Issue 3, 2020 by Commercial Executive Magazine

Women

POWER

something’s different. We like to look on the bright side. Where others see problems, we find opportunities. Our work is focused on enhancing the lives of our employees, clients and communities we serve — always. Isn’t it nice to make life just a little bit sweeter? Experience the Difference. WILLMENG.COM | ROC #082904, Class B-01

Asset Repositioning

expert market knowledge, meaningful industry

Acquistions

Leasing & Sales Operations

Business Journal. Merit Partners offers experience,

Developer 2015-2019 according to the Phoenix

Development

Ranked #1 Industrial-Commercial Real Estate

YOUR EXPERT TO GET DEALS DONE Industrial, Flex and Office

relationships, and productive collaborations.

Contact 480.483.0360 or visit www.meritpartnersinc.com 2555 E. Camelback Road | Suite 180 | Phoenix, AZ 85016

Congratulations on 12 Years of Excellence!

Results Oriented Development Solutions.

Peak 16

M U LT I - FA M I LY

Tropical Distribution Center

INDUSTRIAL

233 Units Phoenix, Arizona

1.57 Million SF North Las Vegas, Nevada

Chandler Corporate Center

OFFICE

VT 303

INDUSTRIAL

VA N T R U S T R E .C O M

602-732-4210

118,000 SF Chandler, Arizona

1.2 Million SF Glendale, Arizona

AVAILABLE

PHOENIX 6 PORTFOLIO | AZ

BEAUMONT 2 PORTFOLIO | TX

ARKANSAS 3 PORTFOLIO | AR

PRESCOTT LAKES | AZ

CENTRAL & CAMELBACK | AZ

TEXAS 3 PORTFOLIO | TX

Meet Our New Crew The Cooke Multifamily Team has created strategic alliances not only with the Phoenix Land and Development Team, but we have also expanded into the Texas and Utah markets to provide greater service to our clients throughout the Sun Belt region of the U.S., in addition to adding more staff to accommodate the expansion. We welcome the opportunity to work with you in exceeding your business goals, whether it’s individual multifamily assets or portfolios.

VIEW PROPERTIES: COOKETEAM.COM

COMMITTED TO BUILDING COMMUNITY FOR A

BETTER TOMORROW

Together, with the Opus Foundation®, we are partnering with impactful organizations to create and strengthen opportunities for communities to thrive. In the past 12 months we have proudly supported the following local organizations: A New Leaf Ability 360 Arizona Helping Hands Banner Health Foundation Boy Scouts of America Grand Canyon Council Child Crisis Arizona Downtown Tempe Foundation Greater Phoenix Chamber Foundation Habitat for Humanity Central Arizona Heart for the City Hart Pantry Homeless Youth Connection Junior Achievement of Arizona New Pathways for Youth St. Vincent de Paul Tempe Community Action Agency

To learn more, contact: Larry Pobuda 602.648.5070 larry.pobuda@opus-group.com

DEVELOP DESIGN BUILD

Letter From The Publisher

– Winston Churchill

ct. 25, 1980, was the first day I stepped foot in America. I still have the red shoes I wore as I boarded Northwest Airlines for my first plane ride. I didn’t know a word of English. I had never tasted ice cream like most children my age. I spent the first seven years of my life in poverty as an orphan in Korea. Boarding that plane marked the beginning of my new life following my adoption into an American family, my new family, from Minnesota. When reflecting on this day, it still fills me with endless emotions … fear, uncertainty, apprehension … but most of all, hope. As I soon celebrate 40 years since that life-changing day, I realize I am a living, breathing example of the American dream. I fought to be an American and worked to learn English. I fought to keep the magazine open through my divorce, the Great Recession and now COVID-19. I fight to keep the industry alive and connected through my work with the magazine. I know we’ve seen brighter days, but we cannot give up the fight against the impact of this pandemic. The creation of a diamond is analogous here: Its beauty is derived from experiencing extreme pressure and heat. The same is true for us. We can collapse under the pressure or emerge stronger and more brilliant from this difficult time and the complex challenges we have faced as a result. Let’s do the latter and focus on a future that is filled with hope. I want to thank all of our wonderful advertisers and supporters over the years. I could not have come this far without you. Especially my mentors, Sharon Harper, Barry Gabel and Jim Pederson. I cherish the wisdom you three have shared with me over the years. Flip to page 8 to view a special thank you to all of our advertisers since the inception of the magazine. This issue, we have two very special cover stories. Our annual Women in Power is packed with five absolutely amazing women in the industry. Read their inspiring stories on page 20. On our other cover, we have the admirable Daryl Burton, whom I have known for more than 27 years and took me 12 years of convincing to agree to be on the cover! Read his personal story and about his unique new project with historical ties on page 22, on the other side of the issue. With that said, this will be our last print issue for the foreseeable future. My team and I will continue to provide valuable editorial and industry news through our new digital publications as well as our informative newsletters and website. To opt-in to receive the digital issues, go to www.cem-az.com. Contact Mandy, Karen or Celina for any questions. My humble roots have shaped me into the person I am today. Throughout the trials and tribulations, I have created my own legacy in this industry and community. I want to thank you for reading a bit of my personal story. Please enjoy this outstanding double issue for a look into the stories of many talented executives in the Valley. Enjoy the issue,

Mandy Purcell circa 1975

Mandy Purcell

Founder & Publisher Commercial Executive Magazine © MPmedia, LLC 2020

IN THIS ISSUE

12 Cover Story Five influential women grace the cover for our annual Women in Power feature

Growth Mindset Jason Morris, attorney and founding partner, Withey Morris sees growth ahead

How to Expand During a Pandemic Lincoln Property Company expands its Desert West footprint

20 Greystar

The multifamily powerhouse talks about the future, acquiring Alliance Residential’s property management division and more

Broker of the Month Chris Benjamin, president/designated broker, City to City, chats about family, diversification and company expansion

Rock Star | 16 Emerging Professional | 52 Advancing Arizona | 56 6

Team Karen coordinates the many moving parts of Commercial Executive Magazine. Specializing in strategic planning, she ensures CEM’s readers and advertisers are happy. Contact Karen for information on advertising, event sponsorships and general magazine inquiries. She has cherished her 25 year friendship with CEM’s Publisher, Mandy Purcell. Karen is grateful for the many years spent working together covering the commercial real estate industry. Karen looks forward to the next chapter of CEM’s digital publication.

Karen Gallagher Managing Director

karen@mpmediaaz.com

Celina keeps our readers up to date on the latest and greatest commercial real estate news in the Valley. She organizes and coordinates each editorial piece to perfection. Contact Celina for questions regarding editorial, copyright or purchasing commemorative plaques and PDFs.

Contact Karen or Celina regarding our new digital platform publication!

