AZRE July/August 2020

JULY-AUGUST 2020

2020

IN COMMERCIAL REAL ESTATE

INSIDE:

East Valley Update p. 42 | Arizona Builders Alliance p. 49

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Architect: Cawley Architects | Designer: Douglas Cardinal Architect

Right place, right time

F

or most of 2020, the news has been mostly, well, awful.

First it was the pandemic, then the resulting economic tumble, with unemployment rates rising and businesses struggling to stay afloat. Throw in some major, national societal shifts, and you've got a recipe for unrest.

Here in Arizona, our turn as the epicenter of the COVID-19 pandemic was later in the game, but we definitely are feeling the effects, even as 2020 enters the third quarter.

But, if ever there was a market that was perfectly suited to recover from our current situation, it’s Arizona.

The business environment, especially in the commercial real estate industry, is as healthy and collaborative as any other market in the country. Developers are still launching projects, general contractors are still building and brokers are still buying, selling and leasing. There is a sense that we’re all in this together, so it makes good business sense to work together to power through this difficult time.

In this edition of AZRE Magazine, we highlight two groups of people who are taking the lead to help our market into the future. The first group are the Most Influential Women in Commercial Real Estate that you saw on the cover. These business leaders are some of the top minds in the CRE industry and will be at the front of the line, helping the Greater Phoenix market pull the state economy forward.

Some of those women are also part of the second group highlighted in this edition, the Arizona Builders Alliance.

The construction industry was deemed an essential service during the pandemic, and looking around at all of the work members of the ABA are doing in the Valley, it’s clear that it is a critical industry for the state right now.

President and CEO: Michael Atkinson Publisher: Amy Lindsey Vice president of operations: Audrey Webb EDITORIAL Editor in chief: Michael Gossie Associate editors: Steve Burks | Alyssa Tufts Contributing writers: Tom Dunn | Carrie Kelly Suzanne Kinney | Courtney LeVinus | Dennis Tsonsis ART Art director: Mike Mertes Design director: Bruce Andersen MARKETING/EVENTS Marketing & events manager: Aseret Arroyo Digital strategy manager: Gloria Del Grosso Marketing designer: Heather Barnhill OFFICE Special projects manager: Sara Fregapane Executive assistant: Brandi Collins Database solutions manager: Amanda Bruno AZRE | ARIZONA COMMERCIAL REAL ESTATE Director of sales: Ann McSherry AZ BUSINESS MAGAZINE Senior account manager: David Harken Account managers: April Rice | Sharon Swanson AZ BUSINESS ANGELS AZ BUSINESS LEADERS Director of sales: Sheri Brown EXPERIENCE ARIZONA | PLAY BALL

Steve Burks Associate editor, AZRE steve.burks@azbigmedia.com

RANKING ARIZONA Director of sales: Sheri King

AZRE: Arizona Commercial Real Estate is published bi-monthly by AZ BIG Media, 3101 N. Central Ave., Suite 1070, Phoenix, Arizona 85012, (602)277-6045. The publisher accepts no responsibility for unsolicited manuscripts, photographs or artwork. Submissions will not be returned unless accompanied by a SASE. Single copy price $3.95. Bulk rates available. ©2020 by AZ BIG Media. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without permission in writing from AZ BIG Media.

2 | July-August 2020

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CONTENTS

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

20 Legislative Update

49

24 Battle of the Boxes

29 Most Influential Women 42 East Valley Update

49 Arizona Builders Alliance

14

42

On the cover:

See page 29 (Photo by Mike Mertes, AZ Big Media) 4 | July-August 2020

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

29

TRENDSETTERS Program boosts clean up efforts

IDEA Tempe

The U.S. Environmental Protection Agency (EPA) awarded $1.4 million to assess and clean up contaminated properties in the Greater Phoenix Metropolitan Area under the agency’s Brownfields Program. A brownfield is a property for which the site’s expansion, redevelopment or reuse may be complicated by potential hazardous substances. The land along the Salt River was historically used as a dumping ground which has led to significant development issues in Tempe and Phoenix.

Thanks to a $600,000 Brownfields Communitywide Assessment Coalition grant, the City of Phoenix will lead a collaborative effort with the cities of Avondale and Tempe, as well as Arizona State University, to assess the area bordering the Salt River Rio Salado, Agua Fria and Gila River for potential properties to be revitalized. This project will build on previous EPA Brownfields grants and take place within the Rio Reimagined Urban Waters project area located along the Salt River.

An $800,000 grant from EPA’s Brownfields Cleanup Revolving Loan Fund will fund work with local grassroots groups, developers and

government agencies in financing contaminated site cleanups.

There are still parcels along the Salt River in Tempe that require remediation, including some parcels on the IDEA Tempe campus.

IDEA Tempe is a phased development that focuses on bringing new biotechnology and technology companies to Tempe. The 18-acre, 1 million square foot project includes five commercial buildings with restaurant and retail space.

Retrofitting for the post-pandemic office

Wide open spaces

Equity 1000 LLC, a locally owned private equity firm focused on valueadd commercial real estate with a “green and clean” approach, is using lessons learned from the COVID-19 pandemic to guide its retrofit of the Northview Professional Plaza in Phoenix.

Equity 1000 is implementing a large scale energy efficiency retrofit project that creates an estimated 90 percent in electrical savings to the association and unit owners in the 47,000 square foot office complex.

Amid current market concerns, Equity 1000 is installing what they believe to be the best anti-virus air quality recirculation systems to lead the way in delivering both “green and clean” properties for businesses and property owners.

“Equity 1000 takes great pride in providing solutions to struggling properties lowering overhead costs and attracting new tenants and buyers,” said John Panfil, CEO of Equity 1000. “We also believe strongly that indoor air quality is going to give a post-pandemic market advantage to property owners and we have selected systems that combine the best available products from companies such as Honeywell and iWave to fight against viruses and potential airborne hazards.”

The energy retrofit selected by the property association includes LED lighting, high efficiency HVAC units, solar retrofit and new high energy rated insulation along with resealing the building and CapEx repairs for the roof and the electrical systems (including sub-metering). The capital cost for the project is just under one million dollars and was financed over 15 years with energy incentives, creating an anticipated positive cashflow between the monthly debt payments and reduction of existing electric bills.

6 | July-August 2020

If you need to get away into some open spaces, some cities make that much easier than others. Rent.com recently released data that revealed the cities in the United States with the most open space.

It’s no surprise that three Arizona cities made the Top 20 on this list, Peoria at No. 7, Surprise at No. 15 and Scottsdale at No. 17. Also no surprise was the city with the most open spaces, Anchorage, Alaska, which has just 171 people per square mile.

Contrast that with New York City, which has the least open space and has 27,012 people per square mile.

Here are the 20 U.S. cities with the lowest population density per square land mile.

Rank City

Population

Land Area*

Population Density**

1. Anchorage, AK

291,538

1,705

171

2. Norman, OK

123,471

179

621 648

3. Augusta, GA

196,939

302

4. Chesapeake, VA

242,634

341

652

5. Huntsville, AL

197,318

209

862

6. Columbus, GA

194,160

216

878

7. Peoria, AZ

172,259

174

883

8. Oklahoma City, OK

649,021

606

956

9. Columbia, SC

133,451

132

978

10. Athens, GA

125,964

116

992

11. Lexington, KY

323,780

284

1,043

12. Abilene, TX

122,999

107

1,096

13. Jacksonville, FL

903,889

747

1,100

14. Charleston, SC

136,208

109

1,102

15. Surprise, AZ

138,161

106

1,111

16. Kansas City, KS

152,958

124.8

1,168

17. Scottsdale, AZ

255,310

184

1,182

18. Chattanooga, TN

180,557

137

1,223

19. Nashville, TN

669,053

475

1,265

20. Las Cruces, NM

102,926

76

1,276

Phoenix Marketing pro launches CRE group Q1 report shows

Phoenix JLL

calm before storm

Given the health, policy, economic and financial disruption unfolding from the COVID-19 outbreak, resulting real estate market shifts will not be fully reflected in Q1 2020 statistical indicators. It is too early to provide a quantitative assessment or forecast of the ultimate market impact of COVID-19. Our analysis focuses on Q1 market activity and how the market is positioned moving forward. We will be continually monitoring market movements as the situation evolves. Please feel free to contact us if we can assist.

According to the JLL Office Insight report for Q1 of 2020, the

Phoenix

Metro from Phoenix officeoutbreak, marketresulting recorded continued growth in the ancial disruption unfolding the COVID-19 flected in Q1 2020 statistical indicators.

It isvacancy too early toonly provide a first quarter, with decreasing 10 basis points to ultimate market impact of COVID-19. Our analysis focuses on Q1 16.8Wepercent.

This marks the lowest tioned moving forward. will be continually monitoring market vacancy rate that Phoenix se feel free to contact us ifseen we cansince assist. the second quarter of 2008. Net absorption has

nds the first quarter with continued growth as my shiftswas tostrong uncertainty with nearly 744,000 square feet in demand lead by

inancial disruption unfolding from the COVID-19 outbreak, resulting reflected in Q1 2020 statistical indicators. It is too early to provide a he ultimate market impact of COVID-19. Our analysis focuses on Q1 ositioned moving forward. We will be continually monitoring market n projects top over 1 million square feet, with more ease feel free to contact us if we can assist.

Tempe (327,000 SF) and Chandler (165,000 SF) submarkets.

Forecast Uncertainty, however, puts marketFundamentals performance into question YTD net absorption 743,743 s.f. ▼ construction in the as firstconditions quarter of 2020. are rapidly changingUnder as the market deals with s.f. the▼ construction 1,037,723 es reached $28.28, a 4.2% increase from the first vacancy 16.8% ▲ effects of the COVID-19Total pandemic. d by Tempe ($34.12)lingering and Camelback Corridor ($37.38).

with continued growth as inty

r with continued growth as Fundamentals ainty th more fice market recorded continued growth in the first 743,743 s.f. ▼ YTD net absorption

tinues to drive demand as it accounted for 58 percent t absorption for the quarter.

Sublease vacancy Direct asking rent Sublease asking rent Forecast Concessions

814,755 s.f. $28.28 p.s.f. $25.03 p.s.f.

Rising

▲ ▼ ▼ ▲

JLL’S TOP PRODUCERS Net absorption (s.f.) 2019 acancy only decreasing 10 basis points to 16.8 percent.

Under construction 1,037,723 Supply s.f. ▼ and demandOF

evacancy first rate that Phoenix has seen since the second Fundamentals Forecast ▲ vacancy 16.8% 4,000,000 with more was strong Total bsorption with 744,000 square feet in or ($37.38).

YTD netnearly absorption 743,743 s.f. ▼ Sublease vacancy pe (327,000 s.f.) and Chandler (165,000 s.f.) submarkets.

Under construction 1,037,723814,755 s.f. ▼ s.f. ▲ 58 percent he first

Deliveries

Ryan Bartos 2,000,000 , puts market performance into question as conditions Pat Williams ▼ Direct asking rent $28.28 p.s.f.

Total vacancy 16.8% ▲ dor ($37.38).

Sublease vacancy s.f. ▲ p.s.f. ▼ Sublease asking rent 814,755$25.03 r 58 percent Mark Bauer Direct rent $28.28 Concessions oduct remains active withasking new inventory already in p.s.f. ▼Rising ▲0 2016 Andrew 2017 2018 2019 YTD he first Sublease asking rent Medley arter and set to deliver later this year.

The outer$25.03 core p.s.f. ▼ 2020 Supply and construction demand (s.f.)RisingNet ▲ absorption Concessions 6.8 percent. hoenix with 83 percent of the under the first Pat Harlan Deliveries he second and Chandler theand most activity.(s.f.)

Despite Netthe absorption Supply demand 16.8 percent. recording Total vacancy (%) 4,000,000 Deliveries shaped

by COVID-19, in Arizona, construction continues Steve Larsen quare feet in the second 30% e industry deemed an essential job during the square feethas in been 4,000,000 submarkets.

Anthony Lydon improvements will see a change moving forward as 25% )ant submarkets.

2,000,000 ofconditions Europe and specifically Italy, slow due to national 2,000,000 as conditions 20% Marc Hertzberg er closures.

15% Steve Sayre 0 0 ready 10% alreadyin in 2018 YTD 2019 YTD 2016 2016 2017 2017 2018 2019 x economy 2006 2008 2010 2012 2014 2016 2018 2020 John Bonnell outer core has shifted from housing and construction- 2020 uter core 2020 (Source:JLL)

e technology, finance and healthcare. As Arizona navigates ruction ction appeal to companies looking for lower costs and a state’s Despite the Despite ll remain.the Established Total coworking locations Average asking rent ($ p.s.f.) vacancy (%) in Phoenix tion continues Total vacancy (%) Direct velocity of traffic despite on continues 30% more companies issuing shortSublease job during the $30.00 ” mandates.

Tenants nearing the end of their leases may 30% ob during the ing forward as 25% lease terms instead of vacating their space. Companies $25.00 gomnational forward 25% the next few quarters as market leases (1-3as years) during 20% d.national Before the change in 20% the current climate, an additional 61 $20.00 15% oking for a collective 3.2 million square feet of office space $15.00 10% e to require office space post-COVID-19.

15% nstruction2006 2008 2010 2012 2014 2016 2018 2020 2006 2008 2010 2012 2014 2016 2018 2020 zona navigates 10% ct: Dan Zawisha | daniel.zawisha@am.jll.com wer costs and a struction2006 2008 2010 2012 2014 2016 2018 2020 rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof. nAll Phoenix Average asking rent ($ p.s.f.) na navigates Direct ssuing r costsshortand a Sublease $30.00 ir leases may Phoenix Average asking rent ($ p.s.f.) . Companies Direct $25.00 uing as shortarters market Sublease $30.00 an additional leases may 61 $20.00 of office space Companies

Creating avenues to connect is something that Melissa Swader is an expert at. The latest connection point that Swader, the director of marketing, PR and administration for SVN Desert Commercial Advisors, has created is a national Facebook group named Women in Commercial Real Estate.

Swader launched the group in January, but officially announced its presence in May. “The group is designed to welcome new listing posts, tenant and purchase requirements, industry acknowledgements, best practices and more importantly, just a way that everyone can learn from each other and celebrate each other’s successes,” said Swader.

A Phoenix native, Swader is a media and marketing figure named as one of the 2020 Influencers in Marketing by Globe St./Real Estate Forum magazine in New York. Though Melissa has been known for her press work and industry acknowledgements, she is also an avid small business advocate for both men and women. “I welcome all men and women to join the group. I just feel that there are so many women out there that need a platform specifically designed to help elevate their business and brand,” said Swader.

Swader was also a ‘Women in Business’ mentor last year and actively serves as a mentor to ASU business and journalism students. She feels that with the high demand for recruiting and embracing women in the commercial real estate industry, the Women in Commercial Real Estate group will be a national platform that will support and encourage the industry’s growth.

BUILDING A LEGACY $25.00 $15.00

ers as market 2006 2008 2010 2012 2014 2016 2018 2020 n additional 61 $20.00 office space es deemed reliable; however, no representation or warranty is made to the accuracy thereof. $15.00

2006 2008 2010 2012 2014 2016 2018 2020

deemed reliable; however, no representation or warranty is made to the accuracy thereof.

In a metropolitan area the size of Phoenix, there is a distinct lack in indoor sports facilities. For North Phoenix, Legacy Sports is hard at work trying to fill that facilities need.

The Legacy Sports Arena will be a completely air-conditioned, 171,400 square foot indoor facility with two NHL sized ice rinks, a new high-tech giant-sized glass floor with underneath LED lighting that accommodates basketball courts, volleyball courts, dodgeball, soccer, lacrosse and even a dozen pickleball courts. Also included is a large upstairs restaurant with special spectator seating, a gymnasium and numerous other amenities.

The facility will also have an adjoining sports hotel, totaling more than 58,000 square feet, when it opens in late 2020 or early 2021.

A.R. Mays Construction is building the facility, and it was designed by K & I Architects in Phoenix and M2 Architects, which specializes in indoor hockey facilities.

Legacy Sports Arena owners not only expect to attract participation from North Valley residents, but establish the area as a destination magnet for tournament play, sports camps, conventions, family vacations and special events.

7

TRENDSETTERS Sundt project honored Sundt Construction, Inc. and its joint venture partner Kiewit continue to earn awards for their work on the Ina Road Traffic Interchange. The two and a half year project was recently awarded the 2020 “Public Works Projects of the Year” by the Arizona Chapter of the American Public Works Association (APWA) in the category of Transportation: over $75 million and the 2019 Arizona Department of Transportation (ADOT) Partnering Award.

The construction manager at-risk project involved reconstruction of the interchange at Ina Road as a precast concrete bridge overpass to I-10. It also included several street improvements, channel construction, drainage, retaining walls, signals, lighting, and utility relocation. The improved infrastructure helps reduce delays and increases safety for the nearly 25,000 drivers who use the interchange every day.

