AZRE magazine March/April 2014

MARCH-APRIL 2013 2014

MEET THE 2014

RED AWARDS WINNERS

Inside: Westward Ho:

West Valley braces for boom p. 26

Tribal Tenure:

Construction in Indian Country's expansion plan p.36

Corenet ARizona: Engaging the Enterprise p.44

Pictured: McCord Hall, RED Award Winner for Best Public Project

When You Need Direction

Buchalter Nemer

Today’s dynamic commercial real estate environment presents real estate owners, managers, developers, lenders and investors with exciting opportunities. Buchalter Nemer real estate attorneys offer sound professional advice and guidance, when you need direction.

In Arizona, please contact

Paul M. Weiser, Esq.

480.383.1823 pweiser@buchalter.com 16435 North Scottsdale Road, Suite 440 Scottsdale, Arizona 85254-1754 www.buchalter.com

SEEING RED T

his is one of the most exciting times of the year for AZRE. Every January, we ask members of the commercial real estate community to help us fi ll 5-inch binders with nomination forms for the most influential, innovative and exciting developments in Arizona over the last 12 months. A few paper cuts and a two-hour voting panel later, and we managed to narrow more than 100 nominations down to three finalists in 13 categories.

Thank you to everyone who submitted projects and came out to the RED Awards on Feb. 26. For more information about this year’s finalists, turn to page 54.

In this issue of AZRE, you can read about Michael Pollack, of Pollack Real Estate Investments, and his interesting collection and the time when he traded in his drum sticks and a European tour for a career in real estate.

We also explore the West Valley in this issue, from the marriage of sports venues and hospitality developments (paeg 32) to what’s happening on Loop 303 (page 26). In “Industrial Evolution,” Donna Hogan reports that the West Valley is poised for a land grab (page 30) and how to get a parcel of the action.

Continue on, and you’ll read about construction in Indian country, CoreNet Global Arizona’s new structure and how the Institute of Real Estate Management (IREM) is handling a projected talent shortfall.

Speaking of talent — if you didn’t catch the Brokers for Kids/Agents Benefiting Children action on Feb. 7, read our recap on page 22. It was a fundraising and gaming event of Olympic proportions. And, if you did go, check yourself out in our photo spread!

Enjoy the book, and congratulations, again, to all of the 2014 RED finalists.

Amanda Ventura Associate editor, AZRE amanda.ventura@azbigmedia.com 2 | March-April 2014

President and CEO: Michael Atkinson Publisher: Cheryl Green Vice president of operations: Audrey Webb EDITORIAL Editor in chief: Michael Gossie Associate editor: Amanda Ventura Interns: Jesse Green | Jessica Millard | Sara Parker ART Art director: Mike Mertes Graphic designer: Shavon Thompson Photo Intern: Courtney Pedroza DIGITAL MEDIA Digital manager: Perri Collins Web developer: Eric Shepperd MARKETING/EVENTS Manager: Angela Vaughn AZRE | ARIZONA COMMERCIAL REAL ESTATE Director of sales: Steve Koslowski OFFICE Special projects manager: Sara Fregapane Executive assistant: Mayra Rivera Database solutions manager: Cindy Johnson AZ BUSINESS MAGAZINE Senior account manager: David Harken Account managers: Ann McSherry | Shannon Spigelman AZ BUSINESS LEADERS Director of sales: Jeff Craig RANKING ARIZONA Director of sales: Sheri King SCOTTSDALE LIVING Director of sales: Marianne Avila EXPERIENCE ARIZONA | PLAY BALL Director of sales and marketing: Zoe Terrill AZ BIG MEDIA EXPOS SCOTTSDALE HOME & GARDEN SHOW/MARCH SCOTTSDALE HOME & GARDEN SHOW/NOVEMBER Exhibit directors: Kerri Blumsack | Tina Robinson

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 S ASE. Single copy price $3.95. Bulk rates available. ©2013 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.

CORRECTION: In the top office leases list in the “Big Deals” section of the November issue, the tenant broker for the Discovery Business Campus was incorrectly identified. It should have listed John Pierson of Jones Lang LaSalle.

Quality Makes All The Difference

Commercial Real Estate Finance Quality People | Quality Processes | Quality Relationships THIS IS THE WALKER & DUNLOP DIFFERENCE www.walkerdunlop.com California loans will be made pursuant to a Finance Lenders Law License from the Department of Business Oversight.

CONTENTS FEATURES 02 06 10

Editor’s Letter New to Market

Projects in the pipeline

Planning & Zoning

P&Z updates throughout Arizona

11

Project News

12

After Hours

14

Executive Q&A

16

Michael Pollack, Pollack Real Estate Investments

Four faces of industry leadership

Big Deals

Top sales and leases since December, and the brokers who made them

22

Brokers for Kids

26

West Valley Update

36

Construction in Indian Country

44

CoreNet Global Arizona

54

COVER

06

11

12

32

RED Awards

Finalists and winners

NEXT ISSUE Valley Partnership Financing Real Estate Healthcare Update

On The Cover: McCord Hall; Architect: RSP Architects/Kohn Pedersen Fox Associates

4 | March-April 2014

38

22

Free AZRE app for android online with this QR code

3101 N. Central Avenue Suite 1070 Phoenix, Arizona 85012 (602) 277-6045 azBIGmedia.com

neW to marKet EDUCATION

RETAIL 3 | FRY’S STORE #86 AT SUNDOME CROSSING

1

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SOUTHWEST COLLEGE OF NATUROPATHIC MEDICINE CAMPUS EXPANSION

DEVELOPER: Axis Developments Inc. GENERAL CONTRACTOR: Axis Developments Inc. ARCHITECT: Cawley Architects LOCATION: 2140 E. Broadway Rd., Tempe SIZE: 47K SF VALUE: $9.5M START/COMPLETION: January to fall 2014 SUBCONTRACTORS: Sharp Creek, Suntec, Re-Create Companies, Bell Steel, Desert Ridge Glass, Pinnacle Plumbing, Alliance Fire Protection, TCK AC and Heating, Phoenix Commercial Electric

Southwest College of Naturopathic Medicine (SCNM) broke ground Jan. 8 on a new 47KSF mixed-use building. The $9.5M campus expansion supports the college’s record enrollment numbers, growing patient volume in the medical center and plans to add new degree programs and community classes to match the growing interest in naturopathic medicine. The campus expansion will provide space for a larger library, more group and individual study spaces, a café, exercise space and updated classrooms to support lecture and team-based learning. Additionally, SCNM will explore new frontiers in naturopathic medicine with an integrative regenerative healing center for the treatment of pain and a demonstration kitchen for patient and community education.

2

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SEQUOIA PATHFINDER ACADEMY

DEVELOPER: Edkey, Inc. GENERAL CONTRACTOR: GCON Inc. ARCHITECT: Hunt & Caraway Architects LOCATION: Eastmark Parkway north of Ray Road in Mesa SIZE: 32K SF BROKERAGE FIRM: Titanium VALUE: $6.8M START/COMPLETION: February to July 2014

Edkey, Inc., the parent company of 16 Sequoia Charter Schools, has completed construction plans for the new $6.8M kindergarten through 6th grade Sequoia Pathfinder Academy at Eastmark, located on Eastmark Parkway north of Ray Road in Mesa. The new tuition-free elementary school, which will serve 400 students, is scheduled to open in August for the 2014-15 school year.

6 | March-April 2014

DEVELOPER: Brown Grace 6 Investments, LLC and Smith’s Food & Drug Centers, Inc. GENERAL CONTRACTOR: Chasse Building Team ARCHITECT: Perkowitz + Ruth Architects LOCATION: 19403 N. R.H. Johnson Blvd., Sun City West SIZE: 109,222 SF BROKERAGE FIRM: Land & Fry’s Grocery: Empire Commercial; Retail: Phoenix Commercial Advisors VALUE: $9M START/COMPLETION: 4Q 2014 SUBCONTRACTORS: Rikoshea, Redpoint, G&G Masonry, L R Cowan, Sun Valley Masonry, Universal Piping and CPR Electric.

Fry’s Grocery Store is taking the place of the historic Sundome. The design of the store will have wrought iron inserts on the sides of the building that were salvaged from the demolition of the Sundome. A fuel station and new retail shops building will also be housed on this 16-acre site.

4 | THE ANNEX DEVELOPER: Wetta Ventures GENERAL CONTRACTOR: UEB Builders ARCHITECT: Brick & West, LLC and RSP Architects LOCATION: College Avenue and 6th Street, Tempe SIZE: 7,323 SF VALUE: $1.2M START/COMPLETION: January to August 2014

Adaptive reuse of a 1952 school building into a two-restaurant building with large patios adjacent to College Avenue and across the street from the new College Avenue Commons.

neW to marKet MULTI-FAMILY 6 | JEFFERSON ON LEGACY

DEVELOPER: TDI Real Estate Holdings GENERAL CONTRACTOR: TDI Construction Services LLC (d/b/a Multi Construction Services) ARCHITECT: Architects Orange LOCATION: 340 E. Legacy Boulevard, Scottsdale SIZE: 306K SF LANDBROKERS: Nathan & Associates on behalf of land seller and Michael Lieb on behalf of buyer. John Cunningham and Curtis Jaggars of Jones Lang LaSalle assisted in arranging the project financing.

VALUE: $60M START/COMPLETION: 1Q 2014 to 3Q 2015

Th is project phase will bring a 322-unit luxury apartment community within the One Scottsdale master-planned development located at the NEC of the 101 Freeway and Scottsdale Road. One Scottsdale is an 80-acre mixed-use property planned for specialty retail, dining, Class-A office and hotel uses.

7 | THE RESIDENCES AT FOUNTAINHEAD CORPORATE PARK

5 | MERCEDES-BENZ OF SCOTTSDALE OWNER: Chuck and Anita Theisen DEVELOPER: Autopilot Development Services LLC GENERAL CONTRACTOR: Johnson Carlier DESIGN ARCHITECT: DAVIS Architecture TECHNICAL DESIGN ARCHITECT: Barry R. Barcus LOCATION: 4725 N. Scottsdale Rd., Scottsdale SIZE: 223,019 SF VALUE: $30M START/COMPLETION: 1Q 2013 to March 2014

Mercedes-Benz of Scottsdale officially opened at the end of December across from Barney’s at Scottsdale Fashion Square. The relocated and newly named MercedesBenz of Scottsdale dealership features 115K SF of space on three levels. The building was modified from an old office space to accommodate the showroom along Scottsdale Road, full-service shop with fully enclosed service bays, screened lighting, insulated garage doors and a luxurious lounge available for MercedesBenz customers. The City of Scottsdale says the move will result in a $25M investment for downtown Scottsdale along with 150 new high-paying jobs for the area. The new project will also generate millions in new sales tax revenue for the city.

DEVELOPER: Tilton Development Co. and Goodman Real Estate GENERAL CONTRACTOR: Adolfson & Peterson Construction Inc. ARCHITECT: Todd & Associates Architecture LOCATION: 55th Street & S. Plaza Drive, Tempe SIZE: 389,314 SF BROKERAGE FIRM: CBRE VALUE: $35M START/COMPLETION: January 2014 to July 2015

The project consists of 322 apartment homes featuring studio, one-, two- and three-bedroom floor plans with fl at and loft units contained within four-story buildings with six elevators and surface covered parking spaces. The buildings are connected by bridges on multiple levels along with balconies and apartments that span over driveway locations at the third and fourth levels creating portico entry ways on 55th Street and South Plaza Drive. The two-story clubhouse anchors the center of the community with top tier amenities, including indoor and outdoor fire pit areas, clubroom, fitness area, game room, swimming pool and spa situated within the secluded and lush landscaped grounds of Fountainhead Corporate Park in south Tempe.

8 | THE LOFTS AT HAYDEN FERRY DEVELOPER: OliverMcMillan GENERAL CONTRACTOR: Adolfson & Peterson Construction Inc. ARCHITECT: Pappageorge Haymes Partners, Todd & Associates Architecture LOCATION: 260 Rio Salado Parkway, Tempe SIZE: 497K SF VALUE: $40M START/COMPLETION: June 2014 to Dec. 2015

Situated on a 3.69-acre site adjacent to Tempe Town Lake, the high visibility development consists of 264 class-A market-rate apartments in four stories of wood-framed structure with two levels of parking below grade. The podium will be elevated approximately four feet above grade which will enhance the characteristics of its architecture in addition to lessening the potential of subterranean water issues due to the proximity of the project to the existing lake. The site is currently vacant and is part of the Hayden Ferry Lakeside Master Plan, near Arizona State University and the Mill Avenue Entertainment District.

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www.buesingcorp.com // 602.233.3339 // ROC#200645A 8 | March-April 2014

pLanninG and ZoninG  CITY OF MARICOPA

The City of Scottsdale is preparing a zoning ordinance text amendment and has invited the community for review and comments. Amendments to the text are proposed to update definitions and regulatory language related to terms used to describe a responsible party such as property owner, applicant and other related terms. General cleanup revisions are also proposed to correct section references, eliminate duplication of requirements and improve the overall consistency of the ordinance. The ultimate objectives of this proposal are to add consistency, improve the usefulness of the ordinance and to provide clarity in the language of the ordinance. One meeting, with the public invited, has already occurred in January but others are to be scheduled.

Recently, the Maricopa City Council approved the annexation of approximately 850 acres of land owned by a partnership known as Anderson Russell LLC. The property is located south of the Maricopa-Casa Grande Highway and straddles both sides of Anderson Road while extending southward to the Teel Road alignment. This annexation is significant in that it now allows the city the capability to expand to the south by annexation. City officials are already contemplating the annexation of additional properties adjacent to the Anderson Russell property. A general plan amendment has also been approved, changing the property to a master-planned community. Although a portion of the newly annexed property was within the City of Casa Grande’s planning area, an agreement exists between the two municipalities that allow that private landowners within unincorporated areas of the county to be able to choose which city they wish to be annexed regardless of which city’s planning area they are located in.

 TOWN OF GILBERT

 CITY OF PEORIA

 CITY OF SCOTTSDALE

As demand for multi-family housing continues to increase within the Town of Gilbert, town leaders are proposing to tighten restrictions for developers that are considering building apartment complexes in commercially zoned areas.

These new restrictions would add a number of conditions that a potential apartment developer would have to meet to get an apartment complex approved in regional commercial zoning.

Those conditions would include a requirement to provide a mixture of land uses, such as office or retail commercial, on the proposed apartment parcel or on an adjacent parcel; a requirement that the project be compact or dense by sharing parking with adjacent development; a requirement for pedestrian-orientation or to have pedestrian accessibility, convenience and attractiveness; a requirement to address local transit system connections with facilities for pedestrians, bicyclists and automobile drivers; and a requirement to incorporate attractive public spaces that might include public art and serve as public gathering places. The objective of these newly proposed regulations is to give the town council and the planning commission more flexibility in reviewing any proposed apartment complexes and allowing them the option of rejecting proposed plans if they don’t meet specific new requirements. The proposed new regulations went before the planning commission in January, and members were generally favorable to the new standards but suggested a need for some revisions. The commission will review the standards in a study session and eventually vote on a recommendation, after which the proposal will go to town council for approval or rejection.

The City of Peoria has recently announced the initiation of a self-certification pilot program. Qualified applicants to the program must be active Arizona licensed design professionals who have attended the self-certification training offered by the City of Phoenix (phoenix.gov/pdd/topics/scp.html), and have successfully obtained a Building Plans Examiner Certificate from the International Code Council. Through this program, eligible building permits can be issued in as little as three business days. This self-certification program allows qualified professionals to quickly bypass the plan review and examination process by self-certifying a projects compliance with building codes, standards and ordinances. However, the pilot program does not include zoning clearances, parking, signs, fire, environmental services, landscaping, grading, industrial/utilities, floodplain or other land development codes.

The program was initiated this past January. To learn more of the program’s details, visit peoriaaz.gov/selfcert.

 CITY OF BUCKEYE

As reported in the September/October 2013 edition of AZRE, the “Town” of Buckeye is officially now the “City” of Buckeye. In January, the transition was celebrated by more than 200 citizens and city officials as the “CITY” portion of the new City Hall sign was unveiled in downtown Buckeye. The city’s Mayor Jackie Meck thanked the generations of the community, as well as previous town officials whose work would be continued by future city leaders. Meck stated that the city was no longer in the shadows and in fact was working to create shadows of its own.

