Issue 4, 2020 by Commercial Executive Magazine

Daryl Burton

Reveals His New FLITE Plan

The Art of Pivoting Sharon Harper, James DuMars and Nate Nathan discuss the future of CRE Tratt Properties Developer Jonathan Tratt has an exciting new project CEM-AZ.COM • ISSUE 3/4, 2020

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PARTNERS. PERFORMANCE. POSSIBILITIES. Thank you Commercial Executive Magazine for the positive difference you make to our community and industry. We look forward to your strong return in 2021. - Barry Gabel & Team Barry Chris Will Jamie Stephanie Ada Rose Ryan

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IN THIS ISSUE

14 Alignment Realty Capital The stars aligned perfectly for Gary Linhart, Jake Gallagher and Benjamin Sacks

The Art of Pivoting Sharon Harper, Nate Nathan and James DuMars reflect on past downturns and share their outlook on a post-pandemic future

Mixing Business with Pleasure Five golfers in commercial real estate, including our publisher, participate in this fun feature!

20 Cover Story

Daryl Burton’s incredible new property, FLITE Goodyear, is taking off

Tratt Properties Developer Jonathan Tratt zeros in on Greater Phoenix for continued success

Broker Team of the Month | 8 West Valley Game Changers | 32

t a s g n i h t y n a m o s d e g n a h c s a p h i s c i , m e e h d t n a a e r B This p . s e v i l e m o h r s u e o u s s n i i d d l n o a e m o s work t u o ll u p d n a e n ! g r a e p h t m e a g h o c t e s i m h t so t a e b n a c e W . M of CE Mandy Purcell Founder & Publisher Commercial Executive Magazine © MPmedia, LLC 2020

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BROKER TEAM OF THE MONTH Presented by Willmeng Construction

When Ryan Bartos offered Kyle Seeger his first commercial real estate position at Savills Studley in 2015, the duo already had an industry history. “When I was ready to make my move to commercial real estate in 2009 at Cushman & Wakefield, I was actually hired by Dave Seeger … Kyle’s dad,” says Bartos. Now partners at JLL, Bartos, managing director, and Seeger, vice president, are writing their own history as leaders in the high-growth startup leasing market. “We are both heavily drawn to this type of client and business, and the parallel growth of Arizona’s innovation sector allowed us to focus our efforts on the fast-expanding technology companies that are flocking to Phoenix,” says Seeger.

Ryan Bartos and Kyle Seeger

Starting Points

According to JLL, the firm generated “annual revenue of $18 billion in 2019, with operations in over 80 countries and a global workforce of nearly 93,000 as of June 30, 2020.” The Phoenix office market is a valuable component of that activity, performing as one of the nation’s strong – and growing – commercial metros. “Arizona has an outstanding talent base, affordable real estate and low cost of living. These benefits have an onslaught of technology companies moving their operations to Phoenix from other markets,” says Bartos. “Because of this, we believe that the local technology industry is going to be one of the main drivers of Arizona commercial real estate for the next five to 10 years, and we are going to see enormous growth of the ecosystem,” says Seeger.

Background

An Arizona State University graduate, Bartos began his career at Pulte Homes before turning his attention to CRE. “I started in residential development, and I loved being in real estate, but I pretty quickly realized that my interest was on the commercial side of things,” he says. Seeger, a University of Arizona alumnus, had a role model to emulate. “I grew up watching my father, who was a commercial real estate broker, and I knew that is what I wanted to do,” he says. “I interned on Ryan’s team prior to my senior year at U of A and was fortunate after graduation to earn my first position with him.”

Opportunities such as Opendoor provide Bartos and Seeger the fuel to further advance their market position in this fast-paced segment. “We realize that with their high-growth nature, startup companies need to structure their real estate transactions different than traditional companies,” says Seeger. “Startups are a unique creature, full of creative leaders and visionaries who are not afraid to tackle new business concepts.”

Team Approach

Seeger and Bartos’ vision and passion for startup and highgrowth organizations explains their exceptional reputation in the space. “In partnering with Kyle, I have been able to work with a team member who has the same values, can-do attitude and drive for success,” Bartos says. “Ryan’s creativity, his positive outlook and his deep market knowledge pairs well with these types of firms, allowing him to get to know the core needs of his clients and match those needs with the perfect commercial space,” says Seeger. Together, both professionals are constructing a blueprint on how to position vibrant technology firms into the perfect commercial sites across Greater Phoenix. “Often, these new market entrants lack the powerful balance sheet of a Fortune 500, which can make it more difficult to secure ideal locations due to lack of financial strength,” says Bartos. “This is where we can provide experienced advisory services, and where

“Often, these new market entrants lack the powerful balance sheet of a Fortune 500, which can make it more difficult to secure ideal locations due to lack of financial

strength,” says Bartos. “This is where we can provide experienced advisory services, and where our understanding of the market can help uncover opportunities that a startup might not have been able to identify on its own,” says Seeger.

Technology

The Valley’s technology and innovation ecosystem is booming and catching the attention of startups, middle-market and Fortune 500 companies. A recent Inc. piece showcased the dynamism of the region: “The Next Tech Hub Is Not Austin or Denver. The Next Tech Hub Is Greater Phoenix.” Ask Bartos and Seeger, and this expansionary cycle is exactly what they had in mind. “We have been involved in this sector since its emergence in the Valley, and there are many home-grown technology companies that are expanding faster than they ever have before,” says Bartos. “The more our experience with these types of companies grew, the more we were able to establish ourselves in this niche as it developed around us,” says Seeger. The pair recently completed a transition for Opendoor, the home transaction platform, from the Quad in Scottsdale to Watermark in Tempe. “The expansion will quadruple the company’s footprint in the Valley to 100,000 square feet and support the hiring of 1,000 employees in the next few years,” says Bartos. © MPmedia, LLC 2020

our understanding of the market can help uncover opportunities that a startup might not have been able to identify on its own,” says Seeger. A roster of the team’s recent accomplishments demonstrates the approach is working well: • Oscar Health –150,000 square feet at Circuit Tempe • WeWork – 70,000 square feet at Watermark • Nextiva – 100,000 square feet at Alter Riverwalk • Upgrade Inc. – 60,000 square feet at Ren Square • Sendoso – 40,000 square feet at Camelback Tower/ Scottsdale

Future

Advancing high-growth startups in the metro is top priority for the JLL professionals. “We are relationship-driven and client-centric,” says Bartos. “The technology industry in Arizona is primed to continue its success and, together, we are maximizing our knowledge and strengths for the benefit of tech and startup companies who call Greater Phoenix their home.”