The APWA Public Works Project of the Year Award celebrates excellence in the management, administration and implementation of public works projects. The ADOT Partnering Award recognizes partnership teams who demonstrate a high degree of achievement through partnering principles and partnering processes. To date, Sundt’s Transportation Group has won 11 partnering awards.

Sundt Construction, Inc. and Kiewit teamed up on the two-year, $75 million Ina Road Traffic Interchange in Tucson. (Provided photo)

Setting up shop S2A Modular, a California-based manufacturer of modular homes, plans to build a $25 million facility in the Phoenix area in 2021.

The sustainable building manufacturer that also produces modular apartments, hotels and other buildings is nearing a deal to acquire land needed for a plant, though it has not yet disclosed the specific location.

The factory is slated to include five buildings, ranging from manufacturing buildings encompassing two factory lines, as well as office and showroom space to showcase the firm’s product lines. The company produces small accessory dwelling units to luxury homes.

S2A Modular’s first two factories in California are slated to come online by Q4 2020. The company is planning other factories in markets such as Seattle, Denver, Dallas and Washington, D.C., and by 2023 the firm plans to have 35 locations nationwide. The facilities are capable of producing 2,000 units per year.

AHEAD OF THE GAME

With more and more focus being put on public health and wellbeing, building projects will likely adopt new approaches to creating vibrant, healthy environments. And as the world makes its way out of the COVID-19 crisis in the coming months, a focus on healthy workplaces will be more important than ever before. Plaza Companies has been ahead of the curve on this for a few years.

For example, at SkySong, The ASU Scottsdale Innovation Center, Plaza Companies has installed features throughout the property — including at the newest building, SkySong 5 — designed to create an improved environment for employees, including public art, walkability, a Zero Mass Water dispenser, outdoor meeting areas and other features.

Overall, more than a dozen features have been or are being installed in the future as part of the “Culture of Health and Innovation” approach.

At Estrella Medical Plaza II, completed last year on the Banner Estrella Medical Center campus, the project features include an extensive focus on sustainability, green building, gardens and walkability and local, interactive art. There’s even a Little Free Library on site and signage in both English and Spanish on walking paths to promote exercise and learning while creating a strong sense of wellness for visitors and tenants.

At Park Central, the project’s owners have installed extensive walking and biking features, indoor/outdoor work spaces, extensive 8 | July-August 2020

public art and many other features designed to encourage connectivity with the outdoors. Most of the office spaces at Park Central include roll-up doors to allow access to the outdoors.

“Companies and their employees are seeking more than just the traditional office space, they are seeking a place that makes them feel healthy while they conduct their business,” said Sharon Harper, President & CEO of Plaza Companies. “Now more than ever, they will be asking for features that create a better working environment and promote the health and well-being of their employees. We are working to make our projects the premier examples of this approach in the Valley of the Sun through our ‘Culture of Health and Innovation approach.”

Caliber opens up investment opportunities to wider audience In May, Scottsdale-based real estate investment firm Caliber rolled out plans to open investing in the company to the public. The initial offering quickly attracting more than $600,000 in new capital from investors. The company rolled out a new online portal for people to invest in the growing company.

Currently, the company is working on four major real estate projects, including a 96-bed behavioral health facility in Phoenix. The new investment option gives the public a chance to play a role in the company's growth. AZRE Magazine sat down with Caliber co-founder Chris Loeffler to ask him how this public offering will change the way the company moves forward.

AZRE: Will the public offering have any effect on the types of projects that Caliber will take on?

CL: Caliber is firmly committed to the middle-market — projects sized between $5 million to $50 million — in an area of real estate development we consider to be highly underserved. Our public offering allows Caliber to grow deeper into the market we have found success in, as well as to spread our business in a wider format to more of our targeted geographic region, namely AZ, CO, TX, NV, UT & ID. AZRE: What kind of influx of investors are you expecting during this public offering and do you have potential projects in mind?

CL: We expect to gain an additional 10,000 shareholders, of which we expect 15 percent of them to be accredited investors. Our main focus is investing in commercial and residential real estate we expect to benefit from emerging trends — such as light industrial properties,

No-contact property tours In the current commercial real estate climate, face-to-face or on-site property tours and inspections aren’t the best way to go about showing a property to a client. Even before the COVID-19 pandemic severely restricted how brokers did business, Videoms, a California company, was This screenshot from a Videom presentation for the CBRE-listed Camelwest Plaza in Phoenix, shows the property location in relation to other businesses and commerce areas.

specialty medical office, horizontal and vertical multi-family, mixed-use development, and potentially discounted hospitality and retail projects.

AZRE: What was the process like to get this public offering off and running?

CL: The offering process itself with the SEC and with our online platform was fairly smooth. The process of preparing the company to make the filing in the first place took many years and required an investment of thousands of hours of team effort and many millions of dollars. The preparation has made Caliber a better company, more effective, and more resilient. We have already seen the preparation we have done over the last five years yield results.

introducing a new approach to showing a property.

Videoms enables virtual tours and property inspections with no face-toface interaction. Using a combination of aerial and interior video, images and detailed graphic overlays, Videoms “packages” property tours and inspections, which can be sent anywhere in the world with a simple link.

Videoms remotely markets properties allowing for continued sales and lease transactions of commercial properties, during this time of mass economic shutdown.

“Our introduction to Videoms was when we created a marketing video for a new listing we took on in Scottsdale,” said Ryan Desmond, partner at Phoenix-based Western Retail Advisors. “The response was very positive as a way to bring the project to life when traditionally the marketing for a product like that would have consisted of a three or four page PDF document that you would email back and forth.

“We’ve also used them to target specific tenants for specific projects.”

Desmond said his company was using Videoms before the shutdown occurred. His company uses the product to show properties to out-of-state investors, saving both parties time and money on travel.

“I would say, going forward, there could be a broader use for it,” Desmond said. “I think its value is greatest on higher profile, more substantial listings.

The use and utility of these going forward will increase, not decrease because it allows you to tell a complete story of a property.”

9

EXECUTIVE PROFILE

Fundamental foundation Melinda Hinkson of Sigma Contracting on fostering clientele for continued success

By ALYSSA TUFTS

B

eing in the right place at the right time is often key when it comes to an opportunity, making the most of it and forging a path towards success. For Melinda Hinkson, cofounder of Sigma Contracting, the opportunity appeared suddenly.

Hinkson’s interest in real estate and construction was sparked by her husband Dan Hinkson, whom she met when she was 17 years old. Her husband worked in construction as a carpenter and Hinkson would drive to his job sites and observe everyone working together to create a project.

“I think through him I developed an interest in seeing things come together in that way,” Hinkson said.

Sigma Contracting was founded in 1983 and has since built a reputation backed by a diverse portfolio including education, financial, industrial, manufacturing, medical, multi-family, non profit, office and retail projects— over 80 percent of which are with repeat clients. The company offers pre-construction, project management, design-build, general contracting, sustainable building, tenant improvement and renovation services.

In the company’s early days, Hinkson played an integral role in administrative, research and business development, and today, while Hinkson still wears many hats with her responsibilities as owner, treasurer and Director of Business Development, she’s learned much over the years.

“In the early days, I think my major role was infrastructure and making sure we did things correctly legally

10 | July-August 2020

and financially and entity wise, I was more in a support role and then as the business grew I kind of stayed in the background involved in all the client events, the HR functions, anything that needed to be done in the background for business continuity and day-to-day business operations,” Hinkson said. “In the early days we were primarily doing municipal and school projects, and although a majority of our work is in Arizona, Nevada and Mexico, we are licensed in eight states.”

However, when one of their employees was injured in a car accident in 2007, Hinkson took over that employee’s responsibilities in business development. As it was her first time in a day-to-day front-facing operative role, Hinkson said her efforts to make connections and establish relationships through networking and involvement in real estate organizations is part of what helped Sigma Contracting remain in business in the 2008 recession.

“I think my strengths are being able to assess and research options both financially and business wise, forming connections and relationship building,” Hinkson said.

Hinkson is active in several industry organizations including AZCREW, NAIOP, CRENAB, Valley Partnership and CoreNet Global Arizona.

One of the projects she is prideful of is The Salvation Army Ray and Joan Kroc Corps Community Center in Phoenix which opened in 2012.

The $68 million, 128,000-squarefoot center hosts programs in arts,

education, recreation, wellness and spiritual guidance and has served over 42,000 people—60 percent of which are children.Both Hinkson and her husband Dan were heavily involved with The Salvation Army over the years completing various projects with the organization for more than 10 years and Dan was on The Salvation Army board for 20 years. Sigma Contracting partnered with Haydon Building Corp to build the center. “We’re very proud of that because of what the building is, how it came together and it was a

collaboration between architects out of Colorado, design and the owners and it turned out beautifully. It serves so many in the community and brings so much value to the community as well.” Hinkson also noted she is proud of many of the company’s long standing relationships including building 74 CVS Pharmacies with Armstrong Development.

She credits the company’s success largely to their employees, most of which have been with the company for an average of 20 years.

Hinkson said she hopes Sigma

Contracting can continue to evolve with the needs of the community and see the company grow in response to client needs.

“I think my biggest pleasure would be to see Sigma survive long past us,” Hinkson said. “I’d love to have an opportunity for someone younger in the business to partner with us as an established business to mentor then take over and run the company—that would be wonderful.”

Through the years, Hinkson and Dan have grown Sigma Contracting to develop million dollar projects while raising their

three children and now spend more time with their three grandchildren. “I have a great deal of respect for moms that are doing so much in the industry with younger children at home. I was fortunate in the time I was so actively involved that I didn’t have little kids at home, so it was easy to work more hours,” Hinkson said. “Personally, I would love to have more time with my grandkids. At this age and stage of my life we’re doing more travel and visiting our family, so I think I’m living the dream. I feel very blessed and fortunate.”

11

AFTER HOURS

Work the body, ease the mind CRE professionals find exercise therapeutic during pandemic

By STEVE BURKS

S

tress is something that commercial real estate professionals are used to; it’s part of the job. However, no one can deny that the events so far in 2020 have created stressful times like we’ve never seen before. With lockdowns, quarantines and a global pandemic part of our regular vocabulary, finding ways to lower stress levels has become vital to remaining positive and productive.

Like many folks, commercial real estate professionals look to exercise to maintain their physical well-being, but many have found that exercise has also helped their mental state during the first half of 2020.

“Once Governor Ducey announced the stay-at-home order, I started exercising more often than I usually do,” said Jennifer Davis Lunt, managing partner at Davis Enterprises.

“I have been riding my Peloton bike daily, running the canal early in the morning or in the evening so I can watch the sunset, and practicing yoga at home.

“I’ve always enjoyed exercising for the physical aspect, but lately I have been exercising for the mood-boosting effects of endorphins from riding the bike and running or the meditative aspects of yoga.”

Davis Lunt is not alone in realizing the value of physical exercise in these troubled times. Laurel Lewis, senior vice president at NAI Horizon, said she’s been a lifelong exerciser, but has found that if she didn’t find time to work out her body, her mind would

12 | July-August 2020

Jennifer Davis Lunt begin working overtime.

“I knew that if I didn’t get daily exercise I would experience all of the gremlins that my mind could deliver,” Lewis said. “Living in Phoenix with access to parks, trails, canals, bike paths, etc.; has been a blessing that few in the country have. I not only continued my daily exercise, but added to it. I did add as many weights as I could find to my garage gym and got crazy sweating it out, tunes blaring with the garage door open and the neighbors walking by and peering in.

The more I engaged my muscle, the quieter my mind got.”

Lewis said she was able to take walks in the morning with a friend while maintaining social distance, and then hop on her bike for a mountain trail ride or through green belts that run through her neighborhood. She said she also hiked, which helped to clear her head. Lewis also noticed an increase in families walking or riding together during the peak of the stay-athome orders.

“The beautiful thing is to see families walking, riding, playing with kids and/or dogs and ditching screen time or daily commutes and connecting with each other and the world,” Lewis said. “I think we will emerge better from this.”

Brothers Payson MacWilliam and Don MacWilliam, both vice presidents at Colliers International in Arizona, teamed up with Jim Harrison, president at Harrison Properties, to cycle four to six times a week. The trio

Jim Harrison

Laurel Lewis

Don MacWilliam

Payson MacWilliam

would vary their 90 to 120 minutes of riding, exploring various areas of the Valley. They cycled through Paradise Valley, Scottsdale and North Scottsdale. These outings enable the group to stay fit and keep their sanity during this pandemic.

According to Don MacWilliam, one positive part of the Coronavirus stayat-home orders came in the form of less traffic on the roads while they cycle.

They have been able to start rides an hour or two later in the morning since rush hour traffic disappeared.

Some companies actually helped their employees improve their wellness and fitness during the pandemic. For example, Colliers provided its staff with free Headspace membership for wellness and mindfulness. Headspace is a website or application that helps people explore meditation and mindfulness. In addition, Colliers gave a free trial membership to KrowdFit, which offers prizes and incentives to participants based on exercise levels reached, steps taken, etc.

AUGUST 6, 2020 | 3:00 - 6:00PM Galvanize - Phoenix | 515 E Grant St, Phoenix, AZ 85004 AZ BIG MEDIA IS PROUD TO HOST THE 6TH ANNUAL AZRE FORUM: MIDYEAR UPDATE AND FORECAST FOR COMMERCIAL REAL ESTATE. Each year, AZRE brings together some of the state’s most impactful commercial real estate leaders to host a discussion on the state of the industry. This year’s Forum will include three panels of experts – with focuses on Brokerage and Development. We’ll look at what the year has seen so far, market trends and expectations for the future. This event is anticipated to sell out as more than 350 people attended last year. Don’t miss this opportunity to learn, connect and brand your name, image and corporate message to one of the most targeted audiences in the state.

MODERATORS

DAVID KRUMWIEDE Lincoln Property Company

PETE BOLTON Pete Bolton Company

BROKER PANEL 1: MULTI-FAMILY, RETAIL, LAND ETC.

BOB MULHERN Colliers

DEVELOPER PANEL EAST VS WEST

CATHY THURINGER Trammell Crow Company

GEORGE FORRISTALL Mortenson

JOYCE K. WRIGHT Snell & Wilmer

CLIFF DAVID Marcus & Millichap

CHRIS HOLLENBECK Crushman & Wakefield

JEFF FOSTER Prologis

602.277.6045

PHILIP VOORHEES CBRE National Retail Group

CHRIS LOEFFLER Caliber Companies

BROKER PANEL 2: OFFICE + INDUSTRIAL

LEROY BREINHOLT Commercial Properties Inc

CJ OSBRINK Newmark Knight Frank

Panel Sponsor LARRY POBUDA Opus Group

CINDY COOKE Colliers

PAT FEENEY CBRE

STEVE LARSEN JLL

KATHY FOSTER Colliers

Beverage Sponsor

PAUL ENGLER Alliance Bank

azBIGmedia.com

NEW TO MARKET A

D

E

MUNICIPAL A PINAL COUNTY COMPLEX DEVELOPER: Pinal County GENERAL CONTRACTOR: A.R. Mays Construction ARCHITECT: Arrington Watkins Architects, LLC LOCATION: 31500 N. Schnepf Rd., San Tan Valley SIZE: 47,000 SF VALUE: $14.5 million START/COMPLETE: March 2020/ February 2021

14 | July-August 2020

MULTIFAMILY B KIERLAND APARTMENTS DEVELOPER: Leon Capital Group GENERAL CONTRACTOR: McShane Construction Company ARCHITECT: Design Studio Architects LOCATION: 7111 E. Tierra Buena Lane, Scottsdale SIZE: 202 units VALUE: WND START/COMPLETE: June 2020/April 2022

INDUSTRIAL C NORTHERN 101 COMMERCE CENTER DEVELOPER: Creation GENERAL CONTRACTOR: LGE Design Build ARCHITECT: LGE Design Group LOCATION: 7860 N. 106th Ave., Glendale SIZE: 388,621 SF VALUE: WND START/COMPLETE: June 2020/Q1 2021

C

B

F

EDUCATION D TEMPE ACADEMY OF INTERNATIONAL STUDIES - MCKEMY CAMPUS DEVELOPER: Tempe Elementary School District GENERAL CONTRACTOR: Concord General Contracting ARCHITECT: DLR Group LOCATION: 3205 S. Rural Rd., Tempe SIZE: 70,000 SF VALUE: WND START/COMPLETE: June 2020/Q3 2021

INDUSTRIAL E FIRST PARK PV303 WEST 2 DEVELOPER: Merit Partners/First Industrial GENERAL CONTRACTOR: StevensLeinweber Construction, Inc. ARCHITECT: Butler Design Group LOCATION: 3350 N. Cotton Lane, Goodyear SIZE: 643,000 SF VALUE: WND START/COMPLETE: February 2020/ November 2020

MIXED USE F SOLLID CABINETRY DEVELOPER: SOLLiD Cabinetry GENERAL CONTRACTOR: LGE Design Build ARCHITECT: LGE Design Group LOCATION: SW corner of Germann Rd. and Stearman Dr., Chandler SIZE: 251,066 SF VALUE: WND START/COMPLETE: Q1 2020/Q4 2020

15

$85 million development made possible through building trust

By STEVE BURKS

J

ason Morris has established himself and the law firm that he co-founded as one of the top land use, real estate and zoning minds in the Valley. Withey Morris PLC may be one of the more highly-respected firms that developers turn to when they need help getting approval for a project, but for Jason Morris, how he goes about his job is similar to what he did when he was putting himself through college, selling

16 | July-August 2020

shirts and ties at Nordstrom’s.

