AZRE March/April 2020

MARCH-APRIL 2020

RED AWARDS

Block 23

General Contractor: Whiting-Turner Architect: Omniplan

INSIDE:

Public Spaces p. 32 | West Valley Update p. 36 | ULI p. 42

CONNECT | DESIGN | BUILD Architecture is more than building structures.

It’s also about creating connections between people.

That’s why we follow a highly collaborative approach.

Our unique process has helped create some of the top retail, office, healthcare, restaurant and industrial spaces in the Valley — leading us to being named the number one small architectural office for the past three years.

LIKE US ON FACEBOOK

FOLLOW US ON INSTAGRAM

(602) 393-5060 | cawleyarchitects.com

Oh, what a year it’s been

2019

wasn’t any ordinary year in commercial real estate and this edition will display just some of the great work that went on here in the Arizona market.

This is the Real Estate Development (RED) Awards edition, and this years’ nominees and finalists are something to behold.

Just look at one of the categories: Large Office. In that category are three projects that would all easily win on most years. The American Express Canyon Building, Grand 2 and the Northrop Grumman Launch Vehicles Headquarters buildings are top tier projects, all deserving of any industry honors that will come to them.

There were fabulous mixed-use projects, as well as healthcare facilities that will have lasting impacts on their communities. And don’t overlook the industrial projects featured in this edition, as their economical impact will be felt for years to come, as well.

While the RED Awards take up much of the space inside this edition, we also highlight some of what went on at the 2020 ULI Trends Day, one of the most informative events of the year anywhere in the nation.

We also take a look at what dynamics are shaping development in the West Valley, where residential and industrial developments are rolling along at a rapid pace, but Class A office development has yet to get out of the starting gate. Also, we look at one of the most talked about projects to be announced for the market this year: the Atari Hotel in Roosevelt Row in Phoenix. All of that, plus how one Valley vice chairman has found his happy place in the boxing gym.

We hope our RED Award finalists impress you as much as they did us and we hope they are an accurate representation of the wonderful work being done around the state.

President and CEO: Michael Atkinson Publisher: Josh Schimmels Vice president of operations: Audrey Webb EDITORIAL Editor in chief: Michael Gossie Associate editors: Steve Burks | Alyssa Tufts Interns: Endia Fontanez | Mallory Schnell Contributing writers: Jake Hinman | Mignonne Hollis Suzanne Kinney | Tim Lawless ART Art director: Mike Mertes Design director: Bruce Andersen MARKETING/EVENTS Marketing & events manager: Aseret Arroyo Digital strategy manager: Gloria Del Grosso Marketing designer: Heather Barnhill OFFICE Special projects manager: Sara Fregapane Database solutions manager: Amanda Bruno AZRE | ARIZONA COMMERCIAL REAL ESTATE Director of sales: Ann McSherry Director of business development: Carol Shepard AZ BUSINESS MAGAZINE Senior account manager: David Harken Account managers: April Rice | Sharon Swanson AZ BUSINESS ANGELS AZ BUSINESS LEADERS Director of sales: Sheri Brown EXPERIENCE ARIZONA | PLAY BALL Director of sales: Jennifer Swanton RANKING ARIZONA Director of sales: Sheri King

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

2 | March-April 2020

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

CONTENTS

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

20 Legislative Update

53

24 Finance

26 Indian Country Building 32 Public Spaces

36 West Valley Update

14

42 Urban Land Institute

53 RED Awards

32

On the cover: Block 23

4 | March-April 2020

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

36

TRENDSETTERS DOWNTOWN PROJECTS HONORED

Making room for more ’toys’ Three companies, Wesley Development, Denali National Trust Partners and Brycon Construction, have joined up and have announced plans to build additional Toy Barn communities in the East Valley and North Phoenix.

The Chandler Toy Barn located at 2165 S. Douglas drive broke ground in December. The location’s three buildings will include 66 units ranging from 1,000 square-feet to 3,000 square-feet. The second new Toy Barn, located at 31606 N Cave Creek Rd. in Phoenix, will consist of 59 units covering 66,000 square feet. This location will offer floor plans ranging from 1,200 to 3,000 square feet.

All Toy Barn units feature minimum 18-foot ceilings, heavy-duty garage doors and standard entry and exit doors. Units are also equipped to be climate controlled, have Wi-Fi capabilities, plumbing, and opportunities for personalization such as added lofted space, built in kitchens, bathrooms or unique paint colors.

Toy Barn units are privately owned similar to a condominium and governed by CC & R’s and an owner’s association. Prices range from $185,000 to $570,000.

6 | March-April 2020

LA-based Altitude Design Office has received the GDUSA 2019 American Graphic Design Award for work on two Phoenix projects: Arizona Center and Renaissance Phoenix Hotel. Both are winners in the Best Environmental Graphics category. The American Graphic Design Awards honors creative professionals and outstanding work across all types of media.

Arizona Center is a renovated retail center located in the heart of downtown Phoenix. Altitude Design Office’s vibrant graphics and signage combined with the new landscape and lighting to create a much-needed community gathering space full of engaging brand moments. Collaborators include Gensler, Jones Sign and Zion+Zion.

The Renaissance Phoenix Downtown Hotel is one of Phoenix’s most iconic properties. Responsible for the hotel’s exterior signage and public art design, Altitude’s dynamic lit signage activates the streets for hotel guests and downtown locals. Collaborators on the project include Gensler, HLB Lighting and Chandler Signs.

Going for Gold

The eye-catching Offices at Chandler Viridian is getting recognition for more than just its good looks. Recently, the sixstory building developed by Hines that rises above the intersection of the Loop 101 and Loop 202 in Chandler, received notification that it has earned Gold certification from the U.S. Green Building Council’s LEED Core and Shell rating system. The Offices at Chandler Viridian is the tallest multi-tenant office building in Chandler. Hines developed the project in a joint venture agreement with New York Life Real Estate Investors, on behalf of its institutional client. Green features include low-flow water fixtures, led lighting and native and drought tolerant plants.

“Sustainability ranks high on our company’s priority list in creating high-performing buildings,” said Chris Anderson, senior managing director and Arizona leader for Hines. “LEED Gold certification is critical to appealing to tenants who are increasingly more focused on their environmental impact.”

Whiting-Turner of Phoenix served as the general contractor and RSP Architects designed the building and masterplan.

Ottawa University spreading out in Surprise

Vintage Partners provides public-private solution

Ottawa University-Arizona in Surprise celebrated the recent completion of three new buildings, which totaled $57 million.

The finished projects include: O’Dell Center for Athletics: A $25 million, 97,000-square-foot sports complex that includes a recreation center, four-court gym, locker rooms, varsity performance center, classrooms, laboratories, faculty offices, athletic offices, press box and VIP Suite.

Scholars Hall: A $19.8 million, 76,000-square-foot, four-story residence hall with 83 rooms and 340 beds. The building includes four student lounges, Student Affairs offices, faculty offices and the Campus Public Safety office.

OUAZ Student Center: A $12.2 million, 27,000-square-foot, two-story building that houses the dining center, OUAZ fan shop, student lounge, conference center and the Adawe Center.

“We are fortunate to have alumni such as the O’Dells, who believe in our vision to build a residential campus from the ground-up, and we are humbled by their generosity of spirit,” said Ottawa University Chancellor Kevin Eichner.

Six years ago the Arizona Department of Transportation was facing an impossible task: how to revamp or relocate its 65-year-old Flagstaff headquarters without using any public funding. At the same time, the City of Flagstaff was struggling with dangerous traffic congestion on its overcrowded roadways. Enter Vintage Partners, the Phoenix-based commercial real estate development & investment company, which devised a unique three-way, three-phase public-private partnership and land swap that allowed Vintage to adaptively reuse the old Harkins Theatre to create a headquarters for both ADOT and the AZ Motor Vehicle Department. Additionally, Vintage Partners created the right-ofways necessary to provide a regional roadway solution, moving traffic off an already overcrowded Milton Rd. Best of all, this first-of-its-kind public-private partnership also helped revitalize a local mall, and increased city tax revenue, without raising taxes or using public funds.

Vintage Partners partnered with Harkins Theatres to construct an all-new theater adjacent to Flagstaff Mall. Then, Vintage transformed the old movie theater into a state-of-the-art regional headquarters for both ADOT and the AZ Motor Vehicle Department.

Now, Vintage Partners will transform the former ADOT property into a mixed-use project featuring student housing.

BUILDING NEW LEADERS Twenty-six protégés, or young professionals, were selected to participate in the 2020 NAIOP Arizona Developing Leaders Mentor Program, known as the Young Professionals Group (YPG). Each protégé in the six-month program will attend educational seminars and complete a development case study by the end of the program.

The 2020 class is comprised of: Diego Almarel, Strategic Office Partners; Alex Anstey,

Willmeng Construction; Jim Bulsiewicz, Hines; Christopher Campbell, BNC National Bank; John Coughlin, Prologis; Ashley Dykstra, Kinney Construction; Aaron Fox, Cushman & Wakefield; Joey Hakola, RED Development; Jimmy Hoselton, Newmark Knight Frank; Ryan Kates, STORE Capital; Ian Kennedy, The Remson Group; Austin Knebel, LevRose Commercial Real Estate; Stephanie Lanman, Leading Edge Real Estate; Franklin Lee,

Sharp Construction; Jonathan Loe, Sherman & Howard; Taylor McDonald, Whiting-Turner; Mike McWilliams Jr., Plaza Companies; Ashley Nye, Trammell Crow Company; Greer Oliver, Cushman & Wakefield; Adam Olson, CEVA Logistics; Brice Pall, Enterprise Bank & Trust; Jackson Paquette, SRP; Michael Roberts, JDM Partners; Scott Scharlach, Waterford Property Company; John Schott, Everest Holdings; and David Stull, CBRE. The 2020 Co-Chairs are Mollie Zemer, senior development association, Barclay Group; and Josh Tracy, director of real estate development, Ryan Companies US. 7

TRENDSETTERS OFFICE SECTOR HOLDING STRONG

A rendering of the planned Compass Datacenter facility in Goodyear.

Phoenix an emerging market in data center world Cushman & Wakefield released a first-of-itskind Global Data Center Market Comparison report in which the company ranked 38 global markets. While Phoenix didn’t quite make the top 10 globally, the report stated that Phoenix is an emerging market that offers a compelling alternative to the global Top 10.

Phoenix scored highest for Government Incentives. The report stated that, “With aggressive incentive packages and proximity to California have drawn several new data center operations over the last two years.”

Phoenix also rated in the Top 15 in Power

Phoenix on the rise Phoenix made the largest jump of the 46 markets ranked in Marcus & Millichap’s 2020 National Multifamily Index. Overall, Sunbelt states like Arizona and Florida, along with tech metros like Seattle and San Diego dominated the top of the index. Orlando held the top spot, moving up five spots from 2019, and was followed by Seattle-Tacoma, San Diego, Riverside-San Bernardino and Tampa-St. Petersburg.

Phoenix came in at No. 6, up seven spots from 2019, which tied Tampa-St. Petersburg for the largest climb in the index.

The report noted that, “Positive business and lifestyle climates draw new residents and companies to the Valley. Phoenix stands out this year with one of the nation’s fastestgrowing economies as firms are drawn to the favorable business environment, lower expenses and an increasingly educated workforce. This will propel Phoenix to the top spot in net migration in 2020, adding more than 77,000 new residents, many of which being young professionals.”

8 | March-April 2020

Costs, Lowest Taxes, Lowest Vacancy (with an 8 percent vacancy rate) and Land Prices.

Overall, the report stated that, “Phoenix’s emergence in the past year for hyperscale builds makes sense; incentives are available from a low base, land costs are among the lowest in this study and the market has very low vacancy. By utilizing the cost savings on offer, operators and major cloud services providers are choosing to look to Phoenix as their new hub for servicing U.S. West Coast markets that are individually far more expensive to develop in.”

Rank 2020

Rank 2019

Orlando

1

6

Seattle-Tacoma

2

5

San Diego

3

2

Market Name

Riverside-San Bernadino

4

7

Tampa-St. Petersburg

5

12

Phoenix

6

13

Minneapolis-St. Paul

7

1

Boston

8

8

Sacramento

9

11

New York City

10

3

Oakland/East Bay

11

9

Fort Lauderdale

12

17

Los Angeles

13

4

Raleigh

14

The Greater Phoenix office market experienced its best year since 2008, posting very strong net absorption and adding more than 3.4 million square feet of new space to the inventory, according to the Colliers International in Arizona 2019 yearend Greater Phoenix office market report.

Positive net absorption exceeded one million square feet during fourth quarter 2019. This marked the 31st consecutive quarter of positive net absorption. The largest deals executed during fourth quarter were located in Tempe, Chandler and the Scottsdale Airpark. The largest deal was for DoorDash, which leased 345,795 square feet at The Grand at Papago Park Phase II. Vacancy in the office sector hit 12.7 percent at the end of the year, following a drop of 120 bps during 2019. The vacancy rate dropped 70 bps during fourth quarter.

These improvements in vacancy are evident in all classes of office buildings, which reflects the overall strength of the local office market.

A decline in vacancy is putting pressure on rental rates, which increased 4.4 percent from a year ago. Asking rents, which hit an average of $24.62, are expected to moderately rise during 2020 as new developments push up rates.

QUARTERLY NET ABSORPTION

YTD NET ABSORPTION

1,062,381 SF

3,551,769 SF

20

UNDER CONSTRUCTION

YTD COMPLETIONS

2,848,823 SF

3,107,186 SF

Atlanta

15

18

Portland

16

10

San Jose

17

14

San Francisco

18

15

Salt Lake City

19

19

Denver

20

21

OVERALL VACANCY 12.7 %

ASKING RENTS $24.62 per square foot

Sundt, Kiewit honored for work on Tucson project Sundt Construction, Inc. and its joint venture partner Kiewit were recently awarded the Associated General Contractors of America (AGC) Arizona Chapter’s Build Arizona award for its work on the Ina Road Traffic Interchange in Tucson.

“Sundt is extremely grateful to receive such a prestigious award,” said Ryan Cannon, Sundt Project Manager. “Our partnership with ADOT was essential to the outcome of the project.

It’s a true example of how planning, attention to safety and quality and a focus on partnering can result in a successful project.”

The construction manager at risk project included reconstruction of the interchange at Ina Road as a precast concrete bridge overpass to I-10. It also included several street improvements, channel construction, drainage, retaining walls, signals, lighting and utility relocation.

The joint venture team began work in January 2017 to elevate the Ina Road

50

interchange, widen I-10 and Ina Road, and replace the existing Santa Cruz River Bridge.

The improved infrastructure helps reduce delays and increase safety for the nearly 25,000 drivers who use the interchange every day.

Of the various improvements made, the

deals and counting

It is a working relationship that has spanned more than three decades, and all indications are it will roll on well into the future. Brothers Don and Payson MacWilliam are both executive vice presidents at Colliers International and together have formed a rare

partnership with Sun State Builders.

The MacWilliam's have delivered 50 buildto-suit projects to Sun State over the last three decades, all in the Southwest Valley.

“The first build-to-suit was for a company called Record Center Innovations, Inc.,” Payson

most notable is the bridge, which takes traffic over the Union Pacific Railroad tracks and reduce delays on a heavily used four-lane road. Railroad crossings were previously at street level, causing frequent backups for daily drivers. Now drivers have safer, faster access to and from the interstate.

MacWilliam said. “We sold Sun State 38 acres in the Reywest Industrial Park (at 39th Ave. and Washington), which led to the first 14 build-tosuits.”

That first deal quickly led to significantly more land sales.

“It’s been an ongoing thing where Don and I have tried to stay out in front in terms of finding pieces of dirt, parcels of land that are good sites," Payson MacWilliam said. “So we then take them to Sun State, Jim Chamberlain, and he would buy the land. Then we’d start laying buildings on it and take those buildings to the marketplace and send them to the tenants.”

To date, the MacWilliam team and Sun State have delivered 5.9 million square feet of product to the market, ranging in size from 25,000 square feet to 400,000 square feet.

Payson MacWilliam said he and his team continue to go back to Sun State because they have done nothing but deliver precisely what the tenant wants. In fact, MacWilliam said they currently have some land in escrow and joked that they might reach 70 build-to-suits with Sun State before they know it.

“Everybody in that organization, top to bottom, is world class,” he said. “They treat people fairly and they build a good product.”

9

EXECUTIVE PROFILE

Ready for battle Advice from ‘the Boss’ set Liguori off on successful path

By STEVE BURKS

S

pring is a wonderful time of year for Robert Liguori, who leads Waste Management Inc.’s construction solutions management team in the Four Corners Market area.

Liguori likes the Spring because it gives him more opportunities to hike and golf and work in his yard, and it also means the Waste Management Phoenix Open is in his rear-view mirror for a while.

A typical first question Liguori says he’s asked when he meets someone new is, “Can you get me Waste Management Phoenix Open suite tickets?”

