Issue 1, 2020

Block 23 New Kid on the Block Power Couples Two is Better than One © MPmedia, LLC 2020

1 CEM-AZ.COM • ISSUE 1, 2020

something’s different.

Performing for our clients at the highest level through a nimble and adaptable approach.

Experience the Difference.

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WILLMENG.COM | ROC #082904, Class B-01 Š MPmedia, LLC 2020

The small banks don’t understand you, and the big banks don’t try to.

At Alliance Bank of Arizona, we get it.

We bring you the best of both worlds: the capacity and sophisticated product offerings of a big bank along with the responsiveness and superior service of a more specialized institution.

Bank on Accountability

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

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, four years in a row, 2016-2019.

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IN THIS ISSUE

6

They Know Money

Three experts weigh in on the commercial mortgage industry

18

Broker of the Month

Creative placemaking is Steve Lindley’s bread and butter

36

Power Couples

Four inspiring couples balance demanding careers, love and family

Lunch with Vernon Swaback The renowned architect sits down with Mandy Purcell

12 Cover Story

Downtown Phoenix’s most anticipated project: Block 23

30 Rock Star

Danny Plapp is ViaWest’s up-and-coming star

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FOUNDER & PUBLISHER Mandy Purcell, mandy@mpmediaaz.com MANAGING DIRECTOR Karen Gallagher, karen@mpmediaaz.com EDITOR-IN-CHIEF Celina Busse, celina@mpmediaaz.com CREATIVE DIRECTOR Janko Katic, janko@mpmediaaz.com SALES Karen Gallagher EDITORIAL Celina Busse, Tim Randall GRAPHIC DESIGN & PHOTOGRAPHY Janko Katic 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

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© MPmedia, LLC 2020

Letter From The Publisher

“If you want to make history, you have to do historic things.”

- Kobe Bryant

A

s we begin a new decade, I’m reminded how much we’ve grown in the past 10 years. Our communities are thriving, our population has increased and our cities have become more innovative. It seems there is no stopping to what we can achieve, together.

Our cover story this issue dives into the historic and highly anticipated Downtown Phoenix project. Block 23 is a testament to the many great minds involved in the transformation of Downtown. Mayor Kate Gallego, Chris Mackay, RED Development and Colliers International walk us through the phases of Block 23, their involvement and the live-work-play environment that the project offers. Read the full story on page 18.

Featuring icons in our industry in an intimate setting, we introduce a new and ongoing section in the magazine called “Lunch With.” This issue, I sat down with Vern Swaback to chat about what inspires him, his time with Frank Lloyd Wright and his architectural legacy. Read “Lunch With” on page 6.

For a look at relationship goals in commercial real estate, look no further than our Power Couples feature on page 42.

We rounded up four couples that just might have it all: dual careers, family and love for each other.

As I look ahead at the coming year, I’m thrilled to continue highlighting the people who are making our community a better place. Thank you to Karen, Celina and Janko for all your hard work this issue.

Enjoy the issue,

Mandy Purcell Founder & Publisher

© MPmedia, LLC 2020

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CEM Team

Karen Gallagher

Celina Busse

Janko Katic

karen@mpmediaaz.com

celina@mpmediaaz.com

janko@mpmediaaz.com

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.

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.

Janko’s extensive background in art and fashion has brought Commercial Executive Magazine’s aesthetic to a new level. His vision for editorial photography and layout design shines throughout each page of the magazine. Contact Janko for photography or design related questions.

Managing Director

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Editor-in-Chief

Creative Director

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Ad be present, be relevant

Š MPmedia, LLC 2020

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Lunch With Vernon Swaback Vernon Swaback, founder of Scottsdale-based SWABACK architecture firm, is a renowned architect and visionary. Swaback was a mentee of the man called the world’s greatest architect, Frank Lloyd Wright. For nearly two decades, he studied at Wright’s home, “Taliesin West.” While there, Swaback gained priceless knowledge, experience and wisdom from one of the biggest names in American architecture.

© MPmedia, copyright MPmedia LLC 2020 2019

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Following his studies at Taliesin West, Swaback founded SWABACK architecture and planning firm while he was renting out a poolside cabana as his partial living and office space. Growing his company from a one-man shop to now over 40 employees, SWABACK has a diverse, competitive portfolio of award-winning and highly recognized projects.

Wright had an incredible influence on Swaback. After Wright’s death in 1959, Swaback became deeply involved in the Frank Lloyd Wright Foundation, serving as its chairman of the board and as its CEO in 2004.

CEM: What was it like working with one of the world’s greatest architects?

V: It was an honor, but it was also challenging, and it could also be puzzling. When I first saw him hold up a common brick in the air, as though it were some kind of golden chalice, and then to hear him say “A brick is just a brick, but oh what you can do with it.” This became far less puzzling and more of a gospel when I later viewed what he could do with a brick.

He could make magic out of the most common materials.

CEM: Among the people you have met, who has made the greatest influence on your life?

V: The first person to make that kind of impression was Frank Lloyd Wright, followed by my acquaintance with his friend, Buckminster Fuller. In “Bucky’s” words, he said “I can’t see what Frank sees in me, we are both so different.” They indeed were both different, but what they had in common was this seeing out-of-the-box exploration into areas of life that were far closer to nature than to the understanding of their human peers. They treated the present as a time of discovery, innovation and magic made possible by the application of design-based architecture and engineering.

CEM: What have you learned from your travels around the world?

V: Among the most memorable trips was the one I took with Mrs. Wright, along with a group of others, to meet with the Toyoko Inn Co. officials who were responsible for the fate of Frank Lloyd Wright’s Imperial Hotel. It was one of the only buildings to withstand the great Kanto earthquake of 1923, made even more interesting because he used a foundation system that had no prior usage and no reason to believe it would work, but it did.

To give a sense of some faith in himself, after the earthquake struck, he was contacted by the national press saying, “Mr. Wright, your building has been totally destroyed, how would you like to make a statement for the rest of the world to hear?” His response was (not having any facts on his side), “If you print that, you will surely have to print a correction because there is no way that earthquake could have toppled that building.”

It was an experience I will never forget, knowing I was probably one of the last people to eat in its dining room or to sleep in its treasured rooms. Also, to experience the variety of ways in which Frank Lloyd Wright took the common lava stone, having artisans shape it into sculptural works of art.

Although the building with its remarkable and innovative structural system was able to survive the earthquake, it could not survive the wrecking ball, which, prompted by economics, took it to the ground. It was replaced with a tall building which would require far fewer people to serve a far greater population. To whatever extent, this could be considered a small victory. A major portion of the building was reconstructed and is now on display at a park in Meiji Village in Japan.

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© MPmedia, LLC 2020

“It is my fundamental belief Frank Lloyd Wright’s life and work will be even more sought after, more influential, and far more understood in the future than he has already been in the past and present.” – Vernon Swaback

CEM: What decisions made in the past scared you the most?

V: Of all such decisions, the one that required a major leap of faith was to secure and take on the burden of a loan for more than $2 million. This may seem like nothing in the world of business today, but I was in possession of $1,500 at the time.

Every time I went to a bank, they said they would like to see eight months of profitable earnings, and I would say to them, “If you think you would like to see that, how do you think I feel?” In pursuit of this loan, I went to a variety of banks.

My persistence finally paid off and the loan was secured. That was followed by the start of construction on what is today the studio, but that security did nothing to calm my fears as to how I could ever pay off the loan. I first tried to figure out how much revenue I had to take in each month, just to make the payments, and nothing seemed to pencil out. But ultimately, I persevered.

© MPmedia, LLC 2020

CEM: When considering the future, what brings you the most optimism?

V: The firm is in excellent hands, thus freeing me to do things that are more self-initiated. Those other projects are made possible by clients who, along with their specific sites, specific budgets, hopes and dreams, laid the groundwork for the activities to follow. Being very different, the client (that I now seek to serve most) includes those that Frank Lloyd Wright referred to long ago as “our typical best citizens.” As I look to the future in general and perhaps the evening news in particular, there would seem to be little hope in which to build a future worthy of humanity, including that of our not yet quite United Nations. The focus of the evening news is more on the drama of disagreement and tragedy of what happened the day before. In my way of thinking, what the world needs now most of all is the vision of Frank Lloyd Wright, in which he saw nature as being the visible body of God, and architecture as human partnering with the understanding and gifts of nature.

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CBRE DEBT & STRUCTURED FINANCE Rocco Mandala & Team 2019 Production

$1,021,170,000 CLOSED!!

