Issue 4, 2016

Optima Kierland

ARIZONA EXECUTIVE MAGAZINE: M cCa in’s Co r n e r CEM-AZ.COM • ISSUE 4, 2016

BUILDING MOMENTUM 5 LOCATIONS IN CHANDLER AND GILBERT

CHANDLER CORPORATE CENTER IV OCCUPANCY SUMMER, 2016

INDUSTRIAL, OFFICE AND FLEX | INFRASTRUCTURE IN PLACE | PROVEN EXPERTISE IN FOREIGN TRADE ZONES | FULLY ENTITLED / READY TO BUILD

Chandler Corporate Center Chandler Boulevard and McClintock Drive Chandler, AZ

Chandler Corporate Center III 82,000 s.f. office/flex 6,400 s.f. now available

RG Chandler 101

Chandler Crossroads

Loop 101 at Chandler Boulevard Chandler, AZ rg-chandler101.com office, hotel and retail opportunities available

Gilbert Road and Queen Creek Road Chandler, AZ

Chandler Corporate Center IV 86,000 s.f. office/flex Occupancy Summer, 2016

Gilbert Crossroads

Rockefeller Group

North Gateway

Germann Road just east of Gilbert Road Gilbert, AZ

Warner Road and Recker Road Gilbert, AZ

D EV E L O P E R

E X C L U S I V E A G E NT

James V. Camp

Mark Singerman, LEED AP

Senior Vice President and Regional Development Officer

Vice President Regional Director - Arizona

RGDC-CA@rockgrp.com

RGDC-AZ@rockgrp.com

®

www.rockefellergroup.com

Office:

Phil Breidenbach, SIOR phil.breidenbach@colliers.com 602-222-5073

Industrial:

Paul Sieczkowski, SIOR paul.sieczkowski@colliers.com 602-222-5085

2390 E. Camelback Road, Rob Martensen, SIOR, CCIM Suite 100 rob.martensen@colliers.com Phoenix, AZ 85016 602-222-5082 602-222-5000 www.colliers.com

EXECUTIVE PUBLISHER Mandy Purcell mandy@mpmediaaz.com EDITOR-IN-CHIEF Sarah Stecko sarah@mpmediaaz.com GRAPHIC DESIGN Crown Press, Inc. art@crownpress.com EDITORIAL April Atwood Josh Chesler Josh Gordon Tim Randall Wayne Schutsky PHOTOGRAPHY Tony Elliot Carl Schultz Matthew Strauss

SIDE I COVER STORY: OPTIMA KIERLAND David Hovey Sr. & Jr.

BROKER TEAM of the MONTH:

10

COMPANY-to-WATCH: Meadows Bank

18

Ryan Bartos, Matt Coxhead & Kyle Seeger of JLL

© 2016 BY MP MEDIA, LLC All rights reserved. No part of this publication can be reprinted or reproduced without publisher’s permission.

Opinions expressed are those of the authors or persons quoted and not necessarily those of CEM. 2920 East Camelback Road, #228 Phoenix, AZ 85016 602-955-2899

www.cem-az.com

COMPANY PROFILE: The Boyer Company

20

TALK of the TOWN: McShane Construction Company

26

MARKET UPDATES: Multifamily

28

SIDE II COVER STORY: MCCAIN’S CORNER

2

INFO-to-KNOW: The TGen Generation

6

EDUCATION UPDATE: Grand Canyon University

10

NEW STARTUP: GROW Learning Management System

14

President Brian Mueller

2

4

© Copyright 2016 by MP Media, LLC

“The ordinary wait for the energy to do the work.

The extraordinary do the work to get the energy.”

– Robin Sharma

As we keep hoping this summer heat will just “fly” by, we can’t help but think of the On the reverse story of the Wright Brothers and their eccentric idea that an object heavier than side, we’re bringing air can still be able to fly. This out-of-the-box way of thinking reminded us of back Arizona Executive another family partnership that is famously recognized for the distinctive, Magazine to report on innovative Optima projects: David Hovey Sr. and David Hovey Jr. Check what’s important in our state out the cover story for the exclusive father-son interview on the latest right now. What’s fueling and development, Optima Kierland. /// Next stop, we have a new team further promoting the brand of that isn’t exactly new to this market to talk about their venture Arizona? How else will Interstate-11 to a large brokerage and how they’re tailoring their game affect our economic development? Found plan. Find out who the trio is and what their journey was out in “McCain’s Corner,” where he also in the “Broker Team of the Month” section. /// Then, discusses what recent legislation he’s personally keep your eye on the “New Bank on the Block” proud of. It’s a sneak peek into his insight Meadows Bank in the Biltmore corridor. In the before he appears on the Fall Forum 2016 panel! middle of all the action, they needed a great /// Furthermore, we’re honored to present the central strategy for staying afloat and with their hub of innovation in genomic studies: the Translational well-known founding board members, Genomics Research Institute (more commonly known as we think they’ve got it. /// Faithfully, TGen) in Phoenix. Founder Dr. Jeffrey Trent and TGen North’s we’ve sorted out the best market Dr. Paul Keim discuss the current studies that everyone will soon be updates in the multifamily talking about, such as finding the cure sector, in particular, along to various types of cancer, new technology with the most seasoned to prevent the spread of disease in hospitals, experts to give their and using sensors in football helmets to detect input on the trends concussions. Found out what some of its biggest and crystal ball supporters on the board think of TGen. /// Even though visions.

Proposition 123 has passed, there’s still a lot of work to be done in the education department. In our “Education Update,” we interviewed Grand Canyon University’s President Brian Mueller on its strategies to help improve K-12 students with a different type of support system than just monetary.

Mandy Purcell

Executive Publisher © Copyright 2016 by MP Media, LLC

Sarah Stecko Editor-in-Chief

3

STORY

Cover

4

The story of the Wright Brothers, Orville and Wilbur, who were aviation pioneers because of their successful aircraft design, is similar to that of the Hovey father-and-son duo that has carved out a name for themselves because of their remarkable art of design in buildings. /// David Hovey Sr. and David Hovey Jr. are unmistakably recognized for their Optima projects around the Valley and Chicago metro. Sure, others took the risk of trying it first, but the Wrights and the Hoveys have earned the title of being the best at their craft. /// Even more like the brothers, the team takes the pilot’s seat when it comes to handling the controls as the architect who is also the developer and the general contractor. /// By now everyone in the Valley can spot an Optima project before even reading its sign.

And every next Optima model has some type of improvement or innovation over the last. /// It’s pretty impossible not to drive past the Optima Kierland project at Scottsdale Road and Kierland Boulevard and not stare out the window wondering about what extravagant luxury condos are about to come. /// Well, Commercial Executive Magazine got the exclusive interview with both David Hovey Sr. and David Hovey Jr. about the project, so you’ll know all the details.

STORY

Cover

Closing in on 40 years of designing and building signature properties with a distinct look and feel, internationally acclaimed architect David Hovey Sr., founder and CEO of Optima, has built a legacy portfolio of inspiring architectural residences in the Greater Phoenix and Chicago areas.

With the firm’s latest offering, Optima Kierland (in the north Scottsdale area), Hovey Sr. is continuing that legacy — not only through the continuation of innovative architecture — but by fostering an environment of collaboration and engagement with greater reliance on his son, David Hovey Jr. and daughter, Tara Hovey, in the family-owned business.

With completed multifamily projects totaling 4,000+ units, the Optima name stands not only for aesthetic beauty and exceptional architectural design, but for functionality. The company’s award-winning Greater Phoenix projects include: Optima Sonoran Village, Optima Camelview Village and Optima Biltmore Towers; signature projects in the Chicago area include Optima Chicago Center and Optima Old Orchard Woods in Illinois. /// Optima Kierland continues the company’s tradition of excellence; only this time, Hovey Jr.’s ideas and approach are front and center. “Kierland is the first project that I have had the lead working with my father in terms of architecture and design,” Hovey Jr. says. “I started learning from him when I was a young boy and now I feel that we are really connecting with all aspects of design, development and construction.”

A R C H I T E C T

G O N E

D E V E L O P E R

The origins of Optima actually began not in Chicago, but in a small New Zealand city near the capital of Wellington, where Hovey Sr.’s father was stationed as a Marine in the 2nd Division shortly after WWII, and where Hovey Sr. was born. /// The architect in Hovey Sr. came out early, while still in New Zealand, and for him there was no looking back. “The headmaster of the school I attended told my parents at a PTO meeting that I should be an architect, because I was good at math and art,” Hovey Sr. recalls. “That was it. I never entertained any other possibility. I knew that’s what I wanted to do.” /// He continued his architectural journey at the Illinois Institute of Technology (IIT) where he earned Bachelor’s and Master’s degrees in Architecture. He first honed his craft at a large-scale, 458-staffed Chicago firm (now called JAHN) at the age of 28, working on major projects across the country. /// “I left at 32 as a vice president, because I remembered a professor of mine at IIT who mentioned an idea where the architect was also a developer. They controlled the whole process from land purchase to design, and there was no one else doing it,” he says. “So in 1978, my wife Eileen and I refinanced our two-bedroom condo to come up with the cash and bought some urban renewal land on the south side of Chicago and built six townhomes.”

5

STORY

Cover

R I S E

O F

O P T I M A

That first move into residential development and

design began with a straightforward premise. “I would design and build the projects and Eileen (who is the Director of Sales and Marketing at Optima) would sell them,” he says. /// The concept of the company was that each project would get a bit bigger. They would learn from the small projects to handle the big projects. And the concept worked, as over the years, the developments multiplied rapidly from a second project of 16 townhomes to 24, then 63 condos and apartments, and eventually reaching 900 units. /// “We have experienced recessions and depressions in the real estate industry,” Hovey Sr. says. “It is unusual for a developer to stay in business for 38 years.”

When did it break ground?

Estimated completion date?

What date will sales open?

When will the apartments be added & how many will there be?

What is the total project value/cost?

P H I L O S O P H Y

Demolition started Sept. 2015, excavation started Oct. 2015.

The first condo building will be complete in approx. 18 mos. to 2 yrs.

The apartment building will be complete in Q1 2017.

March 2016 There are 156 apartments in the second tower.

It will begin occupancy Feb. 2017.

The total project value exceeds $500 million.

His vision for Optima grew out of a belief that traditional

models of real estate development did not capture synergies, were inefficient and created a desultory environment. “The structure of the company is vertically integrated,” Hovey Sr. says. “We buy the land, create the design, act as the general contractor, and handle the marketing and sales and property management.