“People need to trust you, you need to size someone up very quickly, you need to understand your product and you need to give great customer service,” said Morris. “Because in the end, you’re selling. I’m selling a project now instead of selling a shirt and tie, but it’s the same skill set and a lot of it is understanding who you are talking to.”

Morris took on the very difficult

task of getting neighborhood support and, ultimately, Phoenix City Council rezoning approval for the Residences at Phoenix Country Club project.

This $85 million project, designed

by DAVIS and developed by Sunbelt Holdings, initially called for a 164-foot residential tower on the northeast corner of 7th St. and Thomas Rd., on property owned by the Phoenix Country Club that now serves as a

parking lot. But organized and vocal opposition from members of the nearby neighborhood convinced Sunbelt to lower the height to 140 feet, and finally, down to 110 feet in order to get rezoning approved. The lower height seemed to appease most of the neighbors and the project got approved by the Phoenix City Council in mid-March.

The bulk of the work to get the project approved came down to building trust with members of the community, those who will live nearby and were worried that a looming tower would hurt their property values and their way of life.

“The first and foremost issue has always been height,” Morris said.

“But then, there was an issue as to aesthetics and how it would look at that intersection and what we could do to improve the interaction between pedestrians on that corner and in general, activate that corner on Thomas and 7th St. “A major factor in engendering support and trust was the formation of this architectural review committee that had

members of the opposition, as well as those supporting the project, that was working together in a series of meetings to talk about what could be acceptable on the site. That’s something that I had not seen done on a zoning case before.”

The building, named The Residences at the Phoenix Country Club, would consist of 125 luxury residential units built atop a two-story parking podium with an amenity deck. After hearing neighbors concerns, Sunbelt Holdings and its landscape design partner, CollectiV Landscape Architects, made some adjustments to the street-facing part of the project, which will have a double row of shade trees, a wider sidewalk and two entrances to the property with pathways to bus stops on both Thomas Rd. and 7th St. Sunbelt Holdings waded through more than five public hearings over the last few years to reach the finish line. In the end, the city rezoned the property from a midrise to a Planned Urban Development, which has specific allowances and requirements for the project. While

Sunbelt and the Phoenix Country Club ultimately got their project through the approval process, the whole series of events shows the value of patience.

“I can tell you that none of this could have occurred if you didn’t have a landowner that was incredibly patient, because you know that most transactions don’t last this long,” Morris said. “You had a combination of having an incredibly patient property owner, one that had its own community that was supportive of it, and then you had a long-standing, reputable developer in John Graham and Sunbelt Holdings, who has such a stellar reputation that folks knew that it would be done properly and done well. And John is a longtime member of the Phoenix Country Club, so there’s that connection and understands the dynamics of midtown and downtown Phoenix.

“If you had a developer that was from out of state and a property owner that was in a hurry to sell, this wouldn’t work.

A typical, transactional escrow period just would not have been possible given how long this case had to germinate.”

Sunbelt Holdings is hopeful that this project, which is likely to get underway late in 2020, will provide some muchneeded life to what is a deteriorating corner. In the other three corners of the intersection are two vacant buildings and an aging Circle-K gas station.

“I think that one of the reasons that the mayor and the council supported this was because of the catalyst that this could be for that corner,” Morris said.

“It’s rare to find an arterial-to-arterial intersection, in the fifth largest city in the country where there is such an opportunity to redevelop and recreate a whole intersection.”

Morris even joked that if more new project proposals come into that intersection, he’ll likely be one of the first people that developers call.

“We’ve got the institutional knowledge, but more importantly, we have the relationships with that community and the city officials,” Morris said. “It’s gratifying that we’ve got that reputation. In fact, the leader of the opposition, at the end of the case said, ‘We’ve got to go get a drink and talk about this.’ That’s the biggest compliment you can get.”

17

MULTIFAMILY/SALES

$55,4M | 266,331 SF

THE METRO APARTMENTS AT ZANJERO 9450 W. Cabela Dr., Glendale BUYER: Sunroof Enterprises SELLER: Metro at Zanjero LLC. BROKER: N/A

$42M | 201,115 SF

SUPERSTITION CANYON APARTMENTS 1247 S. 96th St., Mesa BUYER: KB Superstition Canyon LLC SELLER: Holualoa Companies

$24.6M | 546,427 SF

AUTUMN RIDGE APARTMENTS 1944 W. Thunderbird Rd., Phoenix BUYER: Capital Real Estate SELLER: BH Management BROKER: N/A

$20.7M | 133,308 SF

DESERT WILLOW APARTMENTS 2025 W. Indian School Rd., Phoenix BUYER: Western Wealth Capital SELLER: Desert Canyon Investment Properties BROKER: ABI Multifamily and Marcus & Millichap

$18.2M | 130,554 SF

CHANDLER VILLAGE APARTMENTS 598 N. McQueen Rd., Chandler BUYER: LEDG Capital SELLER: Community Builders Group BROKER: N/A

RETAIL/SALES

$12,8M | 15,071 SF

THIRSTY LION GASTROPUB AND GRILL 3077 W. Frye Rd., Chandler BUYER: The Ron Kaufman Companies SELLER: Winfield Lee Investments BROKER: Marcus & Millichap

$11.9M | 107,961 SF

$5.6M | 111,571 SF

$9M | 14,820 SF

$5.5M | 14,807 SF

GARFIELD STORAGE 11616 E. Portland St., Phoenix BUYER: William Warren Group SELLER: Hibernia Capital Partners BROKER: Cushman & Wakefield WALGREEN’S STORE #11610 2000 S. Mill Ave., Tempe BUYER: Troy G Zimmerman SELLER: Three Ochs LLC BROKER: Marcus & Millichap

18 | July-August 2020

POWER SQUARE MALL STORAGE 2055 S. Power Rd., Mesa BUYER: Guardian Self Storage SELLER: Infinity Mesa LLC BROKER: N/A

WALGREEN’S STORE #9175 23477 W. Yuma Rd., Buckeye BUYER: Wanda Mae Adams SELLER: Smith Generations Properties LLC BROKER: N/A

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

Sources: Race Carter, Cushman & Wakefield.

OFFICE/SALES

$30M | 206,199 SF

PERIMETER PARKVIEW CORPORATE CENTER 8377 E. Hartford Dr., Scottsdale BUYER: Asset Preservation Inc. SELLER: The Roxborough Group BROKER: Cushman & Wakefield

$19.4M | 79,537 SF

$17.3M | 59,660 SF ELEMENT AT KIERLAND

$19.2M | 116,200 SF

$9.2M | 96,911 SF

KIERLAND 14646 N. Kierland Blvd., Scottsdale BUYER: Providence Real Estate Group SELLER: Waitt Company BROKER: N/A

92 MOUNTAIN VIEW 10001 N. 92nd St., Scottsdale BUYER: Exeter Property Group SELLER: Equus Capital Partners BROKER: N/A

LAND/SALES

$17.5M | 8.57 AC

14614 N. Kierland Blvd., Scottsdale BUYER: Providence Real Estate Group SELLER: Montana Avenue Capital BROKER: Cushman & Wakefield

FOOTHILLS VISTA TECH CENTER 15210 & 15220 S. 50th St., Phoenix BUYER: Dunbar Real Estate Investments SELLER: LNR Partners BROKER: Cushman & Wakefield

INDUSTRIAL/SALES

$18M | 358,886 SF

THE PHOENICIAN LOT 9 64th St. & Camelback Rd., Phoenix BUYER: Shea Homes SELLER: Gary Raymond BROKER: Nathan & Associates

INDUSTRIAL ASSEMBLAGE 12 buildings near I-17 & 1-10 Freeways, Phoenix BUYER: Harrison Properties SELLER: Hibernia Capital Advisors BROKER: N/A

$14M | 75.79 AC

$14.85M | 126,011 SF FALCON COMMERCE PARK LOTS 1, 5A & 6A

BETHANY 303 6495 N. Sarival Ave., Litchfield Park BUYER: VanTrust Real Estate SELLER: Hunter Engineering BROKER: Cushman & Wakefield

$14M | 1.83 AC

1710 N. Higley & 5051 & 5111 E. Indigo St., Mesa BUYER: MDH Partners SELLER: Silagi Development & Management BROKER: N/A

$14.5M | 110,350 SF

601 N. Central Ave., Phoenix BUYER: Glasir Capital Partners SELLER: H-M Investments Inc.

SKYWAY BUSINESS PARK II LOTS 1 & 2 11470 & 11560 N. Dysart Rd., Surprise BUYER: MDH Partners SELLER: Silagi Development & Management BROKER: N/A

$12M | 48.13 AC

$14.15M | 105,360 SF

AVONDALE 50 SWC Avondale Blvd. & I-10, Avondale BUYER: Westcore Properties SELLER: Rankin Real Estate BROKER: N/A

$10.3M | 22.51 AC

200 W. Germann Rd., Chandler BUYER: PB Bell Companies SELLER: Ziggys Enterprises LTD Partnership BROKER: N/A

1516 W. 17th St., Tempe BUYER: Amazon.com SELLER: Greenstreet Real Estate Partners BROKER: Cushman & Wakefield

$12.4M | 142,782 SF

DREAMFOAM BEDDING 4455 W. Camelback Rd., Phoenix BUYER: Westcore Properties SELLER: R&S Mattress BROKER: Brydant Real Estate 19

LEGISLATIVE UPDATE

EVICTION MORATORIUMS: Precursors to long-term housing consequences

O

ver the past few months, plenty of debate has arisen pertaining to evictions and whether renters should be required to pay rent during a public health crisis. Certainly no one wants to see anyone lose their home during the current pandemic.

But simply asking rental owners to forgo rent for four to six months is unsustainable for Arizona’s long-term housing outlook.

Many rental property owners are not large corporations, but small, familyrun businesses, retirees and couples who have invested substantial portions of their savings in rental real estate.

Their rental income may be most or all of their total household income. Now, many of those small owners are faced with up to 120-180 days of lost income.

Even with significant loss of income, those owners are still statutorily bound to make timely repairs to their rental units and pay for property taxes, employee payroll, insurance and their mortgage. While some have suggested that owners have benefited from mortgage forbearance, the reality is that not all banks have offered it. Most significantly, mortgage forbearance does nothing but delay the owner’s mortgage obligation.

There are virtually no businesses, non-profits, government agencies or individuals that can be fully operational for four to six months without receiving any sort of income.

Three days after Gov. Doug Ducey enacted his Executive Order postponing eviction actions, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The CARES Act included its own 120-day eviction moratorium, providing households significant relief by way of the $1,200 stimulus checks per individual plus $500 per child. Additionally, the CARES Act provided an additional $600 per week in unemployment benefits on top of the state’s existing $240 unemployment benefit.

20 | July-August 2020

Courtney LeVinus AMA

Though well-intended, this combination of relief measures, including enhanced unemployment benefits and an extended eviction moratorium, unintentionally created an incentive for some residents to withhold rent payments without penalty.

Rental property owners remain caught in the middle without any prescribed assistance to compensate them for ongoing losses. Without compensating owners, this action is the equivalent of a governmentinduced taking of income.

Renters account for more than 35 percent of total households in Arizona.

The latest U.S. Census survey places 919,931 renter households across the state. Combined with a median rent of $1,036 per month, nearly $1 billion in rent is paid every month in Arizona.

If renters cannot or decide to not pay rent during the eviction moratorium, losses add up quickly. In addition to possibly four months’ lost income, this means come July, an additional two months’ income could be lost to eviction proceedings and preparing the rental unit for a new tenant.

Though not exact, industry estimates place the percentage of renters forgoing rent payments between 15 and 20 percent, meaning the potential hit to the rental housing industry will be staggering. For example, should 15 percent of renters not pay rent for four months, rental owners will face $871.2 million in lost income.

Prior to the COVID-19 pandemic, the state of Arizona was already on the brink of a housing affordability crisis.

This was the result of three decades of local land use and zoning policies that have artificially restricted the supply of new homes built in Arizona. Combined with attracting a million new residents in only a decade, rents have naturally increased. It’s a simple function of supply and demand.

The federal and state eviction moratoriums and delays may very well have already had a dampening effect on new housing production. As some policymakers continue to indicate a willingness to limit property owners from collecting market rent, investors may ultimately shift entirely away from what was once considered a relatively safe investment – real estate.

In the near term, should these moratoriums continue past July and rental property owners be forced to forgo income indefinitely, owners could be forced to sell, or simply lose their property to foreclosure. In this case both the renter (whom these moratoriums were intended to protect), and the property owner, lose.

What can be done to mitigate the long-term consequences of the COVID-19 pandemic on Arizona's rental housing stock? For one, we need to be cautious about shifting financial burdens from one group to another. If the goal is to provide a social safety net to those who are in financial distress and cannot pay rent (or any other expense), then the social safety net should be provided by the government and taxpayers, not by certain classes or groups of people, in this case private rental property owners.

Arizona must also look to policies that incentivize the production of affordable housing and new market rate housing, whether by removing land use barriers at the local level or providing state-level incentives such as a state Low Income Housing Tax Credit program. In the final analysis, more supply means prices stabilize and more Arizonans are better able to afford their housing costs.

Courtney LeVinus is President and CEO of the Arizona Multihousing Association.

projecting when the pandemic first hit.

Uncertainty reigns

W

hat a long, strange trip it has been. And it’s only July!

Arizona’s Second Regular Legislative Session of the 54th Legislature began with a strong and sustained Arizona economy and ended in the midst of a global pandemic. The result is a lot of economic uncertainty.

The Legislative Session ran for 135 days, ending on May 26, with 1607 bills introduced and only 90 bills passed into law. A skinny budget was passed with the continuing resolution of 2020 spending including enrollment growth, formula growth, and inflation calculations.

Of the bills that were passed, a few of the economic highlights: HB 2771/SB 1245 Qualified Facilities Tax Credit Extension • Extends, from January 1, 2023, to January 1, 2030, the individual and corporate Credit for Qualified Facilities.

• To qualify for the credit, a taxpayer must invest in a new qualified facility in Arizona or expand an existing qualified facility in Arizona and produce new fulltime employment positions where the job duties are performed at the location of the qualifying investment.

HB 2686/SB1222 – Building Permits; Utilities; Prohibitions (AAED did not take a position) • Prohibits cities and towns from denying the issuance of a building permit based on the utility provider servicing the project.

Carrie Kelly AAED

SB 1694/HB 2911 – UI Compensation; Coronavirus Disease (AAED did not take a position) • Permits the Arizona Department of Economic Security (DES) to establish an alternative unemployment insurance (UI) benefit program for people impacted

by COVID-19.

• Would allow for easier qualification of unemployment benefits for those whom employment is affected by COVID-19.

Many economic development bills died when the session ended. Bills that may pop up again next session include additional funding for students in career and technical education programs and the small business investment credit extension. It is yet to be determined whether we will see a special session later this year, but issues to be discussed should the legislature be recalled may include liability protections related to COVID-19 and other economic recovery issues.

On an optimistic note, revenues to the state are coming in higher than expected given the business closures and stay-athome order. Although revenues are down from the same months last year, they have not been down as severely as many were

AAED Response to COVID-19 Economic Development Week is celebrated the first week in May as a time to bring awareness to policies and programs that create jobs and increase the quality of life. In the year of COVID-19, it felt inappropriate to celebrate Economic Development Week, but AAED felt it was fitting to highlight the important work our members and Arizona communities were undertaking to assist with economic recovery. With the theme of “Resilient Arizona Communities”, we focused the spotlight on the incredible work and accomplishments we saw across the State of Arizona.

Highlights included: • Greater Phoenix Economic Council hosted online support to help businesses apply for federal business loans; • City of Mesa (and many other cities) has created grant programs with money available to businesses to aid in the recovery. Mesa has also started a technical assistance program for businesses; • Yavapai County community leaders have created a unified response to economic and workforce issues; • The Town of Payson created the #OnePayson campaign to support local awareness and provide financial resources to the community; • Arizona Commerce Authority launched the Arizona Small Business Bootcamp; • Greater Yuma leaders launched the Greater Yuma Resource Portal, bringing together more than 15 organizations to support economic recovery.

The state of economic development in Arizona right now is one of innovation and collaboration. There is no doubt we will carry that through to the next legislative session. We are a Resilient Arizona.

Carrie Kelly is the executive director of the Arizona Association for Economic Development (AAED). The mission of AAED is to serve as Arizona’s unified voice for responsible economic development through professional education, public policy, and collaboration. With over 500 members, AAED’s vision is to be the most trusted resource for economic development stakeholders committed to promoting a vibrant Arizona economy.

