AZRE Magazine July/August 2013 by AZ Big Media

JULY - AUGUST 2013

INTERIOR MOTIVES IIDA SOUTHWEST: ENHANCING SPATIAL ENVIRONMENTS THROUGH EXCELLENCE IN DESIGN

INSIDE

PTK's Industry Leaders p. 16 Office/Industrial outlook p. 20 Tucson update p. 30

SmAShing glASS ceilingS with A Sledge hAmmer

ZRE magazine is all about awe-inspiring projects that are made of steel and glass, but sometimes, though, lost is the fact that there are talented professionals behind these incredible projects. Something else that’s often forgotten is that many of these talented professionals are women. The July/August issue of AZRE recognizes — and salutes — the many talented women in Arizona’s commercial real estate industry. Although commercial real estate has been a male-dominated industry for years, the women that have been successful have done so because they are impressive performers. This includes women who are bank vice presidents, renowned real estate attorneys, presidents of construction companies and owners of architectural firms. l For the second straight year we’re profiling Arizona Commercial Real Estate Women, or AZCREW, as the group is better known. Included is a Q&A with President Karen Halpert of Cole Real Estate Investments and a look at the benefits of belonging to this fine organization. l For the first time, we are producing a section with the International Interior Design Association (IIDA) Southwest chapter, many of which its talented members are women. President Casey Potash of KI & Pallas Textiles gives AZRE readers a glimpse of her group. l What’s the Arizona Builders’ Alliance going to do without Carol McMullen, who is retiring after 30 years of mentoring and educating those in the construction industry? Executive Director Mark Minter bids a bittersweet farewell. l Voices of other women leaders include those of Molly Ryan Carson, a vice president at Ryan Companies US, Inc., and Kari McCormick, director of client services Native American Division at Kitchell. The Industry Leaders of 2013, chosen from our People to Know publication, also include three women. How’s that for smashing the glass ceiling with a sledge hammer?

Editor (602) 424-8844 peter.madrid@azbigmedia.com 2 | July-August 2013

President and CEO: Michael Atkinson Publisher: Cheryl Green Vice president of operations: Audrey Webb EDITORIAL Editor in chief: Michael Gossie Editor: Peter Madrid Associate editor: Hannah Hayes Interns: Jacob Green | Jamie Mitchell ART Art director: Mike Mertes Graphic designer: Lillian Reid Photo intern: Cailey Kleiner DIGITAL MEDIA Web developer: Eric Shepperd Web and graphic designer: Melissa Gerke MARKETING/EVENTS Manager: Whitney Fletcher AZRE | ARIZONA COMMERCIAL REAL ESTATE Director of sales: Steve Koslowski OFFICE Special projects manager: Sara Fregapane Executive assistant: Mayra Rivera Database solutions manager: Cindy Johnson AZ BUSINESS MAGAZINE Senior account manager: David Harken Account managers: Arthur Alcala Molly McGee | Shannon Spigelman AZ BUSINESS LEADERS Director of sales: Carol Shepard RANKING ARIZONA Director of sales: Sheri King SCOTTSDALE LIVING Account manager: Gail Rosier EXPERIENCE ARIZONA | PLAy BALL Director of sales and marketing: Zoe Terrill AZ BIG MEDIA EXPOS SCOTTSDALE SUPER EXPO/APRIL SCOTTSDALE SUPER EXPO/NOVEMBER Exhibit directors: Kerri Blumsack Tina Robinson | Marianne Avila

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. ©2013 by AZ BIG Media. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without permission in writing from AZ BIG Media.

CON T E N T S 6 20 FEATURES

6 8

New to Market Projects in the pipeline

Project News Adaptive re-use project rising at 7th and Osborn; Concord convertng Verde Villa multi-family project

57 16

Industry Leaders The brightest and best from 2013 People To Know

Brokerage Office/industrial overview: Markets picking up steam

After Hours Kitchell’s Kari McCormick: A teacher at heart

Executive Q&A Four faces of industry leadership

Tucson update University of Arizona spurring growth in the Old Pueblo

Ryan Companies US, Inc. Building lasting relationships

On The Cover: NJOY’s corporate office in Scottsdale, by Krause Interiors, won Best of Show and Design Excellence, Commercial Office Under 10,000 SF, at the International Interior Design Association Soutwest PRIDE Awards. IIDA special section, page 34. Corrections: >> Healthcare Trust of America’s address is 16435 N. Scottsdale Rd., #320 >> Caretaker Landscape and Tree Management’s ROC# is 080472/C5274E

COMING NEXT ISSUE

» » » »

Urban Land Institute Arizona Multihousing Association Industrial/office overview Real estate law update

4 | July-August 2013

Free AZRE app for android online with this QR code

Cultivating and connecting: Forming meaningful professional associations

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President Q & A Karen Halpert Member profiles 3101 N. Central Avenue Suite 1070 Phoenix, Arizona 85012

(602) 277-6045 azBIGmedia.com

As the preeminent multidisciplinary real estate forum, with 40,000 members in nearly 100 countries, ULI facilitates an open, non-partisan exchange of ideas, information, and experience among local, national, and international industry leaders and policy makers dedicated to creating better places.

Benefits of ULI Membership

PEOPLE:

Creating networks and building careers.

SHARING KNOWLEDGE:

Practical information from experienced professionals.

THINKING BIG:

A think tank or real estate development and land use challenges.

BUILDING BETTER COMMUNITIES:

Working together to create better places.

BE A LEADER: Join ULI Our mission is to provide leadership in the responsible use of land and in creating and sustaining thriving communities worldwide.

www.Arizona.ULI.org

COMING IN SEPTEMBER! ✱ ✱ ✱ ✱

Multi-family spotlight What lies ahead for Arizona’s sizzling multi-family market Project news and updates Member profiles

CALL 602.277.6045 FOR ADVERTISING OPPORTUNITIES 5

NEW TO MARKET

PUBLIC 1  WESTWORLD EQUIDOME/BARRETT JACKSON NORTH HALL EXPANSION Developer: City of Scottsdale General Contractor: Howard S. Wright, a Balfour Beatty company Architect: Populous Location: Loop 101 / Frank Lloyd Wright Blvd. Size: Phase I — 100,000 SF renovation; 40,000 SF South Hall addition; Phase II — 128,250 SF North Hall expansion

The $38.8M project will accommodate many notable equestrian and major Scottsdale events including the Barrett Jackson Auto Auction and the Arabian Horse Show. Subcontractors include Arizona Corporate Builders, Suntec, Mark’s Valley Grading, Comfort Systems USA, Rosendin Electric, Wilson Electric, Stone Cold Masonry, Pete King, Masseur Plumbing, Norcon Industries, Complete Fire Protection and Arrow Fire Protection. Expected completion 4Q 2013.

TOWN OF PARADISE VALLEY COURT Developer: Town of Paradise Valley General Contractor: D.L. Withers Construction Architect: Dick & Fritsche Design Group Location: 6517 E. Lincoln Drive Size: 6,000 SF

2

The $1.9M, 1-story facility will house the municipal court comprised of a lobby area, office space for administrative staff, judges’ chambers and a courtroom. Estimated completion is 2Q 2013.

EDUCATION 3  CLASSICS AND FINE ARTS CHARTER SCHOOL Developer: American Charter Development General Contractor: A.R. Mays Construction Architect: Ken Harris Architects Location: 3939 E. Warner Rd., Gilbert Size: 44,500 SF The $4M project is ground up construction of a charter school to be built in 90 days on 8.29 acres. The 2-story, K-12 school includes classrooms, administrative offices, a gymnasium, a multipurpose room and a playground. Expected completion is 3Q 2013.

6 | July-August 2013

MULTI-FAMILY

HEALTHCARE

4  URBAN LIVING 2 Developer: Native American Connections General Contractor: Chasse Building Team Architect: Perlman Architects Location: 2nd Ave. McKinley St., Phoenix Size: 96.132 SF

6  SOUTHWEST CENTER FOR HIV/AIDS Developer: City of Phoenix General Contractor: hardison/downey construction, inc. Architect: Holly Street Studio Location: Central Ave. & Portland St., Phoenix Size: 50,000 SF

The $10.5M project consists of 70 affordable apartments from studios, one, two and three bedrooms. Amenities include a gated community, secure parking, a small theater room, a fitness center, multipurpose room and active courtyard with a playground. UL2 was designed with green technologies and will pursue LEED Gold certification. Subcontractors include Huff & Sons Masonry, Roofi ng Southwest, Jolt Electric, KC Air and Marlin Mechanical. Expected completion is 4Q 2013.

The $5.5M design/build project features the renovation of the former 2-story, Channel 12 building. The new community space will include clinic areas, pharmacy, conference and event rooms, offices and parking underneath the building. Additional tenants in the buildout include Maricopa County Integrated Health Services (MCIHS), Avella, Family Center and retail space. Subcontractors include Adobe Drywall, Comfort Systems USA Southwest, Niemeyer Bros. Plumbing, Pinnacle Plumbing, Pro Steel Erectors II, Rouser Concrete, Sierra Masonry, Wilson Electric and Dickins Quality Demolition. Expected completion is 3Q 2013.

OFFICE

INDUSTRIAL

The $27M, 2-story building is part of an expansion in Tempe for Web host GoDaddy. The center will provide a creative new space for 1,300 employees, including engineers, developers and customer care representatives. The new building is expected to open in 2014.

This $8M industrial building will be designed for manufacturing and warehousing operations, and located adjacent to the Loop 202 in the Chandler Freeways Business Park. Subcontractors include Alliance Fire Protection, Alliance Plumbing, Ace Asphalt, Hardrock Concrete Placement and Jenco Inc. Expected completion is 4Q 2013.

5  GODADDY GLOBAL TECHNOLOGY CENTER Developer: Ryan Companies US, Inc. General Contractor: Ryan Companies US, Inc. Architect: PHArchitecture Broker: Cassidy Turley (landlord); CBRE (tenant) Location: ASU Research Park, 8750 S. Science Dr., Tempe Size: 150,000 SF

7  EASTGROUP @ CHANDLER FREEWAYS Developer: EastGroup General Contractor: Ryan Companies US, Inc. Architect: Butler Design Group Broker: Lee & Associates Location: 6850 W. Moreles Place, Chandler Size: 126,000 SF

 PROJECT NEWS: ADAPTIVE RE-

USE PROJECT RISING AT 7TH AND OSBORN; CONCORD CONVERTNG VERDE VILLA MULTI-FAMILY PROJECT

A rendering of the $5.5M, 40,500 SF Pascua Yaqui Tribal Services Center in Guadalupe being built by Concord General Contracting.

 ADAPTIVE RE-USE PROJECT COMING TOGETHER AT 7TH AND OSBORN

 DPR PROJECTS INCLUDE ASU, OSBORN MEDICAL CENTER, BANNER

Work is progressing by the team for Old School O7 consisting of Wetta Ventures as developer, RSP as architect and designer and Chasse Building Team as general contractor for a July turnover of a new ground-up mid-century inspired building and a reimagined church and school building in Central Phoenix. The adaptive re-use project at 7th St. and Osborn has secured Starbucks as tenant for the new building, and Taco Guild restaurant for the church building. On-site, the team has been reacting to the unforeseen conditions that arise on re-use projects. The team discovered three large windows that had been blocked in. By restoring these, the space now has increased light and dimension. The team also decided to rebuild vs. remove a wall which will now serve as a History Mural to celebrate the 128-year “local” history of the property. Beautiful wood ceilings which were hidden by acoustic tiles were uncovered and stained glass windows are being left or repurposed throughout the project. Subcontractors include Sterling Sandblasting, Creative Masonry and W&W Structural Steel. After the shell building’s turnover, tenant improvements will quickly commence for a scheduled project in the fall.

TI at the ASU College of Nursing and Health Innovation 2 and refurbishment work at Osborn Medical Center are two of several projects in the works by DPR Construction. SmithGroupJJR is architect for the 16,000 SF NHI2 Fifth Floor TI project, approximate value at $540,000. Work includes TI of existing shell space consisting of 23 offices and two dean offices. The Osborn Medical Center public restroom refurbishment include work on 21 public restrooms within the hospital. This includes new ceramic tile, plumbing upgrades and miscellaneous accessories. Phoenix Design One is architect and Alliance Project Advisors is construction manager of the 13,000 SF TI at the Avalon School of Cosmetology. Subcontractors include Brown and Son’s Electrical Contracting, Alpine Mechanical and Service, Arnett Plumbing, Fortress General Contracting, Ganado Painting and Wallcoverings, Wholesale Flooring, Styles Brothers Custom Millwork, D.H. Pace, Mountain State Drapery, TP Acoustics, RCI Systems, Dickens Quality Demolition and KDM Contracting. The TI includes salon, pedicure, treatment area, reception, classrooms,

8 | July-August 2013

• • •

Project News

Old School O7 from RSP Architects, Chasse Building Team and Wetta Ventures.

•

break room, offices, restrooms and laundry. HKS is architect for the $1.5M Banner Gateway Kitchen and OR renovation. Work includes expansion and renovation of the kitchen and physicians’ lounge and renovation of OR No. 8.

´ DL Withers finishes sports venue DL Withers Construction recently completed the Southern Arizona Community Sports @ Curtis Park project in Tucson. The architect is Swaim Associates Architects. This state-of-the-art facility will include nearly 40,000 SF of versatile space, accommodating up to five basketball courts, eight volleyball courts and other activity space for sports and other programs that promote health and wellness for Tucson and the surrounding community’s youth.

´ ConCorD eyes 4Q finish for 2 projeCts A tribal services center in Guadalupe and a multi-family project in Phoenix are scheduled for 4Q 2013 completion by Concord General Contracting. At the $2.8M, 23,000 SF Verde Villa multihousing project, Concord is converting 66 one-bedroom and studio

units to a combination of 36 studio, one-, two- and three-bedroom units. Architectural Resource Team is the architect. Subcontractors include Shadetree Mechnical, Rowley Plumbing, Parker Design and Construction, Gazda Electrical and Bold Framing. At the $5.5M, 40,500 SF Pascua Yaqui Tribal Services Center (architect Merry Carnell Schlecht), Concord is building a new, 2-story administration building. Subs: Commercial Air, Noble Steel, Grace Electric, CJS Enterprises and Irontree Construction.

´ je Dunn, DLr Group to team on aDoC BuCkeye prison expansion JE Dunn Construction was selected as construction manager on the new Arizona Department of Corrections 500-bed Maximum Custody Prison Expansion in Buckeye. The $50M, 110,000 SF prison will be designed by DLR Group, adding to JE Dunn’s extensive correctional experience with the design firm. The expansion will include three new housing units within the existing Arizona State Prison Complex Lewis and will utilize existing water, waste water, electrical, natural gas, communication and secure perimeter infrastructure. Preconstruction began in April with 4Q 2014 completion date. 9

PLANNING & ZONING  TOWN OF FLORENCE

The Town of Florence is seeking to annex two large areas of land within the Town’s current northwest planning area and contiguous to its current corporate limits. The properties contain approximately 3,742 acres and include the existing developments of Wild Horse Estates, Crestfield Manor and Magic Ranch, along with additional areas. These annexations should add approximately 4,200 new residents to the Town’s current population of approximately 8,000 existing residents. Th is excludes the additional 17,000 prison inmates in the various penal institutions. Town representatives have conducted two separate meetings at Town Hall to introduce and discuss the proposed annexations. The meetings were also intended to provide information for attendees to learn how these annexations might impact properties and property owners in the area, and to provide an opportunity for them to ask any questions. Most questions concerned taxes, utilities, fi re and police service and other Town services. In the next step, which should take six months to one year to complete, the Town will send out petitions to the property owners within the annexation areas for their signatures. The Town will need 51% of the owners to agree to the annexation and 50% of the property value to approve the annexation. For additional information, interested parties can contact Jess Knudson, the Town’s Public Information Officer, at (520) 868-7341.

 CITY OF PHOENIX

The City of Phoenix upgrades its Building Construction Code about every three years to stay current with new construction methods and practices. City officials have recently reported that they have completed and approved the most recent changes and they have been forwarded to City Council which will vote on them. The 300-page code includes 250 proposed amendments which have received public attention during the past year. Proposed revisions include one related to the installation of solar shade structures and photovoltaic panels on grocery store parking lots. Another involves relaxation of window size requirements in historic buildings. The code covers a large range of construction issues from alteration, relocation, enlargement, replacement, repair, removal and demolition. It also covers electrical, mechanical, structural, elevator and escalator issues. For more information or a copy of the code visit phoenix.gov/pdd/devcode/2012code

 ADOT

A study team led by Arizona Department of Transportation (ADOT) and the Federal Highway Administration has released a draft of the Environmental Impact Statement (EIS) for the South Mountain Freeway. The April 26 release kicks off a 90-day public comment period that concludes July 24. The EIS evaluates the effect of the freeway on 26 areas regulated by the national environmental law, such as potential impacts to air and water quality, endangered species, noise, traffic patterns, and land uses. The EIS measures the severity of those effects and recommends steps to mitigate or offset them. It also recommends between building or not building the Pecos Road alignment through South Mountain Park along with recommendations on ADOT’s

10 | July-August 2013

preferred route along 59th Avenue or one of the four other West Valley options. The public has been encouraged to review the draft report, participate in any scheduled public hearings, and provide comments on the project during the 90-day public review period. All public comments received during that period will be considered and included into the Final EIS and in the project’s administrative record. Written comments can be emailed or sent to the following addresses: projects@azdot. gov and South Mountain Study Team, Arizona Department of Transportation, 1655 W. Jackson St., MD 126F, Phoenix, 85007. A copy of the draft EIS can be downloaded at: azdot. gov/southmountainfreeway/

 TOWN OF PARADISE VALLEY

The Town of Paradise Valley is recording the Town’s Planning Commission meetings on video and making them available via the Internet both live and on-demand. The online availability of the meetings began in June and the same service could occur regarding Town Council meetings, as well, within a month or two. Town leaders favor the new technological service because of the transparency it brings and because of the more direct connection to the Town’s residents.

 CITY OF COOLIDGE

A study has been concluded recommending potential routes for a new highway that will run north to south, connecting the East Valley with Interstate 10. The study was conducted in an attempt to reduce congestion on local roadways such as Hunt Highway and on the interstate itself. The study produced two alternative routes with each having some variations. Both alternatives would pass through land just east of the center of the City of Coolidge, in and near the Attaway Road alignment area. Coolidge was chosen because of the existing transportation infrastructure already in place that includes surrounding existing roadways and the existing Cotton Express transit system. City leaders are justifi ably pleased with the results of the study since it will not only relieve local traffic congestion but would most likely bring enormous economic benefits to the City as well. The location of the chosen routes would increase exposure to the City and the City’s Municipal Airport and would pass by 300 acres of land purchased and owned by shopping mall developer Westcor warranting the likely possibility of the construction of a new mall in the area. The design of the highway itself provides for the possible integration of a passenger railway to be built with it, which would also bring various benefits to the City. ADOT is proposing additional studies to insure the highway is feasible but City leaders feel the project is inevitable and just a matter of time.

