was the Qualified Facilities bill, HB 2321. This bill targets large-scale projects in Arizona by increasing the tax credit for qualified facilities from

Carrie Kelly AAED

$70 million to $125 million in any calendar year. The program, run by the Arizona Commerce Authority (ACA), is extended until October 1, 2033. This legislation is designed to attract projects such as Taiwan Semiconductor and the $20 billion expansion of the Chandler Intel plant. These megaprojects have a multiplier effect throughout the state’s economy and create high-wage jobs.

ANGEL INVESTMENT TAX CREDIT Since its inception, more than 1,000 Arizona businesses have used the Angel

Lawmakers are considering flattening the Arizona personal income tax system.

Currently, Arizona has four personal income tax brackets. Legislators are discussing collapsing the four into one as part of the budget negotiations.

At issue is the impact that Prop 208 has on small businesses.

Arizona voters narrowly passed Prop 208 in November 2020. The proposition adds a 3.5% surcharge onto the highest tax bracket in Arizona and dedicates the revenue to education. This policy was designed to infuse cash into the K-12 system. However, it is causing high-wage earners to move out of the state and hitting small businesses rather hard.

Many small businesses in Arizona are structured as Sub S corporations or LLCs. This allows the business tax liability to flow through to the owners regardless of personal income. In short, small businesses are significantly impacted by the policy, and lawmakers are trying to address the problem.

If taxes are flattened, anyone with a tax liability greater than $250,000 for a single filer or $500,000 for joint filers would pay 6% with the Prop 208 surcharge included. This would help keep the state competitive with others and help small businesses.

Legislators are also discussing the impact of the reforms on Arizona cities and towns. If not adjusted, local governments could see a reduction in the amount of shared revenues they receive from the state. The debate continues at the Capitol and, hopefully, a reasonable solution can be found.

AAED continues to advocate for policies that make Arizona more attractive for business and job creation.

Carrie Kelly is the Executive Director of the Arizona Association for Economic Development.

21

LEGISLATIVE UPDATE

Time for Bold Leadership

I

t’s been quite the session at the Arizona State Legislature. At the time of this writing, the legislature is bogged down in budget negotiations and facing a June 30 deadline, finishing up an audit of the 2020 election that has garnered national attention, and entering a Special Session to address wildfires that are ravaging parts of our beautiful state.

So where do we go from here?

With multiple candidates already declaring their intent to run for statewide offices, such as governor and secretary of state, as well as U.S. Congressional and Senate seats in 2022, the business community has the responsibility to step up and support candidates who will work to solve real problems facing Arizona. Far from being the bogeyman that some would paint all businesses, Arizona is fortunate to be home to large corporations, small local merchants and innovative entrepreneurs that have a vested stake in the long-term vitality of our state’s economy and quality of life.

To move forward, we need a bold, cohesive effort to elect politicians who will rise above petty partisanship and work towards solutions that will balance the need for competitive tax policy and a predictable regulatory environment with prudent investments in core government

22 | July-August 2021

Suzanne Kinney NAIOP

functions, such as education, health care, corrections, securing our water supply, restoring our forests to prevent catastrophic wildfires, and modernizing our infrastructure. These are major responsibilities that cannot be ignored to fight ideological battles.

This may sound impossible in today’s environment when an angry tweet can destroy a person’s career. But Arizona has a long legacy of political and business leaders from both parties who have demonstrated statesmanlike behavior and a willingness to negotiate consensus public policy.

What can business leaders do to help restore a more functional political environment?

For starters, financially support candidates who have proven to put

the needs of Arizona’s residents above partisan gain, even when that has meant risk to their political careers.

Stop supporting candidates who may vote “the right way” on legislation that impacts your business but then engage in activities that distract from the hard work of policy-making or cause our state to make the national or international news in a negative way.

Hold accountable elected officials who stymie action on major issues, such as setting the state budget in order to force a vote on a personal priority that lacks broad support.

Connect directly with elected officials. Legislators want to hear from business leaders in the field. They meet with professional lobbyists every day but would benefit from more real-life stories of what causes businesses to struggle and what the legislature can do to help.

Finally, closely watch and get involved in the redistricting process.

The Independent Redistricting Commission (IRC) is a small body appointed after the decennial census to reset all state legislative districts and U.S. Congressional districts for the next decade. This will have major implications for the competitiveness of districts and the representation available to diverse rural and urban communities across our state.

When too many districts are uncompetitive in the general election (meaning one party is assured to prevail due to a registration advantage), the election is decided in the primary.

Held in late summer and garnering little attention, Arizona’s primaries are often a race to the extremes. The result is all too often a legislator who is focused on appeasing their base rather than serving the broader needs of the constituency in their district.

Pay attention to how these district lines are drawn so that Arizona can benefit from competitive campaigns where issues of real importance are debated in the open. In the end, this will lead to better policy-making and a brighter future for our state.

Suzanne Kinney is the president and CEO of Arizona Chapter of NAIOP, the Commercial Real Estate Development Association.

WHAT’S

COMING IN C.R.E.?

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Connect, learn and network with the most impactful commercial real estate leaders at the 2021 AZRE Forum.

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MOST INFLUENTIAL WOMEN

IN COMMERCIAL REAL ESTATE FOR 2021

By MICHAEL GOSSIE

T

here are many adjectives that could be used to describe each of the 2021 Most Influential Women in Commercial Real Estate.

Innovative. Driven. Brilliant. Strong.

But that doesn’t mean they didn’t face unprecedented challenges like the rest of us during the pandemic.

“Personally, I found self-care to be more important than ever,” says Tiffany Sharp, principal at Sharp Construction. "It was way too easy to fall into the pattern of rolling out of bed, opening my laptop and working until later hours of the evening without taking the necessary mental and physical breaks to keep me healthy and recharged. Professionally, I better understand the value and importance of connecting in-person when it comes to building more solid

foundations within your network.

I’ve always understood the value of maintaining the relationships within my network but never quite felt the challenge of that maintenance as I did during the pandemic due to the inability to meet in person.”

Each of the Most Influential Women in Commercial Real Estate for 2021 have overcome obstacles throughout their careers to distinguish themselves and succeed in a still male-dominated industry.

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 their accomplishments on August 25, 2021, at Chateau Luxe. For details, visit azbigmedia.com.

Here are the Most Influential Women in Commercial Real Estate for 2021 Adrienne Bryant Mary Fedewa Patti Gentry Jessica Grant

24 | July-August 2021

Yung Koprowski Nicole Maas Michele Pino Angie Schmidt

Keri Scott Tiffany Sharp LuAnn Thoma-Holec Kathey Wagner

Nicole Maas

Jessica Grant

Maas is active in the community through her work with Valley Partnership and the American Heart Association; she’s also the current chairperson of HonorHealth Desert Mission. She was captain of the University of Wisconsin – Stevens Point softball team, which won the national championship in 1998.

Grant graduated with a BS in accountancy before starting her career in construction.

Vice president of marketing and communications Kitchell

Partner, executive vice president, and CFO Corbins Electric

Source of pride: “Pre-2020, I would have proudly talked about some of our biggest project wins, but making it through the last 15 months with a strong business plan and incredibly high performing team (many I have not physically seen in more than a year) is really what gives me the most pride.”

Lesson learned in 2020: “When COVID-19 hit, it put an end to our daily huddles, which we hadn’t missed since they began in 2014.

This provided us with a challenge and an opportunity to grow in our communication throughout the company, as well as teach an important lesson that workplace culture must extend beyond the walls of our physical buildings. We have been able to bounce back, and I’m truly excited for the new ways we’ll be getting the team together for huddles going forward.”

Adrienne Bryant

Michele Pino

Bryant has been in the real estate industry for more than 20 years. She pivoted to commercial real estate when she relocated to Arizona and decided to focus on assisting business owners through representing them exclusively through the cycle of site selection, negotiations, construction phase and being an exclusive advocate for her clients.

Pino has been a commercial site selection advisor with Land Advisors since 2006. She was previously executive director at the ASU Research Park and spent eight years in state government. She is a member of AASBO, president of her family’s charitable foundation and a board member of WESTMARC and Valley Partnership.

Source of pride: “The accomplishment that brings the most pride is that we are an AfricanAmerican, women-owned CRE firm.

My daughter, Jonvieve, is part of our family legacy and the future of our company. We have represented national franchise brands, global companies and nonprofit organizations.”

Source of pride: “I’m most proud of the business and personal relationships I’ve formed in three fulfilling careers as a paralegal, economic developer and real estate agent. At the end of the day, no one may remember the last deal I did, but I hope they will remember my integrity.”

Owner Bryant Commercial Real Estate

Commercial and site selection specialist Land Advisors Organization

TO READ FULL PROFILES OF ALL THE MOST INFLUENTIAL WOMEN OF 2021, VISIT AZBIGMEDIA.COM 25

MOST INFLUENTIAL WOMEN

Mary Fedewa

Kathey Wagner

LuAnn Thoma-Holec

Tiffany Sharp

Fedewa co-founded S|T|O|R|E in 2011. She has played a key role in the company’s portfolio growth to nearly $10 billion in assets while leading all areas of operations.

Wagner began working in the AEC industry as a business strategist in 2014 and joined EPS Group in 2018. She was appointed CEO in 2019. Wagner brings decades of experience working in diverse environments and industries, from startups to Fortune 50 companies, insurance to engineering, legal services to hospitality, and more.

Thoma-Holec’s experience and passion for senior living interior design inspired her to launch a company exclusively dedicated to the industry. Founded in 2006, Thoma-Holec Design’s awardwinning communities are known for their unique, welcoming and meaningful spaces that enhance resident and staff experiences throughout the U.S. and Canada.

Sharp has been managing design and construction teams and projects since 2005. She’s an Arizona State University graduate for both her bachelor’s and master’s degrees in construction management.

Sharp founded Sharp Construction as a woman-owned commercial construction company in 2017.

President and CEO S|T|O|R|E Capital

CEO EPS Group

Lesson learned in 2020: “One of the key takeaways from our experiences during the pandemic is the importance of developing a stronger sense of mental health awareness, stress management, emotional intelligence and overall well-being. As a leader, I recognize the need to set an example and encourage my employees to prioritize their health and wellness so they can contribute positively to both their personal and professional lives.”

Lesson learned in 2020: “During the past year, we all endured extended periods of isolation and loneliness. The power of kindness and humanity provided me with the strength to endure the ever-changing environment and has made me a better human and leader.”

Principal and founder Thoma-Holec Design

Lesson learned in 2020: “First and foremost, I learned that my team and I could adapt to change very quickly.

As a design firm, we work from coast to coast and in Canada, and since our construction documents and design are digital, we never missed a beat in productivity or creativity.”

Principal Sharp Construction

Source of pride: “Starting my own company is a dream I’ve always had.

Now that the dream is real, I live and breathe the successes and failures of my company every day. I take pride in the challenges and roadblocks that I’ve had to overcome, which have now allowed me to influence the next generation of women in this industry.”

TO READ FULL PROFILES OF ALL THE MOST INFLUENTIAL WOMEN OF 2021, VISIT AZBIGMEDIA.COM 26 | July-August 2021

Leading the Way Breaking barriers while driving logistics real estate forward.

Megan Creecy-Herman SVP, Operations – West Region

Sandy Diaz Real Estate & Customer Experience, Regional VP

Lisa Reddy VP, Leasing Officer

Ania Torres Real Estate & Customer Experience, Regional VP

Analise Guttmann Leasing Manager

Christine Cruz VP, Finance – West Region

Kelly Dergham Real Estate & Customer Experience, Senior Manager

Laurel Casey Director, Investments – Capital Deployment

Erika Gansch Real Estate & Customer Experience, Senior Manager

Ann Nelson Real Estate & Customer Experience, Senior Manager

Prologis is the leading owner, operator and developer of logistics real estate with approximately 990 million square feet owned and under management in 19 countries on four continents.