$70,000,000 San Valencia 382 Units | Built 2019 | Refinance Chandler, AZ

MEET THE TEAM

Rocco Mandala

Anthony Valenzuela

Dominique Damerell

Ann McCartney

Elliott Voreis

Joshua Manelis

Vice Chairman Rocco.mandala@cbre.com 602 735 1775

Vice President Ann.mccartney@cbre.com 602 735 1932

Vice President Anthony.valenzuela@cbre.com 602 735 5663

Sr. Production Analyst Elliott.voreis@cbre.com 602 735 1761

Vice President Dominique.damerell@cbre.com 602 735 1792

Sr. Production Analyst Joshua.manelis@cbre.com 602 735 5356

Š 2019 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this Š MPmedia, LLC 2020 document are the property of their respective owners. Photos herein are the property of their respective owners. Use of these images without the express written consent of the owner is prohibited.

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35 Transactions | 15 Lenders

Agency, Lifeco, Debt Funds, CMBS

$96,525,000

$17,00,000

$70,800,000

$64,686,000

X Phoenix Downtown Phoenix, AZ Multifamily 20 Story, 253 Units, 33K SF Office, 15K SF Retail Construction / Floating

$52,325,000

$24,150,000

$4,300,000

$56,350,000

$38,063,000

$40,875,000

$42,000,000

$30,700,000

$43,000,000

$12,250,000

$18,983,000

$19,797,000

$37,117,000

$35,350,000

Addison at Cherry Creek Denver, CO Multifamily, 560 Units Refinance / Fixed

Hayden Peak Crossing Scottsdale, AZ Grocery Anchored Center 145,161 SF Refinance / Fixed

$24,000,000

$102,100,000

Uptown Plaza Phoenix AZ Grocery Anchored Center 109,346 SF Refinance / Fixed

Continental & Carol Mary Phoenix, AZ Multifamily, 88 Units Refinance / Fixed

Five 46 Mesa, AZ Multifamily, 320 Units Acquisition / Floating

Reserve at Stone Hollow Charlotte, NC Multifamily, 194 Units Acquisition / Fixed

© MPmedia, LLC 2020

Courtney Vista @ Zanjero Glendale, AZ Multifamily, 308 Units Acquisition / Floating

Pillar Bella Vista Perioral, AZ Multifamily, 163 Units Acquisition / Floating

The REV Tempe, AZ Multifamily, 172 Units Acquisition / Fixed

Biscayne Bay Chandler, AZ Multifamily, 512 Units Acquisition / Fixed

Core Scottsdale Scottsdale, AZ Multifamily, 282 Units Acquisition / Fixed

Herriman Towne Center Herriman, UT Multifamily, 304 Units Acquisition / Fixed

Jefferson Chandler Chandler, AZ Multifamily, 283 Units Acquisition / Fixed

Liv North Scottsdale Scottsdale, AZ Multifamily, 240 Units Refinance / Fixed

Alta Drinkwater Scottsdale, AZ Multifamily, 277 Units Acquisition / Fixed

Central Park Houston, TX Multifamily, 424 Units Acquisition / Floating

South Valley Ranch Henderson, NV Multifamily, 292 Units Acquisition / Floating

The Lido Henderson, NV Multifamily, 113 Units Acquisition / Fixed

San Marbeya Tempe, AZ Multifamily, 276 Units Refinance/Fixed

602 735 5555 | 2575 E Camelback Rd #500 • Phoenix, AZ 85016

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They Know Money FALLING INTEREST RATES, AN INFLUX OF CAPITAL AND A STRONG BUSINESS OUTLOOK FOR ARIZONA MAKE FOR A COMPETITIVE LANDSCAPE IN THE MORTGAGE BANKING WORLD. WE HEAR FROM TIM STOREY, GANTRY, ANN MCCARTNEY, CBRE, AND NICK BARBARIA, ARRIBA CAPITAL, ON THEIR PREDICTIONS, CHALLENGES AND CREATIVE SOLUTIONS IN THE COMMERCIAL MORTGAGE INDUSTRY.

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© MPmedia, LLC 2020

Tim Storey Principal, Gantry

Founded in 1991, Gantry (formerly Newmark Realty Capital) is the nation’s largest independent mortgage banking enterprise. In 2019, across seven offices, the firm facilitated over $3.1 billion in mortgage transactions in market segments: office, multifamily, industrial, mixed-use and retail. In conducting the rebranding effort, “the name change turned out to be an opportunity for us to refocus on our core values and positioning in the commercial mortgage banking industry,” says Tim Storey, principal in Gantry’s Phoenix location. “After almost 30 years in operation, we were able to explore not only where we have been, but more importantly, where we are going in this quickly changing environment.”

mortgage activity. “The rate environment has contributed to the cap rate compression we have seen in recent years, helping to create value for property owners,” he says. “Owners in turn have the ability to refinance and take some equity off the table and/or sell their properties. In either case, the mortgage banking community has benefited greatly from these opportunities.”

Storey opened the Phoenix office in 2004, and over the last 15 years has personally amassed over $2 billion in originations.

“My specialty is working with a variety of insurance companies, banks, CMBS and other financial institutions in order to obtain optimal financing solutions for clients,” he says. “I am blessed to have two incredible business partners in Arizona (Patrick Barkley and Adam Parker) as well as the support and ability to collaborate within our office ecosystem.”

As for the Arizona outlook, Storey assesses a robust growth cycle in the coming years. “Individuals and businesses continue to move to Arizona in record numbers for a variety of reasons – climate, affordability and a pro-business environment,” he says.

“The state is a great place to live and work, and it has proven to be a great place to invest in commercial real estate time and again.”

A Greater Phoenix native, Storey graduated from the University of Arizona and entered the commercial real estate space in 1991 at CBRE in the mortgage banking division. “The industry was always interesting to me,” he says. “I had a number of part-time jobs in the industry throughout my high school and college years.”

The landscape of low interest rates, a strong economy and investor demand for assets provides a perfect confluence for a flurry of © MPmedia, LLC 2020

From the vantage point of competition, “we have to work very hard day in and day out to distinguish ourselves and our abilities, creating value in every transaction that we are fortunate enough to participate,” he says.

Storey’s business success is matched by a prosperous home life. “Spending time with family is very important to me,” he says. “I have been blessed in marriage and have two amazing daughters. At this point in my life, I guess I am most passionate about those things that revolve around family.”

As Gantry’s business continues to expand, Storey and the Phoenix office will be leading the charge. “In order to adapt, our firm is constantly evaluating the way we conduct business.

We are challenged to consider changing the way we have done business in the past,” he says.

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Ann McCartney Vice President, Debt & Structured Finance, CBRE

For an airplane to successfully take off, the pilot must reach VR, the rotation speed at which the captain pulls back on the yoke to enable the plane to become airborne. A pilot of 20 years, Ann McCartney, vice president, Capital Markets at CBRE, achieved liftoff in the commercial real estate space nearly three decades ago, and her distinguished record of accomplishments has her soaring above the competition. “There is nothing quite like the feeling of lifting off the ground and being responsible to find a small runway several hundred miles or several states away and landing as you had planned,” she says.

An industry veteran of the debt and structured finance sector, McCartney has finalized over $2 billion in transactions during her career. “I am fortunate to be on a team of six people, led by Rocco Mandala,” she says. “Everyone on the team works super hard, so the results are what set our team apart from competitors.”

Earning two degrees − a Bachelor of Science, Real Estate from Arizona State University and an MBA from Thunderbird School of Global Management − McCartney entered the industry through a research position at Grubb & Ellis. Subsequently, she held executive level positions at several prominent financial firms and brokerages before joining CBRE in 2018. “The company offers its debt and structured finance personnel a platform that is unsurpassed in the industry,” she says.

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Working across all market segments, McCartney and team source lenders for clientele, and screen potential borrowers for mortgage banking entities. “An ongoing challenge in our business is to convince the client that we can add value to a transaction, especially when they have only borrowed from the same lender for years and are used to dealing with them on a direct basis,” she says.

McCartney sees solid metro Phoenix fundamentals as a positive driver of growth in the CRE space. “I am optimistic about the decade ahead given where we’re at right now: low interest rates for the foreseeable future, healthy national economy, low unemployment rate and positive job and population growth in Arizona.”

As for compelling segments, she believes multifamily will continue to outperform. “Multifamily growth in institutional real estate has been the most significant change I have seen,” she says.