The process is more efficient and has tremendous advantages.” /// While the Optima framework provides the business roadmap, Hovey Sr.’s passion for architecture and imbuing that energy into designs has driven the brand and invigorated Eileen, Hovey Jr., and daughters, Tara and Lauren. /// “We do projects that are architecturally significant,” Hovey Sr. says. “I never was interested in ordinary, and always wanted to work on really grand projects.”

6

STORY

Cover

H O V E Y

FA M I L Y

Hovey Jr’s involvement at Optima began early on, when he’d pitch in on job sites during the summer.

After graduating from Cornell University in 2001 with a B.S. in City and Regional Planning, Hovey Jr. decided against pursuing a professional hockey career because of a serious spine injury, and returned to Optima as a construction superintendent and project manager. /// “After I was finished with hockey I became very interested in the efficiency of the construction process I was seeing on our job sites, as well as our design,” he says. In 2004, following in his father’s footsteps, he graduated from IIT with a Master’s in Architecture. Hovey Sr., who also taught at the school as an associate professor, is pleased with the direction his son pursued. “What was good about what David did was he not only had the academic qualifications, but he started at lower levels in various architecture design and construction areas,” the father says.

“He was involved in all aspects of the business and worked his way up, learning from the ground-up.” /// Today, his son is President of Optima and Optima DCHGlobal, Inc., a subsidiary firm, which is aimed at providing sustainable housing for any location,

climate or terrain by utilizing a set of standardized components that can be efficiently assembled.

Relic Rock, a home in Scottsdale, is a prototype showcasing the building system. “This system is much more efficient than traditional construction and much more advanced,” Hovey Jr. says. “From a sustainability standpoint, it is far superior.” /// And, he’s not the only member of the family to get in on the action. Hovey Jr.’s sister, Tara Hovey, is Co-President of Optima, based in the company’s Chicago office, specializing in the financing operations of the company, and is a graduate of Boston College and The Wharton School of the University of Pennsylvania. /// Other sister, Lauren Hovey, who owns her own strength and conditioning company, also provides value for Optima. “Lauren has begun guiding the inclusion of strength and conditioning, fitness and nutrition amenities in our projects, and she’s doing a fantastic job,” he says. /// In Hovey Sr.’s estimation, Eileen Hovey, the sales and marketing guru, perhaps has played the most important role of all. “She has always encouraged me to do what I think is right, not what is the easiest or most conventional,” Hovey Sr. says. “She is willing to stick her neck out as much as I am to try to achieve something great.”

“I never was interested in ordinary, and always wanted to work on really grand projects.”

8

– hovey sr.

STORY

Cover

• Outdoor Zen Spa Garden

• Zero Edge Spa

• Sauna

• Zero Edge Heated Lap Pool with built-in relaxation coves

• Steam Room

• Steam Room

• Hydrotherapy Room

• Sauna • Hydrotherapy Room

• Zero Edge Cold Plunge • Zero Edge Hot Tub

• Negative Edge Hand Rail System allowing residents to have dramatic uninterrupted views • Outdoor lounge areas with fire pit

• Bar & Fire Pit • 60” - 80” flat screen TVs by pool

• Full catering kitchen with covered bar & BBQ areas • 60” - 80” flat screen TVs by pool

C R E AT I N G O P T I M A

K I E R L A N D

If a torch of sorts in the form of the architect’s toolkit has been passed from father to son during the Kierland project, Hovey Sr. realized it was because the young man had enormous potential to bring a unique vision to projects. “David has a skillset that I don’t think I have; he is very good with people,” he says. “This was a very difficult land purchase. David recognized this was a great site and spent three years working with the sellers, helping them to feel comfortable selling the property to us. I initially told Eileen that the project was never going to happen, because it was too complex and difficult.” /// The long process was worth it however, as Optima did obtain the 9.5-acre site located at Scottsdale Road and Kierland Boulevard. Now with the development of the $500 million project and Phase One, featuring a 12-story condominium tower with 220 residences, and a luxury apartment building of 156 residences, Optima has added yet another masterpiece to its portfolio.

“David Jr. and his Arizona team did the entire project from start to finish,” Hovey Sr. says.

L O N G

R U N WAY

Beyond all of the accolades for Hovey Sr. and Optima’s success, Hovey Jr. is appreciative of his father’s efforts in support of their family personally: “He has put us in the best possible position to be successful and has continuously been supportive in all aspects of our lives.” /// From the business perspective, Hovey Sr. views a long runway for Optima. “We are so passionate about projects and really do put a great deal of time and energy into them.” Increasingly, as Hovey Jr. and Tara take on expanded roles, they will have room to grow the company even further. /// “I told David and Tara that I took the company a certain distance and you have the opportunity to take it even further,” Hovey Sr. says.

9

Broker Team of the

MONTH

IN ANY ORGANIZATION, FUTURE SUCCESS CAN OFTEN BE PREDICTED BASED ON THE RISING TALENT THAT IS DEVELOPED IN LINE WITH THE CULTURE OF THE COMPANY. For JLL, the future is indeed bright with the addition of three star local market brokers: Matthew Coxhead, Ryan Bartos and Kyle Seeger to the company’s Phoenix Tenant Representation team. /// “We have always looked at JLL as one of the top brokerage firms not just in Phoenix, but across the globe,” Coxhead says. “JLL’s tenant representation has a long history, and it was a tremendous opportunity [to join].” /// The Fortune 500 company is a global leader in real estate management and services, with gross revenue of $6 billion and operating out of more than 280 corporate offices worldwide.

10

Broker Team of the

MONTH

NEW OPPORTUNITIES

N E W T E A M M AT E S

Locally, the JLL Phoenix office already is one of the flagship offices of the brand. In 2015, the Phoenix team completed 17.2 million square feet in lease and sale transactions valued at $930 million, and currently manages a 16.4 million-SF portfolio. With Coxhead and Bartos as executive vice presidents and Seeger as an associate member of the team, JLL receives an injection of fresh thinking to their established and deep bench of 13 tenant rep brokers and a total of 41 brokers office-wide who together provide office, industrial, retail, multifamily and capital markets expertise for owners and tenants. /// “JLL has an unbelievable culture,” Bartos says. “A lot of companies talk about collaboration, but JLL really executes on that – it is a very forward-thinking office.” /// The new triumvirate is excited to add their office tenant representation skillset to the JLL group. “We are going to continue to operate as we always have, focusing on business development, digging up new opportunities and exceeding the expectations of our clients,” Coxhead says.

All three transferred from Savills Studley, the tenant representation division of global commercial real estate firm Savills plc, and Coxhead and Bartos have worked together as teammates since 2012, when they paired up at Cushman & Wakefield. /// “Ryan and I have been partners for years and were happy to add another member – Kyle – to our team because of how consistently busy we were,” Coxhead says. /// Seeger, a recent graduate of the University of Arizona, first worked for Coxhead and Bartos at Cushman & Wakefield as an intern in 2014, and then joined them at Savills Studley in 2015. /// On his end, Seeger is immersing himself in the experience. “These two have given me the opportunity to grow at a fast rate and allowed me to work on their same level,” Seeger says. “They have encouraged me to grow far faster than I could have imagined.” /// With Seeger’s first year under his belt, he knows there is a lot more to learn from Colorado State University graduate Coxhead, who started his career a decade ago at Grubb & Ellis Company, and Arizona State University (ASU) graduate Bartos, who entered commercial real estate seven years ago at Cushman & Wakefield.

“We continue to see a lot of company attraction from out of state. Even more exciting are the companies & entrepreneurs already here that are expanding.

They are advocates for Phoenix.”

– M at t h e w C o x h e a d

NEW DEALS Since 2012, and prior to joining JLL, Coxhead and Bartos had completed 3.3 million SF of lease deals, totaling over $386 million in lease value. They now have their sights on adding to JLL’s 2015 Phoenix office total of 214 successful lease transactions totaling 13 million SF. /// “Office leasing had an historic year of absorption in Phoenix with three million square feet,” Coxhead says. “Halfway through this year, we are already on pace to meet or exceed that number.” /// In order to get there, the team will need to continue their impressive record of deal flow. The completion of the Oscar Health transaction during the second quarter paved the way for the New York-based technology insurance provider to expand its operations into The Circuit, a Tempe in-fill site once used as a manufacturing facility. /// Beyond the site itself, Oscar Health was impressed with the Greater Phoenix metro and particularly Tempe. “They initially were evaluating five markets in addition to Phoenix: Las Vegas, Portland, Louisville, Nashville and Salt Lake City,” Bartos says. “Oscar Health needed to get in quickly to a big block of space where they could scale, and they liked the creativity of this space and its close proximity to ASU.” /// The area’s young workforce was a compelling draw for the firm, and the location was ultimately sealed, in part, because of the insight provided by Seeger. /// They clarified with Kyle about the location and the young, just-out-of-college employees they were looking for. “We thought we were still young,” Coxhead laughs. “Having Kyle – who is actually young, but also so sharp – is a way we differentiate our team with clients.”

11

Broker Team of the

MONTH

/// In a second deal, the creation of a regional headquarters for Cleveland-based technology firm Gabriel Partners underscored the broader elements of why Greater Phoenix is becoming a hot spot for company expansion and relocation, specifically for the technology sector. /// “Our economic development organizations are aggressive in attracting companies, and we consider them part of our team,” Bartos says. /// Coxhead concurs, noting that Arizona has done a good job of differentiating itself, and its quality of labor is an important factor. “There is also a good diversity of industries here. We are not just reliant on residential real estate anymore; the economy has diversified,” he says. /// In the case of the Gabriel Partners lease, which will bring over 100 new jobs to the Valley, their leadership was drawn to Downtown Phoenix, because of a similar feel to Cleveland, as a true business district and the urban feel of the city.

12

N E W M A R K E T U P D AT E S

NEW FUTURE

The office sector will continue to experience a strong expansion posture, according to Coxhead. “Demand is as strong as it has ever been. There is no reason to be pessimistic. I believe we’ll continue to grow over the next several years,” he says. /// One of the fundamental drivers behind this trend is the availability of unique office sub-market locations. “There are different options for different clients, in that there is not just one urban market in Phoenix; we have three: Scottsdale, which has a club and entertainment feel, Tempe, which has the ASU college environment, and Downtown Phoenix, which offers a sophisticated historical appeal,” Bartos says. /// This array of choices, along with outstanding communities such as Chandler, Gilbert, Glendale and others, are precisely why the team’s potential clients are looking at all of their available avenues for expansion. /// Anticipating a healthy office sector, the team does not voice any concerns about a threat of overbuilding. “Development is happening and we continue to see a lot of company attraction from out of state,” Coxhead says. “Even more exciting are the companies and entrepreneurs already here that are expanding.