27

MOST INFLUENTIAL WOMEN

Yung Koprowski

Angie Schmidt

Keri Scott

Patti Gentry

Koprowski’s professional experience is focused on traffic engineering and transportation planning, specifically in safety, technology and multimodal traffic operations. Yung owns Y2K Engineering and currently leads a team of 15 from offices in Mesa and Denver.

Koprowski is also the vice mayor of the Town of Gilbert.

Schmidt has construction in her blood. Her father, Dominic Spagnuolo, founded SDB in 1980. Schmidt joined the company in 2012 and became CEO in 2017.

Scott specializes in project leasing, building sales and tenant representation for industrial and office properties. She represents more than 1 million square feet of properties, as well as a number of high-profile national and local tenants.

Gentry is a senior vice president and associate broker in the commercial real estate industry who, for 35 years, has utilized her expertise in an ever-changing health care environment. As one of the premier real estate transactions experts in the country, she has a working knowledge of the challenges and issues facing boards of health care companies.

Owner Y2K Engineering

CEO SDB Contracting

Lesson learned in 2020: “The pandemic reinforced the role that technology plays in the workplace, which allows work from anywhere and supports greater value in spending quality time with our families and friends. I’ve become a stronger leader by being courageous and authentic, approaching challenges head-on and making decisions with empathy.”

Lesson learned in 2020: “During the pandemic, SDB came together as a family and our mantra was to stay calm, cool and collected. This helped our team focus on the business and one another. We also learned the importance of being able to react quickly to make immediate changes as needed. Communication was key to keeping everyone in the loop as so many team members were working from home. What I can take away from all of this is that SDB runs as a cohesive team, always.”

Vice president Colliers

Lesson learned in 2020: “Family is the best medicine of all. After a catastrophic halt to things in the world — I had kids at home, a house under construction, a full-time job and an inability to function normally — I realized the family/life/work balance needed attention. Being able to spend time with family and work in tandem showed me that it is possible to manage both important roles simultaneously.”

Senior vice president JLL

Lesson learned in 2020: “The pandemic taught me just how capable I am of responding to crises beyond my control. That included quickly pivoting with the right strategies for my clients and always showing empathy — the most important ability in any relationship.”

TO READ FULL PROFILES OF ALL THE MOST INFLUENTIAL WOMEN OF 2021, VISIT AZBIGMEDIA.COM 28 | July-August 2021

Influencing the Industrial Market Keri Scott | AZRE Most Influential Women of 2021 Congratulations to Keri Scott, vice president, Colliers in Arizona, on being honored by AZRE as one of the Most Influential Women of 2020.

“Keri Scott’s leadership capabilities, combined with her strong communication skills and deep market knowledge, have allowed her to have a tremendous impact on both her clients’ businesses and our office culture,” says Bob Mulhern senior managing director of Colliers in Arizona. “Keri is a critical member of our Colliers team!”

Accelerating success.

29

WOMEN IN CRE

PANDEMIC PARENTING Women in the Valley’s CRE industry speak out about balancing work, home and child care. By REBECCA L. RHOADES

W

hile the COVID-19 pandemic impacted people of all ages and genders, changing the way we work, learn and live, reports have shown that the journey, both during and through the recovery, has been toughest on women. According to the Pew Research Center, 2.5 million more women than men nationwide lost their jobs in the first four months of the pandemic. As schools closed, many moms were forced to leave the workforce in order to care for and help educate their children.

“The pandemic has definitely set back the women’s movement,” says Andrea Davis, owner of Andrea Davis Commercial Real Estate and mother of a 14-year-old daughter. “Ninety-five percent of child-rearing duties defaults to the woman. A lot of my girlfriends with young kids really suffered. They were torn between ‘Do I work and keep bringing money into the house, or do I help my kids pass their grades?’ Many did leave the workforce.”

Women in the commercial real estate and construction fields in Arizona fared better than most as their industries were deemed essential and work continued throughout the statewide lockdown, although many employees pivoted to work-from-home situations.

“We started working from home in March. Like everyone else, we thought it would only be for a short time,” says Kristine Millar, principal for architectural firm Orcut | Winslow.

Because the youngest of her eight kids is in high school, Millar didn’t

30 July-August 2021

have to deal with the daily struggles of managing online learning, making meals or keeping young ones entertained. She did, however, juggle work and study space when five of her daughters decided to ride out the pandemic at home. “That’s something we didn’t anticipate,” she recalls.

“Everybody kind of found their spot.

We made sure we used our ear buds and tried to be considerate of one another. If someone had a phone call or meeting, they would say, ‘You all need to go outside or to a different space.’”

For one week, Millar’s nephew, who’s in second grade, stayed with her family.

“I’m pretty loud, and he was sitting across from me while doing his online schooling. One day, he said, ‘You’re interrupting my class. You need to be quieter,” she recalls with a laugh. “So I got a taste a what other moms had to deal with. I can’t even imagine how hard it was for some of them. You want everything to be so good for your kids, and you’re trying so hard.”

Tuyet Jacobson was seven months pregnant with her second child when the pandemic hit. She also recently had been promoted to project manager of McCarthy Building Companies’ education services business unit.

“Right off the bat, my team said, ‘It’s probably safer if you’re working from home. The last thing you want is to get this virus and then go through complications when you have your baby,’” she says. “It was hard for me to accept because my role is mainly out in the field.”

With a newborn and toddler at home, Jacobson and her husband — who was in the process of starting his own business — knew they’d have to make some adjustments to how they managed their time.

“We got really good at preplanning,” Jacobson recalls. “I’d schedule my meetings around nap time so I would know that there wouldn’t be anyone screaming in the background. Or, I’d lean on my husband to watch the kids when I’d have a critical meeting that that required me to be 100% dedicated.”

Jacobson credits a lot of her ability to balance work and home life to McCarthy. “The company was very proactive when it came to accommodating its employees who were dealing with challenges,” she explains. “They even offered a childcare reimbursement if your kids’ school was shut down and you needed to find additional help. The pandemic was hard on a lot of employees.”

For Corina Burton, owner of CPR Construction Cleaning, the most difficult part of managing work and her four kids, ages 4, 12, 15 and 17, was the emotional toll the isolation took on everyone. “The scariest thing was seeing my children so distressed,” she says. “My older girls have always been very studious and self-sufficient, but the lack of socialization and living in the unknown every day was very unhealthy for them. I definitely needed extra support, not just from my husband but also from an outsider with whom they could share their thoughts and feelings.

“My heart aches for women who felt as though their hands were tied, who didn’t have a support system they needed,” Burton continues. “Even though we’re in 2021 and we want to be forward-thinking and progressive, the majority of home and child care still falls on moms. Change is very slow.”

Leslie Policar, senior estimator at The Weitz Company, agrees. “As a society, a lot of the child-rearing and schooling tends to fall on the mothers. I can’t imagine what it must have been like for the women who had to do it all by themselves. I completely understand why many moms made the choice to drop out of the workforce.

“There were days when my husband would have to go into the office, and

those days were insane,” she continues, noting that online learning presented a lot of challenges for her 7-year-old son. “His attention span is about 5 minutes, so that was interesting.”

If left unaddressed, the issues that many women faced during the pandemic will only exacerbate existing inequalities. By stepping off the ladder now, women may not be able to climb as high in the future.

“Nobody values the time that a woman spends caring for her family or household, even though studies have shown that the amount of multitasking, organizing and money management far exceeds the average job,” Policar says. “I do think that as more women have left the workforce, it’s going drive under-representation of women in working and management roles.

And it’s going to continue to widen the pay gap, because as women start to re-enter the workforce in the next few years, they’re going to have to take lower paying jobs simply because they took a couple years off to care for their families. It’s sad, because I don’t know how to combat it. I don’t know if any of us know how to combat it.”

Corina Burton

Andrea Davis

Tuyet Jacobson

Kristine Millar

Leslie Policar 31

CONSTRU-TECH

Creating the Physical World, Digitally Advances in the way work is viewed are transforming the construction industry

By KYLE BACKER

T

echnology is changing how we live and work at a rapidly increasing rate. From smartphones and smart home systems to entertainment and gaming options, new innovations are being introduced daily. Even the construction industry, which has a reputation for being traditional and resistant to change, is embracing hightech advances that can help deliver projects on time with less labor and in a safer manner.

“What I’ve noticed over the last five years is that tech companies are addressing construction problems.

We’re seeing a lot more software and products that are very userfriendly. They’re not built just around a person who has 20 or 30 years of experience,” says Chris Brown, director of preconstruction and advanced technology for Willmeng Construction.

That’s not to say that folks in the construction industry are Luddites.

Building information technology, or BIM, has been used for more than a decade to create 3D renderings of what used to be confined to 2D technical drawings. Now, however, new products are improving on older technology and leveraging it in novel ways.

ADDING VALUE Ken Smerz is the CEO of Zelus, a firm that specializes in BIM and virtual design and construction (VDC). During his time as a licensed contractor in California, he learned the value of precise measurements — and that 32 July-August 2021

nothing is built exactly to its intended design. To help create an accurate picture of already-built environments, Zelus uses lidar scanning to create a digital representation of reality.

“We use lidar scanners on tripods or drones to shoot out about 1 million points of light per second. Whenever the laser touches something, its light bounces off that surface and back into the scanner,” Smerz explains. “It’s the same technology that police officers use to see if you’re driving too fast, but it’s just recently been used in the construction field.”

Having accurate measurements in the form of a BIM model is crucial when installing prefabricated elements and provides a common template that allows the various trades to coordinate their work.

“Prefabrication seems like it would be easy. You build what’s shown in the model, you take the item into the field, and theoretically you just bolt it in place,” Brown says. “But if one trade installs a sprinkler pipe in a place that it wasn’t supposed to be, that prefabricated piece may not work anymore. So now you’ve got to cut it apart and change it out in the field.”

Less rework has a positive effect on project timelines and budgets.

“Reports by the National Institute of Standards and Technology show that 13% of all project costs on new builds are from rework. Using 3D technology, we can spot where an electrical conduit might clash with the mechanical

Chris Brown

Boe Evanson

Scott Root

Ken Smerz

systems to help reduce rework and compress schedules,” Smerz says.

Similar technology can help track the progress on a job site.

Scott Root, executive director of strategy and innovation for Kitchell Contractors, uses a software program called OpenSpace to create a visual representation of the job site using 360-degree cameras. The program uses artificial intelligence (AI) to assign percentage-complete values to the pictures, so subsequent captures can show how much progress has been made since the last capture.

“During the pandemic, we didn’t have our design partners or owners on the job site as often as they normally are. But OpenSpace pushed information to them in real time so they could look at any day and see the progress,” Root notes. “On our side, we can use the AI aspects to understand, for example, when the drywall is going in and what percentage is already in, which falls right into our construction management plans.”

BUILDING INFORMATION TECHNOLOGY: 3D BIM renderings give builders detailed insight into all components of a project.

NEW WAYS OF SEEING Virtual reality (VR) has also entered the construction field. Wearing a VR headset allows employees and clients to interact with a 3D model and gain a better feel for the spatial relation of the elements before a single shovel hits the dirt.

“In a traditional design phase, clients see several different iterations of a project. If we can bring it into VR and have them go through iterations in real time, we can get decisions solidified faster,” Root says.

Virtual reality also allows the people who ultimately will be working in a space to influence the design. For example, during the design of a hospital room, medical professionals can use VR to provide feedback on everything from the flow of the room to the placement of electrical outlets.

“They’re not builders or designers, but if you can make them feel as though they’re doing their job within a VR setting and using their expertise to experience how a space works, I think that’s where we get the most value out of these tools,” Root says.

Because VR headsets cover the wearer’s field of vision to create an immersive experience, they currently aren’t used in the field. Augmented reality (AR) headsets, however, are closer in size to glasses and provide a digital overlay on what the user is seeing in real time.

Boe Evanson, senior project manager at Weitz, used Microsoft’s HoloLens AR headsets and a software called VisualLive to utilize BIM models in the field during the recent expansion of Sagewood, a senior living facility in North Phoenix.

