AZRE magazine March/April 2016 by AZ Big Media

MARCH-APRIL 2016

THE BEST OF 2016 Red Awards honor the most innovative and creative projects, developers, architects, contractors and brokers

Let the adventures begin

rab your favorite beverage and find a comfortable chair, because we have a lot to cover in the March/April issue of AZRE. This spring marks the 11th year of the RED Awards. If you’re not familiar with RED, think of it as the Academy Awards of commercial real estate — with better content and less controversy. If you are familiar, you won’t be disappointed, as 2016 presents another year full of noteworthy projects and talent, not to mention much, much more. In addition to our RED section, you’ll get the latest updates in West Valley and Indian Country development — can we say, “Hello, infrastructure expansion?” Readers will also have a chance to become familiarized with a company who has thrived on positive workplace culture and philanthropy for 35 years in the Valley — Commercial Properties, Inc. The story I was most excited to write this month was directly linked to feedback from our readership. In the spirit of delivering the news that matters the most to the industry, we're covering Arizona’s skilled labor dilemma and taking a look at how we arrived at a place with a dwindled construction workforce and what actions can be imparted toward potential solutions. Going forward, I’m on a mission to bring similar content to the pages — subject matter that’s close to your hearts and hits to the core of timely issues vital to Arizona’s commercial landscape. Since I promised (mostly to myself) not to make a Star Wars reference in this issue, I’ll close with a Hobbit quote from Gandalf instead: “I am looking for someone to share in an adventure.” May this issue inspire your next CRE adventure!

President and CEO: Michael Atkinson Publisher: Cheryl Green Vice president of operations: Audrey Webb EDITORIAL Editor in chief: Michael Gossie Associate editor: Erin Davis Contributing writers: Joyce Grossman | Tim Lawless Deb Sydenham Interns: Kaia Evans | Samantha Pouls | Gianna Tracey AZRE | ARIZONA COMMERCIAL REAL ESTATE Director of sales: Jeff Craig ART Art director: Mike Mertes Graphic designer: Anita Richey Intern: Michael Bodnar DIGITAL MEDIA Digital editor: Jesse Millard MARKETING/EVENTS Marketing & event manager: Heidi Maxwell Marketing coordinator: Kristina Venegas OFFICE Special projects manager: Sara Fregapane Executive assistant: Mayra Rivera Database solutions manager: Cindy Johnson AZ BUSINESS MAGAZINE Senior account manager: David Harken Account managers: Ann McSherry | Bailey Young AZ BUSINESS LEADERS Director of sales: Sheri Brown RANKING ARIZONA Director of sales: Sheri King

Erin Davis Associate editor, AZRE erin.davis@azbigmedia.com

EXPERIENCE ARIZONA | PLAY BALL Director of sales: Joe Freedman

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. ©2016 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.

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CONTENTS

FEATURES 2 Editorâ&#x20AC;&#x2122;s Letter 6 AZRE Source 10 Project News 14 Big Deals 18 After Hours

20 Legislative Update

24 Labor & Construction

28 West Valley Update 36 Institute of Real Estate Management

40 Construction in Indian Country

47 RED Awards

74 CoreNet

81 Commercial Properties Inc.

On the Cover:

Lew Wolff Training Complex

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

AZRE SOURCE

THE MARRIOTT MOUNTAIN SHADOW RESORT, PARADISE VALLEY With construction underway, the Marriott Mountain Shadow Resort follows a luxury-boutique model that Westroc Hospitality is known for. The property will consist of a combination of 180 guest rooms and 32 hotel-condo units. Golf, a specialized fitness center and neighboring retail are some of what this mixed-use project will offer.

HOTEL VALLEY HO This hybrid of hotel-meets-resort accomodation blends the best of vintage, while offering an urban and polished feel. Guests will enjoy a spa, Sunday brunch and poolside relaxation, not to mention the option to hit up one of its many scheduled events.

HILTON SCOTTSDALE RESORT & VILLAS With a Spring Training menu on their newly re-launched BluFire Grille--complete with traditional ballpark hot dog--the Hilton Scottsdale Resort has also boosted their technological offerings to guests, while refreshing furnishings to an overall modern feel. 6 | March-April 2016

Welcome to Boutique 2.O By ERIN DAVIS

f you Google “boutique hotel,” you’ll get, "a small stylish hotel, typically one situated in a fashionable urban location." If you get in a car and drive around Metro Phoenix, you’ll find small stylish hotels in urban locations. Don’t let Google fool you, though:the face of boutique accommodations is changing. Chains and large properties are catching on to the needs of a new demographic of travelers. Welcome to Boutique 2.0 — hospitality that comes in all shapes and sizes, but is specifically designed for those seeking luxurious lobbies, technical functionality and impeccable service. “Boutique-style hotels are reviving a more local and distinct feeling in the market,” says Michelle Davis, general manager of the newly renovated Hilton Garden Inn in downtown Phoenix. CSM Corporation began renovation of the two-decade-old building in January. The objective: to apply distinctive design

with the clear intention of maintaining historical integrity, while simultaneously complimenting the architecture of surrounding buildings. “When we went through the design process, we knew the hotel would be a focal point,” explains Scott Peterson, CSM director of development. “From the paint to the textiles, to reclaiming the original floor, we made sure to keep the integrity of the original building design.” According to Davis, boutique travelers are looking not only for a unique experience, but an authentic and memorable one. For many, this translates to the significance of individualistic and expressive qualities. Distinction, according to The Camby General Manager Greg Miller, is equal in importance to the expectation of luxury service. “The Camby has undergone a massive renovation to create unique spaces that cause guests to do a double take when

THE SCOTTSDALE RESORT AT MCCORMICK RANCH, SCOTTSDALE This recently renovated property includes the new Kitchen West Restaurant, a cocktail bar and poolside bar and grill, and onsite spa. Many of the rooms offer a tranquil view, and two suites have a billiard table and comfortable seating area.

L'AUBERGE DE SEDONA, SEDONA ABOVE: Days Inn Scottsdale

they see the art or design of the public spaces and guest rooms,” Miller says. The Hilton Garden Inn, for example, stands as a reflection of old-school grandeur with an impressive 24-foot ceiling in the lobby, and Art Deco design. Alternately, seasoned properties such as Days Inn, Scottsdale, has added characteristic components, like locally commissioned art featuring rock stars Janis Joplin, Jerry Garcia, Jimmy Hendrix and Jim Morrison as part of its recent renovation. In addition to distinction, the boutique hotel seeks to to satisfy what Bob Rauch, the founder and CEO of RAR Hospitality, refers to as the “party of one.” “The boutique model is driven by the millennial-mindset traveler,” Rauch says, “who usually has three or more (electronic) devices and hangs out in the lobby alone.” Boutique lobbies, like the Radisson Phoenix North’s, accommodate this singleperson party by offering comfortable

seating, ample table space, access to Wi-Fi, multiple electric outlets and impeccable food, beverage and overall service — all of which Rauch stresses are musts for catering to boutique patrons. To satisfy the expectations for outof-the-box amenities, accommodations like The Camby have onsite offerings like pool-side yoga and a rooftop bar. The Days Inn Scottsdale has Papi Chulo’s Mexican Grill and Cantina, Stand Up Scottsdale and one of the largest oversized pools in the Valley. Will the Valley continue to see growth in the boutique/luxury market? According to experts, yes. “Phoenix is the top market in hotels right now,” Rauch says. Miller adds, “Today’s traveler — especially younger travelers, don’t want to stay in a ‘typical’ branded hotel. They want to stay somewhere that has some character and is indicative of ‘the place’ they are visiting.”

Boutique travelers are bound to appreciate the newly renovated Creekside restaurants of the L'Auberge, not to mention a collection of local artwork in conjunction with the Goldenstein Gallery offering an artist-inresidency program for guests.

LOEWS VENTANA CANYON RESORT, TUCSON This desert-nature retreat is situated to nearby hiking trails and a natural waterfall. Adventurers and travelers can relax at the end of the day at the Lakeside Spa or grab a bite at the Flying V Bar & Grill. 7

AZRE SOURCE

Living Inspiration

By ERIN DAVIS

mpressionist Claude Monet transformed what was once an abandoned space into “Giverny” – a self-contained paradise of gardens and deliberate design that became Monet’s home for more than 40 years, as well as inspiration for much of his work. With the interchangeable lines of art and life imitating one another, why wouldn’t Monet (or anyone for that matter) want to stay decades in such a place? It’s a question architect and developer Jason Boyer, founder of artHAUS, has been eager to answer. As an architect for 20-plus years, Boyer found himself at a crossroads during the recession at the close of 2011. “I had two choices,” Boyer explains, “I could either accept a job out of state, or stick it out.” Having already relocated from Chicago to attend ASU and then establishing a life and family in Phoenix, Boyer decided to stay put. It wasn’t long after he made the decision to stay that the concept of artHAUS was born. “I wanted to do something with architecture that complimented the surrounding area and culture,” Boyer explains. “It’s not simply about a home sitting in the arts district; it’s about someone making an intentional choice about where they live, in line with other life goals.” A proponent of the “Art of Living,” Boyer wanted to marry the intentionalliving evolution he witnessed from a new age of home buyers with the concept of amenity utilization in a ready-made area like midtown — packed with museums, restaurants, studios and locally owned businesses. His want turned into reality in artHAUS, comprised of 25 urban one-, two- and three- level townhomes ranging from 560 to 1,800 square feet. Don Keuth, president of the Phoenix Community Alliance, introduced Boyer to the project’s location on North First Avenue. The property was a remnant parcel from the relocation of the Arizona Opera.

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Jason Boyer The site was a perfect incubator for realizing Boyer’s three goals in the development of artHAUS: 1) A great location — a mere five-minute walk to the light rail and local amenities; 2) Intentional design and architecture to compliment the surrounding area; and 3) Sustainability through design, ultimately leading to an attainable price point. Boyer’s three initiatives have already attracted several future tenants including Christen Castellano. “As I researched the project, I realized that living at artHAUS would provide me with a living space and local environment that allows me to be fully

committed to the things that matter most,” Castellano says. “artHAUS provides me the opportunity to be balanced and happy both personally and professionally, while at the same time to be fully immersed in my community; and after all, the ability to connect and create one’s life on those three levels is 'The Art of Living.'” Construction of artHAUS is set to wrap up in May, 2016.

PROJECT NEWS

KINDRED COMPLETED

HIGH-END LIVING The $47 million ENVY Residences condominium tower in Old Town Scottsdale, near Scottsdale and Camelback Roads is on track to open in late spring. Developed by Deco Communities, the residential project will bring 89 high-end residences to the heart of Scottsdale’s arts, entertainment and nightlife mecca. The building will celebrate its grand opening and welcome residents in late May 2016. “The completion of ENVY is a landmark event for the city of Scottsdale and this area of Old Town Scottsdale,” said Rob Lyles, senior partner with Deco Communities. “This year, dozens of homeowners will move into the building, infusing the crucial element of high end residential into the area,” he said.

HEALTHY PROJECT Irgens announced development completion of shell and core construction for Harbor Vista Medical Commons, the new Cigna Medical Group Sun City Multi-Specialty Center at 9069 W. Thunderbird Ave. The 60,000-squarefoot, build-to-suit facility will offer healthcare delivery services to Cigna Medical Group patients. Scheduled to open for patients in October, project development is meeting Cigna’s schedule and budget requirements.

The Weitz Company completed the newest Kindred Transitional Care Center located near 19th and Van Buren Streets, making it Kindred’s third transitional center in the Valley. Kindred is a 120 bed post-acute care facility focused on patient rehabilitation. Selected as the design-builder, The Weitz Company teamed with BDP, SmithGroupJJR, TD Industries and Wilson Electric.

LANDMARK DEVELOPMENT The Scottsdale AutoShow at Salt River will cover nearly 70 acres on Salt River Pima-Maricopa Indian Community, east of Scottsdale and along the western border off the 101 Pima Freeway. This will be the first master planned auto park in the last six years to be built in the United States and the first master planned auto park on tribal land.

BILTMORE ADDITION

MAKING A SPLASH OdySea Aquarium remains on track for a summer grand opening after a “topping out” took place place in February. This new construction milestone marks the conclusion of steelwork to the top of the facility which included installation of 2 million pounds of steel and 1,198 beams for the 200,000-square-foot, three-story facility. “This is truly an engineering marvel and a major accomplishment,” said Founder Amram Knishinsky. “We are now ramping up our team that will actively manage the aquarium as we rapidly progress on this highly innovative project.” 10 | March-April 2016

Rosedale Residences, developed by Scottsdale-based Catclar Investments broke ground in February on 27 tri-level townhomes, with the first occupancy available Summer 2016. “Designed by internationally-acclaimed architect Bing Hu, Rosedale is a unique and exclusive gated community that will appeal to urban professionals, baby boomers, eco-conscious buyers and jet setters who want the convenience of a lock and leave lifestyle,” said Irene Clary, CEO of Catclar Investments, the developer of Rosedale Residences. The debut of the Rosedale Residences will usher in an entirely new district for the iconic Phoenix neighborhood. The Rosedale District includes the lushly landscaped neighborhood from 28th Street to the west, 26th Street to the east, and Campbell to the north and Turney to the south.

GROUNDBREAKING ROCKS LGE Design Build broke ground on the new Dierks Bentley’s Whiskey Row in downtown Gilbert, which will be designed to connect with the town’s agricultural roots. The 8,000-squarefoot restaurant is expected to be complete in November/December 2016. The restaurant features a 8,000-squarefoot patio, a large dance floor for country line dancing, outdoor area for games such as cornhole and ping pong and large interior space to host birthday and bachelorette parties. The entry and large exterior windows will face Gilbert Road, fostering connectivity to the lively downtown atmosphere.