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

10 | March-April 2014

BELOW: Left, Arizona Mills; Top Right, Hyder II Plan; Bottom Right, Air Transport Components

proJect neWs ➤ REVISTING EASY STREET Butte Development is revisiting plans for the $90M mixed-use project Easy Street near Cave Creek and Tom Darlington roads. The project includes 80 luxury condos and approximately 50k SF of retail and commercial space. Butte is working closely with the Phoenix Art Museum and the town of Carefree to consider a 10K SF satellite museum at the project. Current discussions include an exhibit schedule that rotates seven times per year and a 1,500 SF multipurpose community center. The project would be built in two phases.

If negotiations with the Phoenix Art Museum and the town of Carefree are successful, Butte hopes to break ground on the south phase of the project by yearend. Phoenix-based Ryan Companies is the general contractor, and Kendle

Design Collaborative in Scottsdale is the design architect. ➤ CLEARED FOR TAKEOFF LGE Design Build completed a 67K SF tenant improvement and renovation project for Air Transport Components in Gilbert. Renovations included the addition of 8KSF of office space strategically located at the building atrium feature, adding significant airline and power distribution, retrofitting all restrooms, adding a new break room, adding a new roof, all new lighting, all new flooring, all new insulation, and exterior modifications including paint, parking lot re-seal, and landscaping. ➤ UPSCALE DINING Ideation Design Group remodeled Arizona Mills mall’s 40KSF food court in Tempe. The $4M project launched in spring 2013

and was completed in March. IDG used local material, recycled projects and Arizona companies to execute features, including porcelain tile flooring with a whitewashed and black-washed wood plank feel, stacked stone and wood accents, as well as banquette seating, silk plants and custom lighting.

The developer was Simon Property Group, the general contractor was Verde Building Corporation and contractors included MWM. ➤ SOLAR FLAIR McCarthy Building Companies completed the install of Hyder II solar plant for Arizona Public Service. The plant is on 240 acres in eastern Yuma County and uses 71,000 single-axis tracking photovoltaic panels to generate 14 megawatts of solar energy. Th is is enough to serve 3,500 homes.

➤ RENOVATIONS ON ICE The Ice Den in Chandler, recently purchased by Coyotes Ice, will close for a $3M renovation process.

The project will include bringing the building up to code as well as work on the roof and subfloor. The rink will re-open this summer. ➤ UPDATING HISTORY CSM Lodging plans to renovate the historic Professional Building at Central Avenue and Monroe Street into a modern hotel. The building, which originally opened in 1932, has a budget of $40M for renovations, which will include 165 guest rooms on 12 floors, a 5K SF meeting space, 1,300 SF fitness center and 8K SF of retail along Central Avenue. The project is expected to bring about 100 construction jobs to Phoenix.

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aFter hours MICHAEL A. POLLACK WHAT DID YOU THINK YOU’D BE WHEN YOU GREW UP? Either a musician or a real estate developer OF WHAT PERSONAL OR PROFESSIONAL ACCOMPLISHMENT ARE YOU MOST PROUD? Surviving the 2009 to 2011 real estate meltdown without renegotiating a single loan and paying all my bills in full and on time.

  

Photo by Carl Schultz

PRESIDENT — POLLACK REAL ESTATE INVESTMENTS, MESA BORN AND RAISED: San Jose, Calif.

WIFE: Cheryl Pollack EDUCATION: San Jose State University

ollack founded his company 40 years ago. Along with its

affi liates, Pollack Real Estate Investments has been involved in more than 12 MSF of real estate projects throughout the U.S. He takes pride in being involved in all aspects of real estate including the ownership, management, construction, business negotiations, acquisitions, sales, contracts, finance and leasing of various types of company-owned projects.

FAVORITES SPORTS // Football and basketball MUSIC // Rhythm and blues TRAVEL DESTINATION // Europe LEISURE ACTIVITIES // Playing drums with my band, Corporate Affair, and collecting antique pieces, including advertising statues, animated displays and antique slot machines for my Pollack Advertising Museum

WHAT WOULD PEOPLE BE SURPRISED TO KNOW ABOUT YOU? In 1973, when I graduated from high school I almost went overseas on tour with a band instead of entering the real estate business. After careful consideration, I chose real estate because as a drummer who couldn’t sing very well my future earning ability in music didn’t look as bright as my potential earning ability in real estate. I promised myself back in 1973 that I would return to play the drums when I didn’t have to make a living at it. In 2005, I formed the band Corporate Affair and we have played more than 100 shows that have included performances at various charity events around the Valley and at the major parades such as Phoenix Electric Light Parade, Tempe Fantasy of Lights Parade and the Fiesta Bowl Parade.

HOW DID THE POLLACK ADVERTISING MUSEUM START? My interest in collectibles actually started when I was about 13 years old. I would go to flea markets on Saturdays and buy electric beer signs, repair them Saturday night and then take them to antique stores and sell them on Sundays for a profit.

My favorite story involves a life-size Bosch battery man displaying a car battery. The Bosch man was found in what used to be East Berlin after the wall was torn down under a dilapidated building, inside a coffin. I also enjoy collecting animated Baranger displays and antique slot machines. The Pollack Advertising Museum has grown from a few dozen pieces in my basement 40 years ago to a world-class museum with more than 8,000 pieces on display.

WHAT IS THE BEST BUSINESS ADVICE YOU’VE BEEN GIVEN? Always be able to “CYA” — cover your assets!

WHAT ADVICE WOULD YOU SHARE WITH PEOPLE EARLY IN THEIR REAL ESTATE CAREER? If you want to be successful, be willing to work hard, learn all you can about the business you choose and always deal with honesty and integrity.

                                            12 | March-April 2014

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executive q&a Leroy Breinholt

President/Designated Broker, Commercial Properties Inc. Years in CRE: 28 Years at company: 28 What attracted you to the industry?

I wanted to be a salesman and be in real estate since I was a child.

How has the industry changed since you started?

Technology has increased the pace of the business. You have to be “on your game” more.

What’s the most significant deal you’ve brokered?

Lincoln Meadows Business Park was my most significant sale at $28.8M for 215,000 SF of buildings with excess land.

What are three qualities of a great broker?

Responsiveness, respect for others and integrity.

What gets you through tough business days?

Family, religion and the real purpose of life What’s the most influential professional advice you’ve received?

Try to work harder and smarter. Don’t compete against others, just try to be the best you can at what you do everyday.

What’s one of the biggest market changes or areas of growth you predict happening in Phoenix’s near future?

I believe development and land sales will be the area of growth again as more high tech firms look to relocate or expand into Phoenix.

business better than anyone. They study their competitors, are in touch with their clients and are always looking for the next opportunity. They are working on the next “big thing” because they are always a student of the business.

Jim Belfiore

President, Belfiore Real Estate Consulting Years in CRE: 21 Years at Belfiore: 8 What first attracted you to commercial real estate?

The diversity in real estate attracted me to the business. No two properties are the same; every project differs because locations differ, the characteristics of structures often differ, and amenities, whether natural or man-made, differ, too. These differences keep the work fresh and fun.

How has the industry changed since you started?

Finance is really different today than it was 20 years ago. If you look deep into how projects take form, in the beginning they are heavily influenced by finance because without financing they are never built. The biggest single influence over growth in the housing market over the next three years will be driven by changes in the finance industry.

What are three qualities of a great executive?

To me, a “great” executive is a great leader. To be a great leader, you must show you are willing to make the tough decisions when they come up. Leaders are charged with determining the direction of the company, creating a productive and healthy company culture and recognizing when a need to change course arises. Great executives are willing to roll up their sleeves and pitch in at every level; they must demonstrate a constant willingness to pitch in to make the company successful, and this means getting their hands dirty. Finally, I believe great leaders know their 14 | March-April 2014

Of what professional achievement are you most proud?

I’m proud that I have built this company, Belfiore Real Estate Consulting, through one of the most difficult recessions this country has ever faced. Of course, I’m fortunate to have had my family, great friends, absolutely phenomenal employees and a core of close clients that helped me do it.

What’s one of the biggest market changes or areas of growth you predict happening in Phoenix’s near future?

I believe people are going to be thoroughly surprised at how fast the residential market grows in the next few years. More than 40,000 new jobs are being created in Phoenix annually, driving population gains of 100,000+ each year. These people will need places to live. Last year, homebuilders constructed 12,500 homes; over the course of the next five years, I think the residential market is going to go from 12,500 new homes annually to more than 30,000. This growth is going to create a wonderful opportunity for those in real estate.

What’s the most influential professional advice you’ve received?

Hard work can get you through anything. My mother worked her way out of every bind she had while I was growing up; she has been the single-greatest influence on my life, fighting through every challenge (there were many!) that came her way. While in high school, the hard work theme was further kneaded into my fabric by some close family friends I worked with. These friends, the Taylors, owned an RV park, small motel and restaurant that catered to summertime tourists. Laying concrete, replacing roofs, painting hotel rooms and waiting tables, I learned that hard work and “doing it right the first time” was the clear path to success.

There’s no such thing as a “small” deal in this industry, coming out of a recession.

However, it’s the big deals, and the brokers who make them, that make the market an interesting one to watch.

In every issue, AZRE publishes the top five notable sales and leases for a period of 60 days (one month out from publication) based on research compiled by Cassidy Turley and Colliers International with CoStar.

RETAIL/SALES

TOP 5 NOTABLE LEASES AND SALES (DEC. 1, 2013 TO JAN. 31, 2014) SOURCE: CASSIDY TURLEY RESEARCH DEPARTMENT, COLLIERS INTERNATIONAL AND COSTAR

OFFICE/SALES

Chad Tiedman

Kevin Calihan

1. MARKET STREET AT DC RANCH, SCOTTSDALE

1. 100 CENTERPOINT, TEMPE

2. CANYON TRAILS TOWNE CENTER, GOODYEAR 115,145 SF; $23.5M BUYER: TriGate Capital, LLC SELLER: Vestar Development Co. LISTING BROKERAGE: Cassidy Turley

2. 5090 BUILDING, PHOENIX 175,186 SF; $26.35M BUYER: Lowe Enterprises Real Estate Group SELLER: CJK Investments LISTING BROKERAGE: CBRE

3. CHESTER’S HARLEY-DAVIDSON, MESA 38,628 SF; $14.2M BUYER: Capital Automotive Real Estate Services, Inc. SELLER: Chester Real Estate, LLC

3. PERIMETER GATEWAY I, SCOTTSDALE 230,000 SF; $26M BUYER: Desert Troon Companies SELLER: CW Capital Asset Management, LLC

4. ARCADIA PLAZA, PHOENIX 63,635 SF; $13.7M BUYER: Phillips Edison SELLER: R J Realty Investors, LLC LISTING BROKERAGE: Strategic Retail Group

4. SCOTTSDALE FINANCIAL CENTER III, SCOTTSDALE 152,077 SF; $24.65M BUYER: Lowe Enterprises Real Estate Group SELLER: CJK Investments LISTING BROKERAGE: CBRE

5. GILBERT TOWN SQUARE, GILBERT 158,727 SF; $13.4M BUYER: BH Properties, LLC SELLER: Torchlight Investors LISTING BROKERAGE: Cushman & Wakefield

5. NORTHGATE CORPORATE CENTRE, PHOENIX 131,854 SF; $22.825M BUYER: Griffin Capital Corp.

SELLER: Najafi Companies LISTING BROKERAGE: CBRE

241,280 SF; $37.4M BUYER: Whitestone REIT SELLER: DMB & Associates, Inc. LISTING BROKER: Chad Tiedeman, Phoenix Commercial Advisors

16 | March-April 2014

298,954 SF; $57.5M BUYER: JPMorgan Chase & Co. SELLER: Brookfield Real Estate Opportunity Fund LISTING BROKER: Kevin Calihan, CBRE

Industrial/Sales

Tom Richards

BIG DEALS Multi-Family/Sales

Sean Cunningham

Tyler Anderson

1. Warner Business Center, Tempe

1. Scottsdale Springs, Scottsdale

2. 7200 W. Buckeye Rd., Phoenix 400KSF; $26.25M Buyer: UBS Realty Investors, LLC Seller: Sealy & Company Listing Brokerage: Jones Lang LaSalle

2. BelaRosa, Anthem 354 units; $40.2M Buyer: Weidner Property Management Seller: The Greystone Group, LLC/Westfield Company, Inc. Listing Brokerage: Hendricks & Partners

3. Tempe Commerce Center, Tempe 177,848 SF; $11.8M Buyer: Presson Corporation Seller: Kieckhefer Company Listing Brokerage: Cassidy Turley

3. San Marquis, Tempe 224 units; $32,254,858 Buyer: Dewey Land Company, Inc. Seller: Mark-Taylor Residential Inc.

319,389 SF; $40M Buyer: Voit Real Estate Services Seller: ViaWest Group Listing Broker: Tom Richards, Voit

4. San Tan Tech Center, Tempe 129,187 SF; $9.6M Buyer: ViaWest Properties LLC Seller: Capital Commercial Investments, Inc. Listing Brokerage: CBRE 5. T-Mobile Building 44,244 SF; $8.5M Buyer: El Dorado Holdings, Inc. Seller: Bixby Land Company Listing Brokerage: CBRE

644 units;$53.65M Buyer: Abacus Capital Group LLC Seller: The Related Companies Listing Brokers: Sean Cunningham and Tyler Anderson, CBRE

4. The Coves at Newport, Glendale 480 units; $30.75M Buyer: Henderson Global Investors Seller: Fannie Mae Listing Brokerage: CBRE 5. Rancho Santa Fe, Glendale 270 units; $12,079,419 Buyer: Bean Investment Real Estate Seller: Genibel, LLC Buying Broker: Jack Hannum

17

biG deaLs LAND/SALES

No. 2 - Desert Ridge and Pinnacle Peak

OFFICE/LEASES

Jim Achen

Larry Pobuda

Bill Zurek

Tom Adelson

1. OCOTILLO, CHANDLER

1. PIMA OFFICE PAVILION, SCOTTSDALE

2. DESERT RIDGE/TATUM BLVD./ PINNACLE PEAK RD., PHOENIX 105.72 acres; $28.1M BUYER: Taylor Morrison, Inc. SELLER: Arizona State Land Dept.

LISTING BROKERAGE: Land Advisors Organization

2. PHOENIX PLAZA - TOWER II, PHOENIX 55,946 SF LANDLORD: General Electric Capital Corp.

TENTANT: Abengoa LANDLORD BROKERAGE: CBRE TENANT BROKERAGE: CBRE

3. CITY OF MESA LAND, COOLIDGE 1631 acres; $24,467,605 BUYER: Pinal Land Holdings, LLC SELLER: City of Mesa LISTING BROKERAGE: Nathan & Associates, Inc.

3. WESTERN INTERNATIONAL UNIVERSITY, PHOENIX 39,424 SF LANDLORD: Anthem Education TENTANT: The Bryman School LANDLORD BROKERAGE: DAUM Commercial Real Estate Services TENANT BROKERAGE: Newmark Grubb Knight Frank

74 acres; $29M BUYER: Standard Pacific Homes Inc. SELLER: Ocotillo West, LLC LISTING BROKERAGE: Nathan & Associates, Inc.

4. EASTMARK, MESA 527 acres; $17,080,310 BUYER: Meritage Homes, Inc. SELLER: DMB & Associates, Inc. LISTING BROKERAGE: Nathan & Associates, Inc. 5. SCOTTSDALE ONE, SCOTTSDALE 13.5 acres; $14.5M BUYER: TDI SELLER: DMB & Associates, Inc. LISTING BROKERAGE: Nathan & Associates, Inc.