The facility’s underground parking garage had a 14-inch-thick post tension

slab with thousands of tension cables running through it, with little room for error on the penetrations coming through the slab.

“We used the HoloLens AR headsets to walk the deck before we poured. We were able to see our pipe penetrations coming up through the deck, then, through the HoloLens, see the projected hologram of the walls to make sure those pipes were falling in the walls like they were supposed to,” Evanson recalls. “We caught several items and were able to resolve them before we poured that slab, which otherwise could have been an issue for us.”

33

CONSTRU-TECH

First of its Kind Two projects bring new construction techniques to Arizona

By KYLE BACKER

T

he construction industry has a rich history of developing methods to make the work of erecting buildings safer, more efficient and better for the environment. Two new projects currently underway in the Valley showcase some innovative and eco-friendly materials that are being used for the first time in Arizona.

ADVANCED CONCRETE DESIGN Located at the southwest corner of University Drive and Rural Road in Tempe, Arizona State University’s Interdisciplinary Science and Technology 7 (ISTB-7) building

34 July-August 2021

is a 281,000-gross-square-foot facility that will house multiple sustainability-focused educational and research programs.

Because the project was designed to meet specifications for LEED Gold at a minimum, McCarthy Building Companies used a new technique known as BubbleDeck to reduce the amount of concrete required.

Carlos Diaz, senior project director for McCarthy, says that the aggressive sustainability goals for the project led McCarthy to use BubbleDeck’s void form slab system. Rebar cages hold 13-inch hollow spheres, made from recycled plastic, that displace concrete as it is poured, creating air-filled voids within the deck. Using this system requires the builder to slightly alter the process of how a slab is typically made.

“You can’t just place the spheres in the rebar and pour the deck all the way to finished elevation, because the spheres will want to float up,” Diaz

explains. “Initially, you have to pour about one-third of your total deck thickness. That’s just enough to lock the cage to the form and prevent that floating effect. Then you come back 10 to 24 hours later, and you pour the second lift.”

The lighter concrete also reduce foundation load requirements. “With traditional concrete slabs, column spacing at 20 feet is typical. By removing all that weight that would want to sag in the middle, we have columns spaced at 37 feet, which makes the area feel more open like a warehouse,” Diaz continues.

Because concrete has a large carbon footprint, reducing the amount used on a project has knock-on effects. “Using 1,000 less cubic yards of concrete means there’s 100 less trucks that we have to coordinate and bring onto the job site and 100 less trucks driving on the road. We also don’t need to operate a large piece of equipment to pump all that concrete,” Diaz says.

BUBBLEDECK: Team members from McCarthy Building Companies install the hollow sphere-and-rebar BubbleDeck system at ASU’s ISTB-7 building.

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CONSTRU-TECH

Carlos Diaz

George Foristall

With sustainability being a top priority for the stakeholders, components were stretched in other ways. McCarthy used a concrete mix with 40% fly ash, a byproduct harvested from coal-burning facilities by attaching nets to the top of exhaust fans.

“Using that much fly ash is tough to do. The concrete gains strength slower, so it’s a bit of a burden on the project schedule,” Diaz remarks. “Applying it to the entire project — 18,000 cubic yards of concrete — was a big sustainability milestone for us.”

THE FUTURE OF WOOD Visually, the five-story, 184,000-square-foot office building in

36 July-August 2021

downtown Tempe stands out thanks to its sleek design that features a mix of wood, concrete, steel and glass. But The Beam on Farmer also attracts attention due to its use of cross laminated timber (CLT). “There are only a handful of office buildings in the U.S. that have this to date, but this technology has been used for over 20 years in Europe,” says George Foristall, director of real estate development at Mortenson Construction.

Cross laminated timber uses 1-by6-inch boards that are stacked atop each other, with each layer turned 90 degrees from the previous one to increase structural rigidity. The wood comes from young trees, which helps with the project’s ecological impact.

“If you use new-growth trees, they grow fast and you’re not cutting down a 100-year-old tree. As new trees grow and you use them to make CLT, you capture the carbon within the fibers of the project,” Foristall says.

The CLT is prefabricated and shipped to the job site, meaning there’s no waste created from cutting after delivery.

“Production is nearly, if not totally, zero waste. Every piece gets cut and utilized into another piece, all the way through

the lifecycle and down to the sawdust that gets put into oriented strand board, or OSB,” Forestall notes. The timber also reduces the use of carbonintensive materials. “Concrete is one of the most environmentally unfriendly products to generate. By using CLT, we’re reducing the amount of concrete needed significantly,” he adds.

To showcase the CLT inside the building, an underfloor air distribution (UFAD) system was used, which eliminates the need for overhead ductwork. The system also helps with the air quality. “With the underfloor air distribution system, the cold air comes from the bottom of the floor and then naturally rises to the ceiling return as it heats up. The air is only moving in one direction, so you don’t cross contaminate the old air and the new air within the space,” Foristall explains.

“All the filters in the world aren’t going to help clean the air that’s selfcontaminated before it gets to you.”

CROSS LAMINATED TIMBER: Environmentally friendly and sustainable, CLT will be on full display for the first time in Arizona in The Beam on Farmer.

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LABOR

LABOR PAINS

As the skilled trade workforce continues to dwindle, how can Arizona keep up with increased construction demands?

By KYLE BACKER

T

he five C’s of Arizona — copper, cattle, climate, cotton and citrus — have a long history of being the pillars that held up the state’s economy.

Today, there is a new C that is driving the state’s growth: construction.

After an initial dip in business during the first wave of closures in March 2020, the construction market gained steam after Arizona Governor Doug Ducey classified the industry as essential.

“We didn’t know if everything was going to grind to a halt,” says Steve Whitworth, president of Kitchell Contractors. “When construction was deemed an essential business, things kept going. Our volume was a tick down from what we forecast for the year, but it was right there on par for

38 July-August 2021

where we were in 2019, so it didn’t set us backwards like we thought it could at the beginning of the pandemic.”

The growing need for new projects and tenant improvements is strong, with no signs of slowing. But can the construction industry keep pace with demand?

GREAT RECESSION HANGOVER The No. 1 issue facing the construction industry is the lack of skilled labor, but this isn’t a new phenomenon. Since the Great Recession in the late 2000s, companies have struggled to recruit and retain workers.

“In 2008, when the economy took a big turn and the bubble popped, Arizona lost about 40,000

DEVELOPING TALENT: Internship programs offer a great way for companies to attract future employees. Here, interns from Kitchell's Hardison/Downey Construction division walk a job site.

construction and skilled laborers who never came back. Our industry fought that for the last 12 years, and we’ve never made it back to the levels we had pre-2008,” notes Dave Tilson, vice president of business development at Renaissance Companies.

Many construction workers who found themselves unemployed took jobs elsewhere or left the industry altogether. Compounding the problem is the fact that Arizona was particularly hard hit by the recession,

which meant a slower recovery compared with other states — one that it was still struggling with in early 2020.

“We were already dealing with a shortage of skilled labor going into the pandemic. Now, our concern is that, with the floodgates opening, it’s going to be even worse. There are a lot of megaprojects coming to the area that are going to require a great deal of resources and highly skilled labor. It’s going to be very competitive,” Whitworth explains.

This intense demand for new projects is cause for celebration when firms have the workers to fulfill the job safely and to exacting standards. Overstretching leads to sloppy work and possible reputational harm.

“This is the kind of thing that can hurt a business down the road because if we take on more than we can handle, it affects our reputation as being a company that can deliver a highly specialized, unique and exceptional product to our client,” says Dave Pisani, director of systems operations at Clearwing Systems Integration. “Where do we draw that line?”

The lack of candidates isn’t exclusive to just one segment of the industry or level of experience, either.

“We’re all struggling to find skilled and qualified staff, from the tradesmen all the way up through management, engineers and designers. Construction has a shortage of qualified individuals,” comments Korey Wilkes, principal architect at Butler Design Group.

Adding to the anxiety is the ballooning prices of materials, including steel, lumber and copper.

Adds Whitworth, “Labor and materials — what else is there? If both of those are a concern, then that’s a problem. On the positive side, we’re not looking at a 2008 situation. We’re going to solve the labor issues, we’re going to solve the materials issues, and we’re going to find a way to get it done.”

INVESTING INTERNALLY Finding labor is a challenge, but groundbreakings, ribbon-cuttings and everything in between are still happening throughout Arizona.

If there’s a bright side to the labor shortage, it’s that companies have doubled down on the importance of

investing in their workforce.

Two years ago, DP Electric started an internal employee development program called DP University. Dan Puente, founder and CEO of the company, explains, “We wanted to take the curriculum that the National Center for Construction Education and Research had and amend it to make our folks a little stronger, not only technically but also from a leadership perspective. It was important for us to develop these folks and make them a little more well-rounded.”

Creating an internal training system is not easy, but the return on the investment is worth the effort. For Pisani, training is essential. Most of his employees have backgrounds in entertainment production. They may know about the complex lighting and audio systems the company installs in schools, houses of worship and other large venues because they worked as roadies or sound engineers, but they’re less familiar with traditional construction concepts.

“We can’t rely on just finding these people with special skills, we have to create them,” Pisani remarks. “Part of our training initiative is doing just that — making the programs so we can help people get to where we want them to go.

That’s the next step in our evolution.”

Other companies work with industryspecific organizations, such as the Arizona Builders Alliance (ABA) and the Associated General Contractors (AGC), to train their employees.

“We do a lot of work with the AGC and ABA to help continue to grow our trades professionals,” says Shelby Saifi, human resources director at Haydon Building Corp. “For example, we’ll send people to the Commercial Driver’s License program if they’re interested in operating that kind of machinery and employ them through that process.”

In addition, Hayden, as well as other firms such as Kitchell and Ryan Companies, offer internship programs that expose college students to the field and can lead to future employment.

“We have a robust intern academy, and we have about 15 or so college students that come work with us every summer,” Whitworth says. “We expose them to all areas of the business and hopefully bring them on full time when they’re done with their degree. The academy is a big

Chuck Carefoot

Dave Pisani

Chelsea Porter

Dan Puente

Shelby Saifi

Dave Tilson

Steve Whitworth

Korey Wilkes

part of our recruiting process.”

Haydon’s program offers opportunities mainly for students who are majoring in construction management or engineering. Interns spend their days out on a job site working with various team members on the project to see how each role contributes to the finished product.

Chuck Carefoot, senior vice president 39

LABOR TOP: Field experience is key to a successful intership. Here, interns for Haydon Building Corp. visit a construction site during welcome week.

BOTTOM: Interns at Kitchell learn all facets of the construction industry, including project scheduling.

for Ryan Companies, says that because the labor market is tight, it’s important to invest in people early in their career to develop them for future roles. “We always look for a big crop of interns to start with, then hire at the entry-level position and place people with internal mentors to help them see a future with us and in the industry.”

SOWING SEEDS For decades, construction jobs were seen as a reliable path to achieving the American Dream. When it became popular in secondary education to push everyone towards college, a career in the trades started to look less desirable.

“I think that our education system tends to drive people away from the trades by saying that they need to go to college,” Wilkes says. “And while that is great for some, being a tradesman earns a good living and is dignified work.”

Generational differences have also changed how construction companies approach recruiting talent. What motivates someone born in 1990 is different than what motivates someone born in 1970.

“It’s important for millennials to feel that the work that they’re doing is contributing to the greater good. It ties that extrinsic and intrinsic motivation together. If you provide that in any role, you’ll have happy employees who want to be successful,” Saifi explains.

Chelsea Porter, director of marketing at Renaissance Companies, adds that the generational mix can be beneficial for everyone involved. “You have your very traditional workers in the field who’ve worked their way up and bring a major skill set. Now we’re meshing those folks with these millennials who are tech savvy and think differently.

Bridging that gap and teaching everyone to complement each other has been an interesting process, but I think it helps our company make sure we stay on the forefront as a general contractor.”