BROKERS FOR KIDS

2016 Brokers For Kids By GIANNA TRACEY

very year, Brokers for Kids brings together real estate teams across the Valley to help raise money for at-risk children. These real estate teams compete all year, then meet up for an Olympiad to square off for the championship to top off their fundraising event for the year. At the Olympiad, the teams compete in basketball, giant Jenga, bocce ball, a quarterback challenge and more. For each game, teams can donate money to better their score. The top teams then compete in the championship and the winning team is awarded with the coveted Broker’s Cup. There is a captain position within the teams, which gives the brokers a different point of view on how the funds being raised are going to be used. “We are able to interact with some of the kids in the community who will benefit from this event,” says Trevor Pratt, who has participated for two years and is the captain of the JLL team. Pratt also mentioned that the captains have a special opportunity to hear directly from the children about where they come from and how the fundraising has personally benefited them. Kyle Campbell, who has participated in Brokers for Kids for three years, is

Kyle Campbell 12 | March-April 2016

Trevor Pratt

Life-size Jenga coming again to this year’s April 8th Brokers for Kids event at Scottsdale Stadium.

the captain for Colliers’ team. “It’s a great event and a great charity that we are raising money for,” Campbell says. All the money raised in this year’s event is donated to the charity, Boys Hope Girls Hope, an organization that helps children prepare for college, a career and life. Children are eligible to join Boys Hope Girls Hope during middle school and gain support all the way through college to the completion of their degree. Of the children at Boys Hope Girls Hope, 100 percent have graduated from high school and 95 percent have gone to college, according to the Scottsdale 20-30 website, this year’s host of the

Brokers for Kids event. The donations for Brokers for Kids range from $1 to $20,000. Last year, the event raised more than $349,000. There is also a raffle giveaway at the event, where people can win either a new Toyota or $15,000 in cash. This event not only allows brokers to help raise money for children in need, but it also allows them to get involved with the community. “It has us making phone calls to local restaurants and businesses and puts us in contact with other individuals who care about the community,” Pratt says. This year’s Olympiad for the real estate teams will be at Scottsdale Stadium on April 8, starting at 11 a.m.

Branding forward By ERIN DAVIS

fter 29 years, Sperry Van Ness might have a new look and a new name, but the company’s dedication to openness, transparency and collaboration remains steadfast. SVN | Desert Commercial Advisors Designated Broker Perry Laufenberg, who closed approximately $60 million in transactions in the fourth quarter of 2015, discusses how the company’s rebranding will push SVN to the next level in 2016.

AZRE: What are you most looking forward to in the rebranding of SVN? PL: With SVN’s continued growth, both nationally and internationally, it was important to have a brand that was instantly recognizable around the world. The new branding is sharp and powerful. It’s also an opportunity to drive conversations about who SVN is. Each SVN office is built upon 10 core covenants, the most important 14 | March-April 2016

of which, is putting the clients’ needs above our own by practicing proactive cooperation within the entire brokerage community. The SVN brand is already one of the industry’s most recognized names based on the annual Lipsey Top Brand Survey, serving over 500 markets.

AZRE: How will the rebranding translate locally, specifically in the Phoenix office and in 2016? PL: The timing of the rebrand coincides nicely with the opening of SVN | Desert Commercial Advisors as the largest SVN franchise in Arizona. As our parent company is rapidly expanding domestically and internationally, we too have our sights set on growing our office by adding motivated and driven industry professionals to our team of brokers. We are very excited to have added a sales manager to our roster in the

PHOTO BY MIKE MERTES, AZ BIG MEDIA

first quarter of 2016 in order to help recruit and train newer agents to be successful commercial real estate brokers, and provide our existing agents with additional support and guidance in growing their own business to new heights.

AZRE: How long have you been with SVN and what makes your brokerage unique? PL: I have spent over 10 years of my career with SVN and the culture of collaboration is very unique in this industry. Our office has a family atmosphere that makes coming to work enjoyable. AZRE: What else should people know about SVN? PL: As a locally owned and operated office with a global brand and marketing platform, I feel like we are in a good position in the marketplace today with so much consolidation happening around us.

It’s the big deals and the brokers who make them, that make the market an interesting one to watch. Here are the Top 5 notable sales from Dec. 1, 2015 to Jan. 1, 2016. Source: Cushman & Wakefield research department, Colliers International and Costar.

INDUSTRIAL/SALES

OFFICE/SALES

1. SHUTTERFLY, TEMPE 237,000 SF; $43,100,000 BUYER: Watumull Enterprises Ltd. SELLER: Northwood Investors LLC LISTING BROKERAGE: JLL

1. ESPLANADE I, II, IV & V, PHOENIX 978,495 SF; $279,000,000 BUYER: LBA Realty SELLER: MetLife, Inc. LISTING BROKERAGE: Eastdil Secured, LLC

2. 243040 N. 11TH AVE. & 21430 N. 15TH LANE, PHOENIX 340,646 SF; $37,983,144 BUYER: Industrial Property Trust SELLER: Lincoln Property Company LISTING BROKERAGE: CBRE

2. ARIZONA CENTER, PHOENIX 782,315 SF; $100,354,023 BUYER: Parallel Capital Parnters, Inc. SELLER: Equity Commonwealth LISTING BROKERAGE: Eastdil Secured, LLC & Cushman & Wakefield

3. LINCOLN COMMERCE PARK PHASE II, PHOENIX 336,665 SF; $36,450,000 BUYER: Colony Capital, Inc. SELLER: Cornerstone Real Estate Advisers, LLC LISTING BROKERAGE: Lee & Associates

3. RAINTREE CORPORATE CENTER, SCOTTSDALE 299,075 SF; $51,974,000 BUYER: ViaWest Properties LLC SELLER: SW Capital Asset Management LLC Listing Brokerage: Mission Capital Advisors LLC

4. 4 S. 84TH AVE., TOLLESON 236,007 SF; $18,000,000 BUYER: Colony Capital, Inc. SELLER: Equity Commonwealth

4. SCOTTSDALE CITY CENTRE, SCOTTSDALE 67,691 SF; $22,186,905 BUYER: Triyar Companies, LLC SELLER: Simms Development Co. LISTING BROKERAGE: CBRE

5. ROOSEVELT BUSINESS PARK, PHOENIX 222,335 SF; $14,900,000 BUYER: WLA Investments, Inc. SELLER: Pearlman Properties LISTING BROKERAGE: Cushman & Wakefield

5. LUHRS BUILDINGS, PHOENIX 158,500 SF; $19,813,753 BUYER: Lincoln Property Company SELLER: Hansji Corporation LISTING BROKERAGE: Newmark Grubb Knight Frank

LAND/SALES

MULTIFAMILY/SALES

RETAIL/SALES

1. SAN MELIA APARTMENT HOMES 493,192 SF; $84,000,000 BUYER: GE Asset Management SELLER: AIMCO LISTING BROKERAGE: Colliers International, Phoenix

1. SW 56TH ST. & LINCOLN DR., PARADISE VALLEY 10.29 AC; $39,750,000 BUYER: The New Home Company SELLER: Crown Realty & Development, Inc. 2. CANYON CROSSROADS, NW DOVE VALLEY RD. & N. VALLEY PKWY., PHOENIX 43.10 AC; $16,965,000 BUYER: W.L. Gore & Associates, Inc. SELLER: Beckham Gumbin Ventures, LLC 3. SWC MCQUEEN & WARNER, CHANDLER 6.89 AC; $14,450,000 BUYER: Legacy Traditional Charter School SELLER: Wal-Mart Stores, Inc. LISTING BROKERAGE: Frontera Development, Inc. 4. SAN TAN SHADOWS, S.E. HUNT HWY. & EMPIRE BLVD., QUEEN CREEK 205 AC; $14,000,000 BUYER: Fulton Homes Corporation SELLER: The Wolff Company 5. NE LITCHFIELD RD. & YEARLING RD., SURPRISE 65.83 AC; $12,109,500 BUYER: D.R. Horton Inc. SELLER: Dolphin Partners, Inc.

2. BROADSTONE LINCOLN, SCOTTSDALE 221,000 SF; $79,000,000 BUYER: The Praedium Group SELLER: Alliance Residential Company 3. MARQUIS AT DESERT RIDGE, PHOENIX 360,000 SF; $77,500,000 BUYER: CWS Capital Partners LLC SELLER: Grevstar Investment Group, LLC LISTING BROKERAGE: Berkadia

1. SCOTTSDALE 101, PHOENIX 563,878 SF; $81,000,000 BUYER: YAM Properties SELLER: AEW Capital Management 2. EAST THUNDERBIRD SQUARE, SCOTTSDALE 123,188 SF; $28,788,092 BUYER: West Valley Properties, Inc. SELLER: Starwood Capital Operations, LLC LISTING BROKERAGE: CBRE

4. COUNTRY BROOK, CHANDLER 381,333 SF; $64,500,000 BUYER: Standard Portfolios Asset Management Co. SELLER: The Bascom Group LISTING BROKERAGE: Colliers International

3. THE SHOPPES AT BUCKEYE MARKETPLACE, BUCKEYE 45,257 SF; $16,450,000 BUYER: Lynn Morrison, LLC SELLER: The Aspen Group

5. LUXE SCOTTSDALE, SCOTTSDALE 220,000 SF; $52,525,000 BUYER: PASSCO Companies, LLC SELLER: Wood Partners LISTING BROKERAGE: CBRE

4. LAGUNA VILLAGE, CHANDLER 130,915 SF; $14,750,000 BUYER: Cole Valley Partners SELLER: Auerbach Commercial Realty Corp. LISTING BROKERAGE: ESCEE Commercial Properties 5. DEER VALLEY CENTER, PHOENIX 128,569 SF; $14,226,145 BUYER: Warren Kellogg & Associates SELLER: Henry G. Winans, Jr. LISTING BROKERAGE: Bernstein Murphy Co.

PHOTO PROVIDED BY MARK TAYLOR

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AFTER HOURS

Know thyself By ERIN DAVIS

here are most likely a lot of surprises in the lives of commercial real estate executives with 30 years in the business. But there are some surprises that are more unexplained than others. “It may surprise many people that I am a co-founder of Great Hearts Academies,” says Bob Mulhern, managing director of Colliers International in Greater Phoenix. “It’s an Arizona charter management organization which has developed 18 Valley charter schools and has an enrollment of over 10,000 students ... and we have more than 11,000 students on our waiting lists.” Why would a commercial real estate professional, without experience in the educational field want to develop a new school? It’s a question that Mulhern has been asked more than once. The question (which we’ll come back to)

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derives from the fact that Mulhern is well known for markedly high success in commercial real estate throughout the Valley — not as an educator. Not only does Mulhern currently manage the brokerage operations of two offices located in Phoenix and Scottsdale, he’s responsible for managing more than 10 million square feet of commercial inventory. Mulhern’s passion and drive in his chosen field is deep rooted. “I was the eighth of 12 children and I wanted to grow up and be just like my dad,” Mulhern says. “He married a wonderful woman, had a bunch of kids and made a career in real estate — homebuilding, in his case. I have a wonderful wife of 27 years, we have nine beautiful children together and I have embraced commercial real estate as my profession.” Mulhern’s success may also be

PHOTO BY MIKE MERTES, AZ BIG MEDIA

attributed to 2,000-year old advice from non other than Socrates: “Know thyself.” “We all want to be happy and successful in our careers, so it follows that we should identify what we enjoy doing and are uniquely qualified to accomplish and spend as much time doing these things as possible,” Mulhern says. Admittedly, Mulhern does face a challenge in balancing all the things he enjoys. Somehow he still finds a way to maintain endurance in dedication to his career, family, faith and health. And, to help answer the question posed earlier, he even has time to help establish a new charter school — despite not having a background in education. When asked what prompted his decision to become a co-founder of Great Hearts, Mulhern’s response: “I have a lot of children to educate!” Thankfully, with his development background, Mulhern didn’t need an educational foundation, but rather others who did, to create an ideal team to see Great Hearts from inception to completion.

LEGISLATIVE UPDATE

Tim Lawless

NAIOP Arizona

ARIZONA WANTS YOU

ov. Doug Ducey, in his recent State of the State address, lauded the 56,000 new jobs and 100,000 new citizens coming to Arizona within the last year. A key punch line was, “And I would be remiss if I didn’t stop to thank my partner in growing Arizona’s economy: California Gov. Jerry Brown.” The reason for the line was directed toward California’s perceived commitment to a course of higher taxes, more business regulation, and a

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political environment where the public employee unions are bringing local and state government to its knees with un-funded pension obligations, that threaten not only bond ratings, but overall solvency. California has also stigmatized the West as having a water crisis. As the governor pointed out, due to the planning efforts of our forefathers and the 1980 Groundwater Management Act, we are the envy of the nation. His specific line was, “If there is one

thing Arizona is best at -- it’s water.” Having recently visited San Diego and witnessing the water use regulations and the brown lawns that have resulted, we certainly are fortunate despite being in a more arid desert environment. As a result, Arizona is poised to be a beneficiary of future growth. The key is to harvest those leaving the state of California with their capital and businesses to locate here rather than Texas. The main avenue for doing so is the Arizona Commerce Authority (ACA). In the SoS, the governor stated: “Governors compete. States compete. People and businesses decide.” In making those decisions, the governor outlined a vision based on quality of life, low taxes, light regulation, good financing and qualified workers. In advancing this vision, the governor pledged to retool the Arizona Commerce Authority (“ACA 2.0”) with a “renewed focus on marketing and promotion." The governor added, “We have a great state with amazing assets.” The ACA and GPEC have a long list of active, qualified prospects and our recent positive national exposure for the national collegiate football championship bowl game, where the governor hosted a number of prominent CEOs, bodes well for continued high-wage job creation. As the governor summarized: “California may not want you, but Arizona does.” Thank you, Jerry Brown. Tim Lawless is the president and CEO of NAIOP Arizona.