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“JLL has seen tremendous growth with our agency leasing business as our clients continue to need a partner to advise on the evolving commercial real estate market. Ryan and Nick’s character, office leasing expertise, team approach and eagerness to embrace technology have already proved beneficial. These qualities, among others, make them perfect teammates to help us enhance the services we provide to our clients.” — Pat Williams | Managing Director

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Jones Lang LaSalle Americas, Inc. License #: CO508577000 © 2020 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.

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Jerry Noble

Commercial Executive Magazine

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Market Officer

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Executive Vice Presidents

Scott Clark Founder

Law Offices of Scott M. Clark, P.C.

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Mandy Purcell Founder & Publisher

Commercial Executive Magazine What is your favorite thing about golf? Golf has become my passion. I love the challenge, visiting with clients and friends, and of course the outfits! Handicap: Higher than I’d like! Dream handicap: 10 Hole in One: #1 September 27, 2020; My wish finally came true!

Don & Payson MacWilliam Executive Vice Presidents Colliers International

“The Brothers”

What is the best part of working together and golfing together? We are both very competitive in the office and on the golf course, but in the end it is about looking out for each other and our families. After 34 years, it still works. -Don Don: Handicap: 11 Dream handicap: +2, trying to get there! Hole in One: #1 June 1984 Payson: Handicap: 5 Dream handicap: Scratch Hole in One: #1 May 18, 2008; #2 March 4, 2011

Jerry Noble Market Officer DPC Companies

What is your favorite golf memory? This year’s Phoenix Open ProAm, I was able to play in the GatewayChevrolet foursome with Colt Knost, who had been on tour for many years. Walking through the tunnel on 16 was awesome. The stands were not even close to full, but people were making noise and having fun. I hit the green and missed my birdie putt by inches. We went out just to have fun and ended up finishing second in that day’s event. Current handicap: 8 Handicap: Can’t afford it to be any lower! Hole in One: #1 May 13, 2020

Scott Clark Founder

Law Offices of Scott M. Clark, P.C. What is your favorite part about golfing in Arizona? We have many options of where to play in Arizona, and on top of that, we have some of the finest courses in the U.S. We also don’t have any weather issues, which prevents us from playing yearround as long as you can tolerate the heat in the summer months. Handicap: 7.1 Dream handicap: 2, but the problem is that my handicap is going the wrong direction—up! Hole in One: #1 April 17, 2006; #2 April 18, 2009; #3 August 3, 2019

Ben Sacks, Gary Linhart, Jake Gallagher

There are variations of the phrase “there are no coincidences in life,” but Gary Linhart, Jake Gallagher, and Ben Sacks of Alignment Realty Capital agree with the premise. “A long series of events, timed perfectly, led to the creation of Alignment,” says Sacks. “The stars certainly did align for us,” added Gallagher. “I have worked on several entrepreneurial ventures over the past 20-plus years,” says Linhart, “and I cannot emphasize enough how exciting and energizing it is to be working with young entrepreneurs like Ben and Jake they work as hard as anyone I have encountered.”

STARTING POINTS

Formed in May 2020 as COVID-19 erupted across the globe, Alignment Realty Capital is a joint venture between Linhart’s WestHawk Capital (owner) and emerging managers, Gallagher and Sacks. Earlier this year, Gary left ViaWest Group, which he co-founded in 2003. In March 2020, he launched WestHawk Capital, a real estate investment platform incubator. “WestHawk focuses on creating, incubating and accelerating a series of specialized companies with emerging real estate talent, and Alignment Realty Capital is its first venture,” Linhart says. Alignment is actively seeking direct investment opportunities in single-tenant, net-leased real estate across the country. “Our first deal closed in August: a sale-leaseback acquisition of four © MPmedia, LLC 2020

Sonic Drive-In restaurants in the St. Louis MSA,” says Sacks. “We are focusing on finding new acquisition and sale-leaseback opportunities while building a network of tenants and partners in a few distinct sectors that include quick-service restaurants and other durable retail, dental/orthodontic clinics, and single-tenant, small-format industrial,” says Gallagher.

BACKGROUND

The roots of Alignment reach back to high school for Gallagher and Sacks, who became friends and quickly discovered a shared dynamic energy for business. “Since high school, Ben and I have always had entrepreneurial mindsets. We used to scour garage sales for electronics and collectibles to flip for profit. We even bought an old Porsche in need of some love, hoping to make a quick buck,” says Gallagher. In 2014, Linhart entered the picture as a mentor to Sacks, who was looking to attend Northwestern, Linhart’s alma mater. “The moment I met Ben interviewing him for college, I was impressed with his energy and resourcefulness,” Linhart says. Sacks ultimately graduated from Claremont McKenna College in 2018, but spent two summers as an intern for ViaWest and has stayed connected with Linhart over the years. Gallagher, meanwhile, earned his degree at the University of Arizona in 2017, and after a summer internship at JLL, he took his first role in Dallas at Hamilton Realty Finance. “I got a call from one of the guys I worked with at JLL who offered me an opportunity at the new firm he and a few others had started. It was a boutique mortgage banking group where I spent the first part of my career,” says Gallagher. A year later, the plot thickened as Sacks visited Dallas for an unrelated job interview and connected with Gallagher. “Jake convinced me to come meet his mortgage banking team. I quickly realized how much opportunity there was at his powerhouse boutique and accepted a job offer there,” he says. In another twist and total coincidence, one of Hamilton’s partners is a cousin of Linhart. In 2020, Linhart sold his interests in ViaWest and had the idea to form a real estate incubator, while Gallagher and Sacks contemplated starting a single-tenant platform back in Phoenix. “Ben and Jake bounced the idea off of me and I was very interested,” says Linhart. “There was a certain level of inevitability to them being successful once they were focused on the right opportunity. Ensuring they are pointed in the right direction and asking the right questions is an important part of my role.”

Gallagher. “As many deals moved to the sidelines, people’s calendars cleared up. That made for open season when it came to making calls and getting our name out there.” “Most people were more accessible and reflective during the lockdown, which ended up being a stroke of luck for us,” added Linhart. Alignment’s business model and strategy also proved timely during the onset of the financially tumultuous times caused by the health crisis. “Our firm’s overall objective of economically empowering CRE tenants became unexpectedly potent during a time when access to liquidity could dictate the success or failure of many businesses impacted by the crisis and the lockdowns,” explained Sacks.

“I have worked on several entrepreneurial ventures over the past 20plus years and I cannot emphasize enough how exciting and energizing it is to be working with young entrepreneurs like Ben and Jake, they work as hard as anyone I have encountered.”

ALIGNMENT

Starting a commercial real estate venture is hard enough, but against the backdrop of a global pandemic, the job is monumental. Up to the task, though, the trio pushed ahead and found a silver lining amid the chaos of COVID-19. “Notwithstanding the terrible impact the virus has had on the world, the situation actually created a unique environment for us to thrive,” says © MPmedia, LLC 2020

TALENTS

With Linhart’s deep industry knowledge and Gallagher and Sacks’ entrepreneurial energy, Alignment is positioned for great success in the single-tenant space. “Jake and Ben have the hunger, drive, and curiosity to focus on the things I did one and two chapters ago. I can focus on leveraging the experiences, insights, and relationships I have made over the years to propel the venture and each deal forwards,” says Linhart. “Gary is the closer. He has the ability to get transactions over the goal line under the most trying conditions,” says Gallagher. “He is a crucial component of deal structuring, firm-level decisions, and relationship management with investors,” says Sacks.

OPPORTUNITIES

The team’s Sonic closing highlights the enormous potential available for Alignment across the country. “The first deal is always the hardest, and I am extremely proud of our ability to close our first acquisition with a great operator,” says Gallagher. “This deal demonstrates that we can align with franchisees through difficult times to help them monetize the value in their real estate to facilitate business expansion,” says Linhart. Already on the hunt for their next investment, the team is excited at the prospect of - Gary Linhart building their portfolio. “We are building relationships with several partners in our targeted industries which include drive-thru fast food, automotive and other durable and service-based retail, industrial and medical office, with a particular focus on dental and orthodontic clinics,” says Sacks. “Soon, we will be looking to expand our team,” says Gallagher.

FUTURE

Alignment is off and running thanks to the dedicated commitment of the three principals. “We enjoy working together, and each of us makes our company better,” says Gallagher. “While every day seems to bring another new twist in the world, we are grateful to be pushing forward and navigating this new business environment,” says Sacks. “I think over time it will be clear that 2020 was a reset year and a good time to start something new,” says Linhart.

Daryl

Burton’s New

Flite Plan

Phyxius, which in Greek means “put to flight,” is exactly what legendary commercial real estate professional Daryl R. Burton has accomplished with the creative FLITE Goodyear project. “FLITE Goodyear has 95 acres, in a rectangular shape, with 3,000 feet of frontage on Litchfield Road and a similar frontage on the Phoenix Goodyear Airport,” Burton says. “I believe FLITE Goodyear offers the West Valley the opportunity to showcase Arizona’s aviation history and provide functional, technology-driven space to growing companies. Firms can take advantage of the ability to hire West Valley residents currently commuting to Central Phoenix and the East Valley for work.”

Have You Leased or Sold Your Commercial Space Yet? THE PROBLEM

OUR RESULTS

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collaboration, successes and friendship. Here’s to many more years to come!

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PRE-FLIGHT CHECK

Started in 1993, Burton’s Reliance Management has grown its industrial footprint across the state “with over 90 different locations in Maricopa and Pima counties and offering over 2,700 industrial suites with bay sizes ranging from 400 to 250,000 square feet. “Since inception, the company (Presson Corporation/Reliance) has purchased, renovated, retained or sold nearly 200 properties, totaling approximately 15 million square feet in Maricopa and Pima counties,” he says. “Presson Corporation and its subsidiaries currently own more than 10 million square feet of industrial and mixed-use space and service 2,500 business tenants daily.”

TAKEOFF

A Canadian native, Burton headed to Greater Phoenix in 1984 with a dream to succeed as a CRE entrepreneur. “For me, moving to the U.S. represented freedom,” he says. “Prior to relocating, I read the book ‘Megatrends’ about the 10 American cities of the future. I toured all 10 cities that summer, cold calling real estate people ahead of time, as I traveled across the country. Eventually, I chose Phoenix as the best city for me.” Burton’s first venture took off quickly, and the future looked extremely bright for the talent from Vancouver. “With my equity partners, Sam and Brent Belzberg, I invested in various land projects and one master-planned commercial development which became the first home of the University of Phoenix. Sadly, my first company with the Belzbergs was wiped out during the real estate crash of the late 1980s,” he says. “With my negative net worth, I became a restructuring manager for the Belzbergs from 1989 to 1992, resolving real estate projects in Texas, California, Arizona and Washington states, including my own projects in Metro Phoenix. I also served as president of the then-‘Top 20’ homebuilder, Design Master Homes, for 18 months.” Undaunted and determined to be his own boss, Burton pushed ahead with Presson/Reliance and has not looked back. “We usually purchase properties in troubled economic times, and after renovating and repositioning the real estate, we sell

and try to retain management through our sister commercial management company, ACM, which operates an additional 4.5 million square feet of office, retail and industrial space,” he says.

FLITE GOODYEAR

Burton first acquired the FLITE property in early 2007 with Lockheed Martin serving as the anchor tenant – the successor company to Goodyear Aerospace—which has a robust history. “In 1941, the U.S. Navy started construction of the Litchfield Naval Air Station, a 758-acre military installation on land donated by Paul Litchfield, president of Goodyear Tire and Rubber. During the war years, the plant manufactured thousands of B-24 bombers for the Navy’s Pacific Campaign,” Burton says. “After the war (in 1948), the Goodyear Aircraft Company purchased the plant and refocused its efforts on radar technologies.” In 2016, the closure of several Lockheed Martin plants changed the course of Burton’s property and galvanized the organization of his own flight plan. Burton’s redevelopment plans would incorporate the property’s deep ties to aviation and aeronautics and authentically inform the design of creative office and industrial space. “FLITE Goodyear is a unique mix of 20 buildings, offering 200,000 square feet of office space and 800,000 square feet of industrial,” he says. © MPmedia, LLC 2020

”It was important to me to preserve Goodyear’s history, but more importantly to create a welcoming, attractive environment to young, growing companies in the West Valley.” - Daryl Burton

Burton began the renovation in 2017 and made a critical decision regarding the historic structures. “We had a simple choice. Demolish the former WWII facilities and start over or double down on the rich history of what has now become FLITE Goodyear,” he says. “We understand we took the ‘road less traveled’ in a metro area of limited historical properties.” Burton’s vision involved substantial work on the interior and exterior of the structures, including a demolition and repurposing of the 1940-1970 interior space and a renovation of the 1940-1970 exteriors. “We painstakingly cleaned and refreshed the brick exteriors, converted a 1940s 100,000-square-foot hangar building with a 56-foot ceiling from an office building into an iconic parking garage and event space,” he says. With Colliers handling the leasing of over 1 million square feet of office and industrial space, Burton is extremely pleased at the development and its acknowledgement of the site’s aviation roots. “It was important to me to preserve Goodyear’s history, but more importantly to create a welcoming, attractive environment to young, growing companies in the West Valley. FLITE Goodyear offers a wellness path, furnished outdoor collaboration areas and copious displays of public art with an aviation theme honoring the site’s history of flight,” he says.