Celina Busse Editor-in-Chief

celina@mpmediaaz.com FOUNDER & PUBLISHER Mandy Purcell, mandy@mpmediaaz.com MANAGING DIRECTOR Karen Gallagher, karen@mpmediaaz.com EDITOR-IN-CHIEF Celina Busse, celina@mpmediaaz.com SALES Karen Gallagher EDITORIAL Celina Busse, Tim Randall GRAPHIC DESIGN Lalo Reyes, Janko Katic, Brian Lilley PHOTOGRAPHY Carl Shultz, Janko Katic, Robert Cordero

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

Commercial Executive Magazine sincerely thanks each and every one of our 2008-2020 advertisers. ACA Adolfson & Peterson Alliance Bank of Arizona Alliance Residential APS Archsol Arizona Retail Advisors AROK Artemis ASU Avison Young AZ Strategies BBVA Berkadia Beus Gilbert BRE Commercial Brownstein Hyatt Farber Buesing Corp Burch & Cracchiolo Butler Design Group Caliber

Caliente Construction Carefree Partners Investments Carlyle Development Group Cashen Cassidy Turley CBC Advisors CBRE CCS CDC Loans Chicago Title Castle Hot Springs City to City City of Glendale City of Goodyear City of Tempe City Wide Commercial Clear Title Cole Colliers Colton Commercial Concord GC

Conor Coreslab Structures COX CPI Cresa Cushman & Wakefield Davis DeRito Partners Desert Sky Construction Diamond Ventures Dickinson Wright DLA Piper DMB Associates DP Electric DPC Companies DPR DTZ Eisenberg Company El Dorado Holdings Ensemble Evergreen © MPmedia, LLC 2020

Fennemore Craig Fidelity National Title First American Title FirstBank First Industrial Gammage & Burnham Gantry Globe Corporation Goodwill GPE Greenlight Communities Greystar Grubb & Ellis Gust Rosenfeld Hannay Realty Advisors Hardison/Downey Heiple & Associates Hensel Phelps Hines HSL Properties HTA Irgens Harrison Properties JDM Partners Jennings Strouss JLL Johnson Capital Johnson Carlier Jokake Construction Keystone Commercial Capital Kidder Mathews Kitchell Knight Management Land Advisors Land Title Landmark Title Lawyers Title Layton Lazarus and Silvyn Lee & Associates Lewis Roca Rothgerber LPC © MPmedia, LLC 2020

Macerich MadridMedia Make-A-Wish Marcus & Millichap Maroney’s McCarthy McShane Development Merit Partners MidFirst Bank MJ Insurance Mortenson Mortgages Ltd NAI Horizon NAIOP Nathan & Associates National Bank of Arizona Newmark Knight Frank North American Title NorthMarq Old Republic Title Olsson Opus Orion PB Bell Pederson Group Perkins Coie Phoenix Motor Company Phoenix Suns Pivotal Group PK Associates Plaza Companies Pollack Investments Prologis Realty Executives RED Development REIAC Renaissance Companies Robson Communities Rockefeller Group RSP Architects Ryan Companies Savills Studley

Schreck Security Title SmithGroup Snell & Wilmer SOHO Spike Lawrence Ventures SRS Stevens-Leinweber Stewart Title STORE Capital Sunbelt Holdings Sundt Sunstate Equipment Suntec SVN Tango Commercial The Alter Group The Thunderbirds Thomas Title Tiffany & Bosco Tower Capital Transwestern Troon UMB VanTrust RE Velocity Retail Group W.M. Grace Companies Walker & Dunlop Waste Management Phoenix Open W Holdings Weitz Wells Fargo Wescor Wespac Construction Western National Bank Willmeng Withey Morris Wolverine Builders Wood Partners

EMPOWERED Women in Commercial Real Estate

Whether it’s becoming a world-class multifamily broker, leading a nationwide team of retail brokers, or developing creative business development strategies and resources for all brokers, Colliers International gives you the power to be the professional that you want to be. colliers.com/arizona

Accelerating success.

THANK YOU PHOENIX BROKERS!

David Barrett (CBRE), St. Louis Bank, 3131 Camelback Bill Blake (Lee & Associates), Pivotal Group, Biltmore Commerce Center Ryan Burkett (Cresa), Beazer Homes, Waypoint 4 Kevin Calihan (CBRE), JP Morgan, Gainey Center II Lindsey Carlson (Colliers), Mutual of Omaha, Biltmore Commerce Center John Cerchiai (Lee & Associates), Griffin Group, Biltmore Commerce Center Brandon Clarke (Cresa), Montini & Co., Paradise Village Office Park Charles DeLong (The DeLong Group), 360 Inside, Paradise Village Office Park John Deonise (Deonise RE), WILLJH LLC, Paradise Village Office Park Robert Gaetano (Homesmart), LeaderOne Financial, Paradise Village Office Park Daniel Gardiner (PCA), Phoenix Commercial Advisors, 3131 Camelback David Heiple (Heiple Travers Realty), McCabe O’Donnell, Paradise Village Office Park Scott Isacksen (Cushman & Wakefield), Anasazi Investment Group, Paradise Village Office Park and Post Integration, 3131 Camelback

Tom Jacobs (Cushman & Wakefield), Newmark Realty Capital, 3131 Camelback and DoorDash, Grand2

Roger Juszczak (WDP Realty LLC), Benz Hair Designs, Paradise Village Office Park Chad Kirkorsky (Citywide Commercial), J&J Liquidators, 4720 Van Buren Chis Krewson (NGKF), Ashton Woods, Waypoint 1 and Richmond American Homes, Promenade Corporate Center

Aaron Kuhl (Medical Office Brokers), Center for Dermatology, 2777 Camelback Keith Lammersen (JLL), Maricopa County, Luhrs Don MacWilliams (Colliers), Royal Paper Converting, Freeport Distribution Chris Mensinger (Colliers), Lincoln Financial Group, Paradise Village Office Park Ryan Orton (Cresa), WageWorks, Union Robbie Petty (SRS), Nextcare, Waypoint 1 Dan Pinson (International Realty Partners), GC Leasing AZ, Biltmore Commerce Center George Prince (Prince Commercial), Trilogy Financial, Promenade Corporate Center Jason Reddington (Levrose), AZ Small Business Association, Paradise Village Office Park Jarom Roger (Legacy RE), 3HS LLC, 120 E. Watkins Michael Sokol (CBRE), Prevalent, Paradise Village Office Park Colton Trauter (Lee & Associates), Simplicity Laser, Biltmore Commerce Center

Looking forward to many more deals in the years ahead! EXECUTIVE VICE PRESIDENT

DAVID KRUMWIEDE

VICE PRESIDENT

JOHN ORSAK

SENIOR ASSOCIATE

NICK NUDO

JUSTIN ARNITZ

602.912.8877 dkrumwiede@lpc.com

602.912.8879 jorsak@lpc.com

602.682.8309 nnudo@lpc.com

602.912.8876 jarnitz@lpc.com

ASSOCIATE

Expand Pandemic How to

During a

The second quarter economic numbers emanating from COVID-19 were truly disheartening: An unemployment rate of 11.1%, 17.9 million Americans out of work, according to the Bureau of Labor Statistics, and a GDP contraction of 52.8%, according to The Atlanta Federal Reserve Bank. While these figures highlight a decidedly disrupted economic cycle, commercial activity is already restarting, which sets the stage for a growth renewal in the back half of the year. At Lincoln Property Company (LPC), executive vice president Dave Krumwiede and vice presidents John Orsak and Doug Klocke have long been positioning the Desert West division for geographic growth in its region of Arizona, Nevada, Utah and New Mexico. Now, they are putting that plan into action. “It has been a tough few months for everyone, but as a nation we have faced hardships before – wars, recessions and pandemics – and fought through them,” Krumwiede says. “We were poised and ready to expand the Desert West footprint before the pandemic, and based on market indicators we are continuing to follow the opportunity that exists in our region. There is no reason that our division and the country will not emerge stronger on the other side.”

LEAN ON YOUR EXPERIENCE

Closing in on 20 years in the Valley, LPC Desert West currently owns and manages 7.1 million square feet of office, industrial and retail properties across metro Phoenix. Krumwiede has been along for the ride for both decades, joining LPC from OPUS in 2001 to establish the Desert West office with, as he puts it, “a desk, a computer and a pad of paper.” A 21-year industry veteran, Klocke joined the company in 2005 and Orsak entered in 2016 after a director role at Hines. The trio, along with their team of 50 industry professionals, are responsible for the growth of the division in the region. And they may very well be writing the playbook on how to expand during times of uncertainty. “The secret is leaning on your expertise, going with your gut and trusting your track record,” says Orsak. “As an example, we are actively expanding into Nevada and Utah, but because of COVID, we had to complete a recent out-of-state acquisition inspection by video. That process is new and a little nerve-wracking but you have to remind yourself you’ve done this. You know what you’re looking for and you know what opportunity looks like. Whether it’s something I can see in person or have to evaluate on my iPhone screen, I’m confident in my ability to identify a solid investment.” © MPmedia, LLC 2020

GET OUT OF THE BOX … FAR OUT!

Since inception, LPC Desert West has contributed over 20 million square feet of CRE activity (construction, acquisition and management) to LPC corporate, an international real estate firm with approximately 8,000 employees and a development track record of more than 128 million square feet of office, industrial and retail projects since 1965, and more than 403 million square feet of commercial space currently under leasing or management. “Lincoln’s culture is one of innovation, creativity and out-of-the-box thinking,” says Klocke. “Those who work on our projects know that we go out of our way to think forward … to stretch what we know to create the best of the best. We’ve instilled that philosophy into every project we touch, so that each has its own distinct personality.” The firm’s portfolio certainly conveys this energy and spirit: Grand 1 and 2 at Papago Park Center in Tempe; Luhrs City Center in Downtown Phoenix; the ultra-modern Park303 and Lincoln Logistics 40 industrial projects in the West Valley; and Union in Mesa, where even the parking structure is designed for potential future multifamily use, should parking structures become obsolete. “Park303 and LL40 are breaking ground in the emerging ‘creative industrial’ sector and The Grand buildings are examples of properties with tremendous character and distinguishing features. The rooftop deck of Grand 2 is unlike anything else in town,” says Orsak. “I have not heard anyone who has been there and not said, ‘wow.’ It’s projects like these that make you proud to be a developer.”

The Experts Lincoln Property Company

Doug Klocke, David Krumwiede, John Orsak

MAINTAIN THE MOMENTUM

The LPC Desert West team will use this blueprint as they pursue acquisitions, repositions and developments throughout the Southwest, particularly in office and industrial. “Future phases of Park 303 are on the horizon, as is a Grand 3 building in Quarter 1, 2021, along with several more Grand buildings in the future,” says Orsak. “The same opportunity lies along major transportation corridors in the West Valley and growth markets in Utah, Nevada and New Mexico.” The COVID-19 narrative is far from complete, but for the LPC Desert West team there is great optimism. “Greater Phoenix will continue to be a flourishing hub of business and a great place to live and work,” says Krumwiede. “As for commercial real estate, we are excited at the prospects for expansion not only in the Valley but across our regional footprint. When you trust your experience and move forward with the right intentions, there is nothing that can’t be accomplished.”

PARTNER WITH GREAT PARTNERS

Great projects, terrific partners and a respected record of excellence are hallmarks of LPC Desert West. From institutional financial relationships to the Grand development, which is being constructed on SRP land, to connections even closer to home – like the Union and Waypoint office projects developed in partnership with Krumwiede’s brother, Craig Krumwiede, president of Harvard Investments – LPC Desert West is an example that no great project is developed alone. That philosophy has earned LPC Desert West numerous accolades, including both the 2018 and 2019 NAIOP Arizona Owner/Developer of the Year awards and regular Best of NAIOP project awards. “This is why we love our careers,” says Krumwiede. “The opportunity to work with amazing partners, clients and brokers to create iconic structures makes no two days the same, and is what makes working at Lincoln and in the CRE industry so rewarding.” LPC Desert West’s robust track record of accomplishments also provides the fuel to weather the tough times, as with the dot-com bubble, 9/11, the CMBS crisis and now COVID-19.

USE THE PAST. SHAPE THE FUTURE

In February of 2020, the Arizona economy was booming with an unemployment rate of 4.5%, according to the Bureau of Labor Statistics. CRE also was on fire with fundamentals continuing to improve for both office and industrial space, according to LPC’s quarterly Phoenix market reports. Just a month later, Arizona residents were sheltering in place and business activity shuttered. “CRE has always been a resilient asset class,” says Klocke. “As the economy continues to reopen, companies and consumers will adjust to market conditions, and they will need a well-functioning and durable real estate industry.” And so, even amid the 2020 economic downdraft, LPC Desert West is continuing its purposeful expansion into the region’s growth markets. “We know what built our success in Phoenix – creative projects that are supported by strong population growth, ample land, a skilled workforce and attractive costs of living and doing business,” said Krumwiede. “When you look across our region, you see those same strengths in places like Las Vegas and Salt Lake City, and you see those markets survive and grow through the ups and downs of economic shift.” In these ways, the LPC Desert West team is using the past to shape the future. “Transitions create opportunities,” says Orsak. “We know that being nimble and flexible, and remembering lessons of the past, are critical to achieving success and moving forward.” Pro-forma financials provide an excellent example of the kind of adaptability Orsak references. “Typically, we will ask for three to five years of cash-flow projections from tenants,” he says. “Now, though, clients are not comfortable making forecasts beyond 12 months. That is the reality. There is optimism in the long-term, but caution in the near-term. We need to be able to adjust to the current circumstance, and thanks to our knowledge of past recessions we can do this.”

FIND GROWTH OPPORTUNITIES & CAPTURE THEM

As with other cycles, LPC Desert West’s leadership trio is not content to sit on the sidelines and wait out the economics of COVID-19. “Getting through challenging times is certainly tough, but it can also be gratifying because you have to work harder and smarter than the competition,” says Krumwiede. “There is a rewarding feeling knowing you can grow during both expansion and contraction periods.” The LPC Desert West veterans have eyed Nevada and Utah as locales ripe to create long-term value. “We’ve had these states circled on our calendar for some time, but with so much activity in Phoenix we could not find the bandwidth,” says Krumwiede. Now, the company feels ready to advance. Just south of McCarran International Airport in Las Vegas, a six-building, 425,000-square-foot industrial space caught their attention and soon became their market entry into Nevada. “The property is nearly fully leased, and we view the acquisition as a long-term buy and hold for at least 10 years,” says Orsak. “Industrial is proving to be a shining star asset in the COVID-19 era.” In Salt Lake City, LPC Desert West is also actively pursuing industrial acquisition opportunities. “Without question, our interest in Las Vegas and Salt Lake during COVID-19 is the result of our project successes in metro Phoenix,” says Krumwiede. “We’ll continue to follow that lead.” © MPmedia, LLC 2020

ROCK STAR Shannon Hersker Director, Walker & Dunlop

It has been quite an impressive eight-year run for Shannon Hersker. Since 2012, this phenom has worked at two of the commercial real estate industry’s premier institutions: Fidelity National Title, and now director, Capital Markets group, Walker & Dunlop. “When Keaton Merrell and Jim Pierson, managing directors, approached me to join their team and transition into commercial lending, I was as honored as I was hesitant to make the switch,” she says. “However, making the move into lending has been the best decision I have made, and I absolutely love where I am today.”

Starting Points

As one of the country’s largest and most prominent CRE finance organizations, Walker & Dunlop continues to win impressive accolades: #1 Fannie Mae (Delegated Underwriting & Servicing Program) DUS® Lender in 2019; #3 Freddie Mac Multifamily Approved Seller/Servicer in 2019, and #3 HUD Multifamily Lender in 2019. “Walker & Dunlop is one of the leading Fannie Mae and Freddie Mac lenders in the country, so we have continued to stay focused on multifamily,” she says. “We are still seeing plenty of capital for multifamily and industrial assets. Additionally, my team specifically has been focused on the build for rent market.”

Background

A graduate of Arizona State University with a Bachelor of Science degree in Marketing from the W.P. Carey School of Business, Hersker began her CRE journey at Thomas Title & Escrow. “My sales role was the steppingstone for my career in CRE. I learned the fundamentals of real estate and started to build my network, which then opened the door to being recruited by the largest title company in the country, Fidelity National Title, in 2014,” she says. “My time in title allowed me to work with CRE developers, brokers, lenders and attorneys, as well as assisting in growing our homebuilding division. This instilled a broad understanding of different product types and CRE sectors.”

Walker & Dunlop

Joining the firm in 2018, Hersker has generated a robust portfolio of business under the tutelage of mentors Merrell and Pierson. “I am responsible for nationwide loan origination for multifamily, office, retail and industrial properties,” she says. “I have known Jim and Keaton since I entered the business in 2012, and they have been instrumental in my career path,” she says. “For anyone that knows Jim and Keaton, it is hard to find a more generous, positive and supportive pair. They are hardworking, honest, and genuinely care about their clients. They believe in my success in finance, and it truly feels like working with family.” © MPmedia, LLC 2020

Hersker also is quick to praise the firm on its efforts to broaden gender diversity in the workplace. “Walker & Dunlop is a company that promotes women in a male-dominated industry,” she says. “While the company is working diligently on increasing the number of talented women in the organization, I am currently one of the few women on the origination side of the business. I am trying to take this progressive philosophy to help educate women in our market that this is a career path they should feel comfortable and empowered to pursue.”

Tra its of Success

Hersker learned the value of hard work and commitment to clients early on in her career, while also embracing a key takeaway from her mentors. “The most important lesson was the value of getting involved in real estate organizations. I will never forget them saying, ‘Be the first one there and the last to leave,’ and I took that very seriously,” she says. “The first few years of my career, I attended every event that was relative to my role, made sure to arrive early and made a point to talk to as many people in the room as I could. I came to understand that how you contribute and add value will represent the way you conduct business. I truly feel that my involvement in Urban Land Institute (ULI), commercial Real Estate Development Association (NAIOP) and other local groups has been the key to the success I have had thus far.”

Opportunities

While the COVID-19 outbreak has created uncertainty in the CRE space, Hersker believes in the long-run growth prospects for the Valley. “I am bullish on multifamily, industrial and build for rent,” she says. “Regarding build for rent, we have really seen it come to fruition over the last few years and are working with several groups across the nation. I feel the COVID pandemic will play a huge role in the future of rental housing, and I am proud that my team has been a pioneer in this asset class.”

Future

Opportunity abounds for Hersker and Walker & Dunlop in the coming years with the metro’s expansionary trajectory, and her approach to the sector. “Commercial real estate is a relationship business, and I have a passion for working with people,” she says. “I love that my current role allows me to build long-term relationships with clients who ultimately become friends. I am proud to work for both a company and a team that is competitive, collaborative and innovative.”

CONGR AT U L AT IONS SH A N NON! YOU ARE OUR ROCK STAR AND WE ARE VERY PROUD OF YOU. YOU ARE AN AWE SOME ADDITION TO OUR TE A M . CHEERS! - JIM PIERSON & KEATON MERRELL

JIM PIERSON

K E AT O N M E R R E L L

SHANNON HERSKER

Managing Director

Director

Capital Markets

Phone 602.926.7426

Phone 602.926.7429

Phone 602.522.0063

WalkerDunlop.com

jpierson@walkerdunlop.com

kmerrell@walkerdunlop.com

shersker@walkerdunlop.com

CA loans made or arranged pursuant to a California Financing Law license.

HARRISON PROPERTIES, LLC

OVER 12 MILLION SQUARE FEET IN 3 STATES AND EXPANDING! 5707 W. BUCKEYE ROAD

1502 E. BUCKEYE ROAD

2620 S. 12TH PLACE

COMING TO THE MARKET Q3 2021 135,000 SF

83,384 SF AVAILABLE DIVISIBLE TO 40,000 SF

COMING TO THE MARKET Q1 2021 40,724 SF

PHOENIX, ARIZONA

1901 W. FILMORE

PHOENIX, ARIZONA

42,444 SF AVAILABLE FENCED YARD

PHOENIX, ARIZONA

2400 WALGREENS BLVD.

2400FLAGSTAFF, N Walgreens Boulevard ARIZONA Flagstaff, Arizona

209,000 SF AVAILABLE BUILD TO SUITS - 20 ACRES AVAILABLE

±379,279 s.f. building on ±36 acre site freestanding industrial building available

5112 N. 40th St, Suite 105 Phoenix, AZ 85018 602.840.4295 jharrisonjr@harrisonprops.com

Resilience. Persistence. Power. These are a few words to describe the incredible women highlighted in Commercial Executive Magazine’s annual Women in Power feature. The five women in the next few pages have been through many trials and tribulations throughout their careers. They have shown their ability to accomplish, even thrive, under unforeseen circumstances in a male-dominated industry. These women embody what it means to be strong, authentic and powerful. 20

Belinda Rosthenhausler, Sandra Watson, Keri Silvyn, Ericka LeMaster, Laurie Sandau

Women in Power 2020

Ericka LeMaster Ericka LeMaster’s degree in psychology will pay dividends as she surveys the landscape of commercial real estate lending amid the economic vicissitudes of the COVID-19 epidemic. “A robust economic recovery hinges on companies hiring, businesses opening safely, and consumer confidence in returning to restaurants, shopping centers and travel,” she says. “The psychology of re-opening the economy is fascinating, and the resiliency of firms and consumers will drive CRE growth forward over the next several years.”

“

My family life bleeds into work and work bleeds into family life, and that positively adds to the person I am.

”

STARTING POINTS

15-year veteran of the industry, LeMaster is senior managing director, commercial real estate, at Alliance Bank of Arizona. She joined the organization in 2009 and has compiled an impressive record of success in her tenure. “I sought to join the team at Alliance Bank in 2009 because of the company’s strategic yet entrepreneurial platform to serve the business community in Arizona,” she says. “At Alliance, one of our strengths is remaining nimble and having a long-term vision, so we can efficiently and effectively assist businesses with growth plans during all market cycles, especially during CRE down cycles where seizing opportunities can net rewards.”

ALLIANCE BANK OF ARIZONA

Alliance Bank of Arizona operates under the umbrella of Western Alliance Bancorporation, a Forbes “Best Banks in America” for five consecutive years, 2016-2020. LeMaster helms the financial firm’s Valley lending team with a loan portfolio of $1.8 billion. “Being part of Alliance Bank of Arizona, I truly enjoy the dynamic team that I am so fortunate to work with day-in and day-out,” she says. “I am most proud of the professionalism and creativity we employ to help existing and new clients overcome challenges and hurdles in building their business. This attitude carries forward to everything we do and has been a pivotal launching pad to the company’s extraordinary growth.”

COVID-19

In her early Alliance Bank years, LeMaster had to navigate the aftermath of the global financial crisis and the imploded CRE space. Eleven years later, she faces a new test, an economy shut down by COVID-19, and now in the inchoate stages of re-opening and an economic recovery. “We approach the situation the same way we approach every challenge or opportunity at Alliance Bank of Arizona. Our team works tirelessly – oftentimes around the clock – to serve our clients and the community in the best way we can through this unprecedented time,” she says. “Our team is checking in with clients to see how they are doing, asking how we can help and assuring them we are available should they need anything. Our leadership has taken meaningful measures to ensure resources are available to our clients and community.”