“This is tracked through the NCREIF Property Index, which totals the market value of all U.S. commercial real estate - $630 billion as of Quarter 1, 2019. For comparison, in 1983, the multifamily sector was just 2.1% of this total compared to 25.7% in 2019.”

In pilot terms, McCartney is nowhere near the maximum speed designated as VNE. “I feel like I have a great deal of runway left in my career and am looking forward to ongoing success,” she says. © MPmedia, LLC 2020

In 2012, Nick Barbaria flexed his entrepreneurial muscles and started the commercial real estate finance company Arriba Capital.

Eight years strong, the company is certainly living up to its name: upward, higher. “After learning the ropes, I decided to step out on my own,” says Barbaria, the company’s president. “We have a talented team of professionals who are skilled at solving client financing challenges through a combination of creative solutions, broad access to capital and unrivaled execution.”

Arriba Capital is a fully integrated, commercial real estate finance and investment company, which provides asset management, investment banking, capital markets services and advisory solutions. While headquartered in Scottsdale, Arriba operates across the country. “I like to think we are more well-rounded than most local shops because we work nationwide - only about 10% of our overall volume every year comes from Arizona,” he says.

“Working nationwide opens our eyes to different techniques and structures that developers are using in markets outside of Arizona.”

A Valley native, Barbaria earned a business finance degree from Arizona State University, and later a Master of Business Administration degree from Thunderbird School of Global Management. “In my senior year of undergrad, I interned at a commercial mortgage brokerage and then eventually got a job there out of college,” he says. “In three years, I worked my way up to be an account executive.”

Armed with confidence, he launched Arriba with a strategy of providing customers a tailored, client-centric, value-add financing expertise that larger brokerages could not offer in the marketplace. “An important element of our success is technology.

We have invested heavily to try and stay ahead of the curve.”

Assessing the current commercial real estate sphere, Barbaria anticipates an ongoing cycle uptrend across segments. “Borrowers are taking advantage of the low rate environment, so there has been increased activity,” he says.

In this context, Barbaria is positioning Arriba to outperform the competition by targeting key strength asset classes. “We have been very successful in building out our debt platform for hotel investors, with a specific focus on limited-service, mid-market transactions,” he says. “We have closed over $500 million in hotel finance in the past four years and have a larger pipeline in 2020 than we have seen historically. Based on current supply and demand in the market, we are expecting expansion in the space over the next two to five years.”

With solid economic fundamentals in place, Barbaria and team are looking to gain market share in the next several years. “The Arriba team is excited for our growth prospects, we look forward to providing our robust suite of offerings to clients nationwide,” he says.

President, Arriba Capital

Nick Barbaria

© MPmedia, LLC 2020

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A whole different kind of mortgage banking firm.

We are Gantry, the new name and brand identity for the mortgage banking firm formerly known as Newmark Realty Capital.

Meet Our Arizona Team

• $3.1 Billion in Loan Production in 2019 • $13 Billion National Loan Servicing Portfolio As our industry consolidates and becomes less personal, we push ourselves to ignore convention, to set a high standard and to always prioritize people ahead of profits.

With 30 years of experience and an extensive lineup of lenders, we’re committed to constructing the best deals for our clients. For those seeking a partner that delivers more, we’re a little different. The Right Kind of Different.

Patrick Barkley (602) 374-7806 pbarkley@gantryinc.com

Recent Transactions $15,550,000

CMBS Mixed-Use Property Scottsdale, AZ

$14,3000,000

Life Insurance Industrial Building Phoenix, AZ

$25,450,000

Agency (Freddie Mac) Multifamily Property Las Vegas, NV

$4,600,000

Adam Parker (602) 354-5275 aparker@gantryinc.com

Bank Multifamily Property Phoenix, AZ

Please visit us at gantryinc.com to see all the ways we’re building 16 the future of mortgage banking.

Tim Storey (602) 374-7854 tstorey@gantryinc.com

© MPmedia, LLC 2020 Dan Monte (716) 510-7886 dmonte@gantryinc.com

At Tango, we’re more than just your Tucson broker, we’re your partner in success

www.tangocommercial.com

Tom Hunt | Designated Broker and Partner (520) 288-1231 tom@tangocommercial.com © MPmedia, LLC 2020

Bob Davis | Associate Broker and Partner (520) 906-5682 bob@tangocommercial.com

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NEW KID ON THE

BLOCK

BLOCK 23 HAS ARRIVED

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© MPmedia, LLC 2020

Mayor Kate Gallego and Bob Mulhern

T

he most coveted address in the Valley may very well be 101 E. Washington Street in Downtown Phoenix. “Block 23 is a conglomeration of 230,000 square feet of creative office space, 332 luxury urban apartments, and 14,000 square feet of additional retail and restaurant space,” says Todd Noel, senior executive vice president, Colliers International. “The 67,000 square-foot multilevel Fry’s Signature Marketplace onsite is Downtown’s only full-scale grocery store.”

Starting Points

The vision of RED Development − the Phoenix-based full-service real estate firm responsible for landmark projects including CityScape, Aspen Place at the Sawmill and Camelback Colonnade – is for Block 23 to bring a transformative presence to the urban core. “The project was developed in three phases,” says Mike Ebert, managing partner at RED. “As each phase opens, we look forward to seeing the impact this destination will have on the community.

We aim to continue to attract the best local, regional and national tenants to improve the daily lives of those who live, work and play within this vibrant city.”

grocery store by Fry’s Food Store, which opened to the public last October,” says Ebert. The second phase is The Ryan, a 332-residence apartment community by StreetLights Residential, which began pre-leasing in November with the first move-ins expected in March 2020. The Ryan will offer studio, one- and two-bedroom residences ranging in size from 576 to 1,649 square feet. The final phase of Block 23 is the nine-story office tower with ground-floor retail and restaurant space that will begin to open later this year and has signed leases from WeWork, Ernst & Young U.S. LLP (EY) and Blanco Tacos + Tequila.”

Block 23

Situated in the thriving Downtown hub just blocks away from Chase Field and Talking Stick Arena, Block 23’s design and offerings command attention and laudations. “Block 23 is ‘ground zero’ as it relates to its location in Downtown Phoenix,” says Ryan Timpani, executive vice president, Colliers International. “You do not get more of an elevated urban environment, because of its immediate proximity to a variety of restaurants and a multitude of hotels and multifamily towers nearby. Its adjacency to CityScape is particularly convenient as the mixed-use project includes an abundance of restaurants that cater to breakfast, lunch, dinner and late-night activities.”

Approach

Block 23 represents the best of modern mixed-use design with its proximity and access to retail, office and multifamily.

“The initial phase of Block 23 is the area’s first long-awaited © MPmedia, LLC 2020

Block 23, February 2018

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Jeff Moloznik and Chris Mackay

Grocery

While a grocery store may not seem to be the sexiest of commercial real estate offerings, in the case of Downtown and Fry’s, the site is certainly turning a lot of heads. “The biggest missing component to downtown has been a grocery store,” says Jeff Moloznik, vice president, RED Development.

“The most notable addition to the Block 23 project is the 67,000 square-foot Fry’s Food Store, in the heart of this onetime food desert.” The new store, which opened in October of last year, unveiled innovative design and debuted new technology. “Customers can expect a unique shopping experience encompassing all the amenities of a typical Fry’s, including online ordering and pick-up, made-to-order sushi, convenient deli and bakery selections, a pharmacy that will provide a full range of health-care services and extraordinary customer service,” says Barry Shannahan, executive vice president, acquisitions and development, for RED. “Fry’s executives predict that the opening of the store will have a butterfly effect on the entire community, not only giving Downtown residents the convenience of walking or using public transit to get groceries, but also giving residents farther out more reasons to come downtown in the first place.”

RED Development

Acquisitions, development, leasing and asset management comprise the competencies and capabilities of the RED Development team. The company’s footprint of projects extends across eleven states: Arizona, California, Colorado, Florida, Indiana, Missouri, Nebraska, Nevada, Texas, Utah and Wisconsin. With 12 sites in the Valley, RED Development’s commitment to Greater Phoenix is certainly apparent. “Block 23 is the latest installment of a commitment first made by RED in 2010 to redefine the possibilities of what downtown Phoenix could and would become,” says Bob Mulhern, senior managing director, Colliers International.

“Our team worked tirelessly, sometimes arriving at 4 a.m. for daily project meetings with our building GC and TI contractors to get everyone involved so we can meet the tenant’s commencement schedules,” says Ryan O’Connor, director of leasing, RED Development. “It took tremendous vision and risk to advance the development of CityScape and Block 23, and now their combined impact and influence have become the dominant force powering downtown Phoenix as a captivating destination for so many outstanding organizations and residents,” says Mulhern.

“Phoenix is the fastest-growing city in the U.S., and Downtown Phoenix is on fire, continuing to thrive on the ever-changing demographics of the workplace. Tenants today value amenities, availability of parking, community and philanthropic efforts. RED Development understands this and shaped Block 23 to meet this demand. Recently, the CEO and COO of a Midwestern fintech company were looking at Downtown Phoenix as a site for their first western office. They said that they were walking around RED’s CityScape and Block 23 at lunchtime and looked at the crowds heading to restaurants, sitting in patios, and said, ‘This is the place we have to be.’

They now have their largest satellite office in Downtown Phoenix. “

- Chris Mackay, City of Phoenix Community and Economic Development Director

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© MPmedia, LLC 2020

UNPARALLELED SIGNAGE IDENTITY OPPORTUNITY

#1

FASTEST GROWING CITY IN THE COUNTRY

27%

D OW N TOW N P H O E N I X C B D WORKFORCE has a growth

rate of 27%, which is faster than Old Town Scottsdale (24%) & North Tempe (20%)

$200+

per month MORE AFFORDABLE LIVING compared to Old Town

Scottsdale & North Tempe

200+

RESTAURANTS in Downtown Phoenix, higher concentration than Old Town Scottsdale & North Tempe

ASU

#1 ASU MOST INNOVATIVE SCHOOL IN THE COUNTRY © MPmedia, LLC 2020

#1

#1

289

1ST & ONLY

WALK SCORE IN GREATER PHOENIX (94)

EVENT DAYS & NIGHTS PER YEAR

GROCERY STORE IN DOWNTOWN PHOENIX

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Features

Creativity is on full display at Block 23 with a plethora of options and intriguing elements. “The building boasts the largest floor plates in Downtown Phoenix with exceptional efficiency that employers are drawn to. Floor-to-ceiling glass, and high ceilings, lead to the office environment that caters to today’s corporations as they strive to attract top talent,” says Timpani. “Block 23 is one of the only buildings in the Greater Phoenix MSA that has an elevated amenity deck, and it acts as a true differentiator for tenants searching for communal space for their employees. An employee’s ability to walk their dog or challenge co-workers to a game of pickleball on their lunch break reinforces the live-workplay concept within the project.” Another unique feature, “Block 23 offers unparalleled branding opportunities through rooftop signage and one of Arizona’s largest LED media boards,” says Vanessa Williams, director, Business Development and Strategic Resources, Colliers International SW Region. “It is perfectly positioned on the southeast corner of Block 23, facing Talking Stick Arena. This towering digital billboard is 46 feet tall by 90 feet wide and spans three levels of Block 23’s parking garage.”

and an estimated $234 million in annual economic output. The mixed-use project has the potential to generate $76 million in net additional sales taxes to the city of Phoenix over 50 years.”

Live-Work-Play

Whether a resident of The Ryan, an employee working in the creative office environment or a patron looking to enjoy a night out, Block 23 offers something for everyone.

“Downtown Phoenix provides a superior live-work-play environment over any competing submarket in the Greater Phoenix area,” says Noel.

“The existing housing inventory plus another 5,000 units coming online coupled with the available and everincreasing retail amenities complement the employment centers to form a true ‘24/7’ experience.”

By the Numbers

Block 23 sits in the heart of a thriving and dynamic Downtown. The numbers tell the story: 149 annual sporting events, two cinemas, bowling alley, comedy club, 10 museums, six art galleries and six performance venues.

Also in the area are five finedining locations, 40 bars, 196 restaurants, 25 coffee houses and 23 breakfast establishments. Over 300 high-tech companies also operate in the market.

Economic Impact

Future Block 23 is poised to deliver This world-class mixed-use robust commercial activity, development impresses with which will drive significant its grandeur, imaginative economic expansion. “As offerings, stunning the new core of downtown, design and tremendous Ryan Timpani, Todd Noel and Ryan O’Connor restaurants such as Sam functionality. As the metro Fox’s Blanco Tacos + continues to flourish, Block 23 is already assuming an iconic Tequila are headed to the block, which will increase foot traffic status.

“Now that the revitalization of Downtown is in and boost tourism in downtown Phoenix,” says Ebert. “When overdrive, we all have great stories to tell, and Block 23 is a you increase the number of visitors, you create a demand for part of it,” says Ebert. more jobs. We will be generating 1,300 new permanent jobs

“Block 23 is the latest installment of a commitment first made by RED in 2010 to redefine the possibilities of what downtown Phoenix could and would become. It took tremendous vision and risk to advance the development of CityScape and Block 23, and now their combined impact and influence have become the dominant force powering downtown Phoenix as a captivating destination for so many outstanding organizations and residents.”

- Bob Mulhern, Senior Managing Director, Colliers International 22

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“This mixed-use development is situated in the heart of downtown Phoenix and is a perfect complement to the well-established Cityscape community. The recent opening of Fry’s offers our Downtown residents and workers something they’ve never had before—a full-service grocery store within walking distance.

With the revitalization of Downtown Phoenix, Block 23 is rising to meet the demand for a one-stop live-work-play environment.”

– Mayor Kate Gallego, City of Phoenix

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VISION 2020 M U LT I FA M I LY

PROPERTIES

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F O C U S : S U N B E LT

VOLUME

E X PA N S I O N

UNITS

PORTFOLIO SALE 7 PROPERTIES

$1B+

9,349

2,239 2019 RESULTS

Devoted to partnerships and relationships. Cooke Multifamily Team is honored to work with such loyal and forward-thinking clients, who absolutely led to our success last year. We welcome the opportunity to work with you in exceeding your business goals, whether it’s individual multifamily assets or portfolios.

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EXPLORE: COOKE2020.COLLIERS.COM

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2019 TOP PRODUCERS A+

CONGRATULATIONS!

1

2

3

Todd Noel,

Cindy Cooke

Ryan Timpani

Senior Executive Vice President Office Properties

Senior Executive Vice President Multifamily Properties

Executive Vice President Office Properties

CCIM

4

4

5

Payson MacWilliam

Don MacWilliam

Rob Martensen,

Executive Vice President Industrial Properties

Executive Vice President Industrial Properties

Executive Vice President Industrial Properties

SIOR, CCIM

6

7

8

Mindy Korth

Brad Cooke

Jim Keeley

Executive Vice President Investment Properties

Executive Vice President Multifamily Properties

Founding Partner Scottsdale Senior Executive Vice President

SIOR, CCIM

9

9

10

Phil Breidenbach,

Kathy Foster,

Philip Wurth,

Executive Vice President Office Properties

Senior Vice President Office Properties

Executive Vice President Office Properties

SIOR

MCR.W

CCIM

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12

13

Paul Sieczkowski,

Jenn Thomas

Nick Ault

Senior Executive Vice President Industrial Properties

Senior Director Corporate Solutions

Vice President Retail Properties

SIOR

13

14

15

Daniel Ortega

Brian Woods

Matt Fitz-Gerald

Vice President Retail Properties

Senior Vice President Retail Properties

Senior Vice President Office Properties

Phoenix +1 602 222 5000 | Scottsdale +1 480 596 9000 Flagstaff +1 928 440 5450 | colliers.com/arizona Š MPmedia, LLC 2020

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Kaytlin Fox

E M E R G I N G

P R O F E S S I O N A L

Kaytlin Fox, development manager with Evergreen Devco, oversees commercial development projects in Arizona, Colorado, California and Utah. Treasurer of the Evergreen Development Foundation, member of the Valley Partnership Advocates Program Class of 2019 and member of Junior League Phoenix, Fox is dedicated to making an impact not just in her work, but also in the community.

How did you get into commercial real estate?

While studying business at W.P. Carey, I applied for an internship with a local broker/developer, Diversified Partners. I really enjoyed this first, small taste of the CRE industry and development world, so after graduating I took a position with R.O.I. Properties. That experience opened the door to an opportunity to work for Evergreen. I was hired initially as a project coordinator and promoted to development manager after a few years with the company.

Where do you see yourself in five to 10 years?

I hope to be working on larger developments, like Evergreen’s The Point at Eastmark in Mesa and eventually a project as large and impactful as our Clear Creek Crossing in Wheat Ridge, Colorado. I would also like to capitalize on my interest in sustainable development by working on more adaptive reuse and redevelopment of existing real estate.