They are advocates for Phoenix.”

While technically all considered millennials, there is nearly a decade gap between Seeger and his two partners. “I have two kids under the age of four, and Matt has three under six years old,” Bartos says. “We try to maintain a healthy work/life balance.” /// As for professional goals, Seeger’s is to strive to become a top broker over the next several years. Bartos believes it is important that as a team they develop deeper relationships with their JLL colleagues. /// “Over the next 12-18 months, the goal is to do a deal with each of the tenant representation brokers in the office,” he says. And, Coxhead’s main goal is for the team to comprehensively understand the JLL platform and the resources that are available to its clients in order to win more business. Just a couple months into their new roles, and the three are already showing signs of an impressive future.

KNOWN FOR:

MAKING TIME BE ON YOUR SIDE 38 YEARS OF SUCCESS We stay true to our model of building excellence and preserving the company’s high value to the loyal clients we serve. Working hard for you comes down to three fundamental aspects: supporting prelease transactions; maintaining our ability to competitively bid projects small and large; and fostering the altruistic service mindset.

It’s the hard work from day one that matters most.

R TECH CENTER AT RIVERWALK

480.968.4755 | WILLMENG.COM | # 082904, Class B-01

SPOTLIGHT

Deal

T

he past decade has been busy for Wentworth Property Company (Wentworth) as the Arizonabased development company completed groundup, build-to-suit, spec and redevelopment projects across Metro Phoenix. From individual buildings to entire business parks, Wentworth has been one of the most active developers in the market with a portfolio of current and past development projects totaling over six million square feet. Currently, Wentworth is the largest private land owner in Tempe and the largest owner of office space in North Scottsdale. /// The North Scottsdale distinction is a result of the recent $122 million purchase of five office properties totaling ±638,717 SF with Northwood Investors. With this purchase plus the Northsight Corporate Center, a 136,000-SF multi-tenant, Class A office building purchased in 2015, Wentworth now owns ±774,717 SF of office space in the North Scottsdale submarket. /// “We feel like North Scottsdale is an optimal location and both the recent acquisition and Northsight were opportunities for us to acquire great office projects that we could renovate,” says Jim Wentworth Jr., Principal with Wentworth.

The portfolio of five properties that Wentworth purchased in June are all located in Perimeter Center and include Perimeter Gateway I, II, III and V, and Terra Verde.

Wentworth will make major improvements to the Perimeter Gateway project including the addition of two parking structures that will bring the overall parking ratio for Perimeter Gateway I, II and V to 6/1,000 SF. /// Furthermore, they are going to remodel the lobbies and common areas in Perimeter Gateway I, II and V and add a café, tenant lounge and fitness center in Perimeter Gateway I that will be available for tenants of all three buildings. /// In addition, Wentworth plans to convert ±162,000 SF of space into new spec suites throughout the portfolio.

The conversion includes two or three new spec suites in each of the five office buildings. Plans for the new spec suites will transform the vacant or shell space into creative office spaces with open ceilings and modern finishes.

14

SPOTLIGHT

Deal

Wentworth understands that being a developer today means being able to look toward tomorrow.

Wentworth is focused on developing new properties or redeveloping existing properties that transform their environment, connect with their users and inspire the community.

From million square foot industrial warehouses to creative office space, Wentworth has developed a variety of projects.

In 2015, they successfully completed two build-to-suit projects at Discovery Business Campus (Discovery) in Tempe, a 237,000-SF operation center for Shutterfly and phase one of a regional operations center for Northern Trust, a 150,000SF Class A office building.

Discovery is a former semiconductor campus at Loop 101 and Elliot Road that Wentworth purchased in 2011 and has transformed into a modern, 1.9 million-SF, 135-acre mixed-use, multitenant business park. /// In 2015, they also built a 659,618-SF bulk distribution facility on 42 acres at 10 West Industrial, an 80-acre masterplanned industrial business park at 59th Avenue and Van Buren Street in Phoenix with development partner, Crow Holdings. /// “We believe that the phase one building at 10 West Logistics Center is the finest building ever built in the Southwest Valley,” Wentworth says. New York Life agreed and purchased the building in May 2016. Wentworth and Crow have retained the phase two parcel with plans to do a ±568,340-SF spec distribution warehouse or build-to-suit facility in the business park.

WENTWORTH and Northwood Investors purchased the portfolio that included five office properties in North Scottsdale and plans to start renovations and the addition of two new parking structures this year.

Wentworth currently owns five million SF of commercial assets including properties in Oregon, California and Nevada that are part of the company’s newest venture, a self-storage division.

Locally, Wentworth owns four industrial projects, 10 West, Interstate Commerce, West 80 and Airport I-10, a former sand and gravel facility they redeveloped into a state-of-the-art, five-building industrial project. /// In addition to the North Scottsdale and Discovery office projects, the company owns two other office projects in Tempe, The Alameda and 1515 Corporate Center, a downtown Phoenix office building and two retail properties at Discovery.

WENTWORTH’s 237,000-SF operations center for Shutterfly at Discovery Business Campus was awarded NAIOP-AZ 2016 Industrial Build-to-Suit of the Year Award.

15

The Big

CONNECTION

Brad Goff, ARA New mark

THE GREAT ARRANGEMENT:

AR A & NEW M A R K

N

o one would mistake commercial real estate veteran Brad Goff, Principal Broker and Founding Partner of the Phoenix office of Apartment Realty Advisor (ARA), of incorrectly doing his math when he talks about the firm’s recent acquisition by global industry leader, Newmark Grubb Knight Frank. /// “This transaction has really been 2+2=6,” Goff says. “This has been a great fit for us to achieve a large global and national platform and also for Newmark to become one

of the largest multifamily players very quickly.” /// Coming from Insignia/ESG and Trammell Crow Company, Goff began leading ARA’s Phoenix office in 2004, one of 26 nationally within the brand. So far, he’s already contributed a transaction volume of 40,000 units and over $3.5 billion over 12 years. In totality, ARA, the largest full-service investment advisory brokerage firm in the nation that focuses exclusively on the multi-housing industry, had an annual production volume of $14 billion in sales in 2015. /// “We had all of the major national markets in the multifamily space, but we really

EVOLUTION TOWARD ACQUISITION

16

As the company grew rapidly in its geography, scale and scope, Goff and the other 15 broker owners from ARA’s other locations looked at areas in which they could gain strategic leverage through a possible tie-up with a global player. /// “Each ownership group was looking into being acquired by one company,” he says. “Newmark has a strong east coast presence, especially in office and retail, but they had no multifamily platform, so it was a great arrangement.” /// Because of the unique ownership design at ARA, the process of Newark acquiring ARA was not a deal that happened over night. “We had to negotiate each office and stagger them over time. The Phoenix location was completed in January of 2015.”

wanted a broader platform in which we could cross-pollinate nationally and globally between office, retail, investment sales and land,” Goff says. /// The ARA story began in the southeast during the early 2000s capturing market share in brokerage, financing and capital sourcing for multifamily. /// “We started in Atlanta, the Carolinas and Florida, and then expanded westward into Denver, Dallas, Houston, Austin and then Phoenix,” he says. “From there we have moved into Northern and Southern California, Salt Lake, Seattle, Portland and Las Vegas.”

ARA NEWMARK Newmark Grubb Knight Frank is one of the world’s leading commercial real estate advisory firms with 12,800 professionals in more than 370 offices on six continents. While on paper the combination may seem like a no-brainer, ARA owners were not entirely without reservations. /// “One of the biggest concerns we had with any merger was losing our culture,” Goff says. “Our teams have no internal competition; we have teams working on 10-100 units, 100-150 units and 150+ units. We are friends and partners, a close-knit team that wants to do the most business in the best possible way.” /// Thus far, Goff sees Newmark as having many cultural similarities as ARA and despite some changes in the process, he has seen very few, to zero negatives.

The Big

“We had all of the major national markets in the multifamily space, but we really wanted a broader platform to cross-pollinate nationally & globally between office, retail, investment sales & land.”

– B R A D G O F F, A R A N E W M A R K

MARKET SNAPSHOT ARA has caught the wave in multifamily resurgence over the last several years in Phoenix. “The market is very robust.

Over the last 18 months we have seen growth transcend all multifamily segments – Class A, B and C, as well as all geographic locations,” he says. /// For ARA, this evolution has provided great opportunities for investors, particularly in the West Valley where there is a boom and a lot of multifamily particularly on the Interstate-10 corridor. /// Even more interesting, ARA Newmark has found an ideal niche in the Class B and C space represented by older multifamily properties. “These are vintage properties where value-add buyers can elevate the renters’ experience through upgrading the units,” Goff says.

CONNECTION

1987. New York Life Insurance sold Cabrillo and Santa Fe for $62.5 million to San Francisco-based Acacia Capital. /// As for new development, Goff points to Scottsdale and Tempe as markets where the urban higher-density model is clearly still very successful. “I do not see over-building as an issue in Scottsdale because supply is still meeting demand,” he says. “In Tempe there may be some short-term absorption issues, but the demand side is very strong.” /// On a final trend note, he addresses the increasing rental and home prices as a potential pivot point for the return of the condo market to Phoenix. “Condos have been a four-letter-word since the downturn,” Goff says. “Now, if single-family prices increase by 15 percent or more, there will be a lane for condos to return, as renters wanting to buy will need a stepping stone before they can own a single-family home.” /// With the ARA Phoenix office now part of the Newmark family, Goff can continue to focus on building the brand and servicing clients.

“We are proud of our market share expansion over the last several years,” he says. “We look forward to expanding our teams and capturing market share, doing it in the right way — that is what it is all about for us.” /// Now that is certainly an equation that adds up and equals success.

DEALS, DEALS, DEALS!

Two of ARA’s deals most recently representative of this trend are Gateway on Gilbert, a Mesa project of 432 units built in 1985 and sold by San Francisco-based Hamilton Zanze & Co. to Denver-based Capital Real Estate for $42.7 million; and Cabrillo 2016 and Casa Santa Fe 2016, two buildings totaling 486 units and located in Scottsdale were built in

17

WATCH

Company-toCompany-to-

In 1854,

the Spanish people named the city of Las Vegas, which translates to “The Meadows.� Fast-forward centuries later, a bank was named Meadows Bank after opening in Las Vegas. Since then, it has opened up three more branches there and more recently, one location in another dry heat state, Arizona.