21

LEGISLATIVE UPDATE

Seeking protection from COVID-19 liability A

s businesses cautiously begin the reopening process amid the continued spread of COVID-19, most are putting new processes and procedures in place to protect the health of their employees, customers and tenants. Business owners truly are in unchartered territory. Guidance from the Centers for Disease Control (CDC) as well as state and local authorities is changing on an almost daily basis. As scientists learn more about how the disease spreads, recommendations for best practices for businesses continue to evolve.

Recognizing that good actors need certain reasonable protections from lawsuits, several state lawmakers have stepped up to introduce COVID-19 liability legislation.

Protection of this sort will be crucial to our state’s economic recovery.

Many business owners are still hesitant to fully reopen or host certain events due to uncertainty around their liability should anyone claim to contract the virus at their place of business. Insurers are generally not willing to offer policies that would cover communicable diseases, especially in the current environment. We need for lawmakers to pass legislation that would offer a degree of protection for companies that take reasonable precautions.

The Arizona State Legislature is

22 | July-August 2020

Suzanne Kinney NAIOP

currently not in session. They closed the regular session on May 26 after passing a bare-bones budget to keep the state operational until the legislature is able to safely reconvene.

Rumors abound about potential special sessions over the summer.

These special sessions could make further adjustments to the state budget based on how the pandemic affects tax revenues. There are a number of lawmakers who would like to take up unfinished legislation that they feel is especially important to their constituents. And many businesses are encouraging legislators to refine and finalize the COVID-19 liability legislation that was initially introduced this spring.

We’ve all learned a lot since the initial versions of the COVID-19 liability legislation was introduced, so we are

already in a better place to craft a bill that will assist with the economic recovery. NAIOP, the commercial real estate development association, is participating in discussions around this legislation to ensure that building owners and landlords are included in the final package. We hear from our members about the actions they are taking to disinfect their buildings, put social distancing measures in place in common areas such as elevators, lobbies and fitness centers, provide hand sanitizing stations, require staff to wear masks, and communicate with tenants if anyone in the building is diagnosed with COVID-19. These are just a few examples of the steps building owners and landlords are taking, working handin-hand with their tenants to keep everyone as safe as possible.

Given the widespread transmission of COVID-19 in our community and the lack of sufficient contract tracing capabilities, it can be extremely difficult to know with certainty where an individual may have contracted the virus. Providing legal protections for businesses, building owners and landlords who take all the right steps will be key to getting Arizona’s economy humming again.

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

Why do you love your work?

I am an artist at heart, and designing beautiful buildings and spaces scratches my creative itch. When we present efficient solutions and plans that work, despite tricky building and zoning code requirements, I feel a great sense of satisfaction.

What are the current design trends?

There is a renewed focus on healthy environments, and simple design solutions can make all the difference.

Aesthetically, we see warmer color palettes inside and out and a layered, more curated style with bold statement art pieces.

What are your favorite design tools?

When it comes to site planning or space planning, nothing can replace a great pen and a roll of trace paper. Oh, the sound of a fresh rip of trace and the swishing of a pen!

602-617-3552 www.morstudio.net

What has surprised you about starting your architecture practice?

I didn’t expect that being a women-owned small business would be the firm’s greatest strength. Our small size with large scale ground-up project experience give a unique advantage to provide an exceptionally high level of service to clients and continuity in every project from kickoff meeting to final punch list.

EXPANSION PROJECTS

EXTERIOR RENOVATIONS

CORPORATE INTERIORS

RESTAURANT AND RETAIL

RELIGIOUS

morstudioarchitect Michelle Rutkowski, RA, LEED AP COMMERCIAL ARCHITECTURE AND INTERIORS Founder, and Owner of MOR Studio EDUCATIONAL AND CHILDCARE

23

BATTLE OF THE BOXES

THINKING INSIDE THE BOX

By STEVE BURKS

J

amie Nollette, the founder of Pipeline Worldwide and VP of engagement for Goodmans Interior Structures, guessed that the commercial real estate industry in Arizona would get behind a good cause, and boy was she right.

Pipeline Worldwide hosted a design and construction competition to convert shipping containers into

24 | July-August 2020

housing for healthcare workers at refugee settlements in Uganda and the CRE community delivered some outstanding results.

Three teams participated in the Battle of the Boxes and were made up of representatives from some of the top companies in the Valley, as well as students from the East Valley Institute of Technology, West-MEC, Arizona State University and Grand Canyon University.

The teams took 40-foot, by 8-foot shipping containers and converted them into living quarters for six people. Each container will be equipped with solar power capabilities, so the workers will have access to electricity.

Each container will be filled with medical supplies and equipment to support two hospitals and two clinics in Uganda before being converted into living quarters for workers in the refugee settlements. The projects must

be easily replicated by the craftsmen in the refugee settlements and made with materials that are readily available in Uganda. Each team completed an instruction manual to send with the box that gave detailed instructions on how to build the project on site. Each team had a budget of $15,000, and all three came in under budget.

Judging took place on May 14 and one category winner was announced.

The Best Overall category was won by #1Team4Uganda, which is made up of DMB, DWL Architects, McCarthy Building Companies, East Valley Institute of Technology, Clearway Energy, and HonorHealth.

The other remaining awards will all be announced at Pipeline Worldwide’s annual event, Getting WELL Connected, on October 7, 2020.

Those awards include: Best in Design Excellence, Best in Sustainability, Best in Constructability, Best in Design Innovation (Object), MVP (Person), and People’s Choice. More information about the event and registration can be found at pipelineworldwide.org/events.

#1TEAM4UGANDA

Participating companies: DMB, DWL Architects, McCarthy Building Companies, Clearway Energy, and HonorHealth.

Student support from: East Valley Institute of Technology and Arizona State University Key contributors: Joey Gornik, Tyler Shupe, John Pawloski and Sean Miller (McCarthy Building Companies); Michael Burke (DMB); Nicole Liebgold, Nicholas Russell and Peter Pascal (DWL Architects); William Carleton (Clearway Energy); Rick Murdock (HonorHealth); and Ryan Konsdorf (Snell & Wilmer LLP); Cody Van Cleve (Arizona State); and Mark Yockus, Carlos Sanchez, Chad Wilson, Kevin Koelbel, Dana Kuhn, Curtis Ruhl, Mark Howard, Edith Perez and Joe Ditmer (EVIT) Project highlights: The most

#1TEAM4UGANDA

25

BATTLE OF THE BOXES SUS-TAINERS: The team provided maximum flexibility in its design with a UniStrut system and moveable walls made up of peg boards for hanging items. The team also put up templates for where the windows would be located.

#1TEAM4UGANDA: The team used pressed plywood to make up the majority of the interior of its container, with a simple desk and chair and a bed, with storage underneath it. In the bottom photo, the electrical system can be seen, with storage batteries that will be sent with the container when it is shipped to Uganda.

noticeable feature on #1Team4Uganda’s project was the six separate doors, one for each living compartment. This feature maximized the amount of space that the residents could enjoy and gave each person their own entry.

Also, the team designed removable walls in the middle compartments to allow for residents who want to share a space, perhaps a husband and wife, to do so. Key exterior features are a water collection system, a solar power system and a ventilation system. The walls of the steel container are insulated using grass and leaves, and each unit will have its own window. Each unit is equipped with lights and electrical outlets and modest furniture that include a desk and chair, as well as a sleeping pod. The team included several storage spaces 26 | July-August 2020

in each living quarters. One unique feature that the team designed was a lockable storage space in the sleeping bod. The wooden panel that the mattress sits on can be lifted, revealing the storage area. This will allow added security for the resident to store any valuables that they might have.

SUS-TAINERS

Participating companies: Red Development, Sundt, Cuningham Group, Westwood Professional Services, Smith-Nephew Student support from: Arizona State University Key contributors: Scott Wagner (Red Development); Sarah Owen, Andrew Wagner, Ben Perrone (Sundt); Julianna Sorrell, Kristi Harris, Jenna

Undlin, Nick Weidner, Kyndra TrevinoScott (Cuningham Group); Jack Moody, Joe Lockett (Westwood); Ken Kobs (Smith-Nephew); Jennifer Churchia, Jules Byers (Arizona State) Project highlights: One of the surprising discoveries that the Sustainers team made in the design and execution of their box was that steel UniStrut materials and welders to install them are widely available in Uganda. This project’s key feature is flexibility. Each living compartment is framed by peg board and plywood walls mounted on a steel frame that is then attached to a pair of UniStruts that run the length of the interior of the container. Moving the walls is as simple as disconnecting a few bolts and sliding the wall to where it needs

TEAM IN A BOX: The team created tidy, organized living quarters. The team was also given a new chair design from Creative Furniture Connections that will be a welcome addition to such a compact space.

to go. Or, walls can easily be removed.

The team chose the peg board because it allows the user to easily mount shelving or hooks for storage. Each compartment has a steel bed frame and a desktop that slides out from under the frame, as well as a chair that is stored under the bed.

This project features a water collection system, a ventilation system, an exterior window for each unit, as well as a solar electrical system. There is one entry door to the units, and an outdoor seating area that is shaded by an awning.

TEAM IN A BOX

Participating companies: Alter Group, Corgan, McCarthy Building Companies, Wespac, Wood Patel and SMIL Student support from: Grand Canyon University, West-MEC

Key contributors: Frank Hoo, Darin Moore (Wood Patel); Tyler Holmes (Wespac); Tyler Shupe, Todd Scott (McCarthy); John Medcalf, A.J. Thomas, Deeksha Joshi, Moises Lavoignet Garcia, Sreedeevi Sooryanarayana (Corgan); Kent Moe (Alter Group); Ryan Konsdorf (Snell & Willmer LLP); Chip Wise (Vizient); Emmy Tomforde, Samantha Russell, Mike Mobley (Grand Canyon University).

Project highlights: Team In A Box created a well insulated, cozy living quarters, with unique designs including sliding doors, a fold-down desktop workspace, complete with storage space.

The team decorated the hallway ceiling with baskets that were made by women in the refugee settlements to give the space some authentic African touches.

The sleeping pods are relatively large,

and were designed to maximize space through stacking them, like bunk beds, but with access to only one side.

One unit will have its sleeping area on the bottom, while the neighboring unit’s sleeping area will be above. As with all of the projects, there will be a solar electrical system. There will be windows in each sleeping pod, roof ventilation system and electrical outlets and lighting. One unique product was introduced and will travel with this box to Uganda. Creative Furniture Connections is providing six chairs that can be folded flat and are easily stored, which helps in tight quarters. The chairs can be made out of one small piece of plywood and are cut with a computeraided cutting system. There’s very little wasted materials.

27

Your banker should say what they’ll do and do what they say.

Not one time, but every time.

It’s not about making promises, it’s about keeping them.

That’s the kind of accountability you’ll get from Alliance Bank of Arizona.

Bank on Accountability

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

alliancebankofarizona.com

Top 10 - Forbes Best Banks Alliance Bank of Arizona, a division of Western Alliance Bank, Member FDIC. Western Alliance ranks top ten on Forbes’ Best Banks in America list, five years in a row, 2016-2020.

IN COMMERCIAL REAL ESTATE FOR 2020

By MICHAEL GOSSIE

T

here are many adjectives that could be used to describe all of the 2020 Most Influential Women in Commercial Real Estate. Innovative.

Driven. Brilliant.

But that doesn’t mean they don’t all have secrets they keep mostly to themselves. Consider this surpsiring fact: "I would love to meet and have lunch with Snoop Dogg,” says Carrie Masters, COO at LGE Design Build.

But some little-known facts may actually be the secret to their success.

“I grew up on a dairy farm in Oregon and credit my strong work ethic to this experience — farmers don’t take vacations," says Marina Hammersmith, senior vice president at ORION Investment Real Estate. "I was also fortunate to represent the Tillamook County Dairy Industry as Dairy Princess and spent much of my senior of high school year traveling the state, touting the benefits of dairy, and echoing the phrase, ‘Hey, baby, drink your milk.’”

Hammersmith's strong work ethic seems to be a common theme among the Most Influential Women. Some of them even have side hustles.

“I actually hold a second job," says Julie King, CEO of Harmon Electric. "I am a fitness instructor. I teach spinning, strength training, bootcamp … but for many who know me, the most surprising is yoga.”

And long before they were Most Influential Women in Commercial Real Estate, some of these women were shaping the landscape of the state ... or at least their families were.

“I am a fifth-generation Arizonan on my mother’s side," says Kim Soule, senior vice president at Colliers. "Our family migrated here before Arizona statehood and several East Valley streets carry my family’s names (Ellsworth, Riggs, Dana). Even worse, I was named after a subdivision in Mesa that is now defunct, which shows you how old I am.”

There is a lot more to learn about this year’s Most Influential Women in Arizona. Get to know them on the pages that follow and celebrate them on Sept. 15, 2020, at the Most Influential Women dinner. For details and to read extended profiles of each woman, visit azbigmedia.com.

MOST INFLUENTIAL WOMEN Katie Haydon Perry

Marina Hammersmith

Lisa Bentley

Background: Haydon Perry graduated from Xavier College Prep, ASU, and earned her MBA in Global Management at Thunderbird. In 2010, she joined the Haydon team, bringing her global insight to establish a strong company culture.

Background: Hammersmith, CCIM, has more than 25 years of healthcare real estate expertise with extensive hands-on experience in asset management, property management, construction project management and brokerage.

Surprising fact: “I have 5 children, ranging in age from 3 to 17. Finding a balance between motherhood and business leader is often challenging, but incredibly rewarding. I want my daughters to see that women don’t have to choose between a family and a career, and my sons to not be afraid of a strong woman — they will enrich your life.”

Surprising fact: “I grew up on a dairy farm in Oregon and credit my strong work ethic to this experience — farmers don’t take vacations. I was also fortunate to represent the Tillamook County Dairy Industry as Dairy Princess and spent much of my senior of high school year traveling the state, touting the benefits of dairy, and echoing the phrase, ‘Hey, baby, drink your milk.’

Background: Bentley has 30 years’ experience in commercial real estate and has been with McCarthy Nordburg for 26 years. She is instrumental in helping to sustain the firm’s clientele with contributions in client development, contract negotiations, strategic marketing and collateral development.

Executive vice president Haydon Building Corp.

30 | July-August 2020

Senior vice president ORION Investment Real Estate

Partner McCarthy Nordburg

Professional advice: “Do not focus on being a woman in the industry. Invest your time in working hard, building relationships and play the long game, maintain work/life balance and grow your knowledge and experience.”

Surprising fact: “I have had my own investment account since I was 18. I enjoy researching investments in the stock market.”

LEADERSHIP FOR TODAY. VISION FOR THE FUTURE.

SkySong, The ASU Scottsdale Innovation Center

The Plaza Companies team congratulates Peggy Maxwell, Senior Vice President-Property and Facilities Management, on her recognition as one of the Most Influential Women in Real Estate

by AZRE Magazine.

Peggy Maxwell

Estrella Medical Plaza II

SINCE 1982 Plaza Companies is a full-service real estate firm specializing in the management, leasing, and development of some of the most innovative real estate projects in Arizona.

We pride ourselves in taking challenges and turning them into opportunities, and seeing the potential in properties in a variety of different locations, sectors, and sizes. Thanks to the type of leadership Peggy Maxwell and other Plaza team members provide, our projects are helping drive the Valley’s growth and fuel Arizona’s economic development efforts.

We’re proud to be involved in some of the Valley’s premier development projects, and are excited about what the future holds.

Park Central

www.theplazaco.com | 623.972.1184

MOST INFLUENTIAL WOMEN

Gretchen Kinsella

Julie King

Sheryl Hays

Background: Kinsella manages the business operations of the DPR Construction offices in Phoenix and Tucson. In this role, she leads a team of more than 400 people and oversees a diverse portfolio of projects that averages more than $300 million in annual revenue.

Professional advice: “Play to your strengths and seek out good people to help in your weak points. Having a mentor is important to bounce ideas off of as well as get solid advice from. Peer groups are important to see things from other potential leaders points of view. Be humble. People respond well to others that are strong, but not overconfident. Don’t lose sight of yourself. Take care of you. A strong leader has to learn when to take a time out.”

Professional advice: Hays has more than 20 years’ experience in commercial property management. She joined Wentworth in 2014 to establish and build the company’s property management division, which now manages about 3 million square feet.

Arizona business unit leader DPR Construction

Professional advice: “It’s no secret that the construction industry continues to be less diverse than other fields and it can be hard to feel supported if you’re different. But that said, I have always loved my job. Look for environments that encourage ideas and embrace authenticity and innovation … places that embrace you being the best you.”

CEO Harmon Electric

Surprising fact: “I actually hold a second job. I am a fitness instructor. I teach spinning, strength training, bootcamp … but for many who know me, the most surprising is yoga.”

TO READ FULL PROFILES OF ALL THE MOST INFLUENTIAL WOMEN OF 2020, VISIT AZBIGMEDIA.COM. 32 | July-August 2020

Director of property management Wentworth Property Company

Lesson learned in 2020: “It is easier to stay engaged when we are in the office. I think we all took for granted the spontaneous conversations in the breakroom or dropping by a tenant’s office when touring a property.