TRANSFORMING

One of LeMaster’s passions is championing for more talented women to pursue a career in the CRE field and achieve success. “At the end of the day, it boils down to the strategies that make us good people,” she says. “It begins with good, old-fashioned hard work alongside being visi© MPmedia, LLC 2020

ble, fostering an environment of mutual respect, volunteering for stretch assignments, becoming a valued resource and, above all, being an excellent teammate to your work family.” To that end, she believes that success comes from recognizing where you are in your career path, what you hope to achieve and the steps necessary to accomplish those goals. “Quite simply, speak up on your intentions to grow into a leadership role. Also, equally important, do not accept a leadership role if it is not a good fit,” she says.” Neither you nor the company will benefit, and somewhere along the way your direct reports and even clients will be caught in the wake. Ensure the role you advance into, or in some cases create, is one that you can execute on, and grow in, if given the opportunity and resources.”

PERSONAL

Star banker, wife and mother of two boys (8 and 5), LeMaster has found her formula for worklife balance. “I love what I do, and I love my family, so balancing the two is effortless and not something I feel I need to work to achieve,” she says. “My family life bleeds into work and work bleeds into family life, and that positively adds to the person I am.”

FUTURE

As the economy mounts its recovery, LeMaster and Alliance Bank will be at the forefront of providing business with the liquidity and market intelligence needed for firms to return to growth and profitability. “I believe success is attributed to our relationship-based approach and executing on shared expectations,” she says. “Over time and with consistent results delivery, trust is built. It is trust that cements connections into long-term relationships.”

Time with my family. Being with them is so good for my soul. With my boys turning 8 and 5 years old and also celebrating my 10-year anniversary with my husband, I find myself wanting time to slow down. I’ve found an appreciation in trying to live in the moment.

Women in Power 2020

Keri Silvyn As a 13-year-old girl, Keri Silvyn wondered, “Can a daughter enter the family business, but not participate in the chief endeavor of the operation?” “I always wanted to be a lawyer, coming from a family of attorneys,” she says. “My dad took me to a Glendale City Council land-use meeting, which was contentious, parties fighting, and no one seemed happy. Driving home, I told my father, ‘That was ridiculous, why do you practice this type of law?’ I swore then and there that land-use law would never be in my future … Never say never.”

We are excited to maintain the positive growth trajectory of the past 10 years, while adhering to the strong identity of the respective regions. 24

STARTING POINTS

n 2012, Silvyn left the offices of Lewis and Roca, which had been her home for over 13 years, to go into business with her father, Larry Lazarus. “My dad and I represented the same client, who was completing the Kimpton Hotel Palomar at Cityscape. He handled the client’s Phoenix interests, and I managed work in Tucson,” she says. “Our mutual client, over a drink in the Palomar lobby, asked, ‘Why are you two not in business together? I would only need to hire one firm instead of two.’ Dad and I exchanged glances and an idea was born.”

BACKGROUND

With a Bachelor of Science and a Juris Doctor degree from the University of Arizona, Silvyn embarked on her legal career in Tucson at Gust Rosenfeld, PLC. “Just out of law school, I was clerking in Phoenix for the Hon. Thomas C. Kleinschmidt, Arizona Court of Appeals,” she says. “He knew the Tucson labor market for attorneys and allowed me to pursue opportunities, as my husband (Jeff) and I knew that we wanted to call Tucson home.” At Gust Rosenfeld, Silvyn tackled two diverse areas of practice: insurance defense and (yes, you guessed it) zoning and land-use. “One of the attorneys at the firm, Frank Cassidy, introduced me to zoning and land-use and got me excited about the discipline,” she says. “I found out that my Dad and I shared a similar personality that made practicing land-use law enjoyable. We are people-centric and relish the chance to bring diverse interests together and solve problems.”

LAZARUS & SILVYN, P.C.

A year under her belt at Gust Rosenfeld, Silvyn landed at Lewis and Roca and jumped headfirst into the legal sphere of zoning and land-use. “Frank Bangs taught me the nuances and craft of the field, and later would join me and Dad at Lazarus, Silvyn & Bangs, P.C.,” she says. “He recently retired, and now the firm is Lazarus & Silvyn, P.C.” The father-and-daughter team have expanded the firm’s presence across Arizona, while along the way learning from each other’s experiences. “Dad has always had a small-firm mentality, while my time at Lewis and Roca was a big-firm mindset,” she says. “It is fun to have those two competing approaches of how to work.”

LAND-USE

While personalities are at the heart of land-use, and a main driver behind the duo’s passion for the business, Silvyn cites change as an essential element of the practice. “As land-use attorneys, our job is to usher in change to other people’s backyards,” she says. “I always tell stakeholders that change is the one thing you can always count © MPmedia, LLC 2020

on. Change is hard but acknowledging that fact and having a voice in the process is important.” Land-use in the age of COVID-19 has changed as well, specifically the engagement factor. “As a firm, we already had instituted a digital profile before the pandemic. Our team operated remotely previously and continues to do so,” she says. “However, local jurisdiction actors needed to learn how to interact and conduct meetings in a virtual world. Client’s long-term entitlement plans have not changed, so it has been important to work with city officials in continuing to advance projects.”

BELIEF

For Silvyn, she cites her greatest accomplishment as learning to manage the ongoing dynamics of home, career and community service. “I discovered that work, family and community endeavors, such as my involvement with Sun Corridor Inc. and Tucson Airport Authority, are not a balancing act, but instead involve juggling,” she says. “I tell this to young women professionals who are experiencing complex choices, such as having a family, while seeking to advance their career. I remember when I had my first child, there was no maternity leave policy at Lewis and Roca. It became my responsibility to work with leadership and create a program.”

FUTURE

As Arizona continues its ascension as a vibrant live, work and play destination, Lazarus & Silvyn, P.C., are well positioned to deliver their bestin-class legal expertise across the commercial real estate sector. “The future of the state is bright, and particularly Tucson,” she says. “We are excited to maintain the positive growth trajectory of the past 10 years, while adhering to the strong identity of the respective regions.”

Staying in Tucson after graduation.

Ignoring those who told me to leave family at home when I went to work. Clients know my life, and understand that I can effectively juggle business, home and community activities.

SBA 504 RATE: 25-YEAR 2.266%*

Purchase/Construction/Reﬁnance/Equipment Financing PRE-QUALIFY WITHIN 24 HOURS

RECENT CLOSINGS

$2,200,000

purchase plus improvements

$1,777,000

ground up construction

$1,260,000 purchase

Work with CDC Small Business Finance, the SBA 2019 Lender of the Year - Arizona

Belinda Rosthenhausler | 602.762.4454 | belindar@cdcloans.com

Chris Bane | 602.317.1192 | cbane@cdcloans.com

*Eﬀective rate: Aug 6 - Sept 10, 2020. Check cdcloans.com for most current rates.

WELLS FARGO

Wells Fargo is here to support you We are closely monitoring and following guidance from world health organizations around the Coronavirus Disease 2019 (COVID-19). Our preparedness is coordinated as part of our overall business continuity planning, and our senior leadership team continues to meet twice daily to assess the business needs and the needs of our customers and employees. As the COVID-19 situation continues to unfold, we are focused on keeping employees and customers safe and well-informed to the best of our ability, while continuing to meet your needs. Despite the current environment, we remain confident in the longer-term outlook, and our team is here to help you navigate any concerns. Please continue reaching out to your relationship manager to talk through any specific challenges and answer questions. Lastly, we know the COVID-19 situation is affecting the communities in which we live and work. The Wells Fargo Foundation will increase its charitable donations to $175 million to help address food, shelter, small business and housing stability, as well as to provide help to public health organizations.

