Issue 2, 2019 by Commercial Executive Magazine

Related Group Jorge Pérez and Steve Patterson

Will Strong | Broker of the Month Strong talks industrial, investments and more © copyright MPmedia 2019

1 CEM-AZ.COM • ISSUE 2, 2019

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SPRING ISSUE

16 18 24 30 32 38 Built to Last

Wolverine Builders expands as a family, team and brand

Cover Story

Jorge Pérez and Steve Patterson reveal plans for the Valley

Hines Goes All In

Chris Anderson, Brandon Dillingham and Robert Trujillo are three-of-a-kind

Emerging Professional Mollie Zemer with Barclay Group is a rising star in development

Will Strong

Broker of the Month talks more than just business

The Future of CRE

Leroy Breinholt with CPI gives his predictions

EXECUTIVE PUBLISHER Mandy Purcell, mandy@mpmediaaz.com MANAGING DIRECTOR Karen Gallagher, karen@mpmediaaz.com EDITOR-IN-CHIEF Celina Busse, celina@mpmediaaz.com CREATIVE DIRECTOR Zane Bolen, zane@mpmediaaz.com SALES Karen Gallagher EDITORIAL Celina Busse, Tim Randall GRAPHIC DESIGN Zane Bolen PHOTOGRAPHY Zane Bolen

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

“Learn the rules like a pro, so you can break them like an artist.” -Pablo Picasso

Letter From The Publisher

ushing the boundaries in business and life takes a certain type of person. We’re all familiar with those special individuals who constantly better themselves and the world. I’m excited to bring Phoenix the first exclusive interview with Jorge Pérez and Steve Patterson of Related Group. Read all about the renowned “Condo King” and the company’s $500 million impact on the Valley on page 18. We all love to look back at photos and reminisce. Then & Now highlights three industry leaders who have made a name for themselves in CRE over the past few decades. Check out the nostalgic feature on page 11. Our Broker of the Month this issue is Will Strong with Cushman & Wakefield. Read about his grit, grind and industrial investment endeavors on page 32. Executive Council 70 (EC70) has a significant number of members in the CRE industry, including Strong. Read about the organization’s signature event The Original Taste on page 36. What would Commercial Executive Magazine be if we didn’t push the limit ourselves? For a creative take on CRE, check out CPI’s Leroy Breinholt on page 38, Hines on page 24 and a unique Sock Challenge on page 8. It’s that time of year again where everyone in CRE is out and about. Check out recent events the CEM team has attended on page 48. We are starting to gear up for our annual Fall Forum so don’t forget to save the date! It will be Wednesday, October 30th at The Camby. Please contact Karen Gallagher for sponsorship inquiries: karen@mpmediaaz.com.

Enjoy the issue,

Mandy Purcell Executive Publisher © copyright MPmedia 2019

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Craziest Socks in CRE

Can socks really help close a deal? We’re not talking about just any old socks. We’re talking novelty, attention-getting socks. We’ve all seen them. They’re funky, loud and maybe even a little risky. Commercial Executive Magazine is asking: Who can match the socks to the CRE professional? It’s harder than it looks, trust us.

Grant Kingdon Lee & Associates

Jack Fijan Transwestern

Stay tuned for our next issue! We’re featuring a women’s footwear contest. Will they be sensible heels, flats, sandals or stilettos?

WIN A HALF-PAGE AD! The first person to email CEM at hello@mpmediaaz.com the correct match-up of each sock + CRE professional will receive a free half-page ad!

Ken Gatt Gatt Real Estate Advisors

Kevin Schillig MidFirst Bank

Mike Haenel Cushman & Wakefield

Nathan Pancrazi Keyser

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2018 TOP PRODUCERS CONGRATULATIONS!