18 46

S

WATCH

Company-toCompany-to-

ince ince the the Phoenix Phoenix branch branch opened opened on on Jan. Jan. 7, 7, 2016, 2016, itit has has already already gained gained momentum momentum and and locked locked in in some some major major deals deals including including aa credit credit facility facility with with aa credit credit line line of of $300,000 $300,000 and and several several depository depository accounts for Grant Woods’ law firm accounts for Grant Woods’ law firm on on June June16.

16.

Grant Grant Woods Woods has has been been aa trial trial attorney attorney in in the the state state for for more more than than 30 30years, years, was was the the first firstCongressional CongressionalChief Chiefof ofStaff Stafffor forSen. Sen.John JohnMcCain, McCain,and andserved servedas as the theArizona ArizonaAttorney AttorneyGeneral Generalfrom from1991-1999.

1991-1999./// ///The Thetransaction transactionwith withMeadows Meadows Bank Interest on on Lawyer Trust Account (IOLTA) where the Bank involved involvedsetting settingupupanan Interest Lawyer Trust Account (IOLTA) where incurred interest will will be directed to the State Bar of of Arizona the incurred interest be directed to the State Bar Arizonatotobebeallotted allottedinto into positive positive programs programs within withinthe theArizona ArizonaFoundation Foundationfor forLegal LegalServices Servicesand andEducation.

Education. /// “I’ve known Dave personally and professionally for several decades, /// “I’ve known Dave personally and professionally for several decades, so so II have have complete complete confidence confidence in in him. him. And And Meadows Meadows Bank Bank runs runs aa first-class first-class operation, operation, so so the the combination combination of of how how impressive impressive the the bank bank isis along along with with Dave’s Dave’s expertise expertise isis why why II chose chose them,” them,” Woods Woodssays. says./// ///In Inaddition additionto tothe thebank bankrelationship, relationship,Woods Woodshas hasaccepted acceptedaaposition position on on the the Meadows Meadows Bank Bank Advisory Advisory Board.

Board. /// /// “Between “Between their their management management team, team, Board Board of of Directors Directorsand andinvestors, investors,it’s it’saapretty prettydiverse diversegroup,” group,” he hesays. says.Arizona Arizonaisissuch suchaafascinating fascinating place place to to do dobusiness; business;however, however,we wedo dohave haveaalot lotof ofups upsand anddowns downsso soyou youneed needaabank bank that thatisisfinancially financiallystrong strong––but butalso alsonimble nimbleand andentrepreneurial.” entrepreneurial.”/// ///Led Ledby byregional regional president president Dave Dave Matthews, Matthews, who who brings brings 30 30 years years of of experience experiencein inbanking bankingto tothe the table, the medium-size business bank is not afraid to stand tall in the midst table, the medium-size business bank is not afraid to stand tall in the midst of of all all the the big big name name banks banks in in the the Camelback Camelback Corridor.

Corridor. /// /// “We “We stand stand out out by by having having aa great great team team — — one one that’s that’s experienced experienced and andreally reallyknows knowsthe the Phoenix Phoenix market. market. That’s That’s what’s what’s really really going going to to get get us us in in the the door door of of some somecompanies companieswe wewould wouldnot nothave haveotherwise otherwisebeen beenable ableto tocall callon,” on,” Matthews Matthews says. says. /// /// Not Not to to mention, mention, Meadows Meadows Bank Bankisisthe the2nd 2nd largest largest Small Small Business Business Administration Administration (SBA) (SBA) 504 504 lender lender in in Nevada Nevadaand andhas hasSBA SBA7(A) 7(A)lenders lenderslocated locatedin insix sixstates statesin inthe the Southwest. /// This small-business entrepreneur environment Southwest. /// This small-business entrepreneur environment is isaadirect directgoal goalof ofMeadows MeadowsBank Bankas asits itsown ownbeginnings beginningswere weredue due to to having having high-profile high-profile founding founding directors directors and and investors, investors, including including American Americanprofessional professionaltennis tennisplayer player(retired) (retired)Andre AndreAgassi, Agassi,the theFertitta Fertitta brothers, brothers, who whoare areowners ownersof ofZuffa ZuffaLLC, LLC,the theentity entitythat thatruns runsthe theUltimate Ultimate Fighting FightingChampionship Championship(UFC), (UFC),Bill BillBullard, Bullard,CEO CEOof ofGordon GordonBiersch BierschBrewing Brewing Company, Company, and and Jim Jim King, King,CFO CFOand andPrincipal Principalof ofR&R R&RPartners Partners––just justto toname nameaa few. /// And, it definitely required a strong team of masterminds to get Meadows few. /// And, it definitely required a strong team of masterminds to get Meadows Bank running during duringthe theGreat GreatRecession.

Recession./// /// “Some could argue it Bank up up and running “Some could argue thatthat it was was a tough time to start a bank [in 2008], but they were really on the other side of a tough time to start a bank [in 2008], but they were really on the of the the curve curve because because they they ended ended up up obtaining obtainingsome someemployees employeesand anddeals dealsfrom fromthe thesurrounding surrounding companies companies that that had had been been more more exposed exposed to to the the problemsat problemsat that that time time in in Las Las Vegas.”

Vegas.” /// /// Today, Today, the the total total amount amount from from all all its its branches branchesexceeds exceeds100 100employees, employees,and andMeadows MeadowsBank Bankgrew grewfrom from $34 $34million millionin in2008 2008to to$658 $658million millionas asof ofMay May2016.

2016./// ///

So, why pick another desert community to open up the next branch?

“We “Wesaw sawaalot lotof ofroom roomfor forexpansion expansionand andgrowth growthwith withmany manyopportunities opportunitiesin inservice serviceindustry, industry,wholesale/distribution wholesale/distribution and construction.

We’ve only got a handful of Fortune 500 companies, so the majority and construction. We’ve only got a handful of Fortune 500 companies, so the majority are are smallsmall- to to medium-size medium-size businesses and that’s what Meadows Bank really likes,” he says.

“It just felt like a natural transition.” businesses and that’s what Meadows Bank really likes,” he says. “It just felt like a natural transition.”/// /// Its ItsSBA SBA team team was was already already in in place place in in the the Valley.

Valley. The The Arizona Arizona branch branch mainly mainly takes takes on on deals deals of of up up to to $10 $10 million, million, but but will will consider consider larger larger deals deals by by collaborating collaborating with with other other banks. banks. /// /// The The third third generation generation University University of of Washington Washington Husky, Husky, Matthews, Matthews, jumped jumped into into the the banking banking world world at at the the age age 19 19 and, and, four four years years later, later, was was fortunate fortunate to to be be chosen chosen for for aa management management training training program program in in Seattle, Seattle, Wash.

Wash. at at Rainier Rainier Bank, Bank,which whichlater laterbecome becomeBank Bankof ofAmerica.

America.He Hespent spentaacouple coupleof ofyears yearsin incentral centralCalifornia California at atan anLPO LPOfor forRainier, Rainier,before beforemoving movingback backto toSeattle Seattleto tojoin joinaacommercial commercialloan loangroup. group.

Eventually, he moved to Arizona in 1988 to work for Arizona Bank (presently Eventually, he moved to Arizona in 1988 to work for Arizona Bank (presently Bank Bank of of America) America) on on the the commercial commercial side side and and hasn’t hasn’t looked looked back back since. since. /// /// “I “I personally personally like like aa complex complex transaction transaction that’s that’s aa big big challenge challenge because because that’s that’s where where II can can hopefully hopefully add add some some value value to to the the client client and and apply applymy myexperience,” experience,” Matthews Matthewssays. says. ©©Copyright Copyright2016 2016by byMP MPMedia, Media,LLC LLC

19 21

Company

PROFILE

SINCE 1972,

20

the Boyer Company has been one of the biggest names in full-service real estate development for the medical, office, retail and industrial worlds. With over 275 projects totaling 34 million square feet to their name – including 15 in Arizona of almost one million SF – its impact can be seen across nearly half of the United States aside from its home state, Utah. /// “We’ve done a lot of development out of our main Salt Lake City corporate office, but we felt like Phoenix is a place where we’d really like to enhance and increase our presence,” says President and CEO Jake Boyer. “It’s a larger market than the Salt Lake market, and a lot of the corporate tenants coming off of the coasts are looking at both markets to decide which would be a good place to land.

We’ve already seen some of the tenants who were looking in Arizona land in Salt Lake and vice-versa.” /// Founded by H. Roger Boyer, the company’s philosophy has always been to create long-term value by building, owning and managing their own projects. So far, it’s been working. Roger Boyer has since passed down the titles of President and CEO to Jake, taking the Chairman role for himself, and the family business has never been stronger. /// The company’s various completed projects – which also include retail and government spaces – bring its portfolio up to right around the $2.5 billion mark, including roughly $1 billion in current and ongoing projects over the last five years. /// Since adding the title of CEO in 2011 to the President placard he’d received five years prior, the younger Boyer has done nothing but expand the business.

Even before taking over the company, Boyer proved his genius as the Chairman of the Salt Lake Chamber of Commerce after earning his Master of Science in Real Estate Development from Massachusetts Institute of Technology (MIT). /// With a handful of major projects going on in Arizona over the next several months, Boyer and Adrian Evarkiou, the company’s Arizona representative since establishing a full-time office here last year, are sure to be putting their combined years of real estate wisdom to work as they look to expand their footprint in the Valley.

Company

PROFILE

RIO 2100

22

The company’s latest flagship development is the Rio 2100 office portion of the complex near Tempe Marketplace. After purchasing over seven acres of land in May of this year, with the ability to purchase more land for additional office buildings, the new 100,000-SF complex is already set to open at the beginning of 2017. Although it may seem like a quick turnaround for some development firms, Boyer Company likes to keep things on a tight schedule. For that matter, the company even started grading the land before they officially owned it. /// “We are moving quickly and are very excited about the project,” Evarkiou says. “Tempe’s been the epicenter of new developments happening in the Valley, and it’s become an incredible area that we are really looking forward to delivering buildings into.” /// The Rio 2100 sits next to two freeways (Loop 101 and Loop 202), and with the business park being elevated, it provides great exposure for tenants locating at the site. Combine that with the park’s proximity to the luxuries of Tempe Marketplace, and the two complexes could conceivably hold everything a resident could need – from employment to entertainment. /// “There are already two hotels and one office building under construction and future multifamily housing planned,” Evarkiou says of the current layout.