Staying personally engaged has been an emphasis with the work from home situation resulting from the COVID-19 pandemic. For me, this has meant calls over emails and video or FaceTime with my team.”

STRONGER TOGETHER COMMERCIAL REAL ESTATE Arizona In this challenging and rapidly fluctuating environment, you want your real estate advisors to have you first in mind. At Colliers, you can trust us to successfully guide you through these changes.

We are here to help. colliers.com/arizona

Accelerating success.

33

MOST INFLUENTIAL WOMEN Jackie Orcutt Senior vice president CBRE

Professional advice: “Focus on building and maintaining strong relationships. Seek mentors and allies who can support your career goals and can offer feedback and sound advice.

Never burn a bridge. It’s a small world and relationships come back around and take on many shapes and forms over the years.”

Lesson learned in 2020: “The phrase ‘all for one’ is becoming more important than ever when it comes to collaboration. Sharing perspectives and information among the many different groups involved in a deal—brokers, lenders, contractors, developers, etc.— adds tremendous value to a transaction.”

Surprising fact: “I recently picked up the hobby of hunting for mushrooms.”

Peggy Maxwell

Senior vice president of property and facilities management Plaza Companies Background: Maxwell has more than 30 years of industry and property management experience and oversees Plaza Companies’ efforts with regard to third-party real estate and property management operations. She is also member of Plaza’s Executive Council, which determines long-term corporate strategies.

Professional advice: “Show up early, work hard, do your best and be nice.”

Lesson learned in 2020: “Support and empower the people that work on your team and they will achieve amazing results.”

Surprising fact: “I weighed 12 pounds when I was born and was two weeks overdue. I have been in a hurry and on a diet ever since.”

TO READ FULL PROFILES OF ALL THE MOST INFLUENTIAL WOMEN OF 2020, VISIT AZBIGMEDIA.COM. 34 | July-August 2020

Carrie Masters COO LGE Design Build

Background: Masters has been with LGE Design Build for more than 17 years. She started as a receptionist and has grown into her role as chief operations officer and trusted advisor to President and CEO David E. Sellers.

Professional advice: “Have passion and compassion. Loving what you do keeps you curious to learn and your passion will be contagious to others. Perfection doesn’t exist so be kind to yourself. Allow yourself to make mistakes. Those mistakes allow you to learn and improve, you become wiser and better prepared for what’s to come.”

Surprising fact: “I would love to meet and have lunch with Snoop Dogg.”

W E N T W O R T H Sheryl Hays

On being named one of the 2020 Most Influential Women in Commercial Real Estate

C O N G R A T U L A T E S

The Wentworth Property Management team of

Meg Martin and Amy Roberts

on your 2019 BOMA Greater Phoenix TOBY Award for Scottsdale Landing.

W E N T W O R T H P R O P E R T Y

M A N A G E M E N T

602.875.5005 wentworthproperty.com 802 N. 3rd Ave., Phoenix, Arizona 85003

35

MOST INFLUENTIAL WOMEN

Trisha Talbot

Jennifer Reynolds

Kim Soule

Professional advice: “Learn from both successful as well as failed transactions – each provides valuable experience. When you win, celebrate your accomplishments with everyone that supported you at the office and at home; and remain positive after a loss, evaluating where you can improve and get back to work.”

Background: Reynolds offers over 25 years of experience in hospitality, restaurant and retail design and implementation. Reynolds’ primary focus is designing beautiful, yet highly functional spaces.

Background: Soule specializes in the acquisition and disposition of commercial properties, including multi-tenant office buildings, industrial facilities, hotels and undeveloped land.

Lesson learned in 2020: “The most important lesson I have learned over the past year is letting go. No one tells you when you are a leader that not everyone thinks the way you do, not everyone is willing to do all that you are willing to do and not everyone appreciates the opportunity. Learning to deal with the different mindsets and accepting that has helped me focus on what I want to bring to my leadership role rather than focusing on things I cannot control.”

Professional advice: “Communicate and be honest. It is unconscionable how many times I have called brokers and never heard back from them. How can you sell something if you don’t respond?”

Managing director Newmark Knight Frank

Lesson learned in 2020: “I have learned resilience and adaptability. I am trying to experience the work-from-home environment and impacts of the current pandemic like a speed bump, rather than a mountain – taking things day-by-day instead of getting overwhelmed by the big picture. This flexible mindset will benefit me and my leadership, overall.”

Principal Ideation Design Group

TO READ FULL PROFILES OF ALL THE MOST INFLUENTIAL WOMEN OF 2020, VISIT AZBIGMEDIA.COM. 36 | July-August 2020

Senior vice president Colliers

Surprising fact: “I am a fifth-generation Arizonan on my mother’s side. Our family migrated here before Arizona statehood and several East Valley streets carry my family’s names (Ellsworth, Riggs, Dana). Even worse, I was named after a subdivision in Mesa that is now defunct, which shows you how old I am.”

Elevate the Everyday LGE Design Build is proud to congratulate Carrie Masters on being recognized as one of the Most Influential Women in Arizona Business.

“Carrie’s selection into the Most Influential Women in Arizona Business is well deserved. Her knowledge in commercial real estate, talent acquisition and the cultivation of company culture has been a huge asset to our team as well as our clients” – David Sellers, CEO/President, LGE Design Build.

480.966.4001 | www.lgedesignbuild.com

Make a BIG difference in your morning.

Carrie Masters Chief Operations Officer

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Log on to azBIGmedia.com to get the most up-to-date news in Arizona business, real estate, travel, lifestyle, and more!

Check us out today at: azBIGmedia.com

37

MOST INFLUENTIAL WOMEN

Dynamic Duo Jennifer May and Colleen Tebrake, co-founders, Two Sister Bosses BACKGROUND: May and Tebrake founded Two Sister Bosses, a Sedona-based hotel development and management company that is focused on creating sustainable, one-of-a-kind experiences that are in-harmony with the natural environment. The company’s first project is Ambiente, a Landscape Hotel, the first of its kind in North America.

Colleen Tebrake Lesson learned in 2020: “This year has taught me that although I can’t control everything, I can manage my reaction to what’s happening around me. I have grown keenly aware of what I control and what I don’t, and that no one but me is responsible for my response. I am the only person that can decide how I will move and respond to things in this world. There is something strangely empowering about that.”

Surprising fact: “I have a MacGyver alter ego. I can figure out and fix most things, whether it comes in a box with a million pieces or it’s something that breaks and can be taken apart. I’ll figure it out.”

Jennifer May Professional advice: “Every day is an opportunity to learn something new. A positive outlook is infectious and goes a long way, and keeping an open mind and a happy heart is key. You should go to work with a kick in your step.”

Surprising fact: “I’m a bit of an adventurist. I’ve bungee-jumped, ridden a boat traveling 170 mph, and I once hiked 19 miles with a 2,200-foot vertical climb to hunt organic, hormone-free meat with my husband. We tent slept in 17-degree weather, took one shot, and carried out a 58-pound pack all in 24 hours.”

TO READ FULL PROFILES OF ALL THE MOST INFLUENTIAL WOMEN OF 2020, VISIT AZBIGMEDIA.COM. 38 | July-August 2020

SAVE THE DATE

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We’re excited to announce that we’ll be honoring 50 outstanding women for their impact to their organizations, to the region’s business climate and to our community. All fifty women will be recognized and awarded at the dinner as well as within the July/ August issue of AZ Business and AZRE magazines. In addition, we’ll unveil and announce specialty award winners in several areas of leadership. Please join us for an evening of networking, connecting and celebrating the accomplishments of this year’s class of Most Influential Women.

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MOST INFLUENTIAL WOMEN

Terrific Trio

Tara Grenier, Kristine Millar, Daily Wright principals, Orcutt Winslow

Tara Grenier, IIDA

Kristine Millar, CPSM

Daily Wright, IIDA

Background: Grenier was instrumental in Orcutt | Winslow’s expansion into Texas, as well as a new $750 million joint venture opportunity that led to a more focused value proposition within the firm. Grenier enjoys her role as one of the three women in leadership as a pioneer in office culture, employee engagement and operational efficiencies.

Background: Millar leads a national creative services studio and pushes for “bigger” ideas in experiential design, business development and marketing strategy.

Background: Wright consistently celebrates the important role of interior architecture in creating environments that encourage healing and healthy lifestyles. In the past 12 months, she has focused her acumen on an oftenoverlooked population via design leadership within eight new veteran homes, literally from sea to shining sea (Hawaii to Virginia).

Lesson learned in 2020: “Practice Patience – things happen in their right time.”

Surprising fact: “I was originally recruited to ASU to play the flute in the marching band. I ultimately decided to attend ASU, not for the band program, but because they ranked in the Top 3 for interior design programs in the U.S."

Lesson learned in 2020: “As a mom of eight, wife, sister, daughter, friend, volunteer, and professional, I have evangelized a story of PepsiCo’s CEO. She said, ‘work/life is a juggling act, not a balancing act.’ It is impossible to balance everything. The reality is, that something will always be in the air while you are holding onto or attending to something else. I have learned to give myself the freedom to juggle and the freedom to fail, and to know that I can’t do everything, even if I really, really want to.”

TO READ FULL PROFILES OF ALL THE MOST INFLUENTIAL WOMEN OF 2020, VISIT AZBIGMEDIA.COM. 40 | July-August 2020

Professional advice: “Always try new things.

Push yourself beyond your comfort zone, both professionally and personally.”

Lesson learned in 2020: “Listen. This has been very powerful improving relationships and teamwork.”

Surprising fact: “I knew at age 12 that I wanted to be an interior designer. What I didn’t know is how rewarding it would be. And, fly fishing is my happy place.”

ARE YOU IN THE KNOW?

FIND OUT NOVEMBER 2020

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

EAST VALLEY UPDATE

WORTH THE WAIT Development activity taking off in Mesa’s downtown

By STEVE BURKS

P

atience (and a lot of it) is beginning to pay off for City of Mesa officials. The state’s third largest city has long had a reputation for slow, careful development, and nowhere has that deliberate process been more apparent than in the downtown Mesa submarket. The area has had precious little development since the Mesa Arts Center was completed in 2005. However, that trend appears to be changing, and changing fast.

Currently, there are four, large-scale developments underway in downtown Mesa with a fifth, even larger development in the planning and city approval stages.

“I think from city leadership, to the elected officials, to the city staff, they’re thrilled to see the movement on these projects and others in the pipeline,” said Bill Jabjiniak, economic development director for the City of Mesa. “It’s been a long time, but these

MESA TEMPLE

42 | July-August 2020

new developments are so important.

It’s like building blocks to build a very active downtown core, one that is certainly in the process of redefining itself. We’re excited and expect to see great things.”

Those four developments include the Mesa Temple renovation project that the Church of Jesus Christ of Latter Day Saints began in 2018. City Creek Reserve, the development arm of the LDS church, is building Phase I of its large, mixed-use development next door to the Temple. Next to the City Creek Reserve project, Palladium Enterprises is working on The GRID, a mixed-use project that will feature retail, office and multifamily. Just over a block west of The Grid on Main St., Arizona State University is building its $130 million ASU at Mesa City Center campus.

“ASU is going to drive a lot of economic activity just with having students there,” Jabjiniak said.

“Everyone likes to see a very active and vibrant downtown, and in Mesa’s case The Grid and ASU at City Center will

become a hub of innovation and arts and culture and entertainment and education. All of that together creates a vibrancy that I think is important.”

Mesa has been preparing for this influx of vibrancy for more than a decade, expanding the Metro Light Rail line through downtown and out to Gilbert Rd. The city has also invested in improving infrastructure in the area, with upgraded sewer, water and power capabilities. Also, the city has been making street improvements on Mesa Dr. from the Superstition Freeway all the way to downtown.

“We’re doing all kinds of road improvements, road widening and street scape improvements,” Jabjiniak said. “It’s really going to change the dynamic in the entrance to downtown.”

Here’s a breakdown of the four developments in the construction phase in downtown Mesa:

MESA TEMPLE Porter Brothers Construction is in the closing stretch of this massive,

THE GROVE

two-year “refresh” of the iconic Mesa Arizona Temple. The details of the work inside the 75,000 square foot Temple won’t be released to the general public, but landscaping changes on the north side of the Temple opened up the views of the main building. The visitors center has been torn down and will be replaced by a new 18,000 square foot visitors’ center and interactive Family History Discovery Center on the corner of Main and LeSueur as part of City Creek Reserve’s project.

THE GROVE Just west of the Temple, City Creek Reserve has begun transforming part of the historic Temple District neighborhood. City Creek is building on 8.2 acres of property and is in the middle of work on Phase I, which is comprised of 243 apartments and 7,500 square feet of retail space. A 450-stall underground parking lot creates room for 70,000 square feet of open space, which will include landscaped gardens. Phase II will be comprised of a mix of apartments, townhouses and retail space. Phase I is expected to be fully completed by first quarter of 2021.

THE GRID Palladium Enterprises is delivering a true, mixed-use project to Mesa with The GRID. It will feature modern design and takes advantage of an under-utilized

parking structure. The project will have 14,000 square feet of co-working and office space, as well as ground floor retail and dining spaces that will have glass walls and roll-up doors to open the businesses to the street. The GRID will have 196 apartments built on top of the Pomeroy Parking Garage, 75 urban flats, which are micro units of 450 square feet, perfect for students at Benedictine University Mesa, which is just west of The GRID. There will also be 15, threelevel, walk-up rowhouses that can be privately owned.

ASU @ MESA CITY CENTER The last project to get started is perhaps the most dynamic. DPR Construction is in the early building stages of this 118,000 square foot education facility located at Main St. and N. Centennial Way, just east of the City of Mesa municipal offices. The new ASU campus facility will be where students study programs in the Herberger Institute for Design and the Arts, including digital and sensory technology, experiential design, gaming, media arts, film production, and entrepreneurial development and support. The facility will host about 800 students, and include a large exhibition gallery, screening theaters, production studios, a fabrication lab and a cafe. It is expected to be open in time for the spring 2022 semester.

TEMPE NOVUS INNOVATION CORRIDOR The Novus Innovation Corridor in the eastern edge of Arizona State University’s main Tempe Campus is rapidly coming into focus. The Novus Innovation Corridor is a partnership between master developer Catellus Development Corp. and ASU. Construction activity within the 350acre development continues, as buildings within in its Phase III development footprint begin to open in the second half of 2020. Infrastructure is also rolling into the Athletics Village on the former Karsten Golf Course.

Phase III is a 19-acre parcel, bounded

by University Drive on the north, Rural Road on the west, Veterans Way on the east and Sixth St. on the south. Phase III construction includes Class A office space, a multi-use parking garage, multifamily residences, hotels, and additional space for restaurants, shops and services.

777 TOWER AT NOVUS The 160,000-square-foot 777 Tower at Novus is a six-story, L-shaped Class A office building that was designed by DAVIS and is scheduled to open in the summer of 2020. The building, which is being built by Ryan Companies US, Inc., includes 8,000 square feet of ground-level retail space of the initial 27,000 square

ASU @ MESA CITY CENTER

43

EAST VALLEY UPDATE feet comprising the pedestrian-friendly Novus Place retail district.

777 TOWER AT NOVUS

HYATT HOUSE / HYATT PLACE HOTEL A summer 2020 opening is planned for the new 259-room dual-branded Hyatt House / Hyatt Place hotel.

Mortenson is the general contractor for this eight-story hotel immediately adjacent to Wells Fargo Arena. This hotel will be well-suited to visitors attending Arizona State University athletics games and campus events.

TEMPE NOVUS PLACE GARAGE The 1,800-space shared-use Tempe Novus Place Garage will provide parking space for people using office, hotel and retail amenities beginning in the summer of 2020, and will provide an additional parking option for ASU event-goers.

URBAN RESIDENTIAL COMMUNITY Construction is in progress on a six-story, mixed-use, urban residential community with 318 units. Austin, Texas-based Aspen Heights is the developer on the multifamily project, which is projected to open in 2021.

The complex includes ground floor restaurants and shops along Novus Place. Amenities include a rooftop deck, pool lounge, outdoor terrace and a pet park.

WESTIN TEMPE

ON THE HORIZON IN PHASE III

ATHLETICS VILLAGE

Remaining Phase III development will include construction of two additional 160,000-square-foot office buildings being planned by Catellus.

There will also be two residential communities, a potential second hotel, two public plazas and an additional 30,000 square feet of ground-floor retail space in the Novus Place plaza.

Master developer, Catellus is continuing to invest in completing Phase III water, sewer, storm drain, electric, gas and telecom improvements.

East of Rural Road, the existing Athletics Village is also undergoing major changes, as the first wave of converting the former Karsten Golf Course is underway. The ASU tennis and track and field programs will see their facilities moved into the Athletics Village as part of the expansion, this summer, recreation and sports fields for Sun Devil athletics and student intramurals are being installed in a new, world-class village setting.