Thank you for your business and for placing your continued trust in our teams and our institution.

Women in Power 2020

Laurie Sandau According to the National Breast Cancer Foundation, one in eight women in the United States will develop breast cancer in her lifetime; on average every two minutes a woman is diagnosed with breast cancer in the United States; and there are over 3.5 million breast cancer survivors in the United States. Thankfully, Laurie Sandau, who is part of the healthcare strategy team at Land Advisors Organization, is one of those survivors. “This battle helped me to appreciate life, my faith, family and friends,” she says. “It has given me a better appreciation of my clients and how I approach my work life. I know that the cancer is not the story, but how God has and will use it to impact the lives of others is.”

It takes a lot of time and persistence, showing up and always giving your best. 28

STARTING POINTS

oining Land Advisors in March 2020, Sandau brings 15 years of commercial real estate experience to her role as a tenant/buyer representation broker dealing in the medical office submarket. “Joining Land Advisors Organization’s Healthcare Strategy Team has been an honor. The level of professionalism, market knowledge of the advisors and the leadership of our executive team has been incredibly impressive,” she says. “The thing I enjoy the most is working with Mike Brinkley, and Michele Pino, and our ability to strategize and operate together.”

BACKGROUND

A graduate of the University of Arizona with a BA in Communications and Marketing, Sandau entered the CRE sphere on the title side with business development and account manager positions at Grand Canyon Title Agency and Lawyers Title National Commercial Services. “I was fortunate to be recruited to the commercial market earlier in my career and never looked back,” she says. Joining Avison Young in 2014, Sandau quickly immersed herself in the nuances of healthcare brokerage. “What attracted me most about CRE is the strategic aspect, the collaboration throughout a process and the uniqueness of what each company brings to the table to achieve the end goal,” she says. “Most of all, I really enjoy the people in our industry.”

LAND ADVISORS

Land Advisors Organization is the largest land brokerage firm in the United States with 25 offices throughout the country, serving landowners and purchasers through every stage of the real estate cycle. “Our cutting-edge technology provides us the ability to advise our clients in all economic environments, which is truly unique. We can look at the market from the 30,000-foot level and drill down to the highest and best use of a desired location, site, and/or property,” she says. “I have so much respect for Avison Young, the integrity of the company and the people. They have supported my decision to join Land Advisors Organization, and I am pleased that we will still have opportunities to work together in the future.”

HEALTHCARE STRATEGY

The ongoing and rapid transformation across healthcare offers enormous opportunities in the medical CRE segment, particularly the emphasis on patient-centric offerings and sites of service care delivery. COVID-19 has highlighted how providers must be adept at navigating a shifting healthcare landscape, and the same holds for © MPmedia, LLC 2020

investors, buyers and sellers of medical CRE. “We recognize that there will be some changes in the healthcare landscape because of the pandemic, and we will work with our clients to align their plans to this new normal,” she says. “What sets our Healthcare Strategy Team apart is how we complement one another by each bringing a distinct skill set. We are equipped to help both large and small clients and healthcare providers with every step of their strategic planning and growth.”

CHALLENGES

Sandau’s personal experience overcoming the challenge and adversity of surviving breast cancer finds its way into her message to women entering the CRE field. “Do not be afraid to fail. Our challenges are what define us and help us grow stronger,” she says. “It takes a lot of time and persistence, showing up and always giving your best.” She also stresses the importance of developing long-term relationships as a crucial element of achieving goals in the business. “Your success will come if you are working on behalf of your client,” she says. “Creating trust from your client means everything, and I come from approaching this industry with honesty, being trustworthy and authenticity.”

FUTURE

Her future accomplishments at Land Advisors Organization will indeed be important, notable and celebrated. However, for Sandau, each day is a blessing, and one she does not take for granted. “I would not take away the lesson I learned from this battle and how cancer has affected my life,” she says. “It helped to prioritize what really matters to me in life.”

My faith. It has been the foundation of who I am and provides me hope, peace, mercy and grace that we need each day of our lives.

Have my children.

Women in Power 2020

Sandra Watson The third quarter of 2020 marks the beginning of the second half of the Arizona Commerce Authority’s (ACA) five-year business plan: 2018-2022. “We have defined and targeted metrics for job creation, wage growth, capital investment, entrepreneurial dynamism and export expansion,” says Sandra Watson, president and CEO. “The ACA’s mission is to expand and strengthen the state economy through a strategy of recruit, grow and create.”

Arizona is consistently ahead of every other state in advancing policies and projects that support innovation.

STARTING POINTS

nder Watson’s direction since 2012, the ACA has been at the forefront of the Grand Canyon State’s robust economic climate. At the close of 2019, the ACA was well ahead of schedule in reaching its five-year goals of 80,000 jobs, $7 billion in capital investment, an average wage 150% above 2017 median levels, a top five state in entrepreneurial vigor and a 25% increase in industry-specific export revenues. “The ACA provides a streamlined experience for doing business statewide,” she says. “Arizona is consistently ahead of every other state in advancing policies and projects that support innovation. While others may be focused on being the ‘next Silicon Valley’ – or beach, or forest, or desert – our competitive advantage lies in the fact that we are unconcerned with what has already been done.”

BACKGROUND

Moving to the Valley from Ontario, Canada, with her now late husband in 1992, Watson entered the economic development arena at the City of Chandler before securing a role at the Arizona Department of Commerce. Under the leadership of five governors (Fife Symington, Jane Hull, Janet Napolitano, Jan Brewer and Doug Ducey), Watson has contributed her skill, insight and expertise to advancing the state’s economic fortunes. “While they varied in political parties, all shared a common goal: advancing Arizona,” she says. “In 2011, the ACA was established under Gov. Brewer’s leadership, creating a new, innovative model for economic development with a strong private-sector focus. Now, under Gov. Ducey’s leadership, we have rapidly advanced Arizona’s reputation as the number one place for new ideas and new business models.”

APPROACH

Watson’s strategic direction for the ACA involves pursuing growth opportunities organically within the state, attraction of businesses from competing metros and securing more foreign direct investment (FDI). “We are drawing companies from all over the world that are doing incredible work in next-gen trend areas such as autonomous mobility, blockchain, the internet of things and artificial intelligence,” she says. In one such example, Taiwan Semiconductor Manufacturing Company (TSMC), announced a $12 billion capital deployment for its state-of-the-art semiconductor facility. “The ACA is incredibly honored that following a competitive process, Arizona has been selected by TSMC for its new U.S. manufacturing operation,” she says. With an extensive resume of international engagement, Watson’s efforts on TSMC, as well © MPmedia, LLC 2020

as boosting state exports, have been extremely beneficial. “Having a perspective on how business is done in other countries has been very helpful when we are working on bringing FDI projects to Arizona,” she says. “I am fortunate to have traveled extensively in Europe, Asia, Mexico and Canada with many Arizona delegations over the years. Through these experiences, I have developed a strong sense of what is important to foreign decision-makers evaluating U.S. expansion plans.”

ARIZONA STRONG

Amid a flourishing state economy, the arrival of COVID-19 introduced a wave of financial uncertainty for businesses and consumers. “Under Gov. Ducey’s leadership, the ACA quickly deployed a comprehensive and intentional strategy to support businesses,” she says. “We are regularly convening industry and community leaders to share knowledge and collaborate on ways to provide relief, with a particular focus on our small businesses that have been hit the hardest.” As Arizona residents navigate the pandemic’s effects, Watson continues to push forward on the ACA’s objectives. “The ACA has been proud to work alongside our colleagues in state and local government, as well as our many economic development partners, to provide resources and guidance to businesses impacted by COVID-19,” she says.