Liguori has been with Waste Management for nearly nine years.

As of the end of 2019, Liguori has increased the Phoenix Market for My Book of Business for WM’s Construction Division by over 404 percent since joining company.

Liguori brings more than 30 years of experience in environmental industries. He began his career in New York and early in his professional life he permitted two EPE Environmental Facilities and closed the first privately owned landfill in New York state after new regulations were passed. He also permitted the first construction and demolition debris rail service transfer station north of New York City.

“I cut my teeth in the waste industry, spending 15 years in a small, fullyintegrated solid waste business where I spent a tremendous amount of time with my father ‘the Boss’ learning every aspect as he had learned in the creation of the business,” Liguori said.

“He was a Navy veteran and always would remind me that ‘in the Navy we were always ready for battle, so always

10 | March-April 2020

consider that if you are running one truck, you need two; the second as the backup. If you have two running, you need three and so on.’ This simple yet sometimes overlooked fact of waste industry services, if not followed, leans towards either poor service from not keeping up or losing the customers.”

With the construction solutions group, Waste Management works with general contractors on the transport and recycling of materials from a job site. For Liguori’s team, if they are doing their job right, the client doesn’t notice anything but the debris-free job site.

“Builders have projects and they need to sometimes recycle the construction debris,” Liguori said. “So we have the most amount of assets — transfer stations, landfills and thirdparty partners where we’ll bring assets like scrap metal, concrete or wood to be recycled — than any other waste hauler in the state.

“These construction sites must look clean, because if they look clean, then they look safe. And if they aren’t clean, then the neighbors don’t like it. And if they don’t look clean, the client of the general contractor is not happy.”

Despite its looming presence in the Valley, which is helped greatly by the exposure the PGA Tour event brings each year, many people are unaware of the wealth of services Waste Management provides.

“People are surprised, especially when the conversations continue,”

Liguori said. “Waste Management is the largest environmental services firm in North American as well as the largest recycler. Over the years, WM has made huge investments in technologies and development of companies that fit into the circular economy by diverting as much ‘waste materials’ as possible to be recycled, reused, repurposed and processed into usable supply chain product.”

Liguori has successfully led the construction solutions management team for the past eight-plus years and does so with a team-first attitude and the ability to listen to what the customer or employees need to get the most out of their relationship with Waste Management.

“My style would be summed up as a coach; communicating, explaining, enabling and delegating,” Liguori said.

“It is always empowering and impactful the support and operations teams to believe that they are as important as anyone one, that their comments have real meaning and are appreciated.

“It is key for me to ask the questions and understand our customer better than the competition. I need to innovate and optimize alternative best management practices to find solutions to achieve goals, and extract value from the materials we handle. Once those discussions are complete, then I coach and explain how Waste Management interacts, operates and proactively approaches serving its customers.”

ATION INNOV az business

awards / 2020

Unveiling and honoring

organizations and individuals stretching the limits of how business is done

MAY 6, 2020 The Clayton House // Scottsdale // 5:30-8:30 PM

For information on getting involved and corporate sponsorships, please contact AZ Big Media publisher, Josh Schimmels at josh.schimmels@azbigmedia.com

AFTER HOURS AT THE GYM: Larry Downey, right, vice chairman at Cushman & Wakefield, poses with his boxing trainer Joe Serrano at Pro Edge Boxing in Phoenix. (Photo courtesy of Larry Downey)

???????

Bringing the hits Cushman & Wakefield’s Downey finds rejuvenation in the boxing gym

By STEVE BURKS

T

he best kind of exercise stimulates not only the body, but the mind. Workouts that keep the mind active and engaged are typically the most rewarding. For years, Larry Downey was struggling with finding a workout regime that wasn’t a monotonous bore.

“I found that the treadmill is boring and some of the weightlifting and all that stuff was great, but it just didn’t hold my interest,” said Downey, vice chairman at Cushman & Wakefield.

“Now, I look forward to going to my workout. I actually found an activity that I can get some great exercise, do the cardio that burns a bunch of calories and actually look forward to going there after work.”

Oh, and he forgot to mention, he gets to take some punches to the face for good measure.

Downey has found his sweet spot training in the sweet science of

12 | March-April 2020

boxing. Three days a week, Downey works with longtime Valley boxing trainer Joe Serrano, owner of Pro Edge Boxing in Phoenix.

Downey is the lead of the Downey Tenant Advisory Team at Cushman & Wakefield. Downey, with more than 33 years of commercial real estate experience, has been involved in over 4,500 lease and Sale transactions totaling more than 100 million square feet, in excess of $6 billion in total consideration. In 2020, Downey was awarded the CRE (Counselor of Real Estate) credential by The Counselors of Real Estate, an international group of high profile real estate practitioners who provide expert advisory services to clients on complex real property and land-related matters.

Downey also gives back by participating in mentorship programs, including the Executive Shadowing program for his alma mater, Northern Arizona University and the W.A. Franke College of Business.

Downey said he found his way into the boxing gym after failing at other workouts. He had let his health and fitness go for a while as he was coming up in the business, raising a family of three daughters and traveling a lot. He said his weight went up, which happens easily on his 5-foot-5 frame.

Downey said he’s been doing his boxing training for three years, all of it with Serrano at Pro Edge. He said his workouts typically consist of putting on heavy workout gloves that weigh 18 ounces and doing work on the heavy punching bag, focus mitts and even sparring in the ring.

Downey said that punching hard is the easiest thing to do. The mental part of the sport, along with being able to protect yourself from punches, is the part that keeps him coming back.

“Everyone can pretty much learn how to throw a punch using offensive punch combinations (jabs, straight right, upper cuts, hooks), but learning how to defend yourself is a whole different thing,” Downey said. “That was really one of the more difficult things to learn, or that I continue to learn, is just how to defend yourself and move around the ring and be able to push off punches.”

One might think that taking punches in the ring would leave Downey feeling worse for wear, but he says the opposite is true. He said that boxing has given him a place to work out much of the stress of working in a high-intensity commercial real estate market and decompress after a day chasing deals. He said after the three years in the gym, his body feels stronger, he’s sleeping well and feels better each morning after workouts.

“I think the other thing is it gets my mind off of work, because I’m thinking the whole time,” Downey said. “Every time I get in the ring, I learn something new. I would recommend it. Even just to get in and hit the bag or go to a class of some type. I like the one on ones, because I learn a lot.”

13

NEW TO MARKET A

D

E

MIXED-USE A THE EDGE DEVELOPER: Palmer Development Group and Dominion Management Company GENERAL CONTRACTOR: Haydon Building Corp ARCHITECT: Butler Design Group BROKERAGES: JLL and Cushman & Wakefield LOCATION: 90th St. and Loop 101, Scottsdale SIZE: 250,000 SF VALUE: WND START/COMPLETE: January 2020/March 2021

14 | March-April 2020

MULTIFAMILY B ADELINE DEVELOPER: Hines GENERAL CONTRACTOR: Whiting-Turner ARCHITECT: SmithGroup LOCATION: 222 E. Jefferson St., Phoenix SIZE: 480,000 SF (379 units) VALUE: WND START/COMPLETE: February 2020/Q1 2021

MIXED-USE C GOETTL CORPORATE HEADQUARTERS DEVELOPER: Goettl Air Conditioning & Plumbing GENERAL CONTRACTOR: LGE Design Build ARCHITECT: LGE Design Build BROKERAGE: Colliers International LOCATION: 8701 E. McDowell Rd., Scottsdale SIZE: 60,000 SF VALUE: WND START/COMPLETE: Q2 2020/Q4 2020

B

C

F

MULTIFAMILY D SPRINGS AT DEER VALLEY DEVELOPER: Continental Properties GENERAL CONTRACTOR: McShane Construction Company ARCHITECT: Phillips Partnership LOCATION: 24025 N. 23rd Ave., Phoenix SIZE: 296 units VALUE: WND START/COMPLETE: January 2020/June 2021

INDUSTRIAL E LANDING 202 DEVELOPERS: Marwest Enterprises GENERAL CONTRACTOR: Willmeng Construction Inc. ARCHITECT: Ware Malcomb LOCATION: 8000 block of E. Ray Rd., Mesa SIZE: 605,000 SF VALUE: WND START/COMPLETE: January 2020/Summer 2020

HEALTHCARE F BANNER ASPERA DEVELOPER: Banner Health and NexCore Group GENERAL CONTRACTOR: Haydon Building Corp ARCHITECT: SmithGroup LOCATION: 75th Avenue and the Loop 101, Glendale SIZE: 128,000 SF VALUE: $53 million START/COMPLETE: January 2020/Spring 2021

15

GAMERS PARADISE Atari Hotels concept brings modern, retro together in Phoenix

By STEVE BURKS

F

or months, Shelly Murphy, CEO of GSD Group, and her business partner and producer of Teenage Mutant Ninja Turtles, Napoleon Smith III, worked quietly on bringing the Atari Hotels concept to life. So, in January, when their PR firm sent out the first press release about the hotel, she wasn’t sure what kind of response it would provoke.

It was clear immediately that this wasn’t the kind of response a simple press release normally gets. This was going to be a big deal.

“The first hour that the press release went out, our website was up, but it crashed because we had 20,000 hits in less than an hour,” Murphy said. “We knew that we had a really amazing opportunity and idea and we knew that the market was there for something like this. But it’s been received so well from everywhere.

We’ve had inquiries internationally, all over the world, and the press that’s come in embracing it with excitement has been really exciting.”

Phoenix-based GSD Group is leading the design and development of the hotel, which will break ground sometime in 2020 at a site along Central Ave. in Roosevelt Row. After the Phoenix location, seven more hotels are planned for Austin, Chicago, Denver, Las Vegas, San Francisco, San Jose and Seattle.

True North Studio, a Phoenix-based real estate developer — currently working alongside GSD Group with Steve Wozniak’s Woz Innovation Foundation — will develop the first Atari-branded hotel.

“We are thrilled to partner with GSD

16 | March-April 2020

Group and True North Studio to build the first-ever Atari branded hotels across the United States. Together we’ll build a space that will be much more than just a place to stay,” said Fred Chesnais, CEO of Atari, in the initial press release. “Atari is an iconic global brand that resonates with people of all ages, countries, cultures and ethnic backgrounds and we cannot wait for our fans and their families to enjoy this new hotel concept.”

More than 2.5 billion gamers across the world spent more than $152.1 billion on games in 2019 alone; an increase of 9.6 percent year on year.

One of the most distinctive trends in gaming is gamers gravitating toward recognizable intellectual property. Atari Hotels will offer consumers exactly that.

“With everything that’s happening and trending with E-sports right now, which we believe will be a big audience for the hotel, and Phoenix is closely adjacent to Los Angeles and San Francisco and Las Vegas; I think it’s really a win/win for Phoenix,” Murphy said. “One of the things that we feel is going to be really unique, is we’re going to have co-working space that will be designed for gamers. So you can come from all over the world, stay in the hotel, but also have the opportunity to develop that ecosystem or networking of like-minded individuals who are coding games and developing and working together.”

Murphy said the Atari Hotel will have something for everyone, even those old timers who grew up spending hours with their Atari joystick fighting off Asteroids or Space Invaders.

“When creating this brand-new hotel

concept, we knew that Atari would be the perfect way to give guests the ‘nostalgic and retro meets modern’ look and feel we were going for. Let’s face it, how cool will it be to stay inside an Atari?” said Napoleon Smith III. “Space Invaders is probably one of the top requests right now,” Murphy added. “That’s what people are looking for in terms of wanting to be engaged with just really fun, nostalgic entertainment. There’s going to be a lot of fun and they are being designed for all age groups and all demographics.

So if you’re that nostalgic person that remembers Atari from way back in your youth and you want to come into the arcade bar and have a cocktail and play Space Invaders or Centipede and just enjoy that time, you can. Or, if you’re a competitive E-sports player, you’ll be able to come and be in a state of the art studio and venue that supports those tournaments and competitions.”

A very crucial aspect of the Atari Hotel concept is embracing technology and bringing it to the users. Plans are for gaming spaces for virtual reality or augmented reality games.

“We want to bring to the public a piece of everything that is happening in experiential entertainment right now with the immersive experiences, with artificial reality and augmented reality,” Murphy said. “So to have that throughout the hotel, those types of experiences, I think is going to be really unique and fun.”

Beside the retro and modern gaming venues and experiences, the hotel will have all of the other bells and whistles of the modern hotel, with restaurants, meeting rooms, event rooms and an exercise gym. Murphy said that GSD Group is in the planning and design phase for different room concepts.

“There will hopefully be a room for all levels,” Murphy said. “If you just want a room, you can walk in and it can be very retro or vintage, but high tech. Or, you might walk into a room that is all Space Invaders or very futuristic. And we’ll have premier suites that are designed so that if you wanted to host your child’s birthday slumber party there, you would have a suite that would be prepared for that with big screens and top of the line gaming equipment so those kids can have fun.”

17

MULTIFAMILY/SALES

$124M | 497,600 SF

DISTRICT AT SCOTTSDALE 15745 N. Greenway Hayden Loop, Scottsdale BUYER: F&B Capital SELLER: Kaplan Management Company, Inc. BROKER: N/A

$96.2M | 514,973 SF

$78.5M | 244,800 SF

THE GRIFFIN APARTMENTS 3234 N. Scottsdale Rd., Scottsdale BUYER: Starwood Capital Group SELLER: The Carlyle Group BROKER: CBRE

3993 N. 3rd Ave., Phoenix BUYER: N/A SELLER: Evergreen Development Co. BROKER: Institutional Property Advisors

$96M | 424,368 SF

$75.5M | 266,522 SF

AVANA DESERT VIEW 17030 N. 49th St., Scottsdale BUYER: Greystar SELLER: IMT Capital BROKER: N/A

LIV GOODYEAR 15361 W. Virginia Ave., Goodyear BUYER: Ehyan Caldwell SELLER: Liv Communities BROKERS: Institutional Property Advisors

RETAIL/SALES

$55.4M | 91,204 SF

THE SHOPS AT GAINEY VILLAGE 8787 N. Scottsdale Rd., Scottsdale BUYER: First Washington Realty, Inc. SELLER: Principal Real Estate Investors, LLC BROKER: Cushman & Wakefield

$38.4M | 165,481 SF

$18.5M | 153,740 SF

$20.9M | 45,186 SF

$9.2M | 106,286 SF

2670-2980 E. Germann Rd., Chandler BUYER: Consolidated-Tomoka Land Co. SELLER: Vestar BROKER: N/A CENTERPOINT ON MILL 730 S. Mill Ave., Tempe BUYER: Wexford Capital LP SELLER: YAM Properties BROKER: N/A

18 | March-April 2020

THE GROVES 1110-1320 W. Elliot Rd., Tempe BUYER: Lakeview Village Corporation SELLER: N/A BROKER: Cushman & Wakefield

5905-6080 W. Bell Rd. BUYER: Zeitlin Capital SELLER: TriGate Capital BROKER: N/A

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

Sources: Daniel Zawisha at Cushman & Wakefield Research.

OFFICE/SALES

$94.7M | 288,435 SF

BILTMORE CENTER 2398 E. Camelback Rd., Phoenix BUYER: Partners Group AG SELLER: Alliance Bernstein LP BROKER: JLL

$90M | 213,026 SF

THE GRAND AT PAPAGO PARK 1101 W. Washington St., Tempe BUYER: Susquehanna Holdings Company SELLER: Lincoln Property Company BROKER: Newmark Knight Frank

$69.5M | 211,624 SF

BILTMORE CENTER 2390 E. Camelback Rd., Phoenix BUYER: Partners Group AG SELLER: Alliance Bernstein LP BROKER: JLL

LAND/SALES

$23.8M | 5,165,410 SF

$65M | 372,000 SF

HENKEL CORPORATE CENTER 7201 E. Henkel Way, Scottsdale BUYER: Stockdale Capital Partners SELLER: Henkel Corporation BROKER: CBRE

$13.6M | 169,747 SF

CANYON CORPORATE PLAZA 2512 W. Dunlap Ave., Phoenix BUYER: ViaWest Group SELLER: Northridge Capital, LLC BROKER: JLL

INDUSTRIAL/SALES

$107.5M | 794,320 SF

(118.6 acres) WARNER MEADOW NE Warner Rd. & Recker Rd., Gilbert BUYER: Lennar SELLER/BROKER: Scottsdale Investment Management

BROADWAY 101 COMMERCE PARK 2140 W. Broadway Rd., Mesa BUYER: BKM Capital Partners SELLER: Blackstone Property Advisors BROKER: N/A

$21.5M | 19,302,146 SF (443 acres)

$35.7M | 115,500 SF

$19.4M | 2,688,841 SF

$22.6M | 347,645 SF

$16,6M 36,442,069 SF

$21,8M | 222,232 SF

W. Lone Mountain Pkwy., Peoria BUYER: N/A SELLER: N/A BROKER: N/A

(62 acres) 385 Residential Lots, Florence BUYER: N/A SELLER: N/A BROKER: N/A

(836 acres) S. Cotton Lane & W. MC 85 Hwy., Goodyear BUYER: N/A SELLER: Lakin Cattle Company BROKER: N/A

$12.8M 5,445,000 SF (125 acres)

N. Reems Rd. & W. Olive Rd., Waddell BUYER: N/A SELLER: N/A BROKER: N/A

1400 W. Grant St., Goodyear BUYER: CBRE Global Investors Ltd. SELLER: Seefried Properties, Inc. BROKER: N/A PARK 79 7875 W. Buckeye Rd., Phoenix BUYER: Colony Capital, Inc. SELLER: Hines BROKER: JLL

6205 S. Arizona Ave., Chandler BUYER: Cohen Asset Management, Inc. SELLER: Unique Investment Inc. BROKER: Lee & Associates

$19.1M | 160,140 SF

PV/303 4445 N. 169th Ave., Goodyear BUYER: Lexington Realty Trust SELLER: Merit Partners, Inc. BROKER: Cushman & Wakefield 19

LEGISLATIVE UPDATE

AAED supports the Arizona Board of Regents budget request

T

he Arizona Association of Economic Development (AAED) serves as the leading statewide advocate for responsible economic development in Arizona since 1974.