What do you enjoy most working at Evergreen?

As a development manager, I enjoy bringing a project to fruition and seeing its success. I’m proud to be with a company that takes so much pride in its work.

We know that what we develop is going to be important and will change the fabric of the community. It’s important to us that the real estate we develop be a source of pride for its tenants and neighborhood and stands the test of time.

What is your ultimate career goal?

Ultimately, I want to be enjoying the work that I am doing while successfully balancing career and family life. I want to continue to develop real estate working on a variety of product types, and maybe even have my own development firm one day.

Outside of work, what are your passions?

I’ve been passionate about traveling over past few years. Most recently, outside of the U.S., I’ve had the opportunity to visit Guatemala, Scotland, Amsterdam and Colombia. I also play kickball in a coed Scottsdale league. It’s a great way to break up the week and get together with friends regularly. I’ve played with the same team, the Firebirds, for years now, and we have established a really fantastic group of friends and competitors!

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CATHY THURINGER

Trammell Crow Company

JEFF FOSTER Prologis

BUILDING…

RELATIONSHIPS naiopaz.org Follow us on Social Media:  @NAIOPArizona  @NAIOPArizona  naioparizona @naioparizona 28

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NAIOP Market Leader Series Panel Highlights Tempe Town Lake

Photo Credit: Twin Lens Studios

NAIOP Arizona, Commercial Real Estate Association, kicked off the quarterly Market Leader Series educational program on Jan. 16 with a seasoned panel highlighting Tempe Town Lake. The event was attended by approximately 70 NAIOP members and was held at the Biltmore Center Conference Room, MEET 24.

Providing insightful updates on the latest and future developments in the area were Brian Kearney, senior vice president with Catellus Development Corporation; Donna Kennedy, economic development director with the City of Tempe; and Adrian Evarkiou, partner with The Boyer Company.

The panelists discussed challenges they encountered while putting together large office and mixed-use projects but were optimistic about the potential of the lake. World-class amenities and the presence of Arizona State University help attract outstanding tenants from a range of industries. They said this allows Tempe to compete favorably with other markets such as Austin, Texas, and Portland, Oregon.

Phil Breidenbach, executive vice president with Colliers International, moderated the panel. Breidenbach is a NAIOP Board member and chair of the Education Committee. Kirk Fonfara, senior business development manager with The Weitz Company and an active volunteer on the Education Committee, helped organize the event.

The January Market Leader Series was made possible by NAIOP’s Arizona Chapter in partnership with Commercial Executive Magazine and with support from Colliers International, ViaWest Group and the Arizona Commerce Authority.

Š MPmedia, LLC 2020

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Presented by Willmeng Construction

Broker of the Month

Steve Lindley Artist: “A person who produces paintings or drawings as a profession or hobby; a person who practices any of the various creative arts, such as a sculptor, novelist, poet, or filmmaker; a person skilled at a particular task or occupation.” For Steve Lindley, executive director, Cushman & Wakefield, his artistry in conducting acquisitions and divestitures for clients of the firm’s Capital Markets Group is matched by his fervor for the arts and the discipline of creative placemaking.

“Arts, culture and creativity help to create places and developments where people want to live, work and play,” he says. “My wife Victoria is an artist, and she and I love experiencing arts and culture together–from high-art at great museums, to street art in our downtown galleries, to local music and festivals, to enjoying some of Phoenix’s great culinary artists at our incredible restaurants.”

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Starting

Background

Points

With 30 million square feet and $2.5 billion of office and industrial transactions accumulated over his 30-year career in brokerage, Lindley is one of the Valley’s commercial real estate maestros. “Commercial real estate is inefficient, sloppy, relatively illiquid and doesn’t price daily,” he says. “It is a tangible asset with real brick-and-mortar value. As a result, I can predict the market and help my clients take advantage of market inefficiencies.”

A San Diego native, Lindley attended Arizona State University, where he majored in finance.

Upon graduation, he pursued a career on Wall Street working for Drexel Burnham. “I started in the summer 1987 during the peak of the leveragedbuyout, junk-bond and hostile-takeover boom,” he says. “Three months later, I was working on the stock trading floor when the market crashed on Black Monday. By 1990, Drexel Burnham was out of business and I was back in the big skies and sunshine here in Phoenix.”

His three-year Big Apple experience provided strategic insight and the financial acumen to confidently enter the CRE sphere. “My Wall Street background gave me the market knowledge and skills to help my clients add value to their office and industrial investments,” he says.

Creative

Placemaking

In the office and industrial sectors, there is an ongoing and robust appetite from tenants for dynamic, energized and amenitized workplace locations and environments. Enter creative placemaking. “The term refers to how arts and culture intersect with successful development,” he says. “Office and industrial tenants are focused on attracting and retaining the most talented workforce. And, the buildings where these tenants locate need to be cool and authentic.

Smart creative placemaking strategies are one of the best ways to do this including arts, culture, design and creativity.”

As his career progressed, Lindley found himself increasingly attracted to the subject and found himself eager to incorporate the concepts into his work. “I started to notice projects I was selling that integrated art and design to attract tenants – this was well before people were using the buzzword ‘creative office,’” he says. “Now, my clients use me as an advisor for incorporating the benefits of arts and culture in their developments - like Sharon Harper at Plaza Companies and Stan Shafer at Holualoa, who continue to do phenomenal creative placemaking work at their Park Central property.” © MPmedia, LLC 2020

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Opportunities

Personal

Across Greater Phoenix, Lindley sees a thriving office and industrial sector with continued room for expansion. “To date, office tenant demand has been strongest in our more well-established high-amenity locations, mainly north Tempe and Scottsdale,” he says. “Tenants have also been leasing and building corporate campus locations in more suburban locations – the Price Corridor and Chandler, Scottsdale along the Pima Freeway and the West Valley.”

Approach

When not conducting multimillion-dollar deals, undertaking creative placement advisory or interacting in the community, Lindley relishes time spent with his family and friends. “I am proud of, and blessed by, the wonderful relationships I have made in my life,” he says. “Victoria and I love to travel and recently discovered Mexico City – we’ve been twice in the last year – with its gritty, artsy, creativity, stunning architecture and amazing restaurants.”

Future

For Lindley, creative placemaking is not a recipe, but rather a way of thinking. “Creative placemaking must match the culture and be tailored to the location and to the users in the development,” he says. “Urban core locales require a different style and taste than do suburban footprints. Each requires different creative placemaking strategies to attract talent and tenants.”

Unquestionably, Lindley fits the description of an artist, not only for the quality of his work in CRE, but for his role in bringing creative placemaking guidance to his clients and delivering art and creative energy to the community.

ULI2D Community

“There is a growing body of national research that shows that arts, culture and creativity can be a big benefit, including positive impacts on crime, health and income.

Our ULI team partnered with 14 of top mural artists, from Mesa and the Phoenix area, who met with residents to listen and create art that would tell the story of Mesa’s Guerrero Park neighborhood.”

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Mural Project

Participation and engagement in the community is one of Lindley’s passions, and the November 2019 unveiling of the Mesa ULI2D Community Mural Project is a terrific example of the dedication and effort he brings to the table as chair of the endeavor. “We established a goal for our ULI2D project to catalyze neighborhood revitalization through two-dimensional mural art,” he says.

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Through personalized service and unparalleled expertise, we offer customized solutions to help Arizona businesses thrive.

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Danny Plapp Director of Leasing , ViaWest

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For some in the industry, the call to be a professional in commercial real estate arrives later in their career evolution, while for others, the decision occurs quite early in their life.

Count Danny Plapp, director of leasing, ViaWest, in the latter camp. “As a Metro Phoenix native growing up in the Scottsdale area, I was captivated by the constant development happening all around me, including Kierland and Desert Ridge,” he says. “The locale became a prosperous hub attracting employment, retail and more housing. At that time, I was not sure how any of this actually got done, but I knew that I wanted to be part of it.”

Founded in 2003, ViaWest has rapidly grown its acquisitions, development, asset management and property management brand across the Valley and Southwest region. The firm owns or manages over 7 million square feet of space and has an acquisition and development portfolio of 65 projects exceeding $1 billion. Right in the middle of the action, Plapp oversees all leasing activity. “I have a broad range of responsibilities with the inevitable goal of ensuring our entire portfolio of office, retail and industrial properties are operating at the highest standards,” he says. “I play an integral role on every lease transaction that takes place throughout the portfolio.