18 | March-April 2014

90K SF LANDLORD: Healthcare Realty Services Inc. TENTANT: Rural Metro LANDLORD BROKERS: Jim Achen, Jr., Bill Zurek, Larry Pobuda, Transwestern TENANT BROKER: Tom Adelson, CBRE

4. ALLRED PARK PLACE, CHANDLER 34,945 SF LANDLORD: Mark Krison, Brad Anderson, Mike Strittmatter TENTANT: INSYS Therapeutics Inc. LANDLORD BROKERAGE: CBRE TENANT BROKERAGE: Cassidy Turley 5. U.S. BANK CENTER, PHOENIX 26,490 SF LANDLORD: Angelo, Gordon & Co. TENTANT: Jacobs Engineering Group Inc. LANDLORD BROKERAGE: Jones Lang LaSalle TENANT BROKERAGE: Cushman & Wakefield

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19

biG deaLs INDUSTRIAL/LEASES

Mark Krison

RETAIL/LEASES

Brad Douglass

Chris Hollenbeck

1. 1150 N. FIESTA BLVD., GILBERT 83,825 SF LANDLORD: LBA Realty TENTANT: Curtiss Wright LANDLORD BROKER: Mark Krison, CBRE TENANT BROKERAGE: Mohr Partners

1. NORTHERN LIGHTS CENTER, GLENDALE 27,780 SF LANDLORD: CIRE Partners TENTANT: Stardust Nonprofi t Building LANDLORD BROKERAGE: Chris Hollenbeck and Brad Douglass, Cassidy Turley TENANT BROKERAGE: Martin Leon, De Rito Partners

2. 4025 S. 32ND ST., PHOENIX 80K SF LANDLORD: Douglas Allred Company TENTANT: Asurion Corporation LANDLORD BROKERAGE: Cushman & Wakefield TENANT BROKERAGE: CBRE

2. MONTEREY VISTA VILLAGE, CHANDLER 29,280 SF LANDLORD: Keith-Pecos, LLC TENANT: Xtreme Air Jump N Skate LANDLORD BROKERAGE: Cassidy Turley TENANT BROKERAGE: Capital Asset Management

3. 5107 N. 51ST AVE., GLENDALE 40,106 SF LANDLORD: Harrison Properties TENTANT: Avanti Industries LANDLORD BROKERAGE: Harrison Properties TENANT BROKERAGE: Cassidy Turley

3. ROSS DRESS FOR LESS, PHOENIX 25,840 SF LANDLORD: 53rd & Is LLC TENANT: Ross Dress for Less LANDLORD BROKERAGE: Red Mountain Retail Group TENANT BROKERAGE: Western Retail Advisors

4. GLEN HARBOR BUSINESS PARK, GLENDALE 40,081 SF LANDLORD: Jack Berg Family LP TENTANT: Ettico Construction LANDLORD BROKERAGE: Lee & Associates TENANT BROKERAGE: Lee & Associates

4. SOUTH POINT PLAZA, TEMPE 28,850 SF LANDLORD: MCS South Point Plaza TENANT: Goodwill LANDLORD BROKERAGE: Strategic Retail Group TENAT BROKERAGE: Velocity Retail Group

5. AVONDALE COMMERCE CENTER - PHASE I, AVONDALE 39,399 SF LANDLORD: CapitalSource Bank TENTANT: Amware LANDLORD BROKERAGE: Cassidy Turley TENANT BROKERAGE: Sperry Van Ness

5. ARROWHEAD TOWNE CENTER, GLENDALE 18,321 SF LANDLORD: Phoenix Rolling Hills, LLC TENANT: Furniture Warehouse Factory Direct LANDLORD BROKERAGE: De Rito Partners

20 | March-April 2014

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broKers For Kids A CAUSE WORTH COMPETING FOR

VALLEY BROKERS, AGENTS GET COMPETITIVE FOR CHARITY

I

By AMANDA VENTURA Photos by COURTNEY PEDROZA/AZ BIG MEDIA

f real estate professionals know how to do something well, it’s handle competition. For the last 16 years, hundreds of local brokers worked year-round to raise donations for charity.

Then, they set aside five hours from their busy schedules to really tough it out in bouts of jumbo Jenga and bocce ball.

On Feb. 7, 600 brokers, agents and industry supporters competed in a picnic game Olympiad at Tempe Beach Park. Th is year’s event, hosted

by Active 20-30 Club of Scottsdale, included bocce ball, football toss, basketball shootouts, jumbo Jenga and corn hole. Finalists in the commercial and residential divisions squared off in a dodgeball tournament, with the winners taking home bragging rights until next year.

The real estate community is resilient. Even amidst the financial meltdown, when many teams were downsizing, going bankrupt or couldn’t afford to participate, and charity was among the least of their concerns, Brokers for Kids participants managed to raise $100,000.

For the first time since the event was founded 16 years ago, the annual Olympiad has included residential agents (whose similar annual fundraiser, Agents Benefiting Kids, has rolled over into BFK). Event chairman Mike Coy said the idea occurred to organizers about two hours after the 2013 event wrapped up.

“We immediately started talking about next year’s event,” Coy said. “Operationally, [Agents Benefiting Children] is very similar to what we’re already doing. It was a natural evolution.”

22 | March-April 2014

broKers For Kids The economy has picked up, and it’s evident in the final tallies. Teams raised $365,000. Fifty commercial teams competed, and 10 company teams represented the residential side of the business.

Commercial fundraising benefited Boys Hope Girls Hope, which places intelligent kids in less fortunate family situations into supervised homes and enrolls them in preparatory schools. Residential fundraising benefited The Care Fund, which will use 100 percent of the event donations to grant mortgage or rent to Arizona families with children

with extended illnesses or injury.

The Care Fund reported DPR’s Kyle Keller’s Team raised more than $10,000 this year, which also saw 80 new competitors from residential real estate brokerages. A spirit award for Agents Benefiting Children was awarded to Ty Lusk of Keller Williams, who raised more than $4,000 in a raffle mixer and auction. On the commercial side, Caretaker Landscape’s Dena Jones and Mischelle White took home the award for raising $9,147 by hosting an “all in for kids” charity poker tournament.

Opposite: A competitor attempts a shot to advance his team to the finals. Above: Upper left, Teams toss bean bags across the Baggo courts; lower left, CPI team captain Chad Neppl, Trent Rustan, Jason Price, Tiffany Armenta-Birdwell and Brian Ruddle at the football toss; right, Company teams put their site selection skills to good use at jumbo Jenga.

LAST YEAR: $352,000 raised 500 people 36 teams

THIS YEAR: $365,000 raised 600 people 34 CRE teams 16 RE teams

24 | March-April 2014

BROKERS FOR KIDS:

Olympiad Winner: W.M. Grace Brokers For Kids Cup: Cole Real Estate Spirit Award: Dena Jones with Caretaker Landscape

BFK & AGENTS BENEFITING CHILDREN:

Olympiad Winner: Team NextGen of Keller Williams Jason Sebring Brokers For Kids Cup: Cole Real Estate BFK Spirit Award: Dena Jones & Mischelle Arreca with Caretaker Landscape Agents Benefiting Children Cup: DPR Realty ABC Spirit Award: Ty Lusk with Keller Williams

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West VaLLeY update

BOOM,, HEADED FOR A BOOM THE WEST VALLEY IS READY TO GO

By DONNA HOGAN

Clumps of curved freeway fragments balancing

on massive pillars of concrete resemble a giant modern art sculpture greeting Interstate 10 travelers through the far West Valley of the Phoenix Metro.

Later this year, those “art” segments will gel into a multilevel interchange linking the I-10 and the Loop 303, and launch the area’s burgeoning commercial development into warp speed.

The new interchange “will be a game changer,” said Kevin Czerwinski, president of Merit Partners, broker for the 1,600acre, master-planned business park PV303, which straddles the confluence of those roadways and stretches north along the Loop 303 to Camelback Road.

For nearly a decade, the West Valley, loosely defined as everything west of Interstate 17, has been quietly emerging as the metro area’s hotbed for commercial development. It has been fueled by dwindling East Valley land availability and affordability and better transportation access. After completion of the Loop 101, developers quickly gobbled up land along the freeway for homes, shops and businesses. Then they continued the westward expansion.

Now the Loop 303 is offering another close-in frontier and shovel-ready options for new and growing businesses to expand or set down roots in the metro area. The nearly completed semi-circle of highway linking the I-10 and the I-17 will provide a high-speed route to northern states, bypassing metro area traffic congestion — a boon to companies like Dick’s Sporting Goods, which recently completed a 720,000 SF distribution center in PV303 to service its Western U.S. stores, Czerwinski said. And to other retailers such as Macy’s, TJ Maxx/Marshall’s and Target, e-commerce giants such as Amazon, and high-end manufacturers such as Sub-Zero and Cookson Doors that ferry lots of merchandise intra- and interstate.

It’s more than just big-box industrial sites popping up in the West Valley.

Acres of farm land or empty desert hide the fact that in the 26 | March-April 2014

offices of forward-thinking developers and savvy city economic strategists, there are detailed plans for office, light industrial and retail centers, medical complexes and regional malls to be built on that un-shoveled land.

“The West Valley’s day is coming,” said John W. Graham, president of PV303 developer Sunbelt Holdings.

Sunbelt was a big player in the East Valley boom of the 1990s and early 2000s, developing residential communities from McDowell Mountain Ranch in Scottsdale to Power Ranch in Gilbert and mixed-use complexes such as Hayden Ferry Lakeside in Tempe. Graham says the same scenario is playing out west of Phoenix now. Land Advisors CEO Greg Vogel compares Goodyear today to Gilbert of a decade ago.

Kevin Czerwinski

John Graham

Greg Vogel

Justin Miller

Sheri Wakefield-Saenz

Jeff Mihelich

Photo of Loop 303 construction, courtesy of ADOT.

First came the houses

As available and affordable East Valley land dried up, a spate of residential building in well-designed West Valley communities such as Vistancia, Estrella and Verrado have attracted home buyers at all price points, Vogel said.

A whopping 35 to 40 percent of Phoenix metro area residents now live in the West Valley, Vogel said. And all those people need places to shop, bank, and find medical care.

“Residential drives everything,” he said.

Now supermarket-anchored shopping centers and big-box power centers are springing up, two regional malls are on the drawing board, and spec office buildings are breaking ground — despite Valleywide office vacancy rates topping 22 percent. The completion of the Loop 303 interchange will accelerate that trend as it eases drive time for those who work in Phoenix but live in the far West Valley — or want to, Vogel said.

Goodyear, which is in the enviable location at the foot of the new interchange, has been proactive pitching its bounty. That includes PV303 and Goodyear AirPark, a 267-acre, shovelready business park at Litchfield Road and Highway 85, said Sheri WakefieldSaenz, the city’s development services director. And Wakefield-Saenz expects Westcor’s long-planned 1.1 MSF Estrella Falls regional mall to start ringing up sales — and sales tax — in 2016.

Wakefield-Saenz predicts that even more executive offices, high-end retail and high-quality manufacturing businesses will clamor for space in Goodyear during the next decade because of the in-place infrastructure and the educated workforce already living there.

Farther north in Surprise, the story is similar. In 2008, Sands Chevrolet

built the first dealership in Prasada, a 4-square-mile, mixed-use development straddling the Loop 303. Now car buyers can shop at eight different dealerships at 303 AutoShow. And more are coming, said Jeff Mihelich, Surprise’s assistant city manager in charge of the Community and Economic Development Department. Neighborhood shopping centers are in the ground or on the drawing board as well, and another regional mall is pegged to land in Prasada, although no date has been announced.

But Mihelich doesn’t want to just provide shops and services and ease the daily commute for Surprise residents.

He wants to lure more quality office and industrial employers so that residents can live, work and play in their hometown. Five years ago, Surprise reorganized its economic development department and goals to focus on becoming a major employment base, “concentrating on head-of-household jobs — people who will buy homes, go to restaurants,” he said. Major strategies included streamlining approval processes, persuading developers to pre-plan projects and build infrastructure before target tenants showed up, encouraging spec building, and aggressively marketing all those attributes, Mihelich said. That positions Surprise to take advantage of pent-up business expansion plans as the recent recession wanes, he said.

“When companies are expanding, they often have contracts in hand,” he said. Having property ready to build on can mean the difference between landing or losing a major employer, he said.

Optimistm Abounds

Surprise. Thanks to a wealth of available and affordable land, developers are eyeing West Valley cities from Avondale and Buckeye to Peoria and Glendale as future business hubs.

The Alter Group teamed up with property owner John F. Long to take advantage of the area’s growing popularity among home builders and buyers by developing three major business parks to attract employers.

Algodon Center is a 1,000-acre mixeduse campus in Avondale and west Phoenix, Aldea Centre is a 150-acre business park at 99th Avenue and Bethany Home Road, and the 229-acre Copperwing Business Park is adjacent to Glendale Airport. All three have infrastructure and zoning in place and the flexibility to accommodate Class-A, back-office and light manufacturing operations, said Justin Miller, Alter Group vice president.

“The West Valley is a big component of our future,” Miller said. “It’s an area that Corporate America can use and expand because of the abundance of land.”

He’s not concerned about high office vacancies in the metro area. The easy commute for all those road-weary West Valley residents and shovel-ready land are compelling draws for big and small employers as they ramp up their businesses, he said. Valley dwellers who haven’t ventured west of the I-17 for years might be surprised to see the explosive growth.

“If people have not been to the West Valley in a while, they should come and take a look at us,” Mihelich said. “It’s truly a robust market. People outside of Arizona are noticing.”

That optimism and pre-planning is not just happening in Goodyear and 27

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West VaLLeY update

industriaL eVoLution WEST VALLEY POISED FOR A LAND GRAB

D

ick’s Sporting Goods built a 720KSF distribution center in Goodyear to service its West Coast stores.

A California-based investor erected a 400KSF spec shell in Surprise’s Southwest Railplex business park.

Corporate giants, Macy’s, Amazon, Sub-Zero, Marshall’s/ TJ Maxx, Southwest Products and WinCo have landed or expanded their vast West Valley industrial operations within the last two years.

Even more companies are eyeing potential stakes in the burgeoning industrial parks springing up in once sleepy bedroom communities west of Phoenix.

With the recession in their rear-view mirrors, local, national and international companies are revving up manufacturing and distribution operations, and the West Valley is poised to be a big beneficiary of their expansion plans.

Available and affordable land, a deep labor pool, businessfriendly state and local governments and top-notch transportation corridors contribute to the West Valley’s desirability, said Justin LeMaster, Cushman & Wakefield's director for industrial properties.

Farsighted developers are already master-planning vast spreads of land, setting up infrastructure and even building large-scale spec structures that can accommodate another industrial giant or get sliced and diced to accommodate several smaller operations.

The developers — along with city and state economic development specialists — want their properties primed to snag the business when the lookers become movers, LeMaster said.

“Smart, creative developers will make the West Valley a 30 | March-April 2014

By DONNA HOGAN

successful high-growth market for years to come,” he said.

The numbers confirm the trend.

An impressive 4.5 MSF — nearly 94 percent of the metro area industrial construction started or completed in 2013 — is in the West Valley, according to Jones Lang LaSalle’s Q4 Industrial Report.

Q4 absorption was 1.96 MSF, and only 15.3 MSF of the West Valley’s 90.7 MSF total industrial inventory was still available at year's end.

Nevertheless, 4.5 MSF is a significant amount of new inventory for a post-recession market, and, in fact, it boosted Valleywide industrial vacancy rates above 12 percent.

Industry experts aren’t worried.

“The new, grown-up, industrial tenants coming to market right now are looking for 300KSF, 400KSF and above,” said Anthony Lydon, Jones Lang LaSalle managing director for Supply Chain & Logistics Solutions.

Less than half of the West Valley’s available space meets that criteria, and a few big employers could snatch that up in a fl ash, he said.

Like LeMaster, Lydon expects that to happen sooner rather than later.

“Over the next 24 to 36 months, the Valley, and the West Valley in particular, will see significant new job creation,” he said.

So what makes the West Valley suddenly so attractive to the industrial users?

“Economics and location,” said Pat Feeney, CBRE senior vice president for industrial services.

Justin LeMaster

David Krumwiede

Pat Feeney

Tony Lydon

Rob Martensen

CAPTION:

Cost is key Of the metro area’s three major industrial hubs — ­ the airport area, the Tempe/Chandler corridor and the West Valley — the first two are nearly out of developable land, Feeney said. And scarcity makes that land pricey, especially for a large user.