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

AFTER HOURS Knowing more about the people we work with is the fun side of the business. It helps start conversations and strengthens business relationships. To nominate a colleague, request an After Hours form from Peter Madrid, peter.madrid@azbigmedia.com.

KARI McCORMICK DIRECTOR OF CLIENT SERVICES — NATIVE AMERICAN DIVISION KITCHELL CONTRACTORS, PHOENIX WITH KITCHELL FOR 2 1/2 YEARS Born in Scottsdale

◆ Husband Terry Fong ◆ son, AJ (26), ◆ daughters, Kassi (21), Hunter (12), newly adopted foster child ◆ stepdaughter, Nici (31) ◆ 2 grand daughters ◆ Great grandfather (maternal), Joseph P. Allyn served as one of the original Associated Justices on the Supreme Court of the Arizona Territory appointed by Abraham Lincoln; ◆ Great grandfather (paternal), Territorial Secretary Richard C. McCormick served at the same time in 1800s

FAVORITES:

SPORTS/TEAMS — College, ASU 1st and UA 2nd (my dad played football there so I have to support them as well). I root for our local teams: Diamondbacks, Suns and Cardinals, but I love watching a great soccer or tennis match. MUSIC — Eclectic from alternative, hard rock, jazz and blues. I saw Carlos Santana and got to meet the band; it was incredible! DESTINATIONS — I loved traveling to Australia and seeing the Great Barrier Reef, an ancient rainforest and spending time at Ayers Rock. My husband is from the Fiji Islands so we will be traveling there this summer to attend a wedding. A European trip is on our near to-do list, but I would love to visit Vietnam, Galapagos Islands and Africa. ACTIVITIES — Golf, tennis, reading and traveling with family

WHAT DID YOU THINK YOU’D BE WHEN YOU WERE GROWING UP? Veterinarian or marine biologist.

12 | July-August 2013

Photo/ Lillian Reid

Received bachelors in Business Administration from ASU; attended Fuller Theological Seminary

WHAT ACCOMPLISHMENT ARE YOU ESPECIALLY PROUD OF? Having kids that have grown into kind, independent and balanced human beings making their own mark in the world. Parenting is the toughest job and you never know if you’re doing it right; you just hope and pray you don’t mess it up too bad. Professionally, a highlight would be serving my second term on the National Indian Gaming Association Executive Board. You are nominated and elected by your peers, which makes this so special. I was awarded the 2012 Great Women of Gaming Rising Star Award which again was from a nomination of peers, so I feel really blessed to have so many wonderful colleagues who I admire and respect.

WHAT WOULD PEOPLE BE SURPRISED TO KNOW ABOUT YOU? I used to do competitive kick boxing, I was an early elementary school teacher and I attended seminary with intentions of becoming an ordained Presbyterian minister.

ADVICE:

RECEIVED – It all comes out in the wash. When you can’t control the behaviors and actions of others, you can spend your

time fighting the chaos or you use your energy to create justice through your own actions. At the end of the day, people will judge you not on the words of others, but on your actions and integrity by which you live.

TO SHARE– Because 90% of my work is with tribes and tribal development, the question I get asked the most is why is working with tribes so different? I always advise anyone interested in working with tribes to first and foremost understand, tribes are sovereign nations. Just as any foreign government they are fully empowered to form their own governments, create laws and are charged to create an environment of well-being in education, health and economic development for their members to thrive. Because of this, tribal development can be very challenging because it’s not all about profit and bottom-line cost. There is a much deeper sense of responsibility toward future generations and wellbeing of whole communities with any development. Once you understand and respect the sovereignty, and that each tribe is very different in their structure and way of doing business, it can be one of the most gratifying markets with immeasurable intrinsic rewards knowing that what you do can change communities.

After Hours

Stephen e. Kovach v Vice President KoVach Building enclosures, chandler With KoVach for 15 years Born and raised in Tempe Graduated from ASU’s Del E. Webb School of Construction u Wife Drew; 2 children ages 2 and 4

resPonsiBilities: Strategic direction of the company, preconstruction and product development

faVorites:

Music — Anything that’s clean with a good beat. Big music fan! destinations — My family is full of travelers. I like to see a new place each year, off the beaten path and away from the tourist traps actiVities — Snowmobiling, exploring new terrain, scuba diving and playing with my kids

What did you thinK you’d Be When you Were groWing uP? I have been all about our family’s business since I was a kid. I grew up around construction and always wanted to be a part of new construction projects.

What accoMPlishMent are you esPecially Proud of? If being a dad is considered an accomplishment, I would say that’s No. 1. On a professional level, problem solving construction methods is a lot of fun.

What Would PeoPle Be surPrised to KnoW aBout you?:

giVing BacK: The company is involved in various Arizona-based charities such as ICAN (Improving Chandler Area Neighborhoods), which included donating the metal roof, metal walls, canopies and all associated labor for the project, while also volunteering personal time from the leadership team.

adVice:

giVen — Listen before you speak. to share — Plan for the long term and enjoy the people you work with.

I can walk on my hands. 13

EXECUTIVE Q&A BY PETER MADRID

Jill B. Hamblen, AIA

Jack W. Hannum

PRESIDENT TRIARC ARCHITECTURE & DESIGN, LLC Years in commercial real estate: 20 Years at company: 7

VICE PRESIDENT TRANSWESTERN Years in commercial real estate: 15 Years at company: 4

Q: WHAT ATTRACTED YOU TO THE INDUSTRY? A: I watched my mom create house plans while growing up. I loved seeing something built from an idea. By the age of 7 I “decided” I wanted to be an architect. I now have the opportunity to help people.

Q: WHAT ATTRACTED YOU TO THE INDUSTRY? A: I went to Cal State-Northridge studying business and finance with the intent of going into investment banking. Commercial real estate wasn’t on my radar screen whatsoever. In a sense, the industry kept finding me. I was fortunate to have received two offers from CBRE as a retail broker sales assistant. Due to family obligations I had in Phoenix that summer, I would not have been able to start until August of 1997. I fell in love with Phoenix during the summer months and decided to stay.

Q: HOW HAS THE INDUSTRY CHANGED SINCE YOU STARTED? A: The speed to market has to be the biggest change. With computer-aided design it takes less time to produce documents. Speed has inherent benefits and drawbacks. The challenge is maintaining quality. Speed can have a negative impact unless the team is working together to stay ahead of the process. Q: WHAT PROFESSIONAL ACHIEVEMENT ARE YOU MOST PROUD OF? A: Becoming a licensed architect was such a milestone but a more recent accomplishment was being selected by Banner (Health). To present our team and be selected among some of the best architects in the industry was an absolute thrill. It felt like our hard work and dedication to the profession had paid off.

Q: HOW HAS THE INDUSTRY CHANGED SINCE YOU STARTED? A: The industry has become extremely service oriented. It’s not enough to meet a client’s expectations, but to exceed those expectations and play to your strengths. Creative value through unique solutions is what drives our team. Q: WHAT PROFESSIONAL ACHIEVEMENT ARE YOU MOST PROUD OF? A: While my partner Bret Zinn and I are very proud of winning Producers of the Year for Transwestern’s Phoenix office in 2011 and 2012, I am most proud of the work I do as a board member with Native American Connections, whose mission is dedicated to improving the lives of individuals and families.

CHRIS JOHNSON

PATRICIA WATTS

Q: WHAT ATTRACTED YOU TO THE INDUSTRY? A: Simple, I love to build things that make an impact. A physical structure enables businesses to grow, their clients to be served and employees to provide for their families. As a native Arizonan with long family ties to the state, it’s exciting to construct buildings that empower communities for decades.

Q: WHAT ATTRACTED YOU TO THE INDUSTRY? A: The diverse opportunities available in the real estate industry and the ability to be involved in projects that profoundly impact cities and neighborhoods.

CEO JOHNSON CARLIER Years in commercial real estate: 41 Years at company: 41

PARTNER DECO COMMUNITIES Years in commercial real estate: 25 Years at company: 18

Q: HOW HAS THE INDUSTRY CHANGED SINCE YOU STARTED? A: Contractors are resourceful and competitive, and have changed with the times. From technology and innovation to environmental stewardship and expedited schedules, the industry continues to raise the bar on how to most effectively serve its clients and as a major driver for our economy.

Q: HOW HAS THE INDUSTRY CHANGED SINCE YOU STARTED? A: The U.S. is at the start of a fundamental shift in how real estate is developed, marketed and used. Post WWII development has now aged and is ready to be replaced. As these buildings, communities and public spaces near the end of their useful life, how will they be re-developed? A new awareness of the consequences of consumerism, the sustainability movement, and the new global economic reality will result in developments over the next decade that will be fundamentally different than what was developed over the past 50 years. I am excited to see, and be a part of, this change.

Q: WHAT PROFESSIONAL ACHIEVEMENT ARE YOU MOST PROUD OF? A: I’m proud of growing and sustaining a hometown business that treats its employees and clients well. One-third of our team has been with us for more than 20 years. In 1975, we had three employees and $3M in revenue. Today, we’re at 40 employees and pushing $100M in revenue.

Q: WHAT PROFESSIONAL ACHIEVEMENT ARE YOU MOST PROUD OF? A: As a residential real estate developer, working with our team at Deco Communities and surviving the housing crisis by developing a meaningful and impactful apartment brand for the post-recession cycle. We shifted from residential construction to the renovation of infill apartment projects. The lessons learned from the past are being applied to develop better business strategies for the future.

14 | July-August 2013

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2013 Industry Leaders

I N COM M E RCIAL

R E A L E S TAT E

#1 in their field

AZRE honors the top industry leaders of 2013

e are impressed by the many individuals who are passionate about Arizona’s commercial real estate industry. Each year AZRE magazine pays recognition to a group of industry leaders who rise above the norm. This year those leaders were chosen from the industry sectors identified in our annual People to Know publication. These leaders were announced and honored at a reception on May 16. To find what drives these individuals, we asked: “What is your greatest business success, and what factors helped you achieve it?”

Architect/engineer:

PatRiCk hayes Pharchitecture

“My greatest business success has been the longevity of PHArchitecture and simply the firm itself. When I started PHArchitecture I had a few keywords that where very important to me and became the foundation of our culture and direction: Integrity, Vision, Innovation, Creativity, Anticipation, Confidence, Thoughtful, Values and Accountability to name a few. The success of PHArchitecture is clearly rooted in the (very talented and longstanding) employees themselves. They have embraced the concepts and culture. They have put it all into practice. The strength of our firm is that we are all on the same page and working for our clients with clarity and relevance. They have been empowered to make ‘aggressive mistakes,’ allowing them to seek the best solutions based within our core values. It is quite compelling to experience it in practice. And exciting stuff for a guy that writes with a crayon.”

Broker:

Dave Cheatham

velocity Retail Group “For me, it is to have made an impact changing the Phoenix skyline for almost 30 years in the real estate business. I am proud to be involved in more than a thousand retail store openings with the result that has created opportunity and employment in many cities throughout the Southwest. Velocity Retail has been able to create the space for some of the finest retail brokerage professionals that are part of our organization. These professionals work together to be a solution to our clients by utilizing their depth of market knowledge and network of relationships. For almost two decades, I have had the benefit of an incredible business partner in Darren Pitts, along with key team members. Most of these team members have been with us for more than 10 years and they each bring their unique strengths to create an environment where innovation and accountability accelerate our clients’ success.”

Attorney:

Developer:

kaRen GayloRD

R. ChaPin Bell

Jennings haug & Cunningham

the P.B. Bell Companies

“In my environmental law practice and in business, I believe that success is measured by how satisfied and happy my clients are. This is particularly the case at the end of a difficult project. Tempe Marketplace is a great example of a challenging project that I consider to be a great success. My client, Brad Wilde and his companies, had a grand vision full of major obstacles. Brad brought me on to assist with all environmental issues associated with transforming a contaminated federal superfund site occupied by aggregate mining operations, closed solid waste landfills, salvage yards and unregulated industrial facilities into a thriving retail and entertainment center. While many people may have walked away, I became excited to be on this project team, which I, too, saw as a significant improvement and future asset to the community.”

“When we develop an award-winning community that is well accepted by the market and the investment community, this always creates the feeling of success within me. However, what I feel is our organization’s greatest business success is the core values and culture we have created at The P.B. Bell Companies. We have approximately 200 team members. We strive to create an environment for all employees to grow, feel appreciated and are happy. We have successfully done this. We could not create an award-winning community without the people that surround me.”

INDUSTRY LEADERS ECONOMIC DEVELOPER:

DON KEUTH Phoenix Community Alliance

“My greatest success is helping to build momentum in redeveloping the Discovery Triangle, the 25-square-mile area between Arizona State University in Tempe, Downtown Phoenix and Papago Park. The region is one of the most asset-rich parts of Southwestern U.S. with Phoenix Sky Harbor International Airport, PHX Sky Train, light rail, fiber, employment centers, knowledge workers and universities. Business executives are taking notice of the benefits of locating here. Th is year, 24 major projects are under construction, expected to result in an investment of $688M. Another 22 projects are planned, representing 5.6 MSF of additional space. Since the Discovery Triangle Development Corporation began driving business in 2010, 30 major projects have resulted in an investment of $2.6B and 3.4 MSF of additional space. “

GENER AL CONTR ACTOR:

DAVE CRAWFORD Sundt Construction

“My greatest business success is helping to contribute to the overall success of our company. Sundt is employee owned, so performance of the company is a direct reflection of the efforts and contributions made by our employees. We have been very fortunate to have many good people making good decisions, and because we are employee owned, our people are able to share in the rewards of their efforts. We are committed to finding solutions for our customers and giving back to our communities. We have discovered that when we focus on our customers and actively participate in our communities, good things happen for our employees and our company. Our industry is blessed with good owners, architects, engineers and industry associates.” 18 | July-August 2013

FINANCIER/ACCOUNTANT:

KAREN HALPERT

Cole Real Estate Investments “In the three years I’ve been with Cole, our real estate team has acquired more than $8B in assets, which translated into the acquisition of more than 1,100 properties and 1,009 of these properties were transitioned by my team into the Cole organization. By the end of 2012, the Single Tenant Property Management Team managed almost 1,900 single tenant retail, office and industrial properties. The acquisition pace for Cole is anticipated to continue in 2013 at an even greater pace than prior years with a $4B acquisition target. Process improvements, staffi ng and the transitioning of new assets are my biggest accomplishments and will continue to be my focus going forward. None of the work completed in the past three years could have been accomplished without an incredibly talented team of real estate professionals.”

PROPERTY MANAGER:

ALISA TIMM

Lincoln Property Company “Success is defined as the accomplishment of an aim or purpose. My greatest success comes from continuously identifying and becoming a part of creative, dynamic and unique opportunities while being surrounded by people I highly respect. I cofounded Trust Realty Advisors, a successful investment and property management company and grew the company for 20 years. In May 2010, I was recruited to open the Property Management Division for a large international real estate firm and grew the operations from one person and 500,000 SF to more than 10 people and 3 MSF in less than three years. Most recently, I was able to return to my developer/owner roots and joined Lincoln Property Company, giving me a new opportunity with a more rounded platform.”

SUBCONTR ACTOR:

STEPHEN KOVACH V

Kovach Building Enclosures “We’ve stayed on top of technology and innovation that keeps our customers coming back. Owners are looking for single-source responsibility and CMs are looking for single-source logistics, problem solving, design assist and coordinated shop drawings. We’ve answered by offering a full enclosure solution. We now have the right people in the right places to continue to respond positively to the demands of the constant challenges this model creates. There are cost and quality benefits to a single-source subcontractor that can streamline the process. Projects see efficiencies in management, logistics and cost by going that route, but you need smart people on board and adequate support staff to be effective. Having a wide range of experience and innovation in an organization will breed success.”

COMING NEXT ISSUE Office & Industrial Report - Part II Real Estate Law Guide AMA/Arizona Multihousing Association ULI/Urban Land Institute CMAA/Construction Management Association of America Coreslab Structures Profile JANUARY-FEBRUARY 2013

MAY - JUNE 2013

For additional information, call 602.277.6045 or visit,

MARCH-APRIL 2013

BIRTH OF A SIGNATURE SCIENCE PARK

AZREmagazine.com

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

RISING TO THE TOP THE VALLEY'S DEVELOPMENT COMMUNITY LOOKING UP

2013OUTLOOK MAJOR BUILDING PROJECTS TAKING ROOT ONCE MORE INSIDE

SPECIAL SECTION p. 30

SPECIAL SECTION p. 27

INSIDE

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

Construction In Indian Country p. 30 8th Annual RED Awards p. 40 McCarthy Building Companies p. 65

OFFICE / INDUSTRIAL BY PETER MADRID

MONEY IN THE MARKET With foreclosures tailing off, equity capital sources looking for value opportunities in office and industrial properties

s recent as two years ago, commercial foreclosures were affecting the markets and underlying property values. Then talk surfaced that the “blue blood” money was back and looking to make deals. Fast forward to 2013: Is this still the case? “In regards to office and industrial, the ‘blue blood’ is very active in the marketplace,” says Todd Jarman, senior vice president Commercial Real Estate for BBVA Compass. “The recent announcement of joint ventures with Clarion Partners (and Wentworth Property) and Walton Street Capital (and Everest Holdings) continue a string of similar headlines we have seen more for many months now. Values are holding very well, Jarman says, and in many cases 20 | July-August 2013

appreciating nicely. He adds the market has not seen the wave of commercial foreclosures that were expected a number of years ago. Given the strong demand for good product, he adds, lenders holding distressed properties have instead opted to either entertain short-sales, note sales or direct borrower negotiations. “In regards to the current lending environment, our local banks are very hungry for stabilized product (both office and industrial), and we are beginning to see lenders take market/leasing risk on industrial buildings (big box /West side) — as several speculative developments are underway,” Jarman says. “Lenders continue to be hesitant on market/leasing risk on office, unless a very ‘special story’ exists. I would suspect that any new office development would require substantial pre-leasing — at least 50% or a number that could provide break even DSCR.”

OFFICE / INDUSTRIAL

Mark IV Capital has entered into a 170,000 SF build-tosuit office at Chandler Freeway Crossing with General Motors. Mark IV plans to continue to offer buildings on a speculative and build-to-suit basis.

According to Scott Holland, managing partner, Keystone Commercial Capital, foreclosures have tailed off to a point that they are not having the downward pressure on values that they did over the past few years. “I believe the market has found a floor and while there are still good values to be found in the market, the increasing transaction activity is bringing buyers back into the market as they can begin to feel comfortable with where the floor is and can focus on creating value as the market begin to resurge. “As for money, I believe there is a significant amount of various equity capital (institutional, wealthy private and true entrepreneurial investors) in the market looking for value creation opportunities,” he says, “These markets appear to be in the early stages of recovery and everyone is trying to get an

investment stake in the ground in order to enjoy the market lift that traditionally follows a significant down market — and what a down market it was. But just as with the abundance of equity capital, there is an abundance of debt capital. While the sheer volume of both equity and debt capital can’t be disputed, their adherence to fundamentals at this stage of the recovery is also clear. “The not-so-distant memory of bad buys and bad loans will continue to keep both of these capital sources disciplined in their approach to the business for the reasonable foreseeable future, Holland says. Commercial foreclosures are waning and CMBS special servicers have the bulk of what is available, says Jaclyn Noel, senior VP and private banker at Wells Fargo. 21

OFFICE / INDUSTRIAL BY PETER MADRID

VICKI WILLIAMS

SCOTT HOLLAND

JACKI NOEL

TODD JARMAN

Site of a $60M, 900,000 SF Class A industrial park near Sky Harbor International Airport to be built by a venture formed by Wentworth Property Co. in Phoenix and Clarion Partners in New York.

“The process with these groups takes longer because of the layers of legality,” she says. “Bank inventories are down and the economy is improving. Capitalization rates for these property types are normalizing. Capital is flowing from different sources both locally and internationally, especially from Canadian investors. “All the usual suspects are active again: banks, CMBS, life companies, pension funds, finance companies, private placements. Our Private Bank is actively providing commercial real estate investor financing.” The Metro Phoenix office market remains very soft due to over-supply and weak absorption, says Vicki Williams, senior VP Commercial Real Estate at Alliance Bank of Arizona. Leasing activity, she says, consists primarily of tenants moving from one submarket to another and/or moving up from Class B properties to Class A properties. “Institutional capital is available to acquire trophy, stabilized Class A properties only, which trade at low cap rates,” Williams says. The market for Class B properties is the most active, according to Williams. Buyers for stabilized — or relatively stabilized — Class B properties include investment funds and private REITs who partner with pension funds. These assets are selling at higher cap rates, which is reflective of those investors looking for risk adjusted returns. “They do not anticipate rents to trend upwards in the short term and therefore plan on a longer hold strategy of 7 years or 22 | July-August 2013

more,” she says. “Truly value-ad, distressed, multi-tenant office properties are being acquired by buyers willing to take more risk for a higher potential return. These investors are Canadian investors, individual investors and opportunity funds. “Financing for these properties continues to be difficult to find due to the higher risk and lack of cash flow, as these value-ad properties have significant vacancy and may also need some rehab work. They are being acquired at very favorable prices, often from a lender.” These investors’ strategy, Williams adds, is to lease up the properties at the current, low rental rates and then sell them at lower cap rate within a 3-year time frame. Multi-tenant medical office is the favored property type, though well located multitenant office properties in the Southeast Valley, the Camelback corridor and North Scottsdale are also trading. “While the office market is expected to remain soft for the next several years, the industrial market has been strengthening,” Williams says. “Institutional investors continue to prefer big box, single-tenant properties. Life insurance companies are starting to invest in new, speculative construction of big box space based on the strong absorption in this segment seen in the past couple of years. “Multi-tenant, small bay industrial properties are being acquired by private investment companies consisting of ‘friends and family investors.’ Th is Class B market is the most active.”

e: 013 In Issu ber 2 ry t e m ve Sep

E ing m Co

AZRE magazine will identify industry trends and give its readers an insight into what’s happening in: • Office • Industrial • Retail • Multi-family • Healthcare • Land brokerage The new BIG DEALS section will also feature the Top 5 Sales and Top 5 Lease deals of the last 60 days. Learn more about this new section and how to get involved by calling

602.277.6045

BROKERAGE BY PETER MADRID

OUT OF THE GATE FAST Demand for new industrial and office properties picking up momentum

ith the Valley’s housing market healthy again, developers and builders of industrial and office properties are hoping to ride the wave. With the recession (hopefully) a distant memory, the industrial sector has sprinted out to the lead. “Industrial projects have significantly outpaced office projects in our pipeline,” says Andrew Geier, executive vice president at Layton Construction. “Since finishing the Cigna Phoenix Central Multi-Specialty Center in late 2012 with Clarius Partners, most of our office portfolio has been comprised of tenant improvement projects. In regard to industrial construction, Layton is 70% complete with its 1.5 MSF Marshalls Distribution Center. The Marshalls project has several unique features, Geier says. Other than its sheer size, it also boasts 52-foot clear heights and 6,500 kilowatt of generator back up power. “We are also currently building out 80,000 SF of space for Maxwell Technologies,” Geier says. “The facility will produce carbon fi lm used in capacitor production.” In addition, Layton was recently awarded a 400,000 SF expansion to Macy’s Fulfi llment Center in Goodyear. Also in Goodyear, Layton has been awarded the new 160,000 SF foot facility for The Cookson Company, Inc., an industrial door manufacturer. “Our outlook for industrial projects remains very positive,” Geier says. “Obviously a strong backlog of projects helps shape that opinion, but we also think that the Valley offers several advantages for companies searching for a new location. Our positive outlook includes new speculative buildings, but we think the majority of the spec buildings will be industrial — with spec office lagging well behind.” The West Valley appears the hot spot for industrial projects, says Tammy Carr, vice president business development for Howard S. Wright Construction, a Balfour Beatty company. “Clearly it (the West Valley) has seen significant planning efforts in the speculative industrial sector and all of our industrial developer clients are seeking the appropriate timing to bring more product online,” Carr says. “Most seem to be continuing forward with design of facilities around the 400,000 SF range, but with a very watchful eye on the leasing results of those currently under construction.” Balfour Beatty Construction just delivered to market a 185,834 SF refurbished cross dock distribution facility for Liberty Property Trust. The facility, Liberty Sky Harbor Center, is at 2626 S. 7th St. in Phoenix. This same client, Carr adds, is also partnered with the City of Tempe on a 100-acre, 10-year development plan for the construction of office, industrial and commercial flex space named Liberty Center at Rio Salado which will kick off later this year with a possible speculative office building. “Additional new to market industrial projects for Balfour Beatty includes a process

24 | July-August 2013

TAMMY CARR

ANDREW GEIER

The interior of the “Net Zero” DPR Construction office in Phoenix.

facility in the East Valley,” she says. “Whereas the West Valley seems to be the speculative king, the East Valley seems to have captured the hearts and commitments of the end users.” From Sundt Construction’s perspective, speculative development is still not something it is seeing a lot of in the office sector. “We have, however, seen good activity in the private office market, including projects related to tenant improvements, renovations, and build-to-suits,” says Ian McDowell, pre-construction manager Southwest District. “We recently completed tenant improvements for Allstate Insurance

and in the Fountainhead Corporate Park as well as a renovation at the Arizona Public Service Deer Valley campus,” McDowell says. Sundt also has secured three additional office projects in the past three months: a renovation for a public utility company, a tenant improvement for a private company, and a new build on an existing campus for a private client. Total value of these projects approaches $90M, McDowell says. Jobs for Sundt’s office clients comprise nearly 40% of its new work this year and McDowell says the company expects that trend continuing into 2014. “We have also seen a big uptick in developer activity in the office

BROKERAGE market,” McDowell says. “Many of the developers we are working with are seeking key anchor tenants which will be the catalyst to kick off some very attractive office projects in the next year. We believe private developers are among our best business prospects and plan to closely monitor that market for opportunities.” When it comes to office projects in the Valley, DPR Construction is keeping busy. Tenant improvement clients include Willis North America, Digital Realty Trust, eBay, Morgan Stanley & Co., and Alliance Project Advisors. “I feel we (the Valley) are returning from the recession a little better than other areas,” says Michael Rauschenberger, commercial office leader for DPR. “What’s happening now is office space is getting gobbled up by larger tenants. There are more and larger users coming to town. They are looking for 100,000 SF to 150,000 SF in a building, or in a couple of buildings. “It may be 6 to 8 months before settling on a building and then it’s not what they want. Then it’s a TI, and they end up on two floors. Trying to find Class A office space on contiguous floors is getting harder and harder.” What’s fueling the office trend? Phoenix is the third fastest growing city in the U.S. coming out of the recession. California is facing tax issues. Lease and rental rates are low. Deals are getting made. And the Valley has a pretty stable economy. Rauschenberger predicts there will be more product on the market in the next year to year and a half. He also says there is an increased demand for renovated and repurposed buildings in Metro Phoenix. And DPR has perhaps the best example of this: its award-winning headquarters at 222 N. 44th St. in Phoenix.

1.5 MSF Marshalls Distribution Center being built by Layton Construction.

According to industry experts, sustainable features are consistently and steadily being requested by businesses seeking space in existing renovated, repurposed and updated buildings. Tenants, apparently, are willing to pay for sustainable features. As a key player in corporate office renovations and repurposing, DPR is leading the charge with its LEED Platinum office which was recently certified as the world’s largest Net-Zero Energy Building (NZEB) by the International Living Future Institute (ILFI) through its Living Building Challenge (SM) program. “Our office is a living, breathing lab, and a showcase for sustainability,” says Rauschenberger, who adds DPR conducts four to five HQ tours a week. “Whether it’s a TI or ground up, users are incorporating more and more sustainable features. Some of these companies have a sense of pride and care about the people that work there. “People should like to come to work,” he says, “and we’re seeing that more and more. It’s amazing to see how these new projects are starting to embrace a change in office design.”

SPECIAL DELIVERIES

Industrial and office properties in the pipeline INDUSTRIAL

• Class A industrial park, Phoenix, 900,000 SF, Wentworth Properties and Clarion Partners • WinCo distribution center, west Phoenix, 800,000 SF, WinCo Foods • Liberty Sky Harbor Center, Phoenix, Class A crossdock warehouse redevelopment, 185,834 SF, Liberty Property Trust • EastGroup @ Chandler Freeways, Chandler, manufacturing and warehousing, 126,000 SF, Ryan Companies US

OFFICE

• State Farm headquarters, Tempe, 2 MSF, Ryan Companies US • General Motors Innovation Center, Chandler, 170,000 SF, Mark IV Capital • Advanced Business Services Center, Continuum in Chandler, 160,000 SF, Nationstar Mortgage • GoDaddy Global Technology Center (pictured below), Tempe, 150,000 SF, Ryan Companies US

26 | July-August 2013

Brokerage profiles JokakE ConstruCtion sErviCEs CasEy CartiEr, President 8 Industrial projects completed in the past 2 years: CSK Automotive, Wells Fargo SLEP Utility Plant, GAP Fulfillment Center, Wells Fargo Statement Warehouse Expansion 8 Office projects completed in the past 2 years: Cable One Corporate Headquarters, Silicon Valley Bank Regional Offices, Kimley Horn Phoenix Office, Arizona Blue Stake Headquarters, Primary Financial Offices, United Healthcare Group Tricare Facility

Q: How active will your company be in tHe industrial market tHe next 2 years? A: Jokake will continue to be very active in the industrial market as the vacancies fall and demand for small to mid-size projects continues to grow. We see our strengths, in adaptive re-use, automation, and ground up construction with projects less than 250,000 SF being very valuable to the marketplace as it continues to change with the new retail and distribution processes that are emerging.

Q: How active will your company be in tHe office market tHe next 2 years? A: For the past 30 years the Southwestâ&#x20AC;&#x2122;s office market has been the core of Jokakeâ&#x20AC;&#x2122;s business model. We have developed tremendous resources that allow us to deliver high quality projects in extraordinarily short amounts of time. This focus on being a preeminent general contractor in the office market for both build-tosuit and tenant improvements projects will allow us to continue our commitment to the office market and our clients.

LGE DEsiGn BuiLD DaviD sELLErs, President 8 Industrial projects completed in the past 2 years: 12 8 Office projects completed in the past 2 years: 17

Q: How active will your company be in tHe industrial market tHe next 2 years? A: Very active. We are seeing increased activity in both larger (100,000 to 500,000 SF) and smaller (10,000 to 100,000 SF) projects.

Q: How active will your company be in tHe office market tHe next 2 years? A: Again, very active. We are seeing increased activity in medical office and high tech office space. Our current office projects range in size from 6,000 SF to 105,000 SF.

(top) Jokake Construction: Gap distribution center in Phoenix. (above right) arizona Blue stake in tempe. (top right) LGE Design Build: toMar industries in Gilbert. (right) HDr inc., architects and engineers, in Phoenix. 27

BROKERAGE CHASSE BUILDING TEAM BARRY CHASSE, President  Industrial projects completed in the past 2 years: 2  Office projects completed in the past 2 years: 5

Q: HOW ACTIVE WILL YOUR COMPANY BE IN THE INDUSTRIAL MARKET THE NEXT 2 YEARS? A: Chasse Building Team has grown every year since inception because of our ability to stay ahead of the market trends and provide our clients with exceptional service. We see the demand for industrial space to continue to increase throughout the Valley as users are absorbed. We are tracking the largest gainers in terms of net absorption and the largest declines in occupancies throughout Metro Phoenix. Over the next two years our team plans to be very active in the industrial market. With the employment growth in Phoenix growing at a rate nearly double that of the national average and home prices rapidly increasing it is anticipated that the demand for industrial space will continue to rise. The industrial market is expected to be very strong sector.

Q: HOW ACTIVE WILL YOUR COMPANY BE IN THE OFFICE MARKET THE NEXT 2 YEARS? A: Chasse has seen construction in the office sector slowly gain momentum over the past several years as the vacancy rates have continuously declined. With the anticipation that the net absorption will continue to be positive in 2013 and the employment growth increase at the current high rate, we anticipate a strong demand for new and renovated offices. In addition, with the decline in concessions over the past 12 to 18 months our team expects this trend to continue. Over the past six years, Chasse has created a strong resume of office projects. Our company was designed to have a cost-effective overhead model which is combined with a highly experienced team. Th is has created a winning formula for all of the clients we serve within the industry. With the combination of a market demand increase, our cost-effective model, team member’s expertise and desire to exceed our client’s expectations, we expect to be very active in the office market these next two years. We are in the office market sector for the long haul.

DPR CONSTRUCTION MICHAEL RAUSCHENBERGER, Commercial Office Leader  Industrial projects completed in the past 2 years: Arizona Public Service statewide tenant improvements program; Karsten Manufacturing Corporation, PING Golf, Campus Warehouse & TI program  Office projects completed in the past 2 years: Willis North America, national TI program; Digital Realty Trust, state TI program; Morgan Stanley & Co.; Alliance Project Advisors, national corporate office building build-outs and improvements.

Q: HOW ACTIVE WILL YOUR COMPANY BE IN THE OFFICE MARKET THE NEXT 2 YEARS? A: As the economy steadily recovers, insurance and banking services, law fi rms and corporate office clients are contracting for much needed tenant improvements and corporate expansions. Arizona has optimal opportunities for new companies to build-out in vacant, foreclosed structures, while established fi rms may choose to repurpose an older building, or stay put and upgrade their current office spaces. All these scenarios are revitalizing the community and upgrading the neighborhoods where the businesses are located. As one of our own clients, DPR chose to refresh our own working environment by pushing the limits on high-end finishes and maximizing sustainability goals for our new Phoenix office. Recently certified as the world’s largest NetZero Energy Building (NZEB) by the International Living Future Institute (ILFI) through its Living Building Challenge (SM) program, we chose to be in the Discovery Triangle and to renovate a neighborhood eye-sore building. We turned the remains of an abandoned adult-retail boutique into a “living lab” for the Arizona community and a LEED Platinum building in a growing Phoenix community.

(Left) Chasse Building Team: Central Arizona Project pumping plant upgrade. (Left below) West MEC district office and classroom. (Below) Willis North America, national tenant improvement, Scottsdale office.

28 | July-August 2013

QUALITY • CRAFTSMANSHIP • TRAINING DEMAND THE BEST. DEMAND SMACNA ARIZONA CONTRACTORS

To learn more, visit www.smacna-az.org or call

(602) 734-0214

IIDA TUCSON MARKET UPDATE BY PETER MADRID

BUILDING FOR THE FUTURE Tucson’s economic development is riding on the prolific growth of the University of Arizona

ust as Arizona State University construction projects are springing up around the Valley, the same can be said for the University of Arizona down the interstate in Tucson. And just as ASU’s building bonanza is touching all parts of the Valley, UA’s growth is being felt all over Tucson.  Old Main on the UA campus is undergoing a $13.5M facelift by Sundt Construction.  The North End Zone at Arizona Stadium is getting a $72M renovation; Mortenson Construction is the GC.  The Junction at Iron Horse will be a $10M, 232-bed off-campus student housing complex near the UA campus. Adolfson & Peterson Construction is the GC.  A $196M, 4-mile modern streetcar line connecting the UA campus to the 4th Avenue commercial district, downtown and the redevelopment area west of downtown is under construction. “The strengths of being a university town is the integration with the University of Arizona,” says Pam Sutherland, economic development director with the Downtown Tucson Partnership. “A modern street car line will link UA to downtown and change the entire dynamic. UA has classes downtown. And UA has student housing downtown. This really is the right relationship we need to have with the people from UA. Developers know that, and they know what future development looks like.” Because of UA, Tucson also is becoming a hotbed for bioscience and biotech. Speaking before the Arizona Association for Economic Development, UA President Ann Weaver Hart touched on the disciplines that she says will ensure a successful partnership between higher education and the economic development 30 | July-August 2013

community in Arizona. “Knowledge-based graduates are poised to make an incredible impact on the well being of our state,” she says. “At UA, we’re rethinking our role in higher education and integrating with what you (economic developers) do.” She stressed the importance of engaging knowledge throughout the curriculum, including such UA colleges as architecture and planning, arid land studies and the school of mining. UA’s crown jewel is the 65-acre Bioscience Park in central Tucson. Its eastern boundary sits along Kino Parkway, one of the major north/south transportation corridors in Tucson. The Bio Park is 2 1/2 miles from the main campus, 4 miles from Tucson International Airport and 3 miles from Downtown Tucson. It’s within a 5-mile radius of 40 biotech companies, including three major research hospitals. Designed as an urban park, it eventually will accommodate more than 3 MSF of development, from single-story to six-story buildings. “I am a committed believer in the economy,” Hart says. “Of the higher education institutions in the state, and we have three great universities, we are just cracking the surface of the relationship of the (higher education) system and economic development. We can be great partners with you to create that wonderful future.” Higher education, she says, is adding $8.3B to the economy of this state — just in direct economic impact.