CO-PILOT

On a commercial flight, every pilot needs a trusted professional at their side, a role assumed by Burton’s son, Daryl (DJ). “He joined the company four years ago after graduating summa cum laude with a double major in four years that included a mechanical engineering degree from the Arizona State University Ira S. Fulton School of Engineering, and a business management degree from the W.P Carey School of Business,” he says. Burton appreciates the unique strengths each degree brings to the table and how those traits shape the company’s trajectory. “Like me, DJ has always marched to his own drummer, but his engineering mind helps bring a more disciplined approach to our business. It is invaluable to have that balance between us, and it is a joy to work with him. DJ is diligent in learning how the company functions and identifying what he can do to improve it.”

FINAL APPROACH

FLITE Goodyear is now one of the West Valley’s most prominent office developments. Burton hopes to attract technology, aviation and aerospace firms to his master creation. “FLITE Goodyear is already home to over 60 companies with activities ranging from windshields for fighter jets, satellite radar systems, machine shops, gantry cranes, electric vehicles and manufactured homes,” he says. “This is a dynamic environment and one that appeals to the companies of the future while paying homage to the past.”

“This is a dynamic environment and one that appeals to the companies of the future while paying homage to the past.” - Daryl Burton

SPEC SUITES UNDER CONSTRUCTION! 1300 S. Litchfield Road Goodyear, Arizona 85338 flitegoodyear.com

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WEST VALLEY GAME CHANGERS 32

When the pandemic first hit Arizona in March, the commercial real estate industry went into crisis mode. Deals were put on hold, offices were shut down and nearly every industry had to adjust its way of doing business. Some industries fared well amid the “new normal” while others experienced monumental loss. One thing is certain, industrial emerged as virtually pandemic-proof, with the West Valley being the darling. The energy of Phoenix’s West Valley is absolutely unstoppable. The region’s large and diverse talent pool, affordable cost of living and doing business and availability of land and transportation has steadily grown the West Valley into a booming metropolis. In the following pages, read about three companies that have made the West Valley what it is today and their predictions for the future of the region.

GLOBE CORPORATION Globe Corporation has been a dominant force in the West Valley for several decades. While the company’s focus is predominantly industrial, Globe’s recent public/private partnership with the City of Goodyear to create a new city center, Goodyear Civic Square at Estrella Falls, will set the bar sky high for projects in the West Valley with the first true Class A office ever built in the Southwest Valley. George Getz Director, President and Co-CEO Globe Corporation

Michael Olsen CFO, Treasurer and Corporate Secretary Globe Corporation

Breaking ground Q1 next year, the first phase of Goodyear Civic Square at Estrella Falls will involve a 125,000-square-foot “classically-contemporary” four-story city hall and attached public library, a two-acre Civic Square Park, three-story 108,000-square-foot Class A spec office and a 900-space three-story parking garage.

Why invest in the West Valley? M: The West Valley’s workforce is virtually untapped. Studies done by CBRE show that 95% of the workforce in Goodyear and other West Valley cities commute several miles east for work. If you have ever tried that commute, particularly in the morning, you will quickly realize residents would rather work for an employer closer to their community. And the quality of the workforce, as demonstrated by some of the same research, is misunderstood. The West Valley population has surprisingly high discretionary income, and is a highly educated, deep workforce that can support a number of new employers. We will see that prove out over time, benefiting office, industrial, residential and retail alike. It’s a quickly growing population hungry for more employment, restaurants, retail and entertainment options. How has industrial improved due to the changes COVID-19 has brought to our lives? G: The industrial real estate market nationally continues to be a segment leader, not only in new construction but existing space absorption, with Phoenix being no exception. As companies look for an “E-tailing” solution to increase revenues, market share and profitability, the solution is key distribution locations and state-of-theart industrial buildings providing real-time logistics solutions getting their goods to the consumer. The impacts of COVID-19 have only accelerated the need for faster home and business delivery. Amazon is the 800-pound gorilla in the space, leasing and owning over 150 million square feet (moving quickly to 200 million) of industrial space, making it the largest tenant in country. Amazon moves very quickly when it finds a location to meet a desired delivery date. Whether bulk distribution or last mile, many other © MPmedia, LLC 2020

companies are following suit, with the most recent announcement of Five Below building a distribution facility in Buckeye. Industrial cap rates have also seen compression (sales prices increasing) as a result of long-term rent growth projections, lower interest rates and the desire for current income pushing investment capital further into this segment. The metro Phoenix market is increasing in stature institutionally, attracting investors the likes of KKR and Goldman Sachs, who have been snapping up assets. While the future is uncertain, what are your thoughts on Arizona and the industrial sector and/or CRE industry persevering through this difficult time? G: Money will flow where it is treated nicely. Buckeye, Goodyear, Tolleson, Avondale and Glendale have seen a surge in industrial activity over the past several years. As long as the state and local governments provide a competitive pro-growth attitude toward business, the West Valley markets will be the recipient of this economic shift. What was the most important thing you learned doing business during a pandemic? M: While crisis is the mother of invention, pandemic is the mother of remote workforce innovation. Technology has allowed certain businesses to function seamlessly with a remote workforce, while others cannot function at all or have been forced to close. The pandemic has caused a significant divide in winners and losers. The economy and markets have been surprisingly “v-shaped” through this crisis, but I fear that we have not at all seen the longer-term effects of shutting down so many businesses that have been on the losing side of this pandemic.

CUSHMAN & WAKEFIELD There is no doubt the industrial team at Cushman and Wakefield’s Phoenix office has the West Valley covered. Grit, tenure, teamwork mixed with Arizona’s pro-business economy, availability of labor and regional logistics advantages in the Southwest are a few of the reasons this team has prospered during the COVID-19 pandemic. While the future is uncertain, what are your thoughts on Arizona and the industrial sector and/or CRE industry persevering through this difficult time? Mike Haenel Executive Managing Director We are very optimistic about the industrial sector in Arizona especially in the Southwest Valley. E-commerce has never been more active, and we see this trend continuing for several years. Southwest Phoenix has available real estate at attractive prices, skilled and qualified labor, a pro-development business environment and close proximity to California. During the early stages of COVID-19, we leased the entire building to ABB (Cushman & Wakefield account represented by our occupier team). Currently, our Capital Market team is in the process of selling this asset on behalf of Westcore Properties. Our entire team has been involved in every real estate transaction since ATCO purchased the land. – Mike Haenel

How is pricing on industrial investment sales? Will Strong Executive Managing Director Core has gone basically unchanged, risk appetite is expanding and the risk premium is still unclear. We have a robust pipeline and have learned that credit offerings are preferred now, but any value perception with a deal increases demand. How has industrial improved due to the changes COVID-19 has brought to our lives? Andy Markham Executive Managing Director COVID has certainly brought changes to all walks of life not just real estate. One thing that a pandemic will confirm is that a person, company, or industry must be flexible with the ability to adapt or it dies. Virtual tours and zooms have become the norm. It has shown us that warehousing is an essential business and only going to get more robust. 3PLs, food service and e-commerce are going to grow exponentially. There is a whole new generation of people purchasing from their phones since COVID.