BELIEF

A steadfast champion of Arizona’s economic future, Watson recognizes that the foundation of the state’s excellence resides in its residents. “The principles do not change: working hard and being passionate, motivated and dedicated will go a long way in driving success,” she says. “Raise your hand and say yes to opportunities.”

FUTURE

Through the Great Recession and now COVID-19, Arizonans have proved resilient and up to the challenge of making the state an economic powerhouse. “That is Arizona’s unique, pioneering spirit. By taking our own path, we are shaping our own future,” she says.

Ensuring I’m spending quality time with my family and exercising when I can find enough time.

Women in Power 2020

Belinda Rosthenhausler During the COVID-19 pandemic, the U.S. Small Business Administration has been front and center in providing liquidity to the nation’s 31.7 million ventures with 500 or fewer employees. In the Grand Canyon State, CDC (Certified Development Company) Small Business Finance has been working hard to meet the financial and informational needs of clients. “We funded more Paycheck Protection Program loans than any other CDC in the Southwest. We also created our own emergency working capital products for small businesses,” says Belinda Rosthenhausler, vice president, commercial lender, Arizona and Nevada. “To address the impact of COVID-19, CDC created a business owner’s guide to the Coronavirus Aid, Relief, and Economic Security Act, hosted daily webinars helping small business navigate through the Emergency Relief Loans and #thankfulthursday highlighting the gratitude and generosity of our borrowers. All of that geared toward supporting the small business owners through these very difficult times.”

Ask questions and never be afraid to fail, life is a learning process. 32

STARTING POINTS

n business over 40 years, CDC Small Business Finance has been instrumental in the expansion of the region’s small business portfolio. “In fiscal year 2019, we approved 55 deals representing over $180 million in projects for Arizona small businesses,” she says. “Year-to-date 2020, we have approved 57 SBA 504 loans in Arizona representing over $45.5 million. This includes 19 projects totaling $35 million during COVID-19. We continue to lend on commercial real estate.”

BACKGROUND

Rosthenhausler boasts an impressive lending resume with vice president roles at several prominent financial institutions, including National Bank of Arizona and Meadows Bank. “I began my career with Sonoma National Bank in 1996. My mentor, Keith Charles, was a master in SBA commercial real estate structuring,” she says. “His knowledge of SBA eligibility, experience and relationships with industry leaders allowed me to learn from one of the best in the specialized business of SBA lending.” In 2012, Rosthenhausler took a hiatus from the banking sphere and pursued commercial real estate from a different vantage point at Security Title and Clear Title. “The title/escrow industry is based on relationships and your last experience the escrow officer is key to a successful closing and the communication involved in closing transactions is extensive. The focus is on customer service,” she says. Rosthenhausler returned to lending in 2019, joining CDC Small Business Finance. “Marketing for Clear Title was a great experience,” she says. “However, the market was trending toward SBA lending, interest rates are at an all-time low of 2.26% (8/20 effective rate). The 504 loan program provides advantages for business owners to purchase or develop with minimal down payment, supporting their stability of commercial real estate requirements long term. Joining the largest Certified Development Company (CDC) in the country and the #1 CDC in Arizona made it the right time to return to SBA lending.”

IDEALS

Increasingly, that Cinderella story involves women-owned businesses. According to the most recent figures from the SBA, U.S. small business included 1,118,863 women-owned firms. And the SBA helps facilitate the federal government’s goal of awarding 5% of all contracting dollars to women and minority-owned businesses. “Women owners can access SBA funding through the 504 and 7a programs,” says Rosthenhausler. Championing both women owners and female professionals in the marketplace, Rosthenhausler delivers a clear message: “Have a goal, be the value, educate yourself on your product, be the connector and find a mentor within your organization or industry. Ask questions and never be afraid to fail, life is a learning process.” she says.

FUTURE

As business owners and consumers navigate through the COVID-19 pandemic, Rosthenhausler looks forward to the future. “Our goal at CDC Small Business Finance is to provide the financial resources and expertise for these companies that comprise 99.9% of all U.S. businesses,” she says. Arizona’s market is ever expanding, bringing new industry and technology into the state. “The future always holds uncertainty. The objective is to create an environment that is open to possibilities, encourages diversity, is inherently cooperative, and intrinsically motivating to ask questions, to search, and to discover. This is how to step into the future and achieve success.” says Rosthenhausler.

Cooking, creating dishes with Nana, hiking, yoga, traveling and time spent with loved ones.

APPROACH

Venturing back to the SBA environment has proven a beneficial choice for the veteran lender. “I missed working with business owners, the relationships built through the loan process. Every flourishing company has its Cinderella story,” she says, “a story of finding its niche in business and growing into a successful company and now looking to purchase or develop their first commercial property.”

“

Because Alliance Bank also brings the strengths of Western Alliance... ... it can provide the types of financing and banking solutions that the largest banks do, with the service, speed and predictability of a local bank.” – Mike Ebert, Managing Director, RED Development

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

Bank on Accountability alliancebankofarizona.com

Top 10 – Forbes Best Banks

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

Greystar Amid the global economic COVID-19 shutdown, a major development unfolded in the multifamily commercial real estate space. On June 2, Greystar, the sector’s number one residential rental management company, announced the purchase of Alliance Residential’s property management division, the nation’s fourthlargest operation. “Bringing together these two powerhouses will have a positive and broadreaching industry impact for years to come,” says Robert Hicks, former Alliance partner and now senior managing director, Desert Region, Greystar. “Our combined presence will create the best-in-class multifamily company for residents, clients and our team members,” says Mike Clow, executive director, Third-Party Portfolio, Greystar.

STARTING POINTS

With the acquisition of Alliance’s 500 properties comprised of 130,000 units, Greystar’s footprint now extends to 2,400 communities and 660,000 apartment units across 42 U.S. states and 13 countries, according to the organization’s website. “The agreement provides Greystar the opportunity to expand its superior management offerings in the U.S. and globally,” says Clow. “And for Alliance, the company retains its construction and acquisition division, which means it will continue to be the market leader in multifamily development.”

BACKGROUND

The Greystar and Alliance marriage has its roots in the late 1980s and early 1990s, as Greystar founder, chairman and CEO, Bob Faith, and Alliance CEO, Bruce Ward, both spent a portion of their careers at Trammel Crow West. “They both knew each other, so there was a common lineage,” says Clow. Prior to Ward forming Alliance, BRE, a California-based REIT, acquired Trammel Crow West, with Clow as a contributor. “At BRE, I worked with the Trammel team on the purchase and built relationships. Now, over 20 years later, there is a deep familiarity with many of the Alliance professionals,” he says. Clow ultimately joined Greystar in 2008, while Hicks entered Alliance in 2007 after serving as a vice president at Mark-Taylor. “I have known Mike for over 20 years, and other terrific Greystar professionals such as Nicole Wray and Brandon Rich for over a decade” says Hicks. “We have developed friendships and great respect for one another, as our two companies competed in the multifamily space. I could not be more pleased to be part of Greystar.”

Nicole Wray, Mike Clow, Robert Hicks

DESERT REGION

Greystar’s Desert Region consists of Arizona, New Mexico and Nevada, with the Grand Canyon state contributing 45,000 units in 130 communities courtesy of the Alliance acquisition. “Our Desert/Mountain profile reaches 110,000 units,” says Rich, senior managing director, Real Estate Services, Western U.S., Greystar. “Greater Phoenix continues to be one of the leading metros for multifamily growth, and absorption remains robust,” says Nicole Wray, managing director, Real Estate Services, Western U.S., Desert, Greystar.