40 July-August 2021

For many companies, addressing the labor shortage in the long term means working with teens — sometimes even younger — to raise awareness about construction as a rewarding career. For example, the nationwide ACE (Architecture. Construction.

Engineering) Mentor Program Inc., connects high school students with contractors, architects and engineers who nurture the teens’ interest in the construction field.

Locally, Build Your Future Arizona (BYFAZ) is an initiative of the Phoenix Chamber Foundation that educates students about the

opportunities available to them in the construction industry. Puente serves on its advisory board.

“The biggest thing young people and parents don’t understand is that construction is a rewarding career choice. The parents don’t realize that some of our senior field managers make six figures a year. A lot of times they assume you need to get a college education to make good money and have a steady job,” he says. “I think the industry will eventually make that shift and once again become desireable, but that’s not enough to deal with what we’re faced with right now.”

DOWNTOWN PHOENIX UPDATE

BIOSCIENCE IMPACT A seed planted two decades ago flourishes in Downtown Phoenix

By REBECCA L. RHOADES

PHOENIX BIOMEDICAL CAMPUS: The PBC Innovation Center

A

mazing things are happening in Downtown Phoenix. The city is experiencing tremendous growth. In addition to welcoming new residents from across the country, Phoenix also has been attracting businesses in the health care and bioscience sector.

It all started approximately 20 years ago with the purchase of 30 acres for possible expansion of the convention center and, later, consideration for a new stadium for the Arizona Cardinals.

When both projects shifted course, Phoenix was left with a large plot of undeveloped land.

At the same time, Dr. Jeffrey Trent had just decoded the human genome.

Inspired by the Phoenician’s work, the city decided to partner with educational, science and medical visionaries to make a substantial investment in the life sciences.

“City and state leadership, the governor and the Flinn Foundation

42 July-August 2021

wanted to bring a revolution in medicine to Phoenix,” recalls Christine Mackay, community and economic development director for the City of Phoenix. “They created this idea of a central area where education, health care and biosciences converged.”

In 2004, the Phoenix Biomedical Campus (PBC) was established on that vacant lot at the northwest corner of Seventh and Van Buren streets.

LIFE SCIENCES HUB Anchoring the PBC is the $58 million headquarters of Translational Genomics Research Institute (TGen), which was founded by Trent. The organization’s presence served as a magnet for additional health and science businesses, attracting University of Arizona’s College of Medicine; Arizona State University’s College of Health Solutions, Edson College of Nursing and Health Innovation and Biodesign Institute;

and Northern Arizona’s Health & Human Services department.

“Having all three state universities in one geographic area creates great momentum and synergies,” explains Thomas Maynard, vice president of business development for the Greater Phoenix Economic Council.

The latest addition to the campus is the state-of-the-art PBC Innovation Center, also known as 850 PBC, developed by Wexford Science & Technology, a Maryland-based company that collaborates with universities, research facilities and medical centers to create mixed-use communities that focus on health sciences. The 227,000-square-foot building, which celebrated its grand opening at the end of March, features research laboratories, clinical trial areas, a wet lab and shell space that can be customized for future tenants. It is home to a number of ASU innovation and research departments, as well as a

selection of spin out companies, including OncoMyx Therapeutics, which develops immunotherapies; ElectraTect, which is focused on making tools to detect and measure marijuana consumption; and Calviri, which provides vaccines and diagnostics to prevent and treat cancer.

Surrounding the campus, within 2 miles in any direction are more than two dozen education, research and medical facilities, including Bioscience High School, Banner University Medical Center, Phoenix Children’s Hospital, Valleywise Medical Center and Banner MD Anderson Cancer Center. Farther north, at Central Avenue and Thomas Road, Nebraska-based Jesuit college Creighton University is putting the finishing touches on its Health Sciences Campus at Park Central.

“For the last eight or nine years, our third- and fourth-year medical students have been doing rotations in Phoenix.

When you look the ratio of health professionals to the population, which is increasing rapidly, the numbers are lagging,” explains Catherine Todero, vice provost of Creighton University’s Health Sciences Campuses. “We already partner with Dignity and Valleywise health systems, so it made sense to build a branch campus here as a way to foster more health care leaders.” The $100 million, 180,000-square-foot campus is scheduled to open for classes this fall.

“Companies want to be in close proximity to other companies, whether they’re competitor or collaborator, as well as talent. Those are the two main driving factors when it comes to development,” explains Rick Naimark, ASU’s associate vice president for program development planning. “Downtown Phoenix has all of the ingredients to become one of the top health care and biomedical markets in the U.S. This is driven on the southern end by the Phoenix Biomedical Campus and the new Wexford building. If you go north along Central Avenue up to Park Central, you’ll find Creighton University’s campus. And everything is connected by the light rail.”

URBAN LIVING Investment of the medical and biosciences industries served as a catalyst for additional growth in Downtown Phoenix in recent years. Increased job opportunities brought in new workforce,

ASU: Thunderbird School of Global Management

Christine Mackay

Thomas Maynard

which in turn attracted the residential, retail and entertainment sectors.

“At the end of 2020, there were 20 cranes in the air. That’s never happened in the history of Downtown Phoenix,” Mackay notes.

The Thunderbird School of Global Management’s new headquarters on the downtown campus of ASU is on track for a fall opening. Also scheduled for completion is ASU’s new 16-story dormitory and education building.

Eleven residential projects, ranging from small multifamily complexes to towering mix-use developments, currently are under construction. Combined, they’ll bring in almost 3,000 housing units.

“Today’s employees want to be 10 to 15 minutes from their places of work, and they want to be connected by transit,” Mackay says. She notes that

Catherine Todero

Rick Naimark

about 58,000 jobs exist in Downtown Phoenix, many of them centered around the biosciences and technology. “That workforce is choosing to live downtown, and having more people living here keeps the area growing.”

Following the influx of people are restaurants and bars. “We’re also seeing a return of traditional retail — the types of business that used to be here in the 1940s, ’50s and ’60s before suburban development and malls drew them away,” Mackay remarks. “Downtown Phoenix is once again becoming a vibrant 18-hour economy.”

Maynard agrees. He says, “As public events become more of a reality, I think a lot of people are going to be pleasantly surprised when they come back to downtown and see what’s been happening.”

43

SCOTTSDALE-TEMPE UPDATE

TEMPE: 100 Mill

Tale of Two Cities

Scottsdale and Tempe are experiencing a development boom

By REBECCA L. RHOADES

W

hile the COVID-19 pandemic may have curbed progress for a lot of businesses in the East Valley, construction showed no signs of slowing down. Massive multifamily housing communities, expansive business campuses, eye-catching mixed-use towers and luxury hotels are transforming the region’s skyline, and nowhere is that more evident than in Phoenix’s suburban neighborhoods of Scottsdale and Tempe.

“It’s been an interesting year.

Everyone was expecting the worst, but we continue to be as busy as ever as people and businesses are looking to move here from highercost locations,” says Maria Laughner, economic development manager for the City of Tempe.

The last couple years saw Tempe pivot from a university town into the Valley’s second largest urban center.

44 July-August 2021

The area surrounding Tempe Town Lake has experienced some of the most notable change. Completion of the 16-story mixed-use Watermark in 2019 brought retail and dining options to the north shore. “People are using the plaza area as part of their walking path, which is what the developers wanted when the project was designed,” Laughner explains.

The remainder of 2021 and 2022 will see the creation of more mixeduse projects that will attract not only new businesses but also workforce.

Just across the Salt River, the 24-story towers of The Pier will complement the Watermark’s gleaming facade, while adding office and retail space as well as 500 apartments.

Visitors will also have more options over the next couple years.

“We have a lot of entitlements for hotels, primarily in the downtown

area, and we’re glad to see three or four of them under construction now,” notes Ryan Levesque, community development deputy for the City of Tempe. “Since the early 2000s, Tempe has been underserved by hotels. Our occupancy rates run in the 90% range, and when we have large events, people have to stay in other communities because we simply do not have the space to accommodate everyone.”

Scottsdale is also experiencing an increase in hospitality growth.

Last year saw the opening of a number of anticipated projects, including Canopy by Hilton Old Town and AC Hotel Scottsdale North. The next 18 months will bring even greater value to the city’s tourism sector with the opening of a bevy of high-end hotels as well as entitlements for additional accommodations in

Old Town’s Entertainment District and North Scottsdale’s Airpark.

But Scottsdale is more than just a resort destination. It is fast becoming a center for finance, insurance and health care. “Companies that are expanding or relocating from either the East or West coasts are looking for areas where they can cluster,” says Rob Millar, economic development director for the City of Scottsdale. “We currently have a strong position in these target industries, and there’s a great capacity for growth.”

Nationwide Realty Investors added to the conversation when it purchased 134 acres in the high-profile section of North Scottsdale known as Crossroads East, which runs along the Loop 101 between Hayden and Scottsdale roads.

The firm is developing a master-planned community, called Cavasson, that will include commercial office space, hotels, retail, restaurants and infrastructure improvement. Construction of the project’s anchor tenant, the 460,000-square-foot Nationwide Insurance headquarters, was recently completed and employees are now being phased into the office.

Across the street from Cavasson, stun gun and body camera manufacturer Axon Enterprise plans to build a new state-of-the-art headquarters that will consolidate five location and include manufacturing and research. The company recently acquired the 73-acre lot for $50 million at an Arizona State Land Department auction.

“For a long time, the former Henkel headquarters, renamed the Ilume Innovation Center, was the lone office building in that region north of the 101,” Millar says. “Now that area is taking on an unofficial corporate role, and there’s capacity for more business headquarters.

We still have about 700 acres of state land available.

“Companies like to be located in areas where there is a lot of growth,” he continues. “The synergy that comes from being clustered near similar businesses and shared talent adds to the economic impact.”

On the following pages, AZRE Magazine takes a look at some of the most highly anticipated projects currently underway that will not only

Maria Laughner

Rob Millar

Ryan Levesque SCOTTSDALE: Caesar’s Republic Scottsdale

change the landscape of Scottsdale and Tempe but also the way the cities’ residents live and work.

SCOTTSDALE

Caesar’s Republic Scottsdale Caeser’s Entertainment brings the glitz of Las Vegas to Scottsdale Fashion Square with its first nongaming hotel experience. With construction scheduled to begin in Q4 2021, the 11-story boutique resort will add 265 rooms to Old Town’s northern edge. Designed

by Missouri-based BRP Architects and built by Layton Construction, the luxury accommodations will feature two restaurants by celebrity chef Giada De Laurentiis, while Scottsdale-based Riot Hospitality Group, owner of The District, Farm & Craft and El Hefe, among others, will offer dining concept Seven (SVN) on the seventh floor.

Cavasson In 2018, Nationwide Realty Investments paid $83 million for

a 134-acre plot of state land at the northwest corner of Loop 101 and Hayden Road, which the company and general contractor Layton Construction are transforming into a $950 million mixed-use development. Anchoring the property is the 460,000-square-foot regional headquarters for Nationwide Insurance and an adjacent fivestory parking structure. Also under development are the 150,000-squarefoot technology headquarters for Choice Hotels International and the 237-room Hilton North Scottsdale. Designed by BRP Architects and featuring 15,000 square feet of meeting space, the hotel will cater to business travelers.

Curio Collection by Hilton Old Town Part of the same portfolio as Scottsdale’s renowned Boulders Resort & Spa, Hilton’s newest boutique brand will be located on Camelback Road at the former site of the famed Don & Charlie’s restaurant. Featuring 169 guest rooms, 4,500 square feet of meeting and events 45

SCOTTSDALE-TEMPE UPDATE residential project. The entire property is owned and developed by Five Star Development, and PWI Construction is the general contractor.

TEMPE

SCOTTSDALE: The Kimsey

SCOTTSDALE: Ritz-Carlton at The Palmeraie

space, a 10,000-square-foot pool deck, on-site restaurant, retail options and more, the six-story, 97,000-squarefoot luxury hotel in the heart of the Entertainment District is being developed by Opwest Partners.