LEGISLATIVE UPDATE Emerging Trends:

18-Hour Cities and Suburbs

n 2015, Emerging Trends identified the rise of the 18-hour city. This year, the real estate industry is expressing growing confidence in the potential investment returns in these markets. We are finding a tangible desire to place a rising share of investment capital in attractive markets outside the 24-hour gateway cities.

HURF revenue in need of revamp

n Jan. 19, 2016, the Arizona Association for Economic Development joined 40 other organizations in writing to Governor Ducey and the State Legislators urging the stoppage of transfers of Highway User Revenue Funds (HURF) to pay for other governmental programs. (The correspondence coordinated by the Rural Transportation Advocacy Council may be viewed in its entirety at: www. aaed.com/?Legislative_Policy.)

Joyce Grossman AAED

The state of Arizona taxes individuals on motor fuels, collecting fees and charges for the registration and operation of motor vehicles on the state’s public highways. The funds generated are known as HURF. These taxes have been the primary dedicated source of funds to maintain, improve or construct our highways. Yet, in 2015, an estimated $141 million was used for programs unrelated to 22 | March-April 2016

infrastructure improvements. The past several budgets have woefully funded our state’s infrastructure needs with a projected funding gap of $63 million, according to ADOT. Economic developers know that if Arizona wants to attract and retain quality businesses, it must maintain its infrastructure. It’s critical that we are able to move commerce through our state efficiently on well-maintained highways. In 2015, 23 states passed legislation supporting transportation investment ranging from one-time revenue boosts to a prohibition on revenues transfers. We need to stay competitive with these states by also reinvesting in Arizona. For every $1 billion invested in Arizona’s infrastructure, we would be creating an estimated 7,100 direct private-sector jobs and another 3,400 indirect jobs, according to the Rural Transportation Advocacy Council. Consider contacting your legislator today to encourage him/her that we use HURF revenue as was intended. Arizona must have the quality infrastructure that will ensure our ability to attract and retain the jobs and wealth generation that will lead to a great quality of life for Arizona. Joyce Grossman is executive director at Arizona Association for Economic Development.

Deb Sydenham ULI

What supports this trend? One component is the inexorable expansion of data availability in generating more confidence that decisions about secondary market opportunities can be grounded in good statistical evidence. The 18-hour cities have been consistently making headway in replicating pieces of what makes gateway cities so attractive. The development and application of technology make it possible for these markets to offer the benefits of a larger urban area at a significantly lower cost. In addition, a number of the markets in the top 20 rankings this year are consistently tagged as “cool” markets that are expanding on their own unique culture – like Phoenix. As for suburban opportunities, as prices rise in the core markets, many are taking a fresh look. The attractive suburbs will be more like the airline hub-and-spoke model. These “diet urban” locations will offer urban and suburban benefits. The critical descriptors seem to be suburbs that are close-in, transit-oriented, and mixed-use. More “suburban downtowns” are densifying and exhibit many of the attributes of an 18-hour city. Many markets, including Phoenix, are experiencing suburban-dominated job growth. Deb Sydenham is the executive director of the ULI Arizona District Council.

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LABOR & CONSTRUCTION

Labor Crisis What will it take to recoup Arizona’s skilled workforce?

f you’ve attended any local 2016 commercial forecast events, the likelihood of bypassing a panel, speaker or conversation dealing with, or related to, construction and skilled labor issues is slim. It’s not a new issue, but it’s a worrisome one that shows few signs of resolution anytime soon. Why, when other areas of the nation show steady signs of improvement, is Arizona’s construction workforce woefully crippled? There are several answers, but none that offer immediate resolve. Hold on to your hard hats — skilled-workforce improvement has a long road ahead.

ENOUGH LABORERS, NOT ENOUGH SKILLED LABOR A national statistic from Associated Builders and Contractors (ABC) states: “Nonresidential building construction employment expanded by 5,100 jobs in December and is up by 9,900 jobs (or 1.4 percent) on a year-over-

24 | March-April 2016

By ERIN DAVIS

year basis. Similarly, the Bureau of Labor Statistics states: “Construction is projected to add 790,400 jobs by 2024." With seemingly positive outlooks, what’s the catalyst for Arizona’s palpable deficit in construction-labor optimism? “The national positive outlooks exist because as the industrial market and the demand for housing and business space go up, there will be an increase in employment opportunity,” explains Fred Ingersoll, director of apprenticeship and training for Arizona Builders Alliance. “The contradiction between the national and local perspectives comes from the reality that even though there’s more opportunity and jobs available, there are not enough workers available to build the supply on any level.” It’s important to note, according to Ingersoll, that not “having enough workers,” doesn’t equate to enough bodies to fill positions. Rather, the

dilemma is that the available workforce is not skilled or trained enough to meet the demand. “There is a differentiation between an employee versus a skilled employee,” explains Bo Calbert, president of McCarthy Building Companies. We know at one time Arizona had a skilled labor workforce — so where did they go? Fingers typically point to the recent recession. However, we shouldn’t be too quick to blame the diminishment of skilled laborers solely on the economic downturn.

COMPOUNDING FRACTURES Mark Stapp, director of ASU’s Master of Real Estate Development program, suggests that when the recession hit Arizona, skilled workers, many with longevity in the workforce, migrated to more productive markets. As a significantly slower state to recover (compared with other larger markets), competition in more prosperous markets only increased. Concurrently, little incentive exists to entice laborers back to the Valley. Simultaneous to Arizona’s mealy economic state: labor issues were compounded by SB1070. “SB1070 had a profound affect on the market,” Stapp says. “Laborers physically left or completely changed the way they made a living.” An NPR article in 2012 stated

Arizona’s illegal immigrant population (according to the Department of Homeland Security) was reduced by 100,000 since 2009 — and that was seven years ago. When this article was published four years ago, a prediction on part of IHS Global Insight claimed Arizona would need 41,000 new construction laborers to satisfy project demand. Many would agree that the prediction’s outcome is clear. Yet, there is another factor impacting the skilled-labor pool — the rapid retirement of Baby Boomers. “There are 70 million-plus Baby Boomers moving toward retirement and there aren’t enough quality people with experience behind them to replace them,” says Todd Govig, CEO of Govig & Associates. “We are about to go into a war for talent unlike we’ve ever seen in this country. It’s not going to be a war for talent, it’s going to be a crisis for talent.”

is primarily comprised of newly emerging high school graduates and the Millennial population. Those groups will potentially be one of the most promising solutions to Arizona’s construction labor issue. The Millennials, along with those whom Ingersoll refers to as the “homelanders” — ages mid 20s to mid 30s — are going to be the prime demographic to target in terms of workforce development. Local economists, developers, contactors and educators agree that Career & Technical Education (CTE) is an invaluable, yet under-implemented

solution in solving Arizona’s construction labor problem. “The CTE program is trying to fill the gap,” Calbert stresses. “We need to educate our kids by the time they get out of high school — and let them know that there are options to train in one of the trades.” “Good news can be found surrounding the buzz in ‘Strategic Planning and Workforce Development,’” explains Rose Ann Canizales, president of the Association of Construction Career Development. “This is the main objective of the ACCD — our mission statement is to ‘promote and support

OUT WITH OLD, PROBLEM WITH THE NEW As cut-and-dry as the skilled labor shortage is, the solution is less so — and complicated. “We don’t honor people who work with their hands,” says J. Doug Pruitt, chairman of Sundt Construction. “We have to educate this group.” The group that Pruitt refers to

LABOR & CONSTRUCTION

TRAINING DAY: Students get hands-on exposure to the

construction industry at Arizona Construction Career Days.

SB1525:

Change of the tide? Gov. Ducey recently signed the senate bill, SB1525, by Senator Don Shooter (R-Yuma), restoring $29 million dollars in state funding for Joint Technical Educational Districts (JTEDs). According to AAED, the House added language saying that restoring JTEDs was “an important priority.” This version, which included the names of the 56 Representatives received a vote of approval from the Senate on February 17th and was promptly signed by Governor Ducey. Could this be a big step in aiding Arizona’s skilled-labor recovery? We’d love to hear your thoughts. Share your comments on our AZ Big Media Facebook page or send them to erin.davis@azbigmedia.com. 26 | March-April 2016

the construction industry through education and employment.’” ACCD targets the group for which experts are hopeful: high school sophomores through seniors. Once a student decides to enter a CTE program, they have the opportunity to attend ACCD’s annual two-day event. With its community partnership with the Arizona National Guard under the leadership of Major General Michael T. McGuire, ACCD exposes a generous number of students (last year there were 1,900 attendees) to contracting exhibitors and various trade apprenticeship programs such as carpenters, pipefitters, masons, pools and spas, in addition to Arizona schools including Gateway Community College, ASU, NAU and more. ACCD celebrates it’s 15th year this November 3rd and 4th. Canizales also points to the Arizona Department of Education’s “Construction and Related Programs

Advisory Council.” The council will serve to represent all the professional groups and agencies within construction in a united effort to support education programs’ success in grades 9-12. “We are introducing students to career opportunities in a unique, hands-on approach to an industry they never considered and to rewarding and challenging careers offered by that industry,” Canizales says. Exposure to construction careers in a positive light is key, according to Ingersoll, who strongly believes that they are not presently viewed as a lucrative or viable option among today’s youth. “The construction industry, by most, is still looked at as a secondary career path,” Ingersoll says. “The perception is that construction is a low-class job with uneducated individuals that can’t succeed anywhere else.” This often worldly view, Ingersoll explains, is one that has been proliferated

for sometime. It’s a misnomer that will continue to perpetuate, if support for CTE isn’t increased. “There needs to be a shift in cultural thinking,” Calbert says, “We need to supply 80 percent of graduates with education in the trades.” A daunting task, according to Calbert, considering that last year, the state budget cut CTE programs, totaling close to $30 million. “It’s going to take time to turn around,” he says. Time, experts theorize, is the the Achilles heel to the current outlook for CTE. “Programs like these are in place to expose high school students, counselors, politicians and industry leaders to careers in the construction industry and to be the catalyst for recruiting the next generation of craft professionals,” Ingersoll says. “This creates great opportunities for the emerging 2020 workforce, but we are talking about the jobs and needs of today.”

IMPROVING SKILLED LABOR TODAY So what can be done today? “The challenge is reaching the current workers, ages 25 to 34 years,” Ingersoll says, “that are not in high school and may have never gone to college, but based on 2014 Department of Labor data, do not stay in any job longer than three years.” “A lot of companies are taking this on ourselves by establishing our own apprentice programs,” Calbert says. McCarthy’s apprentice program, Build U, is an individualized training and development program that blends virtual classroom training, instructorled classroom training, action learning, online training and on-the-job training with mentoring and peer-to-peer leadership development. Other Arizona apprenticeship programs can be found through The Arizona Builders Alliance, which offers a Certified Professional Constructor Course, in addition to several other

construction career development avenues. Sundt created The Center for Craft Excellence training center, helping craft employees to attain NCCER Certified Plus status and standard craft training and development. “Shifting to a training and development culture,” Ingersoll says, “allows companies and its employees to embrace new information, different ways of communication, and innovations, while being able to leverage those skills into a pipeline of talent.” While CTE support and increased implementation of training programs for the existing workforce will undoubtedly alleviate some of the pressure to rebuild a skilled labor workforce, it won’t be an overnight process. “It’s going to take time to turn around,” Calbert says. “Greater Phoenix Leadership, the Arizona Chamber and other organizations that fully believe in the repair of this issue is what it will take to move this along.”

MORE ON ARIZONA’S LABOR DILEMMA

Todd Govig, CEO of Govig & Associates: “We are about to go into a war for talent unlike we’ve ever seen in this country. It’s not going to be a war for talent, it’s going to be a crisis for talent.”

Mark Stapp, director of ASU’s Master of Real Estate Development: “When looking into national construction and labor statistics, consider how they might be skewed in relationship to local projects. We need to look at the distribution of labor per project coming into the area.”

Fred Ingersoll, director of apprenticeship & training for Arizona Builders Alliance: “Without enough construction workers, projects will have to be put on hold, causing businesses and homeowners to wait and potentially causing building costs to go up.”

Bo Calbert, president of McCarthy Builders: "35 years ago, the majority of craft people belonged to the union-and the union did the training. Only 11% of the workforce is union, so employers have to develop their own workforce."

Rose Ann Canizales, president of the Association of Construction Career Development: “Predictions for the Arizona and Phoenix labor markets may vary somewhat, but I am confident that the labor market in Arizona will share in the projected nationwide growth.”

J. Doug Pruitt, chairman, Sundt Companies, Inc.: “55-60% of jobs require a diploma or some type of certification; we’ve got to educate this group.”