What was the most important thing you learned doing business during a pandemic? Phil Haenel Director It has been very tough to get deals done during the last 90-120 days. The most important thing I have learned is being persistent and grinding it out every day.

Greer Oliver Associate It has been difficult to maintain and develop in-person connection with clients and that conference calls are the new norm. I have learned that you have to stay focused on the present, be patient, and that this pandemic will not last forever.

PHOENIX WEST COMMERCIAL Bobbie Lorraine Mastracci, president and designated broker, and her team at Phoenix West Commercial has taken the West Valley by storm since 2012. The commercial real estate brokerage, located in Goodyear, specializes in retail, office, medical, industrial, farms, vacant land, investment properties and commercial leasing. Mastracci provides CEM with recent industrial insights and how they are seeing big demand for medical services particularly in Buckeye, the fastest growing city in America.

Bobbie Lorraine Mastracci, CCIM, SIOR President and Designated Broker Phoenix West Commercial

In June, Verrado enjoyed record-breaking new home sales; 25% of the sales were California residents moving and 15% were from Washington state. Doing the math, 40% of the homes purchased were from two other Western states.

Why invest in the West Valley? The West Valley has been a best-kept secret because of our culture and unique qualities. Its story is finally being told to the rest of the nation. The result? More than 51% of the current and future growth in Metro Phoenix will take place in the West Valley. We have the infrastructure in place and the land, and the cities are all pro-development. WESTMARC, led by Sintra Hoffman, is the leader in sharing the West Valley story as it has never been told before, representing all our communities in the West Valley.

Industrial has been the darling of commercial real estate during the pandemic. How has industrial improved due to the changes COVID-19 has brought to our lives? Industrial development in Phoenix has not slowed down. In March, we reached an all-time high for industrial construction, including 6.2 million square feet in Glendale and 2.5 million square feet in Tolleson. Throughout COVID-19, we have seen a surge in e-commerce like never before, creating an even tighter market in Phoenix.

What West Valley project are you most excited about? In early 2018, we started looking for a one-acre pad on which to build a 10,000-square-foot medical building. The cost for a one-acre pad was more per square foot than my client wanted to spend. He teamed up with another doctor and we located 4½ acres on which to build four, 10,000-square-foot medical office buildings. These will help them funnel into their retirement plan. Currently, they have two of the four buildings built and are 50% occupied. This should encourage many to consider Fields at Verrado and many other areas in the West Valley for medical and other businesses.

While the future is uncertain, what are your thoughts on Arizona and the industrial sector and/or CRE industry persevering through this difficult time? Arizona’s industrial sector has continued to thrive during COVID-19 as vacancy rates in the West Valley have risen slower than many areas in the country during the first two quarters. Investors see the promise in Phoenix. A perfect example is Amazon’s recent acquisition of 91.5 acres in the West Valley and Brookhollow Group’s purchase of a $42 million cold-storage facility in Tolleson. Source: Costar

Arizona and Metro Phoenix will continue to grow regardless of the pandemic. Many businesses and families are leaving their states to move to Arizona for the economy, quality of life, education and of course our sunshine – Bobbie Lorraine Mastracci, President and Designated Broker, Phoenix West Commercial © MPmedia, LLC 2020

GOODYEAR CIVIC SQUARE MCDOWELL ROAD & 150TH DRIVE

OFFICE PARKING GARAGE 2022 108, 000 SF CL ASS A OFF ICE COM ING

CAVE CREEK CAREFREE

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101 CAMELBACK RD

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125,000 SF, 4-STORY GOODYEAR CITY HALL BUILDING

SANTAN LEMA SCHOOL RD

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101

PAPAGO FWY

ARLINGTON

FOUNTAIN HILLS

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108,000 SF, 3-STORY CLASS A OFFICE BUILDING 347 CASA GRANDE

900 STALL, 3-STORY PARKING STRUCTURE 236 MOBILE

TWO ACRE CIVIC PARK

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347

CASA GRANDE

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THANK YOU

CUSHMAN & WAKEFIELD TOP EMPLOYER FOR U.S. VETERANS

VETERANS & OUR CLIENTS We want to thank TriWest Healthcare Alliance for being a valued client and allowing us to partner with you to secure your Phoenix HQ / 119k SF office lease. Thank you for your ongoing efforts serving the health care needs of our nation’s veterans. “Larry and his team have been highly responsive to every need we’ve had. Thanks to the Downey Team for helping us be successful.” Robert S. Wolpert, CPA | VP & Controller

“We value our relationships with those in our community. Mandy Purcell and Commercial Executive Magazine are an excellent reminder that we love our city and industry. Thank you CEM team.” The HMS Industrial Team specializes in the acquisition, disposition and leasing of industrial real estate and serves the needs of corporate, institutional and entrepreneurial real estate owners and users throughout Arizona and other national markets.

LARRY DOWNEY, CRE Vice Chairman +1 602 229 5833 larry.downey@cushwake.com

BRETT THOMPSON

Director +1 602 229 5983 brett.thompson@cushwake.com

The Downey Tenant Advisory Team provides occupancy solutions, business strategies, financial and operational objectives for our clients.

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CANDACE THRUSH

Client Services Coordinator +1 602 229 5937 candace.thrush@cushwake.com

MULTI-MARKET TENANT ADVISORY SERVICES PLATFORM

AGENCY | OCCUPIER

MIKE HAENEL

Executive Managing Director +1 602 224 4404 mike.haenel@cushwake.com

ANDY MARKHAM, SIOR Executive Managing Director +1 602 224 4408 andy.markham@cushwake.com

PHIL HAENEL

Director +1 602 224 4409 phil.haenel@cushwake.com

CICI CHABARRIA

Brokerage Coordinator +1 602 229 5909 cici.chabarria@cushwake.com

CAPITAL MARKETS

WILL STRONG

Executive Managing Director +1 602 224 4467 will.strong@cushwake.com

GREER OLIVER

Associate +1 602 224 4488 greer.oliver@cushwake.com

CONNOR HAY

Financial Analyst +1 602 229 5832 connor.hay@cushwake.com

cushmanwakefield.com

The

The saying “history repeats itself” resonates with us this year more than ever. Being cyclical by nature, the commercial real estate industry is no stranger to economic downturns. We knew another downturn would come eventually, yet we didn’t know what would signal it, when it would arrive and how bad it would be. Enter COVID-19. Commercial Executive Magazine talks with three veterans in the industry on their experience getting through the Savings & Loan Crisis and the Great Recession as well as their thoughts on the future of commercial real estate in a post-pandemic world.