OMER MIRELES

MULTI-FAMILY The multi-family market that’s blazing in the Valley also is quite active in Tucson. Leading the charge is HSL Properties with its luxury Encantada developments. HSL just completed the 272-unit Encantada Dove Mountain. HSL’s 288-unit luxury complex Encantada at Steam Pump, recently broke ground. “We are continuing to look for opportunities both here and in Phoenix,” says Omer Mireles, executive vice president at HSL. “This is a select submarket we’re in, and there’s quite a bit of supply coming on line — this also includes student housing.” Mireles attributes Tucson’s multifamily spike to what occurred during the recession. Or actually, what didn’t occur during the recession, and that was the construction of new units. “During the recession there was pent up demand in Phoenix,” Mireles says. “Here in Tucson, even before the downturn, there was very little new construction. There is an opportunity to build now to serve a demand that will be there for some time. “ As is the case in the Valley, Tucson is delivering high-end apartments to a highly mobile, younger demographic. However, Mireles cautions that the notion of the “birth of the renter nation” may be just that — a notion.

ANN WEAVER HART

BOB KAPLAN

(Left) tucson Modern Street car construction (Right) UA off- campus housing at the Junction at iron horse

“Consumers are still deeply engrained in buying their own home,” he says. As far as the housing market in Tucson, Mireles says the Old Pueblo didn’t see the amount of problems that affected the Valley during the housing crisis. “Demand has been incredible out here in certain submarkets, but pretty soft in others,” Mireles says. “The northwest market (where most of HSL developments reside) is very strong.” Brokerage report } Office “In the past we reported signs of life in the Tucson office market. Now, with some certainty, we can say that we have a pretty strong pulse and other vital signs are improving. Based on the current level of market activity, this has been verified by all of the PICOR office agents and we’re hearing the same from the other active Tucson brokers. By no means does this indicate a complete recovery, but it does indicate that we’re on the right path. “After hovering around 12% vacancy for that last several quarters, we expect that we’ll start to see a slow reduction in available space. In order for this to happen, Tucson will need to see more job creation, and we seem to be poised for that. Based on some of the new office space requirements from existing businesses, as well as inquiries from

Rob gLASeR

thoMAS J. NieMAN

businesses looking to locate in the Tucson market, we are optimistic that we’ll start to see some of these needed jobs. “In addition to more jobs, we’ll also need to see the national, state and local economies continue their path to health, along with some more certainty and better understanding of what to expect from the implementation of the new health care regulations. The far reaching effect of these two areas will absolutely determine how much and how quickly our local office market continues to improve.” — Thomas J. Nieman, SIOR, Principal, PICOR } Multi-family “The multi-family market fundamentals continue to slowly improve in Tucson with absorption and rental rates slowly increasing and vacancy declining. According to Apartment Insights / REAL DATA, citywide vacancy stood at 9.44% and average rent at $631 per unit for the first quarter 2013. Both are improvements from Q4 2012. The Class A sector of the market is much stronger than class C properties with citywide vacancy for A properties averaging 7.7% while C property vacancy remains at approximately 13.3%. Downtown and University area submarkets remain the strongest markets and are benefiting from the Tucson Modern Streetcar and the revitalization of the downtown area. “New apartment construction, both student housing and standard market rate, has returned after a few very soft years. Deliveries for 2012 totaled 1,062 units, of which 206 units were student housing. Currently there are 1,648 units either

under construction or recently completed. Expected unit completions in 2013 total approximately 1,180 with 555 being student housing. The student housing market at the University of Arizona is going through big changes with over 1,000 units and over 3,000 beds being delivered between 2012 and 2014. The new student properties offer a level of quality, access and amenities not seen previously at the University of Arizona.” — Bob Kaplan, Principal, PICOR } Industrial “The trajectory of the Tucson industrial market is clearly an improving one. After two quarters of strong absorption (Q4 2012 and Q1 2013), 150,000 and 166,000 square feet (sf) respectively occupancy of industrial space as improved from 88% to 89%. Q2 2013 should be very strong with absorption in the range of 400,000 sf. The consolidation trend Tucson saw for the past several years is clearly over, and positive absorption has taken hold. “A balanced market between what is available and occupancy demand will occur at an occupancy level of 92%. Although a vacancy rate of 8% seems relatively high, the Tucson market contains many older less functional spaces that do not compete well for tenants. At this point in the market, we expect to see rents increase. At the current pace, we expect this to happen in the next 12 to 18 months. “Once rents increase, tenants often become interested in buying, and in time, building and land values should improve as well. We may even see developers, who have been dormant in the market for several years, contemplating new projects.” — Rob Glaser, SIOR CCIM, Principal, PICOR.

PAM SUtheRLANd

IIDA TUCSON MARKET UPDATE

Q&A

BY PETER MADRID

JOE SNELL PRESIDENT & CEO Tucson Regional Economic Opportunities

Q: TREO RECENTLY LAUNCHED A NEW ECONOMIC

DEVELOPMENT STRATEGY FOCUSED ON STRENGTHS OF DIAGNOSTICS IN SOUTHERN ARIZONA. HOW IMPORTANT ARE BIOMEDICAL SCIENCES TO ECONOMIC DEVELOPMENT?

A: Our bioscience assets, particularly in the field of diagnostics, are world class. It’s no secret that the size of the bioscience industry and its projected growth represent a massive opportunity, so positioning our region to benefit from the industry is very important. We identified bioscience as a targeted industry as part of our original Economic Blueprint, and we’ve stayed focused on building the cluster and refining our focus. We’ve worked very hard to help our large companies like Ventana Medical Systems, now a member of the Roche Group, and smaller companies like the newly-relocated Accelerate Diagnostics secure the talent and facilities they need to continue to prosper here. The presence of a top research university is a very strong asset. The economic impact is just beginning.

Q: THE COMMERCIAL REAL ESTATE INDUSTRY IN

completion, has attracted a number of new restaurants, new retailers, small business incubation and co-working spaces. I’m excited to see the broad spectrum of the environment — new small and large business, public and private investment — accelerating development.

THE VALLEY IS MAKING A NICE RECOVERY FROM THE RECESSION. HOW HAVE TUCSON AND SOUTHERN ARIZONA FARED?

A: We’re seeing similar results. The general trends are certainly

NOW? WHAT WILL THOSE CHALLENGES BE IN 5 YEARS? IN 10 YEARS?

up and we’ve had two consecutive quarters of strong commercial leasing activity. Companies we’re working with are expressing a strong preference to lease rather than build and lease pricing is generally still attractive, but our supply of prime space is tightening.

Q: HOW IS TREO DOING IN ITS MISSION OF CREATING NEW BUSINESSES, EXPANDING OF EXISTING BUSINESSES AND ATTRACTING COMPANIES THAT OFFER HIGH WAGE JOBS?

A: Last year was very strong — more than 2,200 new jobs — and we’ve had one of our best years this year so far with more than 2,400 jobs announced. Our project pipeline has been very active across a very wide spectrum of industries and we’re excited about a number of working projects that are nearing fruition. THE LANDSCAPE OF DOWNTOWN TUCSON SEEMS TO HAVE CHANGED THE PAST 5 YEARS. WHAT ARE SOME OF THE PROJECTS YOU’RE EXCITED ABOUT?

A: The building boom downtown has been great to watch, and there is tremendous entrepreneurial energy focused downtown right now. The urban feel and increased density, coupled with the mobility provided by the upcoming modern streetcar 32 | July-August 2013

Q: WHAT CHALLENGE OR CHALLENGES DOES TREO FACE

A: Tucson’s economy is very strong in the aerospace & defense sector. With sequestration effects looming, there will be challenges in adapting that industry to new marketplace realities. However, we are the best positioned to meet that challenge for a few reasons. First, our A&D sector has deep experience in commercial aviation, a market expected to grow substantially in future years. We also have a tremendous opportunity to capture the UAV business in coalition with our other state partners. As president and CEO of TREO, Joe Snell brings 24 years of experience leading regional economic development organizations to an agency focused on the coordination of all economic development activities in Southern Arizona. He has led successful economic development organizations in communities of various sizes. His knowledge on building strategic, competitive and balanced economic development efforts has resulted in national recognition for his leadership role in creating strong economies in high growth communities. In his previous position he was president of the Metro Denver Network. Snell holds a bachelors degree from the University of Nebraska .

INTERNATIONAL INTERIOR DESIGN ASSOCIATION: PRIDE AWARDS 2013 IIDA Southwest PRIDE Award winners presented April 24 at Copper Blues, CityScape, Downtown Phoenix

1. 1. NJOY Best of Show Design Excellence Commercial Office under 10,000 SF KRAUSE INTERIORS

3. 4. 2.

2. PARADISE VALLEY MUNICIPAL COURTHOUSE Design Excellence On the Boards DICK & FRITSCHE DESIGN GROUP 3. ARIZONA COMMERCE AUTHORITY — RELOCATION PROJECT Design Excellence Commercial Single Space SMITH-GROUPJJR 4. COLE CAPITAL REAL ESTATE INVESTMENTS Design Excellence Commercial Officer Over 25,000 SF GENSLER 5. BFFB Design Excellence Commercial Office 10,000-25,000 SF KRAUSE INTERIORS

34 | July-August 2013

6. UNIVERSITY OF ARIZONA HEALTH SCIENCES EDUCATION BUILDING Design Excellence Education Outstanding Team on a Design Project Ayers Saint Gross Architects and CO Architects AYERS SAINT GROSS 7. ANIMAL DERMATOLOGY REMODEL Design Excellence Creativity on a Budget Design DICK & FRITSCHE DESIGN GROUP 8. DOUBLE VISION Design Excellence Residential, Single Space LORI & CARROLL & ASSOCIATES

8. 9. BRIGHTHAWK CASITA Design Excellence Residential, New Residence

THE WAGNER PARTNERSHIP 10. LEASEHAWK Award of Merit Commercial Under 10,000 SF KRAUSE INTERIORS

10. 35

INTERNATIONAL INTERIOR DESIGN ASSOCIATION: PRIDE AWARDS

11.

12. 11. SUTTER HEALTH EDEN MEDICAL CENTER Award of Merit Healthcare Over 50,000 SF

MCCARTHY NORDBURG 13.

12. GATEWAY COMMUNITY COLLEGE Award of Merit Education

SMITHGROUPJJR 13. BABBO ITALIAN EATERY, Mesa and Tempe Hospitality + Restaurant Award of Merit

FORM DESIGN

14. SALVATION ARMY RAY AND JOAN KROC CORP COMMUNITY CENTER Award of Merit Public Facility

DICK & FRITSCHE DESIGN GROUP 14.

15.

15. CENTRAL ARIZONA COLLEGE ARAVAIPA CAMPUS Award of Merit Best Product Use in a Space

ARCHITEKTON 16. RIO SALADO COMMUNIVERSITY AT QUEEN CREEK Award of Merit On the Boards

DICK & FRITSCHE DESIGN GROUP 16. 36 | July-August 2013

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IIDA BY PETER MADRID

MAKING LIFE BETTER THROUGH DESIGN

ommunity. Collaboration. Compassion. Creativity. Four words that describe what the International Interior Designs Association (IIDA) Southwest chapter — comprised of City Centers Phoenix, Tucson, Las Vegas and Albuquerque — represents. The commercial interior industry is all about creativity. With more than 350 members of all levels, the Southwest chapter — those in Arizona specifically — are the creative minds behind many of the dynamic and spectacular interiors that can be found in financial institution offices, all levels of education facilities and law offices, to name just a few. Its annual event is the Design Excellence Awards, also known as the PRIDE Awards. It highlights the best work by Southwest chapter designers — both professionals and students. But the “C” most cherished stands for Community. This year IIDA Southwest unveiled a new philanthropic undertaking — Connect4 — that promises to make a big difference in the community. “The meaning behind the Connect4 event is two-fold,” says Cheyne Brown, City Center vice president and an interior designer at Krause Interiors in Phoenix. “It was conceived as a way to bring together all four City Centers and to focus on four C’s. It was important to us that each City Center was able to select a charity to support what was important to their specific community and that it not be a ‘task,’ but something we could all

Cheyne Brown 38 | July-August 2013

Jennifer Kittoe

really get behind and make meaningful.” The 2013 Connect4 Phoenix winner is U.S.VETS Grand Veterans Village in Phoenix. U.S.VETS is the nation’s largest nonprofit provider of comprehensive services to homeless and at-risk veterans. The need for permanent and transitional housing led to the acquisition of an old motel on Grand Avenue. Renamed Grand Veterans Village, the motel is undergoing renovation and will ultimately provide affordable apartments to 130 veterans. The Phoenix Connect4 committee is renovating eight of the bigger family rooms, and also a meeting room to be used for classes and therapy sessions. Each room/apartment needs new flooring, paint, furniture, fixtures and artwork. “I have the pleasure of working on a committee with very talented people from the architecture and design community,” says Jennifer Kittoe, Phoenix City Center director and an independent representative at Loop Architectural Materials in Phoenix. “We strive to bring awareness of the benefits of IIDA, and put on programs that are educational, entertaining and philanthropic. “IIDA members are all creative and, as we learned with Connect4, very generous. We want to give back, and Connect4 provided that outlet. Nearly 100 volunteers showed up on build day. We had two pages worth of sponsors. The event far exceeded by expectations.” IIDA Southwest is perhaps best known for its Couture Fashion Show The 5th annual Couture event was held March 1, 2012 at the Sheraton Phoenix Downtown Hotel. Twenty-six teams of designers (including design students) were randomly paired with a color forecast theme and an industry manufacturer’s material. The challenge: to create and model a fashion

PHOTO BY CAILEY KLEINER

IIDA Southwest members give back — with creativity and compassion

(ABOVE) A Couture winner for Most Sustainable Design made of printed banner material and recycled sign parts, held together with steel cable through grommets. Entry was by Gretchen Cherrill and Airpark Signs & Graphics. (Below) Meeting room at U.S. VETS Grand Veterans Village in Phoenix after being remodeled though the IIDA Connect4 project.

garment using only those colors/themes and materials. “The Couture Fashion Show and Connect4 charity event will alternate each year,” Kittoe says. “Planning is already underway for the next Couture fashion show, scheduled for spring of 2014. A portion of the proceeds from Couture will be used to fund Connect4 remodeling projects in 2015.” The other City Center Connect4 projects: Tucson, Boys & Girls Clubs Teen Room; Albuquerque, Boys & Girls Clubs Crafts Room; and Las Vegas, Hopelink main office.

IIDA

Q&A

BY PETER MADRID

CASEY POTASH PRESIDENT

IIDA SOUTHWEST

Q: ARE IIDA SOUTHWEST MEMBERS SEEING A TREND IN A CERTAIN TYPE OF COMMERCIAL DESIGN? A: Although this trend has been

happening nationally for quite some time, environmentally friendly design is definitely becoming more prevalent in the Southwest. There are more readily available eco-friendly products and clients are starting to embrace the benefits of designing with the environment in mind. Another trend, due to the economic downturn we have experienced, is that designers are definitely getting more creative on a tight budget. Clients have not necessarily reduced their expectations, and they still want to have the same “wow” factor, but they want that with a more conservative budget.

Q: WHAT CHALLENGE OR CHALLENGES ARE IIDA SOUTHWEST MEMBERS FACING, AND WHAT CHALLENGES DO YOU SEE THEM FACING IN THE FUTURE? A: The biggest challenge the local design

community is currently facing is stress as a result of the economic downturn. There are many designers that are still in search of job opportunities, and those who fortunately have not lost their jobs are suffering through various other effects of downsizing and are typically experiencing larger workloads. There are definitely signs of improvement, and we are a very tight knit group within the Southwest Chapter. We try to help our members in any way we can with networking, continuing education, and professional development opportunities. We also continually advertise job postings, as we hear about them, in our email blasts. I think the biggest challenge our community will have in the future is the loss of talented and experienced designers who have either moved out of state where the economy has improved more quickly or have moved on to new ventures in their life.

40 | July-August 2013

Q: DESCRIBE IIDA

SOUTHWEST ACTIVITIES AND SHARE WHO IS INVOLVED?

A: IIDA Southwest is run by a chapter board comprised of volunteers, and our events are coordinated and planned by another group of volunteers. We have won many international awards for the success of our chapter, and this would not be possible without countless hours of dedication from these volunteers and the generosity of our sponsors. Our chapter includes four City Centers: Phoenix, Tucson, Las Vegas, and Albuquerque. We have major chapter events, including the PRIDE Awards (Professional Recognition of Interior Design Excellence) in the spring, a trade fair/networking event in the fall, as well as rotating winter events, which include Couture (a fashion show where the fashion is derived from commercial building products and materials) and Connect4 (a philanthropic event that happens simultaneously in all four City Centers). Q: THE FUTURE OF A GROUP SUCH AS IIDA RELIES ON THE EDUCATION AND TRAINING OF YOUNG DESIGNERS. HOW DOES THE SOUTHWEST CHAPTER REACH OUT TO STUDENTS? A: The students are the future of our chapter

and industry, and we place a great deal of attention that is specifically targeted to help develop them into the professionals we need to have emerging from our local colleges and universities. We have a VP of student affairs, a director of student affairs, and a committee within the chapter that reaches out to students on a regular basis for design critique sessions. They also plan exciting networking and educational activities tailored to the needs they have. We have special student

pricing for all of our chapter and City Center events, so they have more opportunities to meet with design professionals outside of our student oriented events.

Q: WHY IS IT IMPORTANT FOR A DESIGNER TO BE A MEMBER OF IIDA? A: I’ve found it to be vital to the success of

my career to be a member of a professional organization that fosters networking, educational, and social activities within the community. For me personally, I joined because I wanted to be a part of an organization that not only facilitated growth in my own design career, but also enabled me to be able to give back to the community. I truly believe that “you get what you give” in life. What I have found to be one of the most beneficial parts of my role as the chapter president is that I now have connections around the world in the design industry. I have the resources to be able to easily learn what trends are happening in other parts of the country, and this is invaluable.

Casey Potash is president of the IIDA Southwest Chapter. Prior to moving to the Valley, she received her BS in Interior Design from Indiana University. She is NCIDQ Certified and is LEED APl. She is a sales specialist for KI & PallasTextiles.