WEST VALLEY UPDATE

WEST VALLEY RISING By JESSE A. MILLARD

ommunities where folks live, work and play has been the foundation from which the West Valley has grown, but many West Valley residents have been left out of the fun as they spend a large amount of time commuting to the East Valley for work. WESTMARC and its new CEO Sintra Hoffman hope to change that for West Valley residents as WESTMARC gears up to bring more high-paying jobs, and, in turn, more development to the west side of the Valley. With housing permits on the rise, growing populations in Buckeye and Glendale, and plenty of industrial, retail and office space available, the West Valley is turning into a hotbed for activity. This time, experts say, the West Valley is ready. During the fast-moving growth spurt before the economic downturn, many West Valley cities didn’t have much time to prepare for what was next, Hoffman says. But cities took the time during the recession to focus on getting the West Valley ready for development. “Now, we’ve got a lot of transportation infrastructure in place and overall infrastructure in place, where we can step back and plan a little bit better,” Hoffman says. Sintra Hoffman 28 | March-April 2016

WEST VALLEY UPDATE One thing that the West Valley certainly has is space. There are plenty of industrial, office and technology vacancies available along the Loop 101 and 303 corridors, Hoffman says, and now the focus is on filling up those places with businesses. Since the West Valley is so close to California and its two major ports of access, there are many opportunities for distribution and manufacturing. Companies can haul something from California to the West Valley in a single day, without having to push through the downtown congestion of Phoenix, making the West Valley a great place for industrial and manufacturing opportunities. Hoffman explains that there are already major firms such as Amazon (already operating in the West

TOP TO BOTTOM: REI distribution center, Amazon Fulfillment Center.

30 | March-April 2016

Valley) and outdoor equipment retailer REI (planning to build a distribution center in Goodyear), and the next phase of development is attracting additional manufacturing jobs. And as far as office space is concerned, it’s available and open for business in the West Valley. “We’re not closing ourselves off to anything,” she says. “We’re really identifying future uses along the (transportation) corridors, but they’ll all be job related.”

GLENDALE GROWS Before the recession, the West Valley was just beginning to join the development boom that had swept the state, but growth came to a halt after the financial meltdown. “When it comes to development on the west side, it was last to join the party and first to drop off during the recession,” says Mike Trueman, vice president of development at P.B. Bell. Aspera at Joy, a $152 million mixeduse project situated on the corner of

WEST VALLEY UPDATE

CLOCKWISE FROM TOP: Velaire entry, Velaire clubhouse and The Treasure House at the Community Church of Joy.

75th Avenue and Loop 101, is just one major project in the West Valley that has many excited for the area’s growth. The project is taking up one of the last major parcels of land in Glendale north of the loop 101, and includes Banner Health facilities, senior living, commercial retail space and Velaire at Aspera, a 286-unit luxury apartment complex that P.B. Bell is developing. The entire project is expected to add 1,700 new jobs, said Brian Friedman, director of economic development for the City of Glendale. Velaire at Aspera will be open and available for leasing in April, Trueman says, and the area that has been zoned by the Community Church of Joy for years has many excited. “Because of the large amounts 32 | March-April 2016

of space out in the West Valley, the whole area is beginning to pick up,” Trueman adds. According to Trueman, Glendale has a total of 10 miles of frontage along the Loop 303 which can now be developed, creating new opportunities for development that hadn’t originally been possible. Development along the Loop 303 had stopped when it passed through Glendale, but with the new Epcor water, wastewater and reclaimed water plant, the whole region is prime for development, Friedman says.

MEDICAL MILESTONES Healthcare has always been at the center of the West Valley, especially when it comes to employment, and now the sector is continuing to grow.

A medical corridor is starting to emerge in Glendale near the Westgate Entertainment District. Two new projects will be built around St. Joseph’s 23-bed Westgate Medical Center. Rendina began construction on a 62,000-square-foot St. Joseph's Medical Center office building adjacent to the hospital, and SimonMed is developing a 200,000-square-foot healthcare campus just south of the hospital on 99th and Glendale avenues. “Glendale is beginning to balance out the west side of the Loop 101 with new developments,” Friedman says. “In 2000, there weren’t any jobs in the area. Now, 16 years later, there are close to 50,000 jobs and a lot more development in the area.” One of the things Hoffman has

WEST VALLEY UPDATE TOP TO BOTTOM: Rendina-St. Joseph's Medical Office building, Jones Ford, Verrado.

heard when attracting new businesses to the West Valley, has been a lack of Class A office space. “Glendale has a new Class A office building in the works, which is pre-leaseing,” Friedman says. “The 43,000-square-foot, three-story project, Glendale Northwest Office Building, will be located near 83rd Avenue and Loop 101.”

RISING STAR Last year, Buckeye changed from the Town of Buckeye to the City of Buckeye as the area continues to experience serious growth and more development. The Census Bureau named Buckeye as one of the fastest growing places from 2010 to 2013, and housing permits have been on the rise, with many folks moving into masterplanned communities such as Verrado. “Growth in Buckeye has been coming in cycles,” says Len Becker, economic development director at the City of Buckeye. “Buckeye is welcoming its first hotel to the area in 20 years, a 76-room Holiday Inn Express.” The Jones Ford dealership is also relocating to Buckeye and is building a 30,000-square-foot dealership along I-10. And a big-box retail center, Parkview Plaza, is coming to Buckeye, which will be anchored by a 120,000-square-foot Fry’s Food Store. “Buckeye wants to retain as many of its citizens as possible,” Becker says, “and doesn’t want individuals having to drive 10 or 15 minutes outside of the city for groceries or other services.” In recent years, the city has invested $70 million into its water infrastructure as the city prepares for more growth. As the economic recovery continues, the West Valley is ready for expansion. Buckeye alone encompasses 650 square miles of land, and has become just one of the many places of opportunity in the Valley. “We’ve got a huge amount of real estate to cover, and a huge amount of opportunity,” Becker says. 34 | March-April 2016

INSTITUTE OF REAL ESTATE MANAGEMENT

Valley infill gets creative

Old space, new look

ith the real estate market taking a positive turn in investments, buyers and sellers are beginning to think about creating long-term office locations. While the future of the dynamic market is undetermined, tenants know they want to create work-play environments rather than a block of concrete buildings. “Capital is definitely flowing into Phoenix,” says Jami E. Vallelonga, general manager for The Esplanade. “The investment market was very active in 2015 across all commercial property types — from retail to industrial — and 2016 looks like it will continue this trend.” Larry Downey, vice chairman at Cushman & Wakefield, explains that Phoenix is ranked eighth out of the 85 best real estate markets in the country. With the real estate market improving, managers are looking

36 | March-April 2016

By SAMANTHA POULS

toward the future and what the next generation desires. Now that those from the Millennial generation are coming into play, people are demanding a new type of office and retail experience. While executives are looking to embark on new projects, IREM and CBRE members stress that an old building with new renovations and attractions will appeal to tenants. “Base building systems have to be functional to keep tenants safe and comfortable,” Vallelonga says. "With that said, no one wants to lease space at an address where the air conditioning is great but the place has zero curb appeal." Today, an office space is more than simply a location. According to Walter Crutchfield, partner with Vintage Partners, people want to work in an area that is considered an up-andcoming site.

“Much more thought is being given to creating the kinds of places that kick-start demand, including collaborating with visionary restaurateurs when designing space in the first place, and not just building a space and waiting,” Crutchfield says. “It’s a much more organic and collaborative process than the traditional, ‘if you build it, they will come.’” Tenants want a work and play environment, but much more thought goes into the construction of the surrounding area than simply throwing up a few chain restaurants.

CURB AND FUNCTIONALITY APPEAL “You need to take into account how people actually use a space, what services they require and what kind of community people want to build their lives around,” Crutchfield says.

“The investment market was very active in 2015 across all property types — from retail to industrial — and 2016 looks like it will continue this trend.” – Jami E. Vallelonga By creating an environment that is more than a city block of concrete office buildings, tenants create a more competitive investment spectrum while attracting people to the area. “Office users need great work spaces with central locations” Crutchfield says. "Restaurants need cool spaces that create warmth and community, and multifamily users want to live in a place that offers all of the above." While many new restaurants are popping up around industrial and office locations, there is concern about how long these spots will last and continue to add curb appeal. “Obviously you can reach a point of oversaturation," Crutchfield adds, "but I truly believe a rising tide lifts all ships.” Although spaces encompassed by restaurants are attractive to tenants, there is still an obstacle pertaining to larger, vacant, big box office space around 350,000 square feet.

at Cushman & Wakefield. "Many that are available are purchased by multifamily developers who can pay more since they see higher returns on their properties than offices." Beall says investors do not view returns as substantial enough to continue special development office projects. In the investors’ eyes, the issue preventing large returns revolves around the space’s pre-lease agreement. “(Investors) typically want a 20 percent to 50 percent pre-lease commitment, depending on the size of the proposed project,” Beall says. “The larger the project, the larger percent of a pre-lease commitment they want.” Downey says managers are looking to invest in collaborative office space. Liberty Center, at the corner of Priest Drive and Rio Salado Parkway is a Class A, 1-million-square-foot collaborative office space. The center, which is within driving distance from a number of key

locations, offers large floor plans to create individual work environments. Liberty Center abides by U.S Green Building Council certifications and offers LED lighting, open ceilings and an atrium lobby. One of the most appealing elements of the center is the six parking spaces per 1,000 square feet of leased space. “Everyone wants to drive,” Downey says. With the anticipated increase of 60,000 jobs coming to the Phoenix area, executives admit that parking is, and will be, a huge factor in whether tenants decide to lease any type of location. “We are currently trying to lease an area that has a 2-to-1,000-squarefoot parking ratio," says Curt Kremer managing director of EverWest Real Estate Partners. "However, the location is in an urban area and it’s accessible to trains” “If you’re building is cool enough, it doesn’t matter what kind of parking you have,” says Andrew Cheney principal for Lee and Associates. While parking and grocery shopping remain issues that need to be solved, the market is still absorbing 10 to 15 percent of what it was doing pre-recession. “I would allow the Valley an opportunistic perspective,” Cheney says.

GROCERY AND PARKING PERPLEXITIES “We need more big boxes and we need grocery stores to attract tenants,” says Dave Cheatham, president of Velocity Retail Group. Though downtown Phoenix has a few grocery stores, they are outdated and scattered. “In order to have urban grocery stores, you need two-story parking structures,” Cheatham says. "There’s a demand for it, but the city has to work with local law enforcement parameters." Despite a demand for grocery stores, tenants are still filling up office locations. However, there are those who insist that industrial space holds no competition to other forms of real estate. “While infill projects are ‘hot,’ the ability to build infill remains limited with short supply of sites,” says Mike Beall, executive managing director

Mike Beall

Dave Cheatham

Andrew Cheney

Walter Crutchfield

Larry Downey

Curt Kremer

Chris Osborn

Jami E. Vallelonga 37

IREM

MAN By S A

echnology has been integrated throughout the real estate spectrum for some time. It may come as little surprise to learn that property managers in Phoenix are utilizing the very latest and greatest trends in technology to enhance management systems. “The property management job has become much more technical,” says Sue Cannon, LEED green associate and senior vice president of property management at Cushman & Wakefield. “Ownership is often through large institutional companies that have internal accounting and IT systems that are required for property managers to operate — even when the property manager is outsourced.” With technology coming into play, potential tenant screening and risk assessment can be conducted with the click of a button. When the tenant is screened, if he or she does not qualify for a lease, the manager can use a system like RentScreener.com to

38 | March-April 2016

THA P

OU LS

calculate the dollar value of the risk that may result with a particular tenant. “The service we use can report back to us quickly whether the prospect is a ‘green light,’ which means the resident is qualified to rent, a ‘yellow light,’ which means the resident needs to provide an increased security deposit, or a ‘red light,’ which means the resident doesn’t qualify,” says Melanie Morrison, principal of MEB Management services. Yardi, an application dedicated to real estate, is being used to reduce management expenses. Through these types of databases that ensure the tenant has paid all expenses, the vendor can guarantee the tenant is in compliance with the lease agreement Sue Cannon

before purchasing goods and services. By having a program that checks the tenant’s payments automatically, property managers can hire less staff and no longer have to wait multiple days to process payments. “Technology helps us control operating expenses, such as utilities,” Morrison says. “Our company works with intermediaries who provide us with feedback on gas, water and electricity so we can get the information we need more quickly and not have to wait for the bill to see if there is a problem, such as a leak or overuse.” Advances in technology are not only aiding property managers, but they’re helping the tenants as well. “Technology eliminates the middle man,” says Jonathan Keyser, founder of Keyser. Through Keyser’s new application, Keyser Office Space Calculator, tenants can input how many office spaces they need and the application will deliver a summary of the square footage the tenant needs to rent. “Tenants used to wait for weeks to meet with an architect,” Keyser says. "This application puts the power in the hand of the tenant and it takes only five minutes." Not only are tenants able to eliminate the middleman, they’re able to indirectly help property managers by utilizing social media. “Residents have much more to base rental decisions on because of social media,” Morrison says. “We use technology to track how many positive and negative reviews we get. Being able to measure that is an important aspect to ensure residents are happy. When I started out 30 years ago, we were still doing rent rolls by hand. Now that we have better access to data, we can do better for the client.”

Jonathan Keyser

Melanie Morrison

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CONSTRUCTION IN INDIAN COUNTRY

TRIBAL LANDS: ready, set, build By JESSE A. MILLARD

40 | March-April 2016

here are 22 federally recognized Native American tribes, communities and nations within Arizona’s borders, encompassing thousands of acres of protected or preserved land across the state. While some areas may never be available for development because of cultural ties to the tribes, a lot of opportunity for future projects exist. Knowing how to develop on tribal lands, however, has been one thing many developers tend to lack, and that mindset still persists, explains Vince Lujan, president and CEO at Salt River Devco. Developers who have been able to work with the tribes and are familiar with the process have seen success. “Only time will tell, but if more developers were educated about developing on tribal lands and land-leasing,” Lujan says, “then transactions on tribal lands could go up.” One of the critical parts of the process when developing on tribal lands is obtaining a land-lease to develop. Since tribal lands are protected and cannot be sold without congressional approval, developers must obtain a land-lease to work on the land. Lengths for the land-lease depend on the tribe, and sometimes it can be a difficult process. “Once a land-lease is obtained,” Lujan says, “then the builder can move forward, building as quickly as possible.”

BRINGING IN THE INFRASTRUCTURE Not being able to raise taxes makes it difficult for tribes to establish economies within their lands. In turn, that often prevents the necessary infrastructure to allow development. One source of boosting revenue for economic development on tribal land derives from the Tribal-State Compacts that took effect in Arizona in 1993, allowing gaming on tribal territory. “Tribes have been able to invest in muchneeded projects such as infrastructure,” says Levi Esquerra, director of the Center for American Indian Economic Development at Northern Arizona University. “Gaming isn’t a cure all, but it’s allowed for infrastructure to be put in place.” During the recession, private development was stagnant on tribal lands, much like it was everywhere else. The only big projects to come up were public projects that were used to stimulate the economy, including Salt 41

INDIAN COUNTRY River Fields, Cactus League home of the Arizona Diamondbacks and the Colorado Rockies, which broke ground in 2009. “While many people laid low when everything dropped in 2008, the Ak-Chin Indian Community was able to take advantage of the recession by building up its infrastructure,” says Louis Manuel, Ak-Chin councilman. Infrastructure improvements were made in 2007 to the community’s 50-acre industrial park, Santa Cruz Commerce Center, which added water lines, utilities, road improvements, street lights and landscaping. Another major infrastructure project the community finished in recent years was its Ak-Chin Indian Community Water Reclamation Facility in 2013. Combined with those infrastructure projects, the Ak-Chin Community has

been focusing on bigger projects over the years. “After the community focused on infrastructure improvements,” Manuel says, “they wanted to invest back into the local community.” In 2006, Ak-Chin purchased the Phoenix Regional Airport, which has since been renamed Ak-Chin Regional Airport. After the purchase, the airport has undergone several improvements, including runway resurfacing. The most recent improvements started in January, adding runway edge lighting and an automated weather station. “The community is adding these improvements to the airport so it can encourage more industrial projects in the area,” Manuel says. In 2013, Ak-Chin completed a multimillion-dollar investment in Phoenixbased Quail Run Building Materials to

TOP TO BOTTOM: OdySea Aquarium construction.

bring a manufacturing facility to the Santa Cruz Commerce Center.

EXPANSION AND PROGRESS Manuel said the community is now focused on recruiting businesses to its Santa Cruz Commerce Center, as the center boasts an Arizona Gold Shovelready certification and is located near the community’s airport. While the area’s industrial opportunities increase, so are the opportunities for fun. Harrah’s Ak-Chin Casino is doubling its square footage through a series of expansions starting in the second quarter of 2016, according to Robert Livingston, general manager of Harrah’s Ak-Chin Casino. “The City of Maricopa and the surrounding tribal community has been growing in recent years,” Livingston says, "and the time has come for an expansion and series of improvements at Harrah’s.” Livingston says for years, the casino’s location off of State Route 347, which leads right to Interstate 8, brings in individuals from all across the state. The multi-million dollar expansion will add 200 rooms to the current 300-room hotel, a parking garage, spa and a multi-use ballroom along with a conference center. They will also remodel much of the hotel along with the casino floor, to allow for future additions.

FUN IN THE DESERT While the Ak-Chin Community focuses on industrial projects and casino expansions, the Salt River Pima-Maricopa Indian Community along the Loop 101, has grown into an entertainment hub. Talking Stick Resort, Salt River Fields at Talking Stick and TopGolf make up their own entertainment district along with plenty of dining options in the area, with close proximity to the freeway, but the area continues to grow with another district for entertainment on the horizon. It started with Butterfly Wonderland, where visitors can walk through the country’s largest indoor butterfly pavilion. It’s an all-ages attraction nestled near the Loop 101 and East Via de Ventura. The same team behind the 42 | March-April 2016

INDIAN COUNTRY

MAKING A SPLASH: A rendering of OdySea Aquarium Butterfly Wonderland is developing a 200,0000-square-foot aquarium, OdySea Aquarium, adjacent to Butterfly Wonderland. The aquarium is set to open in July and the project recently hit a construction milestone, “topping out” (completion of the steelwork on the top of the facility). The immediate access to Loop 101 and the heavy number of tourists who visit the area prompted OdySea Founder Amram Knishinsky to develop these ambitious projects on tribal lands. After the success of Butterfly Wonderland, Knishinsky wanted to create a whole new entertainment district. He knew it was a good area to build after the immediate success of Butterfly Wonderland, which is phase one of Knishinksy’s entertainment district. The aquarium will be the second phase and the third phase will consist of restaurants and retail options. “It’s an exciting attraction,” Knishinsky says, “and will incorporate themepark technology. There are still many surprises in store for opening day.” There had been ramp closures on the Loop 101, but the widening project on the freeway has been something Knishinsky has been excited about as 44 | March-April 2016

they expect to have 15,000 visitors a day once the aquarium opens. The entertainment district will be set up in a way so people can go to both the aquarium and the butterfly habitat in one day, while also getting some shopping done and grabbing a bite to eat. While Knishinksky builds his own entertainment district on Salt River lands, the community is developing a $60 million autopark, the Scottsdale AutoShow at Salt River. The project is being developed by Salt River AutoShow LLC, which was formed specifically by the community with assistance from MULLIN360 LLC. The project will encompass 70 acres along Loop 101 and Indian School Road and will be the first masterplanned autopark on tribal lands, as well as the first master-planned autopark to be developed in the country in six years. Courtesy Chevrolet owners will be opening a Courtesy Volvo dealership at the auto mall when it’s completed, and the Chapman Automotive Group will move its Chrysler, Jeep, Dodge, Volkswagen and Hyundai dealerships from along the McDowell Road corridor to the new autopark.

READY FOR BUSINESS A common trend for economic development on tribal lands in Arizona has been that the tribes with casinos have seen the most activity. Vince Lujan, president and CEO at Salt River Devco: “The sense of things is that tribes with casinos can develop more, but now they’re doing diverse investments, especially tribes in metro areas. Tribes with casinos located in more rural areas have been investing in government projects, while others may be investing off the reservation.” Levi Esquerra, director at the Center for American Indian Economic Development: “A big trend has been that the tribes are starting to diversify their assets and every tribe has been doing its best to do so. Tribes have been building marketplaces, industrial parks, like Ak-Chin’s Santa Cruz Commerce Center, and much more. Tribes with the means to develop have been developing in recent years as more and more tribal members have been pushing forward and more willing to make projects happen.”

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PRESENTS THE 11 ANNUAL TH

WINNER: EDUCATION

Northern Arizona University Science and Health Building DEVELOPER: Northern Arizona University CONTRACTOR: Mortenson Construction ARCHITECT: GLHN/Richard+Bauer, A Joint Venture SIZE: 120,000 SF LOCATION: Flagstaff COMPLETED: July 2015

orthern Arizona University’s Science and Health building is the forerunner in energy efficiency and design. This five-story building is LEED certified, thus promoting reusable energy. With natural lighting, low volatile organic compounds and low flow reclaimed water, the structure itself is not only proficient for learning, but also for responsible energy consumption. The new science and health center is situated in proximity to public transportation and has ample bike parking. The building includes 54 faculty offices, 9 interaction rooms, 10 interaction spaces, 18 research labs, 8 instructional labs, 5 classrooms and 3 lecture halls. The building includes a tunnel that connects to Building 17, allowing staff to transfer hazardous chemicals without exposing the public. Over 10 percent of NAU’s students are estimated to use the facility each semester.

HONORABLE MENTION

Foundation for Blind Children

Phoenix Coding Academy

DEVELOPER: Foundation for Blind Children CONTRACTOR: Haydon Building Corp. ARCHITECT: SmithGroupJJR SIZE: 37,000 SF LOCATION: Phoenix COMPLETED: August 2015 50 | March-April 2016

DEVELOPER: Phoenix Union High School District CONTRACTOR: CORE Construction, Inc. ARCHITECT: ADM Group, Inc. SIZE: 41,000 SF LOCATION: Phoenix COMPLETED: July 2015

WINNER: HEALTHCARE University of Arizona Cancer Center

ne of 69 National Cancer Institue centers, The University of Arizona Cancer Center, partnered with St. Joesph’s Hospital and Medical Center, offers invaluable opportunities for not only Arizona cancer patients, but for advocates, health practicioners and students. In addition to serving as a catalyst to address a range of oncology issues and work to achieve innovated solutions through research, UACC’s presence offers benefits to the city such as $1.3M in city construction sales tax revenues, 500 construction jobs (during projected 2-year construction), 800 permanent jobs upon completion and continued growth and investment in PBC/Master Plan.

DEVELOPER: University Of Arizona CONTRACTOR: Hensel Phelps ARCHITECT: ZGF Architects LLP

HONORABLE MENTION

SIZE: 213,649 SF LOCATION: Phoenix COMPLETED: May 2015

HONORABLE MENTION

Canyon Vista Medical Center

Banner Estrella Campus Expansion

DEVELOPER: RegionalCare Hospital Partners CONTRACTOR: JE Dunn Construction ARCHITECT: Gould Turner Group SIZE: 176,000 SF LOCATION: Sierra Vista COMPLETED: March 2015

DEVELOPER: Banner Health CONTRACTOR: McCarthy Building Companies, Inc. ARCHITECT: SmithGroupJJR SIZE: 8,415 SF LOCATION: Phoenix COMPLETED: October 2015

WINNER: INDUSTRIAL Airport I-10 Business Park Phase I and Phase II

ormerly an unusable property space, the Aiport I-10 Business Park was transformed into one of the most efficient and desirable industrial spec campuses in Arizona. Not only was close to 50,000 tons of diverted material utilized as infill or building material, each structure consists of extended ceiling heights and overhead doors, and 100 percent concrete loading docks. The design of Airport I-10 was created to accommodate multiple industries and tenants. Anixter, which supplies communications and security products, electrical and electronic wire and cable, fasteners and other small components, was the first tenant, choosing to occupy Building E.

DEVELOPER: Wentworth Property Company CONTRACTOR: Wespac Construction Inc. (Phase I), A.R. Mays Construction (Phase II) ARCHITECT: Butler Design Group

HONORABLE MENTION

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SIZE: 920,584 SF LOCATION: Phoenix COMPLETED: March 2015 (Phase I); December 2015 (Phase II)

HONORABLE MENTION

CIW Enterprises - Cookson Doors

SRPMIC East Valley Data Center

DEVELOPER: CIW Enterprises CONTRACTOR: Layton Construction ARCHITECT: Jones Studio SIZE: 163,000 SF LOCATION: Goodyear COMPLETED: February 2015

DEVELOPER: Salt River Pima Maricopa Indian Community CONTRACTOR: Maydall Construction ARCHITECT: SmithGroupJJR SIZE: 5,500 SF LOCATION: Scottsdale COMPLETED: April 2015

WINNER: MIXED USE Heritage Marketplace

eritage Marketplace, consisting of three buildings totalling over 31,000 square feet of mixed-use space houses Zinburger, Lolo’s Chicken & Waffles, Pomo Pizzeria, Barrio Queen, Peterson’s Ice Cream and Nico, to name a few. The project was designed to support an organic flow between office users, visiting patrons and residents. This synchronicity is evidenced in the asthetic qualities of the buildings’ use of metals, brick and plaster, in addition to the market’s close proximity to the street for easy patron accessibility. The overall redevelopment pays homage to Gilbert’s golden era of farming and railroads. As the symbolic center and heart of the community, Heritage Marketplace has kept Gilbert’s historical integrity at the forefront, ensuring that the downtown area will have a positive impact on the adjacent residential and commercial sectors.

DEVELOPER: MD Heritage, LLC CONTRACTOR: LGE Design Build ARCHITECT: Cawley Architects, AV3 Design Studio

HONORABLE MENTION

SIZE: 31,454 SF LOCATION: Gilbert COMPLETED: July 2015

HONORABLE MENTION

Sprouts Farmers Market Corporate Headquarters

Scottsdale Quarter Block M

DEVELOPER: Sprouts Farmers Market CONTRACTOR: Layton Construction Co., Inc. ARCHITECT: RSP Architects SIZE: 80,000 SF LOCATION: Phoenix COMPLETED: February 2015

DEVELOPER: WP Glimcher CONTRACTOR: IBEX Construction ARCHITECT: Nelsen Partners SIZE: 434,707 SF LOCATION: Scottsdale COMPLETED: December 2015

WINNER: MULTIFAMILY ENVY Residences

he bride and groom are coming to Scottsdale. The newly constructed eight-story midrise luxury condominium is set to resemble the classic wedding scene. The dark front of the building portrays the groom, with the dark setting symbolizing the jacket against a crisp white shirt. The bride side is elegant--entirely white. The building is part of the transformation of Old Town Scottsdale into a work and play environment. ENVY Residences has secure underground parking, an onsite fitness trainer and nutrition program, and private aviation flying time. In addition to the building’s aesthetic features, ENVY Residences is part of the Multifamily Energy Efficiency Program. In an effort to reduce energy consumption, the building has low-flow toilets and water conserving showerheads.

DEVELOPER: Deco Communities CONTRACTOR: UEB Construction ARCHITECT: Harley Ellis Devereaux, design; WORKSBUREAU; local architect

HONORABLE MENTION

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SIZE: 109,000 SF LOCATION: Scottsdale COMPLETED: June 2015

HONORABLE MENTION

The Village at Aspen Place

San Sonoma

DEVELOPER: VanTrust Real Estate CONTRACTOR: Wespac Construction Inc. ARCHITECT: NSPJ Architects SIZE: 344,144 SF LOCATION: Flagstaff COMPLETED: December 2015

DEVELOPER: Mark-Taylor and Kitchell CONTRACTOR: Mark-Taylor ARCHITECT: Architectural Design Group SIZE: 904,175 SF LOCATION: Tempe COMPLETED: February 2015

WINNER: OFFICE OVER 100,000 SQUARE FEET Hayden Ferry Lakeside Phase III

fter a postponement in 2007 due to the economic downturn, the future of the Hayden Ferry project was uncertain. Under new ownership — and partnered with Parkway Properties, Inc. and Ryan Companies US, Inc. — this sleek Tempe lake-front property not only came to fruition, but was nearly 90 percent leased before construction was complete. The nautical-design origins are conceptualized in the all-glass curtain wall exterior, stretching 17-feet tall, with wave inspired shapes and cobalt-blue glass, among other features. Magnetic bearing chillers and LED light fixtures installed throughout make this building not only aesthetically striking, but energy efficient. The project received $75,000 in energy rebates from APS’ Business Solutions program. DEVELOPER: Parkway Properties Inc., Ryan Companies US, Inc. CONTRACTOR: Ryan Companies US, Inc. ARCHITECT: The DAVIS Experience

HONORABLE MENTION

SIZE: 267,000 SF LOCATION: Tempe COMPLETED: September 2015

HONORABLE MENTION

Northern Trust Operating Center at Discovery Business Campus

Rivulon Building Core and Shell DEVELOPER: Nationwide Realty Investors CONTRACTOR: Layton Construction Co., Inc. ARCHITECT: Butler Design Group SIZE: 150,000 SF LOCATION: Gilbert COMPLETED: December 2015

DEVELOPER: Wentworth Property Company CONTRACTOR: Westpac Construction ARCHITECT: The DAVIS Experience SIZE: 150,000 SF LOCATION: Tempe COMPLETED: December 2015 (Building I)

WINNER: OFFICE UNDER 100,000 SQUARE FEET Alliance Bank

he desire of Alliance Bank to establish a bigger presence in the East Valley was accomplished with the construction of a new 27,000-square-foot, two-story facility located at the southeast corner of Ray Road and the Loop 101 in Chandler. Two types of sandstone veneer were utilized in constructing the exterior finishes, along with aluminum composite panels and insulated glass. The interior of the building also included sandstone, in addition to teak wood wall and ceiling panels, accompanied by exterior and stairwell glass laminated with photos of Palo Verde trees in bloom. The entrance of the bank features stone-tile flooring, with a line of teak-wood, frosted glass and blackened plate steel trim and stone tops. Both first- and second-floor offices are complete with premium finishes and amenities.

DEVELOPER: Western Alliance Bancorporation CONTRACTOR: Sun State Builders ARCHITECT: The DAVIS Experience

HONORABLE MENTION

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SIZE: 27,000 SF LOCATION: Chandler COMPLETED: January 2015

HONORABLE MENTION

The Mahoney Group Professional Building

Crown Castle

DEVELOPER: The Mahoney Group CONTRACTOR: Porter Brothers ARCHITECT: Functional Formation Architecture SIZE: 46,942 SF LOCATION: Phoenix COMPLETED: November 2015

DEVELOPER: MD Heritage LLC CONTRACTOR: LGE Design Build ARCHITECT: LGE Design Group SIZE: 70,000 SF LOCATION: Chandler COMPLETED: September 2015

WINNER: OFFICE INTERIOR NRG Renew Offices

rom interior to exterior, The NRG Renew project was specifically aligned with the company’s mission to utilize technology in a way that will ensure a sustainable, clean-energy future. Orthogonal geometry on the perimeter reflects the power grid in its offices and open work stations, where the core reflects the vitality of life energy in its huddle rooms, collaboration spaces, conference rooms and break rooms. Two cyan and magenta hallways extend through the core, exposing freestanding meeting pods. LED lighting, solar-powered facets and occupancy/daylight sensors were implemented in the interior space for both energy efficiency and user comfort. DEVELOPER: Forum Property Services CONTRACTOR: Jokake Construction Services, Inc. ARCHITECT: DLR Group

HONORABLE MENTION

SIZE: 28,000 SF LOCATION: Scottsdale COMPLETED: March 2015

HONORABLE MENTION

Southland Industries Tenant Improvement

Valley of the Sun United Way

DEVELOPER: Southland Industries CONTRACTOR: Graycor Construction Inc. ARCHITECT: SmithGroupJJR SIZE: 10,000 SF LOCATION: Tempe COMPLETED: March 2015

DEVELOPER: DPC Companies CONTRACTOR: Jokake Construction ARCHITECT: SmithGroupJJR SIZE: 30,600 SF LOCATION: Phoenix COMPLETED: January 2015

WINNER: PUBLIC Pima Public Service Center

he Pima Public Service Center holds the largest concrete placements in Tucson history. Although the center is in a prime location, architects had to work with the site’s sandy location as a base. In order to begin construction, a concrete slab spanning over one acre was placed 25 feet below grade. During construction, 78.3 percent of materials were diverted from landfills and 26.69 percent of used materials were recycled. An advocate for water efficiency, the service center has curb inlets for the capture of rainwater. Captured and filtered water reduces portable water consumption and reduces street flooding. The justice facility is home to courtrooms, judges’ chambers, meeting rooms and county administrative offices.

DEVELOPER: Pima County CONTRACTOR: Sundt Construction ARCHITECT: AECOM

HONORABLE MENTION

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SIZE: 257,000 SF LOCATION: Tucson COMPLETED: April 2015

HONORABLE MENTION

Bob and Renee Parsons Boys & Girls Club

City of Mesa Hohokam Stadium & Lew Wolff Training Complex Renovation

DEVELOPER: Balsz Elementary School District No. 31 CONTRACTOR: Chasse Building Team ARCHITECT: ADM Group SIZE: 36,833 SF LOCATION: Phoenix COMPLETED: May 2015

DEVELOPER: City of Mesa CONTRACTOR: W.E. O’Neil Construction ARCHITECT: Gensler SIZE: 126,240 SF LOCATION: Mesa COMPLETED: February 2015

WINNER: REDEVELOPMENT The Scheduling Institute

he Scheduling Institute is the largest dental training company in the world. As part of the City of Phoenix Adaptive Re-Use Program, dedicated to adapting older buildings for new business uses, The Scheduling Institute reflects old and new architecture. Originally a vegetable distribution warehouse and later converted to a sports bar, the building was vacant since 2012. In order to keep the classic clay brick that the building was composed of, recycled material from the demolition of certain areas was reused throughout. By reducing the amount of space the building encompasses, the institute now consumes less power and has changed all lighting fixtures to LED. The Scheduling Institute is dedicated to creating an environment where dentists can teach while working.

DEVELOPER: The Scheduling Institute CONTRACTOR: LGE Design Build ARCHITECT: PHArchitecture

HONORABLE MENTION

SIZE: 23,000 SF LOCATION: Phoenix COMPLETED: March 2015

HONORABLE MENTION

Arizona Cardinals Training Facility Addition

Nexus DEVELOPER: ViaWest Group CONTRACTOR: RJM Construction ARCHITECT: PHArchitecture SIZE: 122,000 SF LOCATION: Tempe COMPLETED: November 2015

DEVELOPER: Arizona Cardinals Football Club LLC CONTRACTOR: Hunt Construction Group ARCHITECT: SmithGroupJJR SIZE: 15,000 SF LOCATION: Tempe COMPLETED: July 2015

WINNER: RETAIL Ocotillo Village Health Club & Spa

ocated near a man-made lake in Chandler, the Ocotillo Village Health Club and Spa promotes healthy living and an eco-friendly environment. Reduced wattage light fixtures and recycled materials were utilized in the construction of the building. Floor tiles were made out of 7 to 10 percent of recycled materials and during the construction, 25 percent of waste was diverted from landfills by adequately separating waste and recycled resources. The health club offers luxurious amenities and is comprised of many businesses and neighborhood community members. Additionally, the club created 800 to 1,000 construction jobs and is expected to generate 220 full and part-time jobs. DEVELOPER: Village Health Clubs/ DMB Associates, Inc. CONTRACTOR: Sundt Construction ARCHITECT: Butler Design Group

HONORABLE MENTION

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SIZE: 82,000 SF LOCATION: Chandler COMPLETED: April 2015

HONORABLE MENTION

Harley-Davidson of Scottsdale

Scottsdale Fashion Square

DEVELOPER: YAM Holdings CONTRACTOR: Hardison/Downey Construction ARCHITECT: K/G Architecture SIZE: 150,000 SF LOCATION: Scottsdale COMPLETED: September 2015

DEVELOPER: Macerich CONTRACTOR: Kitchell ARCHITECT: Nelsen Partners SIZE: 143,000 SF LOCATION: Scottsdale COMPLETED: July 2015

WINNER: BROKERS OF THE YEAR IN SALES 25 OR FEWER BROKERS

ri Spiro started ORION Investment Real Estate in 2009 and has been a part of the real estate industry for over 20 years. He deals with multiple transactions, showcasing his dedication, drive and knowledge in the field. Spiro and ORION are currently working to complete the leasing of OdySea in the Desert, a 35-acre, quarter-billion-dollar mixed-use retail entertainment complex developed by the the Salt River PimaMaricopa Indian Community.

Ari Spiro

BROKERAGE: Orion Investment Real Estate BROKER/TEAM: Ari Spiro DEAL: The Marketplace at Lincoln SALE: $13,999,354

HONORABLE MENTION

HONORABLE MENTION BROKERAGE: Menlo Group Commercial Real Estate BROKER/TEAM: Rich Andrus DEAL: Risas Dental SALE: $862,000

BROKERAGE: SVN/Desert Commercial Advisors BROKER/TEAM: Justin Horwitz DEAL: Palm Plaza SALE: $2,030,000

WINNER: BROKERS OF THE YEAR IN LEASING 25 OR FEWER BROKERS

ave Cheatham, president of Velocity, has used his entrepreneurship and corporate experience to execute more than $3 billion in retail transactions. He is acknowledged for his innovations in performance-based teaming and ability to manage transactions. Darren Pitts, executive vice president, specializes in handling big-box clients, and in his 17+ years in the industry, has demonstrated his abilities as a top performer in retail commercial real estate. BROKERAGE: Velocity Retail Group BROKER/TEAM: Dave Cheatham, Darren Pitts DEAL: At Home in Prescott LEASE BY SF: 110,580

Dave Cheatham

HONORABLE MENTION BROKERAGE: Plaza Companies BROKER/TEAM: Margaret Lloyd, Bill Cook DEAL: Lake Pleasant Professional Plaza LEASE BY SF: 24,363

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Darren Pitts

HONORABLE MENTION BROKERAGE: Menlo Group Commercial Real Estate BROKER/TEAM: Rich Andrus DEAL: Magic Smiles LEASE BY SF: 10,000

WINNER: BROKERS OF THE YEAR IN SALES 26 OR MORE BROKERS

risha Talbot and Kathleen Morgan have both been classified as Certified Commercial Investment Members. As a team they focus on healthcare options, childcare and community support services for Phoenix.

BROKERAGE: NGKF BROKER/TEAM: Trisha Talbot, Kathleen Morgan DEAL: Integrated Medical Services SALE: $141,000,000

Trisha Talbot Kathleen Morgan

HONORABLE MENTION

HONORABLE MENTION BROKERAGE: CBRE BROKER/TEAM: Jim Fijan, Will Mast DEAL: Freeport McMoRan SALE: $110,000,000

BROKERAGE: Colliers International BROKER/TEAM: Cindy Cooke, Brad Cooke, Kellyanne Kennedy, Charles Wolcott DEAL: AZ 3 Portfolio SALE: $116,000,000

WINNER: BROKERS OF THE YEAR IN LEASING 26 OR MORE BROKERS

ogether, Tom Adelson and Jerry Roberts have over 60 years of office brokerage experience. Adelson leads the corporate broker side of things, while Robertsâ&#x20AC;&#x2122; looks over the marketing and leasing aspect of the office duties. But with their team work, both Adelson and Roberts have been recognized as NAIOP Office Brokers of the Year in Arizona. Out of a 25-year stretch, the two have received the award for 20 years. BROKERAGE: CBRE BROKER/TEAM: Tom Adelson, Jerry Roberts DEAL: American Airlines HQ LEASE BY SF: 1,300,000

Tom Adelson

HONORABLE MENTION BROKERAGE: Lee & Associates BROKER/TEAM: The Coppola-Cheney Group; R. Craig Coppola, Andrew Cheney, Gregg Kafka DEAL: Desert Ridge Corporate Center LEASE BY SF: 947,782

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Jerry Roberts

HONORABLE MENTION BROKERAGE: JLL/Colliers International BROKER/TEAM: Tony Lydon, Mark Hertzberg/Don MacWilliam, Payson MacWilliam, Jimmy Leaf DEAL: Tuesday Morning Distribution Center LEASE BY SF: 593,600

COMMUNITY IMPACT: MICHAEL POLLACK

Michael Pollack earns the 2016 RED Award for Community Impact By ERIN DAVIS

ave you ever conceptualized a western town schematic — with blueprints — in the fourth grade? Michael Pollack has. From a young age, Pollack, president and founder of Michael A. Pollack Real Estate Investments, was already contemplating how to make the world a better place — one project at a time. Immediately following high school in 1973, Pollack built his first home, which launched him onto a single-family and multifamily residential real estate career path that included more than 10,000 apartment units. His career evolved and expanded into all facets of commercial real estate and led him to work in California, Texas, Louisiana, Nevada and, ultimately, Arizona. Many recognize Pollack for his dedication to community redevelopment and improvement, coining him with the moniker, “Renovation King.” Although he doesn’t claim rights to royalty, Pollack is appreciative of being acknowledged as someone who could leave a positive and lasting legacy. “If I can do my part to leave this world a better place than I found it, that’s what I want to do,” says Pollack. Pollack’s hope isn’t a tall order, considering his invaluable contributions toward not only the communities he improves through renovation, but also through his tireless philanthropic contributions with such organizations as Goodwill Industries, Boy Scouts of America, St. Mary’s Food Bank Alliance, Banner Health Foundation, and the Chandler, Tempe, and Mesa centers for the arts, as well as numerous other nonprofits and schools throughout the Valley of the Sun.

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How, may one ask, does the man who has been involved in more than 13 million square feet of real estate projects find time to dedicate to his surrounding community and causes? “One day at a time,” Pollack says, “I wear a lot of hats and I enjoy most of them. I always try to make each day count for something.” Pollack is intentional in whatever task he targets — whether arranging items in his three-dimensional advertising museum, playing with his band — “Pollack ‘s Corporate Affair” — at charitable fund-raising events, giving back to the community or redeveloping an existing property. One of Pollack’s favorite projects to date was a 100-percent leased project on the southeast corner of Gilbert and Ray roads in Gilbert. It was somewhat inspired by the miniature western town he envisioned during elementary school. When tasked with keeping an iconic horse statue associated with the project, Pollack had to get creative. “I received over 300 emails from people wanting me to bring back

the horse,” Pollack says, “I ended up building a balcony above one of the suites similar to the kind you’d see on Disney’s Main Street — a sort of halfstory balcony façade, and placed the horse on it. It was a challenge, but one I was glad to work on.” As an added bonus of witnessing his projects come to fruition, Pollack has observed the byproduct of his transformations for the surrounding community. “Renovation almost becomes contagious,” he says. “In many cases, I’ll see the community spirit revived with people painting houses, adding new roofs and landscaping. I’m glad to know that my work inspires people to take ownership of their community as a result of seeing the projects and improvements that we’ve done.” So what’s next for this man who has impacted so many communities? “There are so many real estate projects in need of improvement,” Pollack says. “My goal is to continue improving our communities one project at a time.”

ARCHITECT OF THE YEAR: SMITHGROUP JJR

mithGroupJJR is a forerunner in the world of sustainability. Involved in many of this yearâ&#x20AC;&#x2122;s high-profile projects, SmithGroupJJR was the leading architect for six RED Award finalists, ranging from education to redevelopment. The company recently worked with the City of Chandler to redevelop Chandler City Hall. The building is one of the first LEED Gold city halls in the nation and won the Green GOOD Design Award for green architecture. SmithGroupJJR also won the Design Excellence PRIDE Award for the interior design of the facility. Architects at SmithGroupJJR believe the only inspiration they need comes from the customer. For this reason, clients partake in an Interactive Space Lab, where they pick a series of images that appeal to them. Through this exercise, SmithGroupJJR is better able to serve the client and its creative purpose.

CREATIVE DESIGN: SmithGroupJJR was the architecture firm for (top to bottom) Chandler City Hall, Southland Industries and Valley of the Sun United Way. 68 | March-April 2016

CONTRACTOR OF THE YEAR: LAYTON CONSTRUCTION

ayton Construction has left its mark on this yearâ&#x20AC;&#x2122;s RED Awards. Layton was the contractor for three of this yearâ&#x20AC;&#x2122;s finalists: CIW Enterprises-Cookson Doors, Sprouts Farmers Market Corporate Headquarters and Rivulon Building Core and Shell. The company is dedicated to five principles: quality, truth, honor, unity and completeness. By practicing these values, Layton ensures that all of its projects are precise in detail and provide the client with the desired finished product. The corporation takes pride in building close relationships within departments and with clients. Layton was the 2015 AZRE RED Award Contractor of the Year winner for redevelopment.

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LEADING THE WAY: Layton was the contractor for (clockwise from top) Rivulon Building Core and Shell, CIW Enterprises-Cookson Doors and Sprouts Farmers Market Corporate Headquarters.

DEVELOPER OF THE YEAR: WENTWORTH PROPERTY COMPANY

entworth Property Company is the developer for the winner of the 2016 RED Award for industrial projects â&#x20AC;&#x201D; the Airport I-10 Business Park. The 920,584 SF project will be one of the largest Phoenix Sky Harbor International Airport industrial developments in the history of Phoenix. Once completed, the area will add a modernized feel to the airport. Wentworth has 40 years of experience under its belt and team members are dedicated to completing projects in a timely and efficient manner. Wentworth is also the developer for the Northern Trust Operating Center at Discovery Business Campus. The 135-acre development features numerous office buildings and bring as many as 1,000 jobs to Tempe.

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WINNING WAYS: Wentworth Property Company developed (clockwise from top) Northern Trust Discover Business Campus, Airport I-10 Business Park (interior and exterior shots) and the Northern Trust Operating Center (lobby and common area).

CORENET GLOBAL

CoreNet members on the move By JESSE A. MILLARD

he greater Phoenix commercial real estate market has been jumping with activity across the entire Valley for some time. Members of CoreNet Global Arizona Chapter have been leaders across the Valley in recent economic development, especially in the Southeast Valley, which has been one of the busiest places for development recently. Meet some of CoreNet Global’s members who have been on the move: leading projects, meeting with the community and making relationships one client at a time.

TOM PRITSCHER,

president of TEPCON: In 2008, TEPCON Construction only had two employees, but has since grown to 45 employees working on corporate construction with a specialty in occupied space. Working in an occupied space can be difficult, but TEPCON employees operate with respect, safety and 74 | March-April 2016

teamwork in mind during projects. “Listening to the client is always the first step of any project,” says Tom Pritscher, president at TEPCON. “And the construction firm’s biggest goal is providing the best outcome for the client.” Over the years TEPCON’s priority, according to Pritscher, has been adding one client at a time, and keeping them. Culture is one of the most important things for many firms, and when Pritscher’s team works on a project at a firm, TEPCON members operate as if they worked for the company they’re doing the project for. “If a business has a no tattoo policy,” Pritscher says, “then TEPCON adopts that policy too.” Everything revolves around the client, and TEPCON is always on call so the firm can handle anything. Pritscher even tells of a time when clients called about snakes in the office place, and TEPCON came to the rescue to have them removed. “We do a a lot of value-added services,” he says, “as the firm is always ready to do the job, especially when there is no one else around to do the work.”

HILARY HIRSCH,

economic development administrator of the Town of Gilbert: The Town of Buckeye has seen a renaissance of new activity in recent years as its Heritage Square District expands into the small business and restaurant hub of the southwest valley. One of the many leaders of Buckeye’s business retention and expansion has been Hilary Hirsch who joined the town last year as its economic development administrator. Hirsch has been working hard creating more resources for entrepreneurs and small businesses in Gilbert in a collaborative effort between Arizona State University and the Town of Gilbert called SPARK Space. SPARK Space opened on Feb. 25 inside the Southeast Regional Library. SPARK Space offers ASU Startup School resources, free business programs, workshops, webinars and access to the library’s database and

CORENET GLOBAL “Listening to the client is always the first step of any project,”...“And the construction firm’s biggest goal is providing the best outcome for the client.” – Tom Pritscher workforce development resources. “There are plans for classes to begin at the space in March,” Hirsch says. Hirsch is also involved in a Business Walk, which has been a new trend in cities and towns as a means of getting a feel for the business climate within their municipalities. “Leaders will spend a day meeting with businesses to learn about what’s working, and any issues that may be going on in the town,” Hirsch explains. “Results from the business walk will guide us into the future.” According to Hirsch, Gilbert is one of the fastest growing communities in the state with 4.5 million square feet to be developed in the next five years.

MARK SINGERMAN,

regional director at The Rockefeller Group As the bitter taste of the recession leaves us, and we head further into the recovery period, Regional Director at The Rockefeller Group Mark Singerman, has been busy with a string of projects in the Southeast Valley. As Singerman continues to work with the City of Chandler on Chandler 101, a 76 | March-April 2016

937,000-square-foot project that will include 10-story office buildings, a 300 room hotel and a 65,000-squarefoot conference center along Chandler Boulevard and Price Road, he’s also been busy with the Chandler Corporate Center. The business park was first developed in 2009, and the Rockefeller Group added a second office structure, called the Chandler Corporate Center III, a 82,000-square-foot flex/office building that DaVita Rx occupies the majority of. “Now The Rockerfeller Group is adding a 86,000-square-foot flex/office building to the park dubbed Chandler Corporate Center IV,” Singerman says. “The center is set to be completed in April, and there are many potential tenants interested in the space.” The Rockerfeller Group was recently authorized to begin a 886,000-squarefoot industrial project near the Chandler Airport, called Rockefeller Group Chandler Crossroads. The project is zoned to work as a showroom, distribution or manufacturing facility, and can be flexible for the tenant. It will feature lots of glass to provide natural light for a tenant who may want to use parts of the facility as a showroom. The Phoenix area has kept Singerman and the Rockerfeller group busy. “It’s almost getting fun again, since the recession,” he says.

SHEILA SCHMIDT,

director of healthcare development at Ryan Companies Healthcare has been one of the rising sectors in Arizona, and there is plenty of work on the horizon for Sheila Schmidt, who recently took the helm as director of healthcare development at Ryan Companies. Schmidt has over 14 years of business development experience, and sits on several boards of directors including the CoreNet Global Arizona Chapter. “Lately as the healthcare industry becomes comfortable with the Affordable Care Act, there have been many new projects across the whole spectrum popping up,” she says. Schmidt is there to provide assistance for all aspects of development for her Ryan Companies clients, and works with everything including site selection, land acquisition, municipal approvals, constraint analysis, design and construction coordination and lease and sale negotiations. She’s been learning a lot in the new position, and is glad to have Rick Collins, president of the southwest region at Ryan Companies, as her mentor. Since healthcare is a growing sector in Arizona, and is one of those markets that never goes away, Schmidt has been active over the years. “Even during the recession while other markets took a beating,” Schmidt says, “healthcare only slowed, but projects didn’t go away.” But now, in the recovery, it’s full steam ahead.

CORENET GLOBAL

Educational program showcases Arizona

By JESSE A. MILLARD

Master of Corporate Real Estate designation is taught by industry experts, giving those who are seeking the designation, applicable take aways and solutions from industry experts. Students will gain skills focusing on critical issues within the industry and how they can achieve corporate real estate firm goals. Each seminar is taught in a peer-topeer environment, and the designation is essential for service providers, end users and economic developers at all levels in their careers. CoreNet Global offers Master of Corporate Real Estate Designations through the Apollo Education Group. The designation is comprised of six seminar sessions, and for the second year in a row Arizona hosted four classes for CoreNet Global Members from Feb. 29 to March 4. MCR classes draw real estate experts and executives within the CoreNet Global system from across the country, and offer local executives the chance to showcase the state. “It’s exciting bringing in members

78 | September-October 2015

from across the state to show off Arizona’s success,” says Beth Gambaro, vice president of real estate, facilities and workplace services at the Apollo Education Group. “The second round of classes Arizona hosted, brought in even more value for local CoreNet Global members.” The event was hosted at the University of Phoenix Headquarters, and provided plenty of time for local commercial real estate experts to

network with other professionals coming in from across the country. “It was a great opportunity locally for folks to learn, and a great opportunity for national members to see Arizona,” Beth Gambaro Gambaro says.

MCR Class Requirements In order to get a CoreNet Global Master of Corporate Real Estate Designation, members must have either worked in commercial real estate for three years and have a master’s degree, five years if they have a bachelor’s degree or have ten years of experience in commercial real estate. In order to complete the designation, members must attend three required seminars, two elective seminars, a final capstone seminar and complete all assignments given at the end of each seminar.

Arizona hosted four seminars this year, which include: -Corporate Real Estate Finance (Required course) -Enterprise Alignment (Required course) -Advanced Real Estate Negotiation (Elective Course) -MCR Capstone Leadership and Strategy

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COMMERCIAL PROPERTIES INC.

th Anniversary

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COMMERCIAL PROPERTIES INC.