Sharon Harper CEO and Co-Founder Plaza Companies As accomplishments go in Metro Phoenix commercial real estate, it is hard to top the profile of Sharon Harper, chairman, CEO and co-founder of Plaza Companies. Approaching 40 years at the helm of the mixed-use, office, medical office and senior-living powerhouse, Harper has succeeded with determination, adaptation, intelligence and old-fashioned hard work. “Plaza Companies was founded in 1982, and so I entered the industry at a time of real estate crisis,” she says. “We needed solid and financeable projects that could be successful, in spite of the awful and unpredictable market. We have always taken pride in our ability to navigate the volatility of the CRE sector.”

STARTING POINTS

Plaza Companies has 12 million square feet of property under ownership or management and a roster of some of the Valley’s most impressive properties, including SkySong, Park Central, Plaza Del Rio Campus, Vi at Grayhawk and Silverstone, Splendido Rancho Vistoso and TGen, the Translational Genomics Research Institute. “As we have done during the ups and downs of the past 38 years, Plaza Companies is focused on our people, tenants, buildings, partners and relationships to make strong decisions for a strong future,” she says.

PLAZA COMPANIES

Plaza’s achievements in the market are a testament to its team of distinguished professionals in construction management, brokerage, development and property management. Yet, business success first and foremost depends on leadership, a trait that Harper has honed throughout her career. “I recognized in the beginning of my career, and realize now, that the importance of focus, goals and persistence, based on a foundation of integrity and values, will always carry the day,” she says. Her strategic insight and vision were never on display more than during the Great Recession, as she reoriented the company’s market position to better capture opportunities. “I completely transformed the company business plan to ensure survival and future prosperity. I aggressively and proactively pivoted to a strategic and diversified business plan to ensure stability and ongoing success for the organization,” she says. “This diversification has clearly and strongly positioned the Plaza Companies long-term, and I would credit our ongoing success to this pivot and leadership strategy. We took a crisis and implemented foundational change.”

an uncertainty and has required leadership, decision-making, innovation in working and enhanced communications. And this pandemic has created a recession that is a reality as well,” she says. “The very structure of Plaza Companies positioned us to react extremely quickly, connect directly with our state leadership and our healthcare colleagues, and use our leadership to position our staff, buildings, tenants and all constituents to a safe and secure environment.” With a decades-long, dedicated commitment to Valley residents, Harper and Plaza took bold steps to bring support to the state. “I took a leadership role in securing PPE (personal protective equipment) from a global network, bringing in 11 million masks and other protective gear for our company, hospitals and healthcare providers, ASU, nonprofits, firefighters, law enforcement and our senior living communities,” she says. “Plaza stepped up on all fronts − within our company and within our community.”

FUTURE

With a sterling record of success in economic booms and downturns, Harper and Plaza are ready to emerge from COVID-19 stronger and more prosperous. “This is a difficult time, but the underlying real estate market seems to be persevering despite the challenges,” she says. “Moving forward, we will have to change the way we look at CRE to enhance the overall focus on health and wellness. Plaza Companies is already leading on this front, and we look forward to continuing to work with our partners to innovate.”

SKYSONG

No discussion of Harper’s career or Plaza Companies is complete without mentioning SkySong. The mixed-use property will include 1.7 million square feet at buildout with a vibrant composition of office, restaurant, retail, multifamily and hospitality, and is now pre-leasing for its sixth Class-A Office building. Opened amid the 2008 downturn, SkySong has become a nationally recognized model of development brilliance. “SkySong began with the innovative vision and challenge by Arizona State University President Dr. Michael Crow and the ASU Foundation, in collaboration with the City of Scottsdale and Plaza Companies. This is a unique and distinguishing partnership: university, municipal and private sector. Collaboratively, they performed in a way that unilaterally would have be very difficult,” says Harper. “It is a tribute to the vision of Dr. Crow and the ASU Foundation, the support of Scottsdale, and the relentless focus on the goal by Plaza Companies and partner Holualoa Companies.”

TIMELINE

The 1982 recession, the S&L crisis, the dot-com crash and the Great Recession. Harper has navigated these tumultuous periods and steered Plaza to victories on the other side. No stranger to adversity, Harper is once again ready to face the latest challenge, COVID-19. “The pandemic has created © MPmedia, LLC 2020

The Harper family at one of Plaza Companies’ many groundbreaking ceremonies, in the 1980s, this one for a senior living community. Back row left to right: Dr. Oliver Harper, Sharon Harper. Front row left to right: Michael, Christy, Lise, Joe.

ARIZONA’S MOST INNOVATIVE COMMERCIAL REAL ESTATE FIRM

SkySong, The ASU Scottsdale Innovation Center

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Plaza Companies has established a proud track record as a competitive, connected and conscientious real estate firm with partnerships Paradise Valley Medical Plaza

throughout the industries it serves. Plaza Companies is a full-service real estate firm specializing in the development, leasing, construction and property management of some of the most innovative real estate projects in Arizona. We specialize in taking challenges and turning them into opportunities, and seeing the potential in properties in a variety of different locations, sectors and sizes. As a result, our projects are helping drive the Valley’s growth and fuel Arizona’s economic development efforts.

For more information, visit theplazaco.com Park Central

ADVOCATE. ADVISER. ALLY. Being our clients’ best advocate, adviser, and ally owner and investor clients, and provide the best isn’t just how we do business – it’s who we are. options by tapping into our unmatched network of buyers, sellers and capital sources. With experienced experts in both debt and equity and investment sales, we’re a highly valued partner for Contact us to learn how we can provide certainty of clients in Phoenix and across the country. Together, execution and protection of your investments in any we focus upon ensuring exceptional service to both market conditions.

