AZRE March/April 2021 by AZ Big Media

MARCH-APRIL 2021

RED AWARDS 2021

Mirabella at ASU

General Contractor: McCarthy Building Companies, Inc. Architect: Ankrom Moisan

INSIDE:

West Valley Update p. 24 | Hospitality p. 36

Cawley Architects proudly announces the formation of its new in-house interior design service, the Cawley Design Studio.

Interior: E&K of Phoenix

RoseAnn Linsmeyer, who has been with Cawley for 15 years, was recently promoted to Interior Designer, NCIDQ, and will lead the Design Studio. RoseAnn has a flair for designing exciting and vibrant spaces that elevate her projects’ interiors. She brings impressive architectural expertise and a thorough understanding of how interiors fit into buildings to coordinate with their constructability. RoseAnn’s most recent interior designs include E&K Drywall, Felix Construction and Vitality Wellness Clinic, which can be viewed on our website.

LIKE US ON FACEBOOK

(602) 393-5060 | cawleyarchitects.com

A fresh outlook

merican author Neale Donald Walsch once said, “Life begins at the end of your comfort zone.” For the past six years, I’ve had the pleasure of working with Arizona’s top architects, builders, interior designers and landscape professionals in the residential sector. My days were filled with stories about why homeowners from across the globe chose to settle permanently or part-time in the Sonoran Desert, and with talk of building materials, indoor-outdoor living, color palettes and the latest trends in contemporary design. I didn’t pay much attention to the commercial developments that support the growing population, although from time to time my eye would be drawn to the sleek glass-and-steel facade of a stylish new structure, and I certainly never thought I’d be writing about these buildings, as the notion of grasping their size and scope was daunting. But many of the concepts found in luxury home construction serve as the foundation of today’s commercial properties. Now, as I step into the role of senior editor for AZRE, I realize that I’m not leaving my comfort zone — I’m expanding it. I hope to build upon the knowledge I gained from exploring dream houses by diving into the large-scale projects that serve the work, health, education, shopping and entertainment needs of our many residents and visitors. I look forward to learning more about Arizona’s commercial real estate industry and getting to know you, the players and decision-makers who are transforming our Southwestern cities into the country’s top metropolises, in the upcoming months. When it comes to learning about the many developments popping up throughout the state, there’s no better issue to begin with than one that showcases this year’s RED Awards finalists. Starting on Page 43, you’ll find dozens of innovative and impressive projects, from multifamily housing and hospitality enterprises to office buildings and industrial parks, and much more. I hope they will inspire you as much as they did me — and elicit an enthusiasm for all that Arizona has to offer.

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

2 | March-April 2021

President and CEO: Michael Atkinson Publisher: Amy Lindsey Vice president of operations: Audrey Webb EDITORIAL Editor in chief: Michael Gossie Senior editor: Rebecca L. Rhoades Associate editor: Alyssa Tufts Intern: Kyle Backer Contributing writers: Steve Burks | Courtney Gilstrap LeVinus Suzanne Kinney ART Art director: Mike Mertes Design director: Bruce Andersen MARKETING/EVENTS Marketing and events specialist: Lynette Carrington Digital marketing specialist: Paul Schaum Marketing designer: Heather Barnhill OFFICE Special projects manager: Sara Fregapane Executive assistant: Stephanie Rivera Database solutions manager: Amanda Bruno AZRE | ARIZONA COMMERCIAL REAL ESTATE Director of sales: Ann McSherry AZ BUSINESS MAGAZINE Senior account executives: David Harken | April Rice Account executive: Manessa Ochoa AZ BUSINESS ANGELS AZ BUSINESS LEADERS Director of sales: Sheri Brown EXPERIENCE ARIZONA | PLAY BALL Director of sales: David Ealy RANKING ARIZONA Director of sales: Sheri King

AZRE: Arizona Commercial Real Estate is published bi-monthly by AZ BIG Media, 3101 N. Central Ave., Suite 1070, Phoenix, Arizona 85012, (602)277-6045. The publisher accepts no responsibility for unsolicited manuscripts, photographs or artwork. Submissions will not be returned unless accompanied by a SASE. Single copy price $3.95. Bulk rates available. ©2021 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

24 West Valley Update

36 Hospitality 43 RED Awards

ON THE COVER:

Mirabella at ASU

Developer: Mirabella at ASU General Contractor: McCarthy Building Companies Architect: Ankrom Moisan

4 | March-April 2021

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

Civil Engineering – Planning – Survey – Landscape Achitecture – Construction Management

As a top 10 firm in the Southwest Region, our team represents some of the best talent in the industry. When you select EPS Group, you unlock the capacity of a large-scale firm that provides client-centric solutions.

Let’s Innovate

epsgroupinc.com

TRENDSETTERS

THE WRITE STUFF Here are the books that have inspired and entertained Arizona’s commercial real estate leaders

ANDREW GEIER, executive vice president of Layton Construction, is typical of what many might think is the relationship between people who work in construction and reading. “I’m not a big book reader,” Geier admits. But even Geier admits that the written word has influenced his career. “My business partner made me read ‘Good to Great,’” Geier says. “We’ve utilized several of the concepts in the book, adapted for our business, and have experienced tremendous success. Now that we have our flywheel moving, it’s exciting to see the momentum we’ve created.” Geier isn’t the only Arizona business leader who has been inspired by books. Here is what fills the bookshelves of Arizona’s most brilliant commercial real estate minds.

BYRON R. CARNEY, managing principal, Cushman & Wakefield: “The best business book that I have read is ‘Outliers,’ by Malcolm Gladwell. The most interesting concept for me was the 10,000-Hour Rule. The theory of this rule is that it takes a person 10,000 hours of dedication to become an exceptional performer in their field. The most important aspect of becoming successful is hard work.”

Andrew Geier

BOB MULHERN, senior managing director, Colliers International: “I read the Bible daily. I find every page is filled with inspiring truth and wisdom.”

SHARON HARPER, chairman, president and CEO, Plaza Companies: “‘Character is Destiny,’ by John McCain. It is truly character that defines everything about a person. This is a book of heroism and is about leaders who believed their values were the power that directed their lives. These stories are a constant inspiration for me.

MOLLY RYAN CARSON, senior vice president, market leader Southwest; Ryan Companies US, Inc.: “This is tough as there are so many good books! ‘The Power of One,’ by Bryce Courtney, is certainly up there. It’s a story of perseverance and is beautifully written. And I unapologetically love all of Vince Flynn’s books.” GREG VOGEL, CEO, Land Advisors Organization: “‘Think and Grow Rich,’ by Napoleon Hill. I read this when I was 19 and it changed the trajectory of my life. I have read it 15 times and there could not be a better book for these current times. I have given away over 100 to young people and recommend it to all seeking advice from me.”

Byron R. Carney

6 | March-April 2021

Molly Ryan Carson

Bob Mulhern

cheapest places to live in Arizona

From the upscale city of Scottsdale to the college town of Tempe, rents throughout the state sit on the more affordable side. But if you’re looking for the cheapest places to rent in Arizona, here are the Top 10. LOCATION

ONE-BEDROOM AVERAGE RENT PRICE

AVERAGE RENT PRICE CHANGE

1. Sierra Vista

$663

+17.87%

2. Yuma

$759

-4.18%

3. Tucson

$835

+5.50%

4. Casa Grande

$914

-6.17%

5. Mesa

$1,052

+0.29%

6. Goodyear

$1,078

+45.33%

7. Glendale

$1,097

+0.98%

8. Avondale

$1,118

+7.22%

9. Litchfield Park

$1,152

-13%

10. Queen Creek

$1,189

-8.18%

Phoenix

No. 2 among hottest housing markets of 2021 Phoenix will be America’s second-hottest housing market in 2021, topping a list of mostly Sun Belt cities expected to continue heating up faster than the nation’s large coastal markets, according to a new Zillow survey of experts. Coming in at No. 1 on the list of America’s hottest housing markets in 2021: Austin, Texas.

MOST AFFORDABLE: Living in Sierra Vista gives you a perfect balance between an active, engaged lifestyle and affordability, and that’s why it’s No. 1 among the cheapest places to live in Arizona.

Phoenix ranks No. 6 among hottest multifamily markets

The latest CommercialSearch study shows that Phoenix is the sixth hottest U.S. market for multifamily sales over the past decade. In the last 10 years, the price-per-unit (PPU) for multifamily properties surged 156 percent, reaching nearly $160,000. This increase surpassed both median home sale prices and rental rates. The study compared and ranked the most active U.S. metros in terms of multifamily sales since 2009 Here are some highlights: ■ Phoenix is the sixth hottest U.S. market for multifamily sales over the last decade. Since 2009, Phoenix registered more than $42 billion in multifamily sales. ■ In terms of transactions, 1,711 deals were completed across the metro since 2009, totaling 385,717 units. ■ In 2020 alone, Phoenix closed 125 deals, claiming the third spot. The market had only 21 fewer deals than Dallas-Fort Worth, which took No. 1.

BIG DEAL: Maxwell on 66th sold for $122.5 million in biggest multifamily deal of 2020. ■ For comparison, nationally, the average rent saw a 37 percent increase to $1,462, and the median home sale price was up roughly 58 percent since 2009 to $313,200.

TRENDSETTERS Did Phoenix selfstorage market emerge unscathed from COVID-19?

Office market suffers ill effects of pandemic

Reduced economic activity from the pandemic greatly impacted supply and demand patterns throughout 2020 and is likely to continue into 2021. As a result, the Phoenix market continues to witness smaller office leasing volume with less than 1 million square feet of office space leased for the third straight quarter, according to the Savills Research fourthquarter report. Phoenix has seen steadily increasing availability since the start of the pandemic. Market-wide availability closed the year at 22.3 percent, up 110 basis points (BPS) quarter over quarter and jumped 350 BPS year over year. Class A availability stood at

22.9 percent, increasing by 30 BPS over the previous quarter and climbing 450 BPS year over year. According to the Savills report, the outlook for the Phoenix market is that if the vaccination rollout is successful, the market should see demand return in the second half of 2021, but market fundamentals are likely to remain soft in the interim. The good news, according to the report, is that Phoenix’s relative affordability will continue to attract tenants looking to relocate or expand operations in the western part of the United States without paying the sky-high rents of coastal markets.

Industrial market makes history The Greater Phoenix industrial market posted its largest amount of net absorption in history during 2020, according to the Colliers International Q4 2020 Arizona

8 | March-April 2021

Industrial Research & Forecast Report. The city posted 13.9 million square feet of net absorption during 2020, 7 million of which were absorbed in the fourth quarter. The surge in demand was created by out-of-state companies entering the Arizona market, as well as increased need for industrial space due to a shift to online purchasing during the pandemic. In addition, Greater Phoenix posted its

The Phoenix self-storage market experienced a slowdown in construction in 2020, which was in line with the national trend. However, by the end of the year, street rates experienced a 2.2 percent rise compared with the previous three years when they mostly flatlined, according to a STORAGECafé industry report.  The Phoenix-Mesa-Chandler metro is the nation’s second-most active self storage market. New developments amounted to 1.8 million square feet in 2020. However, this was a marked decline from the 2.3 million square feet of storage space delivered in 2019.  Street prices in Phoenix experienced a 2.2 percent year-over-year increase — a big change after 3 years of stagnation — and were hovering around $105 per month at the end of 2020. largest delivery of new product in a single quarter during fourth quarter 2020: A remarkable 6.5 million square feet of new industrial space came online. This included the Valley’s first speculative project larger than 1 million square feet, which was developed by Tratt Properties in the West Valley. The final three months of 2020 was a record-breaking quarter with 7 million square feet absorbed.

REAL ESTATE INVESTMENT SALES • FINANCING • RESEARCH • ADVISORY SERVICES

THE BEST OF THE BEST CONGRATULATIONS TO OUR TOP ARIZONA INVESTMENT PROFESSIONALS OF 2020 Marcus & Millichap’s Best of the Best represents the highest level of investment professionals in the industry. To be in this elite group of professionals means that these individuals truly epitomize the firm’s 50-year commitment to unparalleled expertise gained though investment specialization, a culture of information-sharing and innovations in technology, research, and most importantly, client services. The success of our clients is celebrated by honoring our best of 2020.

MARK RUBLE

STEVE GEBING

CLIFF DAVID

PAUL BAY

PETER KATZ

Executive Managing Director

Vice President

Executive Managing Director

CHRIS LIND

JAMIE MEDRESS

HAMID PANAHI

RICH BUTLER

DARRELL MOFFITT

Senior Vice President

Executive Managing Director

First Vice President

Senior Vice President

TO ACCESS THE REAL ESTATE INVESTMENT MARKET, CONTACT THE MARKET LEADER. RYAN SARBINOFF Vice President/Regional Manager, Arizona 602.687.6700 Ryan.Sarbinoff@marcusmillichap.com

2398 EAST CAMELBACK ROAD, SUITE 300 • PHOENIX, AZ 85016 • MARCUSMILLICHAP.COM

EXECUTIVE PROFILE

Ramblin’ Wreck man Stevens-Leinweber Construction’s Jamie Godwin is proud of his Georgia Tech roots and his company’s 40-year history By MICHAEL GOSSIE

amie Godwin, president and CEO of Stevens-Leinweber Construction, is an Arizona construction veteran with more than 23 years of commercial construction experience in the Valley of the Sun. About Godwin: Prior to joining Stevens-Leinweber in 2014, Godwin held leadership positions with a large commercial developer, and was co-founder of a commercial general contracting and construction management firm. In his current role, he is focused on strategic planning for Stevens-Leinweber’s continued diversification from a tenant improvement general contractor to a full service commercial contractor with design-build capabilities. His experience includes both speculative development and build-to-suit construction of low, medium and high rise office buildings, distribution facilities, retail centers, institutional facilities, multifamily complexes and tenant improvements. About the company: StevensLeinweber Construction (SLC), which is celebrating its 40th anniversary this year, is one of the Valley’s most active tenant improvement contractors, providing general contracting, construction management and consulting, and select ground-up development to fill a growing need among SLC clients. Respected by architects, designers, owners and

10 | March-April 2021

developers, the company is selected time and again to complete some of the Valley’s most prominent projects. Over its 40-year history, SLC has completed more than 8,000 projects, dominating Phoenix’s business core with more than 1,800 projects completed in 82 percent of the Downtown, Midtown and Biltmore submarkets. Community impact: Godwin is active in a wide variety of associations, including NAIOP and SIOR. He is a LEED AP and holds commercial general contractor qualifying party status in Arizona, New Mexico, Utah and Nevada. Personal strengths: “Honesty, integrity, and the ability to remain level headed (for the most part) during times of stress or conflict,” Godwin says. Professional advice: “Place an emphasis on building personal communication skills and inperson interactions,” Godwin says. “Our dependence on technology for instant communication has created a workplace that lacks the ability to effectively communicate, problem solve and create lasting business relationships.”