AAED’s foundation has been rooted in three fundamental pillars — advocacy, education and collaboration — that continue to affect positive change and increase Arizona’s competitive position to attract investment and create jobs.

AAED’s legislative priorities for 2020 includes ensuring a qualified workforce and workforce pipeline. We support sustainable policies and funding for education programs that result in a thriving and qualified Arizona workforce. In recent years, Arizona has increased education funding. It is a positive start to a continuing legislative dialogue for high quality educational systems. High-quality educational systems are a powerful asset for Arizona when attracting companies and talent. Support for a healthy innovation pipeline, combined with a robust internship and craft training ecosystem have verifiable impacts on the overall economic health of our state.

A qualified workforce with a balance of

20 | March-April 2020

Mignonne Hollis AAED

post-secondary education and workforce training will support Arizona’s competitiveness in the retention and attraction of high-wage jobs.

Arizona has advanced its economic position more than any other state since the Great Recession. However, the job is never done. We must invest in those areas that will yield a positive return for Arizona taxpayers, and also improve the quality of life of individuals.

The Arizona Board of Regents (ABOR) has developed a business plan to further advance the future of Arizona’s economy and workforce, and

it is carefully designed to improve the lives of Arizona residents and protect taxpayers. In addition to the fiscal year 2021 request to make the $35 million appropriated in fiscal year 2020 permanent, this strategy would protect Arizona’s economy by providing a high return on investment projects which will ultimately produce a net gain in revenue. Small changes in economic growth from quality economic development programs yield massive fiscal benefits.

Arizona has made meaningful strides in increasing education funding.

It is a positive start to a continuing legislative dialogue. The investment that ABOR is suggesting not only is aimed at developing our future workforce, it will also strengthen our economy. The initiatives may influence new discoveries and companies that could increase our wealth generation (grow the GNP) in Arizona.

This is a win – win for economic development in our State.

Mignonne Hollis is the president-elect of the Arizona Association of Economic Development.

Time for tax reform Budget surplus provides opportunity for state leadership

S

tate revenues are coming in at a much higher than anticipated rate.

This is due in part to an economy that keeps humming along as well as new sales tax revenues from out-ofstate e-commerce companies that are now required to remit taxes in Arizona.

Current projections put Arizona at a budget surplus approaching $1 billion for the 2021 fiscal year.

While this is indeed great news for our state, it does complicate budget negotiations at the state capitol.

Republican leadership at the State Senate, State House of Representatives and Governor Ducey all have differing views on how the surplus funds should be spent and how much to give back to taxpayers.

Additionally, Democrats who now hold 29 out of 60 seats in the House have offered up their own proposal. Undoubtedly, K-12 public education will receive the lion’s share of these funds. Other big-ticket items include infrastructure projects and public safety/corrections.

Suzanne Kinney NAIOP

NAIOP is working hard to encourage lawmakers to view these abundant times as an opportunity to make Arizona an even more competitive state for business.

One of the main reasons we are seeing such extraordinary revenues is that existing businesses are thriving, and new businesses are coming into town. These businesses see that Arizona has taken the right approach to regulations and

taxation while increasing investment in education to develop a world-class workforce. These businesses are creating new jobs and contributing to the tax base, resulting in a virtuous cycle of economic growth and corresponding increases in state revenue.

However, Arizona is not alone in courting new business prospects. Other markets are making aggressive moves to lure businesses their way. Now is the prime time to make long-needed adjustments to our tax system that will position Greater Phoenix, Tucson and smaller markets around the state for continued growth despite aggressive competition. Arizona’s commercial property taxes are still among the highest in the region. Due to commercial property being assessed at a much higher rate the residential property, businesses pay an effective tax rate of 2.25 percent in Phoenix and 2.05 percent in Tucson.

This compare unfavorably to competitor markets including Salt Lake City 1.04 percent, Las Vegas 0.91 percent, Los Angeles 0.96 percent, Seattle 0.75 percent, Denver 1.76 percent and Boise 1.17 percent, according to the Minnesota Center for Excellence’s 2019 50-State Property Tax Comparison Study.

Fortunately, several legislators recognize this disparity and have presented proposals to move us in the right direction. Senator J.D. Mesnard (R-Chandler) has offered a tax omnibus package that includes reductions in the commercial property tax assessment ratio and the state equalization property tax rate. Representative Warren Petersen (R-Gilbert) has introduced legislation that would cut the state equalization property tax rate almost in half. Both approaches are gaining support among members of the Legislature. Our work now is to ensure that some version of these measures gets incorporated into the final budget deal that is reached by the Governor and legislature. This will be no easy task given the competing pressures for how to spend the budget surplus, but along with our coalition partners, NAIOP will make the case for a more competitive tax environment that supports continued growth.

Suzanne Kinney is president and CEO, Arizona Chapter of NAIOP. 21

LEGISLATIVE UPDATE

Commercial real estate property tax reform on front burner at legislature

B

uilding Owners and Managers Association (“BOMA”) of Greater Phoenix and Commercial Real-estate Executives for Economic Development (“CREED”) urges the Arizona Legislature to consider property tax reform in order to make our state more competitive for high wage job creation this session and a number of bills to address this have been introduced to do that which hopefully by press time have made the finish line. Our two organizations represent some of the largest owners and property managers of commercial facilities in the state.

ARIZONA’S PROPERTY TAX SYSTEM The Arizona Constitution requires all property in the state to be subject to taxation, unless exempted by the Constitution (or by federal law).

Additionally, the Constitution’s “uniformity clause” provides that “…all taxes shall be uniform upon the same class of property within the territorial limits of the authority levying the tax, and shall be levied and collected for public purposes only.”

22 | March-April 2020

Tim Lawless CREED

Jake Hinman BOMA

Property tax in Arizona is assessed and administered in each individual county by the county assessor. State statute assigns Legal Classes to classify property based on the use of the property and an “assessment ratio” will be applied to the value. The “assessment ratios” are provided by statute, as follows: • Class 1 – 18% – Commercial, Industrial, Utilities, Mines • Class 2 – 15% – Agricultural, Vacant Land • Class 3 – 10% – Residential Primary Residence

• Class 4 – 10% – Residential Rental • Class 5 – 15% – Railroad, Private Car, Airline Flight • Class 6 – 5% – Residential Historic/ Enterprise & Foreign Trade Zone • Class 7 – 18% (1% renovations) – Commercial and Industrial Historic Property • Class 8 – 10% (1% renovations) – Residential Rental Historic Property • Class 9 – 1% – Private improvements on public land

HIGH COMMERCIAL REAL ESTATE PROPERTY TAXES MAKE ARIZONA LESS COMPETITIVE

• Historically, commercial property tax burdens have been among the highest in the United States where Arizona traditionally was in the top 10.

While we have made progress over the last 15 years in lowering the commercial assessment ratio from 25 percent to 20 percent (and phasing that in more quickly over time) and then lowering it from 20 percent to 18 percent a few years later, we still rank 8th highest in the U.S. per the 2017 Minnesota taxpayer’s group for industrial properties with $25 million in land and

building in the City of Phoenix.

• Every major economic development “blue ribbon” task force put together by the State to recommend policies to make our tax code more competitive from “Fiscal 2000” from the 1990s to the “Citizen’s Finance Review Commission” (CFRC) put together by the Napolitano Administration not long after the start of the 9-11 recession, has found that high commercial property taxes and especially the inequitable assessment ratio on business is a key impediment to high wage job creation.

• The unusually high assessment ratio is why economic developers have been over using tax abatement tools like the government property lease excise tax (GPLET) which provides an 8-year abatement and leasing of commercial buildings on university-owned property which can be a 99-year abatement in order to not lose key projects to other states. This causes distortions in the property tax system where these tax savings are shifted in particular to industrial properties and have come under increasing legal scrutiny due to the State Constitution’s “uniformity clause” or “gift clause” prohibition.

• If the state increases commercial property taxes more in future, there will be greater pressure to push the envelope on tax abatement tools (to stay competitive with other states on high employment projects) increasing the chance they may be struck down by the courts.

• In contrast to the commercial real estate 18 percent assessment ratio for all businesses (Class 1), residents (Class 3) have a 10 percent ratio which puts residential tax burdens at about the 10th lowest in the U.S. as a statewide average for a $150,000 home and 25th or exactly average for the City of Phoenix versus a U.S. average.

• Looking at all property taxes, while Class 1 (commercial properties) has only 21 percent of all taxable property in the State (9 classes total), commercial real estate actually pays 36 percent of the roughly $8 billion levied annually where about half goes to K-12 schools while Class 3 (primary residential) has roughly 50 percent of taxable value yet only contributes a small share more than us at 37 percent.

• This disparity is again due to the fact residential has a 10 percent assessment ratio while commercial real estate is 1.8 times higher at 18 percent. (The other 7

classes pick up the 27 percent balance which combined is smaller than the CRE share alone).

SOLUTIONS

• A phased-in lowering of the Class 1 assessment ratio from the current 18 percent to 17 percent in order to keep high wage job creation going and to lessen the reliance on expanded use of tax abatements that involve equity and uniformity issues. In order to ameliorate the tax shift to residents, toggle or also phase down the State Equalization Property Tax Rate (SETR) which is paid by all classes and could offer key relief to homeowners which would be especially appreciated in an election year.

• In a year when California is going to the ballot with a proposal to raise property taxes $10 billion on businesses through a “split roll” because Prop 13 has worked so effectively, lowering commercial property taxes and property taxes in general for all citizens would be a boon to economic development as more companies flee California high costs.

Tim Lawless is president of CREED. Jake Hinman represents BOMA Greater Phoenix.

23

FINANCE

Ask the experts — CRE financing

24 | March-April 2020

W

ith the rapid rate of commercial real estate development in the Valley, it’s easy to assume that it’s all smooth sailing, and if a developer or owner needs money for a project, the financing institutions simply write the checks and the project moves ahead.

If only that were the case.

Each project and each financing loan to make that project a reality have their own obstacles to overcome. AZRE Magazine asked financing experts in the Valley to give us some insight on how they overcome lending obstacles for commercial real estate projects, posing this question:

“What is a memorably difficult lending or financing request you’ve completed recently and how were you able to maneuver through those difficulties?”

“We recently delivered a financing commitment to the owners of a property that is currently being leased out as a special purpose entertainment venue. Special purpose properties are generally difficult to finance utilizing long term repayment schedules due to the fact that they have less end user prospective tenants

John Kinser

"We not only took the time to understand the atypical risks associated the tribal ground lease, we structured the construction loan to accommodate the parcel splits and pad releases that were specific to this mixed-use parcel.”

– John Kinser in the event of a tenant vacating. We took the time and effort to understand the surrounding real estate market, determining what the best use of the property would be if the special use tenant were to vacate and the cost necessary to convert the property to a more conventional use. We ensured that the owners had cash equity in the project and had resources to convert the property if necessary. With a little more due diligence, we were able to mitigate the risks with this type of property and find the right solution for our client.”

Alex Shaffer, regional president, Meadows Bank “In 2019, we were approached by a real estate broker representing a school looking to acquire land and develop for their second campus. The total project was more than $3 million. Through our first discussions we learned there were obstacles that required us to be creative in helping the borrower accomplish their goal.

Some of the challenges we identified were: a) liquidity available for the down payment; and b) construction risk.

Through our expertise in the SBA programs available, we provided two scenarios for the owners. After reviewing both options, they elected

Alex Shaffer

Mike J. Thorell

to use the SBA 504 loan program.

This provided them with significant advantages such as only needing to inject 10 percent cash into the project, receive a long-term fixed interest rate and the opportunity to keep their other real estate assets separate from the loan upon completion of the project.

To add to the other challenges, it was brought to our attention an extra environmental study would need to be completed, which can become quite costly to a borrower. Once this was identified, the general contractor, architect, borrower and lender worked together to reduce the costs out-ofpocket to the borrower, while still adhering to the guidelines set forth by the SBA and Arizona.

Without our team’s experience navigating the SBA loan process, the project would’ve been difficult to do.

As a result, the small business owners were able to expand their operations and will be adding more jobs to our local economy.”

Mike J. Thorell, president — commercial & residential lending, Arizona Federal Credit Union “At Enterprise Bank our goal is to understand our client’s business plan and then tailor flexible solutions which meet the needs of said business plan.

One recent financing request involved the development of a mixed use parcel on tribal land, subject to a tribal ground lease. We not only took the time to understand the atypical risks associated with the tribal ground lease, we structured the construction loan to accommodate the parcel splits and pad releases that were specific to this mixed-use parcel.”

John Kinser, Sr. vice president, director of commercial real estate, Enterprise Bank & Trust.

25

INDIAN COUNTRY

Hospitality hotbed Morehart leads very active market for Mortenson

By STEVE BURKS

H

ospitality is a hot commodity right now in the Arizona market, with Phoenix as the epicenter. There are hospitality projects underway in markets all over the Valley and these new projects come on the heels of one of the most anticipated hotel projects Arizona has seen in a while, the Great Wolf Lodge in Scottsdale on Salt River PimaMaricopa Indian Community land.

“Right now, I’m involved with three hotel projects, Hyatt House/Hyatt Place in Tempe, another one we’re breaking ground on in March and then another one in the design phase,” said Melanie Morehart, project executive for Mortenson Construction, who was a project executive on the Great Wolf Lodge project and is the project executive on the Hyatt Place/Hyatt House project. “It’s exciting, just the

HYATT HOUSE/HYATT PLACE: The 151,000-square-foot hotel is the first project to go up in the Tempe Novus Innovation Corridor.

26 | March-April 2020

opportunity in the Valley right now, I think it’s great. I think it was just the right time for it to explode in the Valley.”

Morehart has had her hand in some marquee hospitality projects during her career. Morehart transferred to Mortenson’s Phoenix office in 2019 to lead all of the company’s local hospitality projects. Before coming to Phoenix, Morehart worked for Mortenson in Denver, where she led the construction of the Gaylord Rockies Resort and Convention Center, a 1.96 million square foot, 85 acre development that includes a 1,500room Marriott hotel, more than 1.9 million square feet of hotel, retail, commercial and convention space and indoor/outdoor recreational park.

“That was an amazing project,” Morehart said. “It was just huge,

challenging, and we were on that job for 34 months, so I spent a lot of time on it, so you feel a huge sense of accomplishment at the end of the day.

“But I really am enjoying the Hyatt Place/Hyatt House in Tempe right now.

Because the atmosphere right there is really fun. It’s super exciting being right there on ASU’s campus and all of the other construction that’s nearby, there’s a really cool sense of excitement in that area right now.”

Morehart began her career with Mortenson as a project engineer and worked her way up through the ranks. She said before she became a hospitality project executive, she worked on a large, diverse range of projects that helped shape how she operates in her current role.

“I actually have a real varied background,” Morehart said. “I’ve done

Celebrating Women in Construction Week

By STEVE BURKS

Melanie Morehart is one of the reasons the industry celebrates Women in Construction Week (WIC), which is the first week of March. Morehart has spent her entire 22 year career with Mortenson Construction, climbing through the ranks to become a project executive on some of the company’s most high-profile projects.

“Being a woman in construction, you’re always one of just a few, there’s not many of you in a room at a time,” said Morehart. “I also didn’t expect it to be any different when I started my career. I went to school for engineering, so it was the same there. My engineering school was 20 percent women when I went, so it was pretty common for me.”

The focus of WIC Week is to highlight women as a viable component of the construction industry. WIC Week also provides an occasion to raise awareness of the opportunities available for women in the construction industry and to emphasize the growing role of women in the industry.

Morehart has been part of Mortenson’s focus on inclusion and diversity. She said that the company has put a real focus on growing and getting more diverse, not just in gender, so that more voices have a seat at the table and those voices aren’t all the same.

“It’s not just about women in construction, but also opening up our doors to a lot of different types of people so that we get more innovative ideas out there,” she said.

Morehart said that as a woman executive, her job is to mentor younger women and show them that there is a achievable path to a successful career in the industry.

“I think the biggest thing for women is seeing that there are other people like them, and there are role models to have and there’s a path that they can take,” Morehart said. “If there’s not anyone that looks like you above you, then it’s like, ‘Well, what are my options? Where can I go in the company?’

“That’s what is really cool here, we have women in senior VP positions and I think that’s really inspiring. People see that and think, ‘Yeah, I can go really far in the industry.’

GREAT WOLF LODGE: The 350-room hotel and 85,000-squarefoot water park.

27

INDIAN COUNTRY hospitality, I’ve done some healthcare, I have done some sports stuff, as well, I even did a couple museums, so a lot across the board.”

Hospitality projects are much different than other types of construction projects. The general contractor and the hotel operator need strong lines of communication to assure that the transition from construction site to smoothly operating hotel goes smoothly.

“Depending on the brand you’re working for, really understanding their brand and their operations and making sure you can make them successful in the transition from construction to

MODULAR HOTEL: citizenM hotel in Seattle’s South Lake Union designed by architecture firm Gensler.

28 | March-April 2020

operations,” Morehart said. “We have a plan that we put together. The earlier the communication starts the better, so you really understand their timing, their duration that they need to get their team up to speed and making sure they’re ready to run the hotel as soon as we turn it over. Our whole focus is to make them successful in operations.”

Morehart said that Mortenson works to shorten the construction timeline by utilizing various levels of prefabrication models. She said that for some projects, like citizenM hotel projects that the company is currently building in Los Angeles and Seattle, Mortenson prefabricates the majority of the modular hotel rooms. Other projects, ones with more unique design elements throughout the property, are able to utilize other prefabricated pieces.

“Mortenson does a bunch of different types of prefabrication and

levels of prefabrication, depending on the project that we’re doing,” Morehart said. “We might do prefabricated exterior wall panels to prefabricated shower panels and shower pans that can really reduce the amount of labor you have on site. The less labor we have to do on site, the safer it is and the faster it can be.”

Morehart said the trends she’s seeing more of in her work on hospitality projects are updated common spaces.

She said that there are more open lobbies and social spaces in modern hotels, along with more indoor/outdoor space and other elements that make the project unique.

“One thing I have actually seen is that they try to get some local flavor into the hotels,” Morehart said. “So maybe it’s local artwork or having the building take on some design elements from the neighborhood.”

COMMERCIAL | INDUSTRIAL | HEALTHCARE DATA CENTERS | VOICE/DATA | INFRARED INSPECTION DESIGN/BUILD | 3D BIM DESIGN | TEGG SERVICES TECHNOLOGIES | 24-HOUR EMERGENCY SERVICE

Proud to be Arizona’s leading electrical contractor 75 years strong.

4020 N 16th St., Phoenix, AZ 85016 | cannon-wendt.com | 602.279.1681 ROC068027 - ROC027458 - ROC068026

WILLOWS HOTEL & SPA AT VIEJAS ALPINE, CALIFORNIA

29

INDIAN COUNTRY

What to know...Before developing on Tribal land

By STEVE BURKS

MCKESSON HEADQUARTERS

T

here are very attractive development opportunities on Tribal land in Arizona and in the Valley, especially. Along the Loop 101 in Scottsdale, the Salt River PimaMaricopa Indian Community has steadily seen development fill in the land between the freeway and Pima Rd., which is the SRPMIC boundary.

The Great Wolf Lodge, Scottsdale Autoshow, Topgolf and the new McKesson headquarters are just a few of the developments to take root in the last few years on Tribal land.

With the opening of the new Loop 202, South Mountain Freeway, new opportunities have arisen along that freeway and on Gila River Indian Community land. AZRE Magazine reached out to a pair of experts on developing on Tribal lands, Heidi McNeil Staudenmaier, a partner at Snell & Willmer; and Judith M. Dworkin, managing partner at Sacks Tierney, to get their advice on what potential developers must know to have a successful project on Tribal lands.

Q: For someone looking to do a development or construction project on Tribal lands, what are the key things they need to know to make the process go smoothly?

HMS: First, it is important to respect and understand Tribal Sovereignty. Tribes are domestic sovereigns entitled to federal common 30 | March-April 2020

law sovereign immunity. Tribes can only be sued when: Tribe has expressly waived sovereign immunity, or; U.S. Congress has authorized suit against the Tribe. And, U.S. Courts have broadly construed waiver of sovereign immunity and continue to uphold sovereign immunity for Tribes.

Also, it is important to carefully consider and negotiate the dispute resolution provisions in the contract.

Some Tribes will insist on tribal forums for dispute resolution. Tribal court jurisdiction over non-Indian owned companies and persons in civil matters is an evolving area of the law, but jurisdiction is difficult to challenge if the parties agreed to a tribal court forum.

JMD: The laws of the Tribe are often not codified. One needs to do some investigation to identify the laws that would apply to the development/ construction project. Many, but not all, Tribes have Indian preference laws and a Tribal Employment Rights Office (“TERO”). Be sure to learn how to comply with a Tribe’s preference laws as failure to comply can result in a project being shut down. Know who (what entity) you are entering into an arrangement with.

Is it the Tribe? An enterprise of Tribe? A group of allottees that are being assisted by a department of Tribe that is charged with helping allottees to develop their property? The answer to this information may seem obvious but may not be so as a Tribe can do business in many forms.

Judith M. Dworkin

Heidi McNeil Staudenmaier

Q: What are the most common pitfalls that companies stumble into when working on projects on tribal lands?

JMD: In addition to pitfalls because the Tribal law is different than you might expect, or that one doesn’t have a remedy because the entity you have an agreement with is immune from suit, or the project has been shut down because one of the subs you are using didn’t file a compliance plan with TERO. Another pitfall is a failure to anticipate the time frame that negotiations will take in Indian Country.

HMS: First, not obtaining a waiver of sovereign immunity, even if limited.

This means that the business entity has no enforceable rights or recourse in the case of a contract breach. Second, not taking the time to understand the Tribe’s culture, laws and customs.

PUBLIC SPACES

MODERN PLAYGROUND New parks focus on fun features for all ages and abilities

By ENDIA FONTANEZ

P

arks have long been a symbol of many things: fun, youth, memories and friendships, but they are becoming more of a fixture in the community through additional features like splash pads, courts, fields and even large lakes for fishing.

Arizona is experiencing a rising trend for recreational parks to include a wide variety of features with the goal of delivering a facility that will adequately

PICNIC RAMADAS: Mansel Carter Oasis Park 32 | March-April 2020

serve as many people as possible. Parks throughout the state, and especially in the East Valley, are doing this through incorporating multi-functional use into the way new parks are designed.

Queen Creek’s Mansel Carter Oasis Park in particular strives to focus on inclusivity for all its local residents that visit the park. Adam Robinson, recreation manager for the Town of Queen Creek, said that through its design, the Mansel Carter Oasis Park has followed the industry trend to navigate away from the idea that most people have in mind for a “classic” park aimed only toward families with small children and youth athletes, instead choosing to incorporate a “new wave of improvements” that provide spaces for the whole family to get together.

One of the top ways that the Mansel Carter Oasis Park has brought value and created a welcoming environment in the community, Robinson said, is by encouraging people to get to know one another and develop relationships with their neighbors and local peers.

Robinson said that since the park’s opening in 2018 he has witnessed a rise in interaction between members of the community, from children having birthday parties at the park to church groups holding meetings there and more.

“Parks build community,” Robinson said. “(If you bring) grandpa to go fishing, he might meet friends and buddies, and now there’s also a social aspect to it. Kids that play with teams, they become best friends, the families

become friends and they grow together.”

Through the park’s various amenities, Robinson said he hopes residents of the Queen Creek community also use the outdoor recreational facilities to develop habits to become healthier, both mentally and physically. Some of Mansel Carter Oasis Park’s specific features include a 5-acre fishing lake, wheelfriendly skate plaza, shipwreck-themed splash pad and more. Each element of the park is designed to serve people of all ages and abilities.

Fritz Behrhorst, vice president of pre-construction at Haydon Building Corporation, which constructed Mansel Carter Oasis Park, said he and others at Haydon Building Corp. try to “include something for everybody,” so that entire families can spend a day at the park together and create lasting memories.

“While one brother’s out playing soccer or something at one of the youth fields, the other brothers and sisters who are maybe not on a league yet are over at the playground playing, and mom and dad

are watching both games, so it’s kind of a multi-use experience for the whole family,” Behrhorst said.

The design elements of the Mansel Carter Oasis Park and other regional parks like it “spells a trend towards very interactive play features. Most of the larger and more sophisticated parks that we’re doing have elements like that,” Behrhorst said, “so that people have both passive play areas like fields, places where you can have games and stuff like that, and then more structured play areas like splash pads and play equipment where there’s something you can climb on, something that’s interactive.”

Behrhorst said that the large, accessible play structures such as the splash pad are usually the thing that first draws people into the park, but once families arrive with their children, they stay for the other features like the walking trails and ball fields.

To build a large regional park such as Mansel Carter, Behrhorst said almost “every type of construction that there

is in the industry” is involved, including infrastructure, earth work projects, irrigation and plumbing. The complexity of building the park and the sheer number of people involved in its running smoothly make it all the more rewarding to the builders when the park finally opens and the community excitedly interacts with it.

Behrhorst said that when it comes to deciding the specifics of designing a regional park and choosing what amenities to include, the individual

Fritz Behrhorst

Adam Robinson

33

PUBLIC SPACES WATER FEATURES: Waterfalls and splash pads at Mansel Carter Oasis Park

needs of the local community are the most important factor, and that public opinion is an integral step to begin the process. One of the earliest stages of park design is the public input period, in which the design team interacts directly with residents to determine the demand for specific park features.

“There’s pretty elaborate and neat studies that get done,” Behrhorst said.

“There’s a whole science to designing a community park or a regional park and how many resources are needed, how many basketball courts or how many tennis courts, (whether) they need fishing, how much play and how many multi-use fields are in the area.”

The 48-acre park includes ten varying lighted fields and ball courts, ADA accessible playground areas, a 13-feet deep lake full of imported trout for fishing, and more.

The lake benefits the town of Queen Creek by using the town’s recycled 34 | March-April 2020

water both to fill the lake as well as to irrigate the park’s grass. The lake gets its water by pumping recovered water from homes that is non-potable, or unsafe for drinking but suitable for other uses. The water from the lake is also used to irrigate the grass at night while the park is closed, so that the turf is dry and ready to use by the time park guests arrive to play in the morning.

Robinson said one of the most important aspects of the lake is that it brings fishing to the park, which is a type of recreation that can be enjoyed by both children and adults, regardless of physical ability.

In addition to the lake, Robinson said, the park’s playground structure surfacing was designed to be allinclusive by covering the ground with padded rubber instead of the more common sand or wood chips, to ensure it maintains the “inclusive nature of making fun play for everybody,

not just targeted groups.” The rubber surfacing was installed using a $130,000 donation from Banner Ironwood Medical Center, making Mansel Carter Oasis Park an IBCCES Certified Autism Center.

Another way that Mansel Carter Oasis Park strives to include a vast array of recreation options is with the design of its wheel-friendly skate plaza.

“What we did with the skate park is something that’s kind of trending nationwide, and that’s to make it a wheel-friendly park,” Robinson said.

“It’s not just skateboards or scooters, it’s also built for bicycles, or if you had rollerblades, even roller skates.”

All-inclusive regional parks are “absolutely vital” to communities across the state, Behrhorst said, as they provide an incentive for new residents who are considering moving into the area. Parks thus add economic value to nearby homes, and could make the neighborhood a more attractive place to live for potential homeowners.

Behrhorst said the Mansel Carter Oasis Park has had so much popularity and success that it is sometimes difficult to find a parking spot due to the large demand of community members who enjoy all of the park’s features. “We have 345 days of good weather here, and even in the summer people are out there in 110 degree heat playing on the splash pad,” Behrhorst said.

As for the future of designing large regional parks across the Valley, Behrhorst said there is a big push overall for inclusivity within a park’s features that has become more common for all types of parks as they aim to draw in as many visitors as possible.

“The more and better parks you have, the more the community members and residents get outside and participate,” Robinson said. “Just getting outside is step one, and you’re already on the road to a healthier life.”

As society continues to evolve to focus more on inclusivity, so do the state’s recreational parks, offering the kids of today more wide-ranging options to build friendships and make memories that will last a lifetime.

AZ TOTEM ART

Custom Bird Feeders and Totems made from repurposed architectural materials

aztotemart.com

By Appointment Only • 602.677.5999

WEST VALLEY UPDATE

CHASING CLASS A West Valley officials working hard to attract office development to area

By STEVE BURKS

T

he numbers definitely grab your attention. The West Valley (which is made up of Avondale, Glendale, Goodyear, Peoria, parts of Phoenix and Surprise) has a population of more than 1.7 million people, with an average household income of more than $70,000 per year, well over the Maricopa County average of $57,000.

Of those 1.7 million people, 62 percent (or just over 1 million people) are working age. If you need a workforce, it’s there.

36 | March-April 2020

The West Valley leads the way in land sales in the market, with just user $2 billion in land sales in 2019.

“These land sales are what is guiding the future,” said Greg Vogel of Land Advisors Organization, who has been brokering deals in the West Valley since 1985. “People are buying this land for a reason, and that is to deploy it.”

As the high volume of land sales might suggest, the West Valley has been leading the state in development

of large industrial and data center

development and has some of the most successful master-planned communities in the country. The West Valley has entertainment options, easy access to the great outdoors in the White Tank Mountain Regional Park or Lake Pleasant, high-performing schools and even a growing higher education segment. Seemingly, the West Valley has it all going for it.

“What I found in talking to people during my four years in my role at WESTMARC is people say you’re different in the West Valley,” said Sintra Hoffman, president and CEO of WESTMARC, which promotes and advocates for the West Valley. “We’ve been killing it in industrial, you all know that, and that’s great. It’s great to get some of those national companies like Nike, Microsoft, Andersen Windows and more coming into the West Valley.

“But how do we answer the questions for the other 69 percent of the professional workforce that’s leaving everyday.”

That’s where the numbers start turning against the West Valley. Nearly 70 percent of the workforce in the West Valley leaves the area for work. These are professionals in healthcare, finance, insurance, high-tech industries and government that commute east towards offices located in other parts of the Valley.

Recently, the cities of the West Valley, with a huge assist from WESTMARC have been putting on a full court press, trying to lure developers to bring more Class A office projects to the area. There is little or no available Class A space in the West Valley and precious little in the development pipeline. In the CBRE Phoenix Office Marketview report for Q4 of 2019, there was 2 million square feet of office space under construction,

with the West Valley accounting for none of that.

West Valley leaders are working overtime to change that and lure Class A office developers to build in the market and keep some of that workforce close to home.

At a recent, “Why West Valley” event hosted by CBRE and put on by WESTMARC, six city officials each gave short presentations about developmentready sites that are ripe for Class A office products.

AVONDALE Of the three sites highlighted by economic development director Ken Chapa, the most attractive was also the smallest. Avondale is touting a two-acre site on the Avondale City Hall campus, located along Avondale Blvd., just south of Van Buren St.

Chapa pointed out that the lot could accommodate a 40,000 square foot building less than five minutes from I-10 and near the city’s mixed-use entertainment district, The BLVD, which is a 350 acre site that includes another site Avondale is trying to lure a Class A office project. This site is along I-10 and provides high visibility to the freeway.

The city is looking to place a 60,000 square foot building on that site.

The third site that Chapa highlighted was the Park 10 Medical Center campus along McDowell Rd., between 107th Ave. and 103rd Ave. The development will be mixed use, but has more than enough space for a 200,000 square foot Class A office building.

“In the past 18 months, we’ve seen about $130 million in capital investments in our community and we’ve announced more than 1,200 new jobs,” Chapa said. “We’ll have more than 7,000

37

WEST VALLEY UPDATE Source: Land Advisors Organization

new homes here in the next five to seven years, so if you’re asking, Why Avondale? Why not?”

GLENDALE Economic development director Brian Friedman has been with the city for more than 19 years and has seen the development of the Westgate Entertainment District, which serves as the “Downtown of the West Valley.”

He said that property around Westgate is prime for Class A office, something Glendale is well short of. Currently, office vacancy rates in Glendale are 3.7 percent, which is a mind-boggling number for a city of more than a quarter-million people.

“Glendale is a sold out community,” Friedman said, citing the fact that there isn’t a vacant big box retail site or any industrial space over 50,000 square feet available. “The entirety of the marketplace is shifting. There are seven millionaires that own property in and around Westgate. They are there for a reason; because they have some foresight.”

One of those millionaires (better yet, a billionaire) is GoDaddy founder Bob Parsons, who purchased the 76-acre Westgate Entertainment Center in 2018. The city is hoping to attract Class A office development into the district, which would make it more of a true, downtown-type area.

Another site Friedman mentioned was land owned by VanTrust, which 38 | March-April 2020

is an arm of the Van Tuyl Group, The Glendale Center is located at the Loop 101 and Maryland and is 60 acres which is zoned for office and/or multi-family use. The hope is for office products ranging from 100,000 to 300,000 square feet.

Friedman pointed to the city’s work on the Topgolf site as what officials are able to do when developers come calling in Glendale.

“Topgolf site was a city-owned property. We met, agreed to sell the property, did a development agreement, a purchase sale agreement a one-day design review and we broke ground on the property immediately, completely done with the property transaction in 68 days,” Friedman said.

GOODYEAR One of the cities that has a true, Class A speculative office project in the works is Goodyear. The Globe Corporation and the City of Goodyear teamed up on a public-private partnership development at Civic Square at Estrella Falls. It will become the new heart of Goodyear, and will include a new City Hall, new library and park and event space (along with the first parking structure in the city).

As part of the development agreement, Globe will build a 100,000 square foot, Class A spec office on the site, which is located just north of McDowell Rd. and east of N. Pebblecreek Pkwy.

“This has been a long dreamed of

project for our city,” said Goodyear city manager Julie Arendall. “In fact, 36 years we’ve been talking about creating a site like this. We believe it will be a catalyst for the entire West Valley. We believe if we build it, they will come.”

Arendall also pointed out that the city is looking to attract office developments on 200 acres that run along the south side of the I-10 between Bullard Ave. and Litchfield Rd. Goodyear also is marketing another site, this one on the north side of the I-10 on Bullard Ave., that is 35 acres and is close to restaurants and hotels.

PEORIA City of Peoria Economic Development Services Director Rick Buss said his city is working hard to become a world class location for all types of development, Class A office in particular.

“Peoria is going vertical and sustainable, but it’s not just about environmental sustainability, it’s about economic and social sustainability,” Buss said. “We’re driving for quality, economic sustainability that lasts for the long term.”

Buss highlighted some unique sites in Peoria that the city hopes can attract office projects. The first is the Vistancia Commercial Core, located just off the Loop 303 and Lone Mountain Pkwy., right next to Vistancia, a 3,450-acre master-planned community in the north part of Peoria. This site has 320 acres and the city is hoping to attract

The small banks don’t understand you, and the big banks don’t try to.

At Alliance Bank of Arizona, we get it.

We bring you the best of both worlds: the capacity and sophisticated product offerings of a big bank along with the responsiveness and superior service of a more specialized institution.

Bank on Accountability

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

alliancebankofarizona.com

Top 10 - Forbes Best Banks Alliance Bank of Arizona, a division of Western Alliance Bank, Member FDIC. Western Alliance ranks top ten on Forbes’ Best Banks in America list, four years in a row, 2016-2019.

WEST VALLEY UPDATE advanced business services companies, corporate headquarters, high tech firms or a variety of other users.

Stadium Point at P83 is a 17 acre, city-owned site in the P83 Entertainment District, right next to the Peoria Sports Complex. Buss said there was a lot of interest in the concept. The city wants to bring in a public-private partnership to build a vertical mixed use development of over 1 million square feet, which includes Class A office space, a full service hotel, mid-rise residential and of course signature entertainment and dining.

Buss hinted at a project that was in the works, but still in the negotiation phase. He said that the city is negotiating with a group that’s going to build 140,000 square feet of Class A office space, six or seven stories, because they need to expand and want to do it in Peoria.

PHOENIX Christine Mackay, the community and economic developer for the City of Phoenix, said that people often forget that Phoenix is a big part of the West Valley. She touts two exciting sites that the city is focusing its efforts on becoming hubs for Class A office and other projects.

The first area is along the new Loop 202 South Mountain Freeway. Phoenix has more than 1,000 acres in that

corridor and is branding the area, near 59th Ave. and Baseline, as the South Mountain Technology Corridor. The city is initially showing a pair of sites, one is 72 acres, the other 70. Mackay said it is for tech related companies, office developments, corporate headquarters or emerging technology companies. She said at ultimate building, the 1,000 acres could result in 50,000 to 80,000 jobs in that corridor.

The second development is the Algodón Center, which is owned by John F. Long. Located both in Phoenix and Avondale, the park bisects Loop 101 and stretches from Thomas Rd. to Campbell Ave., just south of Camelback Rd. Algodón Center will include buildto-suit medical office buildings, as well as Class A corporate office users who want to be close to the highly educated West Valley labor pool.

In its first phase Algodón Center has Algodón Medical Office Park — a retail center, an 80,000 square foot medical office building, and a seven-acre acute care center.

SURPRISE Like Gilbert was once considered a bedroom community, with little or no office or manufacturing and industrial developments, Surprise is on a similar tract. Gilbert now has a very diverse, active office market, helped greatly by the Loop 202 freeway.

Surprise is hoping that the Loop 303 corridor will do the same for its office prospects.

Surprise economic development director Jeanine Jerkovic highlighted one development area, Sterling Grove, where the city is hoping to attract some Class A office development.

Sterling Grove is a luxury, masterplanned community located between Cactus Rd. and Peoria Ave., on Cotton Lane, just off the Loop 303. When Sterling Grove held their open house in January, more than 5,000 people toured the model homes, which shows the interest is there.

Surprise attracted Ottawa University to locate in its City Center on Bullard Ave. between Bell and Greenway roads and that university has rapidly expanded. In the last 18 months, Ottawa University has invested more than $50 million in buildings on campus, including a new residence hall, and expects to have 3,000 students living on campus in the very near future. Surprise has open lots in the City Center for Class A office development, with ample land surrounding City Center for future growth. Jerkovic pointed out that developers will find, “the most flexible PAD zoning you’ll find anywhere in Arizona. If you want to go up to 15 stories or higher, you can do that at City Center.”

Stadium Point at P83

40 | March-April 2020

#wearehaydon H A Y D O N B C . C O M

AVONDALE FESTIVAL FIELDS PHASE II | CITY OF AVONDALE “Growing up in construction, I have been part of many different types of projects. Let me tell you that being part of a municipal project team is uniquely rewarding. There’s something about building a community and working hand-in-hand with our project partners that is exciting - the enthusiasm carries throughout the construction process. Haydon Building Corp provides me the opportunity to feel personally connected to these projects. Seeing all the smiling faces at the Avondale Festival Fields Phase II grand opening, as the fireworks lit up the night sky, filled my heart with pride and is something I will remember for a long time.”

- Tracy Schmuker, Project Manager, Haydon Building Corp

LIC#A ROC108937 | B-01 ROC108085

41

URBAN LAND INSTITUTE

Future is now Arizona seeing signs of new approach in commercial real estate development

By STEVE BURKS

42 | March-April 2020

I

n Arizona, the evolution of commercial real estate isn’t found in brand new residential towers in Central Phoenix or 1 million square feet warehouses in the West Valley. The future of commercial development is going on in well-known locations that are just getting a fresh set of eyes on them.

43

ULI At the 15th annual ULI Arizona Trends Day on February 26 at the J.W. Marriott Phoenix Desert Ridge Resort, one of the marquee discussions of the day was the panel titled, “The Future of Commercial Development.” The panel, moderated by Betts Real Estate Advisors Founder Steve Betts, included some well-known faces in the world of commercial real estate in Arizona.

Developers like David Krumwiede, executive vice president at Lincoln Property Company; and Sharon Harper, president and CEO at Plaza Companies have brought to market high-profile, high-value developments like The Grand and SkySong. Also on the panel were David Scholl, partner at Vintage Partners, and Keri Silvyn, partner and owner at Lazarus & Silvyn, P.C. The future of commercial development is in places like Park Central, where Harper and Plaza

Companies have converted an old retail center, once the heart of Central Phoenix, and turned it into a true mixed use destination.

“For the first time in my career, a mixed-use development is finally being reflective of good placemaking and good lifestyle decisions,” said Scholl when discussing developments like Park Central and Block 23. “I think this cycle, we’re actually seeing mixed use in Phoenix come into its own where it’s really a response to the lifestyles people want to live and the destinations they want to frequent, which is really a first for Phoenix.”

Scholl said he feels that the disruption in retail is far from over. He said he expects that retail developments will continue to morph in the future to reflect a better balance between brick and mortar locations and internet shopping.

Scholl shared a little information about one project he is consulting on in Florida. The site is a mall location with ample parking fields that developers what to fill with towers that will bring office, retail and multifamily elements to the area. He said this is the kind of mixed-use concept that could revitalize the outdated suburban malls that are floundering in todays marketplace.

“I think that those mall owners that recognize that their mall is not a survivor, they will immediately look and ask if they are in a location or a demographic that might support a complete overhaul and turn more suburban malls into more urbanized areas,” Scholl said. “A lot of apartment developers have responded to that and I think some of these shopping destinations that have been that way for 30 or 40 years could be converted into live-work-play destinations.”

ULI Trends Day 2020 panel highlights It’s a highly anticipated event in the Phoenix market each year and the 2020 ULI Arizona Trends Day lineup of panels and discussion topics had something for everyone in the industry.

The event, held on Feb. 26 at the J.W. Marriott Phoenix Desert Ridge Resort, draws hundreds of the state’s leaders in commercial development.

Below are some highlights of three discussion topics from the 2020 event. For a complete recap of 2020 Trends Day, go online to azbigmedia.com

Morrison Home Corporation; and R. Glenn Williamson, founder and CEO of the Canada Arizona Business Council.

The panel discussed the fact that Arizona’s top trade partner has been Mexico for some time and the state has enjoyed robust investment from foreign sources, many Canadian.

The panel looked deeper into the effects the United StatesMexico-Canada Agreement (USMCA) will have on the Arizona economy and discussed how trade volatility had a direct impact on construction costs in the state.

IN RETROSPECT...

HEALTHCARE AND TECH...

Maria Baier, vice president of communications for the Phoenix Suns and a former member of the Phoenix City Council and a Arizona’s State Land Commissioner, led her panel through a look back on how Arizona real estate development industry has been shaped over the decades and how public policy and sometimes plain luck can drive the industry forward. Baier’s panel featured Drew Brown, co-founder of DMB; Anne Mariucci, a member of the Board of Directors for Taylor Morrison Home Corporation; and former Arizona Governor Fife Symington.

GLOBAL EFFECTS...

Arizona Chamber of Commerce & Industry president and CEO Glenn Hamer led a panel that examined how global trade impacted Arizona’s economic growth. He was joined

by Marco A. Lopez, Jr., CEO of Intermestic Partners, a business advisory firm that provides services to international organizations; Sheryl Palmer, chair and CEO of Taylor

44 | March-April 2020

The Greater Phoenix market is one of the most active healthcare development market in the country, thanks in large part to the massive expansion to the Mayo Clinic campus in North Phoenix. Dr. Ioanna Morfessis, president of IO.INC, a consulting practice specializing in growth strategies, moderated this discussion of how healthcare is delivered and how many healthcare providers are evolving.

Dr. Michael E. Berens, deputy director of research resources for Arizona-based Translational Genomics Research Institute (TGen), provided some prospective on how areas such as genome mapping and immunotherapies have led to a shift from reactive to more proactive healthcare strategies. Other members of the panel were: Dr. Rafael Fonseca, chair of the Department of Medicine and Director of Innovation and Transformational Relationships at the Mayo Clinic - Arizona; Craig Passey, principal and studio leader at SmithGroup and Douglas Woodruff, West Region executive and senior vice president at Wexford Science + Technology.

INNOVATION FROM THE GROUND UP Novus Innovation Corridor is building a model of creative urban design.

Novus showcases new ideas and bold methods to promote sustainable strategies, along with integrating smart city technology. Located on 355 acres adjacent to Arizona State University’s Tempe Campus, Novus

25K NEW JOBS upon completion

will provide a cutting-edge environment to create world-class offices, residences, hotels and shops with access to research and education.

Novus is a public/private partnership between master developer Catellus Development Corporation and ASU.

5.7K RESIDENTS upon completion

See how we’re innovating Arizona from the ground up at NovusASU.com.

10MM SQ FT

of commercial, living & recreation opportunities

ULI

ONE SOUTH CHURCH: The most prominent and recognizable structure in Tucson's downtown skyline with over 240,000 rentable square feet

Silvyn, whose law office is in Tucson, is seeing some of that mall conversion in her own city. At Tucson Mall, the empty Sears anchor site was converted into a Round 1 entertainment, arcade and bowling location. Round 1 is a Japan-based chain of family entertainment centers that include bowling, arcade and billiards, along with a restaurant and bar.

“That’s the tie-in that they are looking to create,” Silvyn said. “You can still walk around and interact with the retailers and there are a lot more restaurants on the exterior and a lot more retail places turning into restaurants and entertainment places. We’re starting to see the larger malls reposition that way and really mixing uses.”

Silvyn also brought up the One South Church building in Tucson. This 23-story tower in downtown Tucson is the tallest building in the city and 46 | March-April 2020

was supposed to include another tower, which has yet to be developed.

Scottsdale-based Opwest Partners is planning to convert the first eight floors of One South Church into a hotel, with 150 guest rooms, meeting space and restaurant and outdoor space. Opwest is making a $38 million investment to convert the building into a true, mixed-use site.

“Now we have a block in downtown Tucson that still has 15 floors of office space, and then we’ve got living and hospitality, all within a city block,” Silvyn said. “The modern streetcar stop is right there, so transit is there, and it’s right in the heart of our revitalized downtown where we still have bars and restaurants and some retailers.”

Both Scholl and Silvyn think that converting single-use buildings into mixed-use will continue as the development community tries to meet the wants and needs of the younger generation.

Krumwiede's Lincoln Property Company is coming off some very large industrial and office projects, like the 1 million square foot Lincoln Logistics

40 building that his company sold to Nike. Krumwiede sees the evolution of the industrial building happening at a rapid rate and mirrors, in large part, how office projects will look and function moving forward.

"I've said before that these are not your traditional dusty old warehouses with a few forklifts rolling around," Krumwiede said. "They are true employment centers that we're building with a ton of amenities, including 40 foot clear height to support high e-commerce-level throughout. We're replacing skylights with clerestory windows that bring more natural light into the work environment and outdoor amenity spaces with shaded seating, built-in barbeques and game areas.

"The office inventory has evolved in a similar fashion. All of our projects from The Grand to Union have collaborative indoor/outdoor lobbies, rooftop decks and open office floorplates with 12-foot glass. In general they are exponentially more sophisticated and more in tune with global trends as it relates to employee attraction, retention and efficiency."

ULI

EMERGING TRENDS Report shows Phoenix market on the rise

E

ach year the Urban Land Institute and PwC, a global network of firms that deliver assurance, tax and consulting services, team up to produce an Emerging Trends in Real Estate Report.

The report is one of the most in-depth reports conducted and provides an outlook on real estate investment and development trends, real estate finance and capital markets, property sectors, metropolitan areas and other real estate issues throughout the United States and Canada. It includes interviews and survey responses from more than 2,200 leading real estate experts, including investors, fund managers, developers, property companies, lenders, brokers, advisers and consultants.

According to the survey data, Phoenix was ranked 31st out of 80

48 | March-April 2020

U.S. Markets for overall real estate prospects. The report stated that, “after serious struggles during the housing collapse and still-serious climate change concerns, Phoenix has returned to robust growth and has reestablished credibility in the investment community. The Valley of the Sun accounted for 2.5 percent of total U.S. real estate investment volume in the 2016–2018 period, and stepped up even further to a 2.9 percent capture rate through the first six months of 2019. Those capital inflows are far stronger than the 31st-place ranking in our overall prospects table and well above the metro area’s population share of 1.5 percent. Long driven by population in-migration, Phoenix’s No. 7 ranking in home-building prospects certainly portends a market on the rise, with

its net addition of 115,000 residents between 2010 and 2018. No surprise, then, that more than $10.4 billion of the property transactions since early 2018 have been directed toward the multifamily sector. Watch this space: Phoenix is not done yet.”

New categories of markets to watch were added this year to reflect factors that elevate the appeal of some metro areas for specific reasons. One of these new categories was Major Capital Magnets, which listed Phoenix as a market to watch. Phoenix had some well-heeled company on that list, as it was joined by Manhattan, Chicago, Inland Empire (Calif.), Northern New Jersey, Houston, San Diego, Oakland/ East Bay (Calif.) and Miami. These markets accounted for more than 17 percent of total U.S. transactions over the past three years.

LIFE IN EVERY DIRECTION

Discover a new kind of small town—where kids rule the splash pad

(while you lounge poolside), neighbors meet for tennis and pickleball, and happy hour happens in beautiful, distinctive homes.

In Estrella, you’ll meet friends who came here to enjoy the

natural thrills of the High Sonoran Desert, elevated by modern

conveniences, action-packed parks and trails, outstanding schools, and Casa Lucero now open with a café and bike shop.

ESTRELLA.COM New homes from the low $200,000s to over $400,000s Beazer Homes • Gehan Homes • Lennar • Mattamy Homes • Pulte Homes Richmond American Homes • Rosewood Homes • Taylor Morrison Homes • William Ryan Homes CantaMia® by Taylor Morrison 55+ Coming Soon: D.R. Horton Custom Home Sites from the $40,000s

@EstrellaAZLife

Exit I-10, south on Estrella Parkway, then turn right on Hillside Drive 623.386.1000 • Brokers Welcome Newland is the largest private developer of planned residential and urban mixed-use communities in the United States. We believe it is our responsibility to create enduring, healthier communities for people to live life in ways that matter most to them. newlandco.com

NNP III – EMR 3, LLC and NNP III-EMR 4, LLC (“Fee Owner”) is the owner and developer of Estrella Community (“Community”). Fee Owner has retained Newland Real Estate Group, LLC (“Newland”) solely as the property manager for the Community. Homebuilders, unaffiliated with Fee Owner, Newland, or their affiliates (together, the “Released Parties”) are building homes at the Community. The Released Parties are not co-developing, co-building, guarantors of, or otherwise responsible for, nor shall they incur any liability as a result of, any of the obligations or representations made to buyers by any Builder or other third-party. Fee Owner’s responsibility with respect to the Community is limited to the development of certain infrastructure improvements (e.g., roads, sewer, etc.) and such obligations run solely to persons buying real property directly from Fee Owner. Buyers of homes and Builders waive, to the fullest extent allowed under the law, any and all rights, claims, causes of action and other rights whatsoever against the Released Parties arising out of their purchase of a home or services, respectively, in the Community from Builders or any other third-party. Fee Owner may seek to qualify real property located in the Community for offering and sale in those states where prior qualification is required before such interests in out-of-state real property may be offered for sale or lease to its residents. Fee Owner has notified Builders of such qualification requirements and it is the obligation of such Builders to comply with any and all federal or state land sales laws as mandated by their contractual relationships with Fee Owner and to distribute all required disclosures, including but not limited to, disclaimers and reports to prospective purchasers prior to or at execution of a contract of sale for real estate. Any prices, sketches, renderings, and specifications contained herein are proposed only and subject, without notice, to change or withdrawal at any time. All, or a portion, of CantaMia in Estrella is designed for Housing for Older Persons pursuant to the Housing for Older Persons Act. The community has established policies and procedures which demonstrate intent to provide housing for persons 55 years of age or older. EQUAL HOUSING OPPORTUNITY.

ULI Some of the other items highlighted in the report are: • Easing on Down the Road – Confidence is one thing, complacency is another. Attention should be given to the prospects for an extended downshifting in the economy and its implications for commercial property demand in the decade ahead.

• Housing: The Great Unraveling – Affordability has reached the breaking point even in markets that previously boasted of low-cost housing. Housing conditions are routinely described as challenging, to the point of discouraging employers to locate in areas with inadequate affordable housing. One attempt at a solution: a rise in co-living, among older as well as younger generations. Increasing numbers of municipalities are implementing policies such as inclusionary zoning and offering incentives such as density bonuses to address the problem.

• A Community State of Mind – Demand is rising for communities in which a sense of place is created organically through sharing common interests and values, rather than concocted through prescribed programming and business goals.

• Hipsturbia – The live-work-play districts that spurred 24-hour downtowns in the 1990s has spread to many suburban communities, which are seeking to become hip destinations, or “hipsturbs” of their own right. The key to success: transit access, walkability, and abundant retail, restaurant and recreation options.

• Boomers and Beyond – Boomers can expect to stay active while living longer, which has positive implications for housing demand in downtowns and hipsturbs, as well as workplaces, as many may choose to keep working or pursue second careers.

• March of Technology: The What and When of Disruption – Technology is affecting all property types, most obviously retail and industrial. Property managers are turning to technology solutions for productivity enhancements and improved operational efficiency. In addition, demand is increasing from occupants and capital sources for technological sophistication across all sectors.

• Infrastructure: Washington Fumbles; States and Cities Pick Up the Ball – Real estate professionals unwilling to wait for a federal solution to America’s urgent infrastructure needs can look to states and localities that are committed to improved infrastructure as a foundation for economic growth.

See the entire Emerging Trends in Real Estate report, visit americas.uli.org.

50 | March-April 2020

Importance of Issues for Real Estate in 2020 1 No importance

3 Moderate importance

5 Great importance

Economic/financial issues Job and income growth 4.30 Qualified labor availability 4.19 Interest rates and cost of capital 3.95 Capital availability 3.55 Regulations 3.48 Global economic growth 3.46 Tax policy 3.36 Inflation 3.07 Currency strength 2.90 Social/political issues Political landscape 3.72 Government budget issues 3.53 Immigration 3.40 Global conflict 3.22 Income inequality 3.19 Rising education costs 3.09 Social inequality 2.99 Terrorism 2.90 Epidemics 2.48 Real estate/development issues Construction costs 4.50 Construction labor availability 4.44 Construction material costs 4.28 Housing costs and availability 4.16 Land costs 4.04 Infrastructure/transportation 3.71 Site/plan approval process 3.61 NIMBYism 3.43 Environment and sustainability requirements 3.25 State and local water regulations 3.13 Risks from extreme weather 2.79 Wellness/health features 2.75 (Source: Emerging Source: Emerging Trends in Real Estate 2020 survey.Trends in Real Estate 2020 survey)

15th ANNUAL

2017

HIGHLIGHTING the BIGGEST, BEST and MOST NOTABLE COMMERCIAL REAL ESTATE PROJECTS from 2019

RED AWARDS

2020 RED AWARDS Project finalists reflect strength of Arizona economy

By Steve Burks

The rush of commercial real estate development has truly become a statewide phenomenon, and the 2020 Real Estate Development (RED) Awards reflect just how widespread the activity has been in Arizona.

From the more than 110 project nominations received this year, 17 were for projects away from the Valley. Projects in Tucson, Marana and Flagstaff can be found in the list of finalists, showing clearly that good work is being done all over the state.

This year’s projects were some of the most impactful developments the state has seen in the 2000’s, which made narrowing them down to three finalists and, ultimately, only one winner very difficult.

The finalists and winners were honored at our 2020 RED Awards event on March 12 at Pointe Hilton Tapatio Cliffs Resort in Phoenix. Highlights from that event, as well as more details about the winning projects can be found online at azbigmedia.com.

ROOFTOP: The Link PHX

EDUCATION Dove Mountain CSTEM K-8 School As the first K-8 CSTEM (computer, science, technology, engineering, and math) school in the state of Arizona, Dove Mountain is setting a precedent as a school of choice.

The school building design is a celebration of student-driven learning and making. Large, highly visible and collaborative maker spaces line the heart, or the arroyo, of the building, fostering student awareness of the work being done by their peers. The building’s structural and MEP elements are color–coded and on display to teach the students how the building is constructed and how the systems work together to create their learning environment.

OWNER: Marana Unified School District GENERAL CONTRACTOR: CHASSE Building Team PROJECT MANAGER: CHASSE Building Team ARCHITECT: Corgan SUBCONTRACTORS: Comfort Systems, PM&M

Drywall, J.B. Steel, Blanco Concrete, Sun Valley Masonry, Advanced Structural Engineering, Inc., Energy Systems Design, Inc., SIZE: 100,960 SF VALUE: $30 million LOCATION: 5650 W. Monroe Rd., Marana START/COMPLETION: July 2017/July 2019

NAU Kitt Recital Hall The 255 seat Kitt Recital Hall addition and renovation project is a new link between the existing Ardrey Auditorium and Performing and Fine Arts facilities. The Recital Hall project presented an extraordinary level of design, delivery, and construction challenges typical with campus renovation projects comprised of highly technical programs, complicated existing site conditions, compressed construction schedules, and limited budgets. The team worked together embracing integrated delivery processes to manage and overcome the project challenges.

West-MEC Northwest Campus This multi-phased CTE campus is made up of four quadrants totaling 133,600 square feet of buildings.

Quadrant 1 houses the Automotive Building; Quadrant 2 Facilities and Veterinary Science building; Quadrant 3 Student Services, Hair & Physical Therapy, Safety & IT/Coding, Dental Science Building and the Lightbox; and Quadrant 4 houses the Medical Science Building.

The design and presence of this facility will improve the environmental aesthetics for all residents and employees in the area. Such improvements have the potential to increase surrounding property values while creating increased traffic and visibility to surrounding businesses.

OWNER: Western Maricopa Education Center GENERAL CONTRACTOR: McCarthy Building Companies, Inc. PROJECT MANAGER: McCarthy Building Companies, Inc. ARCHITECT: SPS+ Architects SUBCONTRACTORS: Urban Energy, Stonecold Masonry, Progressive Roofing, Rouser Concrete, Pete King SIZE: 133,600 SF VALUE: $55 million LOCATION: 13201 W. Grand Ave., Surprise START/COMPLETION: Sept. 2016/July 2019 56 | March-April 2020

OWNER: Northern Arizona University GENERAL CONTRACTOR: CORE Construction ARCHITECT: RSP Architects SUBCONTRACTORS: Meyer | Borgman

| Johnson; McKay Conant Hoover, Inc.; Henderson Engineers; Peak Engineering; The Ruzika Company, Inc. SIZE: 21,700 SF VALUE: $10.6 million LOCATION: 1115 S. Knoles Dr., Flagstaff START/COMPLETION: 2016/Feb. 2019

2017

2020 FINALIST

The Valley’s Most Dynamic Redevelopment Has Only Just Begun Great things are happening at Park Central, and the development team — Plaza Companies and Holualoa Companies — is proud the project is a RED Award finalist for Best Redevelopment.

But there’s a lot more to come, including the new $100 million Creighton University Health Sciences Campus (top left), Millennium at Park Central Apartments (middle left) and Home2 Suites/Tru by Hilton Hotel (bottom left).

It’s a perfect time to become part of the future of midtown Phoenix. To find out more, visit parkcentralphoenix.com.

A Joint Venture By

HEALTHCARE Banner - University Medical Center Tucson Banner Health selected Sundt Construction Inc. and partner DPR Construction to construct a new 9-story tower to replace the 40-year-old portion of the hospital at Banner–University Medical Center Tucson. The 667,000-square-foot patient tower has 204 private patient rooms, 22 new operating rooms, imaging suites and public spaces. This project is the seventh joint venture of Sundt and DPR, which began partnering in 2002.

OWNER: Banner Health GENERAL CONTRACTOR: Sundt/DPR (Joint venture) PROJECT MANAGER: Sundt/DPR (Joint venture) ARCHITECT: Shepley Bulfinch/GLHN SUBCONTRACTORS: Sundt Construction (concrete & civil), DPR Construction (interior framing & drywall), University Mechanical, Sturgeon/Stark, Sun Valley Masonry SIZE: 667,000 SF VALUE: $322 million LOCATION: 1625 N. Campbell Ave., Tucson START/COMPLETION: Jan. 2016/Apr. 2019

Summit Regional Medical Center

Ironwood Medical Pavilion II The three-story, multitenant, steel-shell Ironwood Medical Pavilion II adds 60,000 square feet of office space to the campus, providing a convenient, comfortable setting for healthcare practices. It was a true design-build process that moved forward without interruption, attributable to good trust levels among the partnering organizations.

OWNER: RyanPlaza Ironwood, LLC 58 | March-April 2020

DEVELOPER: Ryan Companies US, Inc. and Plaza Companies (Joint venture) GENERAL CONTRACTOR: Ryan Companies US, Inc. PROJECT MANAGER: Ryan Companies US, Inc. ARCHITECT: Butler Design Group SUBCONTRACTORS: Schuff Steel, Commonwealth Electric Co. of the Midwest, McKinney Glass, Diversified Interiors BROKERAGE: Plaza Companies SIZE: 61,835 SF VALUE: $16 million LOCATION: 37200 N. Gantzel Rd., Queen Creek START/COMPLETION: Nov. 2018/Aug. 2019

The Medical Office Building is one of three new buildings that support centralized access to outpatient care for the City of Show Low and the surrounding communities. In addition to the MOB, the expansion includes a new Ambulatory Surgery Center and an Administration Building with large meeting rooms that are available to the community.

OWNER: Summit Healthcare SUBCONTRACTORS: Western Grade, DW Lusk, DEVELOPER: NexCore Group Castle Steel, TDI Industries, Carlson & Sons GENERAL CONTRACTOR: Haydon SIZE: 173,243 SF VALUE: $17 million Building Corp PROJECT MANAGER: NexCore Group LOCATION: 4951 S. White Mountain Rd., ARCHITECT: Orcutt Winslow Show Low START/COMPLETION: Dec. 2016/Nov. 2019

TRUE

Design-Build.

To us, there is design-build and then there’s LGE Design Build. Having been in business for over 25 years, we’ve learned a few things about how architects, estimators and contractors work together.

In 2014, LGE put those lessons to good use when we created our own in-house architecture firm, LGE Design Group, making us one of Arizona’s only true design-build companies and solidifying our reputation for combining cost, schedule and quality at a level above the rest.

Learn more about our group of dedicated, proactive professionals who will be your partners in quality design, construction and so much more.

480.966.4001 | www.lgedesignbuild.com

Catalina Parking Garage, Arizona’s Tallest Parking Structure

TOTAL PRECAST ®

More than just concrete, a design solution. ® Building a concrete future®

coreslab.com salesarizona@coreslab.com • 602.237.3875

HOSPITALITY Element Hotel at Skysong

Casino del Sol The expansion of Casino Del Sol’s hotel and convention facilities brings new world-class hospitality options to Tucson. The $31 million project includes a new 151-room hotel, new 73-space RV park, an expansion of the existing convention space at Casino Del Sol, and a new Event Center at its nearby sister property, Casino of the Sun. OWNER: Casino del Sol GENERAL CONTRACTOR: McCarthy Building Companies, Inc. PROJECT MANAGER: McCarthy Building Companies, Inc. ARCHITECT: Cuningham Group Architecture, PA SUBCONTRACTORS: Mirage Plastering, Inc.; Conway Tile Co., Inc.; Cutting Edge Fabrication LLC; Progressive Roofing; Millwork by Design, Inc. SIZE: 130,000 SF VALUE: $31 million LOCATION: 5655 W. Valencia Rd., Tucson START/COMPLETION: July 2019/Nov. 2019

Great Wolf Lodge Arizona A collaborative effort by all involved, the new Great Wolf Lodge is truly a unique year-round destination experience that supports the booming hospitality market in this tourism-focused state. Being located on Salt River Pima-Maricopa Indian Community’s Talking Stick Entertainment District, the new resort features an 85,000 square foot indoor heated waterpark, featuring a variety of body slides, tube slides, raft rides, activity pools and splash areas for every member of the family.

OWNER: Great Wolf Resorts, Inc. GENERAL CONTRACTOR: Mortenson PROJECT MANAGER: Mortenson ARCHITECT: Gensler SUBCONTRACTORS: Suntec, ISEC, PCI, MKB, Commercial Air/Pueblo Mechanical SIZE: 396,016 SF VALUE: $85 million LOCATION: 7333 N. Pima Rd., Scottsdale START/COMPLETION: Jan. 2018/Sept. 2019 62 | March-April 2020

Companies, Arizona State University, Holualoa Companies DEVELOPER: Jackson-Shaw GENERAL CONTRACTOR: Layton The Element Hotel Scottsdale at Construction SkySong is a 5-story, 157-room, PROJECT MANAGER: Plaza Companies distinctive upscale hotel located ARCHITECT: Cooper Carry Inc. within the 1.2 million square-foot, SUBCONTRACTORS: Hardrock Concrete mixed-use Arizona State University Placement, Pete King Construction (ASU) Innovation campus, SkySong.

Company, Progressive Leasing, Diversified Amenities include spacious guest Interiors, Beecroft LLC. rooms with fully-equipped kitchens SIZE: 99,103 SF and spa-inspired bathrooms, a fullservice bar and an open, uninterrupted VALUE: $17.8 million LOCATION: 1345 N. Scottsdale Rd., layout which allows guests to move Scottsdale freely from one space to another.

START/COMPLETION: Mar. 2018/July 2019 OWNER: Somera Capital Management, Jackson-Shaw, Plaza

Park Central

DEPENDAB

L E PEOPLE LE P

DEPENDAB

ERFORMAN

CE

What We Do

Pre-Construction

Prefabrication

Commercial Electric

24/7 Service

DP Electric, 29+ years as a leading electrical contractor in the valley.

Aviation • Corporate Office • Healthcare • Mission Critical Hospitality • Higher Education • Renewable Energy

dpelectric.com

INDUSTRIAL Amazon AR Sort Fulfillment Center The 55-foot-high facility boasts a massive 850,000-SF distribution complex that incorporates 76,000 cubic yards of concrete and 11,000 tons of structural steel.

The warehouse is equipped with 64 loading docks, 398 tractor-trailer parking spaces and about 2,500 vehicle parking spaces. Amazon’s presence positions Tucson as a logistics hub, generating a pipeline of companies interested in locating/ building their facilities in the market, which will further strengthen the local economy.

OWNER: Seefried Industrial ARCHITECT: Ford & Associates Architects, Inc. SUBCONTRACTORS: Granite Construction, Properties, Inc. DEVELOPER: Seefried Industrial Suntec Concrete Inc., Architectural Openings, Properties, Inc. Charles Court, HACI GENERAL CONTRACTOR: Ryan SIZE: 2,331,000 SF LOCATION: 6701 S. Kolb Rd., Tucson Companies US, Inc. PROJECT MANAGER: Ryan START/COMPLETION: May 2018/May 2019 Companies US, Inc.

Northrop Grumman Launch Vehicles Division Headquarters The manufacturing portion of the facility needed to incorporate significant outfitting in order to adequately support a $1 billion defense contract. In the production facility, Willmeng Construction included 11, five-ton overhead cranes with a 35-foot hook height and 50 feet of clear height in the Integration and Test Phase area. Vacuum jacketed stainless-steel piping was incorporated into the facility.

OWNER: Northrop Grumman DEVELOPER: Douglas Allred Company GENERAL CONTRACTOR: Willmeng Construction PROJECT MANAGER: Willmeng Construction ARCHITECT: Balmer Architectural Group BROKERAGE: CBRE SIZE: 633,000 SF VALUE: $126 million LOCATION: 1575 S. Price Rd., Chandler START/COMPLETION: April 2018/Sept. 2019

TEN Industrial Distribution Center I Built to the highest quality, the building has a superflat lime stabilized 7” reinforced floor slab, concrete truck courts, mature landscaping, fully underground water retention systems, single layer roof membrane, insulated glazing including clerestory windows, high amperage electrical distribution systems, and a 74 acre site for car and trailer parking.

OWNER: Pasternack Properties SUBCONTRACTORS: Desert Structures, DEVELOPER: Irwin G. Pasternack, AIA, Deer Valley Plumbing, Specified Electrical Architect and Associates pc Contractors, Miner Southwest, Olympic GENERAL CONTRACTOR: Graycor West Fire Protection, Ricor Inc., Ronning Construction Companies and Nitti Builders Landscaping, Scotts Diversified, Roofing LLC Southwest, Suntec Concrete PROJECT MANAGER: Graycor Construction BROKERAGE: JLL SIZE: 1,100,000 SF Companies and Nitti Builders LLC ARCHITECT: Irwin G. Pasternack, AIA, VALUE: $120 million LOCATION: 83rd Ave. and I-10, Phoenix Architect pc START/COMPLETION: May 2018/Nov. 2019 64 | March-April 2020

d e r o n o H

to be a RED Award Finalst!

Northern Arizona University | Kitt Recital Hall, Flagstaff, AZ

www.coreconstruction.com

Banner University Medical Center Tucson New Patient Tower

AZRE Red Awards Finalist

BUILT TO

GROW THE COMMUNITY

Block 23, Phoenix

GRIT

PERSEVERANCE GETS THE JOB DONE RIGHT.

suntecconcrete.com AZ | CO | UT | ID | NV ROC #138389

INDUSTRIAL-SMALL Andersen Corporation - Build to Suit This highly specialized build-to-suit is the first of its kind in the U.S., where the entire manufacturing process is under one roof. At $105 million in total project costs, this facility will generate in excess of 400 full time jobs. Once operational, this facility will produce Andersen’s 100 series line of windows which will be distributed to its clients throughout the west coast.

OWNER: The Opus Group DEVELOPER: Opus Development Company GENERAL CONTRACTOR: Opus Design Build PROJECT MANAGER: Opus Design Build ARCHITECT: Opus Architecture & Engineering SUBCONTRACTORS: Hunt, Cannon & Wendt, Horowitz, Bel-Aire Mechanical, Suntec BROKERAGE: JLL, Cushman & Wakefield SIZE: 557,000 SF VALUE: $105 million LOCATION: 4395 S. Cotton Lane, Goodyear START/COMPLETION: Jan. 2019/Dec. 2019

The Landing The Landing is a six-building industrial development and is located on 20 acres in Phoenix’s Mesa Gateway Area, a federallydesignated opportunity zone. The Class-A buildings range in size from 12,000 - 112,000 square feet. Offering a higher-end design than typical industrial buildings, the design features aluminum storefront systems with 1” insulated glass panels and painted metal canopies.

OWNER: CRP/Marwest Landing | Owner, LLC DEVELOPER: CRP/Marwest Landing | Owner, LLC GENERAL CONTRACTOR: D.L. Withers Construction PROJECT MANAGER: Ware Malcomb ARCHITECT: Ware Malcomb SUBCONTRACTORS: Hunter Engineering, TLCP Structural, Inc., Kraemer Consulting Engineers, PLLC, Studio DPA, Speedie & Associates BROKERAGE: CBRE SIZE: 281,000 SF VALUE: $17.6 million LOCATION: 7613-7735 E. Ray Rd., Mesa START/COMPLETION: Jan. 2018/June 2019 68 | March-April 2020

The Lotus Project DLR Group and Duetsch Architecture Group’s design contains features and amenities to attract new companies, especially those in the technology and financial service industries, to a place for innovation and creation. The Lotus Project has a unified campus environment with common design features, both architectural and landscape, that link the buildings and open space areas with inspiring themes of innovation, creativity and vitality.

OWNER: Conor Commercial Real Estate DEVELOPER: Conor Commercial Real Estate GENERAL CONTRACTOR: McShane Construction

Company PROJECT MANAGER: McShane Construction Company ARCHITECT: DLR Group SUBCONTRACTORS: Suntec Concrete, The Structures

Group SW, CJS Enterprises, Jenco Inc., Olympic West Fire Protection BROKERAGE: CBRE SIZE: 473,516 SF VALUE: $53 million LOCATION: 6511 W. Frye Rd., Chandler START/COMPLETION: Sept. 2018/Aug. 2019

A New Name.

A Steadfast Vision.

Introducing Lazarus & Silvyn, P.C. Larry S. Lazarus Partner

Michelle Green Senior Land Use Planner

Keri L. Silvyn Partner

Robin M. Large Senior Land Use Planner

Christine Bell Executive Assistant

Rory J. Juneman Attorney

Mary Keating Firm Administrator

TaNisha Bryant Office Administrator

Lazarus & Silvyn, P.C., (formerly Lazarus, Silvyn & Bangs, P.C.), has a new name and a growing land use law, zoning and planning team, with Partners Larry Lazarus and Keri Silvyn at the helm in Phoenix and Tucson.

While the name has changed, the firm’s vision to help communities and developers grow responsibly remains unchanged. Visit us at LSLawAZ.com.

Phoenix 206 E. Virginia Avenue Phoenix, AZ 85004-1110 602.340.0900

Tucson 5983 E. Grant Road, Suite 290 Tucson, AZ 85712-2365 520.207.4464

HAYDON FUNDAMENTAL BEHAVIOR: Show People You Care About Them as Individuals

Being part of this team has made our HEARTS STRONGER. Thank you and Congratulations!

FINALIST FOR BEST HEALTHCARE PROJECT NexCore Group & Summit Healthcare Outpatient Campus SHOW LOW, AZ

#WEAREHAYDON HAYDONBC.COM

LIC#A ROC108937 | B-01 ROC108085

69

MIXED-USE Block 23

The project centers around 304,200 SF of residential space, totaling 332 units on thirteen floors, with units on floors five through eighteen. Tenant amenities include a pool, fitness center, private cabanas, private garage and pet spa. The project also includes 200,000 SF of office space, a 68,000 SF Fry’s Food Store and 14,000 SF of retail and restaurant space at street level.

OWNER: RED Development DEVELOPER: RED Development GENERAL CONTRACTOR: Whiting-Turner Contracting Company PROJECT MANAGER: RED Development ARCHITECT: Omniplan SUBCONTRACTORS: Suntec Concrete, Stone Cold Masonry, Walters & Wolf, NKW, DDE BROKERAGE: Colliers International SIZE: 1,333,000 SF VALUE: $32 million LOCATION: 125 E. Washington St., Phoenix START/COMPLETION: Jan. 2018/Oct. 2019

The Local

Anchored by the city’s only Whole Foods Market, The Local strives to be a gathering spot, uniting residents and visitors alike within a dynamic and versatile environment. The overall design blends exposed concrete and brick, distressed and rich wood tones, and living plant and art details to create a warm, authentic and welcoming vibe.

OWNER: Forum Real Estate Group DEVELOPER: Forum Real Estate Group GENERAL CONTRACTOR: JE Dunn Construction PROJECT MANAGER: JE Dunn Construction ARCHITECT: Humphreys & Partners Architects SUBCONTRACTORS: Suntec Concrete, E&K Companies, Diversified Interiors, Blount Contracting, HACI BROKERAGE: Cushman & Wakefield SIZE: 585,423 SF VALUE: $71.6 million LOCATION: 204 W. University Dr., Tempe START/COMPLETION: July 2017/April 2019 70 | March-April 2020

The Watermark | Tempe

Located on the north shore of Tempe Town Lake, The Watermark offers the most unique mixed-use environment in the Phoenix Metropolitan Area and contains over 1.9 million square feet of thoughtful development. Total square footage is more than 600,000 square feet of Class A office space which includes 265,000 square feet in Phase I and 340,000 square feet in Phase II. OWNER: Fenix Development, Inc. DEVELOPER: Fenix Development, Inc. GENERAL CONTRACTOR: Okland Construction PROJECT MANAGER: Fenix Development, Inc. ARCHITECT: Nelsen Partners BROKERAGE: CBRE SIZE: 1.9 million SF VALUE: $150 million LOCATION: 410-430 N. Scottsdale Rd., Tempe START/COMPLETION : Sept. 2017/Dec. 2019

Agility in Design

We have the ability to anticipate changes in the marketplace and respond with more thoughtful, valuable design solutions.

Zillow

Phoenix Sky Harbor International Airport, Terminal 3

Dove Mountain CSTEM K-8 School

Architecture · Interior Design · corgan.com

Aviation · Commercial · Data Centers · Education · Healthcare · Interiors

COMING NEXT ISSUE FEATURED TOPICS INCLUDE:  Healthcare

Building Trends  Top Brokers from 2019  Pinal County Market Report  AZ CREW Supplement  Valley Partnership

For additional information call 602.277.6045 or visit azBIGmedia.com 71

MULTIFAMILY Arista at Ocotillo

The community amenities include a sparkling pool and spa, an outdoor entertainment area called “The Yard”, a 24/7 clubhouse and theater room, a community dog park and much more. The project includes controlled access throughout, air conditioned hallways, elevators, valet trash, and covered parking or garages and easy access to local shopping and restaurants.

OWNER: P.B. Bell Companies/Gilbane Development Company DEVELOPER: P.B. Bell Companies/Gilbane Development Company GENERAL CONTRACTOR: MT Builders PROJECT MANAGER: P.B. Bell Companies ARCHITECT: Whitney Bell Perry SUBCONTRACTORS: JR McDade, TS&G Tile Signs and Graphics, Tribal Pools, Advanced Exercise, M Squared SIZE: 211 units VALUE: $47.5 million LOCATION: 3200 S. Dobson Rd., Chandler START/COMPLETION: July 2017/Jan. 2019

The LINK PHX

OWNER: CA Ventures DEVELOPER: CA Ventures The site is the transition between the GENERAL CONTRACTOR: Katerra core of downtown and the burgeoning PROJECT MANAGER: Shepley Bulfinch Roosevelt Row Arts District that has ARCHITECT: Shepley Bulfinch gained national attention. Designed as SIZE: 390,000 SF a luxury apartment project spanning a target demographic between 25-55 years VALUE: $55 million LOCATION: 330 E. Pierce St., Phoenix old, the concept introduces a new type of quality high-rise living that does not START/COMPLETION: Oct. 2017/

currently exist in the market. Standing at Sept. 2019 30 stories and at 330 feet tall, it is the second-tallest residential high-rise built in Phoenix in the last decade.

Optima Sonoran Village Optima Sonoran Village is a 21st century urban solution to residential design that utilizes an articulated façade, innovative shading devices, sustainable systems and varied building materials. The project provides a dynamic setting in the harsh desert climate of the Sonoran Desert.

OWNER: Optima Inc. DEVELOPER: Optima DCH Development, Inc. GENERAL CONTRACTOR: Optima Construction, Inc. PROJECT MANAGER: Optima DCH Development, Inc. ARCHITECT: David Hovey & Associates Architect, Inc. SUBCONTRACTORS: Suntec Concrete, Aspen Construction, Inc., Jen Electric, RKS Plumbing & Mechanical, S Diamond Steel BROKERAGE: Optima Realty, Inc. SIZE: 1.1 million SF/768 units VALUE: $500 million LOCATION: 6895 E. Camelback Rd., Scottsdale START/COMPLETION: 2013/2019 72 | March-April 2020

2017

2020 FINALIST

RIVULON COMMONS Nationwide Realty Investors Gilbert, Arizona

73

OFFICE: LARGE American Express — Canyon Building This new office building is comprised of four wings, separated by a multi-story main hall that provides natural light through the center of the building, creating visual connections between floors while encouraging a sense of community.

Complementing the existing buildings on campus, the design integrates new textures and patterns using sandstone and integral colored exposed concrete.

Inspired by a canyon’s water-carved horizontal strata, undulating metal panels fold to catch rays of sunlight.

OWNER: American Express SUBCONTRACTORS: Suntec Concrete, GENERAL CONTRACTOR: Layton Coreslab Structures, Wilson Electric, Construction Olympic West, E&K of Phoenix PROJECT MANAGER: JLL SIZE: 330,000 SF ARCHITECT: RSP Architects LOCATION: 18850 N. 56th St., Phoenix START/COMPLETION: Aug. 2017/Dec. 2019

Grand 2 Lincoln Property Company painstakingly designed Grand 2 to meet the needs of today’s most contemporary companies, like DoorDash, and their employees. Situated along approximately one-half mile of freeway frontage, the LEED Silver, Energy Star building’s out-of-the-box features start at its rooftop deck and flow down through the building’s innovative office interiors and end in its lobby, which makes a memorable first impression.

OWNER: Lincoln Property Company DEVELOPER: Lincoln Property Company GENERAL CONTRACTOR: Whiting-Turner PROJECT MANAGER: Lincoln Property Company ARCHITECT: DAVIS SUBCONTRACTORS: TLCP Structural, Inc.; Civil & Environmental Consultants, Inc.; Energy Systems Design; The Design Element, PLLC; Coreslab Structures.

BROKERAGE: Cushman & Wakefield SIZE: 354,453 SF VALUE: $185 million LOCATION: 1033 W. Roosevelt Way, Tempe START/COMPLETION: April 2018/July 2019

Northrop Grumman Launch Vehicles Division Headquarters Chandler continues to benefit from the impact that aerospace, and namely Northrop Grumman, brings to the city. Through this new facility opening, the innovation systems flight systems division and launch vehicles business unit footprint in Chandler continues to grow, with nearly $180 million in payroll contributed to the local economy, up by $40 million since 2017, with plans to hire more in 2020.

74 | March-April 2020

OWNER: Northrop Grumman DEVELOPER: Douglas Allred Company GENERAL CONTRACTOR: Willmeng Construction PROJECT MANAGER: Willmeng Construction ARCHITECT: Balmer Architectural Group BROKERAGE: CBRE SIZE: 633,000 SF VALUE: $126 million LOCATION: 1575 S. Price Rd., Chandler START/COMPLETION: April 2018/Sept. 2019

HAYDON FUNDAMENTAL BEHAVIOR:

Celebrate Success

Haydon is proud to celebrate the success of this CHAMPION PROJECT TEAM. Congratulations!

FINALIST FOR BEST EDUCATION PROJECT

#WEAREHAYDON HAYDONBC.COM

Ottawa University Arizona O’Dell Center for Athletics SURPRISE, AZ

LIC#A ROC108937 | B-01 ROC108085

COMPANY TRADITION

24/7 SERVICE

TEAMWORK

IN-HOUSE EDUCATION

HACI Mechanical Contractors, Inc. | 2108 West Shangri La Rd., Phoenix, AZ 85029 | 602.944.1555 | hacimechanical.com 75

OFFICE: MEDIUM

GEICO Regional Headquarters Tucson GEICO’s new regional headquarters’ offers its employees modern open workspaces, an onsite cafeteria, fitness center, credit union, and 20,000 SF of patios and balconies. As a part of the company’s largest green initiatives, the parking lot canopies are made up of solar panels which provide roughly 80 percent of the power to the entire building.

OWNER: Bourn Companies DEVELOPER: Bourn Companies GENERAL CONTRACTOR: The Renaissance Companies PROJECT MANAGER: The Renaissance Companies ARCHITECT: ONYX Creative SUBCONTRACTORS: Schneider Structural Engineers, Cornerstone Electric, Flooring Systems, Borderland Construction, Sentry Fence SIZE: 200,000 SF VALUE: $33.6 million LOCATION: 3050 S. Martin Luther King Jr. Way, Tucson START/COMPLETION: Aug. 2018/June 2019

Global Industrial Manufacturer This project consists of a 3-story office building with 500 car parking (structure and surface) on eight acres of land on the west bank of the Santa Cruz River. The building position and orientation on the site addresses the Streetcar and urban edge at Cushing Street with an appropriate scale, massing and transparency. The west end of the building steps down to respect the scale of the residential neighborhood, while the East façade cantilevers over the Santa Cruz Riverbank and addresses the scale of the freeway.

The Commons at Rivulon In response to growing demand, Nationwide Realty Investors announced development of The Commons at Rivulon in mid-2017. The decision to construct the two buildings within The Commons at Rivulon in the same timeframe provided economies of scale, reducing overall construction costs. The buildings were completed, and Deloitte moved into their 100,000 SF space in late 2018.

76 | March-April 2020

OWNER: Confidential DEVELOPER: Rio Nuevo District GENERAL CONTRACTOR: Sundt Construction PROJECT MANAGER: SmithGroup ARCHITECT: SmithGroup SUBCONTRACTORS: PK Architects, Psomas,

WestLand Resources Inc., The Sextant Group, A2o Foodservice Design & Consulting, Inc. SIZE: 150,000 SF VALUE: $49 million LOCATION: 875 W. Cushing St., Tucson START/COMPLETION: July 2017/March 2019

OWNER: Nationwide Realty Investors, Ltd. DEVELOPER: Nationwide Realty Investors, Ltd. GENERAL CONTRACTOR: Layton Construction ARCHITECT: Butler Design Group SUBCONTRACTORS: Riggs Companies,

Triad Steel, Integrity Electrical Services Co., Precision Glass & Aluminum, Brightview Landscape Services BROKERAGE: Lee & Associates SIZE: 195,000 SF VALUE: $18.9 million LOCATION: 300 & 310 E. Rivulon Blvd., Gilbert START/COMPLETION: March 2018/Sept. 2019

DISTINCTIVE DETAILS. DIFFERENTIATED RESULTS. DRIVEN TO DELIVER.®

Contact us to learn how we deliver value to our clients, our partners and our communities.

602.648.5099 opus-group.com

DEVELOP DESIGN BUILD

77

OFFICE: SMALL Aerospace Office Building The building site occupies 2.5 acres with an additional acre for future expansion requirements. The building interior has strip LED fixtures suspended from the blackpainted, open ceiling concept in the open office area. Conference rooms have lay-in LED fixtures in the ceiling grid. The building flooring is carpet tiles in the cubicle and offices and exposed concrete in the breakroom and hallways.

OWNER: Wentworth Property Company DEVELOPER: Wentworth Property Company GENERAL CONTRACTOR: Willmeng Construction PROJECT MANAGER: Wentworth Property Company ARCHITECT: Deutsche SUBCONTRACTORS: Hawkeye Electric, G&G Masonry BROKERAGE: JLL and Hackett Real Estate Solutions SIZE: 34,132 SF LOCATION: 2228 W. Guadalupe Rd., Gilbert START/COMPLETION: Aug. 2018/April 2019

SUPIMA

LGE HQ2 Primarily constructed from CMU with integrated full-height glazing interspaced along the exterior walls, the shell is durable and sustainable for our arid desert environment. A pop-out on the building’s facade accentuates the entrance, with a black metal oxide exterior and wood interior materiality. This language translates to the interior, with a finish palette highlighting a warm industrial vibe with a mixture of midcentury modern elements.

78 | March-April 2020

OWNER: Creation DEVELOPER: LGE Design Build GENERAL CONTRACTOR: LGE Design Build PROJECT MANAGER: LGE Design Build ARCHITECT: LGE Design Group SUBCONTRACTORS: Milam Glass, Urban

Plough, Phoenix Commercial Electric, Arc Steel, Dustin Revella Photography and Design, Interior Concepts SIZE: 22,800 SF VALUE: $4.3 million LOCATION: 1200 N. 52nd St., Phoenix START/COMPLETION: July 2018/May 2019

The concept for SUPIMA’s new headquarters takes inspiration from the utilitarian beginnings of its namesake variety of cotton and the elegant final products it is made into luxury clothing and textiles. This extra-long fiber cotton, originally farmed in Sacaton, and grown in quantity in Goodyear is one of Arizona’s “5 C’s" — cattle, climate, copper, cotton, citrus — and is also known as “The World’s Finest Cotton.”

OWNER: SUPIMA GENERAL CONTRACTOR: Jokake Construction Services ARCHITECT: RSP Architects SUBCONTRACTORS: Pangolin Structural, Wood Patel, MSA Engineering Consultants, Norris Design, Stone Cold Masonry SIZE: 20,000 SF VALUE: $5 million LOCATION: 9885 S. Priest Dr., #101, Tempe START/COMPLETION: May 2018/March 2019

Building What Matters in Downtown Phoenix Working together, we revitalized the downtown shopping center and created a fresh, trendy atmosphere to position the Arizona Center as a destination and economic driver in Phoenix. usa.skanska.com

79

OFFICE INTERIORS

Zillow

Transwestern Arizona Headquarters The main goals of the project were to design a dynamic workplace supportive of the growing office’s business objectives while also creating an extroverted community hub with its own unique identity within the popular Esplanade complex. As a result, the team created an indoor/ outdoor “living room” that projects the office’s culture outward.

OWNER: Transwestern GENERAL CONTRACTOR: Layton Construction PROJECT MANAGER: CBRE ARCHITECT: Gensler SUBCONTRACTORS: Henderson Engineers, CIS, PK

Associates, Immedia BROKERAGE: CBRE and Transwestern SIZE: 9,000 SF LOCATION: 2501 E. Camelback Rd., #1, Phoenix START/COMPLETION: June 2018/Oct. 2019

Zovio

As an authentic representation of Zillow’s business, Corgan drew inspiration from residential design in the local market. The office floor plan is divided into three neighborhoods, each based on a popular neighborhood in the Phoenix area — MidCentury Modern, Historic, and Arcadia. The open office neighborhoods feature wallcoverings, brick, and wood accent walls to reinforce their identities.

Meeting areas are accentuated with bold flooring, wall graphics, and playful light fixtures to further celebrate the style of each neighborhood.

OWNER: Cresa GENERAL CONTRACTOR: Jokake PROJECT MANAGER: Cresa ARCHITECT: Corgan BROKERAGE: CBRE SIZE: 25,000 SF LOCATION: 4343 N. Scottsdale Rd., Scottsdale COMPLETION: 2019

With a resimercial (residential and commercial) aesthetic woven with subtle elements of biophilic design, Zovio’s new headquarters looks less like a corporate office and more like an exciting place to work, socialize and live. This facility houses an exterior patio to facilitate indoor/outdoor experiences, a coliseum with stadium seating for town halls, an onsite health clinic, fitness center, and vendor-operated café that offers healthy food options for employees.

Consulting Services, DIRTT/GMBI OWNER: Zovio DEVELOPER: Irgens BROKERAGE: Cushman & Wakefield and CBRE GENERAL CONTRACTOR: Stevens Leinweber SIZE: 130,000 SF PROJECT MANAGER: Zovio VALUE: $6.7 million ARCHITECT: McCarthy Nordburg LOCATION: 1811 E. Northrup Blvd., Chandler SUBCONTRACTORS: Energy Systems START/COMPLETION: July 2018/ Design, Caruso Turley Scott, Acoustical Sept. 2019

80 | March-April 2020

81

RECREATION/PUBLIC Canyon Activity Center The location of this building as part of Grand Canyon Universities Campus Development plan has transformed an otherwise crime ridden area into a flourishing area with a sense of pride and ownership. The building with its simplistic but impactful form brings in citywide schools, sports clubs and community members to compete in tournaments. NCAA recently hosted their Basketball Academy at the facility.

OWNER: Grand Canyon University DEVELOPER: Grand Canyon University GENERAL CONTRACTOR: Pono Construction ARCHITECT: souLL Architects SUBCONTRACTORS: Suntec Concrete, Bell

Steel, True Metal Solutions, Starkweather Roofing, Central Supply & Metal Co. SIZE: 136,588 SF VALUE: $15,695,432.13 LOCATION: 5346 N. 29th Ave., Phoenix START/COMPLETION: Feb. 2018/Feb. 2019

Ottawa University Athletic Facility Ottawa University completed its athletic complex through a collaboration with Cawley Architects, Haydon Building Corp., and the City of Surprise.

The project is a multi-use athletic facility designed to house not only Ottawa University’s 21 indoor and outdoor sports teams but also the City of Surprises’ indoor recreational facilities.

Scottsdale Airport Terminal Area Redevelopment Scottsdale Airport’s new Aviation Business Center and executive hangars maximize the existing site and feature state-of-the-art modern amenities and breathtaking mountain views to create a welcoming experience for visitors and to maximize Scottdale’s brand as a world-class community with world-class services and amenities.

OWNER: City of Scottsdale Aviation Department DEVELOPER: City of Scottsdale Aviation Department GENERAL CONTRACTOR: JE Dunn Construction PROJECT MANAGER: Mead & Hunt ARCHITECT: DWL Architects + Planners, Inc. SUBCONTRACTORS: Trace Consulting, LLC; Advanced Structural Engineering; Mead & Hunt, Inc.; Logan Simpson; JE Dunn Construction SIZE: 91,231 SF VALUE: $27 million LOCATION: 15000 N. Airport Dr., Scottsdale START/COMPLETION: April 2016/Jan. 2019 82 | March-April 2020

OWNER: Ottawa University GENERAL CONTRACTOR: Haydon

Building Corp.

PROJECT MANAGER: Haydon Building Corp.

ARCHITECT: Cawley Architects SUBCONTRACTORS: Caruso Turley Scott, Cawley Architects Interiors Studio, Sun Valley Masonry, Echo Canyon Electric, Milam Glass SIZE: 96,321 SF VALUE: $21 million LOCATION: 14470 W. Tierra Buena Lane, Surprise START/COMPLETION : April 2018/ Nov. 2019

INDUSTRIAL | MULTI-FAMILY | COMMERCIAL

A Strong Foundation Built on Experience

2020 FINALIST Lotus Project | Chandler, AZ 2017

2020 FINALIST

www.mcshane-construction.com 6720 N. Scottsdale Road, Suite 213 Scottsdale, AZ 85253 83

REDEVELOPMENT

225 West Madison Street Formerly known as the Madison Street Jail, this project is a brilliantly transformed space, resurrected from a decommissioned jail facility and repurposed through adaptive reuse into a Class A office building.

The adaptive reuse implemented significant structural upgrades to prepare the building for a new life, adding several amenities and features that are not found in many other government buildings, culminating in an office with an open and modern design.

OWNER: Maricopa County FMD GENERAL CONTRACTOR: Layton Construction ARCHITECT: DLR Group SUBCONTRACTORS: Pete King Construction, HACI Mechanical, Arizona Glass Specialists, Dickens Quality Demoltion, Barrett Homes Contractors SIZE: 278,775 SF VALUE: $82 million LOCATION: 225 W. Madison St., Phoenix START/COMPLETION: Nov. 2017/Dec. 2019

CASA George Oliver purchased the CASA building, previously known as Catalina Terraces. RSG Builders transformed this 1989-built commercial property from a dated and obsolete office project into a first-of-its-kind creative office community focused around a health and wellness experience. This work environment delivers an unmatched amenity package and workspace design centered around improving employment recruitment and retention.

OWNER: George Oliver LLC DEVELOPER: George Oliver LLC GENERAL CONTRACTOR: RSG Builders PROJECT MANAGER: RSG Builders ARCHITECT: Studio Ma SUBCONTRACTORS: Arcadia Management,

Thanos Mechanical, Smartway Electrical.

Home Select Interiors, SlabHaus BROKERAGE: Colliers International SIZE: 181,188 SF VALUE: $49 million LOCATION: 7878 N. 16th St., Phoenix START/COMPLETION: Dec. 2018/Dec. 2019

Park Central Phase I Park Central has undergone a dramatic transformation. Park Central is taking advantage of its mid-century modern roots and design features to become a dynamic, modern mixed-use adaptive re-use project. It will once again serve both the core of the community and the “new economy” office and restaurant tenants seeking authentic spaces with an outdoor connection.

OWNER: Plaza Companies and Holualoa Capital Management, LLC. DEVELOPER: Plaza Companies and Holualoa Companies GENERAL CONTRACTOR: DPR Construction PROJECT MANAGER: Plaza Companies ARCHITECT: richard + bauer BROKERAGE: Lee & Associates SIZE: 450,000 SF of redeveloped office space VALUE: $250 million LOCATION: Central Ave. and Earll Drive, Phoenix START/COMPLETION: Fall 2017/March 2019 84 | March-April 2020

Reliable.

Responsive | Resourceful

Tempe Streetcar

Prologis I-17 Logistics Center

PHX Sky Train® Stage 2

Terracon is proud to be part of Phoenix’s thriving economy. Our engineers and geologists work under and above ground on a variety of projects to keep our community safe. With more than 5,000 employee-owners in 150 offices nationwide, it’s here we call home.

Three Offices Serving Arizona | (480) 897 8200 | terracon.com/Phoenix

Environmental

Facilities

Geotechnical

Materials

Phoenix's one-stop block

332 Luxury Apartments 230,000 SF of office Space 67,000 SF of Fry's Marketplace (100,000 SF available)

Blanco Tacos & Tequila

Leasing inquiries: Ryan O'Connor - 480.556.7743 A RED development property

85

RETAIL Arizona Center Centered around the idea of catering to the human experience, the redevelopment strategy was highly people centric. The new Arizona Center invites a sense of play throughout the complex through bright colors and engaging outdoor elements. As tenants and shoppers rediscover the renovated plaza, they are surrounded by floating mesh canopies above the walkways.

OWNER: Parallel Capital Partners DEVELOPER: Parallel Capital Partners GENERAL CONTRACTOR: Skanska ARCHITECT: Gensler SUBCONTRACTORS: PK Associates, MSA Engineering, Dibble Engineering, TrueForm Landscape Architecture Studio, Altitude Design Office, SIZE: 120,000 SF VALUE: $24 million LOCATION: 455 N. 3rd St., Phoenix START/COMPLETION: March 2017/April 2019

Phoenix Sky Harbor Terminal 3 — San Tan Brewery & Pub

Flint by Baltaire The concept for Flint was to provide a visceral, elevated dining experience to every patron. Almost every dish served is prepared either in the wood-fired pizza oven or massive wood-burning grill. Enclosing the kitchen in glass allows diners the ability to view and participate in the energy of the food prep.

OWNER: Stockdale Captial Partners, LLC DEVELOPER: LGE Design Build GENERAL CONTRACTOR: LGE Design Build PROJECT MANAGER: LGE Design Build ARCHITECT: LGE Design Group SUBCONTRACTORS: Arc Steel, Interior Concepts, Milam Glass, URI Construction, TriMark USA SIZE: 9,425 SF VALUE: $2.5 million LOCATION: 2425 E. Camelback Rd., Phoenix START/COMPLETION: Nov. 2018/Oct. 2019 86 | March-April 2020

This project was special and unique because IDG was tasked with taking a local concept and adapting it for a lifestyle-driven airport dining experience, San Tan Brewing is a point of local pride for AZ which had to be proudly demonstrated in the buildout while being cohesive with the future vision of Sky Harbor’s Terminal 3. It is the addition of this restaurant and others that has made Phoenix Sky Harbor one of the most recognized airports for outstanding dining experiences and restaurant brands.

OWNER: Ideation Design Group DEVELOPER: HMS Host GENERAL CONTRACTOR: DPR

Construction ARCHITECT: Ideation Design Group SUBCONTRACTORS: Corporate Signs,

Scuderi Tile Contractors, Penington Painting Company LLC., Rosendin Electric Inc., Indwell Woods Inc. SIZE: 4,917 SF VALUE: $2.7 million LOCATION: Terminal 3, 3400 E. Sky Harbor Blvd., Phoenix START/COMPLETION: Oct. 2018/2019

something’s different.

Accelerating businesses through an authentic approach to building with purpose.

Experience the difference.

WILLMENG.COM |

BUILDING SUCCESSFUL ARIZONA PROJECTS FOR 33 YEARS

33

ROC #082904, Class B-01

EXCELLENCE.

Not only will Bjerk Builders perform at the top of their game, but well above the competition. Consistently on target in completing your project on time, within budget and with the utmost level of quality.

License B1-088897 Bjerk-Excellence33-7.125x4.75-HfPg.indd 1

480.497.2300 • fax: 480.497.9610 www.bjerkbuilders.com 10/25/19 87 8:30 AM