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James DuMars

Senior Vice President and Managing Director NorthMarq, Phoenix Office In the early 1990s, James DuMars learned a valuable life lesson that shaped his career in commercial real estate. “I was a college intern at an investment sales firm during the S&L crisis. As the market downturn persisted, I saw established professionals at the firm losing cars and luxury homes back to the bank, and in some cases even their life savings they had invested in overleveraged real estate,” he says. “Seeing this had a profound effect on me. Several years later when I was 31, I had my first big year as a top national producer for NorthMarq, and instead of spending on a new home and car, I took my first large bonus and paid off all my debts. This gave me clarity and allowed me to focus on my customers’ needs instead of worrying about my financial needs.”

STARTING POINTS

DuMars, the senior vice president-managing director, NorthMarq, Phoenix, has helmed the company’s Valley presence since 2001. Throughout the years, DuMars has assisted clients with several billion dollars in financing. “Established Class A multifamily near solid employment centers with a lack of developable land nearby is my favorite, but I’ll always give my full effort to help a loyal customer with any need they have,” says DuMars. “Due to COVID-19, lenders are pushing back on retail, hospitality and office, because of uncertainty about when the pandemic will end, and the economic and financial ramifications. Consequently, most of our production this year is multifamily refinances with a few acquisitions here and there.”

DuMars in 1986 at a residential listing for Merrill Lynch Realty.

MARKET SHOCKS

With over 1,000 annual CRE transactions exceeding $14 billion in volume, NorthMarq has consistently grown its brand footprint throughout market expansion and contraction cycles. DuMars, a 26-year veteran at the firm, has firsthand experience in the vicissitudes of CRE. “I have learned to accept that downturns are a reality, and no matter what anyone says there will eventually be one. You can never predict what the next catalyst will be: pandemic, debt crisis, tax law changes and geopolitical events, among others,” he says. “During the Great Recession, it was not easy seeing really good people lose everything. I personally had no debt, and our company had no debt, but seeing good people who in many cases were not overleveraged lose everything and not being able to help them was tough. I really hated to see all the fallout.”

DuMars with Sen. John McCain during his internship in 1989.

COVID-19

The emergence of the virus in the first quarter of 2020, and the subsequent economic lockdowns across the nation, caused enormous financial damage. “Needless to say, this is a deeply disturbing event unlike anything anyone was remotely prepared for,” he says. “NorthMarq responded by reassuring their employees that their jobs were secure. As for the business, our team opened up lines of communication with lenders to discuss the high probability of forbearances since tenants could not pay rent. It has been a surprisingly smooth experience. Consequently, there have been no foreclosures in our portfolio during this time.”

PREPAREDNESS

DuMars’ experience back in 1991 provided a blueprint for how to approach work and finances, and he stresses the importance of this lesson when he works with the current generation of young CRE professionals. “I know it is a tough time for some young people, but tough times are an opportunity to shape our financial values, reevaluate our relationship with money and remember after every downturn that there are always young people who become rising stars,” he says. “Be authentic, devote your time and energy to taking care of the customer and this will be a very rewarding and fulfilling career regardless of where we are in the economic cycle.”

FUTURE

With the COVID-19 narrative still unfolding, DuMars believes strongly in the resiliency of Valley businesses, consumers and the CRE sector. “There is still a lot of uncertainly with this pandemic. I say prepare for the worst and expect the best possible outcome. As long as the sun shines, Phoenix will always bounce back,” he says.

President Nathan & Associates, Inc.

Nate Nathan

A return to economic growth in the Valley is underway as individuals and business continue to adapt to the COVID-19 environment. As this new wave of expansion unfolds, Nate Nathan, president, Nathan & Associates, Inc., brings a unique perspective to this recovery cycle. “I have survived through five downturns, each one having its own distinct impact on my business practice,” he says. “As far as the pandemic is concerned, Greater Phoenix is going to become the hottest market in the United States. In my opinion, our market today is stronger than it was in 2004 and 2005.”

STARTING POINTS

Entering its fifth decade of operation, Nathan & Associates, Inc., continues to be the region’s most trusted and respected land advisory brokerage. “In forming the company, I chose to stay focused on what I understood, which was land and growth patterns,” he says. “I wanted to become the best in the business at one thing, and I never veered from that path.”

NATHAN & ASSOCIATES, INC.

When Nathan started his firm in December 1980, the U.S. economy was in the midst of a brutal mix of record inflation and high unemployment, as the “Misery Index” (sum of both figures) climbed above 20. “A mentor of mine invested $30,000 to help me form Nathan & Associates, Inc. I had no money and no debt. My investor was paid back nine months later,” he says. Despite the rough economy of 1980-1982, the decade of the ’80s overall was a positive mix of robust GDP growth, declining unemployment and a tamed inflationary environment. However, there were problems as well, notably the S&L crisis. “Between 1980 and 1986, the S&L situation afforded me the ability to work with loyal clients who acquired key properties, mainly in the Southeast Valley,” he says. “When the tax laws changed in 1986, you could sense there was trouble. I stayed very close with the various individuals in the S&L world as they navigated into new jobs with either the Resolution Trust Corporation (RTC) or other banks.” As the RTC worked through the financial carnage of hundreds of failed financial institutions, Nathan sensed there was a perfect storm of opportunity and took action. “I realized that with the freeway vote of 1985, I should concentrate my business practice on properties located in future freeway corridors. As properties located in these freeway corridors went back to the banks, I was incredibly determined in going after listings for those properties, which spanned throughout the entire Valley,” he says. “I spent from 1989 to 1993 brokering as many of the bank deals as I could. Having no debt, I was in the perfect position to capitalize off the crashing market and then the long-term recovery which occurred after 1994.”

ACHIEVEMENTS

Whether the challenge involved the S&L crisis, the Great Recession and now COVID-19, Nathan relies on his experience and instincts. “Regardless of market cycles, my work ethic doesn’t change. I keep a strong focus on my core business,” he says.

OPPORTUNITY

Even with the pandemic still unfolding, Nathan sees favorable conditions for the company to flourish. “We are currently expanding our offices so that each person has their own private office along with larger work areas for assembling materials to best market our master plans and listed properties,” he says. “Our team can work remotely, but our office environment

The young man who waited for the price of real estate to come down.

Over the years, Nathan has placed the firm’s brand stamp on some of the Valley’s most significant and high-profile developments. “We have been fortunate to be involved with terrific projects including Arrowhead Ranch, Estrella, McDowell Mountain Ranch, DC Ranch, Silverleaf, Superstition Springs, Power Ranch, Grayhawk, Eastmark, Cadence, Vistancia, Verrado, Rancho El Dorado, Mountain Shadows, Kierland, the Ritz Carlton, The Phoenician, and others,” he says.

is very conducive to social distancing. Fortunately, 2020 and 2021 could be two of the best years in our 40-year history.” As for real estate, Nathan is bullish, but does acknowledge challenges in certain segments. “The market in Arizona is going to be phenomenal in most categories. I believe the retail space, and some parts of the office sector, are going to be difficult to navigate in the near term,” he says. “The world has changed dramatically, but flexibility and adaptiveness will help people excel during these times.