Prized possession: “My degree from Georgia Tech,” Godwin says. “The knowledge gained and effort taken while at Tech carries a sense of achievement I will always have with me.” Outlook for 2021: “All sides of our business are operating extremely well, which we are grateful for in light of the pandemic. We continue to see significant deal flow in our industrial ground-up business, which had a solid backlog as we entered 2021 and has new opportunities that we believe we will maintain for the rest of this year and into 2022. Since January 1, we’ve seen a measurable increase in tenant improvement opportunities as well. There continues to be a large number of smaller-sized deals, including speculative suites, but we are also seeing larger deals surface, which is encouraging. As we celebrate our 40th anniversary, we’ve renewed our focus on our core business lines, our commitment to best-in-class client experiences and on delivering projects that adhere to our quality standards for design through construction and occupancy. With our activity as it stands, we expect 2021 to be a recordsetting year for SLC.”

CELEBRATE THE WINNERS! Video available March 12, 2021

The Real Estate and Development (RED) Awards celebrate the best of the commercial real estate industry. We honor the year’s top brokers, architects, contractors, developers and projects.

Our virtual event includes awards honoring accomplishments in 16 distinctive categories.

VIDEO AVAILABLE AT YOUTUBE.COM/AZBIGMEDIA

Premier Sponsors

azBIGmedia.com • 602.277.6045

Virtual Sponsor

AFTER HOURS

???????

Erik Powell

GUIDING FORCES By STEVE BURKS

ife is full of challenges, and one of the biggest — yet most rewarding — challenges is being a coach. Coaching at any level takes a lot of time, effort, patience and understanding of how different people learn differently. These same traits are valuable in the workplace. AZRE Magazine found three commercial real estate professionals who are also active coaches in their communities and asked them what rewards they get from coaching and how coaching helps them in their professional life.

AMY DOOLEY

associate, interior designer for SmithGroup

Dooley has been coaching young athletes in the Arcadia Little League for four years, starting with T-ball 12 | March-April 2021

when her oldest son was 5. She also has coached soccer with Phoenix Rising Youth Soccer for two years. Dooley enjoyed all sports throughout elementary and middle school, competing in softball, gymnastics, soccer, tennis, basketball and swimming. In high school, she excelled in track and field as a sprinter at Rockford High School in Michigan. What rewards do you get from coaching? “At first, I wasn’t sure I would be good at it. I volunteered to be an assistant coach with my friend, and head coach, and since then we have been co-coaching together, we make a great team! What I love most is being able to interact with not only my kids, but all the kids on our team at a whole different level than what I can as a

parent. I can be a mentor, I can give them encouragement, and I can help them achieve goals.” How does your coaching experience help you in your professional life? “At the beginning of each new season there is always a learning curve to figure out how best to work with our team, so they are all working together and listening to their coaches. Some kids are easier than others and there are always a few that are extra challenging. This is the same with my professional career. Just like kids, adults all have their own unique personalities and to work well together you need to find ways to connect on their level. Working with the kids has helped me to focus on and sharpen those skill sets.”

PERRY A. GABUZZI

director of brokerage services for Plaza Companies

Gabuzzi has been coaching for 10 years and has coached football, basketball and baseball. He has coached at the youth and up to the junior college level, working one season as a defensive assistant coach at Scottsdale Community College. He most recently coached a 14U youth tackle football team and is looking forward to more years of coaching as he has two younger sons who will begin to play team sports

in a couple years. Gabuzzi was an athlete as a youngster, playing basketball, football, baseball and soccer with his brothers. During high school, he gravitated towards music, but as he got older, he was pulled towards coaching.

Watching the growth that occurs, both individually and as a team, over the course of a season, or in the case of most of the kids I coached, over the years, is the absolute most rewarding aspect of being involved as a coach.”

What rewards do you get from coaching? “It’s extremely rewarding to work with kids and help them to develop mentally, physically, socially and emotionally and team sports is the absolutely best platform for this type of development.

How does your coaching experience help you in your professional life? “Coaching directly translates to my day-to-day as a commercial real estate advisor. Communication, accountability, goal setting, planning and preparation, and execution of strategy are integral parts of each and every day of my life.”

Amy Dooley

ERIK POWELL

director of new construction for Stevens-Leinweber Construction, Inc.

Powell has coached his son’s youth football and baseball teams for the past six years and his daughter’s soccer team for two. He grew up playing baseball and soccer and played four years of high school soccer at Brophy College Prep, winning one state title and playing in the finals another year.

Perry A. Gabuzzi

What rewards do you get from coaching? “Seeing my kids and their teammates grow from year to year is the most awarding part of coaching. There are other advantages as well … the kids bring back my youth and my desire to compete, and getting out on the field is a nice break from the daily grind. I’ve also coached with people who have become some of my best friends. But the greatest reward is the coaching. I’ve coached amazing kids, and been able to spend time with my own kids that I probably wouldn’t have had otherwise. I particularly enjoy being able to teach life lessons through sports — which are always more important than the sports themselves.” How does your coaching experience help you in your professional life? “It’s actually unreal how many commercial real estate colleagues I run into at youth sporting events. Some are coaches but most are parents cheering on their own kids. More than anything, the coaching keeps me grounded. I see how hard my players work (sometimes how hard we make them work …) and it energizes me to do the same with my career.” 13

NEW TO MARKET A

MULTIFAMILY A NOVEL VAL VISTA DEVELOPER: Crescent Communities GENERAL CONTRACTOR: McShane Construction Company ARCHITECT: Craine Architecture LOCATION: Rome St. and Pecos Rd., Gilbert SIZE: 317 units VALUE: WND START/COMPLETE: Jan. 2021/Q4 2022

14 | March-April 2021

INDUSTRIAL B GOODYEAR CROSSINGS INDUSTRIAL PARK DEVELOPER: ViaWest Group CAPITAL PARTNERS: Bankers Trust GENERAL CONTRACTOR: Willmeng Construction ARCHITECT: McCall & Associates BROKERAGE: Lee & Associates Arizona ENGINEERING: Kaeko Inc. LOCATION: Elwood St. and Sarival Ave., Goodyear SIZE: Three buildings of 284,290 SF, 58,473 SF, and 67,476 SF VALUE: WND START/COMPLETE: Feb. 2021/Q3 2021

INDUSTRIAL AND OFFICE C BROOKLYN BEDDING DEVELOPER: Brydant Real Estate GENERAL CONTRACTOR: Alston Construction ARCHITECT: Ware Malcomb LOCATION: West Bethany Home and 52nd Ave., Glendale SIZE: 648,165 SF VALUE: $72 million START/COMPLETE: Feb. 2021/Q4 2022

INDUSTRIAL D AKIMEL GATEWAY DEVELOPER: Trammell Crow Company CAPITAL PARTNERS: Allstate Investments and Alliance Bank of Arizona GENERAL CONTRACTOR: Wespac Construction ARCHITECT: Butler Design Group CIVIL ENGINEER: HILGARTWILSON LOCATION: Loop 202 and 40th St. on the Gila River Indian Community SIZE: 519,000 SF VALUE: WND START/COMPLETE: Feb. 2021/Dec. 2021

INDUSTRIAL E COWDEN LOGISTICS CENTER DEVELOPER: Trammell Crow Company GENERAL CONTRACTOR: Wespac Construction ARCHITECT: Butler Design Group BROKERAGE: Cushman & Wakefield LOCATION: 420 S. 104th Ave., Tolleson SIZE: 285,131 SF VALUE: WND START/COMPLETE: Dec. 2020/June 2021

MULTIFAMILY F LIV COMMUNITY DEVELOPERS: LIV Development GENERAL CONTRACTOR: McShane Construction Company ARCHITECT: Humphreys & Partners Architects LOCATION: Phoenix SIZE: 242 units VALUE: WND START/COMPLETE: Jan. 2021/August 2022

SKY’S THE LIMIT By STEVE BURKS

ith its attractive mix of commercial, residential and resort developments, the Kierland submarket in Phoenix is highly sought after by developers. Kierland is located in a prime part of Phoenix, located across Scottsdale Road from the Scottsdale Airpark, which is an active office and industrial market, and just south of other development magnets like the Mayo Clinic and the Desert Ridge area. When development opportunities arise in the Kierland area, companies want to maximize those opportunities, and that is exactly what developers Ted Akiba and Yuuki Akiba hope to do with their new Kierland Sky project. Kierland Sky is a redevelopment project that will replace an existing 100,000 square foot, Class C office building at 14635 N. Kierland Blvd., on the southeast corner of N. Kierland Blvd. and E. Marilyn Rd. In its place will be two, Class A office buildings totaling 504,000 square feet. The development will also feature retail and restaurant space.

16 | March-April 2021

Collaboration with community key in new Kierland development

“There is such incredible demand for corporate headquarter tenants in that area, that as soon as it's ready to hit the market, it’s going to be incredibly well received,” said Phoenix economic director Christine Mackay. “It’s got all of these beautiful outdoor spaces and connectivity and walkability, especially in today's market, so many office tenants are talking about that healthy building environment.” The project will be on the consent agenda for the Phoenix City Council early in 2021, and work is expected to begin late in 2021 or early 2022. “We felt that even though Covid is occurring and there are some areas with vacant office space, Kierland doesn’t have much, especially modern office space, there is none in that area,” said Larry Lazarus, partner of Lazarus & Silvyn P.C., the zoning and land use law firm representing the Akibas and the Kierland Sky development. “It’ll take until 2023 for this thing to get built and we felt that in another three years, there will be a need for office in the market. My clients felt that in this

time frame we’re going to be seeing a need for office space in certain parts of the city and Kierland is one of them.” While attractive for developers, Kierland is also home to residents who are very active in protecting the character of their community. Lazarus said he has been working on this project for the Akibas for nearly three years and has been in communication with members of the Kierland community for the past two years. The leading organization is the Kierland Community Alliance (KCA), which was created in 2019 to formally oppose a proposed development that would bring a high-rise, mixed use tower to the area. The KCA was successful in their opposition of that project, which was to be developed by DMB and Circle Road Partners. The group has become a key entity in the area for developers to work with, something that Lazarus did with the Kierland Sky project. “Larry came to us sometime after the DMB project was rejected by the City Council, so the latter part of 2019,” said Wayne Mailloux, the chairman of the

KCA. “He brought the conceptual plans for the project and our reaction to what he brought us was not positive.” The original concept for the project was for two buildings, both 120-feet tall on a parcel that has a two-story building on it currently. The KCA was concerned about the height of the building, the density of the development and how it would affect traffic in the area, which is a very short distance away from an apartment complex and a single-family neighborhood. Mailloux said Lazarus took that feedback and went away. “When he came back, he had a completely different plan,” Mailloux said. “This was now lower density, less height. I have to say that Larry and the Akiba’s were extremely collaborative. The whole process was quite a constructive, positive process.” The two parties worked through the community’s concerns over much of 2020. Key issues were traffic flow, building height and the need for open spaces. Lazarus and the Kierland Sky design team, which included architectural firm Shepley Bulfinch, landscape architect Dig Studio and traffic engineer CivTech went to work and came up with a design that would ease many of the concerns that KCA had. The two office buildings, which will be built in two phases, will reach a maximum height of 88 feet, and will step down to 56 feet. This is significantly

lower than the initial 120-foot structures that Lazarus brought to the KCA. The taller portion of the buildings will be away from the nearest residential areas, giving maximum privacy for the nearby residents. Lazarus notes that the development will feature 87,000 square feet of open space, spread among three key areas. These spaces will be pedestrian friendly and feature trees, benches, garden and game areas. And finally, the developer will route traffic away from Acoma Dr., which is the main street for residents heading to and from their homes. Traffic will flow away from the neighborhood and towards Greenway Pkwy in the north and Scottsdale Rd. in the east. “They worked with us on the architecture and the exterior cladding on the site, particularly on the parking structure,” said Mailloux. “Those can be some of the most monstrously ugly structures anyone can build, especially if they are built just on the basis of just getting the cheapest cost per spot in there that we can. “We talked a lot about traffic and open spaces and they were generous with the open spaces around the commercial sites and were not trying to pack 10 pounds into the proverbial 5 pound bag.” Another unique agreement that was reached between the KCA and the Kierland Sky team was the establishment

of a traffic mitigation fund. The developer agreed to put money into this fund that will be used by the City of Phoenix on traffic mitigation in the area. This could include signs, lights, speed bumps or any other methods to ease traffic issues for the community. “The KCA is really concerned about traffic in their area and height,” Lazarus said. “They felt that this is the first office building south of Greenway that is going to create a precedent and they wanted to make sure it didn’t create a precedent of more height, more density, more traffic.” In the end, Mailloux said that while no amount of collaboration on a project of this nature will make everyone happy, but he and the KCA are confident that the project is a good addition to the Kierland market. “I can tell them with certainty that it is a better building that is going up there with better aesthetics and better sensitivity to the neighbors and to their needs,” Mailloux said. “We’re not anti development. We recognize that development and redevelopment is inevitable and part of a cycle. It’s beneficial to the city and the residents of the city in terms of services that it offers and taxes that it generates, but we just want to make sure that the community has a voice. We view our mission as representing the interests of the neighborhood and helping developers see that.”

MULTIFAMILY/SALES

$145.24M | 509,928 SF

ANDANTE APARTMENTS 15801 S. 48th St., Phoenix BUYER: MG Properties SELLER: Security Properties BROKER: N/A

$87M | 354,642 SF SHADE AT DESERT RIDGE

21150 N. Tatum Blvd., Phoenix BUYER: Knightvest Management SELLER: The Ergas Group BROKER: N/A

$84.35M | 312,726 SF

WATERMARK AT GATEWAY PLACE 4500 E. Ray Rd., Gilbert BUYER: TM Equities Inc. SELLER: Thompson Thrift BROKER: N/A

$80M | 331,500 SF POINTE AT SOUTH MOUNTAIN APARTMENTS 8809 S. Pointe Pkwy, Phoenix BUYER: TruAmerica Multifamily SELLER: Conam Group of Companies BROKER: N/A

$74.25M | 387,424 SF

CIELO ON GILBERT 1710 S. Gilbert Rd., Gilbert BUYER: Bluerock Real Estate SELLER: Capital Real Estate BROKER: N/A

RETAIL/SALES

$51.5M | 240,370 SF

PIMA CROSSING 8612 E. Shea Blvd., Scottsdale BUYER: YAM Properties SELLER: Karlin Real Estate BROKER: N/A

$22.75M | 96,200 SF

EXTRA SPACE STORAGE 1650 N. Pima Rd., Scottsdale BUYER: Public Storage AKA Stor-All SELLER: Vintage Partners BROKER: N/A

$15.5M | 142,978 SF FOUR POINTS BY SHERATON

PHOENIX NORTH 2532 W. Peoria Ave., Phoenix BUYER: Turner Impact Capital SELLER: Marriott International BROKER: N/A

18 | March-April 2021

$15M | 94,191 SF TRI-CITY PAVILIONS

1870 W. Main St., Mesa BUYER: HK Real Estate Investments SELLER: Lamar Companies BROKER: Lee & Associates and CBRE

$13.8M | 64,799 SF

GILBERT GATEWAY TOWNE CENTER Power and Ray Rds., Gilbert BUYER: Wiseman Residential SELLER: Vestar 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: Race Carter at Cushman & Wakefield Research.