The Kimsey Centered around the historic Triangle Building, which was designed by renowned midcentury architect Ralph Haver, this $150 million mixed-use development will include a 168-room AC Hotel by Marriott, a 190unit residential complex, a restaurant and commercial space. Utah-based developer PEG Development is working with Ryden Architects to create a preservation plan that will maintain Haver’s distinctive low-pitched singlegable structure that once served as Scottsdale’s City Hall.

46 July-August 2021

The Palmeraie Flaunting an exclusive Paradise Valley address, the northwest corner of Scottsdale Road and Lincoln Drive is poised to become the most affluent destination in Arizona with the opening of the 122-acre Palmeraie community in early 2022. The heart of the $2 billion development is a 215-room Ritz-Carlton hotel that will be surrounded by 112 multimilliondollar Ritz-Carlton villas and estate homes, all set among lush, intricate landscaping. After relaxing by the junior Olympic-size pool, guests will be able to explore the luxury shopping and dining district, which will showcase such elite merchants as Chanel, Hermes, Dior and more. Italian fashion house Fendi will be adding to the highend mix in 2023 with the opening of its first North American ground-up

Banyan North Tempe For the first time in more than a decade, the City of Tempe expanded its boundaries when it annexed a 16.5acre site in North Tempe county island.

The property, located near Tempe Town Lake, will become the home of a $177 million multifamily development.

Designed by Todd & Associates, with McShane Construction Company serving as general contractor, the community will showcase 651 units, ranging from studios to four bedrooms, along with pools, a fitness center, outdoor spa, clubhouse and library. The first phase of 310 units is slated for completion in early 2023.

Eastline Village Development of Phase 1 of one of the most innovative housing communities in Arizona began in April. As the country’s first car-free neighborhood, Culdesac’s Eastline Village is a $140 million project consisting of 636 residential units, 24,000 square feet of retail and 35,000 square feet of amenities on 16 acres west of the Loop 101 and south of the Salt River. Residents will be contractually forbidden to park a car on-site or on nearby streets. The architect is DAVIS, and the general contractor is Wespac Construction. Completion is projected for September 2022.

Interdisciplinary Science and Technology Building 7 Rising from the southwest corner of University Drive and Rural Road, the 281,000-square-foot ISTB-7 research facility will serve as the gateway to ASU’s Tempe campus. It’s the latest addition to the city’s Novus Innovation Corridor, a progressive 355-acre mixed-use development that will house 10 million square feet of sustainable offices, residences, hotels, retail stores and restaurants, and bring 34,000 jobs to the area. Designed by Grimshaw Architects and Architekton, with general contractor McCarthy Building Companies, the structure is pursuing LEED Platinum status.

Tempe Depot In October 2020, RED Development was granted approval for a 993,000-square-foot mixed-use project that will preserve and incorporate the city’s historic train depot. This structure comprises a 17-story Class A office tower, an 18-story five-star hotel that will provide 280 guest rooms and almost 10,000 square feet of conference space, 15,000 square feet of indoor retail and restaurant options, 4,000 square feet of outdoor dining and approximately 22,000 square feet of open-air plazas for gathering. The one-story 1924 brick depot will be rehabilitated and repurposed as retail, dining and bar space.

The Beam on Farmer Construction began on this five-story 184,000-square-foot office building in May, with a projected completion date of May 2022. Developed and built by Mortenson, The Beam is located in the heart of Tempe, just blocks from Mill Avenue and ASU. The project has been making news for its first-in-Arizona use of cross-laminated timber. As suggested by its name, the building will showcase the wood throughout its offices and public spaces, along with concrete, steel and glass for a look that is sleek and contemporary yet warm.

The Pier Development continues to ramp up along Tempe Town Lake. One of the latest additions is the 586-unit mixed-use community known as The Pier. Overlooking the waterfront, the 24-story dual-tower complex will offer more than 1,300,000 square feet of retail, dining, Class A offices and approximately 500 market-rate apartments. Designed by architect Rinka Chung and developed by Springbrook SGC, it will also feature below-grade parking for more than 1,000 vehicles.

Vīb Tempe Best Western Hotels & Resorts’ newest hotel offering, Vīb, which is short for “vibrant,” is an upscale 102-room technology-centric boutique that looks to attract not just visitors to ASU but also travelers who crave a stylish, businessfriendly experience. The innovative lobby flexes to serve as a workspace,

TEMPE: ASU Interdisciplinary Science and Technology Building 7

TEMPE: The Pier

socialization hub and event location. The hotel will also offer traditional amenities, such as a fitness center, outdoor pool and meeting rooms. Situated on a formerly vacant lot just outside of downtown Tempe, the $20 million hotel, built

by GCON, is anticipated to open in September 2021.

100 Mill Hotel Approved earlier this year, this is the final phase of development for the

2.5-acre site near the intersection of Rio Salado Parkway and Mill Avenue.

The 13-story 150,000-square-foot hotel will join an 18-story, 287,000-squarefoot Class A office tower. The project is notable for its restoration of the historic 1873 Hayden House, one of Arizona’s oldest adobe buildings and the former home of Arizona’s late U.S. senator Carl Hayden. It is a partnership between LaPour Partners and NewcrestImage Development.

47

2021

ABA

Chairman’s Message Steve Grauer looks to guide ABA members through post-pandemic recovery

By REBECCA L. RHOADES

W

hen Steve Grauer took over as board chairman of the Arizona Builders Alliance for 2021, he faced an industry that was undergoing substantial change.

While the COVID-19 pandemic had thrown a wrench into the way many companies operated for most of 2020 and into the first half of 2021, the past year also saw unprecedented growth in construction throughout the state.

A career construction professional, Grauer’s background provides him with unparalleled insight into the needs of all ABA members, regardless of experience or career level, as well as a unique understanding of the local business and subcontracting communities.

Grauer graduated from the University of Washington with a degree in Construction Management. He joined Hensel Phelps in 1990 where, over the last 30 years, he has served a variety roles within the company, including field engineer, office engineer, project engineer, area superintendent, project manager, operations manager and manager of work procurement before being appointed to his current position of Western district manager and vice president.

A Designated Design-Build Professional, Grauer’s involvement with the ABA grew out of Hensel Phelps’ work in Arizona, which began to flourish in the mid 2000s. He’s been an active member since 2005, while the company has been an active corporate member for three decades. Over the years, his role in the organization has grown from serving on the legislative committee from 2008 to joining the board of directors in 2016. “I really wanted to contribute to the organization that serves the industry and membership at a higher level and help steer the future of the ABA,” he explains. “At the end of the day, it was an opportunity to help give back to an industry that has given so much to me.”

AZRE Magazine recently spoke with Grauer to learn how the ABA has handled the recent pandemic and how it continues to assist its members. Notes Grauer, “I would like to see the ABA continue to build broad coalitions within

52 July-August 2021

the industry and within the greater business community to ensure that Arizona continues to enjoy the free market/ enterprise environment that we have had to date. The development that we are experiencing and will continue to experience is the result of a pro-business environment, responsible regulation and reasonable taxes. This has been the fuel for Arizona’s growth over many other states.”

AZRE: The COVID-19 pandemic tested all industries.

How did the ABA help its members get through these unusual times?

Steve Grauer: The ABA continued to lead our members via education, legislative advocacy and limited networking and business development opportunities — although they looked and felt very different. So many of our programs rely on face-to-face interaction, so our biggest challenge was to continue to support and add value remotely. First, our staff

ABA Our proven career development programs, including the Leadership Development Forum, Senior Executive Program, Project Manager Development Program, Supervisory Training Program and Women in Leadership Program, as well as numerous other industry-specific seminars and webinars, will continue to provide great value to our membership. immediately began offering programs that would help our membership navigate the unprecedented challenges being created by the pandemic. Through our national relationships with our parent organizations, Associated Builders and Contractors and Associated General Contractors, we were able to offer numerous webinar opportunities that helped our members navigate the safety, business and economic challenges that arose from COVID-19. There was no playbook for what we were all going through.

Members, especially those that operate on a regional or national basis, shared and offered lessons learned and best practices for the benefit of all other members, large and small.

The industry definitely came together in an unprecedented way. As business challenges related to COVID-19 got to be more mainstream, ABA staff adapted many of our services and programs to a temporary online solution.

AZRE: How has the construction industry fared over the last year-and-a-half?

SG: Thankfully, most construction sectors continued to be robust following the initial challenges associated with the pandemic. Several even set all-time records for work put in place by the close of the year, although it is acknowledged that some construction sectors, such as retail, entertainment and office, were hit hard and are slow to recover. The governor’s initial executive order, which widely defined construction as essential, was extremely important to Arizona’s economy and the overall health of the industry.

It is ironic that an industry that typically had been the first into and the last out of prior economic downturns was steadfast during this pandemic and was a major contributor to Arizona’s economy.

AZRE: We’re hearing that there is more work than companies can handle right now — compounded by the fact that quality labor is difficult to find. How is ABA addressing these issues?

SG: There is no doubt there is a growing abundance of work as well as challenges with properly staffing that work — both in the field and the office. There can also be a tendency to 54 July-August 2021

“overeat” when such opportunities are plentiful. Firms need to have the commitment and discipline to have the right quality and quantity of management, supervision and craft workforce to execute the work awarded to them. There has always been a fine line between balancing the growing market share in good times with the ability to properly execute and deliver in these times. The ABA has the management, supervisory and skilled craft programs to help increase the number of qualified personnel that the industry will need in order to meet the challenges ahead.

Our proven career development programs, including the Leadership Development Forum, Senior Executive Program, Project Manager Development Program, Supervisory Training Program and Women in Leadership Program, as well as numerous other industry-specific seminars and webinars, will continue to provide great value to our membership. In addition, for workforce development, we continue to have our apprenticeship programs and our strategic partnership with Build Your Future Arizona to help build the skilled craft workforce.

AZRE: What does the building forecast look like for the remainder of 2021?

SG: From all industry indicators and feedback from ABA membership, construction will remain busy throughout the remainder of 2021 and for the next several years — perhaps at record levels. Manufacturing, high technology, mission critical and residential will lead the way. Population growth will then lead to growth in other sectors, both public and private.

AZRE: Can Arizona sustain such growth?

SG: The construction industry is made up of problem solvers and, overall, is extremely resilient. The capabilities, capacities and workforce challenges that have existed since the Great Recession and even before will likely continue. To be successful, we will need to continue to develop industry partnerships, work together more collaboratively, grow the workforce and leverage appropriate technology. The future remains very bright!

®

ABA

President’s Letter ABA vigilantly protects the commercial construction industry through advocacy and coalition building

T

he Arizona Builders Alliance (ABA) advocates for the entire commercial construction industry. As our state’s economy emerges from the pandemic and its effects, it is vital that our efforts to protect the industry and the entire Arizona economy continue vigilantly.

Sacrifices have been made to keep businesses open and moving forward.

Those sacrifices need not be in vain.

The reaction and preemptive efforts regarding the pandemic provide lessons on how to bring interests together for the greater good and how to go it alone if that is the only path. With respect to the multilateral efforts to keep Arizona safely open, all hands were on deck advocating for the essentialness of all businesses. Construction was deemed essential because of our efforts. Other sectors of the economy were not. For the most part, each business sector was understandably looking out for their own interests. However, after stepping back and taking on a different perspective, we should have advocated for broader interests. After all, we are all in this together.

ADVOCACY NEVER SLEEPS Throughout the pandemic and now in a post-pandemic economy, our 56 July-August 2021

GOING IT ALONE The ABA learned of the ROC qualified-party liability exposure issue days after the Arizona legislature deadlines for introducing new legislation. We could not wait until January 2022 to advocate for a bill correcting this issue. We had to act quickly. Every day without this corrective action would place the entire construction industry at risk of exposure to personal liability, piercing corporate veil protections.

Our lobbying team met with legislators from all sides of the aisle and found an appropriate vehicle for a “striker” amendment: HB 2670. The bill was unanimously passed through both chambers and signed into law in just 68 days after the issue first came to the ABA’s attention. Unanimous support in such a short time is quite a feat. Time was of the essence, and we did not have the opportunity to seek broad support until after the process was in place.