Nathan & Associates, Inc., has navigated through both expansionary and contraction cycles by adhering to a disciplined strategy. “The key to land investments is that debt kills,” he says. “If you buy in the right locations, solve the infrastructure issues and secure your entitlements, you should be able to capitalize off the market changes.”

Nathan has long championed Greater Phoenix as a destination hub to work, live and play. “Individuals and businesses will flock to the Valley because of our quality of life, low state income tax, Arizona’s pro-growth outlook, weather and fantastic transportation corridors,” he says. “There is no over-building and incredible population and job growth.”

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TRATT PROPERTIES In 2008, at the early stages of the Great Recession, Jonathan Tratt, principal, Tratt Properties, LLC, developed the firm’s largest industrial building: 1.2 million square feet at West Mohave Street in Phoenix. “The logistics facility sat vacant for 30 months. I earned my Ph.D. in development during that time,” says Tratt. “Ultimately, Amazon signed a 10-year lease, and that transaction set the stage for the company to grow further in the Valley and other national markets.”

STARTING POINTS

Fast forward about a decade and Phoenix is back in a recessionary economy with COVID-19, but for Tratt and the industrial market, the story is different this time around. It was Feb. 25, 2020, and Tratt was on site for the groundbreaking of the largest spec industrial building ever built in the state of Arizona, the 1.3-million-square-foot Elwood Logistics Center. “I owned that site for eight years, and less than a month from the groundbreaking, Arizona was shut down due to the pandemic,” he says. “However, over the last six months, the environment for industrial and logistics properties has flourished. The e-commerce growth forecast for five years has occurred in less than half a year.” Expected delivery of Elwood Logistics Center is fourth quarter of this year. “I don’t see it taking 30 months, this time, to market and fill this Class A space,” says Tratt.

BACKGROUND

It took only two recreational visits to the Valley for Tratt to fall in love with the location. He moved to Phoenix in 1986 from Dayton, Ohio, with an entrepreneurial spirit to conquer the world of commercial real estate. His career began in brokerage at Iliff Thorn under the tutelage of Lance Ross, a longtime successful broker now with Ross Property Advisors. “We still have a great relationship all these years later,” says Tratt. After running his own brokerage, Industrial Brokerage, Inc., Tratt formed his current firm in 2000. “The development sphere had a creative and fun aspect that appealed to me,” he says.

TRATT PROPERTIES

Twenty years later, Tratt Properties has developed and acquired over 11.5 million square feet of institutional-grade logistics properties in key markets across the United States. © MPmedia, LLC 2020

Tratt owns state-of-the-art logistics and e-commerce properties in Texas, Florida and Indiana, and has designs on expansion in Ohio, Georgia, Kentucky and Nevada. “Phoenix is the only metro where we have conducted vertical construction, and will always be our home base, but we are ready to expand that footprint,” says Tratt. “We are pursuing opportunities in various metros with an eye toward purchases and development,” he says. To that end, Tratt – whose wife and three younger children (14, 12 and 7) live in Scarsdale, New York – commutes to visit his family and travels extensively to grow the company’s footprint. To aid in the success of these efforts, Jonathan has established a new, strategic partnership to ensure the firm’s long-term presence in the Valley. “I was fortunate enough a year ago to bring on David Mannion, a 20-year commercial real estate executive who formally served as head of capital markets for VEREIT, Inc., as executive managing director of development and portfolio management,” Tratt says. “Together, we are able to actively build in Phoenix and leverage growth in other markets in a way that would pose challenges as just one person,” says Mannion. “Tratt Properties is actively pursuing expansion in Greater Phoenix, and with my experience in capital markets, and Jonathan’s proven track record of success as a developer, there are tremendous opportunities in the e-commerce and logistics space for us to capitalize as a team.”

FUNDAMENTALS

With over 35 years in the CRE industry, Tratt points to three pillars which have provided the foundation for his professional accomplishments: Phoenix, NAIOP and his enduring Jewish faith. “The choice to build my career in Phoenix was the best decision I made. The Valley’s growth potential was vibrant in the mid-1980s, and is even more robust today,” he says. As for NAIOP, Tratt credits the organization with his professional development, as well as building the relationships which propelled the company forward. “It is the single best thing I have done to advance my career locally and culminated in 2017 with my serving as NAIOP’s chairman of the board nationally.” And as a Modern Orthodox Jew, Tratt’s devotion is crucially important. “My faith has helped guide me both in business and spiritually. When I combine this with my devotion to family and the two pillars above, it is the foundation of my career and the essence of who I am.”

ELWOOD LOGISTICS

The Elwood development demonstrates Tratt’s decades-long commitment to Greater Phoenix, not only in terms of projects, but in business relationships. “Renaissance Companies has been our construction partner in the Valley since our first project,” says Tratt. “We are so grateful for our years working with Tratt Properties,” says Kelly Pettigrew, president, Renaissance Companies. “We each hold quality, integrity and relationship as our highest priorities, and from that have built a wonderful track record of development achievements. We look forward to this same level of ongoing success in the future.” Tratt Properties has thrived through expansions and contractions due to the unwavering entrepreneurial spirit of its © MPmedia, LLC 2020

Above: Kelly Pettigrew, David Mannion Left: Jonathan Tratt

founder and his belief in the values of always doing the right thing. “That is one of the reasons I partnered with Jonathan,” says Mannion. “In his 20 years at Tratt, he has never defaulted on a loan or walked away from a broken development deal,” Mannion says. “He never fails to deliver. To do that – operating as a one-man band over two decades and through multiple economic and real estate cycles – is hard. Anyone who is in similar shoes understands that.”

FUTURE

1.2 million, 1.3 million … perhaps someday a 2-millionsquare-foot logistics development in the Valley. No doubt that project will come to fruition, and it is a good bet that Tratt Properties will be leading the charge. “Just about every institutional investor wants to get into industrial right now, but this sector is known to be traditionally risk averse. They want to invest their money with a firm like Tratt Properties – whose track record speaks for itself,” says Mannion.

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Anchored by a 20+ year track record, Tratt Properties is poised and proud to continue to move our legacy forward!

CVS Health Distribution Center 713,585 s.f. – Orlando, FL

Amazon Fulfillment

1,016,080 s.f. – Lakeland, FL

Best Buy Distribution Center 650,808 s.f. – Polk City, FL

Tratt Properties successfully develops and invests in large logistics and eCommerce assets in key markets across the U.S. Learn more at www.trattproperties.com

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