2013

ArIzoNA CommErCIAl rEAl EStAtE WomEN

Championing the advancement and success of women in the commercial real estate industry

INSIDE

Cultivating & ConneCting Q&a with Karen halpert MeMBer profiles

p. 44 p. 52 p. 53 PUBLISHED BY

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ARIZONA COMMERCIAL REAL ESTATE WOMEN BY PETER MADRID

CULTIVATING & CONNECTING AZCREW is in a ‘league of its own’ when it comes to forming meaningful professional friendships and associations

44 | July-August 2013

AZCREW

s the business environment in commercial real estate is changing, so is the mission and vision of AZCREW, the Valley group comprised of professional women in the industry. Leadership development, education, networking and business development are but a few of the organization’s building blocks. Building a strong member base, embracing social media and branding are important as well. Ericka LeMaster, senior vice president of Commercial Real Estate Finance at Alliance Bank of Arizona, been an active member for four years and is chair of the Programs Committee. AZCREW provides the platform, she says, “Where I can (with our very talented committee) exercise my passion for selecting educational tropics and arrange the highquality luncheon speakers. “Through being an active participant, I have had the pleasure to provide lending services to some of our members’ customers as well as refer new business to our title and legal membership base,” she adds. “Aside from new business opportunities I have made friendships that will survive my career in commercial real estate finance. AZCREW is driven by passionate professionals and I am proud to be a part of this organization.”

“

AZCREW provides an invaluable resource and platform for not just women in the marketplace, but for the industry as a whole.” - Cathy Teeter Since becoming involved with AZCREW, says Krystal Dill, marketing manager at Lincoln Property Company, she has experienced countless opportunities to grow professionally, make new connections and build great relationships. “As a member of the (national) Crew Network, AZCREW is a wonderful resource for women in commercial real estate that offers access to local and national networks to cover every aspect of a transaction,” Dill says. “The organization encourages leadership and fosters success among its members. This is especially true of our committees where team members work together at a common mission to achieve specific goals.” Upon membership, Dill signed on to the PR/ Outreach Committee and was asked to serve as co-chair with Jackie Orcutt of Cushman & Wakefield. The committee is charged with overseeing community outreach, attracting new members, preparing quarterly newsletters and promoting AZCREW.

“Last year we were asked to plan the inaugural fundraiser event for scholarships to benefit the MRED program at Arizona State University,” Dill says. “We partnered with the AZCREW Special Events Committee to create a festive, elaborate and successful Black and White Affair. The event exceeded all expectations, enhanced brand awareness, built a partnership with ASU and benefitted terrific students.” Programs offered by both the local and national organizations provide excellent education opportunities, says Cathy Teeter, acting market leader for Cushman & Wakefield of Arizona. AZCREW advocates a closing of the industry’s gender gap through quality leadership and respected professionalism. “AZCREW provides an invaluable resource and platform for not just women in the marketplace, but for the industry as a whole,” Teeter says. “This organization improves the commercial real estate field by encouraging diversity and providing career development opportunities for dynamic women. “Personally, I have found the networking system of AZCREW to be very important,” she says. “The monthly luncheons are informative and the subject matter is always timely. The social components, such as the annual charitable golf tournament and mixers, provide wonderful avenues to build relationships. The group encourages positive, professional relationships with all members of the real estate community.” AZCREW is unique in that it brings people together from all sectors of the real estate industry. At any given luncheon, Teeter says, “you can sit at the table with your banker, attorney, broker or property manager. “AZCREW has been very successful over the years, as demonstrated by the impressive number of females serving in leadership roles throughout the Metro Phoenix real estate market,” Teeter adds. Little did she know years ago when Edythe Higgins of Wells Fargo encouraged her to

KrystAl Dill

VAl MArciAno 45

AZCREW

GENDER EQUITY

join did Melinda Hinkson, business development, Sigma Contracting, that she would find AZCREW — and CREW — to be so fulfilling on so many levels. “As a business owner and industry participant, I have benefitted not only from the networking but also the educational opportunities that CREW provides,” Hinkson says. “Even so, I am only in my infancy with the CREW Network, because there is much more opportunity and support through the national network that I have yet to avail myself of. There are annual conventions, leadership meetings, a deal database, professional development training, speaking, writing and leadership opportunities and awards programs, in which I have yet to participate. “All of that provides me with many additional tools and opportunities for both personal and professional growth as I go forward within the CREW organization.” Locally, Hinkson participates on the membership committee helping AZCREW grow its membership. She is also on the Golf Committee, which plans and runs the organization’s annual charity golf tournament, held at Gainey Ranch. “AZCREW not only has provided me with the camaraderie of like-minded ambitious women, but has also afforded Sigma many opportunities to partner with other members on local building projects, and opened doors of opportunities with brokers, developers, and property management teams,” Hinkson says. “AZCREW has been a significant lifeline for both myself and my company throughout these trying economic times. Its support has transcended basic networking, and I knew I’d found a valuable resource when several of us that hiked the Havasupai continue to look forward additional outings, including an upcoming canoe trip. This is the group that will continue to challenge me to better myself and my relationships, whether personal or professional.” In an industry where things are happening rapidly — changing ownerships, competition, social media and technology — no one can afford to sit back and be complacent, says Lisa Bentley, director of marketing, McCarthy Nordburg. “You must know your market inside and out, be sharp and truly connected,” Bentley says. “That means constantly listening, reading and building relationships. The importance of AZCREW to me as a professional woman in commercial real estate is about knowledge, information and support being the crux of why I rejoined after many years. I received information about a couple of the programs and went as a non-member. I found them to be so interesting, as

MELINDA HINKSON 46 | July-August 2013

CATHY TEETER

ERICA LEMASTER

CREW consists of 76 chapters with more than 6,500 members. National stats are telling of the caliber of CREW Network participants:

76%

of members are CEOs, partners or senior managers of their companies

53%

of members have more than 15 years of commercial real estate experience

60%

of members report annual incomes in excess of $100,000

72% of members report having given business referrals to one another within the past 12 months

it relates to our interior architectural design business, either because a broker or client was speaking. “The programs were informative and relative to our local economy and I ran into so many nice folks I had worked with previously, that was my ‘aha’ moment. The plus with AZCREW is that the women not only speak the mission, they live it.” Val Marciano, partner, Jaburg | Wilk, says AZCREW is an organization that “continues to shape my career.” “While my practice of real estate litigation for 30 years has provided its own exposure to fascinating and unforeseen experiences — it is true that life is better than fiction — my membership in AZCREW has brought a new facet to my professional life,” Marciano says. “The splendor of AZCREW is that it unites distinct professions in a symmetry that expands its members’ business while, at the same time, promotes personal growth. The term ‘networking’ has become a mundane term, leading one to glaze over with the thought of perfunctory ‘meet and greet’ sessions that do nothing more than take time from other more interesting prospects. “AZCREW has found a way to allow its members to connect, become associates, and form professional friendships that enrich one’s professional life. It is the formation of those meaningful professional friendships and associations that transcend ordinary networking, leaving AZCREW in a league of its own.”

LISA BENTLEY

AZCREW

Q&A

BY PETER MADRID

KAREN HALPERT AZCREW President

AZCREW IS CELEBRATING 30 YEARS IN 2015. HOW HAS THE LOCAL ORGANIZATION HELPED SHAPE THE LANDSCAPE OF COMMERCIAL REAL ESTATE PROFESSIONALS IN THE VALLEY?

AZCREW facilitates business networking, enabling members to build their network. We create opportunities for our members to work together and offer a way for them to give back to their community. Additionally, we educate women about career opportunities ensuring that commercial real estate remains not only a rewarding career choice but a viable industry for women. AZCREW is one of 76 chapters of the CREW Network. The Arizona chapter was established in 1985 and has a remarkable history of relationship-building and education, as well as an outstanding reputation for the success of its members as integral players in commercial real estate. AZCREW members represent nearly every discipline within commercial real estate including architecture, law, property management, fi nance, construction, brokerage, engineering, title/escrow, asset management and many others.

Q: HAVE YOU SEEN A SIGNIFICANT

SHIFT IN THE BALANCE OF MALE VS. FEMALE LEADERSHIP ROLES IN VALLEY COMMERCIAL REAL ESTATE?

I have seen a number of studies regarding women’s progress toward achieving parity in the corporate world, but not much information exists specifically regarding women in commercial real estate. Women have not made enough headway in commercial real estate even though there are numerous studies reflecting an improved bottom line for companies with gender diversity at the executive level and boardrooms. AZCREW is passionate about the mission of the organization to advance women in commercial real estate. Chairs, boards and committee members are dedicated to furthering the success of the members by training and mentoring the next generation of organizational leaders. These positions require active participation, hours of volunteer time and a commitment to making a difference in the organization and commercial real estate community. 52 | July-August 2013

WHAT CHALLENGE OR CHALLENGES DO YOU SEE AZCREW MEMBERS FACING NOW, IN 5 YEARS, AND IN 10 YEARS?

Women need to help management overcome commonly misperceived notions about the skills and strengths women bring to the table and to fairly compensate women for their contributions. Salaries for women starting in real estate are much more similar to men these days. Therefore, as new generations of women move through the ranks the gap in pay between men and women should decrease. Women who have a mentor are more likely to achieve upward career moves. We need to continue to mentor younger real estate women. To assist this effort AZCREW now offers discounted membership for those under 35. On a broader scale, CREW Network is focused on helping more women transition to the industry’s top leadership positions.

Q: OF CREW’S CORE VALUES — LEADERSHIP, EXCELLENCE, INFLUENCE, COMMUNITY, INTEGRITY AND ADVANCEMENT — WHICH DO YOU FEEL IS MOST CRUCIAL?

AZCREW mEmbERs

A: For AZCREW to be successful as an organization

we need all of these values, but building effective leaders is key to advancing women in the commercial real estate industry. To be an effective leader in real estate as with any industry, you must be able to communicate. Part of this communication involves networking, supporting and reaching out to our partners in the industry. Through participation in AZCREW, members have the opportunity to develop their leadership skills by attending high-level leadership development training provided by CREW Network as well as opportunities to serve on boards both locally and nationally. This participation helps to develop and hone effective leadership skills.

Q: Of the benefits that

membership in aZCreW Offers, WhiCh dO yOu feel is the mOst impOrtant?

The recent downturn in commercial real estate created a new role for women in the industry that AZCREW entitled “women in transition.” It has become abundantly clear to those of us with long histories in organizations such as AZCREW that these groups provide the support, networking and community individuals need when transitioning from one company and job to another. I have worked in the commercial real estate industry for more than 20 years and formed strong and long lasting friendships and value the support, lifeline and opportunity these friendships offer in times of need and change. Change is a constant in today’s economic, business and commercial real estate environment. To quote Winston Churchill: “To improve is to change; to be perfect is to change often.” I participate in AZCREW to mentor and support women and also encourage them to not just accept, but to embrace change as I have and the inherent opportunity it provides.

Karen Halpert is Senior Vice President, Single-Tenant Property Management at Cole Real Estate Investments. She is responsible for maximizing the financial portfolio performance of Cole’s nearly 1,950 single-tenant retail, office and industrial properties throughout the continental U.S. Prior to joining Cole, she held leadership positions in property management, asset management and leasing with Related Urban Management, RREEF Management Company, Cabot Industrial Trust and CBRE. She has been a member of AZCREW for 9 years.

CHRISTINE HUGHES Assistant Vice President Fidelity National Years with Fidelity: 8 years Years in AZCREW: This time 8 years; originally joined in 1999 and was on the board but took time off to complete her undergraduate degree.

prOfessiOnally, What dOes it mean tO yOu tO be a member Of aZCreW?

Being a part of a professional organization supporting each other in the commercial real estate industry.

Q: WhAT ABouT AZCREW do you FINd To BE mosT REWARdINg?

Events and networking with a group of women interested in watching your success grow. our programs committee has done an outstanding job of producing up-to-date, interesting and educational programs for our luncheons. They are a very creative group and deserve to be recognized for their accomplishments.

WAs ThERE AN “AhA momENT” WhEN you REAlIZEd BEINg A mEmBER WAs INvAluABlE?

It is not just one moment — it is a collection of moments. I could say when I served as the 2012 president; leading the organization, helping them grow by creating new events to bring the members together under different scenarios as everyone has diverse interests. These included the New member Event, Team AZCREW and The Black & White Affair. Jackie orcutt ran with my idea and was successful in raising money for the CREW Foundation and scholarship funds for mREd at the Black & White Affair. Then there are quiet ones that step up, volunteer and help out where ever needed. val marciano has done this on a regular basis on the board, the golf tournament, volunteering members of her committee to help on other events. I am thankful I have been able to be part of this dynamic group.

AZCREW: MEMBER PROFILES JACKIE ORCUTT Associate Director

VICKI WILLIAMS

Cushman & Wakefield of Arizona

Senior Vice President, Phoenix Team Manager, CRE Alliance Bank of Arizona

Years at C&W: 2; previously with CBRE for 4 1/2 years Years in AZCREW: 3

Years at Alliance: 9 Years in AZCREW: 9

PROFESSIONALLY, WHAT DOES IT MEAN TO YOU TO BE A MEMBER OF AZCREW?

Commercial real estate is a wonderful field in which to work, but it is no secret that historically there have been far fewer women in the industry than men. My membership has introduced me to so many inspiring people — men and women alike — who have professional goals similar to my own. What I love most about being an active member is the ability to collaborate with accomplished real estate professionals, learn from some of the best women in the industry, and participate in an outstanding national organization dedicated to promoting education and civic service.

WHAT ABOUT AZCREW DO YOU FIND TO BE MOST REWARDING?

I start every day with a list of items that I know I need to accomplish in order to meet the promises I have made to clients and colleagues. Unfortunately, business development always seems to take a back seat to deals in progress, or crucial client meetings. However, what I love about being a member of AZCREW is that you can count on networking and developing your business relationships by simply dedicating an hour or two of your week to attending the luncheons, special events or committee meetings. The interaction with members always leads to a deeper relationship with industry leaders which in turn fosters business development.

Q: WAS THERE AN “AHA MOMENT” WHEN YOU

REALIZED BEING A MEMBER WAS INVALUABLE?

A: I remember attending my first committee meeting 3 years

ago. I sat at a small conference table surrounded by incredible members who were highly recognized in the industry: Mindy Korth (CBRE), Vicki Williams and Ericka LeMaster (Alliance) to name a few. As I listened to them brainstorm about the hot topics in commercial real estate I realized I had so much more to learn about my own profession. Instantly I was excited to be actively involved in planning programs that would provide educational opportunities to our members and local commercial real estate professionals. 54 | July-August 2013

PROFESSIONALLY, WHAT DOES IT MEAN TO YOU TO BE A MEMBER OF AZCREW?

I believe that AZCREW is invaluable in enabling real estate professionals to expand their network, listen to top speakers on timely topics, and support the mission of promoting the advancement of women in the commercial real estate industry. My personal involvement — along with the involvement of one of my colleagues — also affords the bank significant visibility within the real estate community. My bank’s annual sponsorship also shows our support for the organization and for our mission.

WHAT ABOUT AZCREW DO YOU FIND TO BE MOST REWARDING?

As I became more actively involved, the rewards increased. I had always enjoyed the monthly luncheon programs and decided to get involved by joining the programs committee. I later became committee chair committee and a board member. Though I’m no longer committee chair, I remain involved and take pride in the fact that the excellent quality of our luncheon programs. In addition, my current role as President Elect has introduced me to the national organization, CREW Network, and even more great CRE professionals across the country.

Q: WAS THERE AN “AHA MOMENT” WHEN YOU REALIZED BEING A MEMBER WAS INVALUABLE?

I would say my first ‘aha moment’ goes back to my initial involvement with the programs committee where I felt I could make a positive impact. In that group, I saw firsthand that our members have great contacts within the real estate community and are well informed on a variety of real estate related topics.

LindSEy CARLSon Associate Vice President office Properties Solutions Colliers international years with Colliers: 10 years in AZCREW: 7

Senior investment Advisor Sperry Van ness years with SVn: 8 years in AZCREW: 15; Served on the Board of directors for 2 years

A: I am surrounded by an

The purpose of the membership is to promote professionalism and mentoring amongst women in the commercial real estate community. I enjoy the camaraderie of professional women, mentoring of new members, and the opportunity to grow as a professional in commercial real estate.

Professionally, what does it mean to you to be a member of aZCrew? incredible group of women with knowledge and expertise in a variety of aspects related to real estate. Involvement in AZCREW has allowed me to learn from my peers and become a well-rounded broker who provides a high level of service to meet and exceed my clients’ expectations. It has given me great perspective and insight into what is happening in the commercial real estate market. I have such confidence in referring any of my fellow AZCREW members to my clients, knowing they will take great care of them.

Q: WhAt About AZCREW do you fInd to bE most REWARdIng?

A: I’d say the networking with other successful women for

whom I have the greatest respect. The friendships that have developed while serving on various committees and the board have been invaluable in providing a strong sense of community while working in a mostly male-dominated profession. The support we provide to each other, not only professionally but personally, is remarkable. These are amazing women with great stories, and many are role models and mentors to me. I aspire to have the same impact they have had on our community. Through AZCREW’s community service, many of us give time and resources to help women-focused groups, such as fresh start, umom and susan g. Komen, which has been truly inspiring.

Q: WAs thERE An “AhA momEnt” WhEn you

REAlIZEd bEIng A mEmbER WAs InvAluAblE?

Judy JonES

several years ago, we hosted our first CREW Careers event to mentor young women who were interested in a commercial real estate career. This program gave them hands-on experience and exposure to a wide range of real estate careers, while demonstrating how rewarding and fun it could be. seeing the excitement on their faces while surrounded by a group of women who they could look up to and respect was extremely satisfying. I felt we truly made a difference in their lives and, hopefully, encouraged more women to join our industry.

Professionally, what does it mean to you to be a member of aZCrew?

WhAt About AZCREW do you fInd to bE most REWARdIng?

meeting other professional women in the industry and having the ability to interface and learn from them while working collaboratively on meaningful business endeavors.

Q: WAs thERE An “AhA momEnt” WhEn you REAlIZEd bEIng A mEmbER WAs InvAluAblE?

The opportunity to work on a transaction with an attorney I had known through the organization, but had not yet had to opportunity to work with was memorable. I appreciated her experience, professionalism and sincere cooperation throughout the duration of the escrow.