COALITION BUILDING

Tom Dunn ABA

proponents and those that oppose our efforts continue. ABA unilateral actions included spearheading quick legislation to eliminate liability exposure for qualifying parties in Arizona. In 2019, the Arizona Registrar of Contractors (ROC) omnibus bill (SB 1397) unintentionally added language that a qualifying party or “a person named on a license” is “responsible for any violation” of the ROC statutes. The intent of this language was to clearly state that a qualified party would be held accountable — for license purposes only — for any ROC violations of the licensee. However, many legal minds opined that the exposure was not limited to just licensing and included personal liability for the licensee’s company action or inaction.

The time is now for coalition building as the Arizona economy has a chance at a long-lasting boom that could be derailed by overzealous policy-making.

Those that have different views about how an economy should operate are persistently advocating for changes that could decimate our economy. ABA is part of broader coalitions that protect not just commercial construction interests but also the diverse issues that may affect Arizona’s economy.

CALL TO ACTION Here is your chance to advocate for your industry. If you’re in vertical commercial construction, join ABA. If you are in a different business sector, join a similar association.

Pay attention, ask questions and get involved. Your actions help us maintain vigilance to protect the economic vitality of our state. Email me anytime at tdunn@azbuilders.org.

Tom Dunn is president of the Arizona Builders Alliance.

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ABA

Building Better Leaders ABA’s Supervisory Training Program sharpens leadership skills

By KYLE BACKER

T

he Arizona Builders Alliance (ABA) is in the business of developing new leaders. One way the organization is doing just that is through its Supervisory Training Program (STP), which upskills those who are ready for a leadership role.

“This could be a foreman who has shown some promise and is ready to step up or has just been moved up and gotten his or her feet wet. We’re going to put them through this program so they can understand the things they wouldn’t learn being a carpenter in the field,” says Jeff Dalton, vice president of FCL Builders, who helped bring the program to the Grand Canyon State.

LESSONS LEARNED While new to Arizona, the STP has been around since the 1970s as an educational program of the Associated 58 July-August 2021

General Contractors of America. The curriculum is broken down into six units: leadership, communication, scheduling, contract law, construction productivity and risk management.

Upon completion of all units, students earn a nationally recognized certificate.

The skills taught are crucial for anyone new to a supervisory role in construction. “When I first started, I had to work on time management,” says Zachary Byard, senior superintendent at Adolphson & Peterson Construction. “When you get to this level, you have to prioritize what things are going to take the longest amount of time and what things are the most pressing, get those done first, and then move on.”

As a leader, communication is critical for running effective teams. “Having difficult conversations is big. Folks start to learn leadership as they’re working their way up the craft, but this is meant to take it a few steps further

by teaching how to run larger crews and how to get people motivated,” says Brad Nelson, general superintendent at Hensel Phelps.

The classes themselves are designed to engage students beyond a sit-andget style presentation. “It’s hands on.

The instructors discuss scheduling, and then they have sample projects for which the students create schedules. In the class on contracting, the teachers pass out contract language and tell the students to read through it and pick out where specific clauses are,” says Dalton. “Construction folks are handson, and they’re better when they’re doing something rather than sitting in a lecture hall.”

Since many of the activities are interactive, participation is necessary for students to learn the material and is the main metric used for evaluation.

There are, however, expectations of students between classes. “There’s on-the-job training forms that

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Zackary Byard

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students fill out in preparation, along with reading requirements. But, it’s really about the application part of it.

Are they finding places in between the classes to apply what they’ve learned?” says Stephen Nichols, project director at A3 Construction Management Services.

PROFESSIONAL SUPPORT When Amber Shepard, self perform assistant manager at McCarthy Building Companies, put out an email asking for volunteers to be an instructor for the STP, she was happily surprised by the enthusiastic response. “I’ve got a backlog of folks who want to participate as instructors. I’ve even got people in other states reaching out saying, ‘Can IN CLASS: Collaboration between participants is crucial in the Supervisory Training Program.

60 July-August 2021

Brad Nelson

Stephen Nichols

I fly in to be an instructor for a day or two of this program?’” she says.

Part of the enthusiasm from the would-be instructors stems from their own experience in the STP in other states. Shepard believes that this excitement helps encourage students to sign up.

“We filled out this first session of courses very quickly and still have a massive list of names of people who want to participate,” she comments.

“Our general foremen want to be a part of this because they see that the program is going to give them the tools they need to be as successful as those folks in our leadership positions.”

Since the curriculum is already written, instructors don’t have to worry about creating any materials. “There are slideshows that are already built, and there’s an instructor’s manual. Once someone volunteers, I coordinate with

Amber Shepard

him or her on what class they’re going to go teach, and they are responsible for preparing and delivering their lessons,” Nelson remarks.

Instructors are also encouraged to share what they’ve learned throughout their career with the burgeoning leaders. “The curriculum sets up a nice framework, but the expertise and experience of the instructor is key. We strategize to see who are going to be the best instructors from the different companies based on the topic for that class, but the subject matter experts bring in their own experiences and challenges that they overcame. That makes the coursework more practically applicable,” Nichols explains.

For companies, the training is beneficial not only to the participant but also to the whole organization by preparing students for the rigors of a supervisory role.

“The benefit of a well-trained supervisor is going to be exponential added value, not just for the individuals themselves as they grow in their careers but also for every area of the company that they touch,” Nichols says. “We talk about it in terms of sharpening your ax. If you don’t, after a while your ax becomes dull from normal use, and your productivity starts to wane.”

The debut of the STP in Arizona comes at a time when construction labor at all experience levels is in short supply.

“Good superintendents in the field who can run a commercial job safely, on time and on budget are becoming a rare breed,” Dalton concludes. “The trades have not been as popular of a choice for younger kids, but I think people are realizing that there are good careers in construction.”

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BUILDERS ROUNDTABLE

B

y any measure, 2020 was a year like no other for the construction business. Heading into January, the state boasted one of the healthiest construction industries in the U.S., and Phoenix topped the list of the country’s fastest growing cities. Then, the pandemic hit.

Thanks to the hard work of organizations such as the Arizona Builders Alliance (ABA), construction was quickly declared essential, allowing contractors to return to job sites.

Despite a downturn for businesses in the hospitality, restaurant and retail fields, construction continued to boom, expanding by 15% over 2019. In fact, many builders and trade partners report that 2020 was their most profitable year in history, and there’s no slowdown in sight, despite a new crop of challenges that are popping up.

AZRE Magazine spoke with six construction industry leaders from across the state to find out how they fared over the past 16 months — and how they’re facing the future.

62 July-August 2021

AZRE: Did the pandemic affect how your company does business?

Mike Loven, president, Loven Contracting: This was an unprecedented event, with no playbook. We were fortunate that the industry was deemed essential, but this required construction firms to be at the forefront of pandemicrelated decision making. The first 30 days came down to being leaders relative to policies and procedures.

John Nyman, shareholder/director of estimating, Concord General Contracting: It was definitely a different year. Being classified as an essential business allowed us to complete projects, and because many clients knew they weren’t going to be opening back up in the fall, we were able to get more jobs done, without having to work around other people’s schedules.

Barry Chasse, president and owner, Chasse Building Team: We were fortunate that our project teams were resilient and adapted quickly to ensure that job sites and everyone working on them remained safe and healthy. They

began meeting outside of the job site trailer for their “morning huddles” to collaborate on safety and workflow and to strategize on where each trade partner would work throughout the project to safely distance from one another.

Rudy Garcia Jr., vice president, RG & Sons Plumbing: Our difficulties came in the early days of the pandemic, and I think it was just because there was no road map to navigate the new and scary circumstances. When you’re a leader of a business, people look to you if there are problems, so it was somewhat of a humbling experience to come into the pandemic and not have answers or solutions. But I’m proud of the way our company, and the industry as a whole, implemented safety protocols.

AZRE: How did the ABA help your business navigate these times?

BC: The ABA’s help started years prior to the pandemic by providing our teammates with a wide variety of resources that allowed them to be extremely prepared to navigate

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Barry Chasse

Rudy Garcia Jr.

any challenging market. Since the pandemic, the ABA has offered additional assets and webinars that specifically addressed COVID-19, labor shortages and escalating costs.

Additionally, we’ve been able to collaborate and work closely with the organization’s network of fellow members. The impact the ABA has had on our industry throughout the past year has been instrumental.

RG: I was actually the ABA’s chairman for Southern Arizona during the pandemic. Because we couldn’t meet in person anymore, we quickly moved to virtual advisory board meetings, and we leaned on our committee chairs to provide their expertise. For example, technology had changed rapidly for a lot of businesses, and many companies didn’t really know how to tackle some of the challenges.

Leveraging the expertise of our IT committee chair became an essential part of being able to move forward.

One the state level, our leadership jumped into action and began working with the governor’s office to make sure they understood why construction needed to be an essential business.

Plus, the ABA is communal in general.

We were all in similar positions, and none of us really had any answers.

So we were able to share ideas and strategic planning. I couldn’t imagine going through this pandemic without the ABA and its members.

AZRE: There is a shortage of skilled labor in Arizona. How is your company addressing that need?

BC: Our company — and the entire industry — is certainly facing a challenge with the shortage of labor, specifically within the trade partners.

The biggest challenge is attracting young people to the trades. To help 64 July-August 2021

Gretchen Kinsella

Mike Loven

mitigate future labor shortages, our team supports a variety of trade programs and organizations. We have worked closely with many K-12 school districts to host STEM programs, construction seminars, career fairs and the overall education of students who are inspired by construction, technology and engineering.

ML: The construction industry went from being “under the weather” to manifesting a serious and chronic disease. We began discussing labor shortages more than a decade ago, and the same conversation continues today without concrete nationwide solutions — hence, the current crisis. As an aside, college programs focus more on management than on “starting at the beginning.” We find that the most versatile individuals are often those with nuts-and-bolts experience that is then bolstered by a formal education.

Gretchen Kinsella, Arizona business unit leader, DPR: Every construction company is experiencing a heightened awareness around labor. It’s been an ongoing issue with the aging workforce and lack of young people joining the trades. Where we’re focused right now is actively supporting a number of workforce development programs to ensure the next generation is brought into the trades. Of course, we have to be cognizant of the immediate impacts, but we’re using prefabrication as a way to continue to flatten and control the manpower curves.

RG: One thing I noticed during the pandemic was people crossing over from other industries and wanting to get into the trades. They came to us with, for the most part, no construction skills, but they had great attitudes.

Even so, labor is a huge issue. Our company has about 50 field employees, but we could use at least 12 more.

John Nyman

R.J. Radobenko

To encourage future professionals, we work with the Pima JTED Career and Technical Education District.

The program educates high school students, as well as their parents, about the construction industry and lets them know that there’s a real career path for them.

AZRE: Materials shortages and spiking prices are also affecting the industry. Has that been a problem for your company?

JN: Materials shortages are real. We’re looking at extremely long lead times.

For example, steel joists are 26 weeks out. So it’s taking a little more creativity to get materials. We’re doing a lot of phased guaranteed maximum price contracts. As for prices, to prepare your clients for sticker shock, you have to explain to them upfront that this is the market we’re in. So far, we’ve been very fortunate to have owners who are aware of what’s going on.

ML: We’re doing our best to avoid a weekly apology tour through honest and transparent collaboration with our owner/partners. In these times, there’s no such thing as too much communication. At the same time, owner/partners may need to reevaluate their schedule expectations, liquidated damages and contract language to ensure a competitive field for their projects.

RG: We’re seeing a huge escalation of commodity pricing. Last year, PVC was 55% cheaper, and copper was 63% cheaper than it is now. So that type of increase is really difficult to head off, especially in commercial construction when a lot of projects are bid a year or more out.