A skilled and diverse labor force that moved west when the home builders did is another major factor, he said.

“Nearly 70,000 people live in Goodyear, but only 14,000 or 15,000 work in Goodyear,” Feeney said.

When big employers like Sub-Zero, Amazon and Macy’s held job fairs for their new West Valley digs, they typically attracted eight to 10 qualified applicants for every position, he said.

“They all shared that they were so happy they could pick the cream of the crop,” Feeney said. “It’s a really big draw.”

Staffing a large warehouse is a major economic concern, especially for companies with labor-intensive, e-commerce picking systems, said David Krumwiede, executive vice president for Lincoln Property Company, which owns 6 MSF in its fourstate Desert West Region, 2.4 MSF of that in the West Valley, including Goodyear AirPark and 10 Lincoln.

Arizona’s main competition for the big industrial users looking to establish or expand operations in the West is California’s Inland Empire, Krumwiede said.

While the Inland Empire’s construction costs are comparable to Arizona’s, labor

costs in Arizona, a right-to-work state, are much lower, he said.

“We are extremely competitive with California’s Inland Empire if a user has more people than trucks,” Krumwiede said.

And big energy consumers, such as companies employing sophisticated e-commerce logistics technology, can save as much as 30 percent to 40 percent in operating costs by locating in Arizona instead of California, Lydon said.

But possibly the biggest economic incentive for many industrial users is Arizona’s much more favorable tax basis, Krumwiede said.

All of the West Valley’s large planned business hubs have designated areas that are Foreign Trade Zone capable, and that’s a big selling point for companies that do significant international business in parts or products, Krumwiede said.

“If a company qualifies, it can see a 72 percent reduction in property taxes,” Feeney said. “It’s a tremendous benefit.”

And a benefit none of the nearby states can offer, he said.

Such issues make Arizona, especially the West Valley, where land is available and affordable, a clear economic winner over California.

Location, location, location Second only to the West Valley’s attractive economics, is its advantageous location, less than half-a-day’s drive from the southern California ports — a major consideration for retailers and

e-commerce leaders like Amazon, as well as manufacturers like Sub-Zero, according to the experts.

“If you can get out of traffic and get closer to the ports in Los Angeles and Long Beach, you can make that in six hours,” said Rob Martensen, Colliers International vice president.

That means truck drivers can log a round trip and still stay within federal guidelines regarding length of time on the road, a feat not so easy to accomplish from the East Valley.

And for companies distributing products regionally — Macy’s or Dick’s Sporting Goods, for example — the completion of the Loop 303 will forge the final freeway link that can speed trucks to and around cities and states north and west of Phoenix.

“It will open the gateway,” LeMaster said. “Companies want to be in Phoenix, and the West Valley will be the industrial hub of Phoenix with the (Loop 303/I-10) interchange.”

Overall, the combo of favorable attributes will ensure the West Valley lands on the short list for large and small industrial users for the next decade or so, Krumwiede said.

“The companies that are already out there — Amazon, Target, Costco, PetSmart, Staples, Macy’s — are all household names.

It’s a great start. We’ll see more of those,” he said.

“My vision is that a lot of that vacant land will be put into production in the next five to 10 years.”

31

West VaLLeY update

VALLEY SPORTS VENUES

A SLAM DUNK FOR DEVELOPERS

By ERIC JAY TOLL

ABOVE: USA Place includes a 390-room Omni International hotel, 65KSF events center and exhibit hall, 545 Class-A apartments, 180KSF of street level retail, 240KSF of office space and underground parking. Courtesy of Concord Eastridge.

T

he Valley is already home to the largest concentration of Major League Baseball fields, used during the Cactus League Spring Training, but even more sporting venues are breaking ground and with them a variety of mixed-use retail, hospitality and multi-family developments. USA Place, Avenue Shoppes at P83 and Riverview Park are such milestone investments in the Valley. Between the three projects, more than three-quarters of a billion dollars is coming out of the ground next to major sports venues. There’s something to be said about the generating return of investment when a few months of star-quality use also needs to spur another eight to 10 months of revenue.

The key behind the three projects is that developers are focused on what happens when USA Basketball and Major League Baseball Spring Training games are not fi lling the stadiums. It’s the “off-season” activities that return the investment and ensure successful revenue streams. These are “they’re coming; now we can build it” developments. However, each has its own business plan for success.

32 | March-April 2014

a citY buiLt around a campus

When USA Place, the largest of the trio, broke ground in February, it became the second-largest Phoenix Metro project under construction. Its $450M price tag is second only to the nearby $600M Marina Heights project. Designed by Future Cities, one of the development partners, and Architekton, the single-phase project is being built by Turner Construction. CBRE is handling the office and residential leasing; Cushman & Wakefield is leasing the retail.

The joint venture that is USA Place LLC is run

by Scottsdale-based Concord Eastridge. CEO Susan Eastridge says the project is the ultimate urban mixed-use development. Located on the future Tempe trolley line, USA Place is the new home to USA Basketball and Arizona Interscholastic Athletics. When it comes to fi lling the venue, AIA and landlord Arizona State University are the ones who will keep the 65KSF events center fi lled 10 months of the year. Eastridge says there are already 200 events a year locked into the facility.

“Th is is a community where people can literally live, work and shop,” explains project manager Alisa Cutright-Thompson. “We have retail shops, apartments for professionals, the

Susan Eastridge

Alisa Cutright-Thompson

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West VaLLeY update events center, meeting space and a hotel in a single urban complex.”

“We’re building something that ASU and Tempe have wanted — a class-A hotel and mixed-use community,” says Eastridge. “The AIA will fi ll the center with more than 200 events per year. Conferences and meetings from the hotel will fi ll the rest. The residents will connect with the shops.”

ABOVE: The Cubs Park stadium has touches of Wrigley Field. The bricks behind home plate and the scoreboard are replicas of the same facilities at the Chicago ballpark. The Sheraton Hotel and Wrigleyville will be east of Cubs Park. Photo by Eric Jay Toll

mesa ‘ViLLe pLans Year-round action

Aerial View from 83rd Avenue

Date: November 25, 2013

ABOVE: The high-rise, full-service hotel- and tallest building in Peoriawill have 140 rooms and likely carry a Hilton brand. The restaurant-retail complex will include more than 245KSF in space. The city is paying $30M for the twin parking garages that PSP LLC will build. Avenue Shoppes at P83. Courtesy of Peoria Sports Park, LLC.

a Venue For Westsiders

One of the largest projects in the West Valley will be the $150M mixed-use retail and hospitality development called the Avenue Shoppes at P83. Anchoring the main gate of the Peoria Sports Complex, the project brings life to the P83 entertainment district the city is trying to create.

“Th is is going to be a destination,” says Peoria Sports Park LLC managing member Michael Oliver. The Peoriabased developer says his personal experience is what led to the vision for the facility. “There are no entertainment and shopping destinations in Peoria. We’re going to anchor this with a complex that is in a category falling between Scottsdale Fashion Square and Kierland Commons. It will be a place to go and stay, not just shop and run.”

The development includes city-funded parking garages and a 140-room, high-rise hotel. Not including the rooftop bar, there are 245K SF for restaurants and shopping. PSP is looking at a major fl ag for the hotel, which will be set on top of the retail complex on city-owned land.

The Avenue Shoppes will start construction in the next year and is estimated to costing $150M. Michael Baker Jr. Inc. is handling design duties; a contractor has not been selected.

CBRE is consulting on leasing.

“Th is is new money in the market, and it’s a destination with both regional and local opportunities,” says Mesa Mayor Scott Smith about the showcase Cubs Park and hometown Riverview Park complex nestled against the Loop 101 and 202 freeways in northwest Mesa. “It’s the anchor for a lot of activity,” he adds. “Wrigleyville’s hotel and shops provide an opportunity for conferences and sports events.”

The city invested more than $90M into Cubs Park and another $30M into the recreation and sports facilities at Riverview Park. Structures, Inc., and Powers Hotel Corp. will build a full-service Sheraton Hotel next to Cubs Park, along with 20K SF of retail space in the first phase.

Construction starts this summer and developer Bob Yost expects it to be completed in time for the Super Bowl.

Structures Inc., with Yost as CEO, is handling the designbuild. It’s estimated that the hotel-retail project will cost more than $60M, but no one from Structures would confirm the price tag.

ABOVE: A site plan of The Avenue Shoppes at P83, a $150M mixeduse retail scented near the Peoria Sports Complex. At 245K SF, it’s one of the largest developments planned for the West Valley.

34 | March-April 2014

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construction in indian countrY

SALT RIVER PIMA-MARICOPA

indian communitY Goes commerciaL

S

By AMANDA VENTURA

alt River Pima-Maricopa Indian Community may have one of the best-located pieces of commercial real estate in the Phoenix Metro. It owns a 9.5-mile long area, known as the Pima Corridor, parallel to the Loop 101, a beltway connected to nearly all area freeways.

Of that commercially zoned stretch, 143 acres remain undeveloped. Many Valley residents primarily associate the Talking Stick entertainment district with the Pima Corridor, the SRPMIC is seeking significant nonentertainment development within and without Talking Stick, including two charter schools and also procuring resources to update its existing data center.

“The SRPMIC is a pretty sophisticated community and as the community grows in population and business ventures, the adoption of technology also grows,” says SmithGroupJJR’s Technology Studio Leader Rob Sty. “[Records are] all stored electronically now. The community has gotten to the point that it needs to expand its data.”

As with any building on the community’s land, the data center must incorporate the culture’s aesthetic integrity.

The challenge is that data centers, out of concern for security, tend to also be designed as background buildings.

“Architects and engineers do not always get to put that design element into a data center. It’s interesting for us,” Sty says, adding that designing a project for the SRPMIC was a community effort: “It’s a lot more interesting when all the groups are engaged. Everyone has a voice, and you come out with a better project.”

36 | March-April 2014

NOTCHES ON A TALKING STICK

A Talking Stick is a contemporary representation of the traditional O’odham (Pima) calendar stick, on which carvers recorded significant events and milestones throughout the year. It is also the namesake of the Salt River Pima-Maricopa Indian Community’s entertainment district, which comprises about half of the tribes’ commercial land reserves. Talking Stick is a 1.1 MSF entertainment district consisting of a casino, resort, golf course, spring training facility and retail center called The Pavilions. Opened in the ‘80s, the Pavilions represents the second carving on Talking Stick’s calendar — the first being the union of the two tribes who comprise the community. The bottom of the stick shows vacant space with room to grow — and one of the many projects underway this year and next may just be the next addition.

The 1.1MSF Talking Stick’s build-up is due to a prodevelopment attitude of the community leaders as well as developers keen on getting their foot in the door of a burgeoning entertainment district. Since much of the traffic speeds by Talking Stick at 65 mph, designing for the corridor requires those such as PHX Architecture’s Erik Peterson to not only create something fun to visit but also something eye-catching from afar.

Peterson’s design for The Cove Family Fun Center, a metallic mesh-wrapped building with blue accent lighting around it is certainly made to pique the attention of freeway passengers. The building has to capture your attention, he says of his recent work on The Cove Family Fun Center — a 60KSF entertainment center. The basket-like building is set to break ground on SRPMIC later this year. Nick Andrews, developer of The Cove, was drawn to the Salt-River Pima Indian Community for his first project on tribal land due to the community’s proactive reputation.

“They’re really pro-growth when it comes to developers like us who have an entertainment-related venue,” Andrews says.

Just in the last 12 months, Talking Stick has seen development of a Courtyard Marriott, OdySea projects, Top Golf and other attractions. Blessing McAnlisVasquez, marketing project manager of Talking Stick, says it’s a combination of tribal leadership and private developers’ vision for tourism and entertainment amenities that has led to its recent success.

“Our leadership always looks ahead seven generations,” McAnlis-Vasquez says, though the present is just as exciting.

Though the SRPMIC has a population of 6,000, Salt River Fields, built in 2009, has more than 12 annual events, some of which bring up to 15,000 guests. The

proposed OdySea Aquarium, set to break ground later this year, is designed to accommodate 15,000 visitors a day and will be the largest aquarium in the Southwest.

Leasing at the Pavilions is at 87 percent, up from 50 percent at the downturn of the recession.

The shopping center has also seen more than $17M in renovations. Though The Cove Family Fun Center hasn’t signed a lease yet, the 60KSF entertainment venue is working proactively with the tribe to open for business by summer 2015.

THE RISE, FALL & REBIRTH of the PAVILIONS

When the Pavilions at Talking Stick was built, it was the freshest take on retail super centers. As time passed, ownership and management changed hands and the center fell into disrepair. Marty De Rito and business partner Chuck Carlisle scooped up the property for $85M in January 2008 with 85 percent of the property leased. In 10 months, the recession dropped vacancy to 50 percent. Six years later, De Rito is just now breaking even on its purchase.

“This property could have taken our company down,” Carlisle says. “Fortunately, now we’re about 87 percent leased. The tribe has been phenomenal in assisting us with the renaissance of this property.”

Just like the road through the center of thePavilions to SRF, it goes both ways.

It was De Rito who got wind of the Diamondbacks’ desire to move north for spring training in 2009, and Carlisle attributes his partner to bringing what would be a catalyst for the entire district to Salt River Fields.

“It’s an interesting thing when you have non-retail activity going on at the center. Salt River Fields helped this property to survive,” Carlisle says.

Though SRF was a catalyst for businesses built up around the area and meant a surge of restaurant interest in Pavilions space, there was still one more hurdle De Rito Partners looked to clear — alcohol.

Until 2010, the only establishments that could serve liquor on tribal land were the hotel, casino and golf course — all owned by SRPMIC. De Rito Partners couldn’t bring restaurant tenants to the Pavilions if they needed a liquor license. Now, there’s a Red Robin under construction as well as business with Buffalo Wild Wings.

“There was no barrier for entry after that,” Carlisle says.

The other saving graces for the Pavilions — lending (De Rito’s lender was General Electric, a bit more flexible than a regulated bank would have been) and moving an office to the Pavilions.

“We’ve probably saved half a million dollars just being onsite,” Carlisle says, adding that the added attention to the property is what has contributed to the Pavilions’ return to its potential.

37

construction in indian countrY PROJECTS IN THE PIPELINE

oDysea aQUaRiUM

DEVELOPMENT AND MANAGEMENT TEAM: Amram Knishinsky, Martin Pollack and Rubin Stahl GENERAL CONTRACTOR: McCarthy Building Companies ARCHITECT: Deutsch Architecture Group LOCATION & CITY (major crossroads/exact address): Via De Ventura and the 101 in Scottsdale at the Salt River Pima-Maricopa Indian Community SIZE: 200KSF BROKERAGE FIRM: N/A VALUE: $175M ESTIMATED COMPLETION DATE: 4Q 2015 The OdySea Aquarium will be the largest aquarium in the Southwest and in the unlikely setting of the Sonoran desert. The two-level facility will span more than 200KSF, and visitors will move to each level via acrylic tunnels while viewing animals of rivers and oceans in the world.

GReat HeaRts aCaDeMy - CiCeRo CaMPUs

DEVELOPER: De Rito Partners Development GENERAL CONTRACTOR: Chasse Building Team ARCHITECT: Gensler LOCATION: NWC Loop 101 & Indian Bend Road, Salt River PimaMaricopa Indian Community SIZE: 85KSF BROKERAGE FIRM: Keyser/Mulhern Development Team VALUE: $10M ESTIMATED COMPLETION DATE: July 2014 This nonprofit, tuition-free K-12 charter school will cater to 1,200 children in an area that was once occupied by a Chuck E. Cheese at the Pavilions Shopping Center. Phase I will accommodate students in grade K-7 and Phase II to 12th grade.

tHe CoVe FaMiLy FUn CenteR

noaH WeBsteR sCHooL â&#x20AC;&#x201C; PiMa CaMPUs

DEVELOPER: Noah Webster Schools & Salt River Devco GENERAL CONTRACTOR: Adolfson & Peterson Construction ARCHITECT: Adolfson & Peterson Construction LOCATION: Pima & Jackrabbit roads, Scottsdale SIZE: 51,502 SF VALUE: $5.4M COMPLETED DATE: July 2014 The two-story framed K-6 charter school facility will feature 32 classrooms, including music and art rooms, a multi-purpose gym with cafeteria and stage, office space, conference rooms, play fields and bus parking. The project has been in planning and design for a number of years and the groundbreaking represents a significant milestone for Noah Webster Basic School and the Salt River PimaMaricopa Indian Community's STEM education.