WESTIN TEMPE While the east side of the ASU campus is getting a lot of new buildings, so is the west side. Downtown Tempe currently has four construction cranes on projects, including the 18-story Westin Tempe, which is located on Seventh Street between Mill Ave. and Myrtle Ave. CAI Investments is the developer on the project, which was designed by RSP Architects and is being built by Beal Derkenne Construction, LLC. The new high-rise hotel will have 290 guest rooms, a rooftop deck and pool, a full-service restaurant and convention space. The project is expected to be completed by the second quarter of 2021.

ATMOSPHERE TEMPE This 530 bed (252 dwelling units) student housing community is rising 44 | July-August 2020

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EAST VALLEY UPDATE CANOPY

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venues, three of which are located on the penthouse level, an indoor pool and wellness center, an event center, a wood shop, game room, on-site physical therapy, a library and underground parking. The project is being developed

by Pacific Retirement Services (PRS) in partnership with University Realty.

CANOPY BY HILTON Sundt Construction completed work on this project in the first quarter, but the COVID-19 pandemic delayed the grand opening until June 16, giving crews ample time to get the facility fully ready for guests. This 14-story hotel is the first Canopy branded location in the Southwest United States. Developed by Driftwood Capital, the hotel has 198 guest rooms and suites, a full-service rooftop pool and bar and a ground-level restaurant.

COLLAB

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up 20 stories at 707 S. Forest Avenue.

Trinitas is the developer of the projects, which is being built by Beal Derkenne Construction, LLC. The project totals 344,462 square feet and features five levels of above ground parking, 4,656 square feet of ground floor retail space, two amenity decks, including a rooftop pool on the 20th floor. The project is expected to be completed by the third quarter of 2021, in time for the 202122 school year.

MIRABELLA AT ASU McCarthy Building Companies 46 | July-August 2020

is still hoping to complete this transformative mixed-use, seniorliving facility by the end of 2020.

Exterior work is close to completion and interior work is moving along at this 613,992 square foot project at University Dr. and Mill Ave. Mirabella at ASU blends a senior community lifestyle with the learning and recreational environment of Arizona State University, delivered with resortstyle amenities in spacious penthouses and apartments ranging from 751 square feet to 2,665 square feet. The 20-story tower includes four dining

This new, 58,647 square foot medical office project is in the heart of the rapidly developing area around Dignity Gilbert Mercy Medical Center. Mercy Medical Commons II, designed by Ware Malcomb is the largest medical office project in the area and Balfour Beatty US is currently nearing completion on the project.

Chicago-based MedProperties Group is the developer and had locked up a 20,000 SF lease agreement from The CORE Institute before construction began in November of 2018. Colliers International in Arizona is the leasing broker on the project.

SOLTRA AT SANTAN VILLAGE Space in and around the San Tan Mall in Gilbert is filling up, and one of the largest developments in that area is the Soltra at SanTan Village apartments. Leon Capital Group is the developer behind this 380-unit luxury multifamily community that sits at SanTan Village Parkway and Ray Road. McShane Construction Company is the general contractor and Todd & Associates was the design firm.

Completion is expected to be in the second quarter of 2021.

SOLTRA AT SANTAN VILLAGE

ELEVATION SANTAN Vedura Residential has two multifamily projects in the San Tan Village Mall market, the largest being the 297-unit Elevation SanTan, which is located along SanTan Village Pkwy. and Boston St., just south of Williams Field Rd. The complex is a highly-amenitized, urban community with a prime location in the heart of Gilbert’s largest retail market. Todd & Associates was the architect on the project, which is being built by MT Builders.

NEW SQUARE CHANDLER

ELEVATION AT THE VILLAGE Vedura Residential is also the developer at the 214-unit Elevation at the Village. Construction is scheduled to be completed by late 2021. Elevation at the Village will be west of SanTan Freeway (202 Loop), and on San Tan Village Parkway between Loma Vista Street and Coronado Road. Todd & Associates Inc. is the architect of record, while MT Builders is the general contractor.

COLLAB LGE Design Build and its development arm, Creation, wrapped up construction on The Collab in Gilbert’s Heritage District in late May. The four-story, 40,500 square foot mixed-use project will have dining, retail and office users moving in during Summer of 2020.

CHANDLER NEW SQUARE CHANDLER Spike Lawrence Ventures has delivered

a new, mixed-use center in downtown Chandler. New Square pushed back its initial grand opening from March to June due to COVID-19. Located on 4.7 acres along Arizona Ave. and Chicago St., the development includes a 110room Hilton Garden Inn (the first hotel to be built in downtown Chandler in over a century), a 50,000 square foot Class A office building and a 10,000 square foot retail building that is home to The Stillery, a Tennessee-based restaurant, bar and music venue. The office building has secured tenants like Great Western Bank and WellSky, while DC Steak House is already up and running in a 5,200 square foot location on the ground floor of the office structure. The development also

includes a five-level parking structure and ample outdoor event space. Layton Construction performed the work on the office and retail portions of the development, and McCarthy Building Company built the parking structure.

SOLLID CABINETRY LGE Design Build is in the early phases of delivering a manufacturing and warehouse space for SOLLiD Cabinetry, a Tempe-based company that builds semicustom kitchen, bathroom and office products. The project is located along Germann Rd. in the Chandler Municipal Airport submarket. The building will be 251,066 square feet with office, warehouse and manufacturing space all under one roof.

47

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2020

ABA

Chairman’s Message Puente leads ABA through challenging period for industry

By STEVE BURKS

D

an Puente founded DP Electric in 1990 and has worked and thrived here in the Valley in his 30 years in business.

Puente has been involved in the Arizona Builders Alliance for the past 19 years, and has served on various committees as well as the ABA Board of Directors for six years until finally getting his turn in the chairman’s seat. Puente’s biggest passion in the industry is workforce development and he is very involved in the Build Your Future Arizona (BYFAZ) initiative that was launched in 2019. As chairman, Puente’s goal was to develop a cohesive workforce development model that would link not only the BYFAZ initiative, but other programs industry groups and companies were utilizing.

“The problem with the workforce development effort in the past was that there’s always been all of these different entities doing something,” Puente said. “The problem was it was just so fragmented. Then when BYFAZ came around we thought, ‘OK, here’s one voice, maybe we can get the whole industry around that.’ That’s where I felt that the ABA would come in and support that, and we did get some traction with that and were working on that, but then the COVID thing happened and we all paused and focused on that.”

Like the rest of the world, the construction industry had to focus

50 | July-August 2020

on working through the issues surrounding the COVID-19 pandemic and coming up with ways to stay safe on the job. AZRE Magazine sat down with Puente to discuss how the ABA provided solid guidance for the industry and how the pandemic has challenged even the most experienced industry experts.

AZRE: What have been the most unique aspects of dealing with the COVID-19 pandemic?

DP: In a contract, there is a Force

Mejuer Clause and I think this is the first time that that clause has been discussed. In reality, this is something that is uncontrollable and unforeseen and it’s something you really can’t be responsible for, to a large degree.

This is definitely a first. The scary part, initially, was the unknown. Are we all going to shutdown, are we all not going to work, what’s going to happen? Naturally that fear is there, that uncertainty is there and then you just take it day by day and see what’s happening. Once we were deemed essential, I knew that there was hope for our industry. I’m also happy I live in Arizona. I can’t even imagine what the restaurant industry is going through and how large corporations like Sweet Tomatoes just shut down because their model doesn’t fit the current environment. I can’t imagine where some of those people are.

AZRE: What role does the construction industry play in helping the economy recover from the COVID-19 economic slowdown?

DP: I think that we’re fortunate to be in this industry and I think, as a whole, people don’t realize how impactful the construction or real estate industry is to the economy.

If you look at the top producers in the economy, I believe construction is No. 3. Healthcare is No. 1 and I

ABA I think in general, construction and the real estate world is a huge driver in the national economy. I don’t think people realize that until you really dissect that and realize that these industries are intermingled.

– Dan Puente

believe technology is up there at No. 2.

Healthcare; we’re building hospitals; technology; we’re building data centers; we’re supporting those other industries that are right above us. I think in general, construction and the real estate world is a huge driver in the national economy. I don’t think people realize that until you really dissect that and realize that these industries are intermingled.

I will say, from our side, there is a huge sense of gratitude to be working in this industry because we’re all still working and we’re considered essential.

We all feel very blessed and fortunate that we’re still working, and that has a positive effect on your psyche.

AZRE: Why is ABA leadership and guidance so valuable for companies during the pandemic?

DP: I think what’s unique about the ABA is the ABA is comprised of a bunch of different business leaders from a bunch of different environments and sectors. There are a lot of great minds that are coming together to help educate and inform. The message comes from that environment and it speaks to that environment, so it is in touch with the audience. I’m on the board, I’m speaking on behalf of my industry and my team, there’s a general contractor on the board, he’s 52 | July-August 2020

speaking from his viewpoint and same with an attorney. When you get all of those different minds and everybody is pretty engaged and not afraid to voice their opinion and we have discussions and we all get to a place and we pass the baton over to (ABA president) Tom Dunn or the chairperson.

Our board meetings are how we can support our members during this time and not necessarily about workforce development or education programs or whatever the case may be. I think it’s important and I think it’s well-received and I think the information that coming out of these meetings is solid.

AZRE: How has your experience with the ABA evolved over the years?

DP: I started out as a learner and I was just trying to learn and educate myself and also, put myself in the same room as my peers and my competition or my clients, whatever the case may be.

Although you are getting educated, you’re also building relationships, and I think that is one of the more valuable things about the ABA is the community type spirit that is there.

I’ve been involved for 19 years and I really feel it is an extension of who we are as a company. We use it for training and education and I did it myself, personally, and other leaders in our industry did as well and we do

it through our organization. If you appreciate the value of mentorship and what’s given to you and you give that back, then it’s only natural to be that guy who’s sharing some of his lessons learned or his successes, to help someone else come up. That’s an obligation that I feel strongly about, giving back.

AZRE: How does the ABA help foster a competitive, yet fair and civil, business environment for construction firms in the state?

DP: It’s a large industry and I think that the ABA members are at the top tier of contractors and subcontractors.

That’s why you don’t see any dirty tactics. I can remember two or three different situations where someone did something inappropriately and generally, it’s like a small town and that gets around and it doesn’t bode well for you or your reputation.

Everyone is watching and everyone knows that. There is just a common respect. I sit in the room with a lot of my competition and we get along great, but that doesn’t mean come bid day we’re going after a job we’re going to be aggressive in our approach and so are they. If they win it, great, if we win it, great. In some cases, we even help each other out by sharing labor and doing different things like that.

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ABA

Safety is essential W

hen the COVID-19 pandemic began working its way across the globe, it was certainly headed towards the United States and to our home state of Arizona.

National efforts were made to define construction as an essential piece of the economy and of the health and welfare of the entire country. The discussions about the successes of industry advocates to protect the financial well-being of commercial construction have occurred. However, the number one priority of those advocates has always been the fact that the safety of the worker is essential.

Safety is essential.

Many on the front lines working on projects that could not be halted needed to be protected. The work could only continue if the jobsites and the workers had policies and procedures in place to protect all that came into contact with others at that site.

Construction firms have rigorous and strict safety guidelines in place simply because the nature of construction.

The industry has more than 680,000 employers with over 7 million employees creating nearly $1.3 trillion worth of structures in the United States each year.

Commercial construction professions have long understood that emphasizing safety not only protects their employees, but also the financial ability of the firm to fulfill their contracts on a timely manner within budget. It’s

54 | July-August 2020

Tom Dunn ABA

estimated that for every one dollar that is invested in safety training, programs and procedures, 4 to 6 dollars is saved. The reason that this is being pointed out is that not many industries were ready for a pandemic to hit our shores. But, the American commercial construction industry had invested heavily on safety programs and professionals and they were ready to protect our workers.

Collaboration is key.

The Arizona Builders Alliance (ABA) is the Arizona chapter of two national trade associations: the Associated General Contractor of America – Building Division (AGC) and the Associated Builders and Contractors (ABC). Both of these national associations are the leaders in our industry for advocating for our entire industry regarding regulations, political policy as well as advocating for effective safety policies. They have

significant investments in staff that assists our members with getting the best information and most up-to-date programs to help keep our workers safe.

This was key to our ability to provide the membership and entire industry updates when details and information was rapidly changing daily.

The AGC and ABC not only provided clear guidance from the Center for Disease Control (CDC) regarding construction best practices in protecting the workers and jobsites from COVID-19, the other state chapters throughout the country that were experiencing issues weeks in advance lessened the unknown about what expectations and the effect on the industry could be.

Not only the relationships developed nationally, but local collaboration helped as well. Our sister association, the Arizona heavy highway division of the Associated General Contractors (AZ AGC) teamed with our ABA safety committees both in Phoenix and Tucson and created weekly virtual meetings discussing best practices for the industry throughout the state. Where to get much in demand supplies, solutions for challenging jobsites were discussed, ultimately best practices protecting the worker made it to the jobsites.

Sharing best practices to entire industry protects all That brings us to the most important point to be made regarding safety.

All of these entities, the Arizona Builders alliance, the Associated General Contractors, the Associated Builders and Contractors, and those that collaborated with ABA, made it a priority to get the word out to all contractors throughout the state.

For us to protect our essential status and our essential workers, sharing COVID-19 best safety practices with all workers and contractors was and continues to be essential. The CDC updates the COVID-19 best practices regularly and please continue to be vigilant regarding the safety of our jobsites, our workers and their families!

Tom Dunn is the executive director for the Arizona Builders Alliance.

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ABA

Builders Roundtable A

year that began with so much promise for continued growth in Arizona turned into a year where businesses just wanted to keep their heads above water. The COVID-19 pandemic created a huge wave of uncertainty in the national economy and in many industries, the affects will be felt throughout 2020 and even beyond.

In Arizona, the construction industry was deemed an essential service by Gov. Doug Ducey, allowing companies to continue their work on projects around the state. However, due to an increased focus on worker safety, companies had to revamp their safety procedures and establish a new way of working.

AZRE Magazine sat down with six executives from general contractors and subcontractors in Arizona to

56 | July-August 2020

find out how they managed their way through the early stages of the pandemic, how the Arizona Builders Alliance helped guide the industry and how they feel the industry will ultimately lead Arizona through this unprecedented economic slowdown.

Lorraine Bergman (LB), CEO, Caliente Construction Chuck Carefoot (CC), Senior Vice President of Construction for the Southwest Region, Ryan Companies US, Inc. Jamie Godwin (JG), President, StevensLeinweber Construction, Inc. Steve Grauer (SG), Western District Manager and Vice President, Hensel Phelps Dan Puente (DP), CEO, DP Electric Jeff Wheelock (JW), President, Spectrum Mechanical and Service Contractors, LLC

AZRE: How has the current economic state of affairs affected how your company is doing business?

CC: At Ryan, people are our most important asset and keeping our jobsite safe is always our No. 1 priority, which is why we started implementing heightened hygiene and safety protocols in February on our jobsites. Our team established rigorous cleaning schedules, mandated social distancing, posted awareness signage, held meetings to coordinate best practices and supplied masks and gloves among other CDC required activities. Our efforts are improving efficiency, quality, and overall safety on our jobsites. I expect many of these best practices will become the norm on our jobsites.

Lorraine Bergman

Chuck Carefoot

JW: The Industry has lost a certain degree of communication and productivity as a result of CDC guidelines requiring social distancing and fear of being affected with COVID-19. Financial burden will be recognized over the next few months.

As a result, adjustments to conducting business will need to be put in place until consumer confidence is restored and the economy recovers. There will be costs associated with productivity losses, safety products, tasks and modified work procedures due to the safety measures that have been, or will be, implemented.

We have also adopted an option to work from home during the past few weeks and we have started to position ourselves to facilitate our office staff to work from home when necessary. We have adopted all of the new rules regarding the selfcheck for symptoms and requiring days off if any symptoms are present and/or if tested positive for COVID-19 JG: The biggest difference between the last downturn and this one is timing.

The Great Recession was a gradual slowdown that, eventually, brought most construction outside of public works projects to a halt. The impact of COVID hit much faster – it feels like almost overnight – but because the construction industry was designated an “essential service” in Arizona, the majority of our projects were able to continue on schedule and we’ve been able to protect a steady pipeline of future work.

I will be closely watching the market this summer and fall. The fact that tenants were not able to actively tour space in March and April has created a void that we may see the results of during the second half of the year. We’re still seeing a lot of optimism for groundup construction, particularly in the

Jamie Godwin

Steve Grauer

industrial sector, but we’re waiting to see if the inactivity this spring will create gaps in tenant improvement projects in the coming months.

LB: Caliente recognized the impact that COVID-19 was going to have early-on and we were very proactive in ensuring the safety of our employees and the viability of our business operations.

“Social distancing”, business continuity plans for our owners, enhanced safety policies and procedures for

“It has been difficult not to engage with the industry and community personally like we once did. I am looking forward to our team returning to the office and for some social activity to resume.” – Dan Puente

our office and field operations were implemented early. We were able to set employees up to work remotely and now have a mix of people who work in the office or from home. Of course, all our superintendents are still on jobsites, but they also have “virtual” work capabilities for some of their tasks. Unfortunately, we have had some employees exposed to COVID and we have been very proactive in completing risk assessments, making sure testing and isolation measures are taken and being very transparent to others by notifying them of the risk and recommended steps to ensure safe action is taken to prevent the spread of COVID 19. Fortunately, none of our

Dan Puente

Jeff Wheelock

employees nor family members have had a reported positive case.