Building Lasting Relationships

2013 PUBLISHED BY

INSIDE

Putting clients and the community first p. 60 Family tree firmly planted in Arizona p. 64 Projects: Ryan's grand footprints p. 66 Q&A: John Strittmatter p. 70

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58 | July-August 2013

RYAN COMPANIES BY PETER MADRID

‘BUILDING LASTING RELATIONSHIPS’ For almost 20 years in Arizona, Ryan Companies has put its clients and the community first

or 75 years, Ryan Companies U.S., Inc. has been “building lasting relationships,” as the company motto proclaims. The Phoenix office, a year shy of celebrating two decades in Arizona, has made its own footprint on the state’s development landscape, building its own lasting relationships. Ryan opened shop in Phoenix in 1994 to coordinate the construction of Target stores throughout the state. It is now a diverse company with approximately 80 employees in Arizona and services that include construction, development and property management. The Phoenix office is led by President/Southwest John Strittmatter, and Vice President of Development Molly Ryan Carson, whose great-grandfather, James Henry Ryan, founded the company in 1938 in Minneapolis. 60 | July-August 2013

“Providing great customer service to our clients is the key to Ryan Companies,” says Todd Holzer, a Ryan vice president. “Everyone in the company, no matter what level you might be, lives by the company motto and puts a priority on maintaining relationships. By being a fully integrated company that can develop, build and manage commercial real estate for both ourselves and our clients, we have the flexibility and expertise to touch real estate in many ways. “We also give back to the community in many ways,” Holzer adds. “I have made it a core principal in my work at Ryan and in my personal life to commit my time and money to charitable and trade organizations.” Ryan Companies has completed more than 18 MSF of development and construction projects over the past 19 years for customers such as

Del Webb, KayBee Toys, NCS, Target, Honeywell, DMB, Dial Corp., Motorola, Edwards Jones, Maricopa County, the General Services Administration/FBI, Northern Arizona University, Avnet and UniSource. “We have been doing business with Ryan Companies for about 10 years now and the relationship we have with them is exceptional,” says Robert Gracz, Vice President of Corporate Real Estate for Avnet. “John Strittmatter is one of the most professional men of integrity I know in our industry. Most impressive about his team is how they exemplify John himself, everyone in Ryan I meet. “They truly live and work by their tag line of building relationships,” Gracz adds. “It’s not about now, but more about the long-term relationship on how they operate. I can tell you that John has stood by every commitment and then some he or his team has ever committed to me,

Ryan Companies and I assure they were some difficult ones. Yet he stood there honorably honoring his commitments. There is no better way to build relationships than that ... people you can trust.” The Phoenix office also supports professional and industry organizations such as Valley Partnership, Arizona Builders’ Alliance, NAIOP, CoreNet, ULI and BOMA. Charitable work includes supporting local nonprofits such as the Arizona Science Center, Childhelp, Brophy College Prep, St. Francis Prep, Junior Achievement of Arizona, Big Brothers & Big Sisters of Central Arizona, the Phoenix Symphony and Valley of the Sun United Way.

ConstruCtion While Ryan is unique in the diversity of services it provides, its construction group provides services on a diverse range of product types as well. The group can be characterized by versatility, flexibility and high performance. Ryan’s construction group provides preconstruction and construction services on product types including office, industrial, tenant improvements, mission critical, education, healthcare, hospitality, recreation/sports facilities and even roads/infrastructure. “We have our core business sectors, but based on relationships, our clients take us into new areas,” says Steve Jordan, Director of Construction Services. “We have a versatile group of construction professionals with well-rounded talent to assist with design and to build fantastic projects. We enjoy having involvement from the early stages of the projects, to provide

value and expertise through the process to achieve our clients’ objectives. “Our construction professionals look forward to the challenges and diversity that different product types can bring,” Jordan adds. “Those challenges are multifaceted — whether it’s the complex engineering and detailed nature of a data center or the weather variations that can impact a tight schedule at NAU, our team always rises to the occasion to successful completion for our clients.” Building lasting relationships also extends to the subcontractors with whom Ryan works. Otis Elevator Co. has been doing business with Ryan Companies in Arizona since it first entered the market. More notably, Otis Elevator and Ryan Companies together built the Phelps Dodge Tower (One North Central) and the UniSource Headquarters in Tucson. “Ryan Companies is one of the most professional and long standing developers/ property managers in this market,” says Brian Skoczylas, Territory Manager for Otis. “We share that kindred attitude and look forward to many more years of sharing the role of building Arizona.”

ProPerty management

While Ryan’s more visible reputation centers around development/ construction, its Real Estate Management group has quietly developed a solid niche in the marketplace. More than 83% of Ryan’s REM business is non-Ryan owned that it manages for third party clients such as Mitsubishi Estate of New York, ASB Capital Management, Artis REIT, Fort Properties, UniSource and Behringer-Harvard. “Our client relationships are long term, many in excess of 10 to 15 years, which have consistently resulted in expanded opportunities across the country for all of the Ryan disciplines,” says Anna Riley, Regional Director of Management. “Our approach to real (Above from left to right) Steve Jordan, director of estate management construction services; Chuck Carefoot, VP of construction; is organizationally Molly Ryan Carson, VP of development; John Strittmatter, and culturally president Southwest Division; Mary McGone, executive comprehensive. Our director leasing and sales; Todd Holzer, VP of development. managers are influenced (left) The Musical Instrument Museum

by our internal areas of expertise through their involvement in development, design and construction processes, thereby allowing them a broader perspective as REM takes on the responsibilities of operations, lease up and financial management. “We oversee the typical industry day-to-day operations. However, our expanded approach is to assess and identify opportunities and to drive the enhancement of asset value. Ryan REM has developed effective strategies for providing asset level intelligence at the pre-acquisition and through the ownership phases with operational due-diligence inspections, transition planning, repositioning, rebranding and lease up coordination. Our management teams align closely with our clients in understanding their investment objectives and we truly partner in achieving them.” Ryan is culturally committed to building lasting relationships — it isn’t just a tagline, Riley says. “It is demonstrated in our focus on the development of our people, our overt outreach into our communities and our loyalty to our clients, brokers and service providers,” she says. “When I joined Ryan more than 7 years ago, my role was to run a management business. As I began to experience the Ryan culture, my increased sensitivity to the relationship role and its responsibilities have shaped me both personally and professionally. “I value the opportunities that I have to mentor my group, to effect results for our clients and to conduct business in a fashion that is responsible to our communities. Ryan’s culture has been a great fit.” The same holds true for the property management subcontractors. “Our relationship with Ryan Companies is built on mutual respect with a common goal,” says Mischelle Arreca, Director of Business Development for Caretaker Landscape. “We share in our commitment to create sustainable environments that are both cost effective and aesthetically pleasing. “We partner to insure they have efficient outdoor water use, healthy and vibrant plants, properly maintained plant material and a budget-conscious future landscape plan. We value our relationship with Ryan Companies because they value their partners.” 61

62 | July-August 2013

Our Team Congratulates The Ryan Companies on 75 Years of Continued Success Experience means that we can assess a project quickly and respond with the best pricing and fastest quality production in the Valley. It brings peace of mind that your project will be built not just right, but better.

Building in the Valley with the Vision of the Best Contractors in Phoenix

602-997-0937

â&#x20AC;˘

suntecconcrete.com

RYAN COMPANIES

Q&A

BY PETER MADRID PHOTOGRAPHY BY LILLIAN REID

DEEP ROOTS WITH MOLLY RYAN CARSON AS VP OF DEVELOPMENT, THE FAMILY TREE IS FIRMLY PLANTED IN ARIZONA

Q: DO YOU FEEL A BIT OF PRESSURE CARRYING ON THE FAMILY NAME?

A: The last name comes with an added sense of pressure, but a great kind of pressure. The founders of this company created a culture of doing the right thing and that is what we all strive to do each and every day.

YOU ARE VERY VISIBLE IN VALLEY COMMERCIAL REAL ESTATE CIRCLES, INCLUDING NETWORKING EVENTS AND PHILANTHROPIC PROJECTS. I ASSUME THAT’S ALSO A GREAT SENSE OF PRIDE?

A: Absolutely. I find it to be a privilege as well as a responsibility to become involved in your greater community. We are very fortunate to live in a world that allows us many freedoms and opportunities. With those benefits comes a responsibility to make this world a better place for all.

Q: HOW DO YOU SUCCESSFULLY BALANCE WORK AND FAMILY?

A: I am laughing at the question. Balance is the key word. I asked my dad this very same question about eight years ago, after a particularly rough day — we all have them — where you feel like you’ve failed in every aspect. He smiled and said, “It’s balancing marbles on a plate. There will certainly be things that move around, just make sure the big marbles stay on. And ask for help when you need it.”

Q: WHAT ARE YOUR RECOLLECTIONS OF GROWING UP IN THE RYAN FAMILY?

Molly Ryan Carson looks as comfortable professionally dressed, networking with clients, as she does donning a T-shirt, baseball cap and sweat pants volunteering her time for a community project. She is active in several industry groups, including Valley Partnership, ULI and ICSC; sits on various boards, and is adept with a shovel or paint brush. With more than a decade of experience as a developer and property manager, Carson (her married name) is the face in the Valley of Ryan Companies U.S., a firm her great-grandfather, James Henry Ryan, founded in 1938 in Minneapolis. As Vice President of Development, she is responsible for site selection and acquisition, municipal use permits and approvals, design and construction coordination, financial packaging and lease or sale negotiation. As Ryan Companies celebrates its 75th anniversary — almost two decades in Arizona — Molly Ryan Carson shared her thoughts with AZRE magazine.

AS A PART OF THE RYAN NAMESAKE, HOW IMPORTANT IS THAT SENSE OF FAMILY PRIDE?

A: I am extremely proud to be a Ryan, but equally proud to be a part of the Ryan Companies family. Both allow and expect a great deal from you, but the reward of being part of something much bigger than yourself is far worth it. 64 | July-August 2013

A: I feel very blessed growing up with the family I have. Our home was one of support, love, faith, laughter, fun and hard work. We spent a great deal of time together as a family — lots of family nights, family trips, etc. We ate dinner together nearly every night (only excuse to miss were sport commitments), which is a rule in our family now. I am the oldest of eight, so I don’t have many quiet memories. My parents worked to instill a strong set of values within us: love each other, love God and always do the right thing. Share your blessings, ask for help when you need it, work hard, play hard. Your family will always be there for you. We have a great loving support system as a result. I can only hope my children feel the same when they are asked this question someday.

Q: HOW LONG HAS THE VALLEY BEEN YOUR HOME?

A: Me, my husband Mike, and our three kids, Trinity (9), Marley (7) and Seamus (4), have called the Valley our home for three years. Moving from Minneapolis, Phoenix was quite a change, with almost the exact opposite climate. We have found many wonderful people in this community. From a business standpoint, opportunities seem endless, if you are willing to work hard for them. I have met a great deal of smart, talented individuals within the industry who want to see Arizona grow and thrive as much as I do.

RYAN COMPANIES: PROJECTS

W.L. GORE PHASE I

RYAN'S RESPONSIBILITY: Construction Manager at Risk ARCHITECT: Reece Angell Rowe Architects LOCATION: Phoenix SIZE: Entire campus, 600,000 SF (Phase I, 230,000 SF; 420-stall parking ramp) COMPLETED: November 2010 (Now constructing Phase II, 132,000 SF) W.L. Gore is a family-owned company that develops fluorocarbon fibers and is best known for its GORE-TEX product. It expanded its fibers’ uses to medical, industrial and electronic products. Ryan constructed the first phase of W.L. Gore’s Pinnacle Peak campus in the Sonoran Foothills north of Phoenix. Each building is a 115,000 SF biomedical manufacturing facility that includes 30,000 SF of class 10,000 clean room space, sterilization laboratories and research and development laboratories. A unique landscape design incorporates Gabion walls, desert walking paths, native plants and materials, sport courts and exterior meeting spaces. The entire campus is constructed of low maintenance, sustainable materials focusing on energy conservation. Some of the other sustainable features include solar technology, reclaimed-water irrigation and a highly energy-efficient mechanical system.

3900 CAMELBACK CENTER

RYAN'S RESPONSIBILITY: Development/Design-Build Construction/Real Estate Management/Capital Markets/ Legal and Environmental Services ARCHITECT: PH Architecture LOCATION: Phoenix SIZE: 177,000 SF COMPLETED: December 2009 Ryan moved its Western Region HQ to this 3-story, Class A office building that set the standard for “green” space in Phoenix. Similar to Ryan constructed and developed 3131 and 3133 Camelback office buildings, this design featured large stair-step terraced balconies and tinted glass exterior. The development team achieved LEED Gold certification. Some of LEED design features included xeriscape landscaping, a stormwater management program, water-efficient fixtures and parking for fuel-efficient vehicles. Natural finishes, such as wood and stone, were used throughout the space as well as low-emitting paints and sealers. When possible, materials were made from recycled content and procured regionally.

MUSICAL INSTRUMENT MUSEUM

RYAN'S RESPONSIBILITY: General Contractor ARCHITECT: RSP Architects LOCATION: Phoenix SIZE: 191,000 SF COMPLETED: December 2009 Ryan built what has been called “a tribute to the music-making ingenuity of man.” MIM selected Ryan for its strong presence in the Southwest and relationship with the City of Phoenix. Timely entitlements and permitting were essential to keeping on schedule and budget. Ryan also has a successful working relationship with RSP and foundation chair, Bob Ulrich, former CEO of Target Corporation. Sustainable materials, such as low emission glass and native exterior stone not only contribute to energy efficiency, but give the museum a strong presence. The interior has stringent humidity and atmospheric requirements and controls to preserve the integrity of the musical instruments. An intricate electrical system accommodates sophisticated wireless “hot spots” around MIM which provide loops of streamed music. Guests are immersed in music as they walk throughout the museum while LCD displays show videos of instruments being played.

66 | July-August 2013

PROJECTS

W.A. FRANKE COLLEGE OF BUSINESS AT NORTHERN ARIZONA UNIVERSITY

RYAN'S RESPONSIBILITY: Construction Management At Risk/ Preconstruction Services/Construction Services ARCHITECT: Carter-Burgess in association with BOORA Architecture LOCATION: Flagstaff SIZE: 111,000 SF COMPLETED: December 2005 The W.A. Franke College of Business is a 5-story building at Northern Arizona University that includes state-of-art computer labs, classrooms, seminar and conference rooms, a student common area, cafe, offices, an auditorium and business development areas. Ryan was selected to provide preconstruction and construction services based on its experience in the education field, proven fast-track delivery and experience working in severe weather conditions. The Ryan team designed and constructed a LEED-certified Gold building, providing NAU a sustainable, energy-efficient building with low maintenance costs, as well as a building that serves as a landmark for the South Campus. Aesthetically, it reflects the technical, professional environment of the W.A. Franke College of Business. The interior design promotes and fosters student and faculty interaction and communication.

ONE NORTH CENTRAL

RYAN'S RESPONSIBILITY: Development/Architecture & Engineering/Construction/Real Estate Management/Capital Markets/Tenant Improvement/Legal and Environmental ARCHITECT: SmithGroup LOCATION: Phoenix SIZE: 460,000 SF COMPLETED: November 2001 Ryan built and constructed One North Central, previously know as the Phelps Dodge Tower. The 20-story building, located on a city-owned site in the heart of Downtown Phoenix, offers large floor plates (up to 30,900 SF) with minimal interior columns for greater interior design flexibility. The above and below grade 8-story parking garage can accommodate up to 1,000 cars. The exterior base of the building is Arizona sandstone and granite. The upper floors are sheathed in copper-tinted glass curtain wall.

AVNET, INC.

RYAN'S RESPONSIBILITY: Development/Architecture & Engineering/Construction/ Real Estate Management/Capital Markets/Tenant Improvement/Legal and Environmental Services ARCHITECT: Will-Hayes Architects LOCATION: Tempe SIZE: 132,000 SF COMPLETED: March 2000 Ryan built Avnet Computer Marketing Groupâ&#x20AC;&#x2122;s new corporate headquarters, a 2-story office building, in 2000. A repeat client, Avnet's new building includes a full-service kitchen and dining area, training facilities, corporate offices, data center and parking for approximately 668 vehicles. The Phase I building included a glass window wall system with tilt panels and masonry. Glazing elements feature a rich blue, high performance glass set in an anodized aluminum framing system. The main entry and lakeshore executive corner features a full-height glass curtain wall system. It was Ryanâ&#x20AC;&#x2122;s third of eight corporate headquarters projects in the ASU Research Park.

RYAN COMPANIES: PROJECTS

FBI PHOENIX DIVISION

RYAN'S RESPONSIBILITY: Design-Build/Construction/ Development/Real Estate Management ARCHITECT: AECOM LOCATION: Phoenix SIZE: 225,000 SF COMPLETED: January 2012 Ryan developed and constructed a new, build-to-suit, Class A office building for the GSA. The GSA’s anchor tenant is the Federal Bureau of Investigation (FBI), which consolidated four of its Phoenix locations into the new building. The GSA administered the 20-year new lease, and named the building a “Design Excellence” project, which ensures excellence in public architecture, engineering and construction. An important component of the GSA’s mission is the availability of efficient and cost-effective facilities with up-to-date infrastructure to support the growing needs of law enforcement and security agencies such as the FBI. The facility meets the prescriptive criteria designated by the Interagency Security Committee (ISC), and is constructed to achieve LEED Silver certification. In addition to energy- and water-efficient systems and fixtures, Ryan utilized Energy Savings Performance utility agreements to achieve, maintain, and/or exceed the ENERGY STAR benchmark. Ryan provides a full-time assistant property manager and building engineer housed in the project to service the GSA and FBI.

68 | July-August 2013

MARICOPA COUNTY COURT TOWER

RYAN'S RESPONSIBILITY: Construction Manager at Risk ARCHITECT: GouldEvans/AECOM LOCATION: Phoenix SIZE: 695,000 SF COMPLETED: February 2012 Ryan provided CMAR services for the new courthouse in Downtown Phoenix. Ryan, in association with Gilbane Building Company, led the construction effort, working with a large number of stakeholders and design professionals. Many members of the design team were located throughout the country; the project team established a web-based project management system to distribute information and plans in a timely manner. Protocols were established to disseminate the information to the team in the most appropriate manner and to ensure timely estimating, value engineering suggestions and phased bid packages for this fast-track project. The building is highly sustainable and both energy- and water-efficient. While a newly constructed building, its traditional design, columns and materials will blend with the historic buildings that exist on the Maricopa County campus. The finished courthouse houses approximately 1,000 in the jury assemble area and offers 22 courtrooms in varying sizes, with the ability to expand to 32 in the future. The project is seeking LEED Silver certification.

PROJECTS UNS ENERGY CORPORATION

RYAN'S RESPONSIBILITY: Development/Design-Build Construction/Capital Markets ARCHITECT: DAVIS/Swaim Associates, Ltd. LOCATION: Tucson SIZE: 250,000 SF COMPLETED: December 2011 Working closely with DAVIS/Swaim Associates, Ltd., Ryan led the development, design and construction of the corporate headquarters for UniSource Energy Corporation in Downtown Tucson. Ryan was selected for its ability to provide quality and reliability at a fair price. The 9-story building provides improved working space for more than 425 employees of Tucson Electric Power (TEP), the companyâ&#x20AC;&#x2122;s principal subsidiary. It also includes nearly 11,000 SF of ground-floor retail space as well as a conference center, meeting rooms and 500 parking spaces. The building's rectangular footprint will minimize exposure to direct sunlight, and an integrated shade structure will shield its western face. The exterior is clad with high-efficiency glass, while the interior features energy-saving lights, HVAC units and other mechanical systems. A rainwater harvesting system meets all landscaping needs and the building received LEED Gold certification.