APPROACH

Over Greystar’s history, the company has engaged in strategic acquisitions to expand its brand and multifamily ecosystem, including among others JPI Management Services in 2008, Riverstone Residential Group in 2014 and Monogram Residential Partners in 2017. In each case, Greystar leadership stressed the importance of finding collaborative firms that shared similar cultures and were aligned toward achieving Greystar’s long-term objectives. “We always admired Alliance as a phenomenal company with world-class talent and CRE,” says Clow. The negotiations for the transaction began pre-COVID, and despite the economic uncertainty of the pandemic, the deal pushed ahead. “Completing the acquisition demonstrates the commitment and confidence that the leadership of both great companies had in each other,” says Clow. “The close relationships built over the years were instrumental in reaching the finish line.”

MULTIFAMILY

Even as the economic effects from the virus have ravaged certain industries and CRE segments, multifamily activity has remained robust in the Valley. According to Colliers International, in the Second Quarter 2020, Greater Phoenix “leads the nation in yearover-year rent growth, rising 5.4% to $1,233; occupancy rates continue to remain elevated at 95% and 20,309 units are currently under construction.” Couple these terrific numbers with a minute level of tenant defaults, and the multifamily picture in the metro is robust. “We are 5% delinquent with 4% on payment plans and less than 1% non-responsive for Phoenix Metro.” says Clow.

strategic in designing protocols for keeping residents, associates and vendors protected.”

ALLIANCE

With Alliance’s focus solely on the acquisition, construction and development space, there are tremendous opportunities for the company to flourish as its portfolio is built. “I know that Alliance will continue to advance with its signature brands such as Broadstone,” says Hicks. Greystar also stands to benefit, as management services for new Alliance properties will be handled by the company. “Alliance knows it has a trusted and dedicated manager at its side,” Clow says. “Our service level will be unparalleled in the industry, as we continue to leverage best practices from both firms to raise the bar in terms of the customer experience and capabilities we provide to both our residents and clients,” says Rich.

FUTURE

The property management capabilities, competencies and strengths of two phenomenal companies are now under one umbrella, and team members are excited at the possibilities. “We will have unrivaled economic synergies, which will flow to our residents and building owners,” says Clow. “Alliance and Greystar are truly perfect complements.”

Completing the acquisition demonstrates the commitment and confidence that the leadership of both great companies had in each other. The close relationships built over the years were instrumental in reaching the finish line. - Mike Clow, Executive Director, Third-Party Portfolio, Greystar

COVID-19

COVID has transformed the multifamily leasing environment, and technology has provided the solution. “As an industry and company, we needed to evolve quickly to marketing and leasing in our communities through a virtual approach,” says Hicks. In addition to digital tours and contracts, Greystar professionals have been diligent in their approach to safety. “As an organization, we have been extremely thoughtful and © MPmedia, LLC 2020

CLEARING HURDLES FROM DIRT TO DEVELOPMENT

Withey Morris is your advocate at City Hall. Land Use • Zoning • Real Estate • Government Affairs

Building Arizona from concept to completion Withey Morris – Arizona's most trusted land use and real estate law firm. (602) 230-0600 • info@WitheyMorris.com • WitheyMorris.com

Growth Mindset According to historians, the oldest cartographic relic is the Babylonian World Map, a 600 B.C. clay design depicting landforms and water features of the ancient world. Over 2,600 years later, Google Maps provides precise geographical context, location and detail using satellite imagery. Examine the Withey Morris Project Map using Google’s technology, and the full scale, scope and breadth of the firm’s projects immediately become apparent. “It is astonishing because unless I look at the map and see the magnitude of it, it is hard to fathom how many cases we have been involved in,” says Jason Morris, attorney and founding partner, Withey Morris. “I also feel a tremendous sense of pride. ”

LATITUDE AND LONGITUDE

Thousands of colorful pins, each representing a distinct land-use project, blanket the Valley landscape and reveal why the firm is recognized as Arizona’s premier entitlement, zoning and real estate law practice. “It is a function of having the perfect combination of an amazing team coupled with outstanding clients. Our clients have been loyal to us for two decades,” says Morris. “I have zoned hospitals, rehabilitation centers and care homes. We have worked on stadiums and arenas and a variety of nonprofits. But I do not think it is any one case, so much as the totality of being able to drive down the street and appreciate Withey Morris’ huge impact on the landscape of the city.”

LEGEND

A graduate of the University of Arizona College Of Law, Morris began his career at Killian, Nicholas, Fischer, Wirken, Cook & Pew where he discovered the land-use and entitlement practice. “I was fortunate to have Ralph Pew as an early mentor. He taught me that zoning existed and what a zoning attorney should be,” says Morris. “I also had a chance to work for Paul Gilbert, who is the dean of land-use lawyers in the Valley. To this day, he is probably the most admired zoning attorney.” After four years at Beus Gilbert, in December of 1999, Morris teamed up with Michael Withey, and their firm was off and running. “He taught me every practical aspect about running a business and being the epitome of what a partner and a friend should be,” says Morris. “I have always loved the land-use, entitlement and

It is a winning combination of sharp legal, business and political insights, historical perspective, strong relationships we have built in jurisdictions around the state, and luck. - Jason Morris, Attorney and Founding Partner, Withey Morris 44

zoning discipline. It is a combination of all the things that interest me: the legal aspect, the land-planning aspect, the political aspect. I do not believe I could practice any other type of law.”

CARDINAL DIRECTIONS

North, south, east and west: the Withey Morris Project Map reveals the firm’s impressive commercial real estate land-use footprint across the Greater Phoenix metro. Iconic developments spanning the gamut of projects showcase the expertise and experience of the Withey Morris team. “For us, it is not unusual to revisit a site years later either to change the use that we got approved, or because the use was approved but never built and somebody else now owns it, or to improve upon an existing project,” he says. “The reason you see so many cases close together is because our clients rely on us to be experts in that sub-area. These cases build upon themselves.”

COMPASS ROSE

As partners for over 20 years, Withey and Morris have built a nationally recognized practice with distinguished accolades: Best Lawyers, Best Lawyers in America, Super Lawyers and Arizona's Finest Lawyers. “These accomplishments are the result of having a dedicated and knowledgeable team. We are all passionate about what we do. We have a strong work ethic and values,” Morris says. “It is a winning combination

of sharp legal, business and political insights, historical perspective, strong relationships we have built in jurisdictions around the state, and luck.”

SCALE

With the booming growth of the state − particularly Maricopa County − due to a pro-business climate, steady population inflows, cost of living, and a perfect work, live and play environment, Morris believes the Map of 2040 will expand considerably. “I think we will see many more dots, but I do not think they will necessarily be as far flung. There will be a focus on returning to the core of the city and building from within rather than going to the periphery,” he says. “This means taking advantage of the infrastructure, the freeway system – things that are already in place rather than creating satellite cities.” Even amid COVID-19, Withey Morris’ workload continues to expand, as project lead times require 12-24 months of preparation. “We are a leading economic indicator,” he says. “The type of work we do for a client will result in something coming out of the ground – maybe a year or two later. If you examine where our cases are being filed and the types of cases filed, you will see a pattern of what is supportable in the economy.” With that timeframe in mind, industrial, multifamily, single-family developments and mixed-use are all areas of CRE expansion into 2022 and beyond.

FUTURE

A panoply of land-use achievements, the Withey Morris Project Map is truly an awe-inspiring achievement. “You are not able to create a map like that and a legacy like that without results,” he says. “If you are not successful in achieving your clients’ goals, a map like that never comes into existence. I am truly grateful.”