The biggest change felt by all, is the personal interaction that has helped us build our success. Caliente is used to a high level of collaboration between our team members, our clients, subcontractors, and consultants. Not having everyone in the office and not being able to interact as freely is hard on us as humans and team members, but we are doing our best to maintain our relationships.

SG: As a company, we are following all CDC guidelines and providing updates on a COVID-19 tab on our employee website. We are also abiding by Governor Ducey’s Executive Order and updates then communicating with our employees and trade partners. Governor Ducey gave our industry a “gift” when he deemed construction an essential service. This allows all 175,000 construction workers in our state the ability to keep working.

Our people and project teams are practicing responsible social distancing, wearing masks and other proper PPE, washing hands as well as non-project site specific staff are working from home. We are doing more video conferencing and learning how to communicate and share information with our team through technology in many new ways we did not use before.

AZRE: Describe the guidance and assistance that ABA has provided during this crisis and how valuable it is to you and other ABA members?

DP: The ABA is the Arizona chapter of two national associations the Associated Builder and Contractors (ABC) and the 57

ABA Associated General Contractors (AGC) these organizations have important political connections across the US. This relationship has allowed the ABA to get the most up to date and reliable information to our members. In addition to the national presence, there is a dynamic group of business leaders within our community that are sharing best practices and resources to help our industry navigate this unprecedented time.

CC: The ABA has provided general guidance, helpful articles and webinars for our industry which has been a great resource during this challenging time.

Having ABA as a resource that directly focuses on how to navigate through this crisis within the construction industry is invaluable.

LB: The ABA has been outstanding.

They were instrumental in working with our Governor to designate construction as an essential industry and after achieving this they lead the way in helping construction companies navigate the “new normal.”

The informational webinars they have put together on short notice have been very helpful, informative and have provided perspective for the AEC industry. It has been great to see the AEC community come together and share ideas, thoughts, and inspiration and ABA has been the conduit to bring all of this together.

SG: Erica Lange and her team do a fantastic job of creating timely topic webinars and informative video conference calls the members can join and listen in on. There have been two specific video conference/webinars wherein the President of the ABA Dan Puente and other Board Members provided insight and answered questions regarding COVID-19 protocols, proactive measures and shared some best practice ideas.

Additionally, there were a couple of webinars focused on the economy, outlook and impact COVID-19 may have. The guest speakers from Wells Fargo, Sage Policy Group, and Ken Simonson of the AGC have been a great resource for the membership to see where we have been over the last two 58 | July-August 2020

months and where we might be headed going in to the summer months.

AZRE: What advice is being shared by your fellow ABA members on how they are navigating these challenging times?

CC: Overall, constant-communication, safety protocols and staying informed have been three areas ABA members are hyper-focused on. Members have shared how to cope during this time, hot topics to know about and implications for construction. This membership activity helps our team stay aligned with expectations and proper procedures.

JW: Some of the most valuable advice is to keep thinking forward, keeping in mind that this situation, while it will alter how we think about projects

“We need to take advantage of this opportunity to, adjust processes to be prepared for future unforeseen issues, invest in quality talent and prepare our company for the bright future ahead.”

– Jeff Wheelock

and the health / safety of our team members, will eventually subside and construction will resume. We need to take advantage of this opportunity to, adjust processes to be prepared for future unforeseen issues, invest in quality talent and prepare our company for the bright future ahead.

JG: Collaboration is definitely happening in our industry. I’ve had calls with executives from many competing construction companies to compare notes on things like PPP, protective equipment and just generally what we’re seeing from a deal and jobs perspective.

We’ve also been sharing our workforce resources in ways that we’ve never done before. There was a recent scenario where a colleague needed someone with a specific certification to assist on a site-

specific requirement. I had that resource and was able to help.

LB: Construction seems to attract people with amazing work ethic and determination, which is what we need to get us through crisis. There is also a great sense of community within the industry and so many firms are working to share their stories, and information. Despite construction’s reputation for sometimes being too traditional and not always eager to change, the current situation has really shown the resiliency of the industry and their eagerness to figure out a better way to do things. In the coming months and years our industry will continue to adapt, embrace new technology and be aggressive in finding innovative ways to renovate and build healthier environments. We will be more efficient as “social distancing” measures slow down our usual processes and will continue to provide quality and exceptional outcomes.

AZRE: What do you feel will be the lasting impact that this pandemic has on the construction industry?

CC: Several new safety protocols, crisis management plans and even technologies have come out of this pandemic that I believe will have a lasting impact on the construction industry. Supply chain monitoring and contingency plans will be enhanced, and procurement of materials will be better planned. Lastly, contractors and suppliers will be recertified more often to ensure financial capacity.

DP: I believe that this year we will continue to operate under these added precautionary measures as the “New Normal” until a vaccine is developed or another way to mitigate the risk is discovered. These changes will likely decrease the need for office capacity as companies have begun operating remotely and many have realized that some parts of the business are just as productive from home as they were in the office. It is also apparent that certain economic sectors will have a tougher road reopening and will be required to change their business

ABA models to continue to be profitable in this new environment. The risk is just too large not to consider the effect of another pandemic in the future.

SG: Several impacts will not go away soon. The first is fear of the unknown and second guessing it.

This fear affects so many aspects of a person’s life if they allow it. Secondly, financial defaults, both personal and business. We may see numerous small companies, suppliers and trade partners go out of business and some will change the way they do business to be more fiscally conservative to weather future storms. Individuals will change their purchasing decisions thus creating what economists are starting to term “behavior economics”. Behavior economics will have a ripple effect in what we buy, how much we buy and how often we buy in the future.

This will also create stronger trends in online purchasing. Lastly, I think it will have a huge impact on pent up demand from capital markets that were strong and vibrant as COVID-19 hit the scene. This pause we have been going through will create a stronger demand for future projects in certain vertical market segments while a few others lag due to fear and changes in behavior as previously mentioned.

AZRE: Have you seen a slowdown in the amount of work your company is doing and the amount of new projects you are bidding on?

LB: A few of our projects have been put on hold and a couple of small projects have been cancelled. Some projects were temporarily put on hold but have since started back up. We are still busy estimating and responding to RFQs but perhaps not at the pace we would have expected when 2020 began. Interestingly, we are seeing some clients who have not been very active in recent years, coming out with some significant projects, so we are looking forward to those. Caliente is fortunate to have a diverse mix of clients and have many clients for whom we perform continual work. While some of this activity has slowed as our clients navigate their positions in this 60 | July-August 2020

environment, we are still working on projects for these clients.

AZRE: How confident are you that the construction industry will lead the way in helping Arizona’s overall economy rebound?

in certain vertical markets such as manufacturing, healthcare, data centers and government work moving forward.

The fact that we have been stable and consistent through the pandemic with little change to construction job loss has served us well through it and to lead out of it into a strong economic rebound.

JG: The construction industry is one of the bright spots of our economic engine right now. We continued through the shutdown, which kept people employed and allowed the businesses that support construction to continue to operate positively. I expect that momentum will continue and I also expect our recovery will happen relatively quickly. The fundamentals of this downturn versus the last are completely different.

JW: The construction industry will have a major role in helping Arizona’s economy rebound. When people return to work, new job opportunities are created, consumer confidence in the economy is restored, manufacturers and related industries implement safety policies for COVID-19 to ensure employee’s feel safe in the workplace.

We believe there will be construction opportunities created to facilitate social distancing for COVID-19 as well as any other possible virus.

“In the coming months and years our industry will continue to adapt, embrace new technology and be aggressive in finding innovative ways to renovate and build healthier environments.”

DP: I am confident the AEC industry will help lead the way in Arizona’s economic rebound. As an industry, construction is always adapting to change, innovating, and thinking outside the box. I have personally been through several recessions and am always impressed by how our industry can quickly adjust and adapt to new challenges through active leadership.

There is always construction and it is important to be diversified in your capabilities so your company can navigate to different sectors that continue to thrive despite current challenges. The real estate industry has always been one of the largest drivers of our economy and is directly tied to the success of other large drivers such as healthcare and technology.

– Lorraine Bergman

LB: The construction industry has in many ways, been the backbone of the Arizona economy and construction will be hugely important as we return to normalcy. There are going to be changes in how every business operates and how work, entertainment and shopping environments will look in the future. Construction firms will be the ones to reconfigure and build those new spaces. Additionally, many people are predicting a huge economic boom for the southwest, with a large growth in population and construction will as usual be at forefront of that growth.

SG: Strongly confident. The construction industry has been busy working through the COVID-19 pandemic completing contract obligations on our projects. There will be pent up demand

CC: I am extremely confident.

Arizona’s economy is more diverse than ever. The continued migration into Arizona will support our diverse and capable business environment to flourish. Construction will enable Arizona’s growth creating direct jobs, income and tax revenue for the state while driving demand for building materials, heavy equipment and labor.

Our industry is known for our great impact on the economy and I am very confident that we will help pave the way to enable the overall expansion of Arizona’s economy.

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ABA

SAFETY'S NEW LOOK How contractors can ensure worker health and safety in a COVID-19 world

By DENNIS TSONIS

U

nsafe conditions on a construction site can be costly — both in terms of human life and dollars.

One out of every five, or 20 percent, of U.S. worker deaths occur in the construction industry annually, according to the Occupational Safety and Health Administration (OSHA).

And just one fatality can cost nearly $1 million in hospital expenses.

With the ongoing COVID-19 pandemic impacting all aspects of daily life, contractors and construction sites have even more safety concerns when it comes to protecting their workers.

From instituting social distancing guidelines to expanding the use of face masks and other personal protective equipment (PPE), the current health crisis has forced contractors to take a fresh look at safety and what it means now and in a post-COVID-19 future.

COVID-19 REMAINS A CONCERN ON CONSTRUCTION SITES During Arizona’s statewide quarantine, construction was 62 | July-August 2020

considered an essential service, so contractors didn’t experience operational changes or closures at the same level of many other industries.

Even so, as things reopen in Arizona and elsewhere, the novel coronavirus and COVID-19 remain concerns on the construction site.

For example, an outbreak at Denver International Airport’s Concourse A-West Gate expansion project affected 14 employees from an insulation company, and recent testing confirmed 15 active COVID-19 cases on the construction site of Allegiant Stadium in Las Vegas.

Until a vaccine is available, contractors must be prepared to handle cases of COVID-19. Let’s explore some considerations contractors should keep in mind to ensure continued health and safety of their workers.

SOCIAL DISTANCING, FACE MASKS AND PPE Instituting policies for social distancing, face masks and other PPE is perhaps the most important action

contractors can take to prevent the spread of COVID-19 on the jobsite.

Social distancing calls for individuals to remain a minimum of six feet from others. This may be achieved by limiting presence on Dennis Tsonis or around common conveyances such as hoists and elevators or instituting staggered start times for different crew members.

For those times when social distancing proves elusive or difficult, contractors should turn to enhanced PPE such as face shields or masks.

OSHA recommends face masks that cover workers’ noses and mouths to prevent virus spread, but some state and local jurisdictions have gone further to require employeeprovided masks for workers who are unable to remain six feet apart.

Contractors will want to stay abreast of recommendations or guidelines

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ABA wherever they operate.

Whatever approach contractors take with masks, they should ensure expectations are clear and adhered to at all levels of the organization. If individuals in leadership roles such as managers, supervisors and foremen don’t wear face coverings or masks, that undermines the safety message and virtually guarantees other employees won’t wear masks either.

PREVENTION PLANNING Beyond social distancing and wearing masks, there are several things contractors can and should do to limit and mitigate the potential for spreading COVID-19 around their jobsites: • Review guidance: Be sure to stay on top of and review any guidelines from agencies such as the CDC, OSHA, the Department of Labor and other locally relevant requirements.

• Jobsite access: Evaluate and consider limiting access to jobsites and possibly instituting enhanced security measures to keep sites clear of anyone who doesn’t need to be there.

• Screening: Determine whether to screen employees, workers and other visitors with temperature checks, questionnaires or other methods of testing for possible infection. Also be sure to designate personnel to perform these checks, whether that’s a safety manager, nurse, paramedic or hygiene subcontractor. The CDC and EEOC have issued guidance for employers who may want to implement temperature screenings. Keep in mind that screenings conducted by an employer are considered medical information, therefore privacy is required. Also, temperature checks do not address asymptomatic employees.

• Cleaning: Budget for and obtain additional cleaning supplies to accommodate increased decontamination of workspaces and sites including “high-touch” areas to limit the potential for virus spread.

• Reporting: Establish protocols for reporting any potentially infected or sick individuals to necessary third parties including business owners, local health departments, unions, fellow coworkers and family members.

• Return to work: In the event an employee does become ill with 64 | July-August 2020

COVID-19, contractors will want to create clear procedures outlining how the sick individual can return to work. CDC guidelines include several potential measures to help employers navigate employees who recovered from COVID-19 to return to work.

While the above list includes a number of issues and considerations to keep in mind, it is not exhaustive and may not address all potentialities related to specific sites or situations. Contractors and construction firms should consider site-specific and company-specific issues while remaining flexible to accommodate changes to government and industry guidance.

If individuals in leadership roles such as managers, supervisors and foremen don’t wear face coverings or masks, that undermines the safety message and virtually guarantees other employees won’t wear masks either.

SUSPECTED OR CONFIRMED CASES OF COVID-19 Even with strong prevention processes in place, contractors still must be prepared for the possibility of dealing with a suspected or confirmed case of COVID-19 in their workplace or construction site. Here are several guidelines and considerations to keep in mind in the event of a confirmed case: • Separate and send home: Employees who show symptoms when they arrive at work or become ill during the day should be immediately separated from others and sent home.

Individuals suspected of being sick with COVID-19 should adhere to CDC recommendations.

• No need to shut down: The presence of an individual suspected or confirmed to have COVID-19 does not require an immediate shutdown of workplace, facility or construction site.

• Disinfect work areas: Any areas used for prolonged periods of time by the infected individual should be cleaned and disinfected. If possible, wait 24 hours before disinfecting to minimize exposure potential for others. However, if waiting 24 hours is not feasible, wait as long as possible.

During this waiting period, open outside doors and windows to increase air circulation in these areas.

• Inform: If an employee is suspected or confirmed to have COVID-19, inform other workers and determine who else may have been exposed, assessing the need to take additional precautions. Most workplaces should follow the CDC’s Public Health Recommendations for CommunityRelated Exposure. These include maintaining social distancing and monitoring for COVID-19 symptoms.

COMMUNICATION IS KEY As is the case when implementing any type of change, communication and education are of vital importance to ensure companywide buy-in and compliance on prevention policies for COVID-19.

Through regular toolbox talks or other employee meetings, managers and supervisors should reinforce the importance of COVID-19 prevention, reminding employees that while some of the precautions may seem overreactive or inconvenient, the novel coronavirus spreads quickly and a seemingly safe site one day could rapidly become a hotspot a few days later.

Nobody believes they will be the ones to get sick. But it may happen and ultimately everyone is responsible for their part in helping keep themselves and their coworkers safe while on the job.

Dennis Tsonis is a senior vice president with Lovitt & Touché, A Marsh & McLennan Agency LLC Company. He oversees the construction practice, offering specialized expertise in business insurance and risk management solutions for contractors.

More at lovitt-touche.com.

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ABA

Students participating in the ABA Skills USA Arizona Region 6 Construction Competition held in January 2020 at Catalina High School.

Building the next generation ABA’s Southern Arizona workforce development efforts gain momentum

By ALYSSA TUFTS

W

orkforce development in the construction industry in Arizona has seen great growth in the last few years. Those efforts have gained traction and financial backing with the Build your Future Campaign that launched in 2019 that increases awareness of construction careers through recruitment, education and local partnerships to develop the next generation of construction professionals. In addition, the Arizona Builders Alliance (ABA)’s Southern Arizona efforts include programs and involvement with the University of Arizona and Pima Community College in Tucson, in addition to tours of ABA member companies and mentoring opportunities through discussions

66 | July-August 2020

with ABA members.

Tim Bee, director for Southern Arizona, ABA, said a few years ago the ABA was working in various areas of workforce development and working with UArizona, Pima Community College and Pima JTED (Joint Technical Education District) programs. “As a result, we ended up pulling those efforts together and forming the workforce development committee,” Bee said. “Since that time things have taken off with our efforts to work with our instructors, our public institutions on creating opportunities for students to engage with industry and learn about career opportunities for them and pathways to career opportunities whether that be right out of a JTED program into a community college program or university program.”