RYAN COMPANIES BY PETER MADRID PHOTOGRAPHY BY LILLIAN REID

JOHN STRITTMATTER

PRESIDENT / SOUTHWEST DIVISION

RYAN COMPANIES U.S. HAS MADE ITS MARK IN THE U.S. FOR 75 YEARS, 20 IN ARIZONA. THE COMPANY SLOGAN — “BUILDING LASTING RELATIONSHIPS” — HOW DOES THAT MANIFEST ITSELF WITHIN THE ORGANIZATION?

A: We are and continue to be a family-owned and operated business. Where many family-owned and operated businesses never make it as far as the third generation, we are currently integrating the fourth generation of family into the company. When I came to Phoenix in 1993, 2,000 miles away from our home base, I assumed I would have to introduce Ryan to brokerage firms, banks and potential clients in an environment where we were an unknown. I was pleasantly surprised that these groups were not only familiar with our company, but some had done business with us across the country, making my introduction job much easier than anticipated. I realized that our relationships were national, and our focus on building these relationships was critical to our success. Many of Ryan’s business relationships have played a key role in our various expansions. When you take a look at the millions of square feet Ryan Companies has developed over the past 20 years in Phoenix, you can tie each project to a long term relationship with a customer, landowner, architect or broker, proving that most of our business is still today relationship-based.

HOW WAS RYAN COMPANIES AFFECTED BY THE GREAT RECESSION, AND WHAT STEPS DID IT TAKE TO WEATHER THE DOWNTURN?

A: Like every other developer, we were impacted dramatically. Although, I truly believe that our vertically integrated structure (construction, development and property management) allowed us to weather the storm. Our national mix of 50% pure construction and 50% development-driven construction kept us profitable and operational during the downturn because, for example, when development wanes, we can focus on construction.

70 | July-August 2013

Q&A

AS PRESIDENT OF THE PHOENIX OFFICE, WHAT PROJECT (OR PROJECTS) ARE YOU MOST PROUD OF?

A: Th at’s like picking your favorite kid! Of the 20 MSF of real estate we have worked on in Phoenix, I’ve got to say the Phelps Dodge Tower is one of my favorites. Very rarely do you get to build a downtown office tower, especially one that shapes the skyline. It was defi nitely the most significant project we had worked on at that time. Recently, we had the opportunity to work on the FBI headquarters. It is really fun to develop, design and build unique buildings for unique customers. In reality, we all came away at the end with a deep appreciation of what the FBI professionals do on a daily basis to keep us safe and a deeper appreciation of the sacrifices they make daily. To be a part of that effort by delivering a building that meets their specific criteria was especially rewarding.

DO YOU SEE PROMISING SIGNS IN ARIZONA’S COMMERCIAL REAL ESTATE INDUSTRY IN THE NEXT 5, 10 OR EVEN 20 YEARS?

A: Definitely in the next 5 years. We already see an increase in build-to-suit activity, which is the first wave of new business that generally appears from an economic downturn. The industrial development market has come back quicker than we anticipated, but I think it will be a couple more years for the office development market to reappear. Job growth is a key indicator for most new real estate development and Arizona is showing signs of improvement.

YOU OPENED THE OFFICE IN 1983. WHAT MADE YOU WANT TO COME TO THE DESERT?

A: It was an incredible opportunity that was presented to me. I knew I had Ryan’s strong foundation of business ethics, relationships, proven success and financial support to assist me. While I was a long way from the home office, I had the resources needed to be successful as this office was an extension of an existing successful company and the real estate and construction industry in Arizona overall was very welcoming. We have some of the best real estate development, construction and property management people in the business in Arizona. I am privileged to work with them and owe all of our success in the Valley to them as they continue to build lasting business relationships. As President of Ryan’s Southwest Division, John Strittmatter has direct responsibility for the overall leadership and direction of all Ryan activities consistent with the company objective of building lasting relationships. He is involved in many aspects of the development process from site selection to financing packages.

InsIde A leAder by 75 exAmple: cArol mcmullen

2013 PUBLISHED BY

steppIng down After 30 yeArs

AbA member 76 projects AbA member 84 profIles q&A: executIve 86 mInter dIrector mArk

ArizonA Builders' AlliAnce By Mark Minter photography By LiLLian reid

A LeAder by exAmpLe AbA’s Carol mcmullen retiring After 30 years, Leaving a Legacy of mentoring and education

arol McMullen became part of the construction industry in February 1983 when she was hired by the Building Chapter of AGC, the predecessor of the Arizona Builders’ Alliance. She has announced her retirement from ABA at year's end. The association was looking for a new staff person to assist with existing services and to expand the area of management education in the early 1980’s. Management education was a new concept 30 years ago for a trade association that had previously focused on collective bargaining, safety and lobbying. Carol’s background in education appeared to be a great fit. Today, Carol’s imprint is on every aspect of the ABA’s education efforts. There are hundreds of employees

nurtured and improved the program. Enrollment demand is so great that companies are limited to one employee per year. Both the AGC and the Associated Builders and Contractors have recognized LDF as the country’s outstanding management education program. Wink Ames (Minard Ames INSURICA) has been involved with ABA for more than 30 years. “The LDF program is the best management training program that the ABA has,” he says. “We have been doing this for 20 years and, as a result of Carol’s efforts and leadership, many of today's construction industry leaders came though her program.” Carol’s personal touch has been evident in other aspects of the ABA’s programs as well. Conventions used to be a rather dull series of reports and updates on internal aspects of the association. Carol and the ABA’s convention committee converted the convention to an educational event with outstanding speakers, spouse involvement and interactive challenges for participants. As ABA Executive Director, I have witnessed Carol's impact. It goes beyond just the quality of the programs. Carol has brought a personal touch to everything she does and all the people with whom she deals. She genuinely enjoys the folks in ABA and they can tell that she does. Our membership is going to miss her, but not nearly as much as I will. Barry Chasse of Chasse Building Team has known Carol since the early 1990’s. “I don’t know how or why, but because she is so passionate about the ABA, Carol convinced me to dress as Marilyn Monroe and sing ‘Happy Birthday Mr. President’ to incoming president Eric Hedlund.”

“What will we do without her?” whose careers have been advanced and companies served by the educational programs that Carol has fostered. The most notable of these efforts has been the Leadership Development Forum (LDF) begun more than 20 years ago. The LDF was created to help operations and technical personnel advance into management and executive positions. The construction industry attracts and produces technically proficient people. Producing great managers is a challenge. Contractors were recognizing that the old mentor-protégé approach to advancing careers wouldn’t produce enough new leaders. LDF was created to produce a stream of new leaders proficient in the areas of financial management, strategic planning, understanding human resources, business development and public speaking. Over the years Carol has developed,

The search continues for photographs of that event. “Many people in the construction industry, me included, can attribute our personal success to programs we’ve taken at ABA,” says Randy Eskelson of Schuff Steel Southwest. “Those programs were developed, refined and promoted by Carol. I don’t remember a time she hasn’t been part of our industry. What will we do without her?” Carol has never been content to rest on previous successes. In the past two years she helped the industry implement a test preparation program for individuals seeking to pass the Certified Professional Constructor exam given by the American Institute of Constructors (AIC). As a result of those efforts Arizona had more than 100 individuals taking and passing that exam; more than any other state in the country. She was awarded the inaugural Stephen B. Byrne Industry Achievement Award recognizing her contributions to that success. Carol’s retirement won’t be all leisure and relaxation. There are lots of friends, family, church and community events that will need her attention. She and her husband, Bob, have two grown daughters and six grandchildren living close by. The six grand kids, ages 2-8, are all looking forward to seeing more of grandma. 75

ABA

ABA MEMBER

PRIZED PROJECTS 1. ALOFT TUCSON UNIVERSITY Developer: Starwood Hotels & Resorts Worldwide General Contractor: Linthicum Corporation Architect: Jonathan Nehmer + Associates Location: 1900 E. Speedway Blvd., Tucson Size: 118,500 SF Start/finish: 2Q 2012/1Q 2013 Subcontractors: Atwell Salvage & Demolition, Building Solutions, Carlson Glass, Charles Court Construction, Comfort Systems USA Southwest, Complete Door Systems, Delta Diversified, Flooring Systems of Arizona, Madison Industries, Mirage Plastering, MKB Construction, Ranbro Steel Works, Spray Systems of Arizona, Stonart, Western Millwork 2. ASU MCCORD HALL AT THE W. P. CAREY SCHOOL OF BUSINESS Owner: Arizona Board of Regents General Contractor: DPR Construction Architect: Kohn Pedersen Fox Associates | RSP Architects Location: Lemon St. and Palm Walk, Tempe Size: 129,000 SF Value: $41M Start/finish: 4Q 2011/3Q 2013 Subcontractors: Dickens, North Star Earthwork, Ace Asphalt, Suntec Masonry, Rhino Masonry, BelAire, Kearney, Walters & Wolf

76 | July-August 2013

3. ASU POLYTECHNIC SUN DEVIL FITNESS COMPLEX Developer: ASU General Contractor: Gilbane Building Company Architect: Architekton and 360 Architects Location: 7332 E. Sundevil Mall, Mesa Size: 61,495 SF Value: $19.2M Start/finish: 4Q 2011/1Q 2013 Subcontractors: BCS Demolition, Crush Construction, Blount Contracting, Code One, Suntec, Brothers Masonry, Encore Steel, Kovach, Romanoski Glass, Progressive Roofing, CDS Framing/Drywall/Paint, Spectra Flooring, Stout Hardwood, Robert Cohen, Barrett Homes, ISEC, Shasta, ThyssenKrupp, Mills Trentor, TD Industries, JFK Electrical, Firetrol, TPI A/V, SiteWorks, General Acrylics 4. BANNER ESTRELLA MEDICAL CENTER EXPANSION AND RENOVATION Developer: Banner Health General Contractor: McCarthy Building Companies Architect: SmithGroupJJR Location: 9201 W. Thomas, Phoenix Size: 279,000 SF Value: $120M Start/finish: 3Q 2012/2Q 2015 Subcontractors: University Mechanical, Wilson Electric, E&K of Phoenix, KT Fabrication, Able Steel

5. BELL LEXUS NORTH General Contractor: Johnson Carlier Architect: John Mahoney Architect Location: Scottsdale Rd. / Mayo Blvd. Size: 102,895 SF Value: $12M Start/finish: 1Q 2013/3Q 2013 Subcontractors: Associated Fence, Bottas Concrete, Brothers Masonry, Gen3, Hawkeye Electric, Johnson Statewide, Kelley Bros, Mesa Insulation, Norcon, Olympic West Fire, Saguaro Steel, Spectrum Mechanical, Suntec Concrete, TP Acoustics, Young Brothers 6. BENENSON BROADWAY RETAIL REDEVELOPMENT Developer: Benenson Capital Partners General Contractor: W.E. Oâ&#x20AC;&#x2122;Neil Construction Architect: Herschman Architects Broker: CBRE Location: NEC Broadway & Craycroft, Tucson Size: 87,000 SF renovation; 14,500 SF new construction Value $4.4M Start/finish: 2Q 2012/1Q 2013 Subcontractors: Dar-Hil, AAA Landscaping, Stonart, Sweetwater Group, Mirage Plastering, BW Plumbing, D&J Air Conditioning, Cornerstone Electrical Contractors

7. CITY OF CHANDLER AIRPORT WATER RECLAMATION FACILITY EXPANSION Developer: City of Chandler General Contractor: McCarthy Building Companies Engineer: Wilson Engineers Location: 889 E. Queen Creek Rd., Chandler Size: 104 total acres; 23 disturbed acres Value: $105M Start/finish: 2Q 2012/3Q 2014 Subcontractors: Earthwork & Yard Pipe, K&F Electric, Invensys, Schnabel Foundations, Coreslab, Harris Rebar, Powers Steel, Gerdau Steel, Schuff Steel, Optco, Stone Cold Masonry, American Fence, AAA Landscaping, Colton Construction 8. CYRUSONE Developer: Capital Commercial Investments General Contractor: JE Dunn Construction Architect: Corgan Associates and PHArchitecture Broker: Jones Lang LaSalle Location: 2335 S. Ellis St., Chandler Size: 200,293 SF Value: $44.2M Start/finish: 2Q 2012/4Q 2012 data hall; 1Q 2013 office building Subcontractors: Aero Automatic Sprinkler, American Direct Procurement, APA Industries, Arizona Superior Cleaning, ASSA ABLOY Entrance Systems, Banker Insulation, Bel-Aire Mechanical, Bergelectric Corporation, Charles Court Construction, Cookson Door Sales of Arizona, Coreslab, Customized Performance, DM Robinson, E & K of Phoenix, F & N Enterprises, Hubbard Enterprises, IDG Innovative Development Group, Interiortek, ISEC, KT Fabrication, Kone, MKB Construction, Northstar Alarm & Suppression, Phoenix Scaffolding & Equipment, Progressive Services, Ricker Atkinson McBee Morman &

Associates, Ricor, Schuff Steel, SOS Exterminating, Steelock, Sun Valley Masonry, Suntec Concrete, Urban Landscape Group, Wholesale Floors 9. DOWNTOWN PHOENIX CAMPUS SUN DEVIL FITNESS COMPLEX Developer: Arizona State University/ Valley of the Sun YMCA General Contractor: Sundt Construction Architect: Marlene Imirzian & Associates Location: 330 N. 1st Ave., Phoenix Size: 74,000 SF Value: $21M Start/finish: 3Q 2012/3Q 2013 10. EARNHARDT DODGE General Contractor: Johnson Carlier Architect: John Mahoney Architect Location: Val Vista Dr. and Loop 202, Gilbert Size: 80,016 SF Value: $7.4M Start/finish: 1Q 2013/4Q 2013 Subcontractors: Saguaro Steel, SECON, Stoll Masonry, ThyssenKrupp, Gen3, AZ Glass, Diversified Roofing, Mountain States 11. ENVIRONMENT & NATURAL RESOURCES BUILDING, PHASE 2 (ENR2) Developer: University of Arizona General Contractor: Hensel Phelps Architect: GLHN & Richard + Bauer Location: 1064 E. Lowell St., Tucson Size: 150,954 SF Project Value: $75M Start/finish: 2Q 2013/2Q 2015 12. ESMOND STATION MIDDLE SCHOOL Developer: Vail School District General Contractor: Lloyd Construction Company Architect: Swaim Associates Ltd. Architects Location: 9400 S. Atterbury Wash Way, Tucson Size: 51,000 SF

Value: $8M Start/finish: 1Q 2013/3Q 2013 Subcontractors: Achilles Air Conditioning, Allan Fire Protection, Architectural Openings, Blanco Concrete, Madera Mechanical, Flooring Systems, Johnson Brothers Painting, KLS Electric, Magnum Paving, Mirage Plaster, P&M Drywall, Preston Insulation, Progressive Roofing, Steel Management 13. FAIRMONT SCOTTSDALE PRINCESS BALLROOM ADDITION Developer: Strategic Hotels & Resorts General Contractor: Howard S. Wright, a Balfour Beatty company Architect: Kollin Altomare Architects Location: 7575 E Princess Drive, Scottsdale Size: 60,000 SF Value: $20M Start/finish: 3Q 2011/3Q 2012 Subcontractors: Suntec, Saguaro Steel Industries, Stone Cold Masonry, Craftâ&#x20AC;&#x2122;s Quality Glass, E&K Construction Phoenix, Markham Contracting, Delta Diversified, Masseur Plumbing, Mechanical Solutions, Complete Fire Protection, Arizona Elevator Solutions, Meyer & Lundahl Manufacturing Co., B&F Contracting, All State Utilities, Norcon Industries, Hufcor Desert West Products, One Source Interiors, Native Resources International, European Pavers, Commercial Door & Hardware, Classic Roofing, Arizona Stucco, Sound-Crete Contractors, G.R. Taylor Enterprises 14. HORIZON HIGH SCHOOL MODERNIZATION PROJECT General Contractor: Chasse Building Team Architect: DLR Group Location: 5601 E. Greenway Rd., Phoenix Value: $12.5M Start/finish: 2Q 2012/3Q 2013 Subcontractors: Johnston Engineering, W&W Structural, Pete

King Construction, Irontree Plumbing, Pueblo Mechanical, Urban Energy Solutions 15. INTEGRATED EDUCATION BUILDING AT GATEWAY COMMUNITY COLLEGE Owner: Maricopa Community College District Developer: Gateway Community College General Contractor: CORE Construction Architect: SmithGroupJJR Location: 44th St. and Van Buren, Phoenix, within the Discovery Triangle Size: 137,000 GSF Value: $53M Start/finish: 2Q 2011/3Q 2012 Subcontractors: Paragon Structural Engineers, Dibble Consulting Engineers, Kovach Building Enclosures, Sun Valley Masonry, S & H Steel, L.R. Cowan, Jen Electric, Barret Homes, Wholesale Floors, Harris Mechanical and Iron Tree Plumbing 16. LOOKOUT MOUNTAIN ELEMENTARY SCHOOL REBUILD Developer: Washington Elementary School District General Contractor: Adolfson & Peterson Architect: Orcutt | Winslow Location: 15 W. Coral Gables, Phoenix Size: 99,000 SF Value: $14.4M Start/finish: 4Q 2011/3Q 2013 Subcontractors: LR Cowan, Stone Cold Masonry, Breinholt, W&W Structural, Reflection Builders, ACE, Mesa Insulation, Progressive Roofing, Mirror Works, Canyon Plastering, Wholesale Floors, Pete King, Norcon, AZ Restaurant Supply, Complete Fire, A-Pro Plumbing, ThyssenKrupp, Harris Mechanical, Spectra Electric, Red River Contracting, DTR Landscape, Redpoint Contracting

ABA: PROJECTS

17. MARICOPA COMMUNITY COLLEGE CHANDLER-GILBERT COYOTE CENTER Developer: Maricopa Community Colleges General Contractor: Sundt Construction Architect: Dick + Fritsche Design Group Location: 2626 E. Pecos Rd., Gilbert Size: 70,000 SF Value: $18.5M Start/completion: 1Q 2013/2Q 2014 18. MARICOPA COUNTY SHERIFF’S OFFICE HQ Developer: Maricopa County General Contractor: D.L. Withers Construction Architect: Gabor Lorant Architects Location: 550 W. Jackson St., Phoenix Size: 132,000 SF Value: $46M Start/finish: 1Q 2012/1Q 2014 Subcontractors: Integrated Support Systems, Pena Acoustics, Suntec Concrete, D.H. Pace, Pete King Construction, Kone, Mesa Insulation, Aluglass, Pioneer Masonry, Termite One, Kovach, T-Pac, RLS Carpentry,