38 | March-April January-February 20142014

PROJECT NAME: The Cove Family Fun Center DEVELOPER: Nick Andrews & David Prom GENERAL CONTRACTOR: AR Mays Construction ARCHITECT: PHX Architecture LOCATION: NEC of the Loop 101 Via de Ventura Interchange on the Salt River-Pima Maricopa Indian Community SIZE: 67KSF VALUE: $13M ESTIMATED START AND COMPLETION DATE: summer 2015 The Cove Family Fun Center is slated to include 19 themed birthday/event rooms, laser tag, bowling, arcade games, laser tag and go-karts.

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39

construction in indian countrY

BUILDING

THE BRIDGE

CIIC Conference Sets Sights on University Program By AMANDA VENTURA MEETING OF THE MINDS: Jeff Ehret interviews CIIC founders Jefferson Begay and Urban L. Giff during the 2013 conference opening.

E

ntering its 11th year, Arizona State University's Construction in Indian Country conference is a means to recruit prospective Native American construction students, educate local tribes and foster industry connections. It is also a key contributor to the CIIC endowment, which has raised $400,000 and put 14 students through the construction management program at ASU. It is currently supporting nine undergraduates, including Shane Cody who came to the program after working in the industry as a field laborer.

“I really enjoyed my working experience in the field, but I knew that obtaining a management position would require me to obtain a construction management degree from a university,” Cody says.

Cody contacted the CIIC through the suggestion of his ASU adviser and has since landed two internships with DPR Construction offices.

Program chair Allan Chasey, at the Del E. Webb School of Construction, is proud of what the CIIC conference and endowment have accomplished, but when he stepped into his current role at the school a year ago, he says he saw more to the CIIC culture; he saw a full academically involved program. The first step toward making the conference into a year-round program was replacing an events coordinator with a program manager. The department landed Jerome Clark, who had extensive experience with the Intertribal Council of Arizona and an understanding of Chasey’s vision.

“The question we find ourselves asking more often is nationbuilding for tribes — what does it take for a tribe to build up their nations. build up its hospitals, roads, etc.,” Clark says.

The CIIC’s updated vision includes more conversations with tribes, research into tribal construction laws and potentially building a clearing house. But first, CIIC must address its 2014 theme, “Bridging Our Communities - Building for Our Futures,” — the key to its future as a program.

THE CONFERENCE:

11TH ANNUAL CONSTRUCTION IN INDIAN COUNTRY ➤ ➤

40 | March-April 2014

April 28 to 30 Wild Horse Pass Hotel & Casino 5040 Wild Horse Pass Blvd., Chandler

The same principles that guided McCarthy back in 1864 still guide us today: a willingness to work hard to bring exceptional value to every project, genuine people whose character defines honesty and integrity and the spirit of working as one to be the Best Builder in America.

As a 100% employee-owned company, weâ&#x20AC;&#x2122;re proud of the partnerships and projects weâ&#x20AC;&#x2122;ve built in Arizona and across the U.S.

2014 mccarthy.com

CONSTRUCTION IN INDIAN COUNTRY

L

AWS OF THE LAND Navigating Development in Indian Country

By AMANDA VENTURA

A

nyone who has tried to develop on one of the 22 federally recognized Indian tribes’ land in Arizona has probably encountered the patchwork of land ownership that can sometimes make it difficult to build. Land on reservations can be owned by the tribe, held in trust and owned by an individual (both allotted property and non). Recently, Polsinelli’s Gerrit Steenblik and Anne Kleindienst shared that to negotiate a 55-year land lease for the development of the Noah Webster school on the Salt River Pima-Maricopa Indian Community, they had to work with many departments of the Salt River Pima-Maricopa Indian Community, including the general counsel’s office, the economic development division, the treasurer’s office, the education administration and the community’s public relations office, as well as the Bureau of Indian Affairs and the allotted land owners.

Each tribe functions as a sovereign nation and provides a variety of governmental services to tribal members.

“Because few tribes tax their members, many tribes engage in commercial activities to generate sufficient revenue to provide these services,” says Roxann Gallagher, attorney at Sacks Tierney. “As a result, we have traditionally seen a mix of bonds, either tax-exempt or taxable, issued to acquire, construct or improve both governmental and commercial facilities.”

With the introduction of the American Recovery and Reinvestment Act of 2009, came $2B meant to broaden the reach of tax-exempt funding for commercial development. A significant portion of that $2B volume cap for tribal economic development bonds are still available.

Native American communities can issue tax-exempt bonds to finance construction projects that will benefit their own community, such as government and community buildings.

Various departments also offer federal grants to fund schools, pre-school programs, health care, and infrastructure, including water systems and roads in Indian country.

“Keys to success [with regards to building in Indian country] included the personal relationships, long-range planning to avoid last-minute glitches and the fact that the new Noah Webster School responded to a genuine need of the community, leading to a win-win result,” says Steenblik, who was the borrower’s counsel for the Noah Webster School being constructed on the Salt River Pima-Maricopa Indian Community. The construction of the new Noah Webster

Ed Rubacha

42 | march-april 2014

Schools-Pima project within the Salt River Pima-Maricopa Indian Community is being funded by a tax-exempt bond issued by the Industrial Development Authority of Pima County that is only available to tax exempt, nonprofit and non-Indian owned business.

“Construction financing undertaken by a tribal government or tribal governmental entity has many of the same challenges as any other governmental financing in terms of timing, structure, respect for political processes, and adherence to regulatory requirements,” says Gallagher. “Most notably, however, there are some additional legal and business issues that must be considered if certain tribal real property or restricted revenues are intended as security for the indebtedness. For instance, there are federal restrictions on the alienation of tribal property, potentially complicated title issues, and limitations on recourse against some potential sources of repayment.”

Though Jennings, Haug & Cunningham’s Ed Rubacha says it’s unlikely for tribal communities to resist payment by declaring sovereign immunity after a project is completed, the disputes of the Hualapai Skywalk and Ranch can make some developers nervous. Granted, if it’s a large project, Rubacha says, with a well-known tribe it may be smart to ask for a waive of immunity. A recent example being the Navajo Nation waiving its right to declare immunity on a $500M purchase of a coal mine being purchased by the Navajo Transitional Energy Company.

In the early 2000’s, the Navajo Nation decided to build its first casino in Arizona. It wouldn’t break ground until 2011 or open until May 2013. Twin Arrows employs 1,300 people and will make $45M a year. Instead of enlisting the help of a commercial bank, developers worked with the Navajo government to secure adequate funding.

“In 2009-10, the capital market was really soft,” says Navajo Nation Gaming Enterprise Chief Executive Darrick Wachtman. “Wall Street wasn’t lending to the casino startups.

There was no activity. It was a good opportunity for the nation to get good returns. The interest rate was higher than market.

It’s dependent on the cash-flow leverage.”

As for developers, Gallagher reports positive feedback: “Sacks Tierney’s clients have found that successful tribal finance transactions are akin to hitting a perfect golf shot in that the result is well worth the effort.”

Roxanne Gallagher

Gerrit Steenblik

Coming n ext issue Featured topics include: • Financing Real Estate • Healthcare Development & Construction • CCIM/Certified Commercial Investment Managers • USGBC/Green Building Supplement • AAED EDDE Awards • The Rockefeller Group Supplement • Valley Partnership Supplement

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43

CORENET GLOBAL

ENGAGING THE ENTERPRISE Corporate Real Estate Executives Make Space in a Changing Workplace

By AMANDA VENTURA

T

o add value to a corporate end user, you have to learn to think like one.

That starts with realizing a client’s No. 1 business isn’t real estate, says Colliers International’s Bill Littleton. The executive vice president of Colliers’ corporate solution group works with six national and global corporate end users and has 25 years of experience. Yet, he remains an active member of the local chapter of CoreNet Global, an organization that serves the corporate real estate community comprisef of members from the brokerage community, end users and support industries.

It’s at the monthly meetings and annual summit, he says, that he really learns the needs of his clients.

“To add value, is to get involved in CoreNet Global,” says Littleton, who has been a member for more than a decade.

“CoreNet is a think tank for all the trends and issues related to corporate users of space.”

Arizona Commerce Authority’s Hilary Hirsch says economic developers are seeing more companies create an internal real estate division instead of relying on a third-party source.

“This shift is due in large part to the critical value and insight that corporate real estate professionals add to a company’s overall success whether in increasing their bottom line or forecasting trends in the market,” Hirsch says.

This echoes Littleton’s point of thinking like an end user.

Bringing the market trends to the table is important for brokers’ clients, but in return corporate executives can share their concerns — efficiency, for example — with brokerages as well as other CoreNet members, such as furniture suppliers.

“Leaders in the corporate real estate industry have evolved from focusing on leases and facilities management to serving as change agents, innovators, facilitators and strategic experts,” contributes Colliers’ Tivon Moffit.

Mark Singerman, Vice President and Regional Director of The Rockefeller Group, has been a CoreNet member for two years as a means of saving money.

“Knowing what issues end users face and providing cost-effective solutions are what the most successful CRE professionals do,” says Singerman, whose company has built for General Mills, Sumitomo and BASF. Examples of useful information, Singerman says, includes rent and sale comparisons from commercial brokers,

44 | march-april 2014

build-to-suit buildings for sale or lease to end users, general contractors for renovations and new facilities for end users.

With the big push for office efficiency and “right sizing.” there’s less need for large leasable areas. Though that means less space for Littleton to lease, the value proposition for his clients is the real gain.

“It’s like anything else, if you’re true to your cause and you don’t waiver in it, you’ll be fine,” Littleton says. “The world is changing; either change and add value or get out of the way.”

There’s may be a third option, though, suggests one corporate executive — make your own way.

CENTRAL COMMAND

While the world is changing, it helps to be ahead of the curve. Leo Bauman recalls jotting a note on a napkin 20 years ago that would take years of lobbying and research before it could be realized. Seven of Wells Fargo’s office leases were set to expire and he thought, "Why not consolidate the workforce on a centralized campus environment?" After nearly a decade of preparation, the first 410K SF Wells Fargo campus in Chandler broke ground, making way for a few thousand employees. Ten years later, history repeated itself and Wells Fargo announced plans to double its existing presence with a 410KSF expansion — and that’s not even the half of it; the master plan calls for three more buildings that will bring the campus to 1.74M SF. Bauman, the vice president and manager at Wells Fargo, heads the Corporate Real Estate Group for Arizona’s fourth-largest non-government, non-education employer in the state. It’s his department’s job to manage the office space and utility for 85 lines of work comprised of 16,192 employees. Bauman is a long-time member of CoreNet. Though the Wells Fargo Campus wasn’t facilitated through a CoreNet connection, many corporate executives and brokers are working closely to increase efficiency, even if that means rightsizing office space, and to accommodate the changing workplace. One of the greatest challenges, notes a recent white paper and case study published by CoreNet, is determining respective departments’ needs and how to make sure those are met in a space.

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At Avnet, Inc., Bob Gracz’s role is to develop strategic positioning and help his company get most efficient use of space. The CoreNet Global Arizona’s President says the key to success in his position is about being an early adopter and having a discerning eye for trends. Gracz spearheaded Avnet’s Arizona transition to a Regus executive workplace that promoted flexible space for remote workers.

“What has evolved in the last 10 years is phenomenal, where we’ve gone from a work state where everybody is sitting in an office to literally where almost everybody is working remotely these days,” Gracz says. “Think of what that does for productivity of the employee, think of what that does for cost management inside a company and think of what that does for quality of life of an employee.”

Avnet is also finding ways to make its existing office space versatile for different lines of work within the company through the use of technology.

“As the square footages of offices and work stations are generally decreasing, corporate institutions are definitely paying more attention to creating work environments tailored toward flexibility, mobility and associate amenities,” says Holder Construction Company’s Keyvan Ghahreman.

Regardless of innovation, corporate executives are always battling what Gracz calls the “expense scenario.”

“Everybody looks at real estate as an expense, but if you really understand how that expense is looked at in the corporate world, you can better position your strategies to be very valuable to the company,” Gracz says, adding that 70 percent of Avnet’s expenses is personnel-related.

“We only have 30 percent of expenses that are not peopleexpenses, so we have to manage that very well,” he says. “We want to keep the people. We want to bring more in. I look forward to the day when it’s 80 percent.”

Gracz's staff of three manages offices for 8,000 people. They were recently approached by Avnet to advise on increasing real estate efficiency within the company’s other regions. Gracz credits CoreNet Global’s emphasis on understanding financial acumen, among other things, to his success.

“Technology, where and how people work—the space—has changed dramatically and, more than ever, the relationship among commercial real estate, human resources and IT is fundamentally critical,” says GPE’s Michael Brinkley.

Gracz's first Regus executive office structure five years ago was unsuccessful due to an expensive and cumbersome dynamic between his existing real estate and IT. His current adaptation, he says, is far more successful and will save $2M annually. That’s about 20 percent of the group’s facility expense — and that’s just the beginning.

46 | march-april 2014

THE TIME-SPACE CONTINUUM OF

REGUS SPACE

GENERATION Y

CORENET GLOBAL E verything in moderation. It’s an adage applied to a balanced diet, lifestyle

and, increasinly, work environment. As corporate real estate professionals assess the office spaces an upcoming workforce finds most attractive, the trends lean away from cubicle-centric offices of former generations.

In 2008, architecture and design firm Gensler outlined four work modes - focus, collaborate, learn and socialize - that affect workplace efficiency and employee satisfaction. Gensler most recently found the most efficient work places have a balance of focus and choice in the workplace to keep up satisfaction, perfomance and innovation. Since 2008, many technologies and distractions have been introduced to the workplace. Overall performance dropped by 6 percent in five years. Office spaces also became more dense over the years, dropping from 225 SF per person to 176 between 2010 and 2012.

More than half of the people surveyed by Gensler claimed to be disturbed by others when trying to focus. Just under half of the surveyed workers try to block these distractions. “Workplaces designed to enable collaboration without sacrificing employees’ ability to focus are more successful,” the study states.

Target Commercial Interiors’ Director of Marketing John Jurgensen likened the total separation of collaborative and focus space to putting a smoking section on an airplane — it just doesn’t exist. Target says it has been tasked by its clients to outfit a workspace with the accessories that mask sound and help keep collaborative workspaces or nearby focus spaces functional and efficient. Gensler’s 2013 U.S. Workplace Survey suggests that employers who provide flexible office space also have higher-performing employees.

A Cornell University study of small businesses found that companies with flexible work environments had one-third the turnover and four times the growth. In 2010, Gensler was hired for a $6M buildto-suit by Polsinelli law firm with the goal to increase collaboration. Though Polsinelli wasn’t able to quantify the effect of a more efficient space with multiple options for workspace, office administrator Derek Anderson does feel the office is more purposeful and the work environment is more accomodating of employee needs.

Another trend to watch for is that of well-being, says Target’s Tjia Richmond.

“Well-being was never really considered before,” she says. “It’s become so competitive in the workplace, that employers are taking a broader look.”

CORENET GLOBAL

A YEAR IN REVIEW:

Q&a Q& &a

BOB GRACZ

REFLECTS ON CORENET PRESIDENCY, MEMBERSHIP GROWTH

By AMANDA VENTURA

B

ob Gracz, vice president of corporate real estate at Avnet, Inc., took on the role of president of CoreNet Global Arizona just last year and is encouraged by the status of his platform goals to grow the membership and organization's local activities through the instatement of new committee chairs.

“I’m enthusiastic about what we’ve accomplished so far and am really excited that everyone is keeping the momentum going,” he said of his recently appointed chairs. Gracz took a few minutes out of his day to talk about the future of CoreNet Global Arizona and what the local chapter has planned for the next year.