A few programs that have seen great success are the ABA Skills USA Arizona Region 6 Construction Competition held in January 2020 at Catalina High School sponsored by 12 ABA members in which more than 150 students participated in construction technology, carpentry, electrical, masonry, cabinetry and sheet metal events; ABA JTED Explorers where an

ABA member company hosts over 50 students twice a year to tour projects in Southern Arizona to gain exposure to construction sites and learn about safety, the project and a construction professional’s daily responsibilities; and Southern Arizona Construction Career Days, one of the region’s largest events targeted towards attracting students to careers in construction, took place in November 2019 in Tucson with close to 4,000 middle school and high school students who participated.

The ABA also awards scholarships, UA Lloyd Scholarships named after Brad Lloyd chair of ABA’s Lloyd Scholarship Committee and vice president of Lloyd Construction Company; the UA CAPLA Portfolio Project led by Rick Bright chair of ABA’s UA CAPLA Scholarship Committee and owner, Bright Design Associates, which awarded eight scholarships this past year; the JTED Construction Advisory Board and ABA’s AGC UArizona student chapter where students meet and develop relationships with ABA members through informational discussions, presentations and networking opportunities.

Mike Goodwin, ABA Workforce

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ABA Development Committee chair and senior group operations manager, Climatec, said the goals of the various programs and subcommittees are to help students live up to their full potential and spark interest in the construction industry in high school or college.

“In the short term we want the ABA’s workforce development program to be able to take every young person who wants to get into construction, find them a job, be able to put them to work and I think that’s important,” Goodwin said.

“We also want to get in front of as many young people as possible to increase awareness that we know college is not for everybody and you don’t have to go to college nowadays to make or have a great career, there’s plenty of technical opportunities, but we need to change the stigma of construction being an up-anddown industry and not being able to be employed all the time,” Goodwin said. In addition to stability, Goodwin said positions in construction pay well and young professionals have more opportunities to advance in a specialized area faster than other industries.

Bee said the construction industry in Arizona “has always been one of our strongest industries and in the past year was one of the largest contributors to the state’s growth and revenue,” and remains as such amid COVID-19, as construction was deemed an essential service. Bee said he believes the construction industry will be critical to Arizona’s economic recovery. “There will be job opportunities and if the state is able to invest in infrastructure as the state recovers then that would be a good opportunity for the construction industry to continue to grow and provide stability to our economy,” Bee said.

Through the years, Goodwin said there have been students who have attended Construction Career Days or participated in the Skills USA competition who are now project managers in the field and return to give advice to students at Construction Career Days about their career.

“There is a UArizona alum who is now an engineer for Sundt Construction 68 | July-August 2020

Top: Students participate in an electrical event at the ABA Skills USA Arizona Region 6 Construction Competition held in January 2020 at Catalina High School. Below: The ABA JTED Explorer tour in March 2020 visited the UArizona Student Success District project hosted by Sundt Construction where students toured renovations underway in the Main Library, Bear Down Gym and a new building under construction.

who was in a class where I did a guest lecture, and she really enjoys working for Sundt and is helping attract other women into the field,” Goodwin said.

“She wasn’t sure if she wanted to go into construction and she completed an internship with Sundt and enjoyed it and stayed, and she also assists with the ABA AGC UArizona chapter.”

In the long-term, Goodwin said there’s going to be an increase in students going into CTE or JTED programs, in addition to students earning an associate degree or technical certificates in construction at Pima Community College.

“We also have the Del E. Webb

School of Construction at ASU where we’re turning out over 150 construction engineers a semester and those graduates are highly sought after throughout the country,” Goodwin said. The increasing number of new graduates will help supplement the current professionals who will be retiring over the next 10 years to keep up with project demand.

“It’s a daunting task because if we don’t get the word out and attract that talent now, we’re going to be short in 10 years so letting students know, ‘it’s a great time to get into the industry and there’s going to be huge opportunities in front of you.’”

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ABA

ABA Member Projects

T

he Arizona Builders Alliance members had a banner building year in 2019 and that is continuing through 2020 and beyond.

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

70 | July-August 2020

Acoya Scottsdale Troon Developer: Cadence Living & Ryan Companies US, Inc. General Contractor: Ryan Companies US, Inc. Architect: Ryan A+E, Inc. Location: 14055 E. Pinnacle Peak Way, Scottsdale Size: 198,000 SF Start/Completion: November 2018/Fall 2020 Subcontractors: Thoma-Holec Design, Red Oak Plumbing, Western Underground, Hilty’s Electrical Contracting, Integrated Masonry, Advanced Construction SW (wood framing), Breinholt Demolition, Chas Roberts

HVAC, Crown Custom Millwork, Primera, Integrated Lath and Plaster, Apodaca Wall Systems, Sargon Masonry, Sound-Crete, Westar Environmental, Native Resources Project Description: Situated between Pinnacle Peak and Troon Mountain, this senior living community—the second created by Ryan Companies and Cadence Living—is on track for completion in Fall 2020. In addition to boasting 360-degree magnificent views, Ryan’s architecture + engineering team designed the exterior to complement the area’s charming Santa Fe architecture. The community includes 135 luxurious residential units with contemporary finishes and design details.

Behavior Health Hospital Developer: Caliber Development General Contractor: Caliber Development & Construction Architect: Interior Architect - Bricon Studio, LLC / Exterior Architect - Tomecak Design Location: 1346 East McDowell, Phoenix Size: 62,592 SF Value: $23 million Start/Completion: August 2019/Q3 2020 Subcontractors: A1 Desert Electric; Alcal Specialty Contracting, Inc.; All Things Metal; Beach Products; Blue Fox Group; Byrne Painting; Clear Cut Concrete; Clear View Glass of AZ; Elite Landscaping and Sprinkler; Deal Roofing Co.; Kings Mechanical; KO’s Landscaping LLC; Last Detail; LeBlanc Building Company; Melvin Concrete; Metro Fire Equipment; Mirasol Development; Nolin Fire Sprinklers, Inc.; Phoenix Masonry; Quality Floors; Ryan Mechanical; Sun Door and Trim, Inc.; Sunland Asphalt; Viking Specialty Contracting Project description: Behavioral Health Hospital was acquired by Caliber in August of 2019 and is undergoing a complete renovation. The 96-bed facility is in an Opportunity Zone near downtown Phoenix and will care for patients struggling with medical and psychiatric conditions. The Neuropsychiatric Hospital in Phoenix will open in 2020 and is expected to bring 80 highincome jobs into the area.

Chandler Public Safety Training Center Phase II Developer: City of Chandler General Contractor: Caliente Construction Inc. Architect: MWL Architects Location: 3550 S. Dobson, Chandler Size: 38,960 SF Value: $11,306,000 Start/Completion: March 2019/March 2020 Subcontractors: AFC AZ; S&S Paving; JD Sun Mechanical; AJP Electric; RKS Plumbing; Image Building; Heywood Concrete; TPAC Precast; Paragon Tactile; Spire; Design

Drywall; Sargon Steel; Interstate Interior Systems; Co-lab Studio; RJ Russo; DH Pace; Rolling Plains Construction; Star Roofing; Interior Concepts Project description: New construction of a 19,960 SF pre-cast firing range training building with 6 drive-through apparatus bays and a 19,000 SF pre-engineered metal multipurpose building. The project features: indoor weapons/firing ranges, and Police Department range support spaces. The multi-purpose building features a Fire Department classroom, lockers and showers, equipment storage, and shop spaces for Fire staff and recruits.

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ABA Cives Steel Fabrication Plant Developer: John F. Long Properties LLLP General Contractor: FCI Constructors, Inc. Architect: DWL Architects Location: 13501 W. Joe R Ramirez Rd., El Mirage Size: 62,651 SF Value: $13,554,437 Start/Completion: December 2018/November 2019 Subcontractors: Ricor; Degan; MMI; ACB (AZ Corporate Builders); Maximum Fire; Newgaard (Pueblo Mechanical); Tri-Mega Mechanical; JBJ. Project description: Cives Corporation, one of the largest and most successful structural steel and plate fabricators in North America, recently built a new Steel Fabrication Plant on a former rose garden in El Mirage. This new Fabrication Plant is located on 25-acres and includes a new rail road spur for importing and exporting materials by rail, shipping and receiving yards with multiple crane ways, a 58,257 SF main building and five outbuildings for specialty equipment as part of the fabrication process, a large internal bridge crane, and blasting area for steel prep.

Heidi’s Village Developer: Virginia B Jontes Foundation General Contractor: CHASSE Building Team Architect: Cawley Architects Location: 600 N. 40th St., Phoenix Size: 49,000 SF Value: $22 million Start/Completion: April 2019/April 2020 Subcontractors: LR Cowan Concrete, Hobbs Masonry, Cutting Edge Steel, Pete King Construction, A-1 Fire Sprinklers, Corporate Air Mechanical Systems, A Pro Plumbing, Tilmann Electric, Firetrol Project description: When existing animal shelters in the Valley are at maximum capacity, Heidi’s Village aims to provide temporary boarding for their rescues until they are placed in a foster home. They also offer an infirmary for abandoned kittens, dog adoptions, grooming services, and veterinary care for local rescue groups and the public.

In addition, the facility is home to a full medical suite which can provide surgery to animals in need.

Merit PV 303 West II Developer: Merit Partners General Contractor: Stevens-Leinweber Construction Inc. Architect: Butler Design Group Location: 3350 N. Cotton Lane, Goodyear Size: 643,798 SF Start/Completion: April 2020/November 2020 Subcontractors: Suntec Concrete, Panelized Systems, Niemeyer Brothers Plumbing, Olympic West Fire Protection, Ikon Steel, Gunsight, 3D Pipelines.

Project description: This state-of-the-art, fully speculative Class A industrial building is located along the booming Loop 303 corridor – within the award-winning PV303 master-planned industrial park in Goodyear. Building will have 40’ clear height, modern cross dock configuration, private drive for easy ingress/ egress, ample car and trailer parking, ESFR sprinkler system, 6,000 amps of power and fully insulated ready for HVAC. 72 | July-August 2020

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ABA Rio 2100 East Developer: PG Investments 1, L.C. General Contractor: Wespac Construction, Inc. Architect: Butler Design Group Location: 2128 E. Rio Salado Pkwy., Tempe Size: 260,892 SF Value: $27,981,464 Start/Completion: August 2018/April 2020 Subcontractors: AARA Metals, Integrated Masonry, Walters and Wolf, Saguaro Steel, MKB Construction Project description: Rio 2100 East is a 4-story, Class A Office Spec Building with a 2-story parking facility. Building features include glass, metal panels and masonry elevations, along with panoramic views of the Valley. This Class A lease space consists of a 260,892 SF, 848-stall adjacent structured parking for an expanding corporate tenant base attracted to the Southeast Valley.

Sagewood Phase 2 IL Buildings & Commons Developer: Client: Life Care Services, LLC General Contractor: The Weitz Company Architect: Todd & Associates, Inc. Location: 4555 E. Mayo Blvd. Phoenix Size: 280,000 SF Value: $63 million Start/Completion: February 2019/ December 2020 Subcontractors: Aero Automatic Sprinkler, 3G Trim, AK & J Sealants, AME Electrical, AZ

74 | July-August 2020

Restaurant Supply, Colt Builders, Complete Roofing and Waterproofing, Ever Ready Glass, HACI Mechanical, Hiltys Electrical Contracting, JBS Plumbing, Johnson Controls Fire Protection, Levake Construction, Level 3 Audio Visual, Stone Cold Masonry, M&J Construction, Nationwide Fixture Installation, Netsian Technologies, Northwest Floor and Wall Company, Okeefe, Otis Elevator, Partitions and Accessories, Premier Underground Construction, Red Cedar Steel, Rite Way Thermal, Rolling Plains, Rouser,

SPG Construction, Sprayfoam Southwest, Suncoast Glass and Glazing.

Project description: Located in Northwest Phoenix, this multi-phase retirement community blends Southwest themes and picturesque architecture with state-of-the-art elements, finishes and services. Sagewood Phase 2 is the addition of 101 Independent Living Units to the Sagewood Campus.

Additional amenities included in this phase are the putting course, dining remodel and employee parking lot.

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ABA The Edge Developer: Palmer Development and Dominion Management Company General Contractor: Haydon Building Corp Architect: Butler Design Group Location: 8960 N. 90th St., Scottsdale Size: 234,000 SF Value: $40 million Start/Completion: January 2020/ March 2022 Subcontractors: A1 Fire Sprinklers; American Eagle Stucco; Arizona Glass and Glazing; Blucor Contracting; BTS A/C & Heating; Castle Steel; Denny Clark Masonry & Concrete; Desert Structures; DH Pace; Earthscapes; Echo Canyon Electric; Franklin Striping; King Insulation of AZ; KPML; Maverick Concrete Construction; Mister Bugman; Moyers Contracting; Offsite Sweeping; PK Associates; R.A.P.I.;

Saddleback Communications; Sonora Construction Enterprise; Speedie & Associates; Starkweather Roofing; SW Land Services; The Pipeline Company; Torrent Resources; Universal Piping; Wiese Painting Contractors

Tempe Academy of International Studies – McKemy Campus Rebuild General Contractor: Concord General Contracting, Inc. Architect: DLR Group Location: 2250 S. College Ave., Tempe Size: 70,300 SF Value: $16.8 million Start/Completion: March 2020/July 2021 Subcontractors: Breinholt, Echo Canyon Electric, Integrated Masonry, Progressive Roofing, Rouser Concrete, Wholesale Floors, RnR Steel.

Project description: Tempe Academy of International Studies will be undergoing a complete school renovation while on an active campus and will be performed in multiple phases.

The school will be including two new buildings. The new buildings will be single-story buildings which will blend with the existing structures. The rebuild portion will also include a new administration and learning commons building, a new cafeteria building with a kitchen and several new classrooms. The project will include ample opportunity for natural daylight in each space, polished concrete floors and carpet use, as well as outdoor dining and learning spaces. There will also be a parent drop-off area with longer queuing areas and more parking opportunities.

76 | July-August 2020

Project description: This project is a 212,000 SF Class A office building and 22,000 SF retail in-line shop space on 15 acres located on the northeast corner of 90th Street and the Loop 101. The new development will feature office and retail space at the northern gateway of the Loop 101 Corridor.

Town of Gilbert - Public Safety Training Facility Developer: Town of Gilbert General Contractor: CORE Construction Architect: HDA Architects Location: 6860 S. Power Rd., Gilbert Size: 150,000 SF Value: $65.5 million Start/Completion: May 2019/December 2020 Subcontractors: Suntec Concrete, Stone Finish, Sandstorm Construction, Sun Valley Masonry, Hobbs Masonry Construction, Castle Steel, Modern Metal Masters, Progressive Roofing, Pete King Construction, ReSource Arizona, Integrated Floor Systems, RKS Plumbing & Mechanical, Pueblo Mechanical, ACE Asphalt of Arizona, D T R Landscape Development.

Project description: The Public Safety Training Facility project, currently being built for the Town of Gilbert, includes the new construction of an 18-acre village style tactical training campus for police and fire. The facility will provide long-term support for Gilbert’s public safety training needs. The tactical training campus will feature an amphitheater, locker rooms, administrative offices, classrooms, a 3-bay mock fire station, several burn buildings, and indoor shooting ranges with traditional lanes and a custom streetscape. The adjacent tactical drive training area will consist of a driving course, evasive maneuver course, and driving skills pad within a retention area.

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ABA University of Arizona Student Success District Developer: The University of Arizona General Contractor: Sundt Construction Architect: Miller Hull and Poster Mirto McDonald Location: 1428 E University Blvd. Tucson Size: 60,000 SF Value: $57,714,476 Start/Completion: January 2019/ January 2022 Subcontractors: Sundt Concrete, Hardrock Concrete, Blanco Concrete, JB Steel, Day’s Excavating, MKB, Wilson Electric, NW Exterminating, Kelley Brothers, Comfort Systems USA, RCD Demolition, Hiller & Sons Painting, Crown Custom Millwork, Kerr Masonry, Architectural Openings Project description: The four-story Student Success building will be a centralized building for student services, mentoring, tutoring and career counseling. It is the only new construction on the project, with the remainder of the project including renovation to the Main Library, the Albert B. Weaver Science-Engineering Library and Bear Down Gym. The new district encourages students to move seamlessly Wexford PBC1 Developer: Wexford Science & Technology General Contractor: Okland Construction Co., Inc. Architect: HKS Location: 850 N. 5th St., Phoenix Size: 244,986 SF Value: $47 million Start/Completion: March 2019/ September 2020 Subcontractors: Kovach, Delta, Suntec and Comfort Project description: This project consists of new construction for a science and technology core/shell building in downtown Phoenix. The building consists of seven stories above grade as well as one story below grade. It includes a two-sided lobby space that is accessible via Garfield and through a courtyard adjacent to 4th and 5th streets. The primary skin of the building is metal panels, glass, and vertical metal louvers to provide shading. The project has been designed and engineered for potential laboratory tenants throughout the building.

Arizona State University will be a tenant for half of the available square footage.

78 | July-August 2020

between spaces that provide a full range of services and expertise, allowing them to reach their academic and career goals.

The project is a design-build with Sundt’s

design partners of Miller Hull and Poster Mirto McDonald. The multi-facility project is expected to be fully completed and open to students by 2022.

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