“In 2019, we conducted over 90 transactions, which averages to be about one deal every three business days. That is a lot of volume, and I take pride in making each transaction a highly personalized and pleasant experience for everyone involved.”

After graduating from the University of Arizona with a degree in regional development, Plapp embarked on his CRE career in Tucson before moving back north to the Valley. “What most intrigued me about our industry is having the opportunity to directly impact and enrich the lives of my friends, family and community,” he says. “This sentiment still stands today. I truly enjoy seeing a development come to life and businesses (retail, office or industrial) thrive as they deliver enjoyable experiences and opportunities for everyone.”

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Over a 10-plus year career serving in positions at LevRose Commercial Real Estate, Colliers International, LGE Design Build and now ViaWest, Plapp has amassed an impressive record of over $750 million in lease transactions covering 10 million square feet. “I understand the importance of a good reputation, both personally and for the company,” he says.

Plapp feels he has found the perfect home at ViaWest and is excited about the future of the business. “ViaWest has built an unprecedented reputation over the past 15-plus years, and I am proud to be part of this cutting-edge team,” he says. “Since day one, I have been embraced with open arms by everyone at ViaWest. The best part of my role is that it allows me to work with the entire ViaWest family, including property management, engineers, investors, clients and brokers/tenants.”

The business of CRE is high energy and velocity, and time spent at home is a precious commodity. “I enjoy traveling and spending time with my wife Julie and my best friend, Pinkerton the Sheepadoodle,” he says.

Plapp also is deeply committed to making the lives of those around him better. “My personal goal in life is to help others enjoy their life to the fullest no matter what or where they are in their own journey,” he says.

Opportunity abounds for Plapp and ViaWest as the brand expands its operational footprint. “I enjoy coming into the office every day and working with a team that is incredibly fun, driven and respectful,” he says. “Because of this environment, ViaWest has been vital in my professional and personal growth over the past few years.”

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Josh Tammen

Marcus & Millichap HOSPITALITY

Joining the hospitality sector just four years ago, Josh Tammen, senior associate, Marcus & Millichap, has closed over 30 investment real estate transactions valued over $200 million. “What really drew me to hospitality was the complexity of selling not only the real estate, but also the business,” says Tammen. He attributes his early career success to his grandfather, who instilled in him the importance of hard work. “While it can be a blessing and a curse, I am never satisfied with what I have accomplished and am always looking to do more, achieve more and be the best at everything I do,” he says. Tammen’s work ethic is certainly paying off as he received Marcus & Millichap’s Rookie of the Year Award last year.

Who have been your mentors in the industry?

I am surrounded by the best in the business that push me to be not just a better broker but also a better person.

I owe a lot to my regional manager, Ryan Sarbinoff, and my mentor, Gordon Allred, who saw a diamond in the rough and helped polish it into what I am now. What’s most exciting is I feel that I am just getting started and fully believe my firm has the resources and the willingness to get me to the top of the brokerage community.

Can you give us an update on the hospitality market in Metro Phoenix?

Business growth, a warm climate and numerous outdoor activities drove improved occupancy in the Valley of the Sun, with the annual rate up 60 basis points year over year in June to 67.8%. Hotel demand is particularly strong in Scottsdale, where metro occupancy rose 170 basis points to 70.3%, its highest value since at least 2003.

How is Scottsdale continuing to attract tourists from around the globe?

I think Scottsdale has been able to fuel its demand by continuing to improve and add major attractions like the spring training stadiums, restaurants, casinos and constantly evolving Scottsdale’s entertainment district.

Old Town has become a mini Las Vegas or Hollywood in my opinion.

What other hot spots are attracting investors to Arizona?

I personally love the Sedona Market. Just a 90-minute drive from Sky Harbor Airport, Sedona hoteliers have seen double-digit RevPar growth YOY for the last decade.

With its extremely high barriers of entry coupled with Sedona’s low transactional velocity, it has become one of the most desirable markets to own a hospitality asset.

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Marcus & Millichap MULTIFAMILY

When Paul Bay, senior associate, Marcus & Millichap, entered his career in multifamily brokerage, he was balancing much more than the average broker. “At one point, I was juggling the completion of my MBA, the running of a business I co-founded which carried a rolling inventory of between 20,000 to 50,000 retail items throughout the year, the pursuit of my Arizona RE license and the courtship of my then-fiancée, now wife,” says Bay. His knack for performing well under pressure undoubtedly benefitted him in the long run. Bay joined Marcus & Millichap in 2017 and is now a team member of one of the most prolific apartment brokerage teams in the nation, the David-Gebing team.

What is it like working for a top-performing team?

The David-Gebing team is a family in the truest sense.

There is a genuine care for one another, and that translates into a dynamic of all members fostering each other’s success. There is a feeling of responsibility to perform at a high level and to align with the existing brand, which is founded on the principles of excellence and integrity.

What is your prediction for the multifamily market in the next decade?

On the micro Phoenix level, I expect that we will continue to see rental growth over the next decade. With net migration to the Phoenix MSA hovering around 100,000 people annually, there is a consistent demand for housing and not enough new construction to curb the demand. While I do expect growth to continue, it is unclear if the 10% yearover-year growth we are currently seeing will grow or even remain steady. I would encourage prospective investors to underwrite with a more conservative rental growth factor to hedge against any potential downside risk associated with rent growth. © MPmedia, LLC 2020

Paul Bay

With Greater Phoenix among the fastest-growing cities in the U.S., give us an update on the current health of multifamily investments in the Valley.

With year-over-year rental growth averaging nearly 10% Valley-wide last quarter, the national spotlight for multifamily investments continues to shine brightly on Phoenix. In the small- and mid-sized apartment space, we saw prices surge from an average price per unit of +/$105,000 in 2018 to +/- $131,000 in 2019. Despite this rapid growth, demand seems to remain strong and inventory is constricted. Deliverable assets in core locations with significant upside garner a slurry of competition and aggressive terms from buyers to ensure a high probability of performance. With permanent debt opportunities holding steady in most cases below 5%, a great area of opportunity in today’s market is identifying second generation, stabilized assets in transitioning locations which have light value-add and operational upside.

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ACCURATE BUDGETS. RELIABLE SCHEDULES. PREDICTABLE OUTCOMES.

LaytonConstruction.com

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REAL ESTATE INVESTMENT SALES • FINANCING • RESEARCH • ADVISORY SERVICES

THE BEST OF THE BEST CONGRATULATIONS TO OUR TOP ARIZONA INVESTMENT PROFESSIONALS OF 2019 Marcus & Millichap’s Best of the Best represents the highest level of investment professionals in the industry.

To be in this elite group of professionals means that these individuals truly epitomize the firm’s nearly 50-year commitment to unparalleled expertise gained though investment specialization, a culture of information-sharing and innovations in technology, research, and most importantly, client services. The success of our clients is celebrated by honoring our best of 2019.

CLIFF DAVID

STEVE GEBING

JAMIE MEDRESS

MARK RUBLE

PETER KATZ

Senior Managing Director

Senior Managing Director

Executive Managing Director

Senior Managing Director

Executive Managing Director

PAUL BAY

RICH BUTLER

CHRIS LIND

JOSH TAMMEN

HAMID PANAHI

Senior Associate

Senior Vice President

First Vice President

Senior Associate

First Vice President

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

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

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COUP LES Powerful couples have been an integral part of the history of our humanity and have inspired us since the beginning of time. From Julius Caesar and Cleopatra to Bill and Melinda Gates, money, success, family and happiness are deeply intertwined. Those couples who can channel their relationship into something greater, who can reach their career goals and ambitions while uplifting each other, is a testament to the saying, “two is better than one.” In the next few pages, we’ve focused on four stories of powerful couples in commercial real estate, and how they manage their demanding careers while making their love a priority.

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ary Shaw and Shannon Downs, owners of Arcadia Management, have more than one Arcadia reference point in their life. “We first met at Arcadia High School. Gary was a senior and I was a freshman. We were friends, and then we went our separate ways for quite some time,” says Downs. “But we were always part of the same community, and if we saw each other around, we would say hello.”

“Then we bumped into each other at the Phoenix Open. It took me a month to work up the courage to ask Shannon out on date, but I am glad that I did,” says Shaw. “We got married in 2017 and have six kids between us, just like the Brady Bunch,” adds Downs.

Shaw serves as president of Arcadia Management Group, one of the nation’s premier commercial property management firms, with a 40-million-square-foot portfolio.