OFFICE/SALES

$103.5M | 333,284 SF

ANCHOR CENTRE 2201 E. Camelback Rd., Phoenix BUYER: TerraCap SELLER: KBS Realty Advisors BROKER: JLL

$65M | 218,597 SF

$44.5M | 274,700 SF

THE PARK AT SAN TAN - LOTS 1 & 5 3075 W. Ray Rd., Chandler BUYER: DPC Development SELLER: TA Realty BROKER: N/A

UNIVERSAL TECHNICAL INSTITUTE - AVONDALE 10695 W. Pierce St., Avondale BUYER: Universal Technical Institute SELLER: WP Carey Inc. BROKER: N/A

$64.6M | 252,000 SF

$21.2M | 44,730 SF

COPPERPOINT TOWER 3030 N. 3rd St., Phoenix BUYER: Oak Street Real Estate Capital SELLER: Oak Street Real Estate Capita BROKER: N/A

LAND/SALES

$56M | 296.06AC

AUSTIN RANCH Grand Ave. and Deer Valley Rd., Surprise BUYER: Courtland Communities SELLER: Courtland Communities BROKER: N/A

$35M | 246.84AC

SPECTRUM MEDICAL COMMONS 3367 S. Mercy Rd., Gilbert BUYER: MBRE Healthcare SELLER: Hammes Company BROKER: N/A

INDUSTRIAL/SALES

$54.9M | 312,403 SF KYRENE COMMERCEPLEX 8240 S. Kyrene Rd., Tempe BUYER: Starwood Capital Group SELLER: EJM Development BROKER: N/A

$39.15M | 377,180 SF

THE CUBES AT GLENDALE Reems Rd. and Northern Ave., Glendale BUYER: Claycorp SELLER: Reems Ranch BROKER: JLL

RIVERSIDE INDUSTRIAL CENTER 4747 W. Buckeye Rd., Phoenix BUYER: Cohen Asset Management SELLER: Nuveen BROKER: N/A

$27.2M | 3.74AC

$33.3M | 331,398 SF

$26.9M | 91.14AC

$32.6M | 259,711 SF

$23.9M | 473 Lots

$27M | 99,470 SF

SCOTTSDALE BLUESKY LOT 1 4605 N. Scottsdale Rd., Scottsdale BUYER: ZOM Living SELLER: Biltmore 24 Investors BROKER: N/A WARNER MEADOWS S. Recker Rd., and E. Warner Rd., Gilbert BUYER: AGWIP Asset Management SELLER: Lennar Homes BROKER: N/A

WESTERN ENCLAVE 2 Loop 101 and Indian School Rd., Phoenix BUYER: AGWIP Asset Management SELLER: Lennar Homes BROKER: N/A

ESTRELLA BUSINESS PARK II 801 S. 75th Ave., Phoenix BUYER: Starwood Property Group SELLER: EJM Development Co. BROKER: N/A

7310 W. Roosevelt St., Phoenix BUYER: Starwood Capital Group SELLER: EJM Development BROKER: N/A

3450 S. 59th Ave., Phoenix BUYER: Exeter Property Group SELLER: Swift Transportation BROKER: N/A 19

LEGISLATIVE UPDATE

Rental housing industry on the frontlines of pandemic

or a year, Arizona property owners have labored mightily on the frontlines of the COVID-19 pandemic, working with the state’s 1 million renters to keep people in their homes despite steep challenges: Eviction relief funding that has trickled to those in need; the stratospheric cost of creating safe living spaces and workplaces during a pandemic; and governmental bans on eviction that have left property owners unable to collect rent for months. With COVID-19 transmission rates fluctuating, property owners have little choice but to “keep multiple plates spinning” amid chaos. Mom-and-pop rental owners and large apartment communities alike face similar challenges, albeit on different scales. Some examples: ■ How do we pay property loans, property taxes and maintenance costs when rent isn’t being paid and when eviction relief is dwarfed by our bills? ■ How do we run a revenue-starved business while following best practices for constantly sanitizing common areas, amenities, and public spaces to protect the health of residents? ■ How do we preserve the safety and peacefulness of our premises when multiple levels of government have suspended property owners’ constitutional right to evict problem residents? At the Arizona Multihousing Association, our philosophy has never been to simply accept that times are tough and government solutions are imperfect. Rather, we believe in persistence, proactivity and political advocacy. With a new Administration and Congress in Washington, the state Legislature in session and municipal governments taking a larger role in relief efforts, the AMA is working at all levels to help property owners, renters and our industry. What plates do we have in the air? To date, Arizona has received over

20 | March-April 2021

Courtney Gilstrap LeVinus AMA

$30 billion in aid from Washington. The most recent aid package included about $500 million for rental assistance — a number that remains insufficient in the face of widespread need. While our efforts to advocate for more relief are primary, so is our push to change the rules invoked by the federal government. About 80 percent of Arizona’s 7.4 million residents live in Phoenix, Tucson and the surrounding urban counties. The remaining 20 percent — 1.4 million Arizonans — live in rural settings where rental housing is less common. Unfortunately, this relief package has apportioned 55 percent of its funding to rural areas, leaving 45 percent to serve 6 million Arizonans. That math does not work, and we are pushing hard to allow the state to provide assistance regardless of geography, so long as there is no duplication of benefits. The pandemic also has highlighted Arizona’s need to build more affordable housing. As those of us in the rental industry know, the best way to accomplish this isn’t by government mandate; rather, we need to incentivize affordable housing through a robust public-private partnership. Last year, the AMA, in partnership with other housing groups, was close to creating an Arizona Low Income Housing Tax Credit before the pandemic shuttered the Legislature. This year’s LIHTC bills —

SB1327 sponsored by Sen. David Gowan and HB2562 sponsored by Rep. Regina Cobb — are moving smoothly through the process. This legislation is modeled after a federal program that originated with President Ronald Reagan in 1986. Federal LIHTC has supported the building of nearly 3 million units of affordable housing nationally — including 47,000 units in Arizona. State LIHTC programs exist in 20 states, with a legion of successes. Colorado’s LIHTC program, for example, has created about 5,000 new affordable housing units since 2015. The AMA is also working to make the courts more accessible to residents and owners by supporting SB1322, a measure sponsored by Sen. Warren Petersen to allow parties to virtually attend eviction proceedings. This bill would entrench in statute a practice made commonplace by the pandemic, and, once eviction proceedings resume, it would help alleviate court backlogs. Speaking of eviction — which the media has done at length for a year, often without accurate facts and context — we believe that reports of an “eviction tsunami” are greatly exaggerated. Credible national rental payment analyses suggest that about 94 percent of renters paid their rent in December 2020, down from about 96 percent in December 2019. In Maricopa County, the number of evictions filed in January 2021 was down 45 percent from January last year. Writs of restitution are down 93 percent year over year — to be expected given the federal eviction moratorium recently extended by the Biden Administration until March 31st. These numbers underscore how hard property owners have worked with residents over the past year to keep roofs over the heads of anyone and everyone. That story may rarely make news, but it remains a foundational element of the rental housing industry, a fundamental principle that should be a source of well-earned pride. Courtney Gilstrap LeVinus is the executive director of the Arizona Multihousing Association.

LEGISLATIVE UPDATE NAIOP Arizona Receives National Legislative Award; Pursues Policies to Aid Economic Recovery

he Arizona Chapter of NAIOP, the Commercial Real Estate Development Association, was honored to receive the Chapter Merit Award for Legislative/Government Relations for a Large Chapter from NAIOP Corporate in recognition of the advocacy work we did last year. This award acknowledges our efforts to elect pro-business legislators, keep our members informed about the elections through numerous virtual programs and advocate on behalf of our members throughout the challenges brought about by the COVID pandemic. With the legislative session now in full swing, we are focused on public policies that will help businesses recover from the pandemic and position our state for further economic growth. The passage of Proposition 208 in the November 2020 election vaulted Arizona into the less-than-envious position of having among the highest income taxes in the region for small businesses. At the time of this writing, Prop. 208 is being litigated with an uncertain outcome. Fortunately, legislators are wasting no time in coming up with proposals to make our income tax system fairer and more competitive again. These

22 | March-April 2021

Suzanne Kinney NAIOP

discussions include broader tax reform concepts, importantly a reduction in the commercial property tax assessment ratio. Reducing commercial property taxes has long been a legislative priority for NAIOP. Addressing this issue would go a long way in making our market more attractive to potential investors and tenants. Sen. J.D. Mesnard (R-Chandler) is once again taking the lead in advancing a tax reform package that could meaningfully improve Arizona’s competitive position. With the wounds of Prop. 208 still fresh, legislators and other stakeholders, including NAIOP, are considering ways to reduce the influence of out-of-state funders in our election process.

The most impactful reforms, such as raising the threshold required for passage, modifying requirements for petition signatures needed to qualify for the ballot, adding a sunset provision, and increasing the ability for the state legislature to address unintended consequences of ballot initiatives, would require changes to the state Constitution. These changes would need a referral to the 2022 ballot. COVID liability legislation is necessary to get the economy fully functioning again. Sen. Vice Leach (R-SaddleBrooke) is championing a bill to protect employers, building owners and landlords that follow CDC guidelines and applicable laws to protect the health of employees, tenants and clients, from frivolous lawsuits. With these assurances, more businesses will be able to get back to work providing the products and services that customers want and need. Although the first session of the 55th legislature is operating under truly unique circumstances due to the ongoing COVID pandemic, NAIOP is navigating these changes to serve the needs of our members. Suzanne Kinney is the President & CEO of NAIOP

20 20 IN

MORE THAN 20 MILLION PAGE VIEWS IN 2020 CANNOT BE WRONG. Go to AZBigMedia.com and discover for yourself why BuzzFeed says it’s one of the websites “everyone in Arizona should know about.”

WEST VALLEY UPDATE

EMERGING EMPIRE The Loop 303 corridor in the West Valley is becoming a global center for development By STEVE BURKS

he drive along the 36-mile length of the Loop 303 freeway in the West Valley takes well under an hour. The trip goes fast, but not quite as fast as the land along the 303 is being gobbled up by developers and filled with massive manufacturing and logistics facilities. “Developers from all parts of the country have been planting flags in that area. For the most part, that corridor is spoken for,” said John Lydon, vice president at JLL, who represented one of those newcomers to Arizona, CRG, which purchased land near Reems Road and Northern Avenue in Glendale, near the intersection of the 303 and Northern Parkway. CRG, which is based in Chicago, is teaming up with Phoenix developer Bird Dog industrial to build a 5.5 million square foot industrial park called The Cubes at Glendale. From the freeway’s southern origin at the I-10 north to Olive Ave., major developments are underway. The 1,600-acre PV |303 was the first development along the freeway and has since gotten company with other major developments like Park303, Camelback 303, Woolf Logistics, West 303 Logistics and Sarival Logistics all

24 | March-April 2021

planning to bring many millions of square feet of development. “You could start calling that area the West Valley Empire, similar to the Inland Empire over in California,” added Lydon. “Its a fair comparison with the amount of growth and the amount of corporate activity that seems to just keep going.” Currently, all of the activity along the 303 is industrial and logistics, but a recent announcement could shift that trend. At the other end of the 303, where the freeway meets up with I-17 in north Phoenix, global giant Taiwan Semiconductor Manufacturing Company (TSM) purchased 1,129 acres of former State Trust Land just north of the 303 and south of Hwy 74 and revealed plans to build a $12 billion factory. “We zoned 3,500 acres over the summer, so we zoned the land that’s boundaried by the 74 and the 303 and the 17 and Dead Man’s wash,” said City of Phoenix Economic Development Director Christine Mackay. “That we zoned for economic development purposes. TSM was the successful bidder at the auction most recently, so they got close to 1,200 acres. That

is of course our anchor tenant and it’s exactly the anchor tenant that you would want. Someone that is globally recognized in advanced industries. It unlocks the potential of the balance of that 2,300 remaining acres as a science and technology park, as high-end office, as flex tech and manufacturing that is along that technology front.” With the arrival of TSM, the story of the 303 adds a new chapter, one of huge economic impact that stretches the full length of the freeway.

THE BEGINNING The 303’s origins date back to the 1985 Maricopa County Regional Transportation Plan that was approved by voters. The freeway was originally scheduled to be completed in 2005, but a variety of setbacks pushed the completion all the way to 2017. The freeway cut through farm land and state trust land for the majority of its route, but there was already residential development along some stretches, notably Surprise and Sun City. Well before the freeway was completed, SunCor was at work making plans to develop 1,600 acres on both sides of the 303, started on the west side

WEST VALLEY UPDATE

BREAKING NEW GROUND: Kicking off construction of Park303 are Glendale Vice Mayor Ray Malnar; Councilmember Joyce Clark, City of Glendale; Sintra Hoffman, president and CEO, WESTMARC; Glendale Mayor Jerry Weiers; Paul Hughes, executive vice president of business development, Arizona Commerce Authority; David Krumwiede, executive vice president, Lincoln Property Company; and Councilmember Bart Turner, City of Glendale.

of the 303 at Thomas and stretching north to Camelback. In 2009, SunCor sold the land to John Graham and Sunbelt Holdings, who formed a partnership with Merit Partners to develop what they called PV|303. “For those who don’t know what “PV” stands for – it’s Palm Valley which is a development in Goodyear,” said Kevin Czerwinski, president of Merit Partners, which is also developing the 615 acre Camelback 303 industrial park. “The purchase of what is now PV|303 occurred in July 2010 when there wasn’t the Loop 303 freeway, there was negative absorption of industrial real estate, and it was very difficult to find a financial partner for such a large purchase of land. John 26 | March-April 2021

Graham had the vision and guts to move forward in what was a dicey time in our market.” The PV|303 development began to attract some marquee tenants, including REI, Dick’s Sporting Goods and Ball Corporation. So far, Merit Partners has developed ten buildings at PV|303, totaling 4.6 million square feet. Czerwinski said that Merit is also currently under construction on two more buildings that will add 1.3 million more square feet of product to the market. “We also have five other buildings in the site plan approval process totaling approximately 1.8 million square feet with construction commencing in the third quarter of 2021 which will consist of buildings from 120,000 square feet to 650,000 square feet that will be expandable,” said Czerwinski. Czerwinski said that there are currently seven developments currently in the works along the 303. In the next six months, Czerwinski said there will be nearly five million square feet of product breaking ground in that area. “There are several developers/ investors that have placed their bets on many of the remaining sites along both sides of the Loop 303,” Czerwinski said.

PLACE YOUR BETS The rush of activity along the 303 was triggered by a number of factors, chief among them being the rising costs of development in California. Slowly, companies were starting to realize they could build a distribution center or manufacturing plant in the West Valley of Phoenix for much less than a facility would cost in the major cities in California. And, the ports of Long Beach and the border with Mexico were within a few hours’ drive by truck. “The Southwest Valley of Phoenix has always been the industrial and manufacturing corridor,” said John Orsak, vice president for Lincoln Property Company, which is developing the Park303. “You can get to the ports in six hours, drop your shipment and get back home, all within allowable times. And the further west you are, the closer you are to those ports. It makes sense that industrial is going to locate closer to the ports.” Orsak said LPC was fortunate in their timing to acquire the 265 acres that make up Park303, which is along the east side of the 303 at Glendale Ave. Orsak said a land partner had brought the property to LPC well before

LAYTONCONSTRUCTION.COM

WEST VALLEY UPDATE

Kevin Czerwinski

Jeanine Jerkovic

any other developers had expanded that far north along the freeway. “We went out there and I remember taking our partners out there and they said, ‘Wow, this PV|303 stuff looks great. Why are you still driving North? Where are you going?” Orsak said. “We went two exits up and it’s good, flat, big parcels and you can put big buildings on it. It was pretty easy to see. “We were validated whenever Covid came along and set the e-commerce world on fire. Now all of these big boxes and the demand for e-commerce and distribution is like nothing we’ve ever seen before.” That demand is what is leading companies like CRG to make their first foray into Arizona. Lydon said that he started working with Mark Sonnenburg from Bird Dog Industrial and his partners at CRG to identify land in the corridor that CRG could purchase. Initially, Lydon found 100 acres, but soon CRG realized that there was more potential in that market that they wanted to seize upon. “As the search progressed, they really became bullish on Phoenix’s future and decided to take a much bigger stake out of the 260 acres that they just closed on and we’ll be closing on an additional 80 acres here in March to bring the grand total of the park to 335 acres, so three times the size that they had originally planned for.” Lydon said The Cubes will complement the other developments along the corridor quite well. He said The Cubes is unique in that it is highly flexible, well suited for any customer needing 150,000 square feet of space or more. “These buildings offer capability and flexibility,” said Lydon, who also noted that his information puts the amount 28 | March-April 2021

John Lydon

Christine Mackay

of acres still in play for developers along the 303 at just 1,400. “We’ll be coming out with a 1.2 million square foot spec building, breaking ground in March, as well as we have the capability to offer build to suit options for lease or sale.” Nearly all of the buildings along the 303 are speculative, as developers want to get product to the market as quickly as possible. “You’ve got to move fast,” said Orsak. “That’s why we’ve been building our buildings spec, because people aren’t willing to wait a year, year and a half to get into something. They need to go now and the West Valley municipalities have figured that out and have not stood in the way.”

THE NEXT FRONTIER The majority of initial development along the 303 was happening in Goodyear, but in the past year, Glendale has been the center of most of the new activity. Other municipalities along the 303 are working to take advantage of the freeway access. In Surprise, the 303 transitions into a lifestyle, amenity-anchored corridor with retail and residential opportunities. In 2020, Costco opened a new location in Surprise along the 303 on Waddell Rd., and City of Surprise Economic Development Director Jeanine Jerkovic said that triggered more development in the area. “Simon CRE has submitted a Prasada Village Master Plan proposal that offers more than 890,000 square feet of retail, restaurants and entertainment uses in that corridor,” Jerkovic noted. “There are opportunities for future office and manufacturing campus development, as well.” As the freeway travels north and

John Orsak

Larry Pobuda

east, there’s very little activity when it hits the Phoenix borders, but that will not be the case for much longer. Mackay said that the amount of land along the freeway that resides in the City of Phoenix totals 12,000 acres, much of which is still State Trust Land. The arrival of the TSM facility will likely set off a chain reaction in that area. “If the potential of that facility can be fully realized, could it be analogous to the role that Intel plays down in Chandler?” asked Larry Pobuda, executive vice president at The Opus Group. “Intel has spawned not only this very large anchor of a company down in Chandler, but a key residential market, a number of companies want to be down in Chandler because of Intel and its adjacencies and strong retail, strong demographics, well educated workforce. That’s the closest analogy that I could make as to the possibilities and that’s tremendously exciting.” “It will have a positive impact for all product types in the West and Northwest Valley,” added Czerwinski. “The number of jobs that will be created by TSM and their tier 2 suppliers and additional tiers of the supply chain will be a fantastic opportunity for all aspects of real estate — industrial, retail, flex/office, residential, multifamily, etc.” Mackay, who served as economic development director for the City of Chandler from 1998 to 2014, is very familiar with what impact a company like TSM can make for a region. “To us, we’ve got this incredible opportunity that was, quite frankly, not in any economic development short term radar until about a year ago,” Mackay said. “It’s even surprising me how quickly that the 303 is drawing business into the area.”

SURPRISE RAILPLEX Certified for Development

SURPRISE RAILPLEX ADVANTAGES: BNSF RAILWAY CERTIFIED: 150 and 139 acre zoned and verified shovel-ready properties AWARD-WINNING: WESTMARC Best of the West Award Economic Engine Recipient HIGHWAY ACCESSIBLE: 3.5 miles from the SR-Loop 303, 2.5 miles from the Northern Parkway, and 1.5 miles from the US-60 WORKFORCE READY: •1.7 million population in a 30-minute commute shed •Workforce training: West-MEC, Dysart CTE and Ottawa University •Arizona@Work Program integrated into Surprise AZ TechCelerator •Direct proximity to workforce housing, retail and restaurants G

303

G REENWAY RD

DYSART R D

BU L L AR D AV E

US 60 SUMMIT BUSINESS PARK (139 ACRES)

WA DDELL RD

CACTU S RD (3.5 mi l es)

303 CACTUS COMMERCE CENTER (150 ACRES) DYSART RD ( 2. 5 mile s)

P EO RI A AVE

O LI VE AVE

NORTH ERN PARKW AY

CONTACT THE SURPRISE ECONOMIC DEVELOPMENT DEPARTMENT P: 623.222.3300

E: econdev@surpriseaz.gov

W: surpriseaz.gov/econdev

WEST VALLEY UPDATE

UNDER CONSTRUCTION By MICHAEL GOSSIE

f it seems like there is a constant stream of construction news coming out of the West Valley, you’re not mistaken. The West Valley has been a hot spot for mega-projects. From housing to industrial to hospitality, the West Valley is bustling with current construction projects. Here are some of the projects, in alphabetical order, that are currently under construction.

BROOKLYN BEDDING

The project: Brooklyn Bedding is building a state-of-the art manufacturing facility and corporate headquarters in Glendale. The 648,165-square-foot building will be located on 42.8 acres at the crossroads of West Bethany Home and 52nd Avenue. Developer: Brydant Real Estate Architect: Ware Malcomb General contractor: Alston Construction

BUCKEYE85

The project: Recognizing the growing demands of Phoenix’s supply chain infrastructure, LPC Desert West bought nearly 20 acres in the I-10 corridor for Buckeye85. The new 321,873-squarefoot, Class A industrial project will deliver the location, flexibility and creative industrial amenities desired by mid-size users in today’s modern omnichannel marketplace. Developer: LPC Desert West Architect: Butler Design Group Civil engineer: Hunter Engineering

30 | March-April 2021

Here are some of the projects that are reshaping the landscape of the West Valley

Specializing in Aquisitions, Development, Asset Repositioning, Leasing, Operations and Selling of Industrial, Flex and Office Properties.

Arizona’s Largest Developer of Industrial Real Estate

Delivering superior results for our partners through the application of extensive real estate experience, expansive market knowledge, meaningful industry relationships, and productive collaborations.

meritpartnersinc.com 2555 E. Camelback Road | Suite 180 | Phoenix, AZ 85016 | 480-483-0360

WEST VALLEY UPDATE CABANA ENCANTO AND CABANA BULLARD

The projects: Greenlight Communities is the first company to innovatively focus solely on building “attainable” housing to fill the void between affordable and luxury apartments, using a leading-edge business and development model to create a one-of-a-kind housing alternative for its residents. Developers: Greenlight Communities and Holualoa Companies

COWDEN LOGISTICS CENTER

The project: Located in Tolleson, the facility includes 36’ clear height, 237 car parking stalls, 41 trailer parking stalls, five points of ingress and egress, R-38 insulation, and an ESFR sprinkler system. Developer: Trammell Crow Company Architect: Butler Design Group General contractor: Wespac Construction Broker: Cushman and Wakefield

FAIRWAY 10

The project: Fairway 10 in Avondale will include two single-loaded buildings of 162,000 and 170,000 square feet, well suited for two to four tenants, as well as one 390,000-squarefoot cross-dock building appropriate for one to two tenants. Developers: Westcore and The Opus Group Broker: JLL

GATEWAY 303

The project: Located at the northwest corner of Loop 303 and Thomas Road, Gateway 303 will be part of PV|303, a 1,600-acre master-planned business park approximately 25 miles west of Downtown Phoenix and Phoenix Sky Harbor International Airport. Developer: MDH Partners Architect: Butler Design Group Civil engineer: Hunter Engineering General contractor: ARCO Construction

32 | March-April 2021

BUCKEYE, AZ FACTS:

ONE OF THE FASTEST GROWING CITIES IN U.S.

100,000 POPULATION

(CITY 2021 ESTIMATE)

People have taken notice of everything Buckeye has to offer, from a business-friendly environment to open spaces, residential growth and access to a skilled and educated workforce. Buckeye is Arizona’s largest city (640 sq. miles), and offers unique development opportunities ready to meet your investment needs. • Perfect Location for Advanced Manufacturing & Distribution and Logistics • Rail-Served Megasites • Foreign Trade Zone no. 277

3,343 2020 SFR PERMITS

• Opportunity Zone Sites • State & Local Incentives • Commercial Districts

1.45 MILLION LABOR FORCE

(45 MIN VERRADO WAY/I-10)

LESS THAN ONE DAY TURNAROUND

TO/FROM SOUTHERN CALIFORNIA PORTS VIA I-10

growbuckeye.com

WEST VALLEY UPDATE GRAND CANYON UNIVERSITY RESIDENCE HALLS

The project: GCU is adding three, six-story, 242,000-square-feet residence halls with approximately 600 single-occupancy sleeping units for Fall of 2021 — just in time for what the university anticipates to be its biggest year ever in enrollment. General contractor: Pono Construction Architect: Suoll Architects

JOHN S. MCCAIN III ELEMENTARY SCHOOL

The project: This state-of-the-art school will be located on land donated by the Walton Group, near Miller and Lower Buckeye Roads in Buckeye. Architect: Orcutt Winslow Architecture Firm General contractor: Chasse Building Team

LOGISTICS COMPANY BUILD-TO-SUIT IN GOODYEAR

The project: Westcore is building the distribution center within the PV|303 industrial park. With 36foot clear height, ESFR and secure site trailer storage capacity, the cross-dock facility will offer features in high demand within the industrial market. Developers: Westcore and Merit Partners Architect: Butler Design Group Civil engineer: Hunter Engineering General contractor: Stevens-Leinweber Construction

PARK303

The project: Park303 is a major industrial masterplanned development that at build-out will accommodate up to 4.5 million square feet of ultra-modern, freewayfronting Class A industrial space in Glendale.

Developers: Lincoln Property Company and Roth Development Corporation Architect: Butler Design Group Civil engineer: Hunter Engineering General contractor: Willmeng Construction

THE CUBES

The project: CRG is developing The Cubes at Glendale, a 335-acre industrial park featuring 5.5 million square feet at the intersection of Reems Road and Northern Avenue in Glendale. Developers: CRG and Bird Dog Industrial Broker: JLL General contractor: Clayco Architect: Lamar Johnson Collaborative.

34 | March-April 2021

LIFE IN EVERY DIRECTION

There’s something to satisfy every lifestyle in Estrella, the community where modern living meets the natural thrills of the High Sonoran

Desert. Explore today from the comfort of your home by taking a virtual tour of our model homes and amazing amenities like the StarSplash WaterPark, Presidio Residents Club, Star Tower, and more.

Your virtual Estrella experience starts here: Estrella.com/Virtual

ESTRELLA.COM New homes from the high $200,000s to over $400,000s Beazer Homes • D.R. Horton • Gehan Homes • Rosewood Homes • William Ryan Homes CantaMia® by Taylor Morrison 55+ Coming Soon: Landsea Homes • Terrata Homes • Toll Brothers Custom Home Sites from the $70,000s For more information or questions you can call or live chat with us daily between 10 am - 5 pm.

Exit I-10, south on Estrella Parkway, then turn right on Hillside Drive 623.386.1000

@EstrellaAZLife

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.

HOSPITALITY

Impactful additions New hospitality projects add to Scottsdale’s dynamic tourism landscape By ALYSSA TUFTS

36 | March-April 2021

he tourism industry was thrown for a loop in 2020 as occupancy rates dropped as out of state visitors lessened and the normally high economic impact from Arizona’s resorts and attractions took a large hit unlike any in recent years. However, Scottsdale, one of the state’s biggest hospitality hot spots, continued to attract residents and visitors with the completion and openings of new hotels, restaurants and renovations of mixeduse properties, such as Fashion Square. According to the City of Scottsdale’s annual tourism study, in 2019 Scottsdale-area hotels and resorts experienced a record-breaking

70.7 percent annual occupancy. That year, the city welcomed 11 million visitors who generated $3.3 billion in economic impact and $54.7 million in taxes. In 2020, the occupancy rate dropped to 40.1 percent. Hotel research company STR forecasts that Scottsdalearea hotels and resorts will experience just 49.5 percent occupancy in 2021, which could change as the pandemic evolves throughout the year. “The pandemic came on the heels of one of the strongest years on record for Scottsdale’s tourism industry, and at the start of 2020 we were projected to have another really strong year and see growth at our hotels and resorts in occupancy,

rate and revenue,” said Stephanie Pressler, director of Community Affairs for Experience Scottsdale, the city’s tourism bureau. “Our high season is January through April, so we did really well the first few months of the year. Then COVID hit and in March a lot of our hotels closed for a bit. Since August 2020, we’ve been seeing occupancy levels plateauing around 30 to 40 percent,” Pressler said. Although occupancy levels were lower than in years past, Pressler said Scottsdale resorts, hotels, restaurants and other businesses have implemented new health and safety protocols to ensure people feel safe and welcomed

when in the city. “It has been a challenging time, but this is a resilient industry. We are hopeful for the future, and Scottsdale is known for our luxury brand,” she said. “I think the interest in some of these new projects coming to Scottsdale, both the ones that opened in 2020 and ones that will be online in the coming years, speaks to the strength of our tourism industry and our brand.” Matt Shock, project executive for DPR Construction, the general contractor on AC Hotel Scottsdale North, which opened in January 2021, said DPR was the first company in Arizona to execute and deliver a prefabricated structure for

HOSPITALITY Marriott and the hospitality industry, which could usher in a more efficient construction model for future similar projects. “It proved that prefabrication and modular construction is a viable option, especially in this market, and this project showcased that compared with other projects,” Shock said. Construction on the 88,000-squarefoot, 165-room, six-story boutique hotel in the heart of Scottsdale was completed in June 2020. DPR delivered the project in 13 months — three months quicker than the average construction timeline for the AC Hotel brand. Prefabricating the the top five floors of the structure reduced manpower onsite and helped keep construction on budget. The use of digital building components offered several advantages, including preserving cost certainty associated with framing, finish and quality. Installing a panelized steel structural system with load-bearing walls improved building

AC HOTEL SCOTTSDALE NORTH: Sleek multiuse lobby lounge area and outdoor patio

38 | March-April 2021

longevity and allowed for the creation of a taller building with more guest rooms. Offsite manufacturing of the load bearing structure also helped minimize disruption to the adjacent resort. The building features a holistically designed lobby with high-end finishes, centralized bar, modern lounge area, a co-working space for professionals, five levels of luxury guest rooms and a pool. “AC Hotel Scottsdale North is a

boutique lifestyle hotel,” Shock said. “It caters to the business traveler in an area that is really dominated by fullservice resorts. It is ideally located in a great area next to Kierland Commons, and it’s got a ton of adjacency to the existing Westin property at Kierland,” Shock said. “It was also interesting because the owner, Host Hotels and Resorts, typically only does luxury products, so I think it’s a testament that a number

POWERING THE NEXT GENERATION For the last 75 years, we have committed to investing in the next generation of talent for our future in the electrical industry.