“Rio 2100 is not your typical mixed-use business park. With a direct connection to the mall, which is adjacent to the park, you have all the walkable amenities – especially with all of the restaurants directly next door. Our goal is to make it a fourbuilding office park.”

MORE AZ PROJECTS While still working on the development of Rio 2100, Evarkiou is also handling the $4 million, 57,000-SF project known as Freshly Warehouse in Phoenix that is 100-percent leased, as well as the brand new 32,000-SF Gateway Academy School which was turned around to open this month after being purchased last December for $6.15-million.

Among Boyer Company’s other Arizona projects, the most noteworthy is the recently completed massive Phoenix Biomedical Office parking structure in Downtown Phoenix. /// Looking forward, Boyer believes that both of the company’s offices will continue to see their respective booms in growth.

With so many high-dollar companies moving out of cities like New York and Los Angeles, places like Utah and the Valley could serve as landing points for some major players. /// “It seems like both Phoenix and Salt Lake are very well situated for the future and for receiving the tech market with tech companies that are looking for lower cost structures,” Boyer says. “In San Francisco or Los Angeles, the cost structure is so much higher. They can come to Phoenix and find a better cost structure and a great employment base.”

A P R O U D PA R T N E R

in Tempe’s Robust and Growing Economy

Parkway has long been an active member of the Greater Phoenix business community.

Through our partnerships with GPEC and the ACA, we have been pleased to welcome companies like Silicon Valley Bank, Zenefits, ZipRecruiter and Amazon to Tempe, as well as watched the growth of home-grown successes like LifeLock and Limelight.

The future in Arizona has never been brighter, and we are proud to be a part of it.

For information: 602.997.5405

Q&A

Q &A

PATRICK HAYES, STANTEC

“SOMETIMES THE UNIVERSE THUMPS YOU UPSIDE THE HEAD AND SAYS, ‘PAY ATTENTION.’” That’s how Patrick Hayes, award-winning Valley of the Sun architect and entrepreneur, describes the life-changing epiphany that led him to seek out new opportunities in his successful career path — from 28 years on his own and running a well-respected firm, to joining the 22,000-person global firm, Stantec. We asked him to share his story.

WHAT HAPPENED IN YOUR PERSONAL LIFE THAT CHANGED YOUR PERSPECTIVE ABOUT THE NEXT CHAPTER IN YOUR CAREER? Q:

A: The catalyst began years ago, and I didn’t even

24

know it. A knee injury while playing basketball in college caused me to spend a couple years in rehab learning to walk again. Over the years, it became worse and about 10 years ago forced a total knee replacement. Apparently, an infection resulted from a remaining surgical staple that slowly, but exponentially deteriorated the cartilage throughout the rest of my body. No one knew what was going on until it caught up with me and created a compounded effect. It took me down in a short amount of time and resulted in about 18 months (still counting) of recovery. /// I’m in my mid-50s, I’ve had a great career and I was always the right person in the right place at the right time. I didn’t really cultivate many other outside interests because I worked all the time – but don’t get me wrong; I love what I do and those long hours were certainly a labor of love. When you’ve had a significant life event like I did, you start asking bigger questions. What do I reach for? It needs to be something new and compelling.

UCSF Medical Center at Mission Bay, San Francisco

Q&A YOU’VE BEEN A SUCCESSFUL ENTREPRENEUR AND “LONE RANGER” FOR MANY YEARS. WHAT LED YOU TO JOIN A LARGE FIRM? Q:

A: For me it’s about opportunity. I asked myself, “Patrick,

when was the last time you had the ability to ask a respected peer, ‘Hey, am I doing this right? Give me a different perspective.’” I’ve been the high-level decision-maker for a long time — my whole professional career, actually. My belief is that at a much larger firm that shares the same ideals and values, I can test my theories about design and business ethics, dodge new obstacles, and learn from different thinking and talents. I can contribute to a bigger picture and have other people contribute to my thought process, methodologies and design principles.

Q: YOU’VE HAD SEVERAL OPPORTUNITIES

LIKE THIS BEFORE. WHY DID YOU CHOOSE THIS FIRM, THIS JOB? A: My friend and now colleague at Stantec had been

talking to me about opportunities. My firm was a small company with a great reputation and a big portfolio that competed with the big boys in commercial, industrial and medical office buildings, so it wasn’t uncommon for big

companies to court us. But the more we talked, the more I realized the benefits of considering Stantec as my next move. The firm has 400 locations across six continents and a significant commitment to local communities. Their emphasis on understanding clients’ concerns and needs mirrored my way of doing business. More specifically, I was deeply attracted to their new focus on the Western US for commercial architecture. Why? When you have a certain amount of success, you always want to apply that to a bigger picture. You ask yourself, “Am I just in a market that I’m familiar with? What happens if I take it on a bigger market?

How can I speak on a larger stage?” Joining Stantec offers a way to answer these questions.

Q: WHAT DOES YOUR FUTURE LOOK LIKE? A: My core market has always been commercial design and

Stantec already has an exciting portfolio in that space, but what I’m really looking forward to is expanding into new markets — hospitals, education and other markets where Stantec delivers thoughtful, meaningful and memorable design. I not only have the chance to expand markets, but also marketplace. I can help designers in San Francisco, Vancouver or rural Montana and they can also help me. For me, this is really exciting and a phenomenal opportunity professionally. How could I not take the risk to find greater professional satisfaction? I just had to find the right venue to provide me with the type of opportunity I wanted – I believe I’ve found that in Stantec.

MULTIFAMILY GROW

Connect

Flourish

A bee colony works in unison toward a single, focused goal. Colliers International’s Multifamily advisory business nurtures clients the same way. Whether you’re selling a single asset or a national portfolio, our combined resources — harvested globally and harnessed locally—help you to achieve your acquisition, disposition and financing objectives. Our strategically located Multifamily advisors are connected by purpose, focus and the desire to help our clients make the sweetest deals.

colliers.com/greaterphoenix

Talk of the

TOWN - CONSTRUCTION UPDATE WHO’S THE DISTINCTIVE COMPANY

MILTON ELMER, McShane Construction Company

behind recent projects such as Desert Gateway, a spec industrial development for Duke Griffin Opportunities, TASC, Inc., which is transforming a TV broadcasting building, and the game-changing Veterans Affairs Outpatient Clinic in Gilbert? /// It’s McShane Construction Company, and its southwestern regional office in Phoenix has been turning visions into realities since 2000. /// Vice President of the Southwest office, Milton Elmer oversees the complex construction within the industrial, office, health care and multifamily sectors. With over 45 years of experience in the industry, he has accumulated countless quality projects with sustainability, always keeping in mind what the clients’ needs are.

Signature Project:

SOUTHEAST VA CLINIC

“Sustainable construction is about cutting costs & increasing profits for our clients, providing a healthier environment for people to live & work, & protecting our planet. We keep these fundamentals at the forefront of every project we do.”

Product Type: VA Outpatient Clinic Client: U.S. Dept. of Veterans Affairs Location: 3285 S. Val Vista Dr., Gilbert Architect: Rees Associates, Inc.

Sustainable features: LEED-Silver, energy-efficient HVAC system, water-efficient irrigation, natural light optimization,

Square Footage: 71,259

& recycled materials

Completion Date: 2Q 2016

Project Name:

DESERT GATEWAY

“The Desert Gateway site had never been developed & was extremely rocky. Instead of shipping off large quantities of rocks to a landfill, we integrated rock back into the site. It was cost-efficient & allowed the reuse of native materials.”

Product Type: Spec Industrial Client: Duke Griffin Opportunities LLC Location: 909 W. Pinnacle Peak Rd., Phoenix Architect: Cawley Architects Square Footage: 172,000

2 Class A spec buildings with a 32’ clear height, 9 drive-in doors, 16 overhead dock doors, generous skylights, ESFR sprinkler systems & a sizeable shared truck court

Completion Date: October 2016

Project Name:

TASC

“We repurposed & expanded a broadcasting station originally built in the 1970s & completely transformed it into a stateof-the-art center. The entire building envelop was upgraded & enhanced to make it more efficient for our client.”

Product Type: Addition and

26

Interior Build-Out Client: TASC, Inc. Location: 2234 N. 7th St., Phoenix Architect: Oryx Architecture Square Footage: 45,000 Completion Date: July 2016

Transformation of CBS 5 KPHO into a corporate HQ, forensic drug testing lab, outpatient substance abuse & mental health treatment facility © Copyright 2016 by MP Media, LLC

only those who will risk going too far can possibly find out how far one can go.

Thomas Stearns Eliot

For over 30 years, we’ve scaled the heights and weathered the valleys to craft Phoenix’ most exciting retail destinations.

www.pedersoninc.com | 602.265.2888

UPDATE

Market

T H E DY N A M I C D U O

Steve Gebing & Cliff David

28

It has been over a decade

business plan together with very

during the month of May. The deals,

limited guidance,” David says. “It

comprising of over 1,700 units total,

was more challenging on the front

add to an already impressive market

end, but more rewarding on the back

share participation of 24 percent

since the two lifelong friends, Steve

end because we built it ourselves.”

for their team in the Phoenix MSA

Gebing and Cliff David teamed up

/// The dynamic duo, faithfully with

multifamily 100+ unit space year-

in their partnership to dominate

industry leader Marcus & Millichap

to-date. /// “This is a relationship

the

and

Greater

Phoenix

multifamily

Property

business so we have always taken

marketplace for properties exceeding

its

Institutional

Advisors (IPA) division, is continuing

a long-term approach,” David says.

100 units. /// “Steve and I did not go

its run of success and excellence

“We know it’s not about this year or

through the traditional process; we

with the closure of seven multifamily

next year, but 10 and 20 years out.”

literally started and executed our

transactions in one four-day period

UPDATE

Market

T H E B L U E P R I NT Interestingly, the seven transactions consisting of three individual property sales and a four-property portfolio are representative not just of the current multifamily marketplace, but also of the strategic blueprint that the pair implemented from the beginning. /// “The market as a whole continues to evolve in terms of client expectations,” Gebing says. “We have always focused on market expertise and a granular approach to articulating the differences in asset classes. Now there are far higher expectations on the ongoing advisory services a broker provides. In spite of shifting market dynamics, we are not changing our business plan; we will continue to make a concentrated effort to know the intricacies of the market better than our competition.