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Todd Noel,

Cindy Cooke,

Ryan Timpani

Senior Executive Vice President Office Properties

Senior Executive Vice President Multifamily Properties

Executive Vice President Office Properties

CCIM

James Meng

Mindy Korth

Philip Wurth,

Senior Vice President Hospitality Properties

Executive Vice President Investment Properties

Executive Vice President Office Properties

CCIM

Greg Hopley

Jon Grantham

Rob Martensen,

Executive Vice President Office Properties

Vice President Hospitality Properties

Executive Vice President Industrial Properties

SIOR, CCIM

Brad Cooke

Phil Breidenbach,

Kathy Foster,

Executive Vice President Multifamily Properties

Executive Vice President Office Properties

Senior Vice President Office Properties

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MCR.W

Jim Keeley

Paul Sieczkowski,

Charles Miscio

Founding Partner Scottsdale Senior Executive Vice President

Senior Executive Vice President Industrial Properties

Executive Vice President Office Properties

SIOR, CCIM

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Phoenix +1 602 222 5000

William Littleton, SIOR, MCR, SLCR

Senior Executive Vice President Corporate Services

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One of the most notable women in healthcare real estate,

JULIE JOHNSON

principal with Avison Young, reflects on her journey to the top.

CRE first piqued Johnson’s interest In an industry as complex as “In healthcare, Johnson constantly in the late 1980s while selling the late ‘80s, shifts her business to where advertising to healthcare the market goes. “Over clients. Her clients decided computers weren’t used for the last several years, to pull their budgets due day-to-day business, therefore business has moved to Medicare’s change in away from physicians payment model to DRG no Costar or any other listing service. leasing space, to more (Diagnosis Related When I needed to look for properties investment sales for Groups). “I thought, if medical properties.” I’m ever going to do for a tenant I was representing, I drove says Johnson. That something different, constant adaptation now is a good time,” down every street in a certain boundary and ability to recalls Johnson. area going north-south and then east-west, problem-solve is what keeps Johnson Timing was also wrote down every listing broker and phone excited about going crucial in her first number from the signs and called each to work every day. year as a broker. “It was during the RTC one. After a few years, I upgraded to a The most rewarding days when real estate Dictaphone to record the property part of her work is the was not good,” says feeling she gets when Johnson. Her tenacious information. Makes Costar and helping business-owners attitude and creative and clients. “During a real personality helped her Loopnet look like a dream estate transaction, most of the through those early years. “I now!” time the client is very thankful felt like I was the queen of oneand appreciative,” says Johnson. year deals, but it was good because I “It’s really special knowing you’ve was still learning,” says Johnson. helped someone’s business.” When the market improved, Johnson adapted quickly and Johnson dedicates a portion of her time to mentoring moved from Parallax Properties to Terra Marketing, Lyon programs for NAIOP and the ULI/WLI Women’s Commercial (which was purchased by Colliers Macaulay Leadership Initiative. “Everyone I’ve been paired with Nicolls Inc.), CB and then DevMan. has many of the same entrepreneurial qualities I had early in my career.” says Johnson. “I love to see the next Along the way, Johnson met Tracy Altemus, who is still a generation, especially women, hungry to do more and do close friend of hers. “Healthcare brokers are a close-knit better. I think women are and continue to be so successful group,” says Johnson. “It’s been great having Tracy as a in commercial real estate.” mentor over the years to bounce ideas off of.”

SON N H O J J U LIE © copyright MPmedia 2019

‘89 13

96 ‘ T A P OB &

R 14

Patricia Watts and Rob Lyles, founding partners of Greenlight Communities, look back at their everevolving and cutting-edge business venture creating one of the largest and most respected residential real estate development companies in Arizona.

Watts and Lyles began their business journey in the early ’90s. “I was buying real estate and Rob was selling it,” says Watts. “A few years later, the opportunity came along, and Rob had the idea for a company that would buy apartment buildings and convert them to condos.” The business, at the time called Starpointe, flourished with Lyles’ connections and Watts’ financial expertise. “We pioneered the condominium conversion market here,” says Lyles. “Nobody had done that for a long time. We really changed the landscape in Phoenix for for-sale housing in condominium units.” The duo also experienced the transformation of architecture firsthand from the ’80s and ’90s into what it is today. “There was a lot more freedom to be creative in the ’80s and ’90s,” says Watts. “When we look around Phoenix today, we see that creativity with the different styles of architecture and building types.”

“The idea of taking a vacant piece of land and being able to build something when there was nothing there before, we both just love that. We’re addicted to it.” - Pat Watts

Lyles says the multifamily market has changed drