AZRE May/June 2020 by AZ Big Media

MAY-JUNE 2020

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he true test of Arizona’s commercial real estate industry is starting now. After an unprecedented 11-plus year run of economic growth in the United States, it appears that we’re heading into a downward cycle. Many economic experts were predicting a downturn in the economy in 2020, but no one could have foreseen the economic effect that the COVID-19 pandemic would have. However, since the last recession in the late 2000s, the Phoenix market has become a much more sophisticated place. Instead of relying almost exclusively on building new houses like the Valley did in 2004 to 2008, Arizona has seen more diversification. We have seen major corporations like State Farm, Carvana, American Express and Amazon develop large employment centers in the Valley. Aerospace companies, financial tech companies and logistics and warehousing companies all have built operations hubs or manufacturing facilities in Arizona in the last five years. Arizona appears poised to weather this latest economic storm much better than it did in 2008, and time will tell if those lessons learned more than a decade ago were remembered by the industry leaders in our state. One group that will be there to help drive the economy forward is Valley Partnership. In this issue, you’ll learn about how the organization is following its new strategic plan and how it’s guiding responsible development in our state. You’ll also learn about the forward-thinking efforts of companies and municipalities in Pinal County to ensure that the county was in prime position to take advantage of economic development opportunities. Also, we put a spotlight on multifamily development in Downtown Phoenix, as well as how the COVID-19 pandemic will affect healthcare facility design. And, like we do each year in AZRE Magazine, we show you the top producers for commercial real estate brokerage firms across the Valley. For the commercial real estate industry in Arizona, the challenge awaits. If you’re like me, you can’t wait to see how that challenge is met.

Steve Burks Associate editor, AZRE steve.burks@azbigmedia.com 2 | May-June 2020

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

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

CONTENTS

FEATURES 2 Editorâ&#x20AC;&#x2122;s Letter 8 Trendsetters 10 Executive Profile 12 After Hours 14 New to Market 16 Big Deals

20 Legislative Update

24 Top Producers

30 AZCREW 34 Data Centers

42 Downtown Phoenix

46 Healthcare

56 Pinal County

64 RED Awards 81 Valley Partnership

On the cover:

Aspire Fillmore General Contractor: BFL Construction Architect: CCBG Architects 4 | May-June 2020

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AZRE FORUM: MIDYEAR UPDATE AND FORECAST FOR COMMERCIAL REAL ESTATE. Helvetica Neue-75 Bold

For the 6th consecutive year, AZRE is bringing together some of Arizonaâ&#x20AC;&#x2122;s most influential commercial real estate leaders to share their thoughts for a mid-year industry update. Join us for an opportunity to connect, learn and network with the most impactful commercial real estate leaders.

AUGUST 6, 2020 | 3:00 - 6:00PM

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PETE BOLTON Pete Bolton Company

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

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DEVELOPER PANEL EAST VS WEST

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JOYCE K. WRIGHT Snell & Wilmer

CHRIS HOLLENBECK Crushman & Wakefield

JEFF FOSTER Prologis

PAUL ENGLER Alliance Bank

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Growing up in construction, I’ve had the opportunity to be involved in many

different types of projects. Let me tell you that being part of a project team is incredibly rewarding. There is something about building a community, participating in the growth of a city or town, and working hand-in-hand with our project partners that is exciting – the enthusiasm and positive vibes carry through every level of the construction process. I am proud to

be part of Haydon Building Corp who provides me with the opportunity to feel personally

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Seeing all the smiling faces once a project is complete fills my heart with joy and creates memories I will carry with me for a lifetime.

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TRENDSETTERS Clubhouse honored with Platinum Award

The National Association of Home Builders (NAHB) has awarded the Seven Desert Mountain clubhouse with the 2019 Best in American Living Platinum Award for best community facility. The state-of-the-art, 8,900-square-foot clubhouse is a stunning sculpture of steel, stone, masonry, and pocketing glass. Set against a magnificent high desert backdrop with heated patio floors, 40-foot cantilevered hemlock overhangs with evaporative cooling, indoor-outdoor gastropub and bar areas, five fire pits, two fireplaces, and two bocce courts

create a family-friendly community gathering place. “These design features, such as the radiant patio heating and overhead misters, extend the Arizona shoulder seasons so our members may enjoy the clubhouse and golf course nearly year-round,” said Bill Brownlee of The M3 Companies LLC, the project’s developer. Drewett Works was the architect/designer whose vision was executed by Newman Commercial Builders for developer The M3 Companies. Greey|Pickett served in the dual capacity of land planner and landscape architect/designer.

Local firm celebrates 25 years Arrington Watkins Architects, a locally-owned design firm built on the foundation of values and performance, recently celebrated its 25th anniversary with a new leadership team. Founded in 1994 by Lynn Arrington and David Watkins, Arrington Watkins embarks on its next 25 years with seven principals that include: • Mike Conder, RA, LEED AP, AIA, Managing Principal; • Matthew Gorman, RA, LEED AP, Managing Principal; • Mike Quinn, RA, Managing Principal; • Michelle Diaz, Principal/Business Manager; • Peter Sangiorgio, RA, LEED AP, Principal Architect; 8 | May-June 2020

• Kyle Swanson, RA, Principal Architect; • Patricia Thornton, DBIA, RA, LEED AP, AIA, Principal Architect. “Our focus is to continually get better at what we do,” said Conder, who has been with Arrington Watkins for more than 10 years. “In my role, I help facilitate that; the pursuit of perfection. David (Watkins) and Lynn (Arrington) built a great foundation. Now it’s up to the new leadership to take it to the next level.”

ARRINGTON WATKINS’ PRINCIPALS: (left to right) Mike Conder, Mike Quinn, Patte Thornton, Matt Gorman, Peter Sangiorgio, Kyle Swanson and Michelle Diaz. (Photo credit: David Schacher)

Arrington Watkins is a market leader in the public safety space. It was the architectural firm on projects like the Ak-Chin Indian Community Fire Station, The City of Tempe Apache Boulevard Substation and the Maricopa County Sheriff’s Office Property and Evidence Storage Facility.

Puente tapped to lead ABA

BOMA Greater Phoenix welcomes Farrell Quinlan as new Executive Director

The Arizona Builders Alliance (ABA) appointed Dan Puente of DP Electric as the organization’s 2020 chairman. In his role, he will facilitate discussions with the board of directors, utilize their direction and support to ensure consensus on industry issues and challenges, and help the organization achieve success in 2020.

“The number one issue facing our industry today is the shortage of skilled labor. Dan Puente has proven himself to be a true champion at raising public awareness and creating pathways for the next generation of competent builders,” said Brad Lloyd, the ABA’s 2019 chairman. In 2019, the ABA led the significant advocacy effort that repealed the sole use of hard-bid on K-12 construction projects. As a result, an estimated $500 million of projects were safeguarded, continuing to protect procurement alternative project delivery methods. “This year, one of the things I’ll be working toward is increasing our education and workforce development efforts,” stated Puente. “We want to create opportunities for young people to have early exposure to the construction industry by offering numerous opportunities for them to get involved.” Puente has been active in the ABA for 19 years and is serving his sixth year on the Board of Directors.

BOMA Greater Phoenix welcomed a new executive director in March, Ferrell Quinlan was introduced as the organization’s new leader. BOMA is the industry group that advances the commercial real estate industry through advocacy, influence, and knowledge. Quinlan formerly served as State Director for the National Federation of Independent Business (NFIB), the nation’s leading small business association. While at NFIB he authored landmark legislation reversing “driveby” trial-lawyer abuse of the Americans With Disabilities Act; and created legal protections for independent contractor employment relationships through a declaration of independent business status (DIBS) process. He replaces Tim Lawless, who left BOMA Greater Phoenix to become President at Commercial Real-estate Executives for Economic Development (CREED). Quinlan helped make Arizona the first state to require its regulators to offer an opportunity to correct rule violations before issuing a citation or fine. From 1997 to 2007 he served as a vice president for policy development, communications and marketing at the Arizona Chamber of Commerce and Industry. “I’m humbled and honored to be entrusted by the BOMA Greater Phoenix Board of Directors to be Executive Director during this extraordinarily dynamic time for Arizona commercial real estate,” Quinlan said. “I’m excited to get to work serving our members and advocating for the commercial real estate industry."

Broadstone project

to transform Uptown

A new project is being developed near Central Ave. and Camelback Road. The project, developed by Alliance Residential, will be the largest multifamily project in this area of Phoenix. Broadstone Uptown PHX will be built on the site of an abandoned hotel along Camelback Road, just east of 7th Avenue. The project will be five stories on a 4.4 acre site with 280 units. It’s believed this is also the first new, market-rate project built along the light rail northwest of Camelback and Central Avenue, illustrating how the light rail is impacting development. Jason Morris, partner at Withey Morris, PLC, said that work should begin by year’s end or early 2021. Morris said his team did extensive work getting the support of the neighboring community. “The neighborhood concerns were primarily traffic related (the fear of new residents cutting through residential neighborhoods to get out to arterial streets or the freeway),” Morris said. “That was addressed by numerous meetings, traffic studies and a commitment to assist in payment for neighborhood traffic mitigation.” George Pasquel III led the rezoning and land use efforts by Withey Morris on the project. The project was rezoned to the city’s new “Walkable Urban Core” district that encourage transit supportive land uses and pedestrian-oriented design. 9

EXECUTIVE PROFILE

Better together Sharon Harper’s success has been helped by her ability to form solid partnerships By STEVE BURKS

haron Harper is living proof of the value of strong partnerships. Based on her experience in a marriage that has thrived for more than 50 years, to her current work as president and CEO of Plaza Companies, Harper could conduct PhD-level classes on how to form successful partnerships. “My career has been built on incredible relationships, which gives me a great sense of accomplishment and of pride,” said Harper, whose list of industry awards and honors grows longer each year. “A true and long-term partnership is built on trust, ethics and 110 percent dependability and accountability — and a sharing of success and, sometimes, setbacks.” Under Harper’s guidance since its formation in 1982, Plaza Companies has enjoyed far more successes than setbacks. The company started out developing medical office projects and has steadily expanded. Today, Plaza Companies is a full-service developer of a wide range of products, from office, multifamily and mixed use developments that have transformed parts of the Valley. To date, Plaza Companies has developed more than 30 million square feet of projects, with more in the pipeline. Plaza Companies’ major projects have involved partnerships, with public and private organizations, alike. Projects like Skysong - The Arizona State University Scottsdale Innovation Center, Park Central Mall redevelopment and the TGen headquarters project all were built with the help of a star-studded cast of partners. Harper is proud of her work

10 | May-June 2020

“My career has been built on incredible relationships, which gives me a great sense of accomplishment and of pride” alongside organizations or companies that include the Arizona Governor’s office, the president and leadership of ASU, Creighton University, TGen, the Virginia G. Piper Charitable Trust, Banner Health, Dignity Health, GPEC, GPL, Arizona’s professional sports teams, as well as investor partners such as Holualoa Companies, Hyatt, Vi Living and Mather LifeWays. “I love connecting with my partners, my tenants, my investors, my colleagues, leaders such as our governor and elected officials, and my friends all the time,” Harper said. “I love to laugh with others. Nothing is better or more exciting than close connectivity and finding ways to stay on top of everything and on top of the world.” AZRE Magazine sat down with Harper to ask her what influences her and how she handles being a role model for other developers in the market.

AZRE: As you look back on your career, how proud are you of all of the things you’ve been able to accomplish in this industry? SHARON HARPER: I have a

great sense of pride in what Plaza Companies has accomplished. It started with an idea back in 1982 and has grown into a great success story with an excellent reputation. It’s important to me now that all members

of Plaza Companies now share this pride in what’s being accomplished.

AZRE: What one project gives you the most sense of accomplishment and why? SH: It would have to be SkySong,

The ASU Scottsdale Innovation Center. The redevelopment of an old and empty mall in a declining area of southern Scottsdale at the start of a major recession, and with significant neighborhood opposition, seemed like an impossible situation. But thanks to a big vision and a strong partnership between Arizona State University, the City of Scottsdale and Plaza Companies, SkySong has proven to be one of the most noteworthy turnaround projects we’ve seen in Arizona. We proved how a municipal, university and private partnership could work collectively to transform a region. SkySong, The ASU Scottsdale Innovation Center required true grit and determination, exceptional and resilient design and execution, an ability to stay true to a grand vision, and persistence every day. The story is one of exceptional success, with more than 2,500 employees from 60 companies now working there every day, and is expected to generate more than $1 billion in economic impact

annually, according to a study by the Greater Phoenix Economic Council.

AZRE: What is your favorite project (new build, redevelopment, etc.) here in the Valley that you didnâ&#x20AC;&#x2122;t work on and what about it appeals to you? SH: We live in north central Phoenix,

and I have been very impressed with several of the adaptive reuse projects that have taken place around the Central and Camelback area. The influx of restaurants and the revitalization of some of the retail projects in the area have transformed that part of town into one of the most desirable destinations in the Valley.

AZRE: Who was your biggest influence early in your professional life and how often do you think about their advice or influence on you? SH: I have been greatly influenced by

admirable people, including my parents and my husband (Dr. Oliver Harper). Having someone who unconditionally believed in me is incredibly empowering. I thank my parents for that from my early years, and thank my husband for that constantly. Believing in others is empowerment. I think I carry this forward every day, with my family, my company members, and those with whom I interact with daily. It is a great gift from to be able to truly empower others.

AZRE: Now as youâ&#x20AC;&#x2122;ve become an established, successful role model in this market, how often are you approached for advice and how do you handle those kinds of requests? SH: One of my favorite things is the

opportunity to connect with and meet with other professionals, both those starting their careers or those considering new and different options. I would say that I also benefit very much from meetings and the great ideas and questions discussed. There is always so much to learn from a new perspective and the chance to provide help and guidance. For someone like me who is truly interested in people and interested in growing every day, requests to meet and connect are exciting. 11

AFTER HOURS

TAKING FLIGHT From building planes to building airports By ENDIA FONTANEZ

andra Kukla is many things: an architect, a devoted wife and mother and, most recently, the firm president of DWL Architects + Planners, Inc. Kukla has been with DWL Architects for 20 years and succeeded Steve Rao as president in January 2020. She has worked on projects such as the terminals at Phoenix Sky Harbor International Airport and Phoenix Mesa Gateway airport, among others. “Architects are always so driven by their projects,” Kukla said. “They’re like my other children.” Kukla said her first real exposure to both architecture and aviation occurred during childhood, when she assisted her father, a retired Japan Airlines pilot, with constructing an aerobatic biplane in the family’s threecar garage. Additionally, Kukla has spent a lot of time on planes and in airports. She and her sister traveled alone to Japan to

12 | May-June 2020

visit family when Kukla was as young as six years old, and the girls’ mother, a flight attendant and pilot, worked for Air France for several years. By the time she reached college, Kukla decided she wanted to learn to fly, and spent one summer break studying and training to get her private pilot’s license. Despite her upbringing, Kukla did not realize that she wanted to specialize in aviation-focused architecture until she completed her Master’s thesis at the University of New Mexico. “I figured out I know a lot more about aviation than the average architect, and it’s really a great building type,” Kukla said. “I decided from that point that I really wanted to do aviation architecture, probably right around when I was doing my thesis for my Master’s degree.” Kukla said she sought out DWL Architects because she had heard about their work with architecture at airports and knew that the company would allow her to combine her two passions for architecture and aviation. “Airports are mostly happy places where people are starting a journey or ending a journey,” Kukla said. “They’re

meeting somebody that they haven’t seen in a long time, and that’s really amazing to think about as you’re designing these spaces, is that it’s an important place for our community to gather, to send off or to welcome home.” Before she became the firm’s new president in January, Kukla was Vice President of DWL Architects since 2005, the first woman to hold the position. She said the enormous amount of support from the firm’s previous presidents was crucial in her success. “Maybe sometimes it’s hard for people to recognize leadership in a person that’s much different than themselves. A male may not always recognize or see themselves in a young female working towards a goal in her own career, but (at DWL) they did. I think that that’s encouraging. It was very encouraging for me,” Kukla said. When she is not leading the company and designing airports, Kukla has a second full-time job as a mother to her 14-year-old son, which she noted is not uncommon for a professional woman. “People don’t talk about it but that’s the reality. As a mom, my family is sort of my outside of work focus. But I absolutely love it,” Kukla said.

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NEW TO MARKET A

MIXED-USE A AVIATION PERFORMANCE SOLUTIONS HEADQUARTERS GENERAL CONTRACTOR: Caliente Construction Inc. ARCHITECT: Dekker Perich Sabatini LOCATION: 5559 S. Sossaman Rd., Mesa SIZE: 24,000 SF VALUE: $9 million START/COMPLETE: February 2020/ January 2021

14 | May-June 2020

HEALTHCARE B NORTHWEST TRANSITIONS DEVELOPERS: NexCore Group GENERAL CONTRACTOR: Haydon Building Corp. ARCHITECT: David Stokes Collaborative PC LOCATION: 6200 N. La Cholla Blvd., Tucson SIZE: 56,250 SF VALUE: WND START/COMPLETE: March 2020/ Spring 2021

MUNICIPAL C PRESCOTT REGIONAL AIRPORT PASSENGER TERMINAL GENERAL CONTRACTOR: Willmeng Construction Inc. and Fann Contracting ARCHITECT: DWL Architects LOCATION: 6500 MacCurdy Dr., Prescott SIZE: 18,000 SF VALUE: $13.9 million START/COMPLETE: February 2020/ Spring 2021

OFFICE D THE REFINERY AT UA’S TECH PARK AT THE BRIDGES DEVELOPER: University of Arizona GENERAL CONTRACTOR: The Boyer Company ARCHITECT: Swaim Associates Architects LOCATION: Tucson Marketplace Blvd. and MLK Jr. Way, Tucson SIZE: 120,000 SF VALUE: WND START/COMPLETE: February 2020/ Summer 2021

INDUSTRIAL E ELWOOD LOGISTICS CENTER DEVELOPER: Tratt Properties LLC GENERAL CONTRACTOR: The Renaissance Companies ARCHITECT: Deutsch Architecture Group BROKERAGE: JLL LOCATION: I-10 and Loope 303, Goodyear SIZE: 1.3 million SF VALUE: WND START/COMPLETE: February 2020/ December 2020

EDUCATION F VISTA COLLEGE PREP - SUEÑO PARK DEVELOPER: Vista College Prep GENERAL CONTRACTOR: StevensLeinweber Construction, Inc. ARCHITECT: Carhuff + Cueva LOCATION: 1720 N. 45th Ave., Phoenix SIZE: 35,000 SF VALUE: WND START/COMPLETE: January 2020/ August 2020

'FOR RENT' PAYING OFF Christopher Todd sells five communities for $235 million By STEVE BURKS

he rise in the appeal of singlefamily, for-rent homes can clearly be seen in the Phoenix market. From 2015 to 2019, the Valley saw just over 3,000 single-family, for rent homes built. Compare that five year span to the almost 1,900 under construction in the Valley currently, and the trend doesn’t show any signs of slowing. One of the first companies to specialize in these types of communities, Christopher Todd, recently entered into a partnership with one of the largest homebuilders in Arizona, Taylor Morrison Home Corp. Taylor Morrison will buy land

16 | May-June 2020

and build the communities, complete with the Christopher Todd brand. Christopher Todd will then put its marketing and leasing expertise to work filling those communities. In the last two years, Christopher Todd invested more than $230 million into building communities in the Phoenix market, mostly in the western part of the Valley. In March, Christopher Todd sold five of their completed communities to The Inland Real Estate Group of Companies, Inc. (Inland). According to NorthMarq, which served as broker and provided financing, the sales price for all five is $235 million. “These communities were attractive because of their uniqueness, fast leaseups, high occupancy and rents,” said Matt Tice, senior vice president of Inland Real Estate Acquisitions, LLC. “They are innovative, luxury, single-family home rental communities that disrupt the

multi-family industry with smart gated communities, pet-friendly one- and twobedroom single-family smart homes, private backyards, and resort-style luxury amenities in ideal locations.” NorthMarq’s Investment Sales team led by Trevor Koskovich, Jesse Hudson, and Bill Hahn brokered the sale and represented the buyer and seller. Acquisition financing for the portfolio was arranged by James DuMars and Griffin Martin, managing directors of debt and equity for NorthMarq’s Phoenix office. Three properties closed escrow and two more properties are in escrow and will be closing when each respective community is stabilized at 90 percent occupancy. Based on the $235 million total, the average price per unit is $250,000, with an average of $279.23 per square foot — the highest in the West Valley. “Not only is it the third largest multifamily sale, by dollar volume,

in Arizona, it is the largest horizontal single-family sale, by dollar volume, in the nation,” said Todd Wood, CEO of Christopher Todd Communities. Oak Brook, Ill.-based Inland is one of the nation’s largest commercial real estate and finance groups. As part of the sale, each community will retain the Christopher Todd Communities name and branding, bringing added value to this transaction. “Inland owns and manages a diversified mix of properties across the country as well as more than 16,000 apartment units and the Christopher Todd Communities will complement our existing line-up of properties in Arizona and the surrounding area very well,” Tice added. Christopher Todd Communities On Greenway in Surprise, Christopher Todd Communities At Country Place in Tolleson and Christopher Todd Communities On Camelback in Litchfield Park were all included in the first round of transactions. Christopher Todd Communities At Marley Park in Surprise and Christopher Todd Communities At Stadium in Phoenix, are pending and will close relatively soon. A total of 943

homes were included in this transaction. “Over the last three years, we have created a dynamic combination of home designs, lifestyle, technology and resident engagement that are intricately tied to the Christopher Todd Communities brand. That brand commands faster lease ups, 25-30 percent higher rent rates, and 50 percent higher resident retention, which all lead to a strong investor value,” said Wood in a statement. “There is financial significance in what we have created, and Inland understands that. They are very savvy investors with in-house expertise commensurate with their $2 billion worth of real estate purchases over the last 18 months alone.” Christopher Todd opened its first community in the Valley in January of 2018 with its Greenway community. After the initial five communities (all of which were involved in the deal with Inland), Christopher Todd began work on its Estrella Commons community in Goodyear, its Happy Valley community at Happy Valley and the Loop 303 in northwest Peoria and its Mountain View community at Mountain View and Grand Ave. in Surprise.

Since its partnership with Taylor Morrison was announced, the company has announced three more communities are underway, all being built by Taylor Morrison. Included in that group is Christopher Todd’s first community in the East Valley. The 145-home community on Ellsworth, located on Ellsworth Rd. and University Dr. in Mesa, will open in the spring of 2021. The other two communities are on McDowell (91st Ave. and McDowell Rd. In Phoenix), and on Cotton Lane (N. Cotton Ln. and W. Garfield in Goodyear). Christopher Todd’s rise as a brand was helped by their amenities. Each home comes with a robust technology package that includes things such as smart doorbells, smart thermostats, smart locks and lighting, as well as a smart entry security gate. All of the smart technology can be used via a smart phone app. Other touches that are standard in Christopher Todd homes, and this trend has been copied by other single-family rental home builders, are pet doors, a fenced backyard area for each home, along with common areas that include pools and dog parks.

MULTIFAMILY/SALES

$65M | 242,292 SF

ARISTA AT OCOTILLO 3200 S. Dobson Rd., Chandler BUYER: Oregon Pacific Investment and Development Company SELLER: Gilbane Building Company BROKER: N/A

$55.4M | 268,400 SF

$49.6M | 195,694 SF

$54.1M | 228,021 SF

$42.76M | 152,254 SF

FAIRWAYS AT CAVE CREEK 2140 W. Thunderbird Rd., Phoenix BUYER: Cynosure Investments SELLER: Columbus Pacific Properties BROKER: N/A

MISSION SPRINGS 1311 W. Baseline Rd., Tempe BUYER: TruAmerica Multifamily SELLER: 29th Street Capital BROKER: Cushman & Wakefield

COUNTRY CLUB VERANDAS 1415 N. Country Club Dr., Mesa BUYER: Bridge Investment Group Partners SELLER: Weidner Apartment Homes BROKER: N/A CHRISTOPHER TODD COMMUNITIES ON CAMELBACK 12350 W. Camelback Rd., Litchfield Park BUYER: Inland Real Estate Group SELLER: Christopher Todd Communities BROKER: NorthMarq

RETAIL/SALES

$100M | 381,819 SF

DOUBLETREE RESORT BY HILTON PARADISE VALLEY 5401 N. Scottsdale Rd., Paradise Valley BUYER: Southwest Value Partners SELLER: Rockpoint Group BROKER: N/A

$62M | 214,236 SF

HILTON SCOTTSDALE RESORT & VILLAS HOTEL ARIZONA 6333 N. Scottsdale Rd. & 7200 E. McDonald Dr., Scottsdale BUYER: Southwest Value Partners SELLER: Rockpoint Group BROKER: N/A

$24.5M | 103,498 SF

CROSSROADS AT TOLLESON 9897 W. McDowell Rd, Tolleson BUYER: Tolleson Crossroads 19 LP SELLER: Trigate Capital BROKER: N/A

18 | May-June 2020

$21.5M | 231,924 SF

HILTON MESA 1011 W. Holmes Ave., Mesa BUYER: Linchris Hotel Corporation SELLER: American International Group BROKER: N/A

$12.25M | 7,554 SF

HILLSTONE RESTAURANT BILTMORE 2650 E. Camelback Rd., Phoenix BUYER: Hillstone Restaurant Group, Inc. SELLER: Robert L. Young BROKER: N/A

Itâ&#x20AC;&#x2122;s the big deals and the brokers who close them that make the market an interesting one to watch. Here are the top notable sales for the months of February and March. Sources: Daniel Zawisha at Cushman & Wakefield Research.

OFFICE/SALES

$61.5M | 292,102 SF

1501 and 1620 W. Fountainhead Pkwy, Tempe BUYER: LaSalle Investment Management SELLER: Cypress Office Properties BROKER: JLL

$22M | 98,539 SF

CANYON VILLAGE 18867 N. Thompson Peak Pkwy, Scottsdale BUYER: Thomas M. Foley SELLER: Laurus Corporation BROKER: Cushman & Wakefield

$10.17M | 109,310 SF

PROMENADE AT SOUTH MOUNTAIN 8222 S. 48th St., Phoenix BUYER: MA Engineers SELLER: Dunbar Real Estate Investments BROKER: CBRE

LAND/SALES

$16.4M | 100 AC

27 Ave and W. Southern Ave., Phoenix BUYER: KB Homes and Lennar Homes SELLER: Strategic Capital Management and Reeb Group Ltd. BROKER: Nathan & Associates

$16.2M | 37.38 AC

24125 N. 7th Ave., Phoenix BUYER: Copart of Arizona SELLER: Linda and Ronald McClure BROKER: N/A

$15.6M | 42 AC

Off N. Palo Verde St., Maricopa BUYER: D.R. Horton, Inc. SELLER: Willis Property Company BROKER: N/A

$15.3M | 29.06 AC

Bungalows on Camelback 4747 N. 99th Ave., Phoenix BUYER: Cavan Companies SELLER: Donald K. Gearheart BROKER: N/A

$13.3M | 474 AC

SWC Judd Rd. & Cooper Rd., Florence BUYER: Langley Properties SELLER: Fructuoso C. Castanon, Jr. BROKER: Cushman & Wakefield

$9.9M | 27,903 SF

3125 S. Gilbert Rd., Chandler BUYER: Gerald A. Phillips SELLER: Legacy Traditional Charter Schools BROKER: N/A

$9.2M | 50,912 SF

CAMELBACK MEDICAL PLAZA 5040 N. 15th Ave., Phoenix BUYER: Venator Development and Robert Moreno SELLER: Gold Coast Property Management BROKER: N/A

INDUSTRIAL/SALES

$122M | 184,306 SF

PAYPAL DATA CENTER 4010 N. 3rd St., Phoenix BUYER: Landmark Dividend SELLER: PayPal Inc. BROKER: N/A

$72M | 819,892 SF

AMAZON FULFILLMENT CENTER 16920 W. Commerce Dr., Goodyear BUYER: The RMR Group SELLER: Hines Global Income Trust, Inc. BROKER: N/A

$61M | 554,000 SF

WEST 202 LOGISTICS CENTER 3333 S. 59th Ave., Phoenix BUYER: Cohen Asset Management, Inc. SELLER: Trammell Crow Company BROKER: N/A

$32.8M | 418,651 SF

PARK SKYWAY BUSINESS PARK 12000 N. 132nd Ave., Surprise BUYER: Dalfen America Corp. SELLER: Mazal Realty BROKER: JLL

$29M | 250,918 SF

HOHOKAM 10 EAST PARK 1220 S. Park Dr., Tempe BUYER: BKM Capital Partners SELLER: Blackstone Property Advisors BROKER: N/A 19

LEGISLATIVE UPDATE Legislature working to counter economic effects of pandemic

he Arizona Legislature in March passed a “skinny budget” to provide certainty for state government agencies, public schools, local governments, and government contractors dependent on state funding. The bills passed by the Arizona Legislature are similar to continuing resolutions that provide funding at current levels into the next fiscal year. Arizona Association for Economic Development (AAED) has been paying specific attention to this year’s legislation especially since the pandemic, COVID-19 has everyone’s attention and is an economic disruption. For economic development purposes, this means that the Arizona Commerce Authority and Arizona Office of Tourism will receive the same appropriations each office received last year. The Legislature also passed an additional $50 million in COVID-19 relief. The money will flow through the Governor’s Office and is to be used for economic assistance during the state of emergency including: • Housing assistance, including payments to prevent foreclosure or eviction. • Monies for entities to provide services for homeless people, including shelter, clothing, food and transportation. • Economic assistance to small businesses with less than 50 employees, health care providers and nonprofit organizations.

20 | May-June 2020

Nicole Snyder AAED

• Monies for food bank operations. In addition to passing a budget, the Arizona Legislature sent a key economic development bill to the Governor before it recessed. HB 2771 extends the income tax credits for qualifying investments in qualified facilities and qualified research activity. It was signed by Governor Ducey on March 13th. The bill includes the following provisions: 1. Specifies that capital investments made in a qualified facility up to 36 months before submitting an application for preapproval are included in the computation of a tax credit. 2. Allows the ACA to preapprove applicants as qualifying for income tax credits for investments made in qualified facilities for any taxable year until January 1, 2031. 3. Extends the corporate and individual income tax credit for qualifying investment and employment in expanding or locating a qualified facility until January 1, 2031.

4. States that an international operations center that is certified after December 31, 2018 may not claim a corporate tax credit for renewable energy investment. 5. Specifies that a minimum investment in renewable energy facilities must be completed within a three-year period beginning on the date the initial application is received or by January 1, 2031. 6. Extends the corporate income tax credit for qualified research activity until January 1, 2031. 7. Specifies that a corporate individual tax credit for qualified research activity that is claimed for taxable years beginning before January 1, 2022 may be carried forward for 15 years. 8. Specifies that a corporate individual income tax credit for qualified research activity that is claimed for taxable years beginning on January 1, 2022 may be carried forward for 10 years. 9. Provides that a credit carry forward for qualified research activity from taxable years beginning January 1, 2022 may be carried forward up to 10 years from the year in which the expenses were incurred. 10. Redefines international operations center as a facility or connected facilities under the same ownership that are subject to specific investment thresholds and that selfconsume renewable energy from a qualified facility. Another economic development bill of interest includes an extension of the existing angel investment tax credit. AAED will continue educating lawmakers about the need for the angel investment credit and other economic development tools. About AAED: Serving as the leading statewide advocate for responsible economic development in Arizona since 1974, AAED’s foundation has been rooted in three fundamental pillars that continue to affect positive change and increase Arizona’s competitive position to attract investment and create jobs. Nicole Snyder is president of the AAED and is the healthcare business development & marketing leader for Orcutt | Winslow.

ABA rises up to meet challenge

ommercial construction has been experiencing incredible growth and activity throughout the past few years. The major issue that had been concerning us through these years is the shortage of skilled labor and much of our efforts have been in expanding the skilled workforce labor pool. The COVID-19 virus changed the entire American economy overnight. We went from nearly full employment to millions of workers on unemployment overnight. At the Arizona Builders Alliance (ABA), we knew that our mission would immediately begin to focus on worker safety and the financial well-being of our industry. The ABA is the Arizona chapter of two national commercial construction trade associations, the Associated General Contractors of America – Building Division (AGC) and the Associated Builders & Contractors (ABC). These national relationships became extremely valuable in the early days of the COVID-19 event. Other ABC and AGC chapters throughout the United States had experienced safety and government regulatory issues that we would soon be experiencing. Those chapters were 7-10 days ahead of Arizona. Because of this, the ABA was ready and able to provide solutions to expected upcoming issues. ABA demonstrated consistent, positive and calm leadership early on. We informed the entire commercial

Tom Dunn

Arizona Builders Alliance construction industry that if they needed information, we had it for them. Another benefit of our national trade association ties is that their advocacy and safety staff were on the front lines. Best practices for maintaining construction worksites were collected and distributed. Our web page became an aggregate of information. From safety to government actions and most of all to bring all construction together in a time when many had been distressed, isolated and on their own. We focused on statewide communication and maintaining these strong relationships to protect the worker and the business. Our safety committees, our advisory boards, our board of director meetings, our apprenticeship training, our management training all went virtual. The only programing that had been effected had been social events that are rescheduled.

ABA continued to focus on providing information to the membership. Over the first days of the COVID-19 event, our membership volunteered to get the word out on what the industry needed to know about federal legislation and state regulation to help get our industry through this difficult time. ABA exerted influence to maintain the financial well-being of commercial construction. The other states had begun discussions on what business is or isn’t essential. We knew that within days, our state leaders would begin to be pressured to make drastic decisions. ABA, along with many business coalitions, worked to inform our state government the importance of commercial construction and that indeed it is essential for the health and welfare of the entire state. The commercial construction industry’s voice is heard through our strong ABA, AGC and ABC advocacy efforts. Nationally, the AGC and ABC leaders were named to the President’s economic revival task force. In the state of Arizona, ABA is advocating for future action from the Governor to get Arizona’s economy back on track. Our suggestions include supporting all Arizona businesses, as when Arizona thrives, the commercial construction industry thrives. Tom Dunn is president of the Arizona Builders Alliance. 21

LEGISLATIVE UPDATE

Navigating the fallout NAIOP working to help members find solutions to economic issues caused by COVID-19 outbreak

AIOP the Commercial Real Estate Development Association, has been actively working to assist and support our members during the COVID-19 outbreak. This pandemic has brought economic and workforce challenges like no previous crisis. The speed with which the economy was shut down has led to a unique set of difficulties that make lessons from prior financial crises only marginally applicable. Public Policy Advocacy First, NAIOP has been advocating on behalf of our members at the city, county, state and federal levels of government. We have been in direct and frequent communication with Governor Duceyâ&#x20AC;&#x2122;s office as he works to manage the impacts of COVID-19 on public health and the economy. We advocated to have construction included as an essential service and were pleased to see that happen in Executive Order 2020-12 which prohibited cities from ordering the closure of essential businesses. As a result, important construction projects are moving forward using

22 | May-June 2020

Suzanne Kinney NAIOP

best-in-class health and safety protocols to protect workers. Every day, building owners are working tirelessly in partnership with the tenants that have been directly affected by COVID-19 to make reasonable arrangements for rent payments. These actions have served to avoid evictions and keep existing tenants in place. The Governorâ&#x20AC;&#x2122;s Executive Order 2020-21 put a stay on small business commercial tenant evictions through the end of May. Each tenant has a unique situation, and building owners are working with

them to find customized solutions. In many cases, this includes assisting the tenant in applying for federal Paycheck Protection Program loans or other disaster relief loans that can be used, in part, to cover rent payments. Owners are also working with their diverse group of lenders to address the forbearance that is needed in some cases as a result of reduced rental income. At the time of this writing, NAIOP is advocating that the Department of Treasury issue guidance on commercial mortgagebacked securities (CMBS) encouraging forbearance and other types of debt relief to help those building owners that have experienced dramatic reductions in rent payments. On the city level, NAIOP is working to disseminate best practices on virtual building inspections as well as virtual planning and zoning committee hearings and city council meetings. Our goal is to keep projects moving forward to the extent possible despite the inability to meet in person or travel. On the federal level, NAIOP advocated for deadline extensions

for 1031 exchanges. Section 1031 of the Internal Revenue Code permits taxpayers to defer recognizing capital gain on property under certain specified circumstances and timelines. Unfortunately, due to the COVID-19 outbreak and associated travel restrictions and office closures, businesses in the middle of this process were unable to meet the prescribed timelines. This means they would be required to pay a significant capital gains tax, further reducing liquidity in the real estate market. Fortunately, due to the joint advocacy of NAIOP and a coalition of affected organizations, the IRS recently extended the deadlines to July 15, providing much needed time for these transactions to be completed. We especially appreciate the efforts of our U.S. Senators Kyrsten Sinema and Martha McSally for encouraging the IRS to take this important action.

MEMBER RESOURCES To keep our members informed the Arizona Chapter of NAIOP has launched a weekly video series called Ask NAIOP. These videos feature members with expertise on topics that will help the

The speed with which the economy was shut down has led to a unique set of difficulties that make lessons from prior financial crises only marginally applicable. industry navigate through the specific challenges brought about by COVID-19. Initial topics include how tenants can use Force Majeure to adjust rent payments, the Governorâ&#x20AC;&#x2122;s Executive Order on commercial tenant evictions, and what actions building owners should take if someone who works in their building is diagnosed with COVID-19. NAIOP Corporate is offering webinars twice per week. Topics have included How to Approach Your Mortgage Lender; Liability, Insurance and Rent Abatement; What Will Industrial Development Look Like Post COVID-19, and many more. In

addition, NAIOP Corporate is offering all on-demand online courses free of charge to members during the COVID-19 outbreak. Each class is a $795 value. NAIOP members need not worry about paying their membership dues during the outbreak. Any members who is set to expire during the outbreak, will receive an automatic 3-month membership extension. Any members who have lost their job as a result of COVID-19 will be able to maintain their membership for the rest of the year at no charge. These members will be able to access NAIOPâ&#x20AC;&#x2122;s job bank and career resources to help them get a new position. Although it has been necessary to postpone or go virtual on our live events, we are still here for our valued members. We are working to reschedule the events our members love for the fall timeframe and to reinvent those that cannot be rescheduled into a virtual format. Connection matters now more than ever. Suzanne Kinney is President & CEO of the Arizona Chapter of NAIOP, the Commercial Real Estate Development Association 23

TOP PRODUCERS AZRE spotlights the commercial real estate brokers from Arizona who closed the most business in 2018

ABI Multifamily

Avison Young

1. (tie) John Kobierowski — senior managing partner 1. (tie) Alon Shnitzer — senior managing partner 1. (tie) Rue Bax — senior managing partner 1. (tie) Eddie Chang — partner 1. (tie) Doug Lazovick — partner

David Jarand — principal James DeCremer — principal Mark Seale — principal and director of brokerage services Matt Milinovich — principal Wally Hale — principal and director of tenant advisory services

NOTABLE DEAL:

The ABI Multifamily team of partners: John, Alon, Rue, Eddie, and Doug completed the sale of Town Center Apartments for $33,500,000. ABI represented both buyer and seller in the transaction.

Catalyst Commercial Group 1. Mike Leonard 2. Chris Ray 3. Bryan Colombik 4. Daniel Sheldon 5. Priscilla Annoual

NOTABLE DEAL:

Mike Leonard of Catalyst CG represented the buyer, Barrio Culinary Concepts on the purchase of the former Rock Bottom Brewery building at 7640 W. Bell Rd in Glendale. A new Barrio Queen restaurant will open there this summer.

Avison Young’s most notable deal of 2019 was the Tata Consulting Services five-year renewed lease totaling $2.2 million. The deal was a result of principal Wally Hale’s, continued relationship with TCS on a national basis.

CBRE

1. Rocco Mandala 2. John Lenio 3. (tie) Tyler Anderson 3. (tie) Sean Cunningham 3. (tie) Asher Gunter 6. (tie) Matt Pesch

7. Bruce Francis 8. Brad Anderson 9. Barry Gabel 10. (tie) Bryan Taute 10. (tie) Kevin Calihan

NOTABLE DEAL:

CBRE represented State Farm in the 350,000 SF sublease to Carvana at Marina Heights.

Cresa 1. Jason Shepard 2. Gary Gregg 3. Scott Maxwell 4. Ryan Orton 5. Brandon Clarke

6. Jason Wery 7. Ted Liles 8. Cory Shepard 9. Chris Walton 10. Rod Beach

NOTABLE DEAL:

Headquartered in New York City, Fox Corporation purchased a 114,000 square foot building in the ASU Research Park in Tempe to use as their global Central Broadcasting Facility.

Colliers International 1. Todd Noel – Office Properties 2. Cindy Cooke – Multifamily Properties 3. Ryan Timpani – Office Properties 4. Payson MacWilliam – Industrial Properties 5. Don MacWilliam – Industrial Properties 6. Rob Martensen – Industrial Properties 7. Mindy Korth – Capital Markets 8. Brad Cooke – Multifamily Properties 9. Jim P. Keeley – Scottsdale Office - Office Properties 10. Phillip M. Breidenbach – Office Properties 24 | May-June 2020

NOTABLE DEAL:

Concorde Commerce Center I, 2222 W Dunlap Ave, Phoenix. Brokers Ryan Timpani and Todd Noel adamantly pursued the healthcare technology company to consider the building for their regional headquarters requirement and submitted an unsolicited proposal to pique interest.

REAL ESTATE INVESTMENT SALES • FINANCING • RESEARCH • ADVISORY SERVICES

THE BEST OF THE BEST CONGRATULATIONS TO OUR TOP ARIZONA INVESTMENT PROFESSIONALS OF 2019 Marcus & Millichap’s Best of the Best represents the highest level of investment professionals in the industry. To be in this elite group of professionals means that these individuals truly epitomize the firm’s nearly 50-year commitment to unparalleled expertise gained though investment specialization, a culture of information-sharing and innovations in technology, research, and most importantly, client services. The success of our clients is celebrated by honoring our best of 2019.

CLIFF DAVID

STEVE GEBING

JAMIE MEDRESS

MARK RUBLE

PETER KATZ

Senior Managing Director

Executive Managing Director

Senior Managing Director

Executive Managing Director

PAUL BAY

RICH BUTLER

CHRIS LIND

JOSH TAMMEN

HAMID PANAHI

Senior Associate

Senior Vice President

First Vice President

Senior Associate

First Vice President

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

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

TOP PRODUCERS Cushman & Wakefield 1. Jerome Roberts 2. Eric Wichterman 3. (tie) Michael Hackett 3. (tie) Ryan Schubert 5. Christopher Hollenbeck 6. Thomas Jacobs

7. (tie) David Fogler 7. (tie) Steven Nicoluzakis 9. (tie) William Strong 9. (tie) Andy Markham 9. (tie) Mike Haenel

Daum 1. Robert Lundstedt 2. Chris Rodgers 3. Trevor McKendry

NOTABLE DEAL:

DoorDash at The Grand II at Papago Park – The firm represented both sides of one of the largest office deals in Phoenix in 2019. One of the Phoenix firm’s tenant representation brokers represented DoorDash on a full building lease for 714,916 SF at 1127 W. Roosevelt Way in Tempe.

NOTABLE DEAL:

The most notable deal of 2019 was the sale of Desert Gateway, a 173,000 square-foot leased multi-tenant industrial project, located at 909 W. Pinnacle Peak Rd and 1000 W. Vista Bonita Drive, Phoenix, Arizona, in the Deer Valley industrial submarket. Seller was Duke/ Griffin Pinnacle Peak, LLC, the buyer was Greenwood McKenzie. Purchase price was $24 million.

Insight Land & Investments 1. Tony Bagneschi 2. Ken Reycraft 3. (tie) Jeremy Lovejoy 3. (tie) Matt Rinzler 3. (tie) Brian Stillman 6. Mike Ratliff 7. Tracy Glass 8. Sharon Contorno 9. David Mount 10. Joe Werner

Kidder Mathews 1. Karl Abert 2. Mike Ciosek 2. Eric Bell 4. Michael Dupuy 4. Fletcher Perry 6. Darren Tappen 7. Brian Rosella 8. Rachael Thompson 9. Dylan Scott 10. Erik Marsh

The Standard on 29th is a 357-unit apartment complex located at 2912 E. Indian School Road in Phoenix. It was purchased by Urban Communities, a real estate development and redevelopment company that focuses on the creation and renovation of urban infill sustainable communities, for $30,050,000.

1. Rich Andrus - Dental/Medical 2. Tanner Milne - Medical/Office/Investment 3. Grafton Milne - Office/Child Care 4. Mark Haslip - Dental 5. Steve Berghoff - Medical/Office 6. Stuart Milne - Medical/Office 7. Geoffrey Waldrom - Office 8. Jason Triano - Medical/Office 9. Tom Ellixson - Industrial

26 | May-June 2020

Insight's Mike Ratliff and Tracy Glass brokered an $18 million sale of an aging, 99,575 square foot office building at 600 E. Curry Road in Tempe. Camden Property Trust bought the property and razed the building and will build a 397 unit luxury multifamily project called Camden Hayden II.

Marcus & Millichap

NOTABLE DEAL:

Menlo Group

NOTABLE DEAL:

Menlo Group advisors Grafton Milne and Tanner Milne facilitated the sale of 20,400 sq. ft. office space located at 1955 S. Val Vista Dr., Mesa. The property was one of the company’s first listings, and Menlo Group found multiple tenants for the building before negotiating the sale.

1. (tie) Cliff David – IPA Senior Managing Director 1. (tie) Steve Gebing – IPA Senior Managing Director 3. (tie) Jamie Medress – Executive Managing Director 3. (tie) Mark Ruble – Senior Managing Director 5. Peter Katz – IPA Executive Managing Director 6. Paul Bay – Senior Associate 7. Rich Butler – Senior Vice President 8. Chris Lind – First Vice President 9. Josh Tammen – Senior Associate 10. Hamid Panahi – First Vice President

NOTABLE DEAL:

Western Wealth Capital 12 - $211,000,000 – 12-Property Multi-Housing Portfolio “Our facilitation of the Western Wealth Capital 12 recapitalization was historic in the context of Greater Phoenix multifamily. No transaction of this magnitude within the workforce housing space had ever been previously executed. The offering generated significant interest because of its scale and strong underlying market fundamentals.

TOP PRODUCERS NAI Horizon 1. Laurel Lewis, Office 2. Lane Neville, Investment Sales (office and retail) 3. Shelby Tworek, Retail 4. Chris Gerow, Retail 5. Isy Sonabend, Industrial 6. Matt Harper, CCIM, Retail 7. Denise Nunez, Investment Sales (self-storage) 8. Troy Giammarco, Office 9. Gabe Ortega, Retail 10. Mike Gaida, Business/Industrial/Retail

NOTABLE DEAL:

Russ Warner, Andrew Warner and Victoria Filice brokered the largest sale, $16.4 million for a mobile home park in California.

Newmark Knight Frank Tom Adelson CJ Osbrink Mike Garlick, Chris Krewson, Mike McQuaid Tim Westfall Brad Goff, Brett Polachek Chris Canter Ryan Ash Joe Doucett Kathleen Morgan Trisha Talbot

SRS

NOTABLE DEAL:

NKFâ&#x20AC;&#x2122;s Capital Markets group represented the sellers, Lincoln Property Company and Goldman Sachs & Company LLC, in the sale of The Grand at Papago Park Center Phase I. The Class A+ office building located in Tempe was sold for $90 million.

1. Ed Beeh 2. Alan Houston 3. Robbie Petty 4. Chuck Gibson 5. Sean Lieb

6. Scott Ellsworth 7. Brian Polachek 8. Mike Polachek 9. Greg Valladao 10. Brad Balbo

NOTABLE DEAL:

SRS represented the buyer and seller in the sale of El Super Center at Camelback Road and 23rd Avenue. Ed Beeh and Robbie Petty also represented the tenant, El Super in the lease transaction.

SVN | Desert Commercial Advisors 1. (tie) Justin Horwitz 1. (tie) Paul Borgesen III 2. Rommie Mojahed 3. Beau Flahart 4. Mary Nollenberger 5. Carrick Sears

6. Jonathan Levy 7. Nicole Ridberg 8. Eddie Gonzalez 9. Danny Lee 10. Kevin Weller

NOTABLE DEAL:

Justin Horwitz and Paul Borgesen III have facilitated another transaction representing Fore Properties in the acquisition of the former Oâ&#x20AC;&#x2122;Neil Printing building for $9,325,000. The sale will bring some extraordinary real estate development for the 2nd Ave. & Filmore St. area over the next year. The development plans for a high-end mixed-use development.

Velocity Retail Group

NOTABLE DEAL:

1. (tie) Dave Cheatham 1. (tie) Darren Pitts 3. Brian Gast

Darren Pitts represented EBCO, Inc. the owner of four separate La-Z-Boy showrooms in Chandler, Goodyear, Tucson and Prescott Valley in the portfolio investment sale to VEREIT Acquisitions, LLC. Each building was backed by new leases with La-Z-Boy corporate. 28 | May-June 2020

Transwestern 1. Jim Fijan 2. Mark Stratz 3. Scott Baumgarten 4. Bill Zurek 5. Jim Achen 6. Justin Himelstein 7. Brian Zurek 8. Jack Fijan 9. Travis Dana 10. Kate Morris

NOTABLE DEAL:

Jim Fijan of Transwestern, along with Alex Hayden of CBRE, negotiated the $65 million sale of the former Henkel Corporate Center. An iconic, 367,000-square-foot office building at 7201 E. Henkel Way in Scottsdale. The building was renamed to Ilume after the deal took place in December 2019. Mark Stratz, Vince Femiano and Scott Baumgarten of Transwestern will be providing leasing services for the property.

West USA Realty 1. James Hill 2. Paul Blum 3. Howard Rudin 4. Tarja Panfil & Johnnie Panfil 5. Tony Micich

6. Michael Wood 7. Scott Burley 8. Tom Wolf 9. Rebecca Roberts 10. Rob Ryan

NOTABLE DEAL:

West USA's team brokered the $7,645,000 sale of the Lakeshore Hotel & Suites in Fountain Hills. The 104-room hotel was built in 2005 and sits across the street from Fountain Park.

DISTINCTIVE NAME. DISTINCTIVE PROJECTS.

480 829 5757

Holualoa Companies is a real estate investment firm managing assets that span the United States and Europe. Holualoa invests strategically in office, retail, industrial, multifamily, hotel and mixed-use properties. With a 35-year track record of success, and through some of the most challenging times our country has faced, our skilled and ambitious management team produces steady results through unsteady markets by leveraging our talent and experience to serve our partners, investors and tenants. We look forward to working with them to weather these difficult conditions.

HOLUALOA.COM

TUCSON • PHOENIX • LOS ANGELES • KONA • PARIS

We are proud to work with our partners during these challenging times and create distinctive projects for the benefit of our communities. 1365 N Scottsdale Rd, Suite 110 • Scottsdale, AZ 85257, USA

BRINGING YEARS OF EXPERIENCE TO A NEW DECADE

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AZCREW

Q A With AZCREW President Terry Martin-Denning

uring her sterling career in commercial real estate, Terry Martin-Denning has earned every deal, every accolade and every promotion. Her hard work and dedication to her career has allowed her to climb through the ranks at NAI Horizon for more than 30 years and now hold the title of CEO and designated broker for one of the leading firms in the Phoenix market. Martin-Denning is not just a leader for NAI Horizon, but for the commercial real estate industry as a whole, and she currently serves as president of AZCREW, which is the leading organization for senior-level executive women in the Phoenix commercial real estate market. AZRE Magazine was able to sit down with Martin-Denning and pose a few questions to her about her views of the commercial real estate industry and how AZCREW can help its members navigate this competitive, everchanging business world.

AZRE: Have you seen a shift in

company culture in the commercial real estate (CRE) industry during your career and is that culture more embracing of women? TM-D: During my 30-plus years 30 | May-June 2020

in CRE I have definitely seen a shift toward a culture that is more accepting of women in non-clerical roles. We have moved away from the “good old boys club” to a more inclusive and diverse mentality but we have a long way to go. I feel fortunate to work in Phoenix alongside many very successful women in all areas of commercial real estate. For many years, through AZCREW and other connections, we have supported each other and embraced a culture of trust, collaboration and encouragement.

AZRE: Have pay and hiring processes improved for women? TM-D: I believe the pay and hiring processes have improved slightly for women. There is still a significant gap in pay parity and that gap is much wider in senior level and C-Suite positions.

AZRE: How does the CRE industry rank in terms of attracting and retaining a diverse workforce? TM-D: I don’t know the specific industry ranking but expect CRE is near the bottom. I recently read that over 70 percent of the senior executive CRE positions in the US are held by white men. I expect firms that have a plan to attract and retain a diverse workforce will be the industry leaders in years to come. AZRE: What role can organizations like AZCREW play in improving the company culture of CRE industry companies? TM-D: AZCREW has the ability to promote diversity, inclusion and pay parity in the CRE industry as well as in other businesses by actively sharing CREW Network industry research. CREW has authored multiple white papers on various topics that affect women in commercial real estate and has conducted benchmark studies every 5 years since 2005 on the trends in pay parity, titles and positions and job satisfaction. AZCREW and our members play a critical role in promoting the value of diversity as a strategic business approach that will ultimately lead to better financial performance for businesses. We can improve company cultures through awareness and by encouraging and supporting members to be confident in negotiating on their own behalf. Educating managers and decision makers in their firms about misconceptions and conditions within their current culture that do not encourage or embrace diversity is a step toward improving the overall CRE industry culture. AZRE: What advice would you give a young CRE professional as they embark on their careers? TM-D: I am a big fan of setting goals and having a plan that fits your style and then executing that plan. Having a mentor or mentors in the industry who can guide you and be a sounding board when you need another perspective is important. Be your own advocate and don’t be shy about sharing your ideas and your successes.

READY TO PAINT? SO ARE WE.

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(602) 277-8541 GhasterPainting.com

AZCREW

Young Professionals A

ZCREW, the leading organization for senior-level executive women in the Phoenix Metro commercial real estate field, is dedicated to advancing the success of women in commercial real estate.

SAMANTHA PINKAL

AZCREW supports their 12,000 members worldwide through business development, leadership development, industry research and career outreach. AZCREW aims to create a dynamic and supportive environment for members

that promotes advancement through sharing knowledge and networking. Here’s how these four young professionals are making a difference in their industry and forging personal and professional connections with others.

HEATHER FOX

ABBY PEREZ

Years involved with AZCREW: 7

Years with current company: 1

Years involved with AZCREW: August 2019 - Present

How did you get started with AZCREW? I joined when I made a career change from operations to business development and jumped right in as a member of the Special Events and Programs Committee.

Years involved with AZCREW: AZCREW: 2 years, CREW Network (other chapters): 10 years

Economic Development Project Manager, City of Surprise Years with current company: 1

When someone asks you what AZCREW does, how do you respond? AZCREW is an industry organization that provides really excellent programming, training, education, and networking AND it promotes the success of women in commercial real estate by featuring them as subject matter experts at each of those events. What has been the most rewarding part of being involved with AZCREW? Being part of AZCREW is being part of a platform that allows women to build confidence in their careers and a network of supportive peers. 32 | May-June 2020

Senior Transaction Manager, CBRE Global Workplace Solutions, Supporting MUFG Union Bank, N.A.

What are some of the benefits of being involved with AZCREW? Primarily, I benefit from having a network of 12,000+ members across the globe. I can contact any of those members seeking career advice, business referrals, or specific market expertise. There is never a ‘cold call’ within AZCREW or our global CREW Network. What has been the most rewarding part of being involved with AZCREW? As a transplant to Phoenix, I’m grateful for being welcomed into this community by AZCREW members. Our members helped me with everything from restaurant recommendations to business connections- starting on day 1. Wherever you happen to live or work, CREW makes it feel like home.

Master of Real Estate Development, candidate at W.P. Carey School of Business

AMBER COLEMAN

Senior Production Analyst at CBRE Years with current company: 5

What are some of the benefits of being involved with AZCREW? There is a strong network of individuals seeking to help out in any way they can. I have had the opportunity to attend events and be integrated with other CREW members nationally via our internal online platforms. When someone asks you what AZCREW does, how do you respond? AZCREW is a strong network of industry professionals who are committed to gender equality and a strong diversity in the Commercial Real Estate (CRE) industry. Through the membership, a CRE professional not only gains access to the AZCREW benefits such as monthly luncheons and mentorship programs, but they also have access and ease of networking with other members via the online directory.

Years involved with AZCREW: 3 When someone asks you what AZCREW does, how do you respond? I would say AZCREW is an organization dedicated to advancing the success of women in commercial real estate. This is achieved through leadership, networking, and educational opportunities for our members and non-members in our community. What has been the most rewarding part of being involved with AZCREW? AZCREW creates such a dynamic and supportive environment that allows me to take risks by stepping outside my comfort zone to develop my communication and leadership skills while advocating for a cause I’m passionate about; the advancement of diversity, equity, and inclusion in commercial real estate.

SPONSORS PLATINUM SPONSORS Ace Building Maintenance Colliers International

THANK YOU TO OUR 2020 SPONSORS

GOLD SPONSORS CBRE | Industrial Brokerage Climatec, LLC VEREIT, Inc. Wells Fargo Commercial Banking Group

SILVER SPONSORS, CONT. Gallagher & Kennedy MaintenanceMart Marcus & Millichap R.O. I. Properties Sigma Contracting, Inc. Sonoran Property Maintenance, LLC ANNUAL LUNCHEON SPONSOR: NAI Horizon

SILVER SPONSORS Corporate Interior Systems (CIS) Cushman & Wakefield Eagle Commercial Realty Services

MEDIA SPONSORS AZRE Madrid Media

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DATA CENTERS

Infill or outskirts? Data center developers face challenges when selecting where to build By STEVE BURKS

he Phoenix Metro market has gradually become a major factor in the world of data center development in the United States. According to CBREâ&#x20AC;&#x2122;s most recent North America Data Center Report, Phoenix was the second-most active market in the United States, ahead of long-time primary markets like Silicon Valley, Dallas/Fort Worth, Chicago and Atlanta. Most of that data center activity has been occurring in the far reaches

34 | May-June 2020

of the Valley, in areas like Goodyear and far east Mesa. Large-scale data center developments like EdgeCore in east Mesa and Stream Data Center and Compass Data Centers in Goodyear get much of the attention. Also, Microsoft is building on all three of its sites in the West Valley and Google is getting permits for its site in that submarket as well. There is a new, large data center development that is just getting underway. QTS Data Centers, which

is a branch of QTS Realty Trust, Inc., is just beginning work on its second Phoenix location. QTS has been approved for 2 million square feet of data center product on an 80 acre site. Based on recent trends, it would be easy to assume that this new facility was being built in Goodyear or West Phoenix or Far East Mesa, but this new facility is a rare infill project. The new QTS facility, which is being built by DPR Construction, is located along McDowell Rd., between 37th and 40th

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DATA CENTERS Top Phoenix data center submarkets The majority of enterprise class data center developers and colocation operators maintain significant facilities in the Phoenix market, all with ongoing expansion plans as of 2019. The following are some of the competition in certain submarkets: TEMPE/SKY HARBOR • Iron Mountain Data Centers: With its acquisition of I/O Data Centers, Iron Mountain instantly became one of the major players in the market. The company has since nearly doubled the campus by adding 550,000 square feet and 48-megawatts. • QTS: Its presence in the market could more than double when it completes full build out of its planned facility at 40th St. and McDowell. The facility could reach up to 2 million square feet at buildout, making it one of the largest sites in Phoenix. Chandler/South Phoenix • Digital Realty: Its Chandler Price Road campus has over 520,000 SF and up to 60 MVA of power, not including future expansion. • CyrusOne: CyrusOne, starting in 2011, has now grown as one of the largest colocation providers here, with over 85 acres of secured campus and planned development exceeding 90 megawatts across two campuses in Chandler and Mesa. • EdgeCore: This new wholesale colocation provider located in the Mesa Elliot Technology Corridor (southeast Mesa) is delivering its first phase in 2019 and can offer over 1.25 million square feet and 280 MWs from its on-site substation.

center that can now offer up to 30 megawatts of both retail colocation and wholesale colocation. • INAP: INAP recently took over the Bank of America data center as its operator, with BofA downsizing into a colocation customer, allowing INAP to expand and offer colocation space in this 191,000 SF facility. DEER VALLEY • Aligned Data Centers: With its flexible data center design that can offer high density up to 50 KW per cabinet capacity, Aligned’s 51-acre campus can total 550,000 SF and 120 megawatts. Its second phase under construction will offer 200,000 SF and 60 MWs with a guaranteed PUE of 1.15. • Evocative: Co-located on Aligned’s campus where Aligned targets wholesale colocation users, Evocative Data Centers provides managed colocation in the same facility for customers of ~1 MW or less. • Flexential: In its 110,000 SF facility, Flexential offers 5 MWs of colocation space. GOODYEAR/WEST PHOENIX • Stream Data Centers: Acquired a 418,000 SF facility with 157 acres of land this year that can expand to over 2 million SF and 350 MWs at full build out. • Compass Data Centers: Its land site acquisition in Goodyear will allow it to construct a 350+ MW campus of turnkey data center build-to-suits.

• H5 Data Centers: H5 upgraded an existing 180,000 SF data

streets in Phoenix, just north of the Loop 202. “The reason that site was attractive to QTS was because of its location,” said Mark Bauer, managing director at JLL and the national director of JLL’s Data Center Solutions Group. “That is where a lot of the fiber optic connectivity is located and it’s close to the airport. There are challenges, but where do you find 80 to 100 acres in an infill site?” Bauer worked with QTS to land this property at auction three years ago. He said that it was rare for a day to go by without a multifamily broker contacting him about that piece of property. “QTS has a huge platform, and they 36 | May-June 2020

are in several big markets and have made their commitment to the Phoenix market and they are in discussions with several of their customers for the building in Phoenix,” Bauer said. “They are very optimistic that they will be going vertical by the end of the year.” QTS is working with SRP on locating a power substation on the property, which will provide the facility with enough power to operate two data center buildings. Earth work began on the property in early 2020. Finding an infill site this large for a data center, with all of the power and connectivity that they require, is quite rare. “It is a unique project, unique

Source: Site Selection Group, LLC

location and hard to replicate,” said Bauer. “I’ve worked with several other developers who are not in this market but want to be and we have looked for sites that are similar to that and they are very hard to find. And if there is a site of that size available, then there are challenges with it that make it more risky.” The risk in locating a facility in an infill location is being able to secure enough power to operate a data center, which uses in excess of 100MW at a typical location. If there is not a power source nearby, a data center developer would have to run heavy power lines from the closest substation to the facility, which can be very expensive,

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especially in an infill location near the airport, like the QTS facility. “It’s challenging, it’s time consuming and there’s no guarantee because you’re dealing with the airport and the FAA and they don’t move fast and typically they are going to require underground delivery of power,” said Bauer. “When you look at underground heavy power lines, those are very costly. The cost is ten-fold from going above-ground. The big draw to the markets like Goodyear and Mesa is the easy access to heavy power.” “The way most cities evolve is that the connectivity is always in the center of the city, and then power is always on the outskirts,” said Ian McClarty, president of phoenixNAP, which operates a data center location at 32nd St. and University in Phoenix. “You try to find a balance, and sometimes you get lucky and you find some areas that have access to power and they also have access to some fiber.” McClarty and phoenixNAP built their data center in 2010, so he has seen growth of the data center market in Phoenix and its steady migration out to the suburbs. When McClarty and phoenixNAP were working on developing their facility, they made sure they had secured enough access to power to support future growth. “What we did when we first built our facility, we actually had requested additional power draws from the utility companies,” McClarty said. “We had some special concessions that we were able to tap into and secured access to power for any future builds. So at some point in time, when I have to build a second facility, it will be near this facility in an infill location, because I’ll be able to run a lot of fiber line between the facilities and I have enough power to be able to build another facility.” For infill locations, the access to power and the lack of available lots are two challenges when data center operators are comparing them to 38 | May-June 2020

2019 Primary Market percentage of total data center product under construction

Source: CBRE Research, CBRE Data Center Solutions, Q2 2019

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locations in the exterior of the market. Utility companies like APS and SRP have been very active in building new substations in the suburban markets, both to power new data centers and other commercial development, but also that is where the majority of new single family housing is being built. One major advantage that infill locations have is connectivity. In the center of the Valley, there are more fiber optic cables that are the spine of the internet. Think of these cables as rivers that carry the information that flows globally on the internet or between servers in various locations around the world. Telecommunication companies install these fiber optic cables and will have Point of Presence equipment located in data centers, to serve as a main connection points for customers sending information through their system. A facility like phoenixNAP, which is located in the heart of the city, has dozens of these telecommunications 40 | May-June 2020

companies with equipment and fiber optic cable running directly into the facility. McClarty said the goal of phoenixNAP was to be the most connected facilities in the market, something he could accomplish in his central location. “Our goal as a company was to build the most inter-connected facility in the metro region. Period,” McClarty said. “That was our goal. and we’ve done a great job of adding unique, distinct providers that are not offered anywhere else in the metro region. We have all of these cool, international providers that are only offered in our facility and all of the other facilities have to interconnect back to us to be able to get access into those carriers.” A faster, denser fiber network lowers latency, a crucial factor for applications such as the Internet of Things, 5G wireless networks and self-driving vehicles. With so many carriers in its facility, phoenixNAP is an attractive location for companies that want fast connections to other markets, like California, without paying higher West Coast prices. Compare the number of provider companies with a presence at the phoenixNAP facility to the number at the CyrusOne Chandler

I facility. According to data from DataCenterHawk.com, the Chandler I facility has 11 providers with a presence in their facility, compared to phoenixNAP, which has more than 50. “I go after people who are really focused on telecom connectivity and they might be a small deployment with us, they might only put a couple racks with us, but I love those customers,” said McClarty. “They want to be the closest to the connectivity hub and get really inexpensive options to connect back to the carriers.” Many data centers do not need as much connectivity to serve their clients, which means a site further away from the center of the market makes sense, due to better access to power and greater availability to land. Also, in fast-growing areas like Goodyear, there are fewer hurdles to get over to get a building done. “You have to be able to deploy space within 90 to 120 days, that’s why these developers continue to build and have space available,” Bauer said. “Twelve months is a key timeframe for these types of buildings. The key is, where can they buy and be under construction and deliver within 12 months? Most often, that’s in areas like Goodyear or east Mesa.”

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DOWNTOWN PHOENIX The Adeline

Home is where the high rise is Downtown Phoenix seeing more multifamily development as people are drawn to urban core By STEVE BURKS

hen Hines began looking into developing its first multifamily project in Arizona, there were several attractive markets to choose from. Luxury apartment projects like the one Hines wanted to deliver to the Valley were hot commodities across the Valley, from Tempe to Scottsdale to the Camelback corridor in Phoenix, even out in the rapidly growing West Valley. Hines has an international portfolio of projects and has recently found tremendous success in the Phoenix office market with its Offices at Chandler Viridian project and its 100 Mill project. Riding that wave of success, Hines became one of a growing list of developers to be lured into

42 | May-June 2020

the Downtown Phoenix submarket, breaking ground in January on Adeline, a 25-story, 379-unit luxury for-rent residential high-rise community at the Collier Center in downtown Phoenix. “The state continues to have positive population and job growth and a segment of that wants to live in an urban environment,” said Chris Anderson, senior managing director and Arizona leader for Hines. “Once you determine demand, then it is what economics make sense for the risk you are taking and will a consumer pay for it. We believe they will, as downtown is in a real renaissance that has been experienced in many other cities this cycle.”

Hines is definitely not alone in taking a chance on multifamily developments in Downtown Phoenix. Since 2000, there have been 7,743 housing units built in Downtown Phoenix, according to Downtown Phoenix Inc., an economic development advocacy group for the Downtown Phoenix submarket. Of that 7,743 units, 2,353 were built in the previous three years (2017 through 2019) and included projects like The LINK PHX. That number will grow exponentially in the next two years, as there are 4,143 units under construction currently, nearly 2,700 of those units are expected to come online in 2020. Adeline will add to that total when it is completed in 2021. Hines began work on Adeline at a busy time for the market, with labor and materials costs on the rise. But with the revitalization of the Downtown Phoenix market in

full swing, the project looks to be another positive economic draw to the area. “The environment is great because demand remains consistent,” said Anderson. “We are not a high-rise market, so qualified labor is tough, but we have to start somewhere and you have to be patient.” Hines is confident that what it will be delivering to the market is first-class. The 480,000-square-foot building will be located at 222. E. Jefferson St. on 1.46 acres on the northwest corner of Jefferson and Third Streets, near two light rail stops — ideal for residents who want to enjoy the downtown lifestyle. The multifamily complex was designed by SmithGroup and will be built by Whiting-Turner Contracting Company. The community is expected to have 75 studio, 179 one-bedroom and 125 twobedroom residences. The residences will offer spectacular views with floor-to-ceiling windows. Plans call for the second floor, overlooking Jefferson Street, to have an outdoor junior Olympic-size swimming pool, a 2,800-square-foot fitness center, indoor great room with private and group seating, private conference areas and a community kitchen. Also, on the second floor, overlooking Third Street, will be elevated outdoor courtyards with an outdoor kitchen, fire pits with group and private seating and landscaped gardens. Other amenities include a dog spa, bike storage, a coffee bar and concierge service located directly next to the main lobby on the street level. The street entrance on Jefferson Street will give residents the feeling of walking into a luxury hotel. In addition, the building will have about 4,500 square feet of retail or restaurant space on the street level at the corner of Jefferson Street and Third Street. “I’m biased, but I think our amenities will be amazing, especially for an urban project,” said Anderson. “We have a large, private park, a large pool for laps, a rooftop dog park and generous sized units with nice finishes.” The Adeline, which was named for one of the first female leaders in Phoenix, Mary “Adeline” Norris Gray, joins a growing list of multifamily projects in Downtown Phoenix. Here are details about some of the other projects underway in the Downtown Phoenix market:

The Derby Roosevelt Row

DOWNTOWN MULTIFAMILY DEVELOPMENT SINCE 2016 These Downtown Phoenix projects were completed in the prior three years • 2017 Broadstone Arts District (280 apartments) • 2017 The Oscar (12 units) • 2017 Pure Fillmore (renamed Cortland Fillmore) (224 apartments) • 2017 ArtHaus (25 townhomes) • 2017 The Muse (367 apartments) • 2018 McKinley Row (18 units) • 2018 Broadstone Roosevelt (316 units) • 2019 Circa on Central (227 units) • 2019 Portrait at Hance Park Phase (325 units) • 2019 The Link Phase 1 (252 units) • 2019 The Stewart (307 units) These Downtown Phoenix projects are expected to be completed or begin construction in 2020 • 2020 The Ryan (330 units) • 2020 The Battery (276 units) • 2020 Kenect Phoenix (299 units) • 2020 Aspire Fillmore (254 units) • 2020 The Derby (222 units)

• 2020 The Adeline (379 units) • 2020 Broadstone Portland (162 units) • 2020 Portrait at Hance Park Phase III (209 units) • 2020 The Fillmore (342 units) • 2020 Alta Warehouse District (300 units) • 2020 The Link Phase II (204 units) Source: DTPHX.org

THE DERBY ROOSEVELT ROW The latest multifamily project in the highly sought after Roosevelt Row Arts Distrct has been in the planning stages for a few years but finally broke ground in February. The Derby Roosevelt Row project is the market’s first “small unit” apartment development. Derby Roosevelt Row will be located at 800 E. 2nd St., will be a 21-story high-rise featuring 222 residential units over six stories of above-ground parking. Hensel Phelps is the general contractor and Wilder Belshaw Architects is the architectural firm. Denver-based real estate private equity firm Ascentris is the owner of the very unique project. Over half of Derby Roosevelt Row’s 43

DOWNTOWN PHOENIX Aspire Fillmore

units will be studios, averaging 350 square feet. All 222 units will come fully furnished. Amenities will include a pool deck on the seventh level, a rooftop deck on the 21st level, and retail space on the ground level.

THE FILLMORE The Chasse Building Team is nearing completion of the latest High Street Residential project in Arizona, The Fillmore. Located at the corner of 5th Ave. and Fillmore St., Phase I of The Fillmore will feature 533,460 square feet of space in seven stories. The Fillmore will have 348 multifamily units, 480 parking spaces, market-defining amenities, more than 7,000 square feet of ground-floor retail space and an urban paseo spanning from 4th Ave. to 6th Ave. The Fillmore will feature traditional one-, two- and three-bedroom apartments – as well as alcove studios and junior one-bedroom units – ranging in size from 489 to 1,626 square feet. Building amenities include a clubhouse, a fitness center and a large pool deck. The building’s lobby will offer concierge services, a coffee bar, a ride-share lounge and a mail room.

THE RYAN The multifamily side of the highlyacclaimed Block 23 mixed-use project at 1st St. and Jefferson is now leasing apartments. The Ryan sits across The Fillmore

the street from Talking Stick Resort Arena and is in the heart of the Downtown Phoenix entertainment scene. The Ryan was developed by RED Development and is operated by StreetLights Residential. It features

330 units, ranging from 567 square foot studios to 1,500-square foot, two-bedroom corner units. The Ryan features a 5th floor amenities deck with a pool area that overlooks Jefferson St., as well as ground-floor restaurants and retail, including the first Fry’s Food Store in the Downtown Phoenix area.

ASPIRE FILLMORE The number of high-rise projects in the Downtown market continue to grow and much of that growth is coming in the north, along Roosevelt Row and Fillmore St. Aspire Fillmore is one of the latest projects to begin work in the area. The project is a 17 story, 254 unit luxury apartment building with ground floor retail space. Aspirant Development is the company behind the project, which was designed by CCBG Architects. The building will have two amenity levels, one on the sixth floor and one on the 16th floor, which will feature a pool and hot tub deck, along with a dog run.

44 | May-June 2020

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RIPPLE EFFECT How COVID-19 will change healthcare facility design By STEVE BURKS

hen the COVID-19 virus began spreading throughout the globe, the call to action rose up in the medical world. Healthcare professionals did their best to prepare for an expected wave of patients in need of treatment, some requiring standard levels of care, while many others requiring intensive care, including intubations. By and large, the healthcare community in the United States rose up to meet the challenge. Part of the way healthcare professionals prepared for what was coming, was by taking a hard look at the space they had available and how they can make better use of it to treat the maximum amount of patients. Some communities converted convention centers into treatment facilities. In Arizona, a closed hospital, St. Luke’s Medical Center in Phoenix, was activated and utilized by the Army Corps of Engineers to ensure there were enough beds to meet the growing demand. Valley architects sprung into action, as well, to help local facilities make the best use of their space. “Here locally, our focus has been on helping Banner Health,” said Craig Passey, vice president and health studio leader for SmithGroup. “Banner has reached out to their architectural and engineering partners in the community to help maximize their ability to accommodate as many patients as possible.” Passey said his firm helped Banner look into non-clinical spaces, such as conference rooms, dining areas or cafeterias, to see if they could be

46 | May-June 2020

activated as treatment areas. “The intent is to see how we can perhaps repurpose and maximize the number of beds they can get into their existing footprint,” Passey said. SmithGroup was also part of a group of firms that were contacted by the City of Los Angeles mayors office. The group looked into converting the Los Angeles Convention Center into a space to treat patients if the need arose. “The study was to understand how to work with the existing facilities and create a M.A.S.H. unit in the facility,” Passey said. “It yielded about 1,600 bays or stations. It also looks at some of the necessary support provisions that would be required.” Passey agrees that the COVID-19 pandemic and the stress it put on healthcare facilities around the country will be something that healthcare design firms like his will be examining closely. AZRE Magazine reached out to Valley architecture firms to get their perspective on what the pandemic revealed as issues with healthcare facility design and what architects can do to make sure the facilities are better prepared for the next pandemic. Below are some of their answers. For complete responses, visit azbigmedia.com.

AZRE: From a design and function standpoint, what are healthcare operators and engineers and designers learning about the limitations of their facilities during this pandemic? STEVEN STACK, president of Devenney

Group Ltd., Architects: Air distribution systems are not designed to provide the

amount of negative pressure required to create isolation spaces for COVID-19 influx. Negative pressure rooms are distributed across hospital units by design, to deal with the need across different clinical specialties. What is needed with COVID-19 is a large cohort of negative pressure rooms, notdistributed.

CARL NELSON, partner, healthcare

leader at Orcutt | Winslow: Most facilities or organizations are realizing they are ill-prepared to handle the surges they are experiencing especially when it comes to converting existing spaces into temporary ones. Acuity has a tremendous impact on what spaces can be converted more readily than others. We are finding that it is difficult to convert large open areas such as conference and training rooms into high-acuity spaces. However, they can more easily be converted into non-COVID holding or observation units fairly quickly. Another major limiting factor is just availability of any unoccupied space. We are seeing the lack of space resulting in temporary “tent structures” or make-shift structures.

JOHN CANTRELL, principal, design leader at Orcutt | Winslow: One of the biggest concerns of hospitals is managing the flow of visitors to the right service line for care. Hospital facilities managers and administrators are telling us that people infected with COVID-19 are showing up at any entrance to the campus and wandering around until they find someone to assist them. Two observations are being made regarding this: One is

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that medical campuses have too many uncontrolled access points; and two, the emergency department needs to be expanded virtually (think telemedicine) or via remote screening areas outside of the emergency department proper.

AZRE: To your knowledge, what are some creative ways healthcare facilities are currently adapting (or preparing to make adaptations) to accommodate the expected spike in patients? ASHLEY MULHALL, senior associate,

high performance and sustainability leader at Orcutt | Winslow: Most large facilities have in-house 3D printing capabilities and we are seeing these reconfigured to manage shortages of personal protection equipment (PPE) and other equipment such as ventilator parts. This out of the box thinking could transform supply chain going forward.

J.C.: To comply with the Department

of Health’s requirement to increase bed capacity by 25 percent, with a 50 percent capacity increase by late April, we’re working with Honor Health to assess their current facilities and specifically how we can repurpose underutilized space to accommodate general patient rooms. This will free up beds within

48 | May-June 2020

the hospital for COVID-19 patients. A rehab gym space has been identified at the North Mountain Campus of Honor Health that can fill the need to increase capacity to 50 percent. S.S.: Moving triage of patients to tents outside of emergency department. Current facility examples of parking lots and public spaces being empty and reducing overall parking need. This allows for patients to be “pre-screened” prior to entering the hospital and infecting others or getting infected.

AZRE: Once we are clear of this current crisis, what do you feel will be the first design change we will start seeing more of in healthcare facilities? J.C.: One immediate change we

expect to see is the concept of “Social Distancing” designed into all healthcare waiting areas. The days of one large waiting area may be a thing of the past. Smaller enclave waiting space that separate sick from well visitors. Private spaces within emergency departments or doctors’ offices where you can wait as a care giver to a child or parent.

S.S.: Health systems will need to plan more strategically around which facilities in their systems should

house “routine patient care” and which are equipped for disaster protocols. Patients could be better triaged across a healthcare system by allowing for routine day to day operations to function at a “non-disaster” facility. Put a higher focus on capabilities of the lab and enhancing or expanding capabilities in order to handle increased testing.

JENNIFER WILCYNSKI, interior designer at Orcutt | Winslow: I believe one of the things that will come out of this pandemic is more physical barriers between our caregivers and the public. We are now seeing acrylic screens at the grocery store while we check out. We will need to consider the psychological impact of all involved – consider going from open nurse stations to enclosing them in “glass bubbles”. Do we prioritize our staff’s personal safety over open communication? I think the answer to that is a resounding “YES!” We are likely to see more ancillary pieces of furniture to house personal protection equipment (PPE) for the professional and public alike. And, we’ll need a supply chain to ensure they are available to all our healthcare facilities.

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AJ Thomas serves as principal and healthcare sector leader for Corgan. He provided the following five examples of how healthcare facility design and function may evolve due to the COVID-19 pandemic.

AJ Thomas

Craig Passey

Ashley Mulhall

Jennifer Wilcynski

AZRE: How do you expect architects

will approach coming up with creative solutions to facility issues that arose during this current pandemic?

J.C.: Architects and designers generally apply their skill sets to solving existing problems that they can see, when in fact, we need to expand our design processes to look ahead and predict problems we need to solve before they happen. In a Design Intelligence article by Michael Lefevre on Foresight he writes: “Foresight is intentional and can be developed as a form of intuition and data-enriched visibility. Those who have it, start by pausing to look. Where are the beneficial Black Swans of our industry – and who can see them coming?” He goes on to suggest that by pooling our intelligence to see collectively can we plan for unpredictability. The message is clear – to solve these problems and those in the future it will take the collective thinking of healthcare providers, architects, designers, medical simulation modelers, construction experts and manufacturing industries to come together and to look ahead. To see the next Black Swan coming we must be looking.

S.S.: As a Joint Commission requirement, every hospital must 50 | May-June 2020

Carl Nelson

John Cantrell

Steve Stack

regularly conduct a hazard vulnerability and risk assessment relative to their catchment area. This includes public health emergencies such as a pandemic. There are three key essentials necessary for maintaining access to healthcare during disasters or emergencies: safeguarding human resources, maintaining business continuity and protecting physical resources. Required disaster planning includes emergency management training and coordination with local officials and first responders in a proactive, drill/planning scenario. We would expect architects and contractors to play a role in future drills and planning; in addition to seeing revisions made to individual healthcare facilities’ emergency management plans as a result of lessons learned through the COVID-19 pandemic.

C.N.: In a way, healthcare architecture has been searching for the next trend. Previous trends include BIM, Evidence Based Design, LEAN / IPD and most recently Behavioral Health. You will find that every healthcare architect will likely proport that they have been involved with surge projects and will find angles to leverage that experience. What we really need to focus on is how we take the lessons learned and apply them to future events AND other areas within healthcare design.

1. Manage safety and infections (through operations) • Eliminate Lobby waiting. Enable patients to wait in their car in the parking lot, implementing just-in-time operations. • Increase use of telemedicine for follow-up patients. CMS has loosened the regulations for telemedicine in response to the COVID-19 pandemic. Telehealth services may now be delivered to Medicare beneficiaries by phone as long as video capability is available. • Install temperature screening devices at entry doors for ambulatory facilities. 2. Manage safety and infections (through design and 3D print) • Hands free door opener, we have the ability to 3D print these hands-free door openers. One less touch point for our caregivers. 3. Increase bed capacity • Convert a single patient room to “manage” multiple patients. • Rapid prefab construction for emergency response through a partnership with DIRTT for temporary and new facilities. • Identifying and converting building typologies in the community (motels, dorms, and office buildings) to manage overflow capacity. We are currently working on a feasibility study with a developer and the Governor’s office in Texas to relocate less acute care to nontraditional spaces (office building) to free up hospital bed capacity. 4. Increase Isolation rooms • Change in HVAC systems and filtration protocols. Shared air is a problem. We have seen our clients retrofit window A/C’s to patient rooms, to temporarily convert hospital rooms to isolation rooms. We can help facilitate an engagement with our MEP partners to work out the ideal solution. 5. Address shortage of medical equipment • With the looming threat of medical equipment shortages during this pandemic, 3D printing is emerging as a potential solution. Corgan has a fabrication shop with 3D printing capabilities to assist with emergent prototyping and production for critical shortages.

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HEALTHCARE

BUILDING FOR THE NEXT GENERATION Senior living facilities changing with the times By STEVE BURKS

uch of the focus for modern product design is on how the next generation will embrace a product or concept. Terms like Millennial or Gen Z are thrown around when retailers talk about attracting new customers, and their needs and wants are often at the forefront of how something is designed. The changing demands of the customer are also at the front of mind for developers of senior living communities. As Americans age, the needs and preferences of those moving into senior living facilities change. The challenge for the modern senior living designer and builder is to anticipate what the next generation will want.

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“If you think about our original communities, they were 100 percent independent living,” said Nicolle Blais, chief operating officer for Statesman USA, part of The Statesman Group of Companies. “When we started to see a changing need in our existing resident and incoming resident, we said, lets make some adaptations within the building and let’s offer assisted living. And then, let’s offer memory care and then let’s get creative with some of the lifestyle offerings that we have. “We’re very adaptable and we try to design the building to give us that flexibility for adaptability as we change our programs along the way.” Blais leads the Statesman USA team that is currently building the company’s latest senior living community, The Manor Village at Desert Ridge, which is located in the highly sought after North Phoenix submarket, along Deer Valley Dr., west of 56th St.

The Statesman Group has been a developer and builder since 1976, starting in Canada and operating in Arizona for the past 25 years. The company specializes in single-family, multi-family, resort and senior living communities. The Manor Village brand is the company’s senior living component. The Manor Village at Desert Ridge facility is expected to be completed by the end of 2020, with independent living residents moving in first. After getting all of its licenses secured, Blais said the facility hopes to begin welcoming assisted living and memory care residents by Summer of 2021. Blais and the Statesman team is very excited to bring this new community to market and she feels that the company’s reputation might be its biggest selling point. Statesman handles all facets of the planning, development and building of the community, as well as its operations, in house. “We know that in the senior living industry a lot of owners will outsource the operations and the food service and the care, we do everything ourselves,” said Blais. “So, being our own developer, our own general contractor and our own operator, we really focus the time and attention on

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HEALTHCARE the design of the communities from an operations perspective, but also from a resident perspective.” Blais also believes that Statesman’s all-around focus on the community makes it an attractive option for seniors and their families when they are looking for a place to live. “We’re family owned and operated, so to our future residents and their families, that’s really important to them. We’re not a merchant-style builder, where we build the building, fill it and then flip it,” Blais said. “You see it many times, senior facilities change hands multiple times, which means new management, fee increases, ect., ect. So, they have peace of mind knowing that it’s family owned and operated, and we’ve been doing it for 25 years and we bring all of that knowledge to this project. “We put our blood, sweat and tears into this community, and our hearts as well. So I think that is a sure value-add for our future residents.” The modern senior living facility serves three unique functions for its residents as they age. First, it serves as a new home for seniors who are still active and independent and don’t require any additional care to go about their daily life. Second, it serves as an assisted living facility for seniors who require special care due to physical limitations. And finally, it serves as a place that seniors with cognitive or memory issues can live and receive the kind of care that helps them remain active and aging gracefully. The challenge for the modern senior living facility is to incorporate all three of those facets into a facility, without losing the sense of it being first and foremost, someone’s home. “We want it to be graciously appointed, we want it to be beautiful, but it has to be warm and inviting and home-like,” Blais said. “Our owner (Dr. Garth Mann) has been very involved in the design of the Manor Villages, and he’s created magic. Every community has a beautiful, warm, home-like feel. “You recognize that it’s someone’s home, but it still allows us to function as an operating entity and provide the care and the services, because it’s a balancing act, for sure.” The Manor Village at Desert Ridge 54 | May-June 2020

will feature suites that range from 700 square feet up to more than 1,000 square feet for the independent living residents. The Manor Village is not a buy-in community, instead, residents are on month-to-month rental leases and all expenses, from utilities to housekeeping to even a meal plan, are included in the rental price. The suites will have high-end finishes and full kitchens. The residents will be encouraged to decorate their homes as they wish. The layout of the suite is easy to navigate for the residents, making their day-to-day activities easier as they age. Outside of the individual suites, the facility will have many community spaces to encourage socialization, a large community dining room, a bistro and general store-like space, as well as a pool, outdoor dining area, rooftop patios, a 50-seat theater and a fireside lounge for enjoying a drink and socializing before or after dinner. The facility will also have underground parking for those residents who are still driving, as well as a 5,000 square foot spa and salon that will offer massages, manicures, pedicures, haircuts and more. Residents will also have access to facilities at the neighboring Montreaux luxury apartment complex, which is also owned and operated by Statesman. All told, the senior residents at Manor Village will be living at a luxury apartment complex, with all of the

amenities that come with it. “We will have 196 suites, total, with the third floor being independent living, the second floor is assisted living and we will have two neighborhoods of Our Hearts Memory Care on the main floor,” Blais said of the layout. Another challenge of the modern senior living facility is making sure they have the staff to provide services to the residents, be they independent living, assisted living or memory care resident. Blais said that Statesman puts a lot of time and energy in attracting and retaining the best staff in the industry. They will have a wellness director that is a registered nurse (RN) and the facility will also have at least one Licensed Practical Nurse (LPN) on site at all times, sometimes multiple LPNs. For residents in the memory care communities at Manor Village, there will be a full-time recreation director, a recreation therapist and an activity coordinator. They will also have a part-time musical therapist providing programming for residents. “We know the impact that music therapy can have on our residents and it’s an important thing for us,” Blais said. “We’re very focused on providing lifestyle enrichment activities within the memory care community. We do regular personalized wellness evaluations and we want to make sure that the care that we’re providing is personalized for that individual.”

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PINAL COUNTY

LAYING THE GROUNDWORK

Pinal County has infrastructure in place to handle development boom

By STEVE BURKS

little patience and a lot of planning is beginning to pay off in Pinal County. Public officials and private companies with the same vision have laid the groundwork, literally, for economic growth in the county. The towns and cities in the county have invested millions in infrastructure projects like roads and water and sewer; while private

companies also put their money into ensuring there was ample electricity and plots of land to build on. Combined, those entities have created an environment that is ripe for an explosion of development. â&#x20AC;&#x153;The private sector has really stepped forward and set the groundwork for business development down in Pinal,â&#x20AC;? said Jackob Andersen, president

LUCID PLANT: Current state of plant construction. (Courtesy Lucid Motors)

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PINAL COUNTY MAJOR PINAL COUNTY PROJECT UPDATES Lucid Motors Manufacturing Plant

Attesa

In the first quarter of 2020, the long-awaited advanced car manufacturing facility in Casa Grande began to really take shape. The exterior of the two buildings, which total 820,000 square feet, is nearly complete as of mid-April, as construction teams made tremendous progress on the site. In February, Lucid Motors CEO Peter Rawlinson toured the facility, which was primarily exposed steel framing at the time. Work is reportedly ahead of schedule and in a blog on the Lucid company website, Rawlinson said, “This purposebuilt factory will serve our needs precisely because — as with the Lucid Air itself — there were no constraints on designing it exactly as it should be. Seeing these vast, multistory structures rise according to plan confirms that we are indeed on track to begin production here later this year.” Rawlinson also noted that Lucid will use 67,400,000 pounds of concrete and 11,353,800 pounds of steel in 4,316 prefabricated pieces to build the factory. The company hopes to see the first electric vehicles roll out of its plant before the calendar turns to 2021.

In December, Attesa submitted its final site plans to Pinal County for its Arizona International Raceway complex. The motor sports racing facility will be located on 2,300 acres in Casa Grande, just south of Interstate 8 and west of Bianco Rd. The motor sports facility will be built in two phases, with the first being a 2.65 mile professional track with 16 turns and elevation changes. Phase 2 will add another 1.6 miles to the track and include the addition of a driving school and an off-road track. The track will operate based on membership plans. Members will have access to the track 20 days a month, as well as have access to private garages, an RV park and more. Danrick Builders hopes to break ground before Summer.

Nikola Motors Manufacturing Plant While Nikola has already established a research and development facility in Phoenix, the company’s 1 million square foot manufacturing plant is still in the planning and design phase. The plant will be located in the Inland Port Arizona industrial park in Coolidge, just west of State Highway 87 on Hanna Road. Jackob Andersen, president and CEO of Saint Holdings, the developer of the Inland Port Arizona, said the plant is on track to break ground late in 2020 or early 2021.

and CEO of Saint Holdings, which is leading the development initiatives in Pinal County. “Being ready and having shovel-ready projects with infrastructure in the ground, that’s how we win projects like Lucid Motors, like Nikola. It was water, power and sewer, ready to go, right on site.” Private utility companies like SRP, APS, Tucson Electric Power have put in substations, and generating stations in the county in the last decade. SRP’s Coolidge Generating Station, which has a 575 megawatt capacity, was completed in 2011, just 10 years after SRP opened its Desert Basin Generating Station in Casa Grande. And both APS and SRP have a major solar generating presence in the county, with the APS Saguaro Power Plant and the SRP Pinal Central Energy Center. “One of the things that site selectors 58 | May-June 2020

Nacero Inc. Manufacturing Facility In late March, Nacero Inc. announced its plans to build a $3 billion facility that converts natural gas to gasoline. The facility will be located on Maricopa-Casa Grande Highway in Casa Grande, across from Abbott Nutrition and Frito-Lay facilities. The company said it hopes to begin construction on the facility in 2021 and be completed over several phases by 2025. The plant will produce 35,000 barrels per day of cost-competitive, lower carbon footprint, zero sulfur gasoline. According to Nacero, the project will generate an estimated 2,000 jobs during construction, 265 high-paying, permanent jobs in rural Arizona after completion and give Arizona a measure of gasoline independence and supply diversity for the first time.

tell us that there’s a lot of factors other than the price, how much infrastructure do they have to build?” said Tim Kanavel, economic development program manager for Pinal County. “A lot of those things are already in place in Pinal County. We’ve got more electricity in this county than we know what to do with. We’re juiced up.” Cities in the county have also done their part with key services like water and sewer delivery and treatment. “The council did something before the recession in 2007 or 2008, they decided to expand our waste water treatment plant,” said Casa Grande mayor Craig McFarland. “They doubled the size of it and spent a lot of money on an expansion and that really has also set us up for success. If we didn’t have the sewer capacity, we wouldn’t be putting in a Lucid Motors plant.”

McFarland also touted the fact that the county has three major gas pipelines running through it, as well as a major rail line. Coolidge city manager Rick Miller said the rail line that runs through the county was a big part of the reason Nikola Motors decided to build its first manufacturing facility in the area. “That was one of the real good things about the location they chose (in the Inland Port Arizona industrial park, which is in Coolidge boundaries),” Miller said. “Everything follows infrastructure and the backbone for a lot of these companies is either rail or your interstate access for their transport.” The gas lines are the major reason that Casa Grande was able to lure Nacero Inc. into the city. The company plans a $3 billion facility that will

Advantage Maricopa, AZ: Quality of Life and Business Environment By: John D. Schurz President and General Manager Orbitel Communications, LLC Chairman, MEDA Board of Directors

As we navigate through these uncertain times, and strive to conquer this disease, we must not lose sight of the aspirations we all share for a prosperous and healthy future for ourselves, our families and our neighbors. The City of Maricopa and Maricopa Economic Development Alliance (MEDA) are tightly bound by a deep and abiding commitment to our greatest asset: our people. We are working diligently to provide resources, information and support to safeguard our residents and businesses. As a community and as a nation, we will emerge from this crisis stronger together.

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ADVANTAGE MARICOPA, AZ: Your best future is here.

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MAJOR LOCATION ADVANTAGES Highly Skilled and Educated Workforce – 66% with Some College or Higher 2 International Airports within 40 Miles Abundant Land Available for Business and Industry

Easy Interstate Access – I-10 and I-8 178,854 – Available Workforce within a 30-Minute Commute Freight Rail Service – Union Pacific’s East West Line

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PINAL COUNTY “Being ready and having shovel-ready projects with infrastructure in the ground, that’s how we win projects like Lucid Motors, like Nikola. It was water, power and sewer, ready to go, right on site.” – Jackob Andersen convert natural gas to gasoline to use in motor vehicles. Readily available gas, electricity, railroad lines and water are all things that developers look for and are major draws for economic generators. Another major piece to the infrastructure puzzle is roadways, and the county and its communities is working to stay ahead of developers and the influx of new businesses and residents. In 2015, the county launched the Pinal Regional Transportation Authority. The PRTA created a 20-year

comprehensive plan that will put more than $640 million into improving the roads in the county. “Pinal County has paved 112 miles of dirt road (completed maintenance on 650 miles), built several roads (Hunt Highway, Ironwood Drive, Gary Road, etc.,) and multiple vertical structures in the last few years,” said Andrew Smith, deputy director of Pinal County Public Works. “Infrastructure is important as this will encourage and improve the site selection for future economic development. It also improves

livability, safety and quality of life.” Pinal County was awarded a $15 million Better Utilizing Investments to Leverage Development Transportation Discretionary Grant in 2019, according to Andersen. He said that the money will be used on improvements to the infrastructure around the Inland Port Arizona industrial park in Coolidge, which is where the Nikola Motors manufacturing plant will be located. Work will be done to widen Hanna and Houser roads that lead into the site. “The one thing we have done and kept up with is managing our roads,” said McFarland. “We have a program that we use that tracks the quality of our roads, so it’s helped us manage, even with the lack of funds from the state. I think for a city our size, our roads and our infrastructure is in pretty good shape.”

NIKOLA HYDROGEN FACILITY: hydrogen fuel cell recharging station and service center. z

60 | May-June 2020

PINAL COUNTY PLAN IS IN PLACE The Pinal Regional Transportation Authority was formed in 2015 to create a 20 year comprehensive multimodal regional transportation plan. In 2017, the Pinal County Board of Supervisors approved the plan, which will invest more than $640 million into the county’s transportation system. Some of the highlights of the plan are: • A 36-mile North-South Parkway Corridor between the US 60 in Apache Junction, and the Kortsen-Kleck roadway alignment in the City of Coolidge. • A 4-mile East-West Parkway near San Tan Valley that connects State Route 24 at Ironwood Drive to the future alignment of the North-South Parkway Corridor. • The development of 164 new Parkway lane miles throughout Pinal County. • The construction of a Traffic Interchange at Interstate 10 and Kortsen Road. • Approximately 50 miles of regional roadway improvements for connectivity and economic development. • The addition of 100 new travel lane miles throughout the Pinal Region for arterial and local roadways. • The preservation of right of way for a 31-mile West Pinal Freeway corridor between the Pinal-Maricopa County line and Interstate 8, for the construction of a future High-Capacity Corridor. • The preservation of the remaining 15-mile segment of needed right of way for the construction of the North-South Parkway Corridor between the City of Coolidge and Interstate 10. • Needed access and capacity to the Region’s emerging job centers. • The preservation of annual project funding ($300k) for less populated municipalities in the Region, to be used for local road projects. • The construction of Park and Ride facilities located throughout Pinal County. • The provision of annual funding for Dial-a-Ride services to assist people with disabilities, seniors, and members of the general public; and the provision of annual operational funding for existing transit systems. (Source: PRTA)

WHAT NEEDS DOES THE COUNTY HAVE The largest and most glaring infrastructure need in the county is one that it really can’t do a lot about: Interstate 10. The main north-south transportation corridor into Pinal County is in dire need of widening. The interstate is just two lanes going each direction for a 26 mile stretch between the Queen Creek Rd. exit and Casa Grande. Currently, traffic on that stretch is very heavy, and any increase in the number of travellers would have a major impact on commute times through that corridor “Already, as you travel in that area, you can see that the road is in disrepair and it can get downright dangerous sometimes,” said Andersen. “And, anytime there’s an accident, the traffic just comes to a complete standstill. 62 | May-June 2020

“It is imperative for the future growth in Pinal that we see that road improved.” The Arizona Department of Transportation is working on plans to widen that stretch of the interstate, and has been meeting with the Gila River Indian Community, which controls the right-of-way for this portion of the interstate that runs through Tribal land. Publicly, the GRIC has expressed agreement that expanding this portion of the interstate is vital and is working with ADOT to come up with a plan that won’t negatively impact life on the reservation. Another infrastructure need for Pinal County and future development is more fiber optic lines running into the major industrial parks. Currently, the county has a few lines that go around GRIC land, if those lines could

come directly from Phoenix (along the I-10 corridor) that would open up the county to more connectivity and make the county a more attractive location for high-tech companies and data center developers. “We’re not directly connected to the Phoenix market for fiber optic line because that I-10 corridor runs through Tribal land and it is owned by the Tribe, so you can’t do anything on that corridor,” McFarland said. “Our only option is to go around. We’ve been working with the Tribe, and I think with the expansion of the I-10 corridor, we might see improvement on that. “That’s a key for the future growth in the county: The widening of I-10. If we don’t get that widened and we continue to see this growth, I think that will be a major speed bump.”

RED AWARDS 2020

WINNERS 2020 Here are the projects honored with 2020 RED Awards

hen we look back on the development boom during the decade of 2010-2019, one thing will be clear: It went out with a bang. The sheer number and sheer quality of projects that wrapped up in 2019 is astounding. Once-in-a-generation developments like the Northrop Grumman Launch Vehicles Division Headquarters in Chandler, Great Wolf Lodge Arizona in Scottsdale and the Banner - University Medical Center in Tucson will play a key

EDUCATION As the first CSTEM (computer, science, technology, engineering, and math) K-8 school in the state of Arizona, the pre-kindergarten through eighth grade school for Marana Unified School District integrates computer, science, technology, engineering and math (CSTEM) into every class and subject taught. All classrooms are identical in design and natural light, providing equity for students. Each classroom wing is conveniently accessible to age appropriate outdoor learning areas. Each classroom also has wallmounted touch screen monitors, flexible furniture, and glass partition walls that open to the adjoining hallway for interactive group learning. The surrounding community participated in several visioning sessions to capture interests, ideas and goals. The resulting design features three secure neighborhood wings to support the districtâ&#x20AC;&#x2122;s vision.

64 | May-June 2020

role in the economic and physical health of the communities they serve for years to come. The 2020 Real Estate Development (RED) Award winners emerged from the largest pool of nominations in the 15 years that AZRE Magazine has been handing out these honors. Selecting the 2020 winners was not an easy task, as there were many projects deserving of recognition. But these projects stood out from the rest, so here are the 14 winning projects, and three company honorees of the 2020 RED Awards.

DOVE MOUNTAIN CSTEM K-8 SCHOOL

OWNER: MARANA UNIFIED SCHOOL DISTRICT GENERAL CONTRACTOR: CHASSE BUILDING TEAM ARCHITECT: CORGAN

LOCATION: 5650 W. MOORE RD., MARANA SIZE: 100,960 SF VALUE: $30 MILLION

HEALTHCARE The Banner – University Medical Center Tucson project is the seventh joint venture of Sundt and DPR, which began partnering in 2002. Communication is vital to the success of any project. The joint venture used a “Big Room” concept that brings together project partners on site to facilitate a collaborative environment and deliver quicker solutions to issues. An effective Big Room supports collaborative behavior. It adds value and lowers the overall project cost because everyone is working together. The result of all of this collaboration is a vital facility that replaced an aging portion of the hospital. The project represents a much-needed enhancement to one of the nation’s top academic medical centers and Southern Arizona’s only Level 1 Trauma Center. The patient tower has 204 private patient rooms, 22 new operating rooms, imaging suites and public spaces.

HOSPITALITY

BANNER - UNIVERSITY MEDICAL CENTER TUCSON

OWNER: BANNER HEALTH GENERAL CONTRACTORS: SUNDT AND DPR CONSTRUCTION (JOINT VENTURE) ARCHITECTS: SHEPLEY BULFINCH AND GLHN

LOCATION: 1625 N. CAMPBELL AVE., TUCSON SIZE: 667,000 SF VALUE: $322 MILLION

GREAT WOLF LODGE ARIZONA A collaborative effort by all involved, the new Great Wolf Lodge is truly a unique year-round destination experience that supports the booming hospitality market in this tourism-focused state. Being located on Salt River Pima-Maricopa Indian Community’s Talking Stick Entertainment District, the new resort provides amenities that are family-friendly including: • An 85,000 square foot indoor heated waterpark, featuring a variety of body slides, tube slides, raft rides, activity pools and splash areas for every member of the family • A 27,000 square foot family entertainment center known as the Great Wolf Adventure Park featuring a multi-level ropes course, miniature golf, an arcade and MagiQuest – Great Wolf Lodge’s exclusive liveaction adventure game

OWNER: GREAT WOLF RESORTS, INC. GENERAL CONTRACTOR: MORTENSON ARCHITECT: GENSLER LOCATION: 7333 N. PIMA RD., SCOTTSDALE SIZE: 396,016 SF VALUE: $85 MILLION

RED AWARDS 2020 INDUSTRIAL UNDER 600,000 SF

THE LOTUS PROJECT

Conor Commercial Real Estate took a site that was previously intended to be a water treatment facility and transformed it into a center of job creation. DLR Group and Duetsch Architecture Groupâ&#x20AC;&#x2122;s design contains features and amenities to attract new companies, especially those in the technology and financial service industries, to a place for innovation and creation. The Lotus Project has a unified campus environment with common design features, both architectural and landscape, that link the buildings and open space areas with inspiring themes of innovation, creativity and vitality. Situated on 53 acres of land, the Lotus Project was designed in two phases. Phase I of the development features four Class A industrial buildings DEVELOPER: CONOR COMMERCIAL REAL ESTATE designed for light industrial and GENERAL CONTRACTOR: MCSHANE CONSTRUCTION advanced manufacturing. ARCHITECT: DLR GROUP

INDUSTRIAL OVER 600,000 SF

LOCATION: 6511 W. FRYE RD., CHANDLER SIZE: 473,516 SF VALUE: $53 MILLION

AMAZON AR SORT FULFILLMENT CENTER Situated on a 93-acre site, this Amazon fulfillment center joins the list of herculean undertakings tackled by Ryan Companies. The 55-foot-high facility boasts a massive 850,000 square foot distribution complex that incorporates 76,000 cubic yards of concrete and 11,000 tons of structural steel. The warehouse is equipped with 64 loading docks, 398 tractor-trailer parking spaces and about 2,500 vehicle parking spaces. One-third of the facility is dedicated to two levels of order processing and packaging for shipment. The other two-thirds feature four levels of robotic storage platforms, where product is inducted and picked to fulfill orders. It is estimated this facility alone will serve 1,500 workers.

DEVELOPER: SEEFRIED INDUSTRIAL PROPERTIES, INC. GENERAL CONTRACTOR: RYAN COMPANIES US, INC. ARCHITECT: FORD & ASSOCIATES ARCHITECTS, INC. 66 | May-June 2020

LOCATION: 6701 S. KOLB RD., TUCSON SIZE: 2,331,000 SF

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RED AWARDS 2020 MIXED USE

BLOCK 23

OWNER: RED DEVELOPMENT GENERAL CONTRACTOR: WHITING-TURNER CONTRACTING COMPANY

ARCHITECT: OMNIPLAN LOCATION: 125 E. WASHINGTON ST., PHOENIX SIZE: 1,333,000 SF

MULTIFAMILY The Link, on 3rd and Pierce, is one of the largest multi-phase urban developments in the history of the City of Phoenix Central Business District. The site is the transition between the core of downtown and the burgeoning Roosevelt Row Arts District that has gained national attention. Another goal for the development was to create a monument connection between the city center and the northern mid-town and uptown locales. It’s near-future developments include two adjacent sites that will be constructed within the next three years and will undoubtedly continue the rapidly evolving skyline transformation of Phoenix. The ground floor is wrapped with retail spaces that promote creative business and includes an incubation and maker space for start-ups. The exterior at grade level includes a permanent integrated public art installation for public enjoyment. The parking garage is wrapped with a perforated metal scrim which dissolves the exterior massing and provides a dynamic composition that relates to its desert context. 68 | May-June 2020

Located on the most significant block in downtown Phoenix, Block 23 has created a vibrant live-work-play environment on a site that has been waiting to be redeveloped. Block 23 is the first mixed-use and high-rise development to include a grocery store in downtown Phoenix. Residents and those working near Block 23 enjoy its convenient access and contribute to the increase in walkability for the area. To prove its easy accessibility, Block 23 borders light rail lines on the north and south sides, making it an ideal residence for people who work downtown or those who commute and want great access to public transportation and urban style living. As the new urban core of downtown, restaurants such as, Sam Fox’s Blanco Tacos and Tequila, is headed to the block which will increase foot traffic and boost tourism in downtown Phoenix. When you increase the number of visitors, you create a demand for more jobs.

THE LINK PHX

DEVELOPER: CA VENTURES GENERAL CONTRACTOR: KATERRA ARCHITECT: SHEPLEY BULFINCH

LOCATION: 330 E. PIERCE ST., PHOENIX SIZE: 390,000 SF VALUE: $55 MILLION

For Our Communities DPR and Sundt are proud to work together, investing in our local communities to create lasting positive impacts.

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RED AWARDS 2020 OFFICE INTERIORS With a resimercial (residential and commercial) aesthetic woven with subtle elements of biophilic design, Zovio’s new headquarters looks less like a corporate office and more like an exciting place to work, socialize and live. One employee is quoted as saying, “the space is breathtaking”. The first floor is 80,000 square feet and the mezzanine is 50,000 square feet. The goal was to transform this large open floor plate and two-story volume for a mezzanine, into a state-ofthe-art headquarters. This facility houses an exterior patio to facilitate indoor/outdoor experiences, a coliseum with stadium seating for town halls, an onsite health clinic, fitness center and vendor-operated café that offers healthy food options for employees. Technology meets creativity with DIRTT modular walls, raised access flooring, large format audio/visual technology and white noise systems that strategically eliminate sound overlap.

OWNER: ZOVIO DEVELOPER: IRGENS GENERAL CONTRACTOR: STEVENS-LEINWEBER CONSTRUCTION, INC.

OFFICE OVER 300,000 SF

OWNER: NORTHROP GRUMMAN DEVELOPER: DOUGLAS ALLRED COMPANY GENERAL CONTRACTOR: WILLMENG ARCHITECT: BALMER ARCHITECTURAL GROUP 70 | May-June 2020

ZOVIO

ARCHITECT: MCCARTHY NORDBURG LOCATION: 1811 E. NORTHRUP BLVD., CHANDLER SIZE: 130,000 SF VALUE: $6.7 MILLION

NORTHROP GRUMMAN LAUNCH VEHICLES DIVISION HQ

LOCATION: 1575 S. PRICE RD., CHANDLER SIZE: 633,000 SF VALUE: $126 MILLION

The focal point of a transformative development, the Northrop Grumman Launch Vehicles Division HQ was the second-largest build-to-suit project in Metro Phoenix history and the facility will employ nearly 10,000 people at full capacity. The facility includes 633,000 square feet of engineering, manufacturing and office space, serving a variety of purposes to help Northrop Grumman meet our nations defense needs. Products built at the Chandler facility support the United States of America’s missile defense program including interceptors and targets as well as satellite launches for the U.S. Air Force, National Reconnaissance Office, NASA and commercial customers. The construction reflected in the Northrop Grumman facility is highly detailed and focused on quality and aesthetic to achieve a “destination” Class A office space.

Y O U R

W O R K P L A C E

RED AWARDS 2020 OFFICE

100,000 SF TO 300,000 SF

GEICO’s new regional headquarters is a large part of a master planned 350-acre district referred to as The Bridges. The facility currently employs nearly 1,500 people in the local Tucson community. The facility offers its employees modern open workspaces, an onsite cafeteria, fitness center, credit union, and 20,000 square feet of patios and balconies. As a part of the company’s largest green initiatives, the parking lot canopies are made up of solar panels which provide roughly 80 percent of the power to the entire building. The largest challenge the team faced on this project was GEICO had an expiring lease on their existing facilities forcing a very aggressive schedule. The team developed an accelerated 11-month schedule and came up with a plan that allowed the GEICO employees to move into the building in phases, starting with the second floor, the first and then the third.

OFFICE UNDER 100,000 SF

GEICO REGIONAL HEADQUARTERS TUCSON

OWNER/DEVELOPER: BOURN COMPANIES GENERAL CONTRACTOR: THE RENAISSANCE COMPANIES ARCHITECT: ONYX CREATIVE

LOCATION: 3050 S. M L KING JR. WAY, TUCSON SIZE: 200,000 SF VALUE: $33.6 MILLION

SUPIMA The interior of SUPIMA’s office space is approached with a museum-like restraint. The ground floor has a flexible open lobby, meeting space, gallery and large workroom. The second-floor offices are wrapped in walls of glass and centered around an open kitchen. The building volume and footprint was decided upon based on the existing zoning and site constraints (cross access easements, site geometry, adjacent uses, etc.). The size and height (20,000 SF over two stories) was decided upon to give SUPIMA ample space for their program and allow them surplus office program for lease. The project is conceived of two volumes with landscaped outdoor amenity areas in between. The two volumes are two levels each with a bridge connector in the center.

OWNER: SUPIMA LOCATION: 9885 S. PRIEST DR., #101, TEMPE GENERAL CONTRACTOR: JOKAKE CONSTRUCTION SERVICES SIZE: 20,000 SF ARCHITECT: RSP ARCHITECTS VALUE: $5 MILLION 72 | May-June 2020

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Covering 136,588 square feet, the building houses basketball and volleyball courts, a climbing wall, weight room, convenience store, cafe and offices. The facility is one of the largest Club sports facility in Arizona. The facility also includes a multi-purpose room with variable acoustics that is used for ensemble practice as well as a meeting space. The building was designed to have large spans with tilt up concrete walls, concrete columns and a premanufactured steel roof system, the first of this type of construction on campus. This construction technique provided the team with the opportunity of constructing large open spans in a relatively short time frame. The floors are sprung wood, polished concrete, carpet squares, and rubberized athletic flooring. OWNER: GRAND CANYON UNIVERSITY GENERAL CONTRACTOR: PONO CONSTRUCTION ARCHITECT: SOULL ARCHITECTS

LOCATION: 5346 N. 29TH AVE., PHOENIX SIZE: 136,588 SF VALUE: $15,695,432.13

REDEVELOPMENT Over the past few decades, several efforts have been made to redevelop Park Central, but none of them were successful in large part to the fact that the property had multiple owners. The consolidation of Park Central ownership was elusive over the years and stalled a number of efforts to revitalize this key project. Plaza Companies and Holualoa Capital Management were able to overcome these hurdles, create a broader vision for Park Central, and execute not only the redevelopment of the original property they purchased but a full and comprehensive re-imagination of the Park Central site. The new Park Central combines its rich mid-century-modern history with a new focus on technology, innovation and design, including all the most sought-after features in todayâ&#x20AC;&#x2122;s office and retail market.

74 | May-June 2020

PARK CENTRAL

DEVELOPERS: PLAZA COMPANIES AND HOLUALOA COMPANIES LOCATION: CENTRAL AVE. AND EARLL DR., PHOENIX GENERAL CONTRACTOR: DPR CONSTRUCTION SIZE: 450,000 SF ARCHITECT: RICHARD + BAUER VALUE: $250 MILLION

Thank You for rising to the occasion on behalf our our community.

OUR FUTURE IS

BECAUSE OF YOU!

RED AWARDS 2020 RETAIL Centered around the idea of catering to the human experience, the redevelopment strategy of Arizona Center was highly people-centric. The new Arizona Center invites a sense of play throughout the complex through bright colors and engaging outdoor elements. As tenants and shoppers rediscover the renovated plaza, they are surrounded by floating mesh canopies above the walkways. The artistic shade structures give personality to the building and provide relief for the outdoor seating. Serving as the new gateways to the center, dramatically patterned perforated metal screens cover the faĂ§ades. The impactful white metal screens completely refresh the exterior walls and provide an interesting and clean backdrop to the other improvements and new desert landscape.

ARIZONA CENTER

OWNER: PARALLEL CAPITAL PARTNERS GENERAL CONTRACTOR: SKANSKA ARCHITECT: GENSLER

DEVELOPER OF THE YEAR

LOCATION: 455 N. 3RD ST., PHOENIX SIZE: 120,000 SF VALUE: $24 MILLION

RYAN COMPANIES US, INC.

LivGenerations at Pinnacle Peak

The work done by developers in Arizona has been truly remarkable. Ryan Companies US, Inc. was busy in several markets in the state and was the driving force behind transformative projects like 76 | May-June 2020

the McKesson at Chaparral Commerce Center corporate campus and the new Amazon AR Fulfillment Center in Tucson, both huge engines that will push Arizonaâ&#x20AC;&#x2122;s economy forward into the

future. In 2019, Ryan also delivered these projects which were nominated for RED Awards: Ironwood Medical Pavilion II, LivGenerations at Pinnacle Peak and the Farmers Insurance Phase 2.

RED AWARDS 2020 ARCHITECTURE FIRM OF THE YEAR Butler Design Groupâ&#x20AC;&#x2122;s influence can be found throughout the Valley and across the product spectrum. In 2019 alone, BDG saw its vision come to life in some game-changing projects like The Commons at Rivulon in Gilbert, Skysong 5 in Scottsdale and the Tolleson Logistics Center. Butler has become a go-to firm for developers in a variety of submarkets. Other Butler projects that finished in 2019 include Ironwood Medical Pavilion II, Farmers Insurance Phase 2, the McKesson at Chaparral Commerce Center corporate campus and West 202 Logistics Center.

Skysong 5

CONTRACTOR OF THE YEAR Northrop Grumman Launch Vehicles Division HQ

78 | May-June 2020

BUTLER DESIGN GROUP

WILLMENG CONSTRUCTION Willmeng projects stood out this year. The company delivered facilities that will have a lasting impact on the communities they serve and the people who work in them. Willmeng completed dynamic projects large and small; from healthcare, education, logistics and Class A office â&#x20AC;&#x201D; the state will be improved for generations by the facilities that Willmeng so expertly built. Willmeng's largest project to deliver in 2019 was the RED Award-winning Northrop Grumman Launch Vehicles Division HQ, but the firm was busy all over the state with other projects, including two large logistics facilities (Tolleson Logistics Center and West 202 Logistics Center) and a school expansion and renovation at the BASIS Flagstaff Campus. Willmeng also delivered a new office building for a confidential aerospace company, a new interior for the AZ Spine & Joint Hospital and finished tenant improvement work at Sky Harbor Terminal 3.

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VALLEY PARTNERSHIP

BUILT FOR IMPACT

Valley Partnership perfectly positioned to play vital role in Arizona By STEVE BURKS

verything that Valley Partnership is involved with is part of its pursuit of a mission, which is to be the premier advocacy group for responsible development in Arizona. As an organization, Valley Partnership represents the commercial, industrial, multi-family and master-planned real estate development industries and works tirelessly to present a balanced, pro-development perspective and the best industry education and networking opportunities. Being an effective advocate for such a diverse industry takes a strong organizational structure. For Valley Partnership, its structure ensures its success. Valley Partnership has a clear vision, solid leadership and a history of advocacy that has made it one of the most respected industry organizations in the nation. “Thanks to the hard work of the membership, board, and especially VP staff, the organization is at the forefront of practically every issue facing developers today,” said Keith Earnest, executive vice president of VanTrust Real Estate and a member of the current board of directors. “The organization prides itself on working alongside the various stakeholders in a given situation to find the most advantageous result for all involved. By taking a win-win approach, Valley Partnership has continued to be a driving force in the Valley’s real estate community.”

82 | May-June 2020

VALLEY PARTNERSHIP "By taking a win-win approach, Valley Partnership has continued to be a driving force in the Valley’s real estate community.” – Keith Earnest

THE VISION When Cheryl Lombard became Valley Partnership president in 2015, one thing she did was help the group come up with a well-thought-out plan of attack. The leadership of the group had spent a lot of time discussing what its priorities should be and where to focus its time and resources so that it could have the most positive impact. Early in her tenure with Valley Partnership, Lombard and the group’s board of directors had a retreat where they narrowed down their organizational goals and put a strategic plan on paper. “We then took it to all of our committees and we had many membership discussions about it and then we finalized it,” Lombard said of that initial strategic plan back in 2015. “It was just an internal document at that point and it was for three years. I was really just using it for our advocacy efforts and what we would work on and use to attract sponsors and board members.” This internal document was put to good use by Valley Partnership, and the group has grown since 2015, more than doubling the amount of sponsors in the organization. But, the development climate in Arizona has also changed, and Valley Partnership constantly strives to be ahead of the curve on development issues in the state. “It is always important for any organization to periodically evaluate its mission and craft new strategic plans,” said Karrin Taylor Robson, founder and president of Arizona Strategies and a former board chair of Valley 84 | May-June 2020

Partnership who is now an honorary board of directors member. “We live and operate in a dynamic environment and failure to recognize and adapt to changes is usually a precursor to organizational failure.” In 2019w, the Valley Partnership executive committee set out on refreshing the strategic plan. The final document that they drafted is one that will complement the organization’s main mission, which is to be the premier advocacy group for responsible development in Arizona. The new strategic plan, which will run from 2020 to 2024, is based on two main pillars: Advocate and Build. “Valley Partnership and the Arizona State Land Department (ASLD) have two important components in common — advocating for the prudent and professional administration of the Trust and building a longterm understanding that the Trust plays a unique role in the state’s economic development,” said ASLD commissioner Lisa Atkins, who is also a member of the VP board of directors. Responsible use and development of State Trust lands is one of the key issues that Valley Partnership focuses on, and Atkins added, “The new strategic plan underscores the benefits of aligning our interests and partnership opportunities.” Taylor Robson added, “The new strategic plan builds on Valley Partnership’s 30-year legacy of advocating for responsible development. Valley Partnership has to balance the interests of all segments of the development community and as

VALLEY PARTNERSHIP’S STRATEGIES FOR RESPONSIBLE DEVELOPMENT ADVOCATE Advocate for public policies that advance the interests of the commercial, industrial, multi-family, and master-planned real estate development industries at all levels of government by creating strategic alliances, public/private partnerships, forums for education and discussion, and cooperation within the industry. PLATFORMS • Promote the professionalism of the real estate development industry and its role in the long-term economic health of the state and the region • Ensure the administration of taxes, fees, and regulations across jurisdictions in a manner that is fair, responsible, and that promotes economic investment • Support the development of University, Municipal, and Tribal real estate as strategic assets • Assist in the prudent and professional administration of Arizona State Trust Lands • Strengthen economic vitality tools such as, but not limited to, secure water supplies, attainable housing, a welleducated workforce, and transportation/ infrastructure including tools for public infrastructure financing BUILD Build a legacy for the future of development with educational events, leadership development programs, stakeholder engagement, and community action. PLATFORMS • Maintain a diverse and committed membership group representative of the real estate development industry • Continue to promote the value of the Valley Partnership membership and encourage the use of our member companies • Grow and support Valley Partnership Advocates Program and its alumni as future leaders of the organization including committee leadership • Plan and execute an annual Community Project to benefit the Valley’s at-risk and underserved populations and to benefit our communities • Ensure meaningful networking opportunities for members through Events and Committees

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VALLEY PARTNERSHIP “There are also several issues facing the real estate industry where a united voice is needed. Valley Partnership is special in that we have the ability to align our voices on pivotal issues for our industry.” – Tim Brislin such the organization is considered a reasonable and well-respected voice in public policy discussions.”

THE LEADERSHIP One thing that is unique about Valley Partnership’s organizational approach is the number of board members it has. The board is set up with a six-person executive committee, the board of directors and then an honorary board of directors, which is comprised of longtime Valley Partnership leaders and icons Grady Gammage of Gammage & Burnham PLC; John Graham, president of Sunbelt Holdings; and Taylor Robson. The main board of directors is 32-members strong and is a true representation of Arizona’s diverse development world. “The Valley Partnership Board of Directors is a reflection of our industry as well as the strategic direction of the organization,” said Tim Brislin, vice president of Harvard Investments

and chair of the Valley Partnership executive committee. “(Valley Partnership president) Cheryl Lombard and our executive committee strive to bring in a diverse group of developers and key consultants from each of the real estate disciplines. Additionally, we include state and municipal partners to seek their input and create relationships that are integral to addressing industry issues. “As part of the executive committee my responsibilities include being mindful of the issues facing real estate development, to actively participate in the many dialogues we have as a group, and always strive to find solutions that advance responsible development.” Brislin is joined by vice-chair James Kenny, president of El Dorado Holdings, Inc.; treasurer Brandon Dillingham, managing director of Hines; secretary Laura Ortiz, managing director of Evergreen DevCo; general counsel Jay Kramer of Fennemore Craig, P.C.; and past chair

Jill Hegardt, vice president of DMB Associates, Inc. The board has attorneys, brokers, engineers, general contractors, city and university leaders, subcontractors and even the director of the community initiatives team at Luke Air Force Base, Rusty Mitchell. “We understand that while each discipline is unique, there are many areas of overlap where our members can share ideas, best practices, and solutions,” said Brislin. “There are also several issues facing the real estate industry where a united voice is needed. Valley Partnership is special in that we have the ability to align our voices on pivotal issues for our industry.” With members from all facets of the industry, the Valley Partnership board is uniquely positioned to provide an informed perspective on an issue that could affect the industry. It is this in-depth understanding of the issues that allows Valley Partnership to take up the organization’s positions and

2020 VALLEY PARTNERSHIP BOARD OF DIRECTORS Lisa Atkins, Arizona State Land Dept.

Ron Hilgart, Hilgart Wilson

Michele Pino, Land Advisors Inc.

Bob Bambauer, Sunbelt Holdings

Brett Hopper, The OPUS Group

Jennifer Pokorski, Maricopa County

Rob Bassett, Pederson Group

Donna Kennedy, City of Tempe

Paul Rhodes, Vestar

Chapin Bell, P.B. Bell Companies

Doug Clock, Lincoln Property Company

Jim Rounds, Rounds Consulting

Ben Butler, Fidelity National Title Group

Bryce Lloyd, FirstBank

Alan Stephenson, City of Phoenix

Todd Chester, WDP Partners

Nicole Maas, Kitchell

Rob Taylor, SRP

John Creer, ASU Real Estate Development

Michael Martin, APS

Cathy Teeter, CBRE

Kimberly Davids, Weitz

Rusty Mitchell, Luke Air Force Base

Brad Wright, Squire Patton Boggs

Keith Earnest, VanTrust

Jeff Moloznik, RED Development

HONORARY BOARD OF DIRECTORS

Nic Fischer, Merit Partners

Garrett Newland, Macerich

Grady Gammage, Gammage & Burnham, PLC

Mari Flynn, Ashton Woods Homes

Carolyn Oberholtzer, Berlin, Frankes, Smalley & Oberholtzer

John Graham, Sunbelt Holdings

Benjamin Graff, Quarles & Brady

Carl Perrone, Brookfield Residential Properties

Karrin Taylor Robson, Arizona Strategies

86 | May-June 2020

VALLEY PARTNERSHIP

BOARD: Valley Partnership board members pose for a picture with Phoenix mayor Kate Gallego before a Friday Morning Breakfast event in 2019. Board members are, from left, John Graham, Molly Greene (former board member), Karrin Taylor Robson, Gallego, Molly Carson Ryan (former board member), Jill Hegardt, Valley Partnership president Cheryl Lombard and Brandon Dillingham. (Courtesy Valley Partnership)

effectively lobby leaders at the local, state and even national level. “Valley Partnership takes a proactive approach in researching the needs of their constituency then supporting, or initiating policy that advances responsible development at the city and state level,” said Keith Earnest, vice president at VanTrust and a Valley Partnership Board of Directors member. “The organization is well known for collaborating with all levels of government in providing thoughtful solutions to complex issues.” “Having input and leadership from each affected group in our industry is critical to finding the right solutions,” Brislin said. “Cheryl has done a great job working with our board to synthesize and communicate Valley Partnership’s strategic goals.” 88 | May-June 2020

THE PILLARS Of the two pillars of Valley Partnerships strategic plan, it’s easiest to see what the group has done to Build. Each month, Valley Partnership hosts its Friday Morning Breakfast events, which informs the membership about critical issues and provides valuable networking opportunities. There are also opportunities to build relationships at other events, such as the annual golf tournament and day at a spring training game. Valley Partnership has also done an effective job of building its organization with a large and diverse membership that represents all parts of the industry. The group also builds community spirit with its Community Project that has impacted thousands of lives in

the Valley, as well as building the next generation of industry leaders through its ADVOCATES program, which is for members 35 years old and younger. “Valley Partnership’s ‘Build’ mission focuses on building on its 30-year legacy of responsible advocacy for the industry, providing education for its members, developing future industry leaders and continuing to build on a robust history of giving back to our community,” said Taylor Robson. While Valley Partnership has been effective as the industry has been thriving during the past decade, its strength as an advocate and a builder really began to show during the COVID-19 crisis in the first half of 2020. As business slowed due to new social distancing guidelines and stayat-home directives, Valley Partnership was working to build solutions to problems that arose and advocate for the industry. Lombard said that Valley Partnership would have weekly calls with its members who are developers. The calls

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VALLEY PARTNERSHIP

Brandon Dillingham Managing Director, HINES

Tim Brislin

Vice President, Harvard Investments

would inform the members on Valley Partnership efforts to get construction deemed an essential business, the importance of federal guidance on commercial loans, extending the deadlines on 1031 exchanges and opportunity zones, as well as how to best re-open the state economy. Valley Partnership also worked closely with the Governor’s office to come up with executive orders on essential businesses and a commercial eviction moratorium. Lombard also held regular calls with local, state and national officials to keep the membership updated. There are a couple of key development issues that Valley Partnership’s work has stood out on in terms of its Advocate pillar. One is water policy and the other is how to best utilize our state lands in Arizona. Early in 2019, Arizona Gov. Doug Ducey signed legislation that enabled the Drought Contingency Plan (DCP) to go into effect in Arizona. The DCP is a stewardship plan for the state’s water supply and provided a greater amount of certainty for water uses and gives more water management control to the state of Arizona. Then, on May 20, 2019, representatives of all seven Colorado River Basin States (Arizona, California, Colorado, Nevada, New Mexico, Utah and Wyoming) and federal officials signed DCP plans for the Upper and Lower Colorado River basins. Together, the plans are designed to help stabilize the river system, and to help reduce the risk of the system reservoirs falling to critically low levels. The plans represent a tremendous degree of collaboration and compromise among the seven States, as well as by the 90 | May-June 2020

Jill Hegardt

Vice President, DMB

Jay Kramer

Fennemore Craig Attorneys

system’s water users. Lombard was a member of the Lower Basin Drought Contingency Plan Steering Committee that helped establish these vital plans for the region. “The Drought Contingency Plan, which was signed last spring, protects water supplies for 40 million people who rely on the Colorado River for their drinking water and to sustain their communities,” said Morgan Snyder, program officers, environment program for the Walton Family

“The existence of an umbrella organization like Valley Partnership is critical to giving the development community the breadth of perspective necessary to be influential in water issues.” – Grady Gammage

Foundation. “As we face the fast growing threat of a global pandemic, a safe and secure water supply is a cornerstone of public health. “Valley Partnership did a lot to facilitate agreement among the interested parties. The VP perspective tends to have a broader and a longerterm view than other parts of the developer community. Because of this, their interests align well with long-term water sustainability. Having Cheryl at

James Kenny

President, El Dorado Holdings, Inc.

Laura Ortiz

President & Managing Principal, Evergreen Devco, Inc.

the helm, who has a deep knowledge of the issues, makes all the difference.” Gammage, whose law firm focuses on issues relating to real estate, development and public policy, including water issues, said that having Valley Partnership involved in setting water policy is important because of the groups’ understanding of the “big picture of Arizona’s water situation.” “The existence of an umbrella organization like Valley Partnership is critical to giving the development community the breadth of perspective necessary to be influential in water issues,” Gammage said. “In this cacophony of voices, Valley Partnership is nearly unique. While Valley Partnership explicitly represents urban interests in the Phoenix metro area, it has appreciated the relationship between Arizona’s agricultural heritage and the economy of the state. It has championed cooperative, constructive and creative solutions to water management decisions.” On the State Land Trust topic, having Commissioner Atkins as a board member speaks volumes for how important the group feels this item is in advancing responsible development in the state. “Valley Partnership members recognize the purpose of the Trust; to provide a revenue stream in perpetuity to support 13 defined Beneficiaries, the largest of which is K-12 Education,” said Atkins. “The VP strategic plan recognizes and is committed to fulfilling the purpose of the Trust through a clear statement and commitment to assisting the Land Department in the prudent and professional administration of the Trust in its advocacy platform.”

VALLEY PARTNERSHIP MEMBER

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VALLEY PARTNERSHIP

Tailor Made Role with Valley Partnership is a perfect fit for Martin By STEVE BURKS

he strength of any organization is in its membership, so attracting and retaining a vibrant, diverse group of participants is a top priority for any organization that wants to succeed. Few commercial real estate organizations in Arizona have thrived in the last decade like Valley Partnership, and much of that is due to the work of Carrie Martin. Martin is the vice president of events and membership for Valley Partnership. She is second in command of a two-person team with president Cheryl Lombard. Together, they lead an organization that has doubled its amount of sponsors in the last five years and is a leading advocate for responsible commercial real estate development in the state. “As a small company, you tend to do it all, which is the best!” said Martin. “The organization continues to grow on both the events and the advocacy level, which is fantastic. No day is ever the same.” Valley Partnership was searching for an executive to handle events and membership in 2016, and the position seemed tailor-made for Martin. After graduating from the University of Arizona, Martin began her career in commercial real estate with SunCor Development Company. At SunCor, Martin worked in the marketing

92 | May-June 2020

department, handling marketing efforts for the company’s residential communities. She later moved on to DMB Realty Launch, and was in charge of marketing DMB’s services to luxury residential communities. She had been a member of ULI Arizona for a few years before going to work for the organization in 2012, focusing on events and membership initiatives. After nearly four years with ULI, Valley Partnership was a natural next step. “The role was a newly created one,” said Lombard. “When I came in, I had three part-time people and the job of membership and events was spread out amongst them all, with no ownership of it. With events, especially our Friday Morning Breakfast, and membership and engaging with them was so important, I collapsed that into one full-time job.” Lombard said she wanted to find someone with experience staging events, which wasn’t difficult. What made Martin stand out from the pack

of people interested in the job, however, was her development background. “I knew Carrie when she was over at ULI, but when she expressed her interest in the role and wanted a fulltime position, she was just a perfect fit because of her knowledge of the development industry,” Lombard said. “I was a member at Valley Partnership at various times in my career and was very familiar and excited about the organization,” Martin said. “It was a win-win for both parties. I was doing the ULI thing and the Valley Partnership position gave me more of an opportunity to be in a leadership role. “What I really enjoyed on the ULI and Valley Partnership side is the giving back and the connecting people. That’s really what I enjoy, is connecting people, making those introductions and meeting people and bring people together for the good of the community.” Martin’s role at Valley Partnership

VALLEY PARTNERSHIP is quite large. She oversees the events committee, which includes the monthly Friday Morning Breakfast event, the annual golf tournament and the annual Cactus League game. The committee is made up of Valley Partnership members, who all volunteer to sit on the committee. The leadership of the events committee includes cochairs Kristina Locke, the director of business development with Coe Van Loo Consultants, Inc., and Karen Ratliff, marketing manager at Advance Structural Engineering, Inc. (ASE). The committee meets monthly to go over what topics will be discussed at the Friday Morning Breakfast. There are

ANNUAL EVENT: Carrie Martin, left, poses for a photo with Kelly Patton, senior economic development consultant of statewide programs for APS and a Valley Partnership sponsor, at the annual spring training event at Sloan Park in Mesa. (Photo courtesy of Valley Partnership)

94 | May-June 2020

certain topics that are set each year, like the annual visit from Grant Woods or a discussion about State Land, but the committee works hard to bring something to the table that will inform the Valley Partnership members. “We brainstorm topics that are timely and relevant and what we think everyone would want to hear,” Martin said. “Other than the topics that are set each year, we do try to get pretty far ahead of ourselves throughout the year.” Martin also is responsible for the committee that organizes the Community Project, which is something Valley Partnership does each year. Since 1988, Valley Partnership has selected a charitable non-profit organization that can benefit from the skills, efforts and supplies provided by the groups’ members to renovate and enhance outdoor facilities. In its history, Valley Partnership has raised, designed, and constructed over $4.2 million of enhancements for these non-profit

organizations around the Valley. Martin also helps guide the committees that handle popular annual events like the Valley Partnership Golf Tournament and the organization’s day at the ballpark for a Cactus League game. “When you work for a non-profit, it is all volunteer driven, Martin said. "So you have your golf committee and you’ve got your community project committee and your events committee, these are all volunteers, they all have real jobs, so it’s really hard to not give them 100 percent of your time, all of the time. Another thing Martin has going on is organizing the Valley Partnership ADVOCATES program, which is a learning and networking program for commercial real estate professionals under the age of 35. The group has monthly, in-depth learning sessions with various industry experts, giving these young professionals valuable exposure to leaders in the industry. For Martin, it is these kinds of connections that she cherishes the most in her role with Valley Partnership, “I truly love bringing people together and helping the community.” During the recent stay-at-home mandate due to the Covid-19 pandemic that has spread throughout the globe, Martin and Valley Partnership had to cancel or reschedule several key events, such as the Cactus League networking event, the golf tournament and two Friday Morning Breakfast events. Her hope is that aside from providing its members some guidance through the economic pause caused by the pandemic, Valley Partnership can play a role in helping its members get back to a sense of normalcy when the Friday Morning Breakfast events resume. “It’s going to be very important, but it’s going to be different,” said Martin of things returning to a sense of normalcy. “People want to get back to normal, so the breakfasts are important and then the topics will come. From my part, probably more one-on-one personal meetings will be important. I want to ask people how they are doing and how we can help and really just check in with people on a personal level.”

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Valley Partnership

RED Awards

Pinal County

Healthcare

Downtown Phoenix

Legislative Update

Data Centers

Top Producers

N ew to Market

After Hours

Executive Profile

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