The end goal is simple – put our clients in a position to make informed business decisions.” /// In addition to delivering this advisory role to clients, the duo asserts that the success achieved is a function of the talented team surrounding them. Together, this team coupled with a partnership built on a personal childhood friendship has allowed significant strides forward.

C U R R E NT M A R K E T S N A P S H OT Looking at the team’s most recent deal flow, broader trends can be identified in the multifamily sector. “The seven properties represent all asset classes and a total crosssection of the market from a buyer profile perspective,” David says. /// Through the remainder of 2016, the team sees a stability in the growth pattern of the multifamily space. “Transaction velocity will stay robust and demand for multifamily remains strong,” David says. /// Moreover, the Phoenix MSA ranks in the top five or 10 MSA’s nationally in nearly every noteworthy statistic – the most important being job creation. “The Phoenix market continues to mature, creating better jobs now than in years past in sectors with higher wages and more disposable income,” Gebing says. /// David also mentions that liquidity and healthy capital markets will spur continued growth, which also augments the Greater Phoenix favorability factor for investors looking to acquire. /// However, some possible headwinds include expanding competition in the core market segment with concentrated supply coupled with a labor shortage in the construction sector, directly impacting construction costs and delivery timelines.

“In spite of shifting market dynamics, we are not changing our business plan; we will continue to make a concentrated effort to know the intricacies of the market better than our competition. The end goal is simple – put our clients in a position to make informed business decisions.”

– STEV E G E B I N G

T H E S P E CTA C U L A R S E V E N Penny Lane, Sandal Ridge, Las Vistas at Papago Park, and Desert Wind represent the four property portfolio, which sold for just over $41 million, while the Arboretum at South Mountain, Monte Viejo, and Redwood Place were all individual property sales. /// The locales of the properties cover the gamut from Mesa, to Ahwatukee, to North and East Phoenix. Digging deeper, the transaction in totality demonstrates the strength not only of the Class A space, but also Class B and Class C. /// “Class B and C are absolutely thriving in the current environment,” David says. “Class A is still strong, but we are seeing a bit of an operational slowdown within the core product segment in certain submarkets, particularly where there are concentrated development efforts.” /// As for their future pipeline, Gebing and David have a breadth of opportunities driven by their core vision of client-centric relationship building and actionable insight. /// “Our results today are based on the groundwork we put in place 10 years ago,” Gebing says.

Moving forward, the duo will continue to enhance their client services to accommodate the ever-increasing desire for broker expertise simply beyond the transaction. /// “Market dynamics change. Capital markets change. People change. But we believe that the idea of extraordinary and the skill set that makes an investment broker extraordinary do not. We will continue to study our craft day-in and day-out relentlessly in pursuit of providing our clients a competitive advantage in their daily business operations,” he says.

29

MULTIFAMILY

Sector Update:

After an extended run of positive growth, momentum continues to build in the Greater Phoenix multifamily market. Renter demand for units remains strong, driving vacancy rates lower even as developers bring projects to the market. /// This demand is being fueled by impressive employment growth, which is off to a solid start at mid-year 2016.

One of the primary catalysts for employment growth is that nearly all sectors of the economy are expanding. ///Apartment rents are rising as vacancy tightens and new, more expensive units are being delivered. Asking rents have been trending higher since 2012, but the pace of gains has been accelerating over the past 24 months. In the first quarter alone, multifamily asking rents grew by more than three percent, setting the stage for what is forecast to be the strongest year of rent growth in more than a decade.

EMPLOYMENT // Renter demand for multifamily units is being driven by healthy employment growth. Employers filled approximately 50,000 positions per year from 20122014. The pace of growth accelerated in 2015, as 72,000 jobs were added. This was the strongest single year of local job gains in Greater Phoenix since 2005. /// Employment growth has continued into 2016. Over the 12-month period ending April 2016, employers have expanded payrolls by more than 3.5 percent. Looking ahead, the construction sector will likely be a strong source of expansion as the local housing market rebounds. While construction employment has been positive in each of the past five years, the market has recovered only 25 percent of the construction jobs lost during the downturn.

VACANCY // The local vacancy rate has been one of the clearest signs of improvement in the local market. Vacancy has trended lower in each of the past five years, with an average decline of more than 90 basis points per year. The rate has now retreated to just 50 basis points lower than one year ago and the lowest local vacancy figure in 20 years. /// Healthy operating conditions are being recorded throughout the Valley. Some of the lowest vacancy submarkets include South Paradise Valley in the northeast, Goodyear/Avondale to the west and the Ahwatukee Foothills submarket in the southeast. Vacancy improvements are also being recorded in areas where developers have been bringing new units online. Despite the competition from new units in South Scottsdale, North Tempe and Chandler, vacancy in each of these submarkets has declined over the past 12 months.

30

RENTS // Tight vacancy conditions are spurring rent growth. Asking rents expanded by more than three percent in the first quarter alone, and during the past 12 months, average rents have spiked by 7.4 percent across Greater Phoenix. ///

Every submarket in Greater Phoenix has posted a rent rise of at least three percent during the past year, and nearly 90 percent of the submarkets in the Valley have recorded yearover-year rent increases of more than five percent.

INVESTMENT MARKET // The local investment market has gotten off to a solid start in 2016. Transaction activity is up approximately 35 percent year-to-date. Investors are responding to the market-wide improvement in operating performance metrics, sparking strong buyer demand. Prices are pushing higher and cap rates have compressed slightly.

The median price for transactions at this point in 2016 is more than$110,000 per unit, up from a median price of $78,000 per unit in 2015. /// The transaction mix is also changing. Deals are generally larger; the median transaction size in 2015 was approximately $19 million; thus far in 2016, the median deal size has topped $27 million. /// An example of these prevailing market trends is the 532-unit Desert Gardens complex, which is currently listed for sale and located in Glendale across the street from Luke Air Force Base. When Desert Gardens sells, it will be one of the 10 largest complexes (in terms of number of units) to trade in 2016. Since vacancy peaked in 2013, the rate at Desert Gardens has been trimmed to less than five percent and rents continue to escalate at a healthy pace.

OUTLOOK // The robust market conditions fueling the local multifamily market are forecast to continue through the rest of this year. Employers continue to expand, increasing renter demand for apartment units.

With demand strong, vacancy will remain in the low- to mid-five percent range, and rents will advance in response to the tight vacancy conditions. Investors show little signs of slowing down, with transaction activity continuing at a rapid pace and prices pushing higher. While the local economic outlook appears favorable, there have been some recent signs of a slowing pace of growth at the national level. This phenomenon could spill over into the local market. This presents the primary threat to the multifamily market, but is currently only a minor concern. Š Copyright 2016 by MP Media, LLC

Leading Phoenix in Multihousing Real Estate Solutions ARA, A Newmark Company, is the largest full-service investment advisory brokerage firm in the nation that focuses exclusively on the multihousing industry. ARA Newmark is comprised of the country’s top investment professionals who leverage a unique and fully integrated cooperative business platform of shared information, relationships, and technology-driven solutions.

ARA NEWMARK IS DISTINGUISHED BY ONE THING – OUR RELATIONSHIPS DELIVER RESULTS. MEET ARA NEWMARK PHOENIX.

Brad Goff

Exec. Managing Director goff@aranewmark.com 602-852-3781

Ryan Ash

Senior Managing Director ryan.ash@aranewmark.com 602-852-3784

Karl Abert

Managing Director kabert@ngkf.com 602-952-3888

Mike Woodrick

Director mwoodrick@aranewmark.com 602-852-3789

Chris Canter

Associate Director ccanter@aranewmark.com 602-852-3792

A GLOBAL PLATFORM Newmark Grubb Knight Frank is one of the world’s leading commercial real estate advisory firms.

Leasing Advisory  Global Corporate Services  Investment Sales and Capital Markets  Multihousing  Consulting Program and Project Management  Property and Facilities Management  Valuation and Advisory Services

SAVE THE DATE 10.20.16 *Date subject to change.

Fall Forum 2016:

LEADERS IMPACTING ARIZONA’S ECONOMY

SPEAKERS

Sen. John McCain

Anthony LeBlanc

U.S. Senator (AZ)

President, CEO, Chairman & Chief Co-Owner & Alternate Executive Officer Governor of the for Troon Golf Arizona Coyotes

Dana Garmany

Jerry Colangelo

Sharon Harper

Chris Camacho

JDM Partners, served as Managing General Partner of Arizona Diamondbacks

President, CEO & Co-Founder of Plaza Companies

President & CEO of Greater Phoenix Economic Council

THURSDAY, OCTOBER 20TH* /// OMNI SCOTTSDALE RESORT & SPA AT MONTELUCIA

TICKET & TABLES

FORUM SCHEDULE Registration /// 3:30pm Panel /// 4:30 - 6pm Networking & Cocktails /// 6 - 7pm

FOR SPONSORSHIP OPPORTUNITIES:

602.955.2899 2920 E. CAMELBACK RD., SUITE 228 PHOENIX, AZ 85016

www.cem-az.com

START-UP

New

Learning Management System

“What we’ve designed is something completely different than anything multifamily has ever seen before...”

-

heather jones , grow

If learning is like building, then each lesson is one more brick in the structure, adding up to a stable knowledge base. And just as buildings are constructed one piece at a time, so are the lessons of GROW Learning Management System, an innovative, customizable program built specifically for multifamily firms. Not to mention, its education lessons are shaped by a veteran of the industry. /// “What we’ve designed is something completely different than anything multifamily has ever seen before — our classes are fun, animated, mobile and convenient,” says GROW President Heather Jones, who founded the company in 2015 upon spending the majority of her career in multifamily, which started in the early ‘90s. /// GROW breaks complex lessons into bite-sized chunks, cleverly named “tidbits,” transforming a dull three-hour lesson that might otherwise be as forgettable as it is tedious, into multiple 10-minute or less mini lessons that better cement ideas in place. /// Jones’ insights into the learning needs of this industry were crystalized through experience, as her own job background in the multifamily industry led her to working in nearly every onsite/corporate position and getting familiarized with every angle. /// “I’ve managed property all over the United States, from Class A to Class D, and in every type of submarket,” she says.

TECH/ED Along the way, it was hard not to notice that technologicallyspeaking, the sector’s operations always seemed a little behind the times. /// “Multifamily has always traditionally been about five years behind the rest of every other industry as far as technology goes.” /// Education is an integral part of success for the multifamily space, but most training programs look antiquated in our age of accessible mobile learning. Very few companies today offer adaptable e-learning that can be updated easily. Jones understood it was time for something new.