“My mom (Peggy Burgess) started this business in 1986,” he says. “When I came to work for Arcadia, it was with an offer from my mom that she would ultimately sell the business to me someday. She calls me her exit strategy.”

As a partner, Downs brings a wealth of insight, expertise and experience to the organization. “Sales and marketing are definitely my primary wheelhouse, so I am applying that to help grow Arcadia Management. I could not be happier,” she says.

From day one, Arcadia’s focus has been exclusively on the property management business. “Our job as property managers is to be proactive, responsive and always on call for our property owners and their tenants,” he says.

“It is not always glamourous work like development or brokerage, but it is steady and rewarding, and filled with opportunities to apply the latest advancements to a traditional industry.”

The firm provides clients with a robust service line offering, which is built on a best-in-class innovation platform. “Incorporating new technology to make the client experience as efficient and effective as possible has been our strategy from the company’s inception,” says Shaw. “That was my mission all those years ago, and it is the same today. I do not see us ever backing down our drive to be on the cutting edge.”

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For any family, there is always a challenge in finding the right work/life balance. “With six kids, ages 8 through 17, they are pretty much what we do when we are not working. They are all at the age where their hobbies are our hobbies,” says Downs. “We are building our professional careers and our life on the home front together. The formula there is simple. We are partners in every way.”

As for that fine line between work and home dynamics, the couple believe they have the right mix. “Sometimes you just have to say, ‘We are going to talk about something other than work right now,’” she says. “But ultimately it comes back around to work usually, and that is because we both love what we do. We find it fun and rewarding with the benefits far outweighing the negatives.”

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The year 2020 looks to be another one of strong growth for Arcadia. “We want to continue to expand our footprint nationwide, especially in our biggest markets: Arizona, Texas, Utah, California, Nevada and North Carolina,” he says.

With the duo’s passion and drive, Arcadia is full speed ahead for years to come. “We will succeed as long as we can continue to maintain our core values, which are to be responsive and to operate according to the Golden Rule,” he says.

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Alexandra Loye and Scott Boardman

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T

he kiss that started Alexandra Loye and Scott Boardman’s relationship almost never happened. “We were great friends, but Scott was very apprehensive about dating someone in the business,” she says. “One night, he had me over for dinner and I said, “Let’s just kiss and see what happens.’”

Happily married since February 2016 with an 18-month-old son, Brock, it seems Loye certainly made the right move.

Loye, senior vice president, Colliers International, and Boardman, senior director, Cushman & Wakefield, are two of the industry’s young standout brokers. Loye operates in the healthcare and senior housing space, while Boardman navigates the office sphere. “Brokerage is both extremely challenging and rewarding, which is what makes having a partner who understands the business such an asset,” she says. “We lean on each other for support, encouragement and advice,” he says.

The couple’s reliance on one another is evident in their personal and professional lives. “Commercial real estate is a social business, which means nights out, networking and building relationships,” says Boardman. “He has introduced me to contacts and vice versa,” she says.

The balancing of work and personal space can be challenging, and Loye and Boardman do their best to ensure neither receives short shrift. “It takes work, but our goals are aligned to be successes at home and in our careers,” she says.

A little rivalry goes a long way, and there is no exception with this tandem. “We are two Type A’s,” he says. “He has tried to have me take the Boardman name, but I always say you should have married me before I built my brand,” she chuckles.

Family-centric activities are Loye and Boardman’s passion.

“We take walks, play golf together, ski and travel,” she says.

“We relish time spent together and with our son,” he says.

Given the vicissitudes of CRE, the pair understand the ebbs and flows of cycles. “This uptrend is in its 11th year, and while the fundamentals are still very solid, you sometimes worry about two breadwinners working in brokerage,” he says. “However, we know we can handle anything as a team and are well prepared,” she says.

CRE is a fast-paced world that both professionals enjoy, and in which both have secured great achievements. Whether Brock follows in Mom and Dad’s lead is still up for debate.

“He has time, but we tell him he should shoot for the stars in whatever he pursues,” Loye says.

Evenings are dedicated to family enjoying dinner together. Then when Brock goes to bed, work reenters the picture with one or both pounding out a project until the late evening. “We take our professions very seriously and want to be the best representatives for our brands and clients,” she says. “During that time, we also discuss bigpicture CRE strategies, current deals and the market,” he says.

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J

ulie Johnson and Jerry Barnier agree with the adage that a great marriage endures, because for each, their spouse is also the person they most want to spend time with. “Every day, we say how grateful and fortunate and blessed we are to be together and do lots of fun things with our best friend: our spouse,” says Johnson.

The workday does not end when the couple come home, as the pair discuss what events occurred in their business.

“We do talk work at home, but not a lot,” she says. “We do not purposefully limit it, but just talk about our day like any other couple and be there for support for any rare bad days and be a big cheerleader for sharing in successes.”

Some might consider that spouses working in the same industry could be a tough proposition, given the long hours and stressful conditions from time to time. Not so with Johnson and Barnier. “We have not had any challenges, but the benefits are many. We speak the same language, understand and support having to work late or attend events after work and always have a date for work events,” he says.

“Also, I can help promote Suntec Concrete to anyone I know who needs construction,” she says.

Moments together are an essential element of the pair’s happiness. “Our time as a couple is very precious and we love just hanging out together − it is our favorite cherished time,” she says. “We have six super fun grandkids, all in California, that we love to spend time with (and their parents),” he says. “We love to hike, bike, ski, watch football and other sports, garden, cook together, go to wine tastings, share special times with friends and spend time at our cabin in Colorado.”

Johnson and Barnier are excited about the future of their careers and their family. “When you have your best friend by your side, life is great,” she says.

Johnson, executive vice president, Colliers, Healthcare and Seniors Housing, and Barnier, founder, Suntec Concrete, are two of the commercial real estate industry’s premier talents.

Johnson has excelled in healthcare real estate for over 25 years, while Barnier has elevated Suntec to a national bestin-class concrete contracting brand. “Julie and I both believe that commercial real estate will continue at the high pace and good market it has been the past years of the recovery, particularly in the last few years,” he says.

As two of the Valley’s most distinguished leaders in their profession, Johnson and Barnier work tirelessly for their clients and understand the importance of encouraging one another in their respective endeavors. “We both know what each other goes through in a day. I have visited Jerry’s jobsites and I know how hard he works each day from early mornings to late nights and all the construction work, meetings, estimates and successes in between,” she says. “And Jerry sees me in my world and becomes Mr. Johnson. But with many people in the industry who know us both, we are just each other’s biggest cheerleaders.”

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© MPmedia, LLC 2020

49 Jerry Barnier and Julie Johnson

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Abby and Curt Kremer

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S Photo Credit: Mark Boisclair Photography

uccessful entrepreneurs possess a deep reservoir of motivation and inspiration. For Curt and Abby Kremer, the passion for their commercial real estate development and design firms emanate from a powerful place: family. “Our twin boys’ names are George and Oliver. They were less than a year old when I made the decision to break out on my own,” he says.

“Seeing them start their journey of life, I quickly realized my new journey was not one I was going about alone, so I decided to name the company after them.”

Since its inception in 2017, George Oliver has been garnering attention for their innovative designs and workspaces including The Quad, Casa, The Alexander, The Johnathan and Lofts at the District. “Our success has come from building the right team and trusting in our product. I have had the fortune over the past 10 years to spend a lot of time traveling to other markets, big and small, and learning firsthand what works and does not work in those marketplaces,” he says.

“It has been a huge benefit to the George Oliver team to take inspiration from every hotel, office building, restaurant and airport that Abby and I have traveled through over the years.”

Both graduates of Arizona State University, Abby followed up her bachelor’s degree in marketing with an interior design degree from Scottsdale Community College. “My passion for design actually started with fashion, beginning with jobs in clothing boutiques and then transitioning into home décor,” she says. “I knew that was what I wanted to do for the long term, so at 30 I went back to school to study interior design.

I have been able to work under some great minds and am so thankful that I made that decision.”

For Curt, his architecture degree landed him at Opus West overseeing large development projects and subsequently at EverWest Real Estate Partners, before his pursuit of George Oliver. “When I started George Oliver, I knew I was finally at a place professionally that I could take that risk and execute my lifelong goal,” he says. “I have worked at some very successful companies and had some great mentors along the way, but I never felt that I was able to leave my mark on those companies the way I am at George Oliver.”