John R.| Journeyman

Patrick R. | Apprentice

cannon-wendt.com | 602.279.1681 ROC068027 - ROC027458 - ROC068026

DELIVERING EXCELLENCE AND INTEGRITY FOR MORE THAN THREE DECADES.

YEARS

Over the test of time, Bjerk Builders has consistently proven their unparalleled dedication to excellence, by completing client projects on time, within budget and with the utmost level of quality. License B1-088897

Bjerk-PROVEN-7.125x4.75-HfPg.indd 1

480.497.2300 • fax: 480.497.9610 www.bjerkbuilders.com 39

9/23/20 9:08 AM

HOSPITALITY

CANOPY SCOTTSDALE: Rooftop view

of national hospitality developers are looking at the range of product types they have within their portfolio and are trying to find which one is going to be the right value-add based on the submarket that it’s in.” In addition to AC Hotel Scottsdale North, Canopy by Hilton Scottsdale Old Town completed construction in 2020. The 204,810-square-foot, sevenstory, 177-room hotel in downtown Scottsdale opened in October 2020. Mark Beal, director of construction for Ryan Companies, the general contractor of Canopy Scottsdale, said the construction timeline stayed on schedule because COVID protocols with social distancing and safety procedures were implemented. “We were very deliberate about educating our subcontractors and tradespeople onsite about social distancing and did aggressive cleanings by shift. We were fortunate that we were able to maintain 40 | March-April 2021

our construction momentum.” Canopy Scottsdale has a signature restaurant, an American brasserie inspired by the Southwest, as well as Outrider Rooftop Lounge, Old Town’s newest rooftop pool and bar on the hotel’s seventh floor offering views of Camelback Mountain. The interiors combine dramatic natural elements, such as a variety of wood and metal tones incorporated throughout, with curated artwork by local artists. The guest rooms blend a midcentury modern aesthetic with the simplicity of nature while paying homage to the city’s distinctive surroundings. Beal said Canopy Scottsdale was an exciting project for Ryan Companies because of its location in Old Town Scottsdale. “The hotel sets the bar for top-notch amenities, and its location draws people. The rooftop bar is second to none, so we were really appreciative of our partnership with Miller Global (owner of Canopy) and being selected to bring this new hotel to Old Town Scottsdale.”

Canopy Scottsdale provides tourist accommodations among nearby galleries, cultural venues, entertainment and retail. Situated at the northeast corner of First Street and Marshall Way, the project is immediately east of the Museum of the West and within the Scottsdale Arts District. Mixed-use areas like Old Town Scottsdale are hubs of activity and attract both residents and visitors to experience hotels, activities and restaurants in close proximity. “Old Town is really the heart of our community and has so many opportunities. It adds to what we can offer people who want to come here and have experiences and memories,” Pressler said. “Throughout the pandemic, I think people have realized they might have taken travel for granted in the past; and our new campaign, called ‘Extraordinary Moments. Lifelong Memories,’ is focused on highlighting the memories you make when you travel to Scottsdale

Mark Beal with all the things you can do here.” The tourism industry in Scottsdale has a lot of opportunities to recover as the pandemic evolves. “One of the things that will benefit us as a destination as we come out of the pandemic is having so many wide open spaces, hiking opportunities and the beauty of the desert,” Pressler said. “People feel rejuvenated when they come here. They can be outside and can stay at a casitastyle resort where there are open-air hallways, so they have distance between themselves and other guests.” In addition, Pressler said meetings and events could be a first step toward CANOPY SCOTTSDALE: Rooftop pool

Stephanie Pressler

Matt Shock

attracting more visitors to the area later this year once people are vaccinated and feel more comfortable traveling again. “Meetings and conferences are important to Scottsdale’s tourism industry. They help fill our hotels and resorts, but those groups also are filling our restaurants and going to our attractions. Those events probably won’t be coming back online until the third or fourth quarter of 2021.” Although the tourism industry did take a large hit in 2020, there is optimism about how new developments, such as the AC Hotel Scottsdale North and Canopy by Hilton Scottsdale Old Town, add value to Scottsdale’s already dynamic tourism landscape. “In the past few years before the

pandemic, we were seeing growth year after year for our tourism industry; new restaurants and hotels; and renovations at hotels, restaurants and Fashion Square, so there was a lot to be excited about then. 2020 paused that excitement, but we are hopeful that we’ll be able to get back to that, as consumer poll surveys show people are feeling more confident to start to plan trips later in the year,” Pressler said. “This is a resilient industry. We’ve experienced a lot of strife before and overcome different things in the past, and I think we’ll emerge stronger from this. It will just take time to get there. At Experience Scottsdale, we’re hopeful that the work we do will also help the industry recover as well.”

16th ANNUAL

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

RED AWARDS

RIGHT MAN, RIGHT TIME Larry Pobuda’s leadership allowed The Opus Group to thrive in chaotic 2020 By STEVE BURKS

It was a year that tested even the strongest companies, and many faltered in 2020 as the world was beset by a global pandemic that affected virtually all parts of life. There were clearly many hardships throughout the country, but 2020 also demonstrated the value of solid, competent leadership and how opportunities can arise out of a chaotic year. In Phoenix, the pandemic halted the commercial real estate industry for a very short time, and the industry rebounded in a big way to complete some remarkable projects, as shown by the more than 100 project nominations that AZRE Magazine received this year for the annual RED Awards. “The month of March really caused us to reboot and refocus and think through exactly how we were going to proceed,” says Larry Pobuda, executive vice president for The Opus Group and the man that oversees the Western Region for the firm. “Our mantra became ‘safety, focus, accelerate.’” Pobuda was the perfect leader during this time of crises. With more than 30 years of commercial real estate experience, Pobuda has been through many up and down cycles, but nothing quite like what his company faced in 2020. For Pobuda, who says he has been the beneficiary of some outstanding mentors during his career,

that experience and those advisers helped prepare him for this new challenge. “I really felt that this was my time to do a lot of mentoring of the younger people on my team,” Pobuda says. Pobuda joined The Opus Group after working his way up through the commercial real estate world, beginning in the Midwest. He started as a marketing principal for Trammell Crow Company, before moving to United Properties, where he became a senior vice president. From there, Pobuda served as a principal for the Stewart Lawrence Group and then became a senior vice president for Transwestern in their Phoenix office. In 2014, Pobuda joined The Opus Group as a senior vice president; he was promoted to executive vice president in 2018, the role he holds today. One of the first things Pobuda did at the onset of the pandemic, as everyone went home and began working remotely, was create what he called his “Daily Musings.” These emails would come at the end of the day and feature a project update, a life lesson or just a story that Pobuda would share with his team members who were scattered about and unsure of how long they would be working away from the office. “When we were first sent home, I thought

it was going to be a two-to-three week deal. That’s how naive I was,” Pobuda recalls. “These daily musing became almost a bit of medicine, especially for our young people who looked forward to hearing my perspective on what was going on, either on a deal or a negotiation, or a reminder of something that I had experienced earlier in my life. “The musings proved to be a nice sharing of stories and provided confidence that we are going to get through this, we are going to get to the other side. They were therapeutic to me— like writing in a journal about what was happening and to recap the events.” Pobuda’s “Daily Musings” came Monday through Thursday for 10 consecutive weeks during the first few months of the pandemic. On Fridays, Pobuda would gather his team, all 45 associates, for a Zoom meeting that he dubbed the Western Roundup. On these calls, Pobuda and his team would share concerns, successes and stories that kept them connected.

My goal was to keep you informed, keep you connected, add perspective, and at times, add a bit of humor. You all know that I am a fan of Bill George, the former CEO of Medtronic and the author of “Authentic Leadership.” In his book, George describes the importance of finding your “true north” … your authentic voice. Your authentic voice is sometimes upbeat and sometimes somber. It is at times focused and at times irreverent. Most importantly, your authentic voice is intended to be a genuine reflection of exactly how you are feeling. And so, at the end of each day, that's exactly what you got as I arrived home, sat at my kitchen counter, and pounded out my thoughts of the day. — Larry Pobuda

“The Roundup was just to stay in front of each other, keep everyone engaged and allay fears that people were having,” Pobuda says. “Different people experience different things. Some, who were midcareer with young families, remembered the great financial crises from 2008 to 2012, and some of them had endured real change and real hardship. It caused real concerns for a number of members of our team.” The Opus Group mantra — safety, focus, accelerate — went into effect quickly when it became clear that the pandemic was going to last for a while. Employee safety was the first and biggest priority, and Pobuda wanted to make sure that his team was working in environments that were safe. Second, in a time of upheaval in everyone’s daily life, focus was crucial. “This wasn’t a time to get distracted with speculation and trying to anticipate what was coming,” Pobuda said. “It really was a meaningless exercise in the sense that none

of us, even at my age, had lived through a pandemic. Trying to read in the tea leaves what might be coming felt more of a waste of time as opposed to focusing on what was immediately in front of us. “Through that focus, we knew we had some really good business opportunities that were now facing a whole other set of challenges.” According to Pobuda, those challenges included land sellers who were unsure of the value of their properties and fluctuating construction prices as the companies maneuvered through their own issues. Pobuda notes that the natural reaction to what was happening was “just wake me up when this is over,” but he knew that wasn’t the best way forward. “We wanted to adopt the opposite approach, which was ‘let’s accelerate through this. Let’s push; let’s keep making progress through this,’” Pobuda remarks. “We wanted to make sure we were advancing these opportunities, continuing to make good progress and really capitalizing

at a time of wild uncertainty.” The Opus Group thrived during 2020, delivering 1.2 million square feet of industrial space in the Phoenix market, as well as a major multifamily project, Paradise at P83 Apartments in Peoria. Two of the industrial projects, Goodyear Airport Industrial and Longbow Gateway One, are RED Award finalists. Also in 2020, Opus broke ground on an additional pair of major industrial projects, the 720,000-square-foot speculative Fairway 10 development in Goodyear and the 275,000-square-foot Goodyear Airport 85 spec building. “During the groundbreaking ceremony for the Fairway 10 project, I made the comment that back in April and May (of 2020) when our deal was getting done, there were far more questions than answers, and that’s what we were faced with,” Pobuda reflects. “But that project groundbreaking was the culmination of good people really working together, putting their heads down and making things happen in such a wildly uncertain time.”

EDUCATION Pat Tillman Middle School Rebuild McCarthy began construction in May 2019, demolishing five structures and renovating an existing space to house the administration building. It is important that Pat Tillman Middle School be a beacon for its students and its diverse community. Students played an integral role in the campus design, which celebrates this incredible diversity through a large sign in the lobby that exclaims “welcome.” Each letter is made up of smaller words of salutation in the 39 languages spoken by the school’s community.

OWNER: Balsz School District GENERAL CONTRACTOR: McCarthy Building

Companies PROJECT MANAGER: McCarthy Building

Companies ARCHITECT: DLR Group SUBCONTRACTORS: Pete King Construction;

Hawkeye Electric; Procon Professional Concrete; Irontree Construction; Progressive Roofing VALUE: $17.1 million SIZE: 70,000 SF LOCATION: 4309 E. Belleview St., Phoenix START/COMPLETION: May 2019/Oct. 2020

Valley View Leadership Academy The design and contracting teams worked closely with the school to ensure that disruption was minimized and potential constraints leveraged into incredible opportunities. One such challenge: Because the school was operational during construction, building on a tight footprint presented an opportunity to design the media center on the second floor, which offers incredible views to South Mountain. OWNER: Roosevelt Elementary School District GENERAL CONTRACTOR: CORE Construction

West Point High School This high school is the newest addition to Tolleson Union High School District. In addition to classrooms and administrative spaces, this state-of-the-art building includes a two-story innovation center, modern flexible learning spaces, a performing arts center, and an artificial turf football stadium with a running track and grandstands for 4,000 fans. Baseball and softball fields and extensive site improvements were also included in the project. OWNER: Tolleson Union High School District GENERAL CONTRACTOR: CHASSE Building Team ARCHITECT: ADM Group VALUE: $108 million SIZE: 311,000 SF LOCATION: 11620 W. Encanto Blvd., Avondale START/COMPLETION: Aug. 2019/May 2020

46 | March-April 2021

ARCHITECT: Orcutt | Winslow SUBCONTRACTORS: Sun Valley Masonry; RKS

Plumbing & Mechanical; Pete King Construction Company; LR Cowan Concrete; Amber Steel VALUE: $13,697,360 SIZE: 56,420 SF LOCATION: 8220 S. 7th Ave., Phoenix START/COMPLETION: Sept. 2018/Jan. 2020

A Culture Built on Trust. www.coreconstruction.com

HIGHER EDUCATION Arizona State University Health Futures Center The Health Futures Center is a three-story, ground-up medical learning facility built by DPR Construction for Arizona State University in partnership with Mayo Clinic. This collaborative center offers a new and innovative model for the future of healthcare professionals in which students are taught to treat patients through a whole-health model of mind, body and spirit. OWNER: Arizona State University GENERAL CONTRACTOR: DPR Construction PROJECT MANAGER: DPR Construction ARCHITECTS: DFDG Architecture and CO Architects SUBCONTRATORS: DPR Construction; Cannon and Wendt; Harris Mechanical; Suntec Concrete; Mercatus Lab Vendor VALUE: $80 million SIZE: 150,000 SF LOCATION: 5777 E. Mayo Blvd., Phoenix START/COMPLETION: Jan. 2019/Oct. 2020

Arizona State University Lantana Hall This innovative student housing and hub for student collaboration adds to the growing Polytechnic Campus. Lantana Hall has 179 sleeping units and includes shared amenity spaces, a BBQ courtyard area and a multiuse outdoor amphitheater. The project received the highest honor of LEED Platinum Certification from the U.S. Green Building Council for energy efficiency and sustainable features. OWNER: Arizona State University DEVELOPER: Capstone Development Partners GENERAL CONTRACTOR: CORE Construction ARCHITECT: Shepley Bulfinch SUBCONTRACTORS: Sun Valley Concrete; Hilty’s Electrical Contracting; Pete King Construction Company; JFN Mechanical Contracting; Integrated Structural Concepts LENDER: Harrison Street Real Estate Capital VALUE: $28.7 million SIZE: 113,821 SF LOCATION: 5885 S. Twining, Mesa START/COMPLETION: June 2019/Aug. 2020 48 | March-April 2021

The University of Arizona Health Sciences Innovation Building This nine-story building serves as a cutting-edge platform to build and foster collaborations among interdisciplinary teams of health professionals, students, faculty and researchers in medicine, nursing, pharmacy, and public health. Key features include a 1,000-person-capacity forum for special events that can be opened to the outdoors, 13 wet and dry research laboratory spaces, 57 classrooms/instruction halls, and “flipped classrooms” that accommodate 150 students for interactive learning