You’ve been president of CoreNet Global Arizona’s chapter for just about a year. Looking back, what significant progress has been made with regards to your goals as a chapter president? ➤ Primarily the main goal I wanted to accomplish was setting up a structure that allows us to grow and operate with discipline and accountability. We’ve been able to accomplish that. We’ve been able to set up a number of chair positions and define the required accountability and have the people drive themselves toward meeting goals. I’m very excited that one of the long-term goals in that structure was to create a senior advisory group. […] We recently appointed a chair of education, and we’re in the process of closing on the communications and marketing chair. […] Some of the evidence that the structure is delivering what the chapter intended to do, which was create networking and drive educational awareness to people in the local chapter, that evident by our growth and membership and more participation as local chapter associates. (See interviews with chapter chairs on page 46.)

How have your goals evolved over the last year? ➤ It’s a journey and I fi rmly believe with the right structure, discipline and people — let’s face it, this is a volunteer situation so people have to be passionate — the program will be self-feeding.

48 | march-april 2014

What remains a core focus or concern for a majority members? ➤ The main focus is continuous networking and learning more about how the business is evolving. You can roll the tape back 10 years and there was a lot of office space and what not and now the latest thing is all about work-remote management and companies are becoming extremely efficient at using space, and everybody feeds on that. So, you have an end-user that wants to learn more about how they can do that. You have a landlord that’s saying I need to better understand this so I can position my product to be ready now to help you. That’s really what we’re really bringing out there.

It’s leading edge. It’s current time.

One of your platforms was to increase the number of meeting and training options. Have those gone into effect yet? ➤ We have a regular program schedule. We have about 10 programs once a month; the summer months are off-months.

We have just introduced the education chair. The goal of the educational chair is to get us to the point to where we have four educational circumstances a year. Once we accomplish that, the desire will be to have at least four and one of them be one corporate CoreNet wants to bring here.

Have you seen an increase in membership? ➤ Yes. When we fi rst started this journey, we were at about 85. Today, we’re sitting on about 129. It’s been quite a big improvement and right in line with the metric we tossed out — 20 percent a year. I think the team’s up for it, and I’m looking for another 20 percent next year.

Who comprises a majority of CoreNet Global Arizona’s membership? ➤ More often than not, the end-users are usually the minority. You usually have a larger broker content, but we’re having a good mixture of what I call the feeders — architects, title companies, interior design and companies that assist corporate real estate — and I think in our chapter we’re having a large success of bringing in the people who help us do our jobs.

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49

CORENET GLOBAL CORENET'S COMMITEE CHAIRS

KEYVAN GHAHREMAN VICE CHAIR OF PROGRAM COMMITTEE HOLDER CONSTRUCTION COMPANY

What’s your committee role at CoreNet? The Programs Committee plans and organizes the Arizona chapter’s monthly luncheons, networking events and annual signature event. The committee selects the topics for each program, develops the publicity, and promotes attendance at our events. The committee strives to relate program content to the trends within and evolution of the corporate real estate market. priority.

What are the goals of the Planning Committee and how will they be achieved?

My goal is to continue building on our successful events, and to challenge the Program Committee members to reach into their respective industries to find the best program topics that have a high impact for our membership.

With the diversity of our committee and CoreNet membership, we are fortunate to be able to leverage a broad network and talent pool in this effort.

50 | march-april 2014

HILARY HIRSCH

EDUCATION COMMITTEE ARIZONA COMMERCE AUTHORITY What is your role at CoreNet? The Education Committee is committed to providing corporate real estate professionals the opportunity for further education, ensuring that seasoned or new corporate real estate professionals can accelerate their careers by providing basic access to training courses that are focused on the strategic management of corporate real estate.

What are your goals in your chair position and how will these be achieved?

My No. 1 goal is to make CoreNet Global a local resource for corporate real estate professionals to gain access to programs and courses provided through the global chapter. My path to achievement will be working in tandem with CoreNet Global’s professional development team to bring accredited programs for the Arizona chapter to utilize for certifications and licenses.

CHRISTOPHER KEWSON MEMBERSHIP COMMITTEE NEWMARK GRUBB KNIGHT FRANK

What is your role at CoreNet? The Membership Committee is responsible for finding and retaining CoreNet members and collaborating with other committees.

What are your goals in your chair position and how will these be achieved?

Our goal for this year is to grow the membership base by 20 percent.

First, our goal is to start with the existing members renewing for 2014. Historically we have a big drop off in memberships each year… so this goes back to focusing on our members in helping them get involved in CoreNet with whatever their interests may be.

Secondly, is recruiting the right members.

The focus and goal for CoreNet here in Arizona is to have each end-user as a member.

Arizona in general isn’t a big end user market so we also focus on other industries and potential members that have some type of afflation in CRE.

TIVON MOFFITT

JAMIE SWIRTZ

What is your role at CoreNet? The Sponsorship Committee is responsible for increasing sponsorship commitments to the organization.

Sponsorships are a critical component of the local chapter’s finances.

What is your role at CoreNet? To provide young leaders (35 years of age and under) with access to the knowledge and experience of industry professionals by means of establishing relationships, promoting continuing education, fostering peer networking and encouraging active roles in the community.

SPONSORSHIP COMMITTEE COLLIERS

What are your goals in your chair position and how will these be achieved?

My top goal is to increase local sponsorships of the chapter. Retaining our current sponsors and signing up new sponsors enables us to have quality programming.

YOUNG LEADER COMMITTEE CBRE

What are your goals in your chair position and how will these be achieved?

The Young Leaders’ Committee goals are to build relationships within the group, further advance our knowledge of corporate real estate and continue to increase membership involvement in the organization and the CRE community at large. Holding three to four Young Leader events per year will be key in achieving our goals.

INSTITUTE OF REAL ESTATE MANAGEMENT

IREM SEEKS BALANCE

AMID PROJECTED TALENT SHORTFALL

C

ertified Property Managers (CPMs) in the United States manage nearly $2 trillion in assets and 10.4 billion SF of commercial space. A significant amount of these CPMs are expected to retire in the near future without a generation of up-and-comers to replace them. The future would appear bleak to owners and investors seeking replacements from a dwindling talent pool since the U.S. Department of Labor reported an increased need for real estate managers of 15 percent between 2006 and 2016. However, the Institute of Real Estate Management (IREM) is working to combat the projected talent shortfall.

“Th is demographic reality, combined with a management function that has become more complex and sophisticated, has created an almost perfect storm that is boosting demand as never before,” says IREM spokeswoman Sharon Peters.

The organization’s brace for impact was buffered by 2013’s membership numbers, which rose by 5.7 percent and passed the 19,000 mark for the first time since IREM was founded in 1933. Though the talent shortfall is not an IREM challenge per se, Peters says, the organization established “a very aggressive program” to promote real estate management as a career option to young professionals. IREM has formal agreements with 15 universities to increase educational opportunities. IREM provides information about what appeals to the next generation to current members who want to attract and retain young talent. Mortera says some of the trends mentioned at IREM’s fall leadership conference were expectations for more rapid promotion, a coaching approach to management and the use of state-of-theart technology.

“IREM is positioned

52 | march-april 2014

BY AMANDA VENTURA

to play a key role in helping members attract and develop new talent because of their designation programs, publications and continuing education opportunities,” says Alliance Residential’s Senior Vice President of Performance, Tina Mortera.

The IREM Foundation recently approved requests from the Student and Academic Outreach Department to fund the development of an intern guide and to expand and redistribute its “Careers in Real Estate Management” booklet, according to the IREM website.

“Alliance Residential has deployed several programs and adjusted our communication style with associates to increase retention while making Alliance a great place to work and pursue your career,” Mortera says. “We have created several new communication channels using digital and highly visual media, ongoing themed competitions with prizes as well as a stylish apparel program. We have also adjusted our incentives and recognition programs with measurable, transparent metrics so that associates receive immediate and on-going feedback on performance.”

Alliance has already seen the job market become more competitive in several markets, including Arizona, Mortera says.

“Our increased participation and partnership with IREM was driven partly by the organization’s relationships with colleges and universities, and our desire to network with those students,” she says. “I made the acquaintance of several IREM student members at the recent Leadership Conference held in Scottsdale last October.”

IREM Arizona’s Chapter President Bret Borg, president of Borg Property Services, says that when Jay Butler retired from ASU’s real estate program in 2011, IREM lost its educational outreach and teaching

opportunities. The local chapter is using 100 percent of its charitable donation funds for new scholarships to train and attract the next generation of property managers. Three Arizona State University students received scholarships in 2014 through the IREM Young Professionals program, says its committee chairman Melissa Boyle, a CPM with Arcadia Management Group. ASU has 94 students in its real estate minor (undergraduate level) and 28 students in the Master of Real Estate Development program (graduate level). ASU also has an executive-education real estate certificate beginning in March.

The IREM Young Professionals program started back up in 2009, after a brief hiatus, says Rosati.

“It seems not long after the committee regrouped and we received a bit more

direction, the program increased its participation over the last three years,” says Whitestone REIT’s Steve Rosati, who has served on the commiittee for the last four years.

Outreach includes events, happy hours, educational/facility type gatherings.

“We not only want them to become involved in the networking luncheons and social events but, we encourage them to develop their knowledge of the industry practices and standards using the educational tools available to them locally and online,” Rosati says.

“The younger industry professionals are what allows IREM to continue on into the future,” Rosati says. “It’s their involvement and participation that helps IREM grow and develop into the organization it has become after 80 years.”

FOUNDED:

Chicago, 1933 Membership: 19,041 individuals;

580 companies; 80 domestic chapters; 13 international

TOTAL OF U.S. MARKET MANAGED BY U.S. CPM MEMBERS:

Conventionally financed apartments – 42.8% Federally assisted housing – 35.0% Public housing – 8.2% Condos/co-ops/HOAs – 21.2% Senior housing – 7.6% Office buildings – 27.7% Medical Buildings – 13.6% Shopping centers/Retail – 8.8% Industrial/Industrial parks – 7.2 % Reported by the Institute of Real Estate Management

Bret Borg

Melissa Boyle

Tina Mortera

Steve Rosati

B

ret Borg, CPM, is the president of Borg Property Services and the 2014 president of IREM Chapter 47/Greater Phoenix. The local chapter has 300 members, 10 percent of which are industry partners made up of real estate support and service companies — a position that has what Borg calls a “substantial waiting list.” Borg has been a member of IREM for more than 25 years and earned his CPM in 1993.

According to Borg, the chapter’s main focus through 2014 is youth outreach meant to counter a projected talent shortfall in property management over the next five to 10 years.

“

“

What is something the RE community should know about IREM? ➤ IREM is an international property management professional organization with members that span the globe. IREM provides so many benefits to its membership, as well as the entire real estate community. IREM is most known for its quality of educational programs, certifications, setting and upholding ethical standards in this industry. IREM is also very active politically in helping shape legislation affecting the industry. Each year, IREM teams up with the National Association of Realtors (NAR) and lobbies all of Congress with a unified message on three mutually agreeable topics affecting the real estate community. Th is process has been hugely successful for members and nonmembers alike. I have personally been involved in this highly rewarding and educational process and am grateful to have had this opportunity.

To read more of Bret's Q-and-A, please visit azBIGmedia.com/azre-magazine

IREM’S RETENTION RATE FOR ITS CPM DESIGNATION IS 92%.

A recent survey ranked real estate managers as the career with the second-happiest employees. They tied with executive chefs and came in second to software quality assurance engineers.

A rizona

S tate Universit y’s one-year Master of Real Estate Development (MRED) program for real estate professionals involves faculty from ASU’s schools of design, law, construction and business, providing an integrated experience across fields. Now in its eighth year, the relatively small, personalized program has enrolled students from many countries, including Saudi Arabia, China, Thailand and India.

About 70 percent of the participants come from outside Arizona. They have, on average, five years of work experience already.

53

PRESENTS THE 9TH ANNUAL

O

n Feb. 26, AZRE magazine hosted the 9th annual RED Awards reception at the Arizona Biltmore in Phoenix to recognize the most notable commercial real estate projects of 2013 and the construction teams involved.

AZRE held an open call for nominations and more than 115 projects were submitted by architects, contractors, developers and brokerage firms in Arizona. All the winners, finalists and unique merit acknowledgments are featured on the following pages.

Sponsored by:

40 | march-april 2014

BEST EDUCATION PROJECT CENTRAL ARIZONA COLLEGE MARICOPA CAMPUS

Developer: arizona boarD oF regents

Developer: pinal County Community College DistriCt

arChiteCt: rsp arCHiteCts/KoHn peDersen Fox assoCiates

ContraCtor: Dpr ConstruCtion

MCCORD HALL

2014

ContraCtor: Core ConstruCtion arChiteCt: smitHgroupJJr Size: 76,800 sF

Size: 128,000 sF loCation: 450 e. lemon st., tempe CompleteD: June 24, 2013

loCation: 17945 n. regent Dr., mariCopa

entral Arizona College created a new campus in the City of Maricopa that brings sustainability and education to the forefront. The three initial campus buildings are sustainable “academic sheds” designed to keep the students cool from the hot desert sun throughout the year. The building materials are utilitarian, natural, low-maintenance and recycled. Nothing is wasted for aesthetics. There is one central water plant that feeds the three new buildings on campus. It’s designed in a manner that considers the campus’ future growth and saves water consumption by 28 percent. The masterplanned campus will be 10 times its current size by completion. The innovative and transformative research facility will serve as a vital tool for recruiting top scientists and engineers, and bring the seeds of change to a “bedroom community boomtown gone bust,” as the New York Times once said.

FINALISTS

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ASU DOWNTOWN SUN DEVIL FITNESS COMPLEX

CompleteD: JUlY 2013

Developer: asu ContraCtor: sunDt ConstruCtion arChiteCt: gabor lorant Size: 74,000 sF loCation: 330 n. First ave., pHoenix CompleteD: aug. 20, 2013

BANNER HEALTH: FOUR EAST VALLEY HEALTH CENTERS

BEST HEALTHCARE PROJECT TUCSON MEDICAL CENTER Developer: tuCson meDiCal Center ContraCtor: J.e. Dunn ConstruCtion arChiteCt: Hobbs + blaCK arCHiteCts Brokerage: Hill international Size: 218,930 sF loCation: 5301 e. grant rD., tuCson

Developer: banner HealtH ContraCtor: KitCHell arChiteCt: HmC arCHiteCts Size: 94,000 sF loCation: CHanDler, mesa, gilbert, Queen CreeK CompleteD: spring tHrougH Fall 2013

riginally intended to be a series of complex renovations, Tucson Medical Center added a four-story orthopedic and surgical tower to its campus that meets the increasing needs of the growing community. The tower replaced 18 existing operating rooms and added much more, including a dedicated pediatric surgery area. The new tower also adds 14 surgical suites, two hybrid rooms and 40 private patient rooms. The new tower add-on also included renovations to the building, such as shades for the windows to ward away the sun’s discomfort and an upgrade on the chilling and heating water systems.

The new tower also blends in with the original design of the medical center, with native stone and copper integrated into the architecture, creating the appearance that it has always been there. During construction, the hospital did not experience any planned or unplanned interruptions in patient care.

FINALISTS

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WEST VALLEY HOSPITAL TOWER & SURGERY EXPANSION

CompleteD: april 2013

Developer: n/a ContraCtor: Dpr ConstruCtion arChiteCt: earl sWensson assoCiates, inC. Size: 63,308 sF loCation: 13677 W. mCDoWell rD., gooDyear CompleteD: sept. 23, 2013

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2014

best Hospitality project WestWorld Tony Nelssen Equestrian Center

Vee Quiva Hotel & Casino Developer: Gila River Indian Community

Subheader

Contractor: Tutor Perini Building Corp.

Architect: Friedmutter Group Project Manager: Parsons-Tynan Group

Developer: City of Scottsdale Contractor: Howard S. Wright, A Balfour Beatty Company Architect: Populous Architects Size: 310,000 SF Location: 16601 N. Pima Rd., Scottsdale Completed: Dec. 23, 2013

Size: 760,000 SF

ee Quiva Hotel & Casino is a goliath in the desert, bringing a Las Vegas quality casino and hotel to Arizona. The property is energy efficient, with lighting systems that are programmed to detect movement and adjust accordingly. The floors ventilate clean air into the casino, keeping the air fresh without using excessive amounts of energy. The casino used local concrete and aggregate products, and native plants were used for the landscaping in order to reduce water usage on the property. The biggest energy efficient feature in the new casino is the environmentally friendly electrical, plumbing and mechanical system on-site. The water is chilled and heated with energy efficient units that supply the casino and hotel with water.