YEARS OF CPI HISTORY

82 | March-April 2016

By ERIN DAVIS

ig trees, in addition to bearing delicious fruit, have deep roots. Similarly, Commercial Properties Incorporated has a solid foundation within the Valley that has developed a widespread outreachâ&#x20AC;&#x201D;one that Agnihitium quae cone nobit ute arum et years. qui officias iliaeprature destion con has continued to flourish for 35 iuntur minctur simusa secusci dustem parciatemo to totatios rest ent qui 1981ecerciis by Jimeum Austin and Joe eritFounded audanda siin dolupta iliquoditius ne optatempori optur, Squatrito as a locally ownedautand operated reni andus exerum quaecaborem seque deliqui de nullestrum ea aut qui at. recaerum si aut remolor eicimi, utat. organization, CPIâ&#x20AC;&#x2122;s initial focus was industrial Officia preium fugiae la quos as Pudae nusam reperovit dicipsunte property management. Thirty-five years later, dolestibus et aces pa vitate rercil molo susdae eaturia sum dolor sit ad utem the company has branched out to expand eatistis seque vent. Arum comni faceperorem cusdam rerunt alicipsam, volenes aut mo tem reratiusaeservices sumquae leasing,elende salesdiand development for vollabo. Ugia prati doluptata dis sum land ex et maio. Sinulli quibus quodi volorem faceaquibea doluptae office, and retail projects. acepelis repero eum fuga. Am, officit omnissed ullora cus re niet ullorerror aut et enessit idusa est lam fugita dolorum fuga. Et volorei ciistibuscil earuntotat mintem laboratus si dit lam audiostis saperum repedit iustrum duntur ariam ab inus est modigen ihictem duci odi rest, aut andunto dios dit, iur aut vollorestias niet ulles accuptam nimin cuptati buscius apicab iurerorem qui nus iniet veratiamenis dio excest harcit quibus magnim aut volupta nonsequi offic temodis rem esse por magnis aliquae vent volupta turerrum ipis debis dent acitaep udaera cum suntur aliti officium, quam adipsae. Orepudaecto officat aut peditenis moluptatque con et il inis velitem asit est alia nihilles ent por aspel et magnis derit as nus, consed mod ut aut fugiatur? On estius eat volene modite simporepe si sit occum quid quas audae etur magnihitatus erorercid molorest hari commolo reperro ilibusd aeribust esti te vel invelitis volorehendit velibus, erumque nat in comnim que pratecto blaceatiate velliquiam eum quia corecus, te parchit assequam fugitio nsequis plictor porehendit, aut maiorep erferumque con pero dicto et quibus accat ventibeatia quia site sequiam solore, quas dolut excearia dis magnatur? Num et eum que pra vid ut enducim aximus duscipit di il ipiciae porehenis suntempos disquate dolorum volut voloribus, quis ius aut offic to dolorestis

rem quia est, as volorpo rionseque oditatque adis ut molupid entiistiorro omnihit magnis as aperspe ritistis as des nus a sitiand ictionsed maximagnis sanis a in essim aut dolo dolest es unt, seque doluptaquae nonecus et hitiis natur, ulpa volupta temporeptas esequae. Experior mossinis sam et et lacerisquia volupid excepe doluptias ut quae numqui rehenim quatiae pratur sit, imus, nonsed eos dolut eatur, id quia volorpor aut moluptatque inctur? Pudist, assitio nsequam que ea dolorep tatenim illiam, quis rem. Nam soluptas digentumquos vitas non reriber ferovid ucipsant, ex expelitatem et eic tenem qui des int hicid unt ut prerepu dandunt, quunt as aut eat officie nditatia quam comnihillo dendel idebisti arum el int. Untis aut voluptatae omnit, te pre sandam, veris a que volorerem unt ipis re prestia et elestem. Et arum nobitia eicaepremque et voluptati ium in nobiteces aut amust est, sitium, inti quo qui rehenisi omniata sam, utatiosae. Itat qui sitatumquas sam excestium ex et harum ipiscillam re nem atiis ipitata tionse cum aut eiciatias et ratene maximus. Icid mo etur, omnihil litios ilibus di consentia quate nus doloreicia quundis aut lant. In reicime eictam, sam rernat. Tae pre dolenitisi offici dolupta sperum fugiasperum ut accum que volupta simus, net minihit, cum quid maxim faccuptur? Quis etur as et

del istio. Itate qui beat apel ipsunti inulpa quis des esseque cusam re accus voloriost, as acearum experum cus, alias qui inctur? Ga. Nequat que pero dolupta cuptam harum, aut vellabo. Nam quis ea et enetur, expelen isquisque volupta plitatus et et omnis eos etur aribea cor si ne atius ex et mos rem quatiorior ad exceseq uasped exerovidest et di dis conemporepe int velicitio esto imus maio inulpar iberest, ut reperup tibus, quae nosa sitis doluptam erchilibus se alitatem venimusae nis simodis dolupta vel esedit ut pla quunt dolorestrum que la sequi voloreh endandi taecta perio eligend endellacest lia sinctat intiorpora debit quae auditio. Les vel ipsam as uta quo quatet dolor modipsu sandem. Et dolute pe desequae enditem facearc hitiur, atquid ut et ut volorro venda cullis et accullessi digenda dolupta tiusciliquas dolupta con nulpa volorrovid maximus sint a ima sam acessin con eumet, escidendic torporitatur sequam, corpore natquossit pro blabo. Ebit ma con comnisi nobit officie ndandan ditium re perit quo ipsumquam quam, sum re de nem eveliat eseque eum rerferum esequi cumquam reperci endelesto voloresto odicima doluptat lam con nobitam natemporpos dendis ium eat. Ellum cum eostemq uidersp icidicia pelendam in parcien emporero omnienist, sum aut et es es des dolorepudae corio. Solorepera solupta turibus, id molum que de eatus sit iusa sequamet ommoluptas eniet mos soloriae cone nullandipsum dolor as exerum fugiate ssuntium reptate mporemquae volupta si dipit volum consequiat eiunt, oditas apidem si occat quisi cus dunditibus aut in por suntium simi, sunt est la con poriberumet et quaepediate sim volorepe suntiis repti bea corupta veribercid quod quod que ma vendit, et dus. 83

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COMMERCIAL PROPERTIES INC. “The company has certainly seen growth and transition,” explains CPI General Manager Brian Ruddle. Part of CPI’s metamorphosis has included the leadership of Leroy Breinholt, President and Designated Broker of CPI for nearly three decades. “Around the 1980s when major economic issues ensued, Austin and Squatrino sold part of the stock to Cal Johnson,” Breinholt said, “and a few years following, I ended up buying the company.”

84 | September-October 2015

As CPI continued to evolve, the company gained recognition for accommodating a much needed, albeit underserved commercial demographic. “There was a shortage of brokerages catering to the small-medium size companies/tenants,” Breinholt said. “We became business partners and trusted advocates for those representing smaller properties,” says Breinholt’s brother and Partner, Tyson Breinholt. “A mutual trust was established as these smaller entities’

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CPI

portfolios got bigger and bigger; some of these clients have been with us since the beginning.” The clients Tyson Breinholt refers to: Wade Davis and George Beranek, who, alongside CPI, will celebrate 35 years of business together. The trust that CPI covets within its business partnerships isn’t relegated to client relationships—it’s evidenced within the company’s internal environment. “One of the best things about CPI is the culture,” says Jason Price, director of Marketing and Research. “Leroy and Tyson handpick who they want, and it trickles down from there.” In the early 2,000s Leroy Breinholt was caught between the necessities of managing the company whilst maintaining his top-producing status. The addition of General Manager Brian Ruddle, Jason Price, 86 | March-April 2016

director of marketing and research and Cecil Yates, director of property management, has not only alleviated the need for balance between the two, but according to Leroy Breinholt, is also responsible for the continued success of the company overall. “This company is made up of people who want to be here,” Ruddle says, “not those who need to be here.” As a private company, CPI has the advantage of bypassing hoops often attached to public entities with headquarters three or four states away. With a team that is almost always onsite daily, CPI’s team works diligently and efficiently to execute priority decisions—and it shows. CPI’s listings include $20 million square feet for sale/lease, and over 166 projects under property management totaling more than 6 million square feet. Ultimately, each CPI employee is

LEFT TO RIGHT: Brian Ruddle, partner & general manager; Leroy Breinholt, president & designated broker; Ron Schooler, senior vice president sales & leasing; Tyson Breinholt, partner & associate broker.

given the necessary resources and empowerment to do exactly what is in his/her wheelhouse. This, combined with the company’s community outreach is what makes CPI continue to shine as one of the Valley’s most symbiotic and successful commercial real estate businesses. “I’m having the time of my life right now, because I’m not dragged into the minutia,” Leroy Breinholt said. “I get reports on the company by the end of the day on Friday and I can continue and go out and do what I love-commercial real estate.”

Congratulations Commercial Properties

on celebrating 35 years of success!

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CPI

ONE-STOP PROPERTY

elieve Commercial Properties Inc. when they say they “do it all.” Not only do they have a full-service brokerage with a powerhouse executive team, they have an all-encompassing property management division—and Cecil Yates. Yates, who came to CPI with 20 years of real-estate experience, not to mention a history in economic development, was the perfect fit to oversee the company’s property management and maintenance division. “Brian Ruddle (CPI’s General Manager) and I were talking very adamantly about adding a maintenance and construction division for a long time,” explains President and Designated Broker, Leroy Breinholt. “It was something we wanted to do for years, but we didn’t have the right people—until Cecil came on board.” Yates' expertise in land acquisitions and development, forecasting, contract negotiations, project management, site work, shell and core, office and warehouse tenant improvements and facilities management has not only helped to create an all-inclusive approach to property management, but has helped the division grow exponentially. “Cecil has been with the company almost a year,” says General Manager Brian Ruddle, “and he came up with a great management model, that’s helped us grow; it's a modular team-oriented approach between management and accounting personnel.” Growing so much, in fact, that CPI’s property management division acquired the building next door. Although the brokerage and property management divisions reside in separate spaces, their unity has remained steadfast. “We don’t look at ourselves as two different divisions,” Yates explains, “but view it as a strong working partnership.” Akin to the brokerage, the property management side of CPI is committed to a positive and purposeful work culture. “The team I’ve built with the help of the executive team is strong,” Yates says. “We want everyone to treat the property as if they own it themselves.” Ownership, Yates explains, is what helps propagate the success of offering a holistic property management style. “We look at projects in their entirety, rather than as an individual asset,” Yates says. And since CPI has its own certified staff from contractors to accountants, owners and tenants have all the resources they need at a discount from market rates. “There is a huge demand for services and decentralized management,” Yates says, “and our structure enables personal service, and provision of experts in their chosen field.” Already managing over six million square feet of commercial properties throughout Arizona, what can we expect for the future of CPI’s Property Management and Maintenance Division? More. “We’re in the top ten in terms of size in the state,” Yates says, “I can easily see us transitioning into the top seven. Our goal is to be on the short list of recommended firms for each property class—while maintaining our high standard of service across the board.”

88 | March-April 2016

MANAGEMENT SHOP

LEFT TO RIGHT BACK ROW: Julieanne Kucera, sales

& leasing support manager; Rich Boyd, director of maintenance & construction; Cecil Yates, director of property management; Jason Price, director of marketing & research; Lisa Hamilton, Scottsdale office manager

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CPI

CPI Charitable Giving A team effort

By ERIN DAVIS

hen it comes to community involvement, Commercial Properties Inc. is more than philanthropically minded, they’re “boots on the

ground.” As a company, CPI gives back to the community; as individuals, many employees physically give their time and energy both in the workplace and out, to ensure the betterment of their surrounding community. President and Designated Broker Leroy Breinholt and his younger brother and Partner, Tyson Breinholt, both spend 15 to 20 hours at their church, with most of the time dedicated to community outreach—Boy Scouts of America, ASU and several youth and young adult organizations. All employees have an opportunity to contribute their philanthropic suggestions and ideas. In fact, most charitable organizations that CPI forms relationships with, come internally. “Anyone can bring an idea to the table,” says Cecil Yates, director of property management. Yates, who serves as Fountain Hills Town Councilman and for the board of MAG Regional Domestic Violence, is no stranger to community involvement. “When I joined CPI, I thought it would be great to bring in Dress for Success Phoenix, a non-profit that helps provide women with professional clothing,” Yates says. “We were able to have them conduct a ‘dress code’ session here in our office--many of us learned a few things!”

ABOVE: Surfing with Nixon for Autism

CPI philanthropy at a glance Over the span of 35 years of doing business in the Valley, CPI has cultivated relationships with multiple charitable organizations, nonprofits and causes within the community. Take a look:

90 | March-April 2016

Brokers for Kids Boy Scouts of America ASU Pioneer Heritage Foundation for Scholarships Ryan House Andre House for the Homeless Hospice of the Valley Kids Need to Read Surfing with Nixon for Autism Dress for Success

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CPI

SPREADING THE WEALTH Dress for Success is one of many community organizations that CPI has formed relationships with. Brokers for Kids, Boy Scouts of America, ASU Pioneer Heritage Foundation for Scholarships, Ryan House, Andre House for the Homeless, Hospice of the Valley, Kids Need to Read and Surfing with Nixon for Autism are but a few others. “We don’t isolate our giving to one group,” says Jason Price, director of

marketing and research. “There are so many noble and worthy causes out there solely involved in fundraising— with no aid from the government. Those are things we always try to tap into—things that affect our local community for generations to come.” CPI’s “Turkey Trot,” for example, is just one example of how the company integrates fundraising into company culture. Purchases of “casual day stickers” and “balloon bust prizes,”

in addition to bids for silent auction items and pledges for race runners were all means of team-collaborative fundraising this past November. As a result of their combined efforts, the company raised $3,500 in donations for Ryan House, a nonprofit supporting respite, palliative and end-of-life care to children with life-threatening conditions, and to their family. “As a company and as individuals we feel blessed to have the success we do and to work with the people we do,” says General Manager Brian Ruddle. “When it comes to giving back we want to focus on those who haven’t been blessed like we have, or are struggling.”

TOP TO BOTTOM: Ryan House, Brokers for kids

92 | March-April 2016

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CPI

BALANCE IN GIVING The company also hosts a yearly Halloween costume party, Christmas party, KWANIS Wave Pool party and Broker retreat. Many of these events involve a philanthropic or community involvement component. “Our brokerage retreat gives people a chance to get to know each other in a relaxed way,” says Yates. “It breaks down the barriers and serves as a great equalizer,” Ruddle explains. “We give back to the agents by serving them. It makes everything we do throughout the year even better by establishing a level of trust.” The unity in CPI’s work culture is evenly distributed—whether evidenced in community giving, or internally within the company. “Balance is my favorite word,” says Breinholt, “and I strive to be of service and have humility.”

TOP TO BOTTOM: Brokers retreat, Turkey Trot

94 | March-April 2016