OWNER: University of Arizona GENERAL CONTRACTOR: Kitchell ARCHITECT: CO Architects with Swaim

Associates SUBCONTRACTORS: Baker Concrete; ISEC; Schuff Steel; Sun Mechanical; TP Acoustics VALUE: $131 million SIZE: 226,000 SF LOCATION: 1670 E. Drachman St., Tucson START/COMPLETION: June 2016/ May 2019

FROM CONCEPT

Valleywise Primary & Specialty Care Center Peoria, AZ

TO COMPLETION

Your Design Partner.

www.dpelectric.com

HEALTHCARE Banner Ocotillo Medical Center This state-of-the-art facility provides a much-needed local community boost to in-patient bed demand. The rapid design and construction schedule tell an amazing story of innovation, collaboration, integration and expertise among the project team, SmithGroup, Okland Construction and Banner Health. Additionally, the design excellence executed on this facility echoes the highest quality patient care delivered by Banner Health. OWNER: Banner Health GENERAL CONTRACTOR: Okland Construction PROJECT MANAGER: SmithGroup ARCHITECT: SmithGroup SUBCONTRACTORS: Jensen Hughes; A2O Food Service; PK Associates; Dibble Engineering; Spectrum Irrigation VALUE: $150 million SIZE: 245,000 SF LOCATION: 1405 S. Alma School Rd., Chandler START/COMPLETION: Jan. 2018/Oct. 2020

Mercy Medical Commons II

HonorHealth Sonoran

Medical Center

One of the more unique aspects of the project was its Integrated Project Delivery. From the onset of the preconstruction process, HonorHealth, CBRE, Devenney, McCarthy, LSW and key trade partners co-located to create a true “one team” environment. This early integration allowed the team to quickly review many different design ideas and options to ultimately land on the best solution for the owner. The facility offers 70 patient beds, a full diagnostic and treatment suite, and an outpatient surgery center. OWNER: HonorHealth GENERAL CONTRACTOR: McCarthy Building Companies PROJECT MANAGER: McCarthy Building Companies ARCHITECT: Devenney Group SUBCONTRACTORS: WD Manor; Delta Electric; Schuff Steel; AROK; Western Millwork VALUE: $95 million SIZE: 154,000 SF LOCATION: 19829 N. 27th Ave., Phoenix START/COMPLETION: Jan. 2019/July 2020 50 | March-April 2021

This project has been a market maker in several ways. Located at a high visibility corner across the street from the 300 bed Mercy Gilbert Medical Center, the development set the highest land comparable in the trade area at the time of site acquisition, and this property is now commanding the highest lease rates for medical office space in the submarket.

OWNER: MedProperties Group DEVELOPER: MedProperties Group GENERAL CONTRACTOR: Balfour Beatty PROJECT MANAGER: MedProperties Group ARCHITECT: Ware Malcomb SUBCONTRACTORS: Carlson Glass;

Division 3 Structures; Hawkeye Electric; RKS Plumbing; ACE Asphalt BROKERAGE: Colliers International in Arizona SIZE: 62,000 SF LOCATION: 3591 S. Mercy Rd., Gilbert START/COMPLETION: April 2019/ June 2020

CONGRATULATIONS to our 2021 RED Award finalist projects.

Plaza Companies / Holualoa Companies Catalina Parking Structure at Park Central

Fort McDowell Yavapai Nation We-Ko-Pa Casino Resort

The University of Arizona Health Sciences Innovation Building

kitchell.com

HOSPITALITY Canopy by Hilton Tempe Downtown The Hilton Canopy Tempe is a cohesive taste of Arizona. The hotel offers touches of the local city scene, the surrounding natural desert and elements of regional history throughout. The exterior facade stands out, while the interior immerses the guest experience into the natural desert, resulting in a blending of both worlds that educates and inspires the hotel’s guests. OWNER: Driftwood Capital GENERAL CONTRACTOR: SUNDT Construction PROJECT MANAGER: SUNDT Construction ARCHITECT: Allen + Philp Partners SUBCONTRACTORS: SUNDT Concrete; TD Industries; Wilson Electric; MKB Construction; Western Millwork VALUE: $65,304,000 SIZE: 172,972 SF LOCATION: 108 E. University Dr., Tempe START/COMPLETION: July 2018/March 2020

We-Ko-Pa Casino Resort

Hyatt Place Hyatt House Tempe Downtown Developed and built by Mortenson and designed by PK Architects, the eight-story hotel provides the more than four million annual Tempe visitors with a new place to stay, gather and enjoy city life within close proximity to sporting venues, retail and dining. Carrying the name of two Hyatt brands, Hyatt Place and Hyatt House, this hotel offers 259 room in two styles: 154 Hyatt Place rooms and 105 Hyatt House rooms. 52 | March-April 2021

OWNER: Apple Hospitality REIT DEVELOPER: Mortenson MDI GENERAL CONTRACTOR: Mortenson PROJECT MANAGER: Mortenson ARCHITECT: PK Architects SUBCONTRACTORS: Specified

Electrical Contractors; Hayes Mechanical; Suntec Concrete; Valiant Products Corporation; Pueblo Mechanical & Controls VALUE: $64.6 million SIZE: 156,611 SF LOCATION: 601 E. 6th St., Tempe START/COMPLETION: Feb. 2019/ Aug. 2020

The new casino expansion 30 miles east of Phoenix raises the bar for gaming choices in the region. The development, which replaced the Fort McDowell Casino, provides a state-of-the-art gaming experience and expands the amenities offered. The new casino features an elegant entertainment experience, combining natural colors with tribal theming and finishes in a composition that is distinctly modern. OWNER: Fort McDowell Yavapai Nation GENERAL CONTRACTOR: Kitchell PROJECT MANAGER: Fort McDowell Gaming Enterprise ARCHITECT: Thalden Boyd Emery Architects SUBCONTRACTORS: Desert Mountain Tile & Marble; E&K; ISEC; Sun Valley Masonry; Wilson Electric VALUE: $114 million SIZE: 210,000 SF LOCATION: 10438 Wekopa Way, Scottsdale START/COMPLETION: July 2018/Sept. 2020

INDUSTRIAL-LARGE Amazon Fulfillment Center The fulfillment center includes 2.3 million square feet of finished floor space with four mezzanines containing products, which are picked by employees, moved along a system of conveyors, and then packaged and prepared for shipping. The fulfillment center also features an elevated processing level and office space. The building is equipped with conveying systems, automatic sorting capabilities and advanced robotics. OWNER: Prologis SUBCONTRACTORS: Suntec Concrete; DEVELOPER: Prologis Shambaugh and Son Fire Protection; Schuff GENERAL CONTRACTOR: Layton Steel; Ricor,; Gaylor Electric SIZE: 2.3 million SF Construction PROJECT MANAGER: Layton LOCATION: 580 S. 143rd Ave., Goodyear START/COMPLETION: Nov. 2019/Nov. 2020 Construction ARCHITECT: HPA Architects

Chandler Airport Commerce Park Phase one of this project includes three buildings totaling 337,840 square feet. Phase two consists of 201,400 square feet, bringing the total project square footage completed in 2020 to 539,240 square feet. The project offers secure concrete loading courts and high-quality design aesthetics, and the buildings provide a very efficient layout that effortlessly accommodates tenants. OWNER: Ryan Companies US DEVELOPER: Ryan Companies US GENERAL CONTRACTOR: Ryan Companies US PROJECT MANAGER: Ryan Companies US ARCHITECTS: Ware Malcomb, Ryan Companies US, SUBCONTRACTORS: Wilson Electric; West Coast Partitions; Riggs Companies; Olympic Fire Protection; Ace Asphalt BROKERAGE FIRMS: Lee & Associates of Arizona; JLL SIZE: 539,210 SF LOCATION: McQueen Rd. & Queen Creek Rd., Chandler START/COMPLETION: Q2 2019/Q4 2020

Park303 Phase I Designed at a time of historic demand for West Valley industrial space, Park303 Phase I was one of the first buildings in the Valley to offer two separate — or one single — building footprints. With this in mind, Phase I was developed as two individual buildings comprising 705,531 square feet and 488,995 square feet. OWNER: Lincoln Property Company Contracting; Apache Pipeline. BROKERAGE FIRM: Lincoln Property with Goldman Sachs DEVELOPER: Lincoln Property Company VALUE: $120 million Company GENERAL CONTRACTOR: Willmeng SIZE: 1.25 million SF LOCATION: East side of Loop 303 Construction ARCHITECT: Butler Design Group between Bethany Home Rd. and SUNCONTRACTORS: Hunter Glendale Ave., Litchfield Park START/COMPLETION: March 2020/ Engineering; Suntec Concrete; Reynolds Electric; Scotts Diversified Dec. 2020 54 | March-April 2021

WE BUILT

SOMETHING SPECIAL Arizona’s newest casino is turning heads. Our guests are enjoying all the new amenities like the spacious gaming area and new restaurants, but they’re not alone in their admiration. We are proud to be recognized as a finalist for Arizona’s Real Estate & Development (RED) Awards, with the winners to be announced in March.

F I N D YO U R S E L F H E R E 1 0 43 8 W E KO PA WAY • F O R T M C D OW E L L , A Z • 1 - 8 5 5 -W K P -W I N S ( 1 - 8 5 5 - 9 5 7- 9 4 67 ) • W E KO PAC A S I N O R E S O R T.CO M A N E N T E R P R I S E O F T H E F O R T M C D O W E L L YAVA PA I N AT I O N

INDUSTRIAL-LARGE PV 303 West II/MLILY An experienced developer (Merit Partners), an award-winning architect (Butler Design Group) and a four-decades-old general contract leader (StevensLeinweber Construction) combined — in the course of less than ten months — to construct the PV 303/ West II shell building and accomplish a fast-track, 643,798-square-foot tenant improvement. OWNER: First Industrial Realty Trust DEVELOPER: Merit Partners GENERAL CONTRACTOR: Stevens-Leinweber Construction PROJECT MANAGER: Stevens-Leinweber Construction ARCHITECT: Butler Design Group SUBCONTRACTORS: Suntec Concrete; Panelized Structures; Olympic West Fire Protection; Gunsight; TCK Air Conditioning and Heating BROKERAGE FIRMS: CBRE and Colliers International in Arizona VALUE: $31,404,000 SIZE: 643,798 SF LOCATION: 3550 N. Cotton Ln., Goodyear START/COMPLETION: March 2020/Dec. 2020

The Hub A clean, modern aesthetic was the intent for the overall design, which brings a fresh, cutting-edge approach to common tilt panel concrete construction. Each entry is wrapped in storefront glass that conveys natural daylight into the spaces. The facility includes both

56 | March-April 2021

recessed truck docks and grade-level loading docks. OWNER: Clarius Partners DEVELOPER: Creation GENERAL CONTRACTOR: LGE Design Build PROJECT MANAGER: LGE Design Build ARCHITECT: LGE Design Group SUBCONTRACTORS: Desert Structure; Suntec

Concrete; North Star Pipelines; Arc Steel, Speciality Roofing. BROKERAGE FIRM: JLL VALUE: $59 million SIZE: 793,000 SF LOCATION: 305 S. Bullard Ave., Goodyear START/COMPLETION: Q2 2019/Q2 2020

making a difference Willmeng would like to congratulate those who perform at their best in every inning and at every at-bat to bring home winning results. Congratulations to the All-Star teams! Experience the Difference. WILLMENG.COM | ROC #082904, Class B-01

INDUSTRIAL-MEDIUM Goodyear Airport Industrial The building consists of 36 foot clear height, 100% concrete fully secured truck courts, a full row of excess trailer parking on both sides of the building, 73 dock doors and four drive-in-doors. Architecturally, the structure showcases a unique design with its form liner covering on the front and standard concrete

tilt with form liner squares to give an enhanced architectural aesthetic in the back. OWNER: The Opus Group DEVELOPER: Opus Development Company GENERAL CONTRACTOR: Opus Design Build PROJECT MANAGER: Opus Design Build ARCHITECT: Opus Architecture & Engineering BROKERAGE FIRM: CBRE SIZE: 450,619 SF LOCATION: 2250 S. Litchfield Rd., Goodyear START/COMPLETION: Jan. 2020/Dec. 2020

VB|143

Park Aldea The Park Aldea buildings are each able to house multiple tenants, if required, while also being big enough to meet the needs of a larger business that requires maximum square footage. The complex sits on more than 30 acres, and each building has a large dockhigh truck court on one side that allows for multiple semitrailers to utilize the area at any given time.

58 | March-April 2021

OWNER: Trammel Crow Company DEVELOPER: Trammel Crow Company GENERAL CONTRACTOR: Haydon Building Corp PROJECT MANAGER: Haydon Building Corp ARCHITECT: Butler Design Group SUBCONTRACTORS: Precision Glass; IKON Steel;

Suntec Concrete; Panelized Structures, Inc.; Progressive Roofing VALUE: $17.8 million SIZE: 356,000 SF LOCATION: 10100, 10150, 10200, 10250 W. Montebello Ave., Phoenix START/COMPLETION: Sept. 2019/June 2020

VB|143 is the first spec industrial development to deploy airborne and contact pathogen mitigation. The technology installed includes a sophisticated filtration system with rooftop mounted office AC air-handling units that mitigates viral and bacterial airborne pathogens. Additionally, UV-based lighting systems eliminate surface contaminants on desktops, cabinets and other surfaces, including washrooms. The same systems integrated in warehouse areas. OWNER: Baker Development Corporation GENERAL CONTRACTOR: Layton Construction ARCHITECT: Butler Design Group SUBCONTRACTORS: Riggs Contracting; Diversified Roofing Corporation; IKON Steel; Olympic West Fire Protection; Desert Structures BROKERAGE FIRM: JLL VALUE: $15.5 million SIZE: 326,000 SF LOCATION: 215-224 N. 143rd Ave., Goodyear START/COMPLETION: Sept. 2019/April 2020

INDUSTRIAL-SMALL Laser Components The project is the home of Laser Component’s Southwest US office, research and production facility. It incorporates complex gas, liquid chemical, electrical and air systems that are critical to the delicate processes of the company’s business. The building greets Nevada Street with a remarkable display of glass, solar-conscious metalwork and a smooth, light application of vertical spans of masonry with contrasting dark punctuation. OWNER: Laser Components GENERAL CONTRACTOR: LGE Design Build PROJECT MANAGER: LGE Design Build ARCHITECT: LGE Design Group SUBCONTRACTORS: Stoll Masonry,; Milam Glass Co.; Sonora Drywall; TCK Air Conditioning & Heating; Phoenix Commercial Electric VALUE: $5 million SIZE: 21,000 SF LOCATION: 2277 N. Nevada St., Chandler START/COMPLETION: Q1 2019/Q3 2020

Longbow Gateway One Architecturally, the building is compatible with the Longbow Business Park and Golf Course CC&Rs and design standards. It features thoughtful enhancements, including form liner around the glass entries, Corten steel accents throughout in the form of fencing and other metal features, and an abundance of beautiful desert landscaping. OWNER: The Opus Group DEVELOPER: Opus Development Company GENERAL CONTRACTOR: Okland Construction Company PROJECT MANAGER: Okland Construction Company ARCHITECTS: Opus Architecture & Engineering (core shell) and Ware Malcomb (TI buildout) BROKERAGE FIRMS: JLL; KBC Capital Advisors; CBRE SIZE: 147,435 SF LOCATION: 3115 N. Higley Rd., Mesa START/COMPLETION: March 2018/Nov. 2020

60 | March-April 2021

SkyBridge 106 & 107 The project features amenities that attract tenants, including but not limited to air cargo, e-commerce, manufacturing and aviation and defense specialists. Because Lots 106 and 107 are runway-facing or runway-adjacent, development also required above-and-beyond coordination with national and international entities, such as U.S. Customs and Border Protection, the Federal Aviation Administration and Mexico’s Administracion General de Aduana.