Finalists

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Crowne Plaza Phoenix Airport Hotel - Phase I

Completed: July 2013

Developer: Caliber Companies Contractor: Caliber Development Architect: Form Design Brokerage: HREC Investment Advisors Location: 4300 E. Washington St., Phoenix Completed: Dec. 12, 2013 - Phase I

Southwest Products/Park Skyway at Skyway Business Park

best Industrial project Marshall’s Distribution Facility Developer: Marshall’s of MA, Inc. Contractor: Layton Construction Architect: Ware MalcomB Brokerage: Cresa Size: 1,525,876 SF

Developer: LGE/Silagi Development Contractor: LGE Design Build Architect: Cawley Architects BROKERAGE: LEE & Associates Size: 604,000 SF Location: Surprise Completed: August to November 2013

he Marshall’s Distribution Facility’s sheer scale is awe-inspiring, capping at 1,525,876 SF this facility is not only large but also has energy efficiency and conservation embedded into its framework. The restrooms inside this facility use low-flow water closets and urinals, saving 83,000 gallons of water a year. Instead of being evaporative cooled, Marshall’s is air-conditioned. This will save a whopping 6,000,000 gallons of water per year. The roof of this facility is painted white to avoid trapping heat from the sun, and its HVAC energy system is designed to save energy for the entire building as a whole. The building also uses natural lighting to light many of the areas making the use of artificial lighting low and keeping costs low. When the facility was being constructed, the waste was recycled and the material used was low in volatile organic compounds.

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Finalists

T

Coldwater Depot Logistics Center, Phase I

Completed: September 2013

Developer: Trammell Crow/ Clarion Partners Contractor: D.L. Withers Construction Architect: Butler Design Group Brokerage: CBRE Size: 486,241 SF Location: 1100 N. 127th Ave.,41Avondale Completed: May 16, 2013

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MISSION CRITICAL

Aetna Build-to-Suite: Wespac Construction, Inc., Liberty Partner Limited Partnership

OPEN City of Maricopa Hall Okland Construction, City of Maricopa, Gensler Continuum RSG Builders, Capitol Commercial Investments

RENEWABLE ENERGY

Fennemore Craig Ryan Companies, Fennemore Craig, Gensler

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2014

BEST MULTI-FAMILY PROJECT (MORE THAN 250KSF)

Developer: allianCe resiDential Company

BROADSTONE ON CAMELBACK

THE HUB ON CAMPUS Developer: Core Campus

ContraCtor: beal DerKenne ConstruCtion arChiteCt: Hpa arCHiteCture Brokerage: apartment realty aDvisors Size: 410,000 sF

ContraCtor: allianCe resiDential Company arChiteCt: orb arCHiteCture Size: 271,414 sF loCation: 2625 e. CamelbaCK rD., pHoenix CompleteD: november 2013

loCation: 323 e. veterans Way, tempe CompleteD: July 2013

ROOSEVELT POINT

he Hub on Campus sits near the Sun Devil Stadium on ASU’s main campus and is focused on the college and city lifestyle. The location is between two ASU property lines and the light rail, meant to promote the use of public transporation. The triangular shape and compact site created many unforeseen challenges including a limited working space; complex communication problems for constructing, building, and planning the building; integration of the existing Tempe landscape; and the preservation of the historical Native American site. The Hub promotes a balance of sustainability and luxury amenities for its residents. It is seeking LEED accreditation and provides a 40KSF amenity deck with a 23-foot outdoor LED screen, two outdoor pools, sand volleyball court, fitness center, 40 personal hot tubs and yoga room.

FINALISTS

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Developer: ConCorD eastriDge ContraCtor: HarDison/DoWney ConstruCtion arChiteCt: ayers saint gross Size: 350,000 sF loCation: 455 n. 3rD st., pHoenix CompleteD: July 2013

(LESS THAN 250KSF)

ENCORE ON FIRST Developer: urban Development partners & paCiFiCap Development ContraCtor: oKlanD ConstruCtion arChiteCt: sera arCHiteCts

Subheader

Size: 92,000 sF loCation: 25 W. 1st ave., mesa CompleteD: nov. 15, 2013

GARFIELD SACRED HEART HOUSING

BEST MULTI-FAMILY PROJECT Developer: DesCo arizona aFForDable Housing ContraCtor: aDolFson & peterson ConstruCtion arChiteCt: biltForm arCHiteCture Brokerage: butler Housing Company Size: 100,000 sF loCation: 1110 n 16tH st., pHoenix CompleteD: DeC. 24, 2013

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ASU MANZANITA HALL

ncore on First is one of downtown Mesa’s first private sector investments in nearly three decades, Squire Sanders reports. It is an 81-unit, transitoriented apartment community for independent seniors who desire a walkable lifestyle. The site is all about location, which is benefited by several civic amenities such as a library, three museums and the Mesa Arts Center. The building mixes the urban landscape setting with metal wall panels, colored glass landscape panels and white steel elements with a more tranquil rural look with a pocket park and reflecting pool. The building is built to attract residents and to catalyze future developments on the building and the surrounding area. Some other sustainable resources include a 60 KW solar plant located on the roof that is tied into the City of Mesa’s downtown power grid, electric vehicle charging stations, LED lighting and high-performance windows and appliances.

FINALISTS

E

Developer: ameriCan Campus Communities ContraCtor: HarDison/DoWney ConstruCtion arChiteCt: stuDio ma Size: 218,000 sF loCation: 600 e. university Dr., tempe CompleteD: oCtober 2013

MOST CHALLENGING ASU DOWNTOWN SUN DEVIL FITNESS COMPLEX

2014

MERCEDES-BENZ OF SCOTTSDALE Developer: autopilot Development serviCes ContraCtor: JoHnson Carlier arChiteCt: barry r. barCus arCHiteCts /Davis Size: 173,859 sF

owner: arizona boarD oF regents ContraCtor: sunDt ConstruCtion arChiteCt: gabor lorant Size: 74,000 sF loCation: 330 n. 1st ave., pHoenix CompleteD: aug. 20, 2013

loCation: 4725 n. sCottsDale rD., sCottsDale CompleteD: DeC. 30, 2013

ROOSEVELT POINT

his sleek, glass-walled Mercedes-Benz showroom involved 100 percent reuse of an existing office building. This project was completed in two phases because of existing tenant timelines, including a fully functioning dialysis center that moved out two months before construction finished. Other challenging features include a car ramp that connects the second- and thirdfloor showrooms. The building also includes sustainable resources such as an onsite storage of reclaimed water used for car washing and landscaping, rooftop HVAC units to reduce 50 tons of energy consumption by 25 percent, natural and motion sensor lighting, and maximum use of recyclable and local materials to minimize fuel consumption and waste. The dealership is also within close proximity of multi-family developments that require of the dealership and its amentities to have a sensitivity to the creation of unnecessary noise.

FINALISTS

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Developer: ConCorD eastriDge ContraCtor: HarDison/DoWney ConstruCtion arChiteCt: ayers saint gross Size: 350,000 sF loCation: 455 n. 3rD st., pHoenix CompleteD: July 2013

BEST OFFICE PROJECT CYRUSONE DATA CENTER Developer: Cyrusone netWorK Company ContraCtor: Je Dunn ConstruCtion arChiteCt: pHarCHiteCture/Corgan assoCiates Brokerage: Jones lang lasalle Size: 200,293 sF loCation: 2335 s. ellis st., CHanDler CompleteD: February 2013

ALLRED PARK PLACE BUILDING 5

Developer: Douglas allreD Company ContraCtor: Willmeng ConstruCtion, inC. arChiteCt: balmer arCHiteCtural group Brokerage: Cbre Size: 64,657 sF loCation: 1340 s. speCtrum blvD., CHanDler CompleteD: may 13, 2013

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AETNA BUILD-TO-SUIT

yrusOne Chandler is one of the first data center developments to target LEED Silver Certification or higher. The exterior materials and building colors were chosen for their highly reflective surfaces and resistances to heat transfer and louvered canopies were built to provide shade and reduce solar exposure. The landscaping consists of a combination of desert pallet plants and trees that are watered with an onsite reclaimed retention pond. CyrusOne plans to implement solar parking canopies. This energy efficient building caused complications during construction because of a quick timeline, specific building materials and attention to detail on being energy conscious. The project was also complicated by the fact that the design and construction teams were spread across the United States and had to rely on technology meeting tools and streamlined communication.

FINALISTS

C

Developer: liberty property limiteD partnersHip ContraCtor: WespaC ConstruCtion, inC. arChiteCt: balmer arCHiteCtural group Size: 138,950 sF loCation: 4500 e. Cotton Center blvD., 41 pHoenix CompleteD: may 24, 2013

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BEST PUBLIC PROJECT MCCORD HALL owner: arizona boarD oF regents, For anD on beHalF oF arizona state university ContraCtor: Dpr ConstruCtion

Subheader

arChiteCt: rsp arCHiteCts DeSign arChiteCt: KoHn peDerson Fox assoCiates Size: 128,000 sF

MARICOPA COUNTY CLERK OF THE COURTS

2014

Developer: mariCopa County ContraCtor: layton ConstruCtion arChiteCt: arrington WatKins arCHiteCts Size: 13,000 sF loCation: 201 W. JeFFerson st.

CompleteD: June 2013

loCation: 450 e. lemon st., tempe

he W. P. Carey School of Business’ new state-of-the art facility, McCord Hall, is home to Arizona State University’s graduate, MBA and executive education programs. Consisting of instructional spaces, administrative offices, student and career services and social spaces, this monumental structure is designed to last a century on ASU’s Tempe campus. The structural slab and roof structure are a post-tensioned concrete that can be re-tensioned years from now to renew their strength. The building boasts numerous sustainable features, including a façade-specific shading system and a roof designed for a photovoltaic array that can provide electricity for buildings across the whole campus.

FINALISTS

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CITY OF MARICOPA HALL

CompleteD: June 24, 2013

Developer: City oF mariCopa ContraCtor: oKlanD ConstruCtion arChiteCt: gensler Size: 45,000 sF loCation: 39700 W. CiviC Center plaza, mariCopa CompleteD: september 2013

Developer: Capital CommerCial investments, inC. ContraCtor: rsg builDers arChiteCt: pHarCHiteCture Broker: Cbre Size: 463,584 sF loCation: 2501 s. priCe rD., CHanDler

PARSONS CENTER FOR HEALTH AND WELLNESS

CONTINUUM SCIENCE & TECHNOLOGY PARK

(FORMERLY SOUTHWEST CENTER FOR HIV/AIDS)

BEST REDEVELOPMENT PROJECT Developer: parsons Center For HealtH anD Wellness ContraCtor: HarDison/DoWney ConstruCtion arChiteCt: Holly street stuDio Size: 50,000 sF loCation: 1101 n. Central ave., pHoenix CompleteD: oCtober 2013

CompleteD: January 2013

T

THE YARD

64 | march-april 2014

Developer: WpD partners

FINALISTS

his state-of-the-art business and technology campus is part of the foundation for thousands of future jobs in Chandler. Intended to make Chandler and Metro Phoenix competitive on a national and global scale, it is designed to house corporate offices, customer service operations, advanced business services, technology, bioscience, and renewable energies. The City of Chandler endorsed and became an integral partner in the redevelopment process and made joint investments in the park infrastructure and horizontal improvements to further encourage the location of signature companies and high-wage jobs to the park. The former Motorola campus was renovated to include a new three-story atrium lobby, curtain wall glass, upgraded HVAC systems and a high-quality electrical and fiber infrastructure in order to meet Continuum’s proclaimed mantra: “where environment meets progress.”

ContraCtor: urban eDge builDers/ tK interior ConstruCtion arChiteCt: rsp arCHiteCts Size: 67,000 sF loCation: 5632 n. 7tH st., pHoenix CompleteD: may 2013

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best retail project Scottsdale Entertainment District Developer: Triyar Companies

Subheader

Contractor: LGE Design Build Architect: Cawley Architects, AV3 Design Studio Size: 26,200 SF

Centerpoint on Mill

2014

Developer: DMB Associates Brokerage: SRS Real Estate Partners Size: 37,645 SF Location: 730 S. Mill Ave., Tempe Completed: May 30, 2013

Completed: May 2013 ow the heart of Old Town, the Scottsdale Entertainment District started out as several older structures spread out over 57,000 SF of land. In 2012, Triyar Companies and LGE Design Build united with the goal of redeveloping the block into a multi-user bar and restaurant district that would service residents and tourists. The space now consists of five noteworthy tenants, including The Derby, Dierks Bentleyâ&#x20AC;&#x2122;s Whiskey Row, Hi-Fi Kitchen & Cocktails and Maya Day and Nightclub. Energy efficient components include 1-inch dual plane insulated glass, LED lighting and R-8 value roofing. Not only did the redevelopment finish on time and 100 percent leased by completition, it completely changed its surrounding area and dramatically increased the rent price of surrounding office space.

Finalists

N

Phoenix Premium Outlets

Location: 7301 E. Indian Plaza, 7333 E. Indian Plaza, 4420 N. Saddlebag Trail, Scottsdale

Developer: Simon Property Group Contractor: Kitchell Architect: Architects Orange Size: 74,800 SF Location: 144976 Premium Outlets Way #818, Chandler Completed: April 2013

Lookout Mountain Elementary School Developer: Washington Elementary School District Contractor: Adolfson & Peterson Construction Architect: Orcutt | Winslow Brokerage: The H2 Group, LLC Size: 85,000 SF

Fryâ&#x20AC;&#x2122;s Marketplace PowerParasol

Most Sustainable project Developer: Strategic Solar Energy Contractor: hardison/downey construction Architect: Debartolo Architects Size: 85,000 SF Location: 2727 W. Bell Rd., Phoenix Completed: November 2013

Location: 15 W. Coral Gables Dr., Phoenix

he process of demolishing Lookout Elementary took place on an occupied and functioning campus. Now completed, the 21st century learning environment features classrooms equipped with smart technology. Perhaps the biggest accomplishment of the redevelopment was its implementation of an energy-efficient geothermal system. This system attached geothermal heat pumps to a series of buried plastic pipes and is anticipated to save the district 40 percent on cooling and heating costs, estimated to be $1.8M. Additionally, the school has water-efficient landscaping in its courtyard, multi-layered insulation throughout its buildings, high-performance window glass, and ergonomically integrated and multifunctional sustainable design concepts.

66 | March-April 2014

Finalists

T

NextFort Data Center Phase I

Completed: August 2013

Developer: Project Green Box, NextFort Ventures Contractor: Sunstate Builders Architect: Butler Design Group Brokerage: CBRE Size: 33,922 SF Location: 2600 W. Germann Rd., 41 Chandler Completed: August 2013

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3) #1 outsourcing company among real estate services firms, IAOP, Fortune, July 23, 2012. 4) Real Capital Analytics, December 2012. 5) “Top 25 Brokerages,” National Real Estate Investor, April 2012, 9th consecutive year. 6) The Lipsey Company Brand Survey, 2013, 12th consecutive year; Highest-ranked commercial real estate services firm in Fortune’s Most Admired Companies ranking, March 2013; The Wall Street Journal marketing department subscriber survey, December 2011. 7) “Top 25 Property Managers,” National Real Estate Investor, July 2012. 8) Best multi-housing brokerage firm, Multi-Housing News, October 2011. 9) Freddie Mac ranking, 2012. 10) Best facilities manager for financial services (U.K.), European CEO Facilities Management Awards, September 2011.

11) Highest-ranked commercial real estate services firm in Newsweek’s Green Rankings 2012, October 22, 2012; U.S. EPA 2013 (Partner of the Year status six consecutive years). 12) Only commercial real estate services company on “Companies That Care Honor Roll,” The Center for Companies That Care, 2013, sixth consecutive year; Winner of the IAOP/ISG Global Outsourcing Social Responsibility Impact Award. 13) Fortune, May 21, 2012.