R.J. Radobenko, president, Roofing Southwest: Steel started becoming scarce in the fourth quarter of last

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ABA year, and a manufacturing plant in China that was a huge supplier of raw materials burned down. So we knew there were issues, and I think most contractors planned accordingly throughout the winter months.

Unfortunately, beginning in March or April, the whole bottom fell out of the roofing industry. Contractors, including us, have run out of everything — metal fasteners; metal plates; insulation; isocyanate, which is spray foam. To make things worse, the price of metal has skyrocketed or it’s just not available.

I wish I could pay more money to get materials, but they’re pretty much nonexistent right now.

GK: I think things go in cycles. A few years ago, at the height of the last big building boom, many of the markets had trouble procuring glass, so it’s not the first time our industry has been faced with materials shortages and challenges. It just takes being really collaborative and transparent with our clients about the pricing and the available of materials.

AZRE: How is technology changing the construction industry?

BC: Of all the technology — drones, virtual reality tools or simply using personal tablets and TVs to navigate construction documents — we’ve seen the greatest impact from the implementation of building information modeling (BIM). During the design phase, our teams collaborate with architects using only BIM models of the drawings. This ensures that everyone is working off the latest and greatest set of plans, which then allows our estimating team to create a ‘living’ cost estimate that is always real-time.

During construction, we utilize BIM to create 3D models of the design to help identify clash detections, which sometimes come with cost and/or schedule impacts. Post-construction, our teams can provide BIM as-built drawings for the clients to easily navigate in the future.

GK: I remember, early in my career, when I first heard about BIM. It’s amazing to see how far we’ve come.

We just talked to a client about saving costs by spending a minimal amount of dollars to demolish and area that they want to build on next year, and 66 July-August 2021

then scanning the site so they can actually have a smarter design for the space and know exactly where all the components will be before they even think about planning. We’re really trying to think forward with our clients about the best ways to use virtual design and construction for them, not just for creating the brand new, big, shiny buildings but also for cost-effective solutions.

RJR: I’m really trying to push technology into an industry that’s not very tech savvy. Aerial drones have been amazing for us. They allow us to

Every construction company is experiencing a heightened awareness around labor. It’s been an ongoing issue with the aging workforce and lack of young people joining the trades. – Gretchen Kinsella monitor the work zone for safety, assess job sites, scan areas for stockpiles and evaluate construction completion.

We can now survey a 30-building apartment complex in 30 minutes versus eight hours, so it’s a big deal.

AZRE: Arizona is experiencing an unprecedented surge in development.

How is your company handling this increase in demand?

ML: It was only a year ago at the outset of the pandemic that our outlook on the world was much different. We are now, more than ever, exercising care in project selection, focusing on serving our existing client base and not allowing our team to be overly distracted by the demand. We will only take on additional work that can be properly executed to the satisfaction of the client.

BC: We are fortunate to have continued to successfully grow in this market. Having the best project team in place to navigate the increase in demand

is the first priority, however, we are always closely managing the amount of work with the available resources. It’s a balance of managing resources with the market demand to ensure that all projects are successful for our clients.

RG: Sadly, we’re in a position where we’ve had to turn down certain projects. What we’re really focusing on are the clients and contractors who hung in there with us during the Great Recession. We need to be here for them now. I’d love to be able to take on more work, but the labor just isn’t there.

I’ve witnessed other companies make that leap without understanding their capacity to do the work, and that’s not good for the clients, your employees or the company.

AZRE: Do you think the state can sustain this rate of development?

RG: I think we have some challenges with our local leadership in Tucson, but as long as they can get on board and understand that the growth of this community is a good thing for everyone, then I see our city continuing to grow. Of course, the caveat is that we have to watch the price increases related to construction. If prices reach a point where they’re no longer attractive to developers and homeowners, then that could be a silver bullet.

ML: I think the elephant in the room is water supply. Until a cogent statewide, regional and western U.S. plan, based on realistic forecasts, is implemented, the potential for a day of reckoning looms.

RJR: There are always concerns about water, but we’re in the desert, so it’s something we have to look at. But I think the growth will increase. Phoenix has one of the best infrastructures in the country. Our freeway system is incredible. And GPEC is doing a fantastic job of bringing some of the biggest companies in the world to Phoenix, which is exciting.

BC: The overall big picture is that we have a very desirable city — and state — to live in. We can see this from the massive influx of people moving here that is driven by a diverse economy, great career opportunities, the cost of living, wonderful communities and amazing weather. It’s hard to beat everything Arizona has to offer.

LEADING THE WAY TO THE FUTURE Steve Grauer

Vice President, Hensel Phelps ABA Board Chair

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ABA Member Projects

T

he Arizona Builders Alliance members continued to break ground and cut ribbons throughout 2020 and into 2021, despite the challenges of the pandemic.

Here are just a few of the more noteworthy projects that ABA members worked on in the past year.

Banyan North Tempe Developer: Milhaus and Banyan Residential General Contractor: McShane Construction Company Architect: Todd & Associates Location: 1225 E. Curry Road, Tempe Size: 389,847 SF Start/Completion: April 2021/April 2023 Subcontractors: PinderNation Electric, CHS Plumbing, GD and Sons Construction, Sun Valley Masonry Project Description: Banyan North Tempe is a new apartment community offering 310 units across three four-story garden-style buildings. The site will incorporate 8,000 square feet of amenity space, including a fitness center, a DaVinci fireplace, outdoor

68 July-August 2021

pool and spa, and a dog park overlooking downtown Tempe.

John S. McCain III Elementary School Developer: Buckeye Elementary School District General Contractor: Chasse Building Team Architect: Orcutt|Winslow Location: 3170 S. 247th Ave., Buckeye Size: 95,000 SF Value: $28 million Start/Completion: October 2020/August 2021 Subcontractors: Southwest Earthwork, Cactus Pipeline, DTR Landscape Development, Sun Valley, Sportsmans Concrete, S&H Steel, Global Roofing, JoNic

Glass, Pete King Construction, Wholesale Floors, Trimark, A Professional Commercial Plumbing, A1 Fire Sprinklers, Urban Energy Solutions, CAMS Project Description: The conceptual design theme of the project, Taking Flight, is derived from the life of its namesake, the late Senator John McCain, who served as a jet fighter pilot. John S. McCain III Elementary will feature more than 20 classrooms, in addition to a gymnasium, food court, flex areas and a music room, which are anchored by multiple learning and reading commons spaces, including the Sky Bridge, outdoor play areas and an amphitheater.

Arizona State University Multi-Purpose Arena Developer: Mortenson General Contractor: Mortenson Architect: SCI Architects Location: 411 S. Packard Drive, Tempe Size: 185,000 SF Value: $113 million Start/Completion: December 2020/Q4 2022 Subcontractors: Fleming West, University Mechanical & Engineering Contractors, Wilson Electric, Coreslab Structures, Performance Contracting Inc. Project Description: The 185,000-squarefoot multipurpose arena will serve as the future home of Sun Devil men’s ice hockey, wrestling and women’s gymnastics. The 5,000-seat arena features luxury suits, a 942-seat student section and a community ice rink.

The Manor Scottsdale Developer: The Related Group General Contractor: McShane Construction Company Architect: Humphreys & Partners Location: 13220 N. Scottsdale Road, Scottsdale Size: 597,847 SF Start/Completion: January 2021/December 2022 Subcontractors: RAPI, Coreslab Structures, Sun Valley Concrete, PinderNation Electric, Re-Create Masonry, Quality Mechanical, Progressive Roofing Project Description: The new multifamily development incorporates 286 units, with 19 units featuring mountain views. Tenants have access to a multitude of amenities, including a poker room, arcade, fitness center, pool, salt sauna, lounge and a grotto room.

NOVEL Midtown Phoenix Developer: Crescent Communities General Contractor: Chasse Building Team Architect: Davis Partnership Architects Location: 400 E. Earll Drive, Phoenix Size: 543,476 SF Value: $58 million Start/Completion: June 2019/May 2021 Subcontractors: Coreslab Structures, Hardrock Concrete, Huff & Sons Masonry, Re-Create, BCK Drywall, REEis Mechanical, JFN Plumbing, Delta Electric, Central Valley Specialties, Stehl Corporation, SPG Stucco, SW Roofing Project Description: NOVEL Midtown Phoenix is a five-story building comprising 345 onebedroom, two-bedroom and studio units. The building merges midcentury modern architecture with a location that provides residents with convenient transit access to Midtown Phoenix.

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ABA Arizona State University Downtown Phoenix Residence Hall and Entrepreneurial Center Developer: Capstone Development Partners General Contractor: DPR Construction Architect: Studio Ma Location: 372-390 N. 1st Ave., Phoenix Size: 284,00 SF Value: $66,888,000 Start/Completion: December 2019/July 2021 Subcontractors: Sun Valley Masonry, RKS Plumbing & Mechanical, Suntec Concrete, Kearney Electric Project Description: The first three floors will provide 75,000 square feet of academic space to include design studios, classroom space, fashion studios, fabrication labs, ensemble rooms, music recording studios and spaces for live events. The 207,000-square-foot residential component will consist of 13 floors and house about 530 students.

Pima County Historic Courthouse Renovation Developer: Pima County General Contractor: Lloyd Construction Company Architect: Poster Mirto McDonald Location: 115 N. Church Ave., Tucson Size: 87,000 SF Value: $9.5 million Start/Completion: April 2019/April 2021 Subcontractors: Commonwealth Electric Company, Millwork By Design, Qualified Mechanical, Architectural Openings, Casas Custom Floor Care Project Description: The project involved the historic restoration and adaptive reuse of a nearly 100-year-old iconic building into spaces for the Southern Arizona Heritage & Visitor Center, local tourism advocate Visit Tucson, the University of Arizona’s Alfie Norville Gem and Mineral Museum, and entrance to the January 8th Memorial.

Aviation Performance Solutions Hangar, Phoenix-Mesa Gateway Airport Developer: Aviation Performance Solutions General Contractor: Caliente Construction Architect: Dekker Perich Sabatini Location: 5649 S. Avery Circle, Mesa Size: 24,000 SF Value: $10.1 million Start/Completion: February 2020/March 2021 Subcontractors: LR Cowan, Image Building Systems, RnR Steel, Complete Fire, Audon Electric, Red Hawk Solutions Project Description: The facility has a modern aesthetic, with sweeping curves and abundant natural light. It includes corporate offices, a lounge with a viewing deck, and training space on the lower level. The 14,000-square-foot hangar includes a flight simulator that is used to provide upset prevention and recovery training for pilots.

The second building includes 4,000 square feet of office space and a 35,000-square foot hangar with room to house multiple G650 aircraft.

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Golden Leaf Dispensary and Grow Warehouse Developer: Golden Leaf Wellness General Contractor: Haydon Building Corp Architect: Cawley Architects Location: 5370 W. Ina Road, Marana Size: 121,000 SF Value: $32 million Start/Completion: Q3 2021/Q3 2022 Subcontractors: GRS Landscape Architects, Earthscapes, Harvey Land Surveying, Hawkins Design Group, JMC Engineering, Mechanical Designs, Tucson Electric Power Project Description: This project includes a 15,000-square-foot retail cannabis dispensary. There is also a 106,000-square-foot state-of-theart growing and processing facility, including R&D labs, developmental grow areas and 20 self-contained clean growing rooms with extensive ventilation and temperature/humidity control.

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ABA Pyramid Peak Water Treatment Plant Expansion/Improvements General Contractor: McCarthy Building Companies Architect/Engineer: Black & Veatch Location: 28101 N. 63rd Ave., Phoenix Size: 24.21 acres Value: $60 million Start/Completion: July 2019/July 2021 Subcontractors: Sturgeon Electric, Harris Rebar, Pennington Painting Company

Project Description: The treatment plant is located in Phoenix but is owned and operated by the City of Glendale and the City of Peoria.

The expansion project includes two new sludge lagoons, one new Backwash Recovery Basin, a new process Train 4 with five filter basins and four sedimentation basins, and an extension to the administration building.

Improvements include upgrades to the entire chemical system with new chemical pumps, piping and tanks.