14 © Copyright 2016 by MP Media, LLC

START-UP

New

CUSTOMIZATION As mentioned, what sets GROW apart from similar platforms is being fully customizable to a business’ needs, mobile-friendly so an employee can train on their phone even when not in the office, and incorporative of auditory and visual elements of grasping a concept. For example, replacing wordy text blocks with vibrant, memorable animations better aids in retaining information. All of these tactics come together to offer lessons in the form of tidbit training that allows for more flexible learning schedules. /// Businesses can even have entirely new lessons created if needed. And it doesn’t just stop at content. Her team can customize colors, graphics, add multiple banner displays, and adjust the layout to fit the needs of its clients. /// “GROW’s courses are very relevant to the learners that are running our properties today,” Jones says. “Most people onsite or in the office don’t have time to sit down and stare at a screen while outdated info is being drilled into their heads. When I was a Regional Manager, I’d have this long list of classes I needed to take but could never set aside several hours to complete them. With GROW, an associate can easily view a tidbit video while at lunch.” /// She describes an example of a large development company that wanted a specific telephone technique class tailored directly to their unique style. The GROW team helped them create a script, developed the class and instantly the client had a custom-made four-minute class for its employees.

GROW t h

path

The software’s “growth paths” are designed to designate hand-picked lessons that align with business’ needs and lead employees to learning goals, such as onboarding for new employees, or a fast track to a manager role. /// Also, how many other educational platforms can say they provide an intranet for their clients? This training portal can even be used as an internal messaging medium for administrators to connect to all employees. /// “GROW is a tool that companies can use ongoing — not just when starting up or training new employees,” she says, describing how the portal can be turned into a unifying place that reflects the brand culture and feature daily company news. /// GROW is also being marketed to vendors, which is not something the multifamily industry has seen yet. Vendor onboarding and ongoing client training can be deployed seamlessly through the portal. /// The start-up currently has about 30,000 units for which it provides training, and Jones would like to be at 100,000 units and 10 vendors by the end of this year. She also plans to license the classes to companies that have their own learning management system but may not have time to create actual class content. /// “Starting a training company has been a big learning experience. But because I’ve got such a strong operational background in multifamily, I know what the problems are and I can see the big picture of what needs to be done,” Jones says. “We’ll have at least 200 classes on the portal by this time next year, and we’ll never stop creating classes.”

15 © Copyright 2016 by MP Media, LLC

UPDATE

Education

A

fter the passage of Proposition 123, Arizona K-12 schools were granted $3.5 billion to implement new learning tools and tactics to help their students succeed on June 30. However, to Grand Canyon University, there are more ways to improve education aside from monetary support alone, and if any educators need inspiration on programs that work, they can look no further than the Learning Lounge pioneered at GCU. /// President and CEO Brian Mueller, who joined GCU in 2008, envisioned a high school mentoring environment led by college students after discussing academic challenges with the principal of Alhambra High School in Phoenix, which is across the street from the GCU campus. Mueller realized that while the high school experience might be similar for students across many schools, the after school hours looked very different for those in a low-income neighborhood, and the prevailing problem with regards to education is poverty. /// “The problem is poverty. It’s breaking that cycle that represents an opportunity for us, especially as it relates to the immigrant population,” he says. His tool for breaking the cycle of poverty for students in low-income areas is education. /// GCU opened the Learning Lounge at its main campus and invited Alhambra students to bring their questions from class. Slowly, students began to trickle in, and as performance improved among the students, momentum grew quickly. /// At this point, GCU has 1,000 students who have been trained as tutors – or LEADs (learning advocates), as they are called — and hundreds of high school kids are coming in for regular tutoring. Tutoring is either held in small groups or one-on-one, and GCU students are encouraged to forge mentoring relationships with the high school students, many of whom are part of the immigrant population and may not have parents who completed advanced education themselves. /// “What we need to do is embrace immigration like we always have in this country. If you put together a program that changes what happens between 3:00 PM and 8:00 PM so they get the same type of support, you’ll break the cycle,” Mueller says.

10

naiopaz.org

NAIOP’S THOUGHTFUL APPROACH TO PUBLIC POLICY ISSUES HAS HAD A POSITIVE IMPACT ON OUR INDUSTRY AND OUR COMMUNITY. – ANTHONY LYDON, JLL 2016 NAIOP BOARD MEMBER

UPDATE

Education

The aim of the tutoring is not just to help with grades, Mueller explains, but to help the high school students see a different future for themselves – involving college and the ability to pursue their dreams. /// Alhambra High School experienced an increase of over 100 students graduating in one year after the program began, and went from being a D-minus-rated school to close to being a B-rated school. The model has worked out so well that GCU has expanded to welcoming 11 more Phoenix schools, and is in discussion with the Glendale School District to expand even further. /// For some GCU students,

12

In addition to expanding the Learning Lounge to new schools, GCU is expanding its Science, Technology, Engineering and Mathematics (STEM) pathways program for high school students. /// “A student who finishes their sophomore year with a 3.3 GPA or higher can take 32 college credits for free starting the summer before junior year,” Mueller explains.

These credits can be taken either at their high school or at GCU over summer, which means they save an entire year of college classes and expenses, and it enables them to enter any one of GCU’s STEM programs. /// The Learning Lounge has also been opened during the summer and on Saturdays, when they encourage local families to bring in their elementary school children to partake in the tutoring environment. /// The success the program has already achieved led Mueller to create a scholarship for high-achieving high school students who were committed to attending the Learning Lounge. /// In its first night of showcasing the program for charitable donations, GCU raised $700,000 for student scholarships. It was able to award 100 full tuition scholarships to those deserving students who live locally. The goal is to raise enough funds for 800 scholarships to be awarded over the next four years.

tutoring at the Learning Lounge is their part-time job, and for others it counts as service hours as part of a scholarship, and all are encouraged to establish trust and rapport with their younger students. Creating those bridges between people from different backgrounds is not just good for the program, but something practiced daily on the GCU campus. /// “One of the most exciting things about our campus is the socioeconomic diversity.

We get kids from Orange County, Scottsdale, Paradise Valley, etc. but we also get kids from this neighborhood. When all the students study together, it breaks down a lot of barriers,” he says.

BILTMORE LAKES CORPORATE CENTER

Bldg #2920

Bldg #2930

Bldg #2910

Ca

l

l

l

mE

lb

aC

kR

oa

d

Biltmore Lakes Corporate Center is a 80,000 square-foot Multi-Tenant Office Complex for lease on the Beautiful Camelback Corridor.

Suites available from 500 s.f to 9,000 s.f.

Aggressive rental rates with incentives.

For inFormation aBout this property contact:

raymond t. cashen Phone: (602) 393-4447 Email: cashen@att.net

Surrounded by Biltmore Lakes Golf Course, Lake and Mountain views.

2920 E. CamElbaCk Road, SuitE 212

l

PhoEnix, aRizona 85016

l

Fax: (602) 393-4452

l

WEb: CaShEnREalt y.Com

KNOW

Info-to-

TG e n d e f i n e s Tr a n s l a t i o n a l .

“In medicine, that term essentially did not exist 15 years ago.

Our focus is to put genomic information directly into the care stream.”

- DR. JEFFREY TRENT PRESIDENT & RESEARCH DIRECTOR AT TGEN

yo u m ay b e surprised to l e a r n the central hub of innovation in genomic studies is not found on the list of usual suspects: Boston, San Francisco, New York or Chicago – No, you can find it right here in Phoenix, thanks to the Translational Genomics Research Institute (TGen). And it’s about time everyone knows it nationally. /// “I was privileged to be part of the group that brought information from the first human genome,” says Dr. Jeffrey Trent, who first envisioned TGen, and serves as the President and Research Director. “What I was particularly interested in was taking that information and moving it as quickly as we could to direct medical benefits. That’s what the real goal is here: Take a research study on the genomics of our DNA and turn it into a textbook of medicine.”

6 © Copyright 2016 by MP Media, LLC

KNOW

Info-to-

TRANS·LA·TION·AL Anchoring the Phoenix Biomedical Center (PBC) in downtown Phoenix, the 30-acre bioscience research, academic, and clinical campus, TGen, has risen to the pinnacle of the bioscience sphere through its specific emphasis on translational genomics. /// “TGen defines Translational,” Dr. Trent says. “In medicine, that term essentially did not exist 15 years ago. Our focus is to put genomic information directly into the care stream.” /// In addition its home at PBC, the operation in Flagstaff, called TGen North, is in partnership with Northern Arizona University (NAU). “We take genomics and apply it to infectious diseases. Powerful technology is allowing us to understand the microbes that cause disease and help prevent it,” says Dr. Paul Keim, who is a co-founder of TGen North, director of its Pathogen Genomics Division, and Cowden Endowed Chair of Microbiology at NAU. /// Furthermore, a TGen spinoff, Translational Drug Development LLC (TD2), has facilities at the Mayo Clinic Collaborative Research Building in Scottsdale. TGen also maintains a strategic clinical trials alliance with HonorHealth in Scottsdale.

T H E T R U T H A B O U T TG E N First conceived during his tenure as Scientific Director of the National Human Genome Research Institute at the National Institutes of Health, Dr. Trent approached six states with the idea of establishing a nonprofit research center that would fundamentally change medicine. /// “This was about genomics transforming biotech and being a differentiator to basic research,” Dr. Trent says.

“We wanted to focus on getting new treatments into patients’ hands as quickly as possible.” /// From the six options, Arizona turned out to be the winning bidder and not just because Dr. Trent had grown up in Phoenix and earned his Ph.D. at the University of Arizona. “In the end, the decision came down to community engagement.

Where some states had only one source of funding, Arizona offered multiple channels, from government at city and state level, to foundations, businesses and the Indian communities. It was a cooperative initiative,” he says. /// And, the process was speedy.

From the first discussions in February 2002 to just five months later, over $90 million was raised to bring TGen and the International Genomics Consortium (IGC) to Greater Phoenix, in conjunction with other highly respected entities including: The Flinn Foundation, the Virginia G. Piper Charitable Trust, the City of Phoenix, Banner Health, and Salt River Pima-Maricopa Indian Community. /// TGen started in 2002, with temporary offices in © Copyright 2016 by MP Media, LLC

Phoenix and laboratories in Tempe. /// In December 2004, the state-of-the-art TGen headquarters on the new PBC campus opened for business and Dr. Trent’s vision was off and running. “From day one, economic development was not just a consideration but an expectation,” he says. “Arizona embraced our commitment to commercialization in the form of an independent nonprofit biomedical research institute that could work closely with government, industry and academia university partners.”