2014

BEST TENANT IMPROVEMENT PROJECT FENNEMORE CRAIG C2 TACTICAL INDOOR SHOOTING RANGE

Developer: C2 taC HolDings, llC

Developer: Fennemore Craig ContraCtor: ryan Companies arChiteCt: gensler Brokerage: Cbre Size: 120,000 sF loCation: 2394 e. CamelbaCK rD., ste. 600, pHoenix

ContraCtor: rJm ConstruCtion arChiteCt: pHarCHiteCture Brokerage: lee & assoCiates Size: 17,000 sF loCation: 8475 s. emeralD Dr., tempe CompleteD: February 2013

CompleteD: February 2013

JOBING.COM AT SKYSONG

fter 12 years as a midtown Phoenix law firm, favorable market conditions encouraged Fennemore Craig to make a move to the dynamic and amenityrich Camelback Corridor, taking the opportunity optimize space by decreasing its overall square footage by approximately 20 percent. The reduction in square footage was accomplished through careful curtailment of file storage and secretary-to-attorney ratios, and the design of destination locations with dual uses in client-facing areas. Given the size and atypical floor plate of the building selected, the project became a planning and efficiency challenge. Rather than segregating the angularity of the exterior glass wall, the client chose instead to celebrate it. Navigating shifting budget priorities and constraints, the team utilized lower-cost systems furniture in secretary stations, reused attorney office furniture from the firm’s existing location, and simplified attorney wall elevations. The end result of this challenging project is a flexible space home to Fennemore Craig’s clients and colleagues, as well as an inviting location for community, social and charitable events.

FINALISTS

A

Developer: Jobing.Com ContraCtor: soutHWestern arCHiteCtural builDer arChiteCt: Hayes arCHiteCture/ interiors, inC. Brokerage: plaza Companies Size: 10,286 sF loCation: 1375 n. sCottsDale rD., ste. 300, sCottsDale CompleteD: november 2013

MERIT AWARDS ARIZONA ICON AWARD:

ECONOMIC IMPACT AWARD:

MANZANITA HALL

WESTWORLD TONY NELSSEN EQUESTRIAN CENTER

68 | march-april 2014

MELROSE GATEWAY MONUMENT Developer: City of phoenix ContraCtor: Weitz arChiteCt: gensler loCation: 7th avenue, north of indian school road, phoenix CompleteD: november 2013

Developer: City of scottsdale ContraCtor: Howard s. Wright, a balfour beatty Company arChiteCt: populous architects Size: 310,000 sF loCation: 16601 n. pima rd., scottsdale CompleteD: Dec. 23, 2013

HONORABLE MENTION:

HONORABLE MENTION:

Developer: american Campus Communities ContraCtor: hardison/downey construction arChiteCt: studio ma Size: 218,000 sF loCation: 600 e. university Dr. CompleteD: october 2013

APS HYDER II SOLAR PLANT Developer: aps ContraCtor: mcCarthy building Companies arChiteCt: taylor rymar Size: 220 acres loCation: Hyder CompleteD: nov. 3, 2013

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ARCHITECT OF THE YEAR

2014

RSP ARCHITECTS winner oF BeSt pUBliC proJeCt: mCCorD Hall FinaliSt in BeSt reDevelopment proJeCt: tHe yarD

R

SP Architects has served clients for 34 years in more than 10 market sectors. The company, headquartered in Minneapolis has a three-foot-tall penguin named Opus for a mascot. With that said, RSP’s Phoenix office seems drawn to what can be described as “cool” projects. From the adaptive reuse of an old church to a Taco Guild in central Phoenix’s Old School O7 development to transforming an old motorcycle garage to a trendy restaurant hub known as The Yard, RSP is slowly adding vibrancy and density to the metro area. RSP was also involved with the innovative McCord Hall, which is a work of art as well as function on ASU’s main campus. RSP also worked on a student housing study at ASU and is currently working on collections for the School of Life Sciences at ASU, among other projects. The Phoenix office has also worked on two projects through a joint venture established in Kuala Lumpur, Malaysia.

GENERAL CONTRACTOR OF THE YEAR LAYTON CONSTRUCTION winner oF BeSt inDUStrial proJeCt: marsHall’s Distribution FaCility FinaliSt in BeSt pUBliC proJeCt: mariCopa County ClerK oF tHe Courts

L

ayton may have overseen the 1.5MSF monstrosity that is the Marshall’s Distribution Facility, but our General Contractor of the Year doesn’t look away from the small projects either. Sure, you can fit 21 NFL football fields or 28 Boeing 787 Dreamliners within the state-of-the-art industrial center, but how does that possibly compare to completing a tenant improvement project that makes office morale take a 180-degree turn for the better? In 2013, Layton took on 1.806MSF in projects worth $79,334,000. Layton already has $152M on the books in Arizona for 2014 and 2015 in projects tallying more than 1,256,500 SF. This year, Layton was a finalist in the renovation of the Maricopa County Clerk of the Courts building. The project transformed a maze of seven-foot high cubicles beneath a ceiling of generic fans into a the space in which employee morale and function could thrive. For such a large company to get satisfaction from a comparatively small project speaks to the character of the office culture and work ethic. As mentioned previously, the 1.5MSF Marshall’s Distribution Facility was this year’s Best Industrial Project. This year’s RED finalist and winner are proof of quality over quantity and a company that’s not afraid of the small — or incomprehensively large — projects.

70 | march-april 2014

GENERAL CONTRACTOR // CONSTRUCTION MANAGER // DESIGN-BUILDER

Proud partners with the City of Phoenix as General Contractor on the MELROSE GATEWAY MONUMENT

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C O M M E R C I A L

R E A L E S TAT E

PeoPle to know is ex exPanding in 2014 AZRE Magazine will combine the top People to Know with the top Projects to Know — all in one issue!

This annual special edition will feature the best commercial real estate projects that define our state with the people who make them happen.

PEOPLE TO KNOW CATEGORIES

Architects Engineers Attorneys Brokers Developers Finance Accounting General Contracting Property Managers Subcontractors

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PROJECTS TO KNOW acknowledges Arizona’s landmark developments in a range of categories and notable additions to cityscapes statewide.

+ PEOPLE TO KNOW

PROJECTS TO KNOW

PEOPLE TO KNOW will reveal updated interviews that add more personality to the profiles than ever before.

Sample page/People to Know ARCHITECTS & ENGINEERS - PTK

michael l. medici, aia

leS F. olSon

Senior Vice President, Corporate Practice Leader

Sample page/Projects to Know

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PROJECTS TO KNOW CATEGORIES

Adaptable Re-Use Art/Entertainment Office Development Industrial Development Government Healthcare Facilities Hospitality Multi Family Retail/Mixed Used Development Tenant Improvement Educational Facilities

rebecca olSon, aia, leed ap

President

Principal, Director of Phoenix Studio

FACTS & FIGURES OWNER: se debita

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Responsibilities: Sr. Vice President,

Responsibilities: Business development Years at Company: 22 Years in CRE: 37 Accomplishments: Olson has more than 36

Responsibilities: Principal/Director,

455 N. 3rd St., #250, Phoenix smithgroupjjr.com · 602-265-2200

4550 N. 12th St., Phoenix cvlci.com · 602-264-6831

Corporate Practice Leader Years at Company: 33 Years in CRE: 33 Accomplishments: Medici has been with SmithGroupJJR since 1980 and has remained active in managing several of its key projects including TGen, Arizona Biomedical Collaborative and Freeport McMoRan Center.

He is active in the the community and serves as co-chairman of the Annual Cystic Fibrosis Stair Climb & Firefighter Challenge; a member of St. Joseph’s Hospital Foundation Board; a member of the Scottsdale Cultural Council & SMoCA Board and past president of ASU Council for Design Excellence. His leadership enables SmithGroupJJR to achieve success both regionally and nationally.

years experience in building what others say isn’t possible — complex civil engineering for private developments, water resources, municipal improvement projects, airport planning and design, construction specifications and inspection. In addition, he has provided consultant services and design expertise for petrochemical and marine industries along the Texas Gulf Coast. He has participated in various aspects of numerous major projects with a combined size in excess of 75,000 acres.

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One E. Camelback Rd., #690, Phoenix wrldesign.com · 601-212-0451

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WRL Phoenix; Project Director Years at Company: 5 Years in CRE: 30 Accomplishments: Olson is a leader in integrated A/E design and project delivery. She builds strong teams serving Arizona real estate through top management, and multiple roles. Her expertise in LEED sustainable design, project delivery, design build, and BIM places her at the forefront.

She drives the success of WRL’s Arizona studio, guiding strategic development and expansion in the West. Her 30-year experience in project management spans new construction and renovation, a range of construction types and budgets, including large complex projects.

ARCHITECT: Everumet

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University of Arizona’s Health Sciences Building

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bryce pearSall, Faia Chairman

dlr Group

erik b. peterSon aia

phX architecture

6225 N. 24th St., #250, Phoenix dlrgroup.com · 602-381-8580

7507 E. McDonald Dr., #B, Scottsdale phxarch.com · 480-477-1111

Responsibilities: Chairman of DLR Group Years at Company: 41 Years in CRE: 41 Accomplishments: Pearsall became Managing

Responsibilities: Lead Architect and Principal, business and project management Years at Company: 2 Years in CRE: 12 Accomplishments: Peterson is licensed in several Western states, and is an active member in AIA Arizona. He serves as a board member for Valley Forward. He was voted Best Architect in AZ Foothills - Best of Our Valley, and has designed projects that have been featured in publications such as LUXE, Phoenix Home & Garden, Luxury Home Quarterly, AZ Foothills, and Mountain Living Magazines. Designing award winning projects, including clubhouses, custom residences, restaurants, and office, Peterson has led PHX Architecture to continued success.

Principal at DLR Group in 1986 and received his Fellowship in the American Institute of Architects in 1987. He is chairman of the National AIA Large Firm Roundtable and on the Board of Regents of the National American Architectural Foundation.

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Principal

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dWl architectS + plannerS, inc.

2333 N. Central Ave., Phoenix dwlarchitects.com · 602-264-9731

Responsibilities: President of DWL, leading the Transportation Services Group.

Years at Company: 24 Years in CRE: 32 Accomplishments: Rao’s notable accomplishments include Phoenix Sky Harbor International Airport’s Terminal 4 and the West Terminal Expansion project at Phoenix-Mesa Gateway Airport. He has managed more than $700M worth of aviation work. He is actively involved in the Arizona Airports Association, Airport Consultants Council, Southwest Chapter of the American Association of Airport Executives, and currently sits on the Board of Directors for the Support Sky Harbor Coalition, Discovery Triangle and East Valley Aviation & Aerospace Alliance.

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8 PeoPle to Know 2013

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4/30/13 10:08 AM

For more information call: 602.277.6045 or visit azBIGmedia.com

DEVELOPER OF THE YEAR

2014

ARIZONA BOARD OF REGENTS winner oF BeSt pUBliC proJeCt: mCCorD Hall FinaliSt in BeSt eDUCation proJeCt: asu DoWntoWn sun Devil Fitness Complex & mCCorD Hall FinaliSt in moSt Challenging proJeCt: asu DoWntoWn sun Devil Fitness Complex

W

hether it’s bringing groundbreaking development to Arizona’s college campuses or facilitating adaptive reuses of existing structures, Arizona Board of Regents is behind many standout projects this year. ASU developed two modern fitness complexes in 2013 as well as the stunning new school for W. P. Carey graduate programs at McCord Hall. Looking forward, ASU will redevelop its Sun Devil Stadium, the College Avenue Commons (Block 12) project on its main campus and see the groundbreaking of its law center in downtown Phoenix as well as a redevelopment of the Annex along College Avenue north of the main campus. The University has the largest enrollment numbers in the nation and the aggressive development to match. That doesn’t mean University of Arizona and Northern Arizona University aren’t also aggressively developing. ABOR recently requested $1B from the state legislature for research development totalling 1,675,400 SF, which will include projects for all three universities.

74 | march-april 2014

Thank you to our amazing clients and industry partners for collaborating with us on award-winning designs!

www.gensler.com

75

2014

BROKERAGE OF THE YEAR: OFFICE - SALE THE DEAL: State Farm operationS Center tempe, az 372,408 SF; $73m

BROKERAGE: CBRE

BARRY GABEL

Executive Vice PResident

CHRIS MARCHILDON Sales Assistant

MINDY KORTH Now Executive Vice President at Colliers International

BROKERAGE OF THE YEAR: OFFICE - LEASE THE DEAL: gm inFormational teChnologY innovation Center ChanDler, az 170kSF

BROKERAGE: JONES LANG LASALLE

76 | march-april 2014

KARSTEN PETERSON

DAVE SEEGER

Managing Director

Managing Director

MARK GUSTIN

MARK DETMER

Managing Director

Managing Director

AZCREW 2014

GolFiesta!

TO OUR BUSINESS PARTNERS FOR YOUR

GROUNDBREAKING SUPPORT.

Charity Golf Tournament benefiting

TMC would like to recognize our architects, Hobbs & Black, our General Contractor, JE Dunn, as well as the many other vendors who helped support, design, build, equip, and furnish our new facilities.

May 2, 2014 Gainey Ranch Golf Course Patron Sponsor -Roofing Southwest

Fresh Start and AZCREW

Caddie Auction April 16, 2014 The Adobe at The Biltmore Caddie Sponsor - Ghaster Painting

We thank you for your hard work and dedication to this community project!

Choose Well | Choose TMC

For more information visit: www.golfiesta.dojiggy.com

www.tmcaz.com

Does your Commercial Project need Public Art?

AZ TOTEM ART

Custom Bird Feeders ❋ Ceramic Art ❋ Totems aztotemart.com

By Appointment Only 602.677.5999

AD_Totem Art_RAZ2014.indd 1

2/26/14 3:50 PM

77

2014

BROKERS OF THE YEAR: RETAIL SALE

THE DEAL:

BROKERAGE: CBRE

Centerpoint on mill tempe, az 127,027 SF; $38.35m GLENN SMIGIEL Senior Vice President

BOB YOUNG

Senior Vice President

STEVE BRABANT Senior Vice PResident

RICK ABRAHAM Vice PResident

BROKERS OF THE YEAR: RETAIL LEASE THE DEAL: greenwaY village SQUare phoeniX, az 94,500 SF

BROKERAGE: ARIZONA PARTNERS RETAIL INVESTMENT GROUP LLC BOB RUSING 78 | march-april 2014

INDUSTRIAL BROKERAGE OF THE YEAR THE DEAL: SALES Former FirSt Solar FaCilitY meSa, az 1,328,075 SF $107.6m

THE DEAL: LEASE SoUthweSt logiStiCS Center gooDYear, az 418,200 SF

BROKERAGE: CUSHMAN & WAKEFIELD

JAMES WILSON Executive Director

Coming n ext

MICHAEL WHITE Senior Director

issue

Featured topics include: • • • • • •

Financing Real Estate Healthcare Development & Construction CCIM/Certified Commercial Investment Managers USGBC/Green Building Supplement AAED Awards The Rockefeller Group Profile

For additional information, call 602.277.6045 or visit,

azBIGmedia.com

JANUARY-FEBRUARY 2013

BIRTH OF A SIGNATURE SCIENCE PARK JANUARY-FEBRUARY 2013 2014

Continuum evolving into a state-of-the-art business, tech campus

MAY - JUNE 2013

THIS IS THE FUTURE

2014 OUTLOOK

RISING TO THE TOP

SPECIAL SECTION p. 30

The Valley's deVelopmen T communi Ty looking up

SPECIAL SECTION p. 27

AZRE_Cover_JF_2013.indd 1

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INSIDE 2014 OUTLOOK: Industry experts' market predictions p.18 BOXED OUT: A retail space the recession built p.34

INSIDE

Healthcare p. 14 USGBC Arizona p. 34 Valley Partnership p. 41

COMPANIES TO WATCH: CRE's movers and shakers p.28

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www.bdconstruct.com 515-288-0345

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14 01 H R 3 E ub ED N o M RB n ul e C ti- s Fa t R am m es p ily id u Pr en s oj tia , T ec l P e t o ro m f t je p he ct e Ye ar

Th e 2