Union at Riverview Developer: Lincoln Property Company General Contractor: Wespac Construction Architect: DAVIS Location: 2046 W. Riverview Auto Drive, Mesa Size: 245,014 SF Value: $39 million Start/Completion: October 2019/June 2021 Subcontractors: Coreslab Structures, Ryan Mechanical, Saguaro Steel, Suntec Concrete, Jenco Electric Project Description: This four-story Class A office features a modern glass exterior, large office floor plates with high ceilings, outdoor balconies and 10-foot vision glass that allows for sweeping views of the surrounding city and mountains. Once complete, it will include an array of modern amenities as well as private and open office space. The project is surrounded by 1.2 million square feet of retail, restaurants and hotels.

PHX Sky Train Stage 2 — Phoenix Sky Harbor International Airport Developer: City of Phoenix General Contractor: Hensel Phelps Architect: Gannett Fleming Location: 3420 E. Sky Harbor Blvd., Phoenix Size: 426,480 SF Value: $319 million Start/Completion: January 2017/December 2020 Project Description: The Phoenix Sky Harbor International Airport Sky Train Stage 2 connects the PHX Sky Train to a new West Ground Transportation Center and the Rental Car Center with new stations at each location.

The project consists of 2 miles of elevated, on-grade and underground guideway system connecting Terminal 3 to the rental car center.

72 July-August 2021

Blackwater Community School – Akimel O’Otham Pee Posh Charter Inc. General Contractor: Gilbane in association with RyTan Architect: Breckenridge Group with bridging documents by ADM Group Location: 3655 E. Blackwater School Road, Coolidge Size: 272,087 SF Value: $25 million Start/Completion: August 2019/September 2021 Subcontractors: Tempe Mechanical, Sun Valley, Encore Steel, Progressive Roofing, Rosendin Electric Project Description: Originally built in 1939, Blackwater Community School sits on the Gila River Indian community. The new campus serves as the hub of the community and includes the installation of underground storm water tanks, a two-story classroom building, cafeteria, facility maintenance building, parking lot, center courtyard, playground and administration building.

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ABA NOVEL Val Vista Square Developer: Crescent Communities General Contractor: McShane Construction Company Architect: Craine Architecture Location: 3224 S. Market St., Gilbert Size: 337,089 SF Start/Completion: January 2021/November 2022 Subcontractors: PinderNation Electric, CHS Plumbing, Qualified Mechanical, GD and Sons Construction, Sun Valley Masonry Project Description: NOVEL Val Vista Square will offer 317 units. The development will feature wood frame construction with three garden-style buildings and three carriage house buildings.

Tenants will also be able to enjoy 11,500 square feet of amenity space, including a dog park, swimming pool, cold plunge spa, outdoor kitchen with a pizza oven, outdoor fireplaces and fire pits.

Project Hustle Developer: Seefried Industrial Properties General Contractor: Willmeng Construction Architect: Ware Malcomb Location: Indian School Road and Cotton Lane, Goodyear Size: 636,000 SF Start/Completion: July 2020/July 2021 Subcontractors: Goodwin & Marshall, Suntec Concrete, Kraemer Consulting Engineers, PK Associates Structural Engineering Project Description: A state-of-the-art sorting facility for a global retail company, Project Hustle will consist of 596,805 square feet of warehouse space and 35,624 square feet of office space on a 91-acre site. Everything about this project is outsized: 115,000-plus square yards of truck drives and parking; asphalt parking for 1,456 cars; and 151 tilt-up panels erected in seven weeks.

Tolleson 107 Logistics Center Developer: Trammell Crow Arizona Development Inc. General Contractor: Wespac Construction Architect: Butler Design Group Location: 10601 W. Van Buren St., Tolleson Size: 332,160 SF Value: $16,204,177 Start/Completion: May 2021/January 2022 Subcontractors: DP Electric, Ryan Mechanical, Integrated Masonry Project Description: Situated on 25 acres, this large-scale Class A industrial project will bring 332,106 square feet of logistics space and 4.6 acres of retail to the Valley. The facility will feature 36-foot clear height, concrete truck courts, four points of access, 52-by-52foot column spacing with 60-foot speed bays, 266 car parking stalls, 54 trailer parking stalls and an ESFR sprinkler system.

Cowden Logistics Center Developer: Tramell Crow Company General Contractor: Wespac Construction Architect: Butler Design Group Location: 500 South 104th Ave., Tolleson Size: 285,131 SF Value: $11,592,770 Start/Completion: September 2020/ June 2021 Subcontractors: Nash Mechanical, Wilson Electric, Stone Cold Masonry Project Description: This industrial project will bring 285,131 square feet of logistics space to Phoenix’s Southwest Valley submarket. The facility will feature 36-foot clear heights, 237 car parking stalls, 41 trailer parking stalls, five points of ingress and egress, R-38 insulation and an ESFR sprinkler system.

Nationwide Insurance Headquarters Developer: Nationwide Realty Investors General Contractor: Layton Construction Architect: The Columbus Architectural Studio Location: 18700 N. Hayden Road, Scottsdale Size: 465,435 SF Start/Completion: Q3 2019/Q2 2021 Subcontractors: DP Electric, Coreslab Structures, Suntec Concrete, HACI Mechanical 74 July-August 2021

Contractors, Aero Automatic Sprinkler Co., RKS Plumbing, Pete King Construction, Walters & Wolf, Arizona Glass Specialists, Western Building Group, AAA Landscape, Tuscano Building & Stone, Western Millwork, KONE Elevators & Escalators Project Description: The new Nationwide headquarters is a ground-up project. Level one houses a kitchen/dining room, gym, event space, security office and more. Levels two-five provide workspace and conference rooms.

The project also includes a large five-story parking garage.

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ABA Banner Desert Medical Center — Women’s Tower Expansion Developer: Banner Health General Contractor: DPR Construction Architect: Cuningham Group Architecture Location: 1400 S. Dobson Road, Mesa Size: 280,000 SF Value: $96 million Start/Completion: January 2021/May 2023 Subcontractors: PK Associates, Sideplate, AEI, Amfab, Nexus Steel, Bel-Aire Mechanical, Cannon & Wendt Project Description: The expansion consists of a total of 170,000 square feet of new construction, including 168 additional licensed beds, patient rooms, labor and delivery rooms, OB triage,

C-section operating rooms and post-partum/antepartum patient care areas. It will also bring 20,000 square feet of tenant improvements to a third-floor shell space of the Cardon Children’s Medical Center, which includes a relocation of the “Sophie’s Place” and “Forever Young Zone” to the first and third floor lobbies.

Tolleson City Hall Developer: City of Tolleson General Contractor: Haydon Building Corp.

Architect: SmithGroup Location: 8803 W. Van Buren St., Tolleson Size: 46,000 SF Value: $22 million Start/Completion: May 2021/June 2022 Project Description: This new campus will include a two-level tilt-up concrete building with a curtain wall/masonry/metal panel building enveloped system. The interior features offices, council chambers, a community resource center, senior center, library, museum, space for public meetings, kiosks and an incubator for small retail, and conference rooms with media-ready capabilities.

Yavapai Regional Medical Center Outpatient Services Building Developer: Yavapai Regional Medical Center General Contractor: McCarthy Building Companies Architect: Cuningham Group Location: 1003 Willow Creek Road, Prescott Size: 97,000 SF Value: $53.5 million Start/Completion: June 2020/October 2021 Subcontractors: Pete King Construction, Progressive Roofing, McCarthy Mechanical, McCarthy Electrical, Creative Design, DH Pace, Foothills Fire, SGSI, Sun Valley Masonry Project Description: The building will serve as an outpatient treatment center and community center. The project combines services into a singular facility as opposed to several small leases around the surrounding neighborhood and includes high-end common areas, exam rooms, imaging suites and rehabilitation spaces.

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Akimel Gateway Developer: Trammell Crow Company General Contractor: Wespac Construction Architect: Butler Design Group Location: 17500 S. 40th St., Chandler Size: 835,000 SF Value: $50 million Start/Completion: January 2021/December 2021 Subcontractors: ABCO West Electrical, Desert Structures, Gunsight Earthwork, JJ Sprague Off-Site Utilities, McCain Construction On-Site Utilities, Ryan Mechanical, Saguaro Steel, Stone Cold Masonry, Suntec Concrete Project Description: Located in a growing Phoenix industrial submarket that is becoming a hub for logistics users, this project sits on 59 acres and will comprise five buildings that will feature a combination of ramp-up and dock-high loading with clear heights ranging from 24 feet to 36 feet. The project also includes more than 1 mile of offsite wet utility work and a new traffic signal.

Lincoln Ventures Moontower Developer: Lincoln Ventures General Contractor: JE Dunn Construction Architect: Shepley Bulfinch Location: 807 N. 3rd St., 811 N. 3rd St., Phoenix Size: 474,000 SF Value: $82,500,000 Start/Completion: June 2021/ May 2023 Project Description: The 24-level tower will consist of 16 floors of residential housing and seven levels of parking with an amenity area on Level 9 and pool deck on Level 24. The lobby area will include a coffee shop.

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ABA Callia Apartments Developer: Toll Brothers Apartment Living General Contractor: Wespac Residential Architect: Biltform Architecture Group Location: 4100 N. Central Ave., Phoenix Size: 350,552 SF Value: $70 million Start/Completion: January 2021/Q2 2023 Project Description: Callia will be a 403-unit, four-story building with one-, two- and threebedroom luxurious rental apartments. Amenities will include entertainment and gaming areas, yoga/cycling studios, resort style pools, fire pit and barbecues, a pet spa and an off-leash dog area. With easy access to uptown, downtown, Tempe and Central Phoenix, this community will also be within walking distance of many retail stores, upscale restaurants, office spaces and the light rail.

Sagewood Phase 2 ILU Developer: Life Care Services General Contractor: The Weitz Company Architect: Todd & Associates Location: 4555 E. Mayo Blvd., Phoenix Size: 280,000 SF Value: $64 million Start/Completion: February 2019/January 2021 Subcontractors: 3G Trim, Aero Automatick Sprinkler, AME Electrical, Colt Builders, HACI Mechanical, JBS Plumbing, Stone Cold Masonry, Rouser Concrete Project Description: Sagewood’s 220,000-square-foot, 3.5-acre Phase II features both one- and two-bedroom apartment homes, an 18-hole championship golf putting course, new and/or expanded dining facilities, additional card rooms and new administrative offices.

Thirteen apartment floor plans, ranging from 873 square feet to 2,351 square feet, will be offered, all with patios or balconies.

Town of Gilbert Public Safety Training Facility Developer: Town of Gilbert General Contractor: CORE Construction Architect: HDA Architects Location: 459 N. Gilbert Road, Gilbert Size: 150,000 SF Value: $64,289,000 Start/Completion: May 2019/January 2021 Subcontractors: Suntec, Sun Valley Masonry, Progressive Roofing, Pueblo Mechanical, RKS Plumbing, Action Target Project Description: An 18-acre village-style tactical training campus for police and fire features an amphitheater, locker rooms, administrative offices, classrooms, a three-bay mock fire station and several burn buildings, and indoor shooting ranges with traditional lanes and a custom streetscape. The adjacent 36-acre tactical drive training area consists of a driving course, evasive maneuver course and driving skills pad.

Pinal County Complex Developer: Pinal County General Contractor: A.R. Mays Construction Architect: Arrington Watkins Architects Location 31500 N. Schnepf Road, San Tan Valley Size: 47,000 SF Value: $15 million Start/Completion: March 2020/May 2021 Project Description: The Pinal County Complex project included the construction of two ground-up buildings. The 29,267-square-foot North Building includes public records office; police department; offices for patrol, sergeants and detectives; holding cells; interview rooms; judicial offices; multipurpose and conference rooms; treasurer’s office; and miscellaneous county offices. The 17,771-square-foot South Building includes a new library; probation offices with separate child, juvenile, teen and adult victim advocacy areas; and forensic offices.

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