Curt is the founder and managing partner at George Oliver, which purchases, repositions and operates buildings. Abby is the founder and lead designer at George Oliver Design, which oversees the design on all George Oliver buildings along with a number of high-end residential new-build projects. Their teamwork and passion for the business runs deep, as does their love for family and each other. “Because we are so passionate about what we do, it is easy for us to be sitting at the dinner table having a work conversation, which is not fair to our kids or our friends,” says Curt. “On the upside, we are fortunate to be doing what we love, and when that happens it is tough to turn off work at home.”

There is no set formula for achieving work/life balance, but like all great partnerships, Abby and Curt rely on each other for assistance. “As you can imagine, having young twin boys at home requires a lot of flexibility, but owning our own company gives us the freedom to handle whatever life brings us at home,” she says. “We also work hard to keep track of each other’s workloads. This helps us to plan and support each other when one of us is facing an upcoming deadline, and to pick and choose who is manning the ship at home those late nights.”

Both George Oliver business are off and running with a great deal of momentum, and the future looks bright for the businesses and their owners. It seems there is only one possible issue. “If we had a third child, we might have some explaining to do regarding the name of our companies,” he says.

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City to City Commercial

Take a look at some of the world’s premier companies − Starbucks, Costco, Microsoft, Apple − and an ongoing element of their institutional success is corporate culture. How a company operates is not directly measurable in terms of size, revenue flows, earnings or market share. However, the talent that drives organizational excellence comes down to culture. Christopher Benjamin, president/designated broker of City to City Commercial, believes this wholeheartedly. “We are a family business, and we have been since there were three of us in 1996,” he says. “We have added incredible team members that are, and will forever be, family. That mentality has helped shape who, and what, we are today.”

The Benjamins: Patrick, Christopher, Shane

City to City operates with 15 team members and provides top tier services including property acquisition and disposition, site selection, transaction management, project coordination, and valuation. “My background is acquisitions and development, which stems from me being a vice president for one of the fastest growing homebuilders here in Arizona back in the early ’90s,” says Chris. “It is a niche that has served us very well throughout the years. We have been fortunate to have branched out into other asset classes such as multifamily, office, industrial, retail and owner/user opportunities.”

With a client-centric focus on delivering best-in class commercial real estate advisory, C2C’s leadership is constantly raising the bar on delivering an unparalleled value-add proposition. “The day-to-day business decisions are handled and managed by myself, and my two sons (Shane and Patrick),” he says. “It is great having my sons be a part of the business, and they are not afraid to let me know when we need to adjust to keep up with

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the constantly evolving technology and trends. Old dogs can learn new tricks, it seems.”

With a booming Greater Phoenix economy, Chris and team have secured several notable wins over the past several quarters. “We facilitated the development of a new private racetrack development (Apex Motor Club) in the Town of Maricopa, provided representation for Blandford Homes on a two-tract purchase from the Town of Gilbert, and also were instrumental in the process of rezoning a South Scottsdale property near SkySong into a high-density residential development,” he says.

As for future potential, Chris believes there is a tremendous growth surge in the rental space. “The biggest interest that we have been seeing lately is focused on SFR (single family for rent) projects that mesh the affordability and convenience of typical multifamily, with the privacy that feels like that of a single-family home,” he says.

“Multifamily continues to have strong interest as well.” © MPmedia, LLC 2020

City to City thrives because of the team members, and Chris understands the dynamic. “We are only as good as our organization. A lot of time and effort has been put into creating an environment at City to City that makes our agents and staff feel a part of a team, no matter their background or experience,” he says. “We also work continually to ensure they will have access to whatever help or tools they need to find success. Our way of being and dedication to service for our team then flows over to our clients in a way that cannot be replicated.”

One of the many ways the phenomenal culture is demonstrated is in the celebration of success after a transaction concludes. “We have a large bell hanging in

the office in an area we call the Opportunity Zone that we ring each time an agent closes a deal,” he says. “During our biweekly company meetings, the agent(s) involved in each closing, share with the entire office, details about their recent closing, and are recognized by the entire organization for their contribution and successful deal.”

Company expansion is top priority in 2020. Chris says, “We are invested in adding quality individuals with the talent and attitude to match our service-oriented focus. When you join City to City you’re not just joining another team … you’re joining a family. It’s this approach that will help us not only attract top talent but also continue to provide the top-quality service that City to City is known for.”

Grand Opening

In September of last year, City to City moved office locations to embrace new and modern facilities and a work-life balanced culture. The company held a Grand Opening Event in January, inviting clients, family and friends to enjoy food and cocktails and introduce everyone to City to City’s brand new office.

“We are only as good as our organization. A lot of time and effort has been put into creating an environment at City to City that makes our agents and staff feel a part of a team, no matter their background or experience.”

- Christopher Benjamin President | Designated Broker City to City Commercial

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Housing Market Timeline “The housing market, touted as responsible for a full quarter of the jobs in Metro Phoenix in the mid-2000s (directly and indirectly), is back, healthy and growing. Its importance to other real estate segments, particularly retail, are clear, and as more buyers are pushed out to the exurbs, retail will follow and grow with population.” – Jim Belfiore, Founder and President, Belfiore Real

Many people don’t know this, but the housing bubble “burst” started in third quarter 2005. In 2004 and 2005, in the Metro Phoenix Area, homebuilders sold more than 50K single family detached homes, many to investors planning to purchase and “flip” the homes. Late in the 3rd quarter and into the 4th, over a six-week period, homes through the local multiple listing service, ArizoEstate Consulting na Regional Multiple Listing service, more than tripled from historically low figures. A quarter later, tens of thousands of homes were listed. Many of the homes sold in the second half of 2006 hadn’t yet closed because of build times. By early 2006, incentives were growing, new homes with executed purchase contracts were not closing as buyers saw the softening (buyers were canceling!) and better deals arising down the street. By mid-2006, builders started dropping base prices − a clear sign the market crash was underway.

The collapse in the housing market was the catalyst for the collapse in the U.S. economy, the Great Recession, and if you wanted to point to where it started, it was in Phoenix, Arizona. Our housing market was ground zero. The oversupply of homes was immense, so immense that despite plummeting prices, there was no reason to build homes. Empty homes were everywhere.

Builders were going bankrupt and banks were getting a tremendous number of homes back to sell, and many were new.

2009

Around this time, in 2010, Arizona passed the strongest anti-immigration bill in the U.S. The bill, from my perspective, was a move to eliminate competition from the labor market. This resulted in many illegal immigrants, some that were laborers in the home-building industry, leaving the state. While this was not necessarily a problem for the construction industry in 2010 because the industry was not building a lot of homes, it is a challenge that lingers today, as the industry struggles to fill a huge labor gap now.

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In the spring of 2015, demand shot upward. Demand has grown every year since.

Demand has grown by 41% since 2015, and it continues to grow. It’s fueled by historically low mortgage interest rates, a healthy market for jobs (more jobs than people to fill them), growing incomes, population growth and the largest population of up-and-coming homebuyers, millennials. Twice as many home sales have taken place over the last 12 months than took place in 2014.

2015

2019

Demand is sky high relative to a decade ago, but in historical terms, demand is below average. On average over the last 40 years, about 29,000 permits have been issued in the Metro Phoenix Area for new homes. In 2019, we estimate 25,200 were issued. We anticipate housing demand climbing to a level of 29,000 − the long-term average − over the next three to four years.

The challenge today is not demand. Demand is plentiful and will continue to be so. Supply is extremely limited. The resale market, according to resale resource Cromford Report, has just 16,000 units for sale on ARMLS. Builders have around 2,500 speculative homes (inventory homes) for sale, around the same amount they had for sale four years ago. Builders have a 45-month low in ready to deliver supply, despite demand being 41% higher than 45 months ago. The challenge is a lack of labor − not enough people to develop sites and build homes. The labor market is so tight, concrete companies cannot find truck drivers to deliver concrete, and builders cannot keep enough laborers on site to build homes. Labor prices have driven up the cost of building significantly over the last five years.

2020

Although homebuilders are selling only about half of the homes sold each year in 2004 and 2005 − peak years for the industry − the housing market is healthier, with demand growing and supply in check. Builders are expanding outward, expanding infrastructure and stretching the boundaries of where people live to include previously under- and unpopulated desert areas. Retail services are likely not far behind, and other commercial services are surely to follow over the next decade.

Number of Sales

Metro Phoenix Area Cumulative New Home Sales - Preceding 12 Months

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Month - Year

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56

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57

58

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