North Star, Schuff Steel, M&J Caulking, SmithCraft 19. MAYO CLINIC PROTON BEAM THERAPY FACILITY Developer: Mayo Clinic General Contractor: Hunt Construction Architect: AECOM Location: 5777 E. Mayo Blvd., Phoenix Size: 217,200 SF Value: $180M Start/finish: 3Q 2012/4Q 2013 Wilson Electric provided temporary power, distribution and rough installation for specialized equipment provided by Hitachi America, Ltd. 20. OCTANE RACEWAY Developer: Octane Raceway General Contractor: hardison/ downey construction Architect: Tomecak Design Location: Pavilions at Talking Stick, Loop 101 & Indian Bend, Scottsdale Size: 59,000 SF Value: $917,000 Start/finish: 4Q 2012/2Q 2013 Subcontractors: Adobe Drywall, Alpine Mechanical & Service, The

78 | July-August 2013

Alternative Edge, Desert Structures, Niemeyer Bros. Plumbing, Rouser Concrete, Spiller Fabrication, Stealth Demolition, Vintage Plastering, Wholesale Floors, Wilson Electric Services Corp. 21. PHOENIX MOTOR CO. MERCEDES BENZ SCOTTSDALE General Contractor: Johnson Carlier Architect: Barry Barcus Architect Location: Scottsdale Rd. and Highland, Scottsdale Size: 80,000 SF Value: $9.5M Start/finish: 1Q 2013/4Q 2013 Subcontractors: Bottas Concrete, Brothers Masonry, Civil Engineering Services, Hawkeye Electric, Western Technology, Maricopa Metals, Milling Machinery, S&S Paving, Comfort Systems, Schneider Elevators 22. PHX SKY TRAIN — STAGE 1A Developer: City of Phoenix General Contractor: McCarthy Kiewit JV Architect: Gannett Fleming Location: 3400 Sky Harbor Blvd., Phoenix Size: 37,500 SF; Guideway — 2,992

SF; Core Network Building — 5,100 SF; Terminal 3 renovation — 15,000 SF Value: $124M Start/finish: 4Q 2011/3Q 2014 Subcontractors: McCarthy/Kiewit, K&F Electric, Malcolm Drilling Co., Inc., CSW Contractors, Case Foundation, Suntec, TPAC, Schuff Steel, Progressive Roofing, Kovach, Walters & Wolf, NKW, ThyssenKrupp, Midstate Mechanical, Delta Diversified, TP Acoustics, ISEC, Rolling Plains, Jones Concrete, Endo, Michael Valente, Sun Valley Masonry, Rite Way Thermal, AK&J Sealants, Aero Automatic, WJ Maloney, Rhino Contracting, Bell Steel, Misc T Metals, Corradini, Phoenix Pipelines, Dickens Quality Demo, Straightline Utilities, Rural Electric, USA Shade 23. PHX SKY TRAIN — PHASE 1 Developer: City of Phoenix General Contractor: Hensel Phelps Engineer: Gannett Fleming Architect: 44th St. Station/T4 Station, HOK Architect: EEL Station, Fore Dimension Location: Phoenix Sky Harbor International Airport Size: Station, 233,000 SF; Guideway, 1.9 miles

80 | July-August 2013

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ABA: PROJECTS 26

Value: $343M Start/finish: 2Q 2008/4Q 2012 (substantial completion) Subcontractors: C.T. Price, RBG Construction, Sun Eagle, Phoenix Pipeline, Rural Electric, MRM, Sentinel Fencing, Five G, HG Steel, ICF Specialist, Metro Steel Services, Classic Roofing, Canyon Plastering, Walters & Wolf, M&J Construction, Tradewinds Framing, America’s Contractor, Creative Design, TP Acoustics, Beach Products, Imcor, JFK Electrical, Charles Court, HACI Mechanical, NKW Framing, Progressive Roofing, Hunter Contracting, Rainbow Demolition, L&L Asphalt, S.C. Legacy Contracting, Southwest Barricades, Five G, Utility Construction Co., RGG United Contractors, Kiewit, Ammex Rebar, DP Electric, Austin Bridge, Haydon Construction, Schuff Steel 24. PHX SKY TRAIN — PHASE 1 AND PHASE 1A

82 | July-August 2013

Developer: City of Phoenix (owner); Bombardier Transportation USA (prime) General Contractor: The Weitz Company Architect: RNL Architects (building); CK Group (Phase 1 guideway, engineering); HilgartWilson (Phase 1A guideway civil); TLCP (Phase 1A structural) Location: 1111 S. 44th St., Phoenix Size: 33,000 SF maintenance facility; 2.2 miles guideway (Phase 1); 3,750 linear feet (Phase 1A) Value: $92M ($73M Phase 1; $19M Phase 1A) Start/finish: Phase 1, 2Q 2010/2Q 2013; Phase 1A, 2Q 2013/4Q 2014 Subcontractors: Wilson Electric, Suntec Concrete, CPD/Bell Steel, Perez Construction 25. PIMA COUNTY DOWNTOWN COURTS COMPLEX Developer: Pima County

General Contractor: Concord General Contracting, Inc. Architect: Swan Architects, Inc. Location: 31 N. Pinal St., Florence Size: 22,449 SF Value: $5.5M Start/finish: 4Q 2011/4Q 2012 Subcontractors: Fidelity Mechanical Contracting, Torres Drywall & Plastering, Crout & Heller Painting Services, Legacy Air 26. 1891 PINAL COUNTY COURTHOUSE General Contractor: Concord General Contracting, Inc. Architect: Swan Architects, Inc. Location: 31 N. Pinal St., Florence Size: 22,449 SF Value: $5.5M Start/finish: 4Q 2011/4Q 2012 Subcontractors: Fidelity Mechanical Contracting, Torres Drywall & Plastering, Crout & Heller Painting Services, Legacy Air

27. RANCHO SOLANO VENTURA CAMPUS Developer: Meritas General Contractor: hardison/ downey construction Architect: Ayers Saint Gross Location: Loop 101 & Via de Ventura, Scottsdale Size: 105,000 SF Value: $8.3M Start/finish: 3Q 2012/2Q 2013 Subcontractors: Adobe Drywall, Anziano Hardwood, Commercial Door & Hardware, Comfort Systems USA Southwest, Dallas Professional Painting, Encore Steel, Magnum Architectural, ReSource Arizona, Rouser Concrete, Ryan Mechanical, Star Roofing, Stone Cold Masonry, Vintage Plastering, Wilson Electric Services Corp. 28. RECOVERY EXPANSION AND RENOVATION, MARIPOSA LAND PORT OF ENTRY, PHASES 1-4

Developer: General Services Administration General Contractor: Hensel Phelps Architect: Jones Studio Location: 346 N. Mariposa, Nogales Size: 216,000 SF Project Value: $184M (all phases) Start/finish: 4Q 2009/3Q 2014 Project tenants: U.S. Customs and Border Protection, U.S. Food and Drug Administration, the U.S. Department of Agriculture, the Federal Motor Carrier Safety Administration, and the Arizona Department of Transportation. 29. RECREATION CENTERS OF SUN CITY Developer: Sun City General Contractor: Wilson Electric was Prime Architect/Engineer: Caruso Turley Scott, Cottrell Engineering, Energy Systems Design, Hawkins Engineering, Omni Engineering, and Peterson Associates Location: Sun City Size: 10 sites across 7 miles Value: $9.8M Start/finish: 1Q 2012/2Q 2013 Subcontractors: Premier Underground, Ironco, Solar Structure Systems, Resolute Performance Contracting, Adobe Painting, ValleyCrest Tree Care, Complete Fire Protection, Tempe Mechanical, Hernandez Companies, Beecroft, RBG Construction 30. TEMPE UNION COMPADRE HIGH SCHOOL ADDITIONS & RENOVATIONS AND DISTRICT OFFICE RENOVATIONS Developer: Tempe Union High School District General Contractor: McCarthy Building Companies Architect: SPS + Architects Location: 500 W. Guadalupe Rd., Tempe Size: 58,000 SF Value: $13.6M Start/finish: 2Q 2013/3Q 2014 Subcontractors: Cactus Asphalt, Apache Pipelines, LR Cowan Concrete, Brothers Masonry, Schuff Steel, TD Industries Mechanical and Plumbing, Echo Canyon Electric 31. TUCSON MEDICAL CENTER WEST CAMPUS DEVELOPMENT & ADDITION Developer: Tucson Medical Center General Contractor: JE Dunn Construction

Architect: Hobbs + Black Architects Location: 5301 E. Grant Rd., Tucson Size: 218,930 SF Value: $74.6M Start/finish: 3Q 2011/2Q 2013 Subcontractors: Architectural Millwork Design, Barker Morrissey Contracting, Blount Contracting, Borderland Construction Company, Brothers Masonry, Cascade Electric, Comfort Systems USA Southwest, Environmental Earthscapes DBA The Groundskeeper, Foley Masonry and Tile, Gilbert Electric Company, Just Rite Acoustics of Arizona, MKB Construction, Romanoski Glass & Mirror, Schuff Steel Management Company SW, Sun Mechanical Contracting, Suntec Concrete, Wholesale Floors, Wilson Electric Services Corp. dba Netsian 32. UNIVERSITY OF ARIZONA CANCER CENTER Developer: University of Arizona General Contractor: Hensel Phelps Architect: Zimmer Gunsul Frasca Partnership Location: 625 N. 6th St., Phoenix Size: 213,000 SF Value: $100M Start/finish: 1Q 2013/3Q 2015 Subcontractors: Delta Diversified, Bel-Aire Mechanical, Foothills Fire Protection, Swisslog, Otis Elevator, MSI, KT Fabrications, Kovach, Phoenix Pipeline 33. UNIVERSITY OF ARIZONA ENGINEERING INNOVATION BUILDING Developer: University of Arizona General Contractor: Sundt Construction Architect: SmithGroupJJR Size: 107,000 SF Value: $63M Start/finish: In preconstruction; construction scheduled 1Q 2014 to 3Q 2015 34. UNIVERSITY OF ARIZONA OLD MAIN RENOVATION Developer: University of Arizona General Contractor: Sundt Construction Architect: NTD; Poster Frost Mirto Location: 1200 E. University, Tucson Value: $9M Start/finish: 1Q 2013/2Q 2014 Subcontractors: Sun Mechanical, Sturgeon Electrical, Sellers & Sons, Kovach, Cox Masonry

ABA: MEMBER PROFILES

ANGIE ZIEGLER

VICE PRESIDENT GENERAL AIR CONTROL Years in CRE: 19 Years in ABA: 10 Q: WHY DID YOU GET INVOLVED WITH ABA? A: The quality of their membership along with the ABA’s commitment to building a better industry and community. Q: WHY IS IT IMPORTANT TO TAKE A LEADERSHIP ROLE IN ABA? A: The ABA is fi lled with outstanding leaders and so it makes others like myself want to step up and get involved to do our part. Q: HOW IMPORTANT TO THE SUCCESS OF YOUR BUSINESS IS YOUR INVOLVEMENT WITH ABA? A: Extremely important. ABA offers some of the fi nest educational programs for business owners and their staff. The ABA networking events allows us to enhance established working relationships and form potential new ones. Q: WAS THERE AN “AHA MOMENT” WHEN YOU REALIZED BEING A MEMBER OF ABA WAS INVALUABLE? A: Participating in my first Volunteer Day made me realize the true value of this association. Working hand in hand with the many wonderful companies that make up our membership in a common goal to better others’ lives is so rewarding and fulfi lling. I feel that this focus on giving back to the community that supports them separates the ABA apart from many other organizations.

84 | July-August 2013

JOE DUVALL

ROB CAYLOR

JUSTIN KELTON

PROJECT EXECUTIVE, KITCHELL

PRESIDENT, CAYLOR CONSTRUCTION COMPANY Years in CRE: 33 Years in ABA: 7

Q: WHY DID YOU GET INVOLVED WITH ABA? A: Kitchell has supported ABA for many years. Its employee owners have participated in ABA in various ways during that time, including the Leader Development Forum program ever since its first year in 1993.

Q: WHY DID YOU GET INVOLVED WITH ABA? A: The ABA is a great advocacy group for Arizona contractors. It researches issues that affect all of us involved in creating the built environment, provides discussion forums and programs for everyone involved from the executive level through project management and fosters an atmosphere of respect and cooperation.

VP OF OPERATIONS FOR MCCARTHY BUILDING COMPANIES EDUCATION SERVICES, SOUTHWEST DIVISION Years in CRE: 21 Years in ABA: 10

Years in CRE: 29 Years in ABA: 12 XXXX12

Q: WHY IS IT IMPORTANT TO TAKE A LEADERSHIP ROLE IN ABA? A: In a word, “stewardship.” We have the good fortune to be able to earn a prosperous living in one of the most challenging and exciting industries I can think of while doing something I truly love to do. It’s satisfying driving around town, passing a project we built and proudly telling whomever I happened to be with, “I helped build that.” Q: HOW IMPORTANT TO THE SUCCESS OF YOUR BUSINESS IS YOUR INVOLVEMENT WITH ABA? A: As our industry continues to evolve, it becomes more competitive, requiring all of us to think and build more efficiently. Th is results in faster, more economicallydelivered projects. Q: WAS THERE AN “AHA MOMENT” WHEN YOU REALIZED BEING A MEMBER OF ABA WAS INVALUABLE? A: My “aha moment” was meeting Carol McMullen for the first time in my LDF class. I was impressed by her enthusiastic attitude and belief that the people in our organization are the best at what we do.

Q: WHY IS IT IMPORTANT TO TAKE A LEADERSHIP ROLE IN ABA? A: Taking a leadership role in all facets of life is critical to the direction a society takes. Q: HOW IMPORTANT TO THE SUCCESS OF YOUR BUSINESS IS YOUR INVOLVEMENT WITH ABA? A: Membership in the ABA has been extremely helpful to our company, especially in the past few years of economic downturn. We discuss wide ranging topics, formulate possible solutions and test them in real world situations. The ABA offers educational opportunities to its members that are not available elsewhere, taught by professionals in various fields. Q: WAS THERE AN “AHA MOMENT” WHEN YOU REALIZED BEING A MEMBER OF ABA WAS INVALUABLE? A: At the first meeting I attended I realized that this is an organization committed to its members and their success. I haven’t had any reason to change my opinion and will be a member for life.

Q: WHY DID YOU GET INVOLVED WITH ABA? A: I value partnerships and collaboration. ABA provides an excellent venue for constructive engagement with a wider variety of others in the industry. Q: WHY IS IT IMPORTANT TO TAKE A LEADERSHIP ROLE IN ABA? A: This organization shapes and advances the construction industry. Anyone who is not satisfied with sitting on the sidelines should engage in a leadership role with the ABA and help to take the construction industry to the next level. Q: HOW IMPORTANT TO THE SUCCESS OF YOUR BUSINESS IS YOUR INVOLVEMENT WITH ABA? A: To have a successful business, you have to deliver a great product. While quality construction is at the core of our business, we are able to add value for our clients as a result of the relationships with subcontractors and partners developed through the ABA. Q: WAS THERE AN “AHA MOMENT” WHEN YOU REALIZED BEING A MEMBER OF ABA WAS INVALUABLE? A:Before my career with McCarthy, I served as a U.S. Marine. Th is experience opened my eyes to the strife and challenges faced by people around the world on a daily basis. I’ve been involved with various volunteer projects, but I’ve also been inspired by the way the ABA works to have a positive impact on the lives of those in Arizona.

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ABA

Q&A

BY PETER MADRID

MARK MINTER Executive Director Q: What challenges do you see in America rebuilding its

construction manager and construction worker workforce?

We are going to have a more difficult time “rehiring” compared to previous recessions. Th is economic down cycle has lasted a very long time. Many workers who previously would have returned to the industry have decided to do something else, retire or move. They just aren’t coming back. At the management level the universities that produce construction managers have seen enrollment decline. We won’t see them rebuild for 3-5 years. We will be looking at “poaching” other career paths to fi ll the need for managers. Contractors will have to look at engineers, architects, talented tradespeople to promote into management ranks. In the trades we have a serious challenge. As shortages of workers develop, expect wages to rise dramatically. The higher wages might attract new workers to the industry; then we are going to have to train them to be safe and productive workers.

Q: What is ABA doing to remedy what could be a shortage of tradespeople?

We have an outreach program aimed at high school students. We promote the trades and help make students aware of the various paths they can take to get in the industry and advance. For many years we have run a summer internship program called the Future Builders Academy. The FBA puts students through a one-week “boot camp” that exposes them to the various trades, gets them an OSHA 10-hour safety card and prepares them for a summer job. At the end of the program students are hired by various employers and work the summer. Many of these students have gone on to enter the trades, enroll in apprenticeship programs and graduate with a journeyman’s certificate.

Q: What type of construction work are your members finding out there these days?

It is a very mixed bag of work in the market right now. The tenant improvement market is good as tenants move around to get better rental rates. Hardly any new office construction right now. Public agencies are starting to loosen up as they see revenues build, but nothing compared to a few years ago. Most big firms are looking at other places for the time being. How important to ABA members are public-private partnerships, which are becoming more prevalent?

Q: A:

3P is a procurement method that is here to stay. Any public project that has an identifiable revenue stream is a candidate for a public-private partnership. Universities, dorms, sports venues and 86 | July-August 2013

medical facilities are all being built and run with private money. Airports are a great opportunity for this type of work. In other states we are seeing toll roads building using 3P, but Arizona seems to have an aversion to tolls.

Q: What legislation in the past year has been beneficial to the construction industry?

Over the past few years we have seen several positive changes in statute in Arizona. We have modified the 3P law and the law on job order contracting to expand and make easier to implement. On the negative side the Legislature is currently considering some changes to the sales tax law. Those changes would complicate contractors’ lives and make the system riskier.

Mark Minter is Executive Director of the Arizona Builders’ Alliance, a trade association of commercial and industrial builders including general contractors, subcontractors, suppliers and service companies. The ABA was founded June 1, 1994, as a result of a merger between the Associated Builders and Contractors and the Associated General Contractors. Prior to the merger Minter was with the AGC since 1977 in a variety of positions, including executive director, assistant director and Tucson branch manager. As executive director of the ABA his duties include overall operation of the alliance. He has worked extensively in the areas of labor relations, lobbying, government relations, safety and oversees educational programs.