W

hen I first learned of Dr. Trent’s plans, I became an avid supporter. Dr. Trent realized before anyone else there was an ability to personalize medicine through DNA sequencing. One treatment does not fit all for one type of disease.

— BENNETT DORRANCE BOARD CHAIRMAN AT TGEN & FOUNDING PARTNER AT DMB ASSOCIATES, INC.

7

KNOW

Info-to-

TG E N A R C H I T E C T U R E At the core of TGen is a commitment to translational research medicine, but it is even more about their culture. With an ecosystem coalesced around helping patients with neurological disorders, cancer, and diabetes, TGen is a pioneer in the next generation of scientific genomic tools to treat and cure diseases both rare and banal. /// Dr. Trent and Dr. Keim utilize the enormous power of the genome to develop the cures of tomorrow and realize their potential today across multiple divisions including: Cancer and Cell Biology, Clinical Translational Research Division, Computational Biology, Genetic Basis of Human Disease, Integrated Cancer Genomics, Neurogenomics and Pathogen Genomics – because patients need treatments now. /// The TGen architecture is built on the foundation of commercialization of genomic knowledge and creating real-world technologies, medicines and applications that facilitate better patient outcomes. /// “We have spun off 15 companies in the last 10 years,” Dr. Trent says. “TGen is built on a distributed economic model.”

Funding TGen has been a trio mix of roughly one-third federal support, one-third cooperative partnerships with research, industry and foundations and one-third philanthropy. “Our focus is on the nonprofit space and competitive research grants,” he says. At TGen North, grants are the primary source of funding at 70 percent.

S U P E R CO M P U T E R S With genomic medicine at the cornerstone of TGen’s design, priority No. 1 is gathering and analyzing patient data imbedded in their genetic code. Sequencing is at the heart of what its scientists do and they analyze the three billion base pairs of DNA using “supercomputers.” /// At TGen North, Dr. Keim uses the genome sequencing technology to drive the organization’s efforts in the study of pathogens and disease. /// “We are riding the coattails of genomics [in that sense],” he says. “We use computational tools, generate a sequence and analyze it.” One of the projects in which this methodology is proving particularly useful is the ongoing work with the federal government on the Anthrax bacteria. /// “We worked with the FBI after the U.S. 2001 Anthrax incident,” he says. “The FBI utilized our repository to handle and store the evidence, and have asked us to pursue an Anthrax Bioterrorism Study.”

A P P L I C AT I O N T O R E A L L I F E

8

Across TGen’s footprint, outcomes and results are fundamentally altering the trajectory of health care. At the Phoenix campus, genomic sequencing advancements are paving the way for clinical trials in pancreatic cancer. In the neurogenomics space, the division’s team recently completed the third year of a major concussion protocol study with Riddell and Arizona State University. It led to placing sensors in football helmets to collect and aggregate information after a major hit. Then, researchers can look for biomarkers based on bio samples with emphasis on changes to their genetic composition. This discovery will definitively identify whether a player has experienced a concussion and when it is safe for them to get back in the game. /// One of the most interesting developments from the North campus’ efforts is early detection of Methicillin-resistant Staphylococcus aureus (MRSA). /// “We are taking our genomic technology and applying it to solving major hospital problems,” Dr. Keim says. In the case of MRSA, which are highly antibioticresistant bacteria commonly found in hospital settings, TGen has developed a device that more readily and accurately detects MRSA. “We hope this technology will be adopted worldwide and will help identify and isolate these dangerous and difficult-to-eliminate infections that have come to plague our medical institutions,” he says. /// Both Dr. Trent and Dr. Keim see a bright future ahead – not only for TGen – but also for the patients who ultimately benefit from their research and market offerings. /// For Dr. Trent, the mission is still straightforward. “Version 2.0 of TGen is about genomic medicine entering directly into the care stream of patients with a variety of diseases,” he says. “You are going to see our partnership and implementation of what we do across health care systems as an incredibly important part of our growth and development.”

2

Arizona Executive Magazine got the scoop from Sen. McCain on everything timely, from the new act that will ensure more of the men and women serving our country will receive the retirement benefits they deserve, to how he’s working to keep Arizona communities safe – and what you really want to know – an update on our reputation, I-11 and the next generation.

Q: A s C hairman

of the

S enate C ommittee

on

A rmed F orces ,

how are you

working specifically to improve our military ’ s readiness and strength to defend itself ?

H ow

ha s this impacted the

A rizona

military community ?

I’ve worked tirelessly to provide leadership on the top national security challenges of our time, while exercising rigorous oversight of Pentagon bureaucracy. In just over a year, the Committee has held more than 100 hearings on issues ranging from the fight against ISIL to the Obama Administration’s dangerous nuclear deal with Iran, and has received testimony from our nation’s top military and national security leaders who all believe that the nature and number of the challenges we face around the world are greater than at any time since the end of World War II. /// To address the emerging threats to our national security and the men and women who serve, the Committee worked hard to craft the National Defense Authorization Act (NDAA) for Fiscal Year 2017, which passed the Senate by a bipartisan vote of 85-13 in June. The NDAA is the most significant piece of defense reform legislation passed by the Senate in 30 years, containing major reforms to the Department of Defense that can help our military rise to the challenge of a more dangerous world. The NDAA contains the first major update to Pentagon organization in decades and sweeping reforms to the defense acquisition system necessary to harness American innovation and preserve our military’s technological edge. The legislation also modernizes the military health system to provide military service members, retirees and their families with higher quality care, better access to care, and a better experience of care. /// I am especially proud that this year’s legislation once again enhances Arizona’s remarkable contributions to national security and gives troops, veterans and military families across our state the resources and support they need. The NDAA prevents any premature retirement of the A-10 – many stationed at Davis-Monthan in Tucson – which continues its vital role of protecting American service members in conflicts in the Middle East as well as assisting NATO’s efforts to deter Russian aggression in Eastern Ukraine. The NDAA also prevents the Air Force from following through on its proposal to retire seven EC-130H Compass Call electronic attack fleet airplanes stationed at Davis-Monthan; ensures that Arizona’s businesses continue to manufacture and innovate new weapons systems and defense technologies; provides much-needed funding for military construction projects in Arizona; and enhances border security operations. © Copyright 2016 by MP Media, LLC

3

Sen. McCain with a few of the 17 awards & decorations he has earned

Q: Y ou

have played a key role in

promoting the

A rizona

br and .

C an

you give us an update on what our reputation among the rest of the world is now ?

A: Barry Goldwater once called Arizona “113,400 square miles of heaven that God cut out.” He was right. And through the years, Arizona has turned tourists into loyal, full-time residents. /// Thanks to the selfstarting attitude of our hardworking citizens, Arizona’s reputation as a vacation destination has been transformed.

Today, our state is home to renowned military training grounds for thousands of service members, who enjoy near-perfect, year-round weather conditions to prepare for critical national security missions. Our state’s economy has also continued to recover from the 2008 financial crisis, steadily attracting high-tech businesses and growing good-paying jobs. Arizona’s proximity to Mexico has also made it an important hub for international trade. In 2013, cross-border trade supported more than one-in-five jobs in Arizona – a number that is poised to grow.

Q: W e are in the next pha se of the I nterstate -11 development connecting N ogales and the H oover D am bypa ss bridge near L a s V ega s . H ow will this infr a structure change affect our economic development over all ?

A: I’m very proud that Sen. Flake and I were able to get signed into law measures that will establish the Sonoran Corridor and the future I-11 – two trade routes that will ensure our state is connected to the Northwestern United

States and plays a key role as an international trade route. These roads will enable Arizona to be part of a full north-to-south,Canada-to-Mexico interstate system that will be critical for our nation’s mobility, economy, and national defense. /// The future I-11, in particular, will be a game-changer, helping connect Arizona’s businesses and communities to major domestic and international trade partners. As the population in Arizona continues to grow and businesses increasingly settle here, having the right infrastructure in place is critical to fostering economic development, international trade and job creation statewide.

Q: W hat

else would you like to say for

the future of

A rizona

and success for

the next gener ation a s you see it ?

A: Over the last several years, Arizonans have been rightly frustrated with a federal government that continues to expand its reach on businesses and citizens that are still struggling to recover from the biggest economic recession in recent memory, as well as a president whose leading-from-behind strategy has threatened our security here at home. I believe that strong American leadership is crucial to confronting these challenges head-on, and securing a brighter future for our children and grandchildren. /// For all of these challenges, there are even more opportunities before us to set our state and nation on a path to success. I’m continually astounded by the technological and scientific advances taking place inside our borders by some of the brightest young minds in the U.S. That’s why I’m so committed to advancing policies that support our educational institutions in Arizona, attracting high-tech workers to our state, rewarding innovation and economic achievement, and inspiring our next generation to succeed.

4 © Copyright 2016 by MP Media, LLC

National Strength.

Local Experts.

Winning Projects.

Superior Management.

Innovative Development.

Strategic Investment.

For 50 years, Lincoln Property Company has been proudly maximizing the potential of buildings and land sites across Phoenix and the globe. Contact Lincoln today to put our expertise to work for you.

3131 E. Camelback Rd., Suite 318, Phoenix, AZ 85016 | 602.912.8888 | www.lpcphx.com

david-gebing www.david-gebing.com

AUTHENTICALLY MULTIFAMILY FOCUSED. EXTRAORDINARY RESULTS. PROVIDING CLIENTS WITH INVESTMENT SALES, RESEARCH + ADVISORY SERVICES THAT SPAN THE FULL SPECTRUM OF MULTIFAMILY ASSET CLASSES

ST E V E G E B I N G

C L IF F DAVID

Senior Director Institutional Property Advisors 602.687.6771 sgebing@ipausa.com

Senior Director National Multi Housing Group 602.687.6763 cliff.david@marcusmillichap.com

2398 EAST CAMELBACK ROAD, SUITE 550 | PHOENIX, ARIZONA | 85016

POWERING YOUR PROSPERITY Janet LePage Western Wealth Capital Avid Mom Walker & Dunlop borrower since 2014

Commercial Real Estate Finance Commercial Real Estate Finance www.walkerdunlop.com www.walkerdunlop.com

California loans will be made pursuant to a Finance Lenders Law License from the Department of Business Oversight.

California loans will be made pursuant to a Finance Lenders Law License from the Department of Business Oversight.

N E W D E V E L O P M E N T:

Optima Kierland CEM-AZ.COM • ISSUE 4, 2016