OWNER: SkyBridge Arizona GENERAL CONTRACTOR: Graycor Construction

Company PROJECT MANAGER: Graycor Construction

Company ARCHITECT: ADM Group SUBCONTRACTORS: Hilgart Wilson Engineering;

SECON; Markade; Hardrock; Sonoran Drywall. BROKERAGE FIRM: CBRE VALUE: $14 million SIZE: 124,288 SF LOCATION: 7852 E. Velocity Way, 6341 S. Downwind Circle, Mesa START/COMPLETION: Oct. 2019/Dec. 2020

Your banker should say what they’ll do and do what they say. Not one time, but every time. It’s not about making promises, it’s about keeping them. That’s the kind of accountability you’ll get from Alliance Bank of Arizona.

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

alliancebankofarizona.com

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

MULTIFAMILY 7180 Optima Kierland Optima Kierland presides over a lushly landscaped oasis, offering acres of verdant courtyards, a sparkling water feature at its base and a spectacular rooftop Sky Deck at its apex. Spacious private terraces accentuate the tower’s distinctive architecture on all sides, replete with the newest evolution of the signature Optima vertical landscape system. Between the dramatic backdrop of the desert mountains just beyond the doors and the vibrant plant life providing natural privacy, the boundary between indoors and out is blissfully blurred. OWNER: Optima DEVELOPER: Optima GENERAL CONTRACTOR: Optima ARCHITECT: Optima BROKERAGE FIRM: Optima Realty VALUE: $500 million SIZE: 2.8 million SF LOCATION: 7180 E. Kierland Blvd., Scottsdale START/COMPLETION: 2018/Aug. 2020

The Premiere at Eastmark Route 2 Builders brings a muchneeded multifamily element to one of the fastest growing master-planned communities in the Southwest. The project design is completely unique and like nothing that the Phoenix area has ever seen. Owner Andrew Olson designed this place on a bar napkin and then brought it to life. This project has so much life to it and will only continue growing.

RendezVous Urban Flats This noteworthy revitalization project provides desirable rental urban flat units in the heart of Tucson. It is lauded by local Tucsonans for transforming an undeveloped office building site into the RendezVous plaza that merges residential, retail and office uses into a functional pedestrian space. OWNER: 1SC Partners DEVELOPER: Aerie Development GENERAL CONTRACTOR: UEB (Katerra) PROJECT MANAGER: UEB (Katerra) ARCHITECT: DAVIS SUBCONTRACTORS: Ceco Concrete Construction; Mirage Plastering; Interior Logic Group; Glass Unlimited; MDC Studio BROKERAGE FIRM: Aerie Development VALUE: $27 million SIZE: 129,994 SF LOCATION: 20 S. Stone Ave., Tucson START/COMPLETION: June 2018/June 2020 62 | March-April 2021

OWNER: Route 2 Builders DEVELOPER: PCS Development GENERAL CONTRACTOR: Route 2 Builders PROJECT MANAGER: Route 2 Builders ARCHITECT: Route 2 Builders SUBCONTRACTORS: JFN Plumbing;

RT Brown Mechanical; RED Concrete; JR McDade; DBR Drywall VALUE: $60 million SIZE: 230,000 SF LOCATION: 9410 E. Ray Rd., Mesa START/COMPLETION: Aug. 2019/Dec. 2020

2021 RED AWARDS FINALIST Trail House at Enchantment Resort

Construction is a customer service business. Our collaborative, client-focused approach to commercial construction creates value for our partners while maintaining our high-quality standards.

YOUR PROJECT. OUR PASSION.

pwiconstruction.com

OFFICE: LARGE 777 Tower at Novus Innovation Corridor A highly creative and technologically advanced space, 777 Tower is sure to enhance the experiences of tenants, retailers, visitors, and ASU employees and students alike through its highquality, sustainable aesthetic. As a LEED GOLD-designated project, with plans to also earn the Energy Star certification, the sustainable features reduce power and water consumption, increase occupant comfort and reduce operating costs.

OWNER: University Realty DEVELOPER: Ryan Companies US GENERAL CONTRACTOR: Ryan Companies US PROJECT MANAGER: Ryan Companies US ARCHITECT: DAVIS SUBCONTRACTORS: Suntec Concrete;

Gen3 Architectural Wall Systems; SunTech Glass; The Berg Group; Specified Electrical Contractors; RKS Plumbing & Mechanical; HACI Mechanical BROKERAGE FIRM: JLL SIZE: 173,000 SF LOCATION: 777 S. Novus Pl., Tempe START/COMPLETION: April 2018/June 2020

Innovation, Discovery, Education, and Arts Campus Phase one of the development consists of a six-story office building and a separate 1,270-stall free-standing parking garage. The architectural expression of the initial building sets the tone for future development conveying the high-tech character of the technology and biomedical research occurring within. The design team was able to achieve Class A office space with a unique design of ribbon windows mixed with small amounts of curtain wall and metal cladding. OWNER: The Boyer Company DEVELOPER: The Boyer Company GENERAL CONTRACTOR: Okland Construction PROJECT MANAGER: SmithGroup ARCHITECT: SmithGroup SUBCONTRACTORS: PK Associates; Dibble Engineering; Kovach VALUE: $125 million SIZE: 180,000 SF LOCATION: 850 W. Rio Salado Pkwy, Tempe START/COMPLETION: Oct. 2015/March 2020

Rio 2100 East This Class A building features glass curtain wall systems, metal panels and masonry along its exterior facades, and boasts panoramic views of the Valley. Building entries and dynamic two-story entry lobbies showcase stone floors, a glass-railed open central staircase and dramatic lighting.

64 | March-April 2021

OWNER: The Boyer Company DEVELOPER: The Boyer Company GENERAL CONTRACTOR: Wespac

Construction PROJECT MANAGER: Wespac Construction ARCHITECT: Butler Design Group SUBCONTRACTORS: Saguaro Steel;

Walters and Wolf; Integrated Masonry; Coreslab; Flynn Companies BROKERAGE FIRM: The Boyer Company VALUE: $29,843,157 SIZE: 174,000 SF LOCATION: 58 S. River Dr., Tempe START/COMPLETION: Q3 2018/Q2 2020

Block 23, Phoenix

S A FET Y

UNCOMPROMISING IN OUR COMMITMENT EVERY JOB, EVERY TIME.

su n t eccon cret e.co m AZ | CO | UT | ID | NV ROC #138389

OFFICE: MEDIUM Lincoln Union The project is an adaptive reuse of a vacant warehouse that has been transformed into a creative office space. The original windowless structure was 62,000 square feet, but we utilized the high bay volume of the existing facility to add in a new mezzanine to boost the total square footage to 93,500 square feet. A common tenant concourse was added to the spine of the building, connecting the two floors. OWNER: SmithGroup DEVELOPER: Montana Capital Partners GENERAL CONTRACTOR: Okland Construction PROJECT MANAGER: SmithGroup ARCHITECT: SmithGroup SUBCONTRACTORS: Dibble Engineering; Rouser Concrete; True Metal Solutions; Amber Steel Fabrication BROKERAGE FIRM: CBRE VALUE: $8.4 million SIZE: 93,000 SF LOCATION: 475 E. Lincoln, Phoenix START/COMPLETION: April 2018-Jan. 2020

Chandler Corporate Center Phase II

The Collab

Chandler Corporate Center II features a large outdoor amenity area; a two-story glass entrance with stone and wood accents; soaring 14-foot ceiling heights with floor-to-ceiling glass; premier finishes; COVID-related enhancements, such as automatic doors at entries and fully touchless restrooms; and a high 6-to-1,000 parking ratio. OWNER: VanTrust Real Estate DEVELOPER: VanTrust Real Estate GENERAL CONTRACTOR: Stevens-Leinweber Construction PROJECT MANAGER: Stevens-Leinweber Construction ARCHITECT: Butler Design Group SUBCONTRACTORS: SDC, Inc.; Riggs Companies; Bell Steel; CDS Framing; McKinney Glass BROKERAGE FIRM: Colliers International in Arizona VALUE: $25.6 million SIZE: 118,000 SF LOCATION: 4100 W. Chandler Blvd., Chandler START/COMPLETION: Jan. 2020/Sept. 2020

The Collab is another exciting addition to the thriving Heritage District in downtown Gilbert and LGE’s ever-growing mixed-use portfolio. The building features three floors of office space totaling 31,282 square feet as well as 9,277 square feet of ground-floor retail space. Its design, colors and materials complement the surrounding Heritage District. OWNER: Creation DEVELOPER: Creation GENERAL CONTRACTOR: LGE Design Build PROJECT MANAGER: LGE Design Build ARCHITECT: LGE Design Group SUBCONTRACTORS: Riggs Companies; Arc Steel; Milam Glass; Tri-Mega Mechanical; Sonoran Drywall BROKERAGE FIRM: Cushman & Wakefield; OX Urban Properties VALUE: $6.3 million SIZE: 40,559 SF LOCATION: 325 N. Ash St., Gilbert START/COMPLETION: Q1 2019/Q1 2020

66 | March-April 2021

OFFICE INTERIORS

Carvana HQ3 Utilizing a Scandinavian palette of clean white with pine accents, the design establishes a unique and welcoming space for Carvana staff to feel at home while at work. Design elements were created by incorporating off-the-shelf components into fully custom builds, such as the floating storefront conference room walls and hidden-pivot pine doors. Existing warehouse space was transformed into high-ceiling open offices, free-standing conference rooms and an indoor basketball court. OWNER: Carvana GENERAL CONTRACTOR: Wespac Construction PROJECT MANAGER: Wespac Construction ARCHITECT: RSP Architects SUBCONTRACTORS: Arizona Hardwood; Castaldi Custom Millwork; Wilson Electric; Sierra Glass; Door Works VALUE: $5,452,620 SIZE: 50,374 SF LOCATION: 1305 W. First St., Tempe START/COMPLETION: April 2019/Jan. 2020

68 | March-April 2021

DoorDash The design aesthetic reflects DoorDash’s brand and culture with a focus on natural materials, such as polished concrete floors in common areas, exposed concrete columns and wood ceiling details that pay homage to the streets and avenues of the Phoenix neighborhoods where Dashers work tirelessly to deliver exceptional food to hungry customers. Portions of the exposed ceilings are visible throughout the space with floating ceiling clouds to help control acoustics.

OWNER: DoorDash DEVELOPER: Lincoln Property Services GENERAL CONTRACTOR: Holder Construction ARCHITECT: McCarthy Nordburg SUBCONTRACTORS: Energy Systems

Designs; Workplace Resource Denver; Arizona Restaurant Supply; Airpark Signs BROKERAGE FIRM: Cushman and Wakefield VALUE: $7.2 million SIZE: 79,884 SF LOCATION: 1033 W. Roosevelt Way, Tempe START/COMPLETION: May 2019/May 2020

Heard - Novel Coworking

OWNER: Novel Coworking GENERAL CONTRACTOR: Princeton

The historic Heard Building was given new life starting in 2018 when Novel Coworking purchased the structure and began a renovation that restored the exterior and interiors to their former glory. The building was re-imagined into an upbeat office space for a co-working strategy that promotes flexibility, mobility and productivity through “SmartSuites” that are tech-enabled for paperless work environments.

PROJECT MANAGER: Princeton

Construction Construction ARCHITECT: Krause Architecture +

Interiors SUBCONTRACTORS: ASEI

Engineering; Aspen Construction; Beat Logical Solution Mechanical; Compton Plumbing; Hammerhead Electric & Technology SIZE: 65,346 SF LOCATION: The Heard Building, 112 N. Central Ave., Phoenix START/COMPLETION: May 2019/ April 2020

RECREATION/PUBLIC Eloy City Hall

OWNER: City of Eloy GENERAL CONTRACTOR: CORE

SmithGroup engaged with the mayor, council, city leadership, staff and members of the community to ensure that the design process was inclusive and the project would reflect the values of all users and constituents. Through a series of workshops and surveys, we gained a better understanding of Eloy. Together, the team created a facility that reflects and honors the city's cultural diversity and history.

Construction PROJECT MANAGER: Abacus Project Management ARCHITECT: SmithGroup SUBCONTRACTORS: Caruso Turley Scott Structural Engineers; EPS Group; Speedie and Associates; The Sextant Group VALUE: $8.5 million SIZE: 17,800 SF LOCATION: 595 C St., Eloy START/COMPLETION: Feb. 2017/ Jan. 2020

Greenfield Water Reclamation Plant Phase III Expansion This facility can now treat up to 30 million gallons per day of liquids and 38 million gallons per day of solids on an annual average flow basis. The project scope required more than 249,000 cubic yards of excavation and 92,100 cubic yards of backfill. The City of Mesa and Towns of Gilbert and Queen Creek jointly own the treatment plant, while the City of Mesa maintains and operates the plant.

PHX Sky Train Maintenance Storage Facility An addition to the existing facility, this new complex includes two light maintenance bays and one medium bay with pits, elevated platforms for the maintenance bays, office space for technician managers, a heavy storage area and a workshop. To support the added fleet, 5,800 lineal feet of additional guidebeam and running surface was installed throughout the yard. OWNER: City of Phoenix DEVELOPER: Bombardier Transportation GENERAL CONTRACTOR: The Weitz Company PROJECT MANAGER: The Weitz Company ARCHITECT: Deutsch Architecture Group SUBCONTRACTORS: Brahma; Suntec Concrete; Wilson Electric; Buesing; Pueblo Mechanical SIZE: 41,748 SF LOCATION: 1111 S. 44th St., Phoenix START/COMPLETION: Feb. 2019/Oct. 2020 70 | March-April 2021

OWNER: City of Mesa GENERAL CONTRACTOR: McCarthy Building

Companies PROJECT MANAGER: McCarthy Building

Companies ARCHITECT: Carollo Engineers SUBCONTRACTORS: Pipeline Video

Inspection; Matrix Service; Prime Controls; Harris/Arizona Rebar; Progressive Services VALUE: $170.7 million LOCATION: 4400 S. Greenfield Rd., Gilbert START/COMPLETION: Nov. 2017/Nov. 2020

REDEVELOPMENT Arizona State University Hayden Library Reinvention The main drivers for this project include enhancing campus connectivity by engaging the newly activated ground floor with surrounding campus malls; providing flexible spaces for learning, studying, collaborating, and making; and employing a resource efficient approach to all aspects of design. This meticulous renovation reinvents Hayden Library for the 21st century while honoring the iconic history of the campus landmark. OWNER: Arizona State University GENERAL CONTRACTOR: Holder Construction Company PROJECT MANAGER: Ayers Saint Gross ARCHITECT: Ayers Saint Gross SUBCONTRACTORS: Delta Diversified; TD Industries; Able Steel; Red Cedar; The Berg Group; KT Fabrication VALUE: $90 million SIZE: 252,600 SF LOCATION: 300 E. Orange Mall, Tempe START/COMPLETION: March 2018/March 2020

Portales Corporate Center Amenity Center Expansion and Exterior Renovation This tenant improvement and renovation includes a new amenity center for corporate center associate use, with a new tenant corridor. The amenity center lunch room socialization space now provides an enlarged kitchen/ meal prep area, a variety of seating options for dining and socialization, and a storage area. The existing exterior corridor received a refresh with new finishes and light fixtures. It is a collaborative space where the tenants host anything from team-building parties to meet-and-greets with prospective clients. OWNER: Forum Capital GENERAL CONTRACTOR: Willmeng Construction ARCHITECT: DAVIS VALUE: $3.5 million SIZE: 3,000 SF LOCATION: 4900 N. Scottsdale Rd., Scottsdale START/COMPLETION: June 2019/June 2020 72 | March-April 2021

SRP Project Administration Building

of high-caliber finishes results in a drastic improvement from the existing spaces. OWNER: Salt River Project

Salt River Project’s Project Administration Building has served as a corporate headquarters and operational hub for oiver 60 years. As SRP has grown, prior building additions have added operational square footage but resulted in an inflexible interior layout. The design team developed a strategic vision using high-quality systems, innovative technologies and energy-efficient methods. The addition

Mortenson Construction PROJECT MANAGER: Corgan ARCHITECT: Corgan SUBCONTRACTORS: Delta Diversified; HACI Mechanical; IES Commercial; Performance Contracting; Western Millwork; Walters & Wolf SIZE: 440,000 SF LOCATION: 1500 N. Mill Ave., Tempe START/COMPLETION: 2012/2020

GENERAL CONTRACTOR:

2020 Top Producers Congratulations! A+

Todd Noel, CCIM

Don MacWilliam, SIOR

Senior Executive Vice President

Executive Vice President

Office Properties

Industrial Properties

6 Jim Keeley, SIOR, CCIM

Senior Executive Vice President

Payson MacWilliam

Cindy Cooke

Rob Martensen,

Executive Vice President

Senior Executive Vice President

Executive Vice President

Multifamily Properties

Industrial Properties

SIOR, CCIM

Brad Cooke

Mindy Korth

Alexandra Loye

Tim Dulany

Executive Vice President

Senior Vice President

Multifamily Properties

Investment Properties

Healthcare Properties

Office Properties

Founding Partner Scottsdale

Greg Hopley

Phil Breidenbach, SIOR

Executive Vice President

Senior Executive Vice President

Office Properties

Kathy Foster, MCR.W

Phil Wurth, CCIM

Nick Ault

Senior Vice President

Executive Vice President

Vice President

Office Properties

Healthcare Properties

Retail Properties

Office Properties

Rookie of the Year

Daniel Ortega

Bob Broyles

Kyle Campbell

Matt Baniszewski

Vice President

Senior Vice President

Associate Vice President

Associate

Phoenix +1 602 222 5000 Scottsdale +1 480 596 9000

Retail Properties

Investment Properties

Office Properties

colliers.com/arizona

RETAIL H Mart H Mart purchased a building that was in major disrepair. Formerly an Albertsons and Ultimate Consignment store, it has been renovated into a vibrant space that offers a variety of food, products and experiences. The store features Asian, American and Latin groceries, as well as a bakery, pharmacy, various small shops and an Asian food court. H Mart chose this Mesa location because of its easy access to transit, area development plans and a vibrant Asian community. OWNER: H Mart GENERAL CONTRACTOR: Sigma Contracting PROJECT MANAGER: Sigma Contracting ARCHITECT: CORBeL Architects SUBCONTRACTORS: Universal Piping; Advanced Demolition; Tri-Mega HVAC; State Electric; Melvin Concrete BROKERAGE FIRMS: Eisenberg Company; Cambridge Properties VALUE: $5.1 million SIZE: 63,000 SF LOCATION: 1919 W. Main St., Mesa START/COMPLETION: March 2019/ Jan. 2020

Phoenix-Mesa Gateway Terminal Concessions/ O.H.S.O. Brewery Willmeng Construction and DWL Architects collaborated with Kind Hospitality and the PhoenixMesa Gateway Airport to deliver a 2,145-square-foot tenant improvement for the airport that created a 510-square-foot exterior patio, dining area, bar and kitchen space. O.H.S.O. (Outrageous Home Brewer’s Social Outpost) Brewery is located in the mid-concourse at the Phoenix-Mesa Gateway Airport, between Gates 7 and 8. OWNER: Phoenix-Mesa Gateway Airport/Kind Hospitality GENERAL CONTRACTOR: Willmeng Construction ARCHITECT: DWL Architect + Planners VALUE: $2.1 million SIZE: 15,000 SF LOCATION: 6033 S. Sossaman Rd., Mesa START/COMPLETION: Jan. 2020/ March 2020 74 | March-April 2021

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 the Catalina Parking Structure. 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

EDUCATION TA K E S F L I G H T

West Point High School admgroupinc.com 75

RETAIL

The Americano LGE’s attention to detail and quality shines through on this high-end concept restaurant located in North Scottsdale. The 7,048-squarefoot restaurant houses an open kitchen concept with a wood-fired grill that is used to create a

Trail House at Enchantment Resort Trail House emerged from Gluckman Tang Architects’ vision to heighten the engagement between guests and the remarkable natural setting of Boynton Canyon. Trail House acts as the gathering point for resort guests wgi are interested in active exploration — through hiking or mountain biking — of the nearly 400 miles of trails and red rock vistas that are unique to Sedona. OWNER: Enchantment Group GENERAL CONTRACTOR: PWI Construction ARCHITECT: Gluckman Tang Architects SUBCONTRACTORS: ReCreate Companies; Roofing Southwest; Jarmer Electric; Brightview Landscaping; Concrete Finishing VALUE: $2.5 million SIZE: 4,100 SF LOCATION: 525 Boynton Canyon Rd., Sedona START/COMPLETION: Oct. 2019/July 2020

76 | March-April 2021

flavorful selection of fine steaks and fish for guests, who enjoy a dining room that features luxurious leather booths or chairs with butcher block tables. OWNER: Creation GENERAL CONTRACTOR: LGE Design Build PROJECT MANAGER: LGE Design Build

ARCHITECT: LGE Design Group SUBCONTRACTORS: Reeves Paperhanging;

Interior Concepts; Sonora Drywall; Carlson Glass; Pinnacle Plumbing Contractors VALUE: $2 million SIZE: 7,048 SF LOCATION: 17797 N. Scottsdale Rd., Scottsdale START/COMPLETION: Q1 2019/Q1 2020

Congratulations on your 2021 RED Award Nomination!

“GLHN is imaginative, artistic, insightful, resourceful, and inspired. They are fun to work with and understand the importance of making a creative design work within budget.” Susan Byram, Plaza Companies

SENIOR LIVING Acoya Scottsdale at Troon Acoya Troon offers contemporary interior finishes designed by award-winning Thoma-Holec Design, underground parking and numerous amenities. The garden level includes a music room, salon and spa, theatre and fitness room, while the first floor provides residents with a bistro, a great room, formal and private dining options, art therapy and a library. OWNERSHIP: Cadence Living, Ryan Companies US, Starwood Capital Group DEVELOPER: Ryan Companies US GENERAL CONTRACTORS: Ryan Companies US PROJECT MANAGER: Ryan Companies US ARCHITECT: Ryan A+E SUBCONTRACTORS: Thoma-Holec Design; Red Oak Plumbing; Western Underground; Hilty’s Electrical Contracting; Integrated Masonry; Breinholt Demolition SIZE: 206,614 SF LOCATION: 14055 E. Pinnacle Peak Way, Scottsdale START/COMPLETION: Nov. 2018/Sept. 2020

American Groves Senior Living The project’s design, inspired by the agrarian nature of Gilbert, provides an inviting and comfortable venue for the operator’s Age in Place concept. The amenity program is strategically located at the cardinal points throughout the project to allow for equitable resident access. Amenities include dining and living rooms, a library, an art studio, a chapel/theater, a physical therapy center, a spa, a salon and lounge areas, among others. OWNER: American Care Concepts GENERAL CONTRACTOR: Layton Construction ARCHITECT: Allen + Philp Partners SUBCONTRACTORS: Bold Framing; Integrity Electric; Design Drywall West; Tekstar; Roofing Southwest VALUE: $23 million SIZE: 107,138 SF LOCATION: 941 E. Elliot Rd., Gilbert START/COMPLETION: June 2019/ Dec. 2020

78 | March-April 2021

SENIOR LIVING Mirabella at ASU Mirabella at ASU is the first senior living community of its type in Arizona. It provides a unique environment that encourages alumni, their families and the general public across Arizona to join with the university community and partake in experiences similar to those from their college years. Opportunities are in place for residents and students to learn and grow from communal interaction with one another, facilitating open lines of communication and allowing learning to progress in both directions. OWNER: Pacific Retirement Services DEVELOPER: Mirabella at ASU GENERAL CONTRACTOR: McCarthy Building Companies PROJECT MANAGER: McCarthy Building Companies ARCHITECT: Ankrom Moisan SUBCONTRACTORS: Delta Diversified Electric; E&K of Arizona; KT Fabrication; Imcor Mechanical; Isec VALUE: $167.1 million SIZE: 613,992 SF LOCATION: 65 E. University Dr., Tempe START/COMPLETION: May 2018/ Dec. 2020

Splendido Villas Phase 3 In addition to a variety of amenities, Splendido Villas feature open floor plans and high-end finishes, including stone facades, quartz countertops, custom oak entry doors, KitchenAid appliances and easy-tomaintain tile. Each unit has an individually controlled AC unit and a 24-hour emergency call system to ensure peace of mind for its tenants. Residents can select homes ranging in size from 1,450 square feet to 2,700 square feet. OWNER: Tucson Mather Plaza DEVELOPERS: The Plaza Companies; Mather LifeWays GENERAL CONTRACTOR: W.E. O’Neil Construction Co. of Arizona PROJECT MANAGER: W.E. O’Neil Construction Co. of Arizona ARCHITECT: Solomon Cordwell Buenz & Associates SUBCONTRACTORS: Diversified Interiors of El Paso; Blanco Concrete; R.G. & Sons Plumbing; Millwork by Design; Conway Tile Company. BROKERAGE FIRMS: The Plaza Companies; Mather LifeWays VALUE: $33 million SIZE: 108,620 SF LOCATION: 13500 N. Rancho Vistoso Blvd., Oro Valley START/COMPLETION: Oct. 2018/Nov. 2020 80 | March-April 2021

AWARD OF MERIT Catalina Parking Structure At 10-stories-tall, the 2,005-space Catalina Parking Structure is the tallest parking garage in Arizona. One of several buildings encompassing the Park Central Mall redevelopment in Central Phoenix, the unique public/ private development serves a variety of commercial businesses and healthcare institutions. The most complex aspect of erecting a parking garage of this size is the bracing of the structure during its assembly. The impressive building was topped-out in just 75 days from the commencement of construction. (Photos by Samuel Carl) OWNER: The Plaza Companies DEVELOPER: Holualoa Companies GENERAL CONTRACTOR: Kitchell ARCHITECT: GLHN Architects SUBCONTRACTORS: Coreslab Structures, Hawkeye Electric; Irontree Construction VALUE: $29.6 million SIZE: 551,750 SF (2,005 spaces) LOCATION: 105 W. Catalina Dr., Phoenix START/COMPLETION: May 2019/Sept. 2020

82 | March-April 2021

BUILD THE FUTURE RESTORE THE PAST SUSTAINABLE HVAC CONTRACTING SINCE 1972

HACI Mechanical Contractors, Inc. | 2108 West Shangri La Rd., Phoenix, AZ 85029 | 602.944.1555 | hacimechanical.com ROC 104397 | ROC 104171 | ROC 104170 | ROC 104169 | ROC 104172 | ROC 257478 | ROC 247905

AWARD OF MERIT

Heidi’s Village Heidi’s Village is an animal welfare organization that partners with existing animal shelters and rescue organizations to provide temporary boarding for dogs and cats when their space and resources are limited. Medical intervention, grooming, behavioral modification and wellness services are offered on-site. Its mission is to foster a community where animals are treated with respect, dignity and compassion to decrease the number of animals abandoned and euthanized.

84 | March-April 2021

OWNER: Virginia B. Jontes Foundation GENERAL CONTRACTOR: CHASSE Building Team PROJECT MANAGER: CHASSE Building Team ARCHITECT: Cawley Architects SUBCONTRACTORS: LR Cowan Concrete;

Hobbs Masonry; Cutting Edge Steel; Pete King Construction; A-1 Fire Sprinklers; Foursite; Iconic Design; Caruso Turley Scott Structural Engineers; Mechanical Designs; Hawkins Design Group VALUE: $22 million SIZE: 49,000 SF LOCATION: 600 N. 40th St., Phoenix START/COMPLETION: April 2019/April 2020

Versatile and Strategically Built

Prologis is continually meeting the needs of the market. Our Industrial space includes distribution centers near ports, highway junctions or rail freight terminals for large shipments, as well as logistics spaces in infill locations, situated near population centers for same-day and next-day delivery.

GREENFIELD WRP PHASE 3 EXPANSION

PAT TILLMAN MIDDLE SCHOOL

CONGRATULATIONS TO OUR GREAT PARTNERS! Together, we achieve excellence through collaboration.

MIRABELLA AT ASU

HONORHEALTH SONORAN MEDICAL CENTER 85

AWARD OF MERIT Phoenix Suns Verizon 5G Performance Center This project is the forward-thinking catalyst that is spurring the revitalization of one of Phoenix’s most prominent sites, the northwest corner of 44th Street and Camelback. It is the start of what will soon become a beacon for tourism, retail, restaurants and businesses. The bright future for the surrounding development is enhanced only by the athletes who will call the 5G Performance Center home. OWNER: Suns Legacy Partners DEVELOPER: Suns Legacy Partners GENERAL CONTRACTOR: AECOM / Hunt ARCHITECT: DFDG Architecture SUBCONTRACTORS: Suntec Concrete; Bell Steel; HACI Mechanical; Wilson Electric; Walters & Wolf; Wood Patel & Associates; Henderson Engineers; PK & Associates; ZGF; SmithGroup VALUE: $45 million SIZE: 55,812 SF LOCATION: 5110 N. 44th St., Phoenix START/COMPLETION: Oct. 2019/Nov. 2020

86 | March-April 2021

DoorDash Regional Office at Papago Center Park

Hayden Library Reinvention at Arizona State University

Thank you to our clients for trusting us as your partner and to build your most important projects.

www.holderconstruction.com

Congratulations to Premier Multi Family at Eastmark on being selected as a finalist for the 2021 RED Awards!

Phone: 602-508-3716 Member

FDIC

88 | March-April 2021

AZRE March/April 2021

Articles inside

RED Awards

West Valley Update

Big Deals

After Hours

Executive Profile

Legislative Update

Hospitality

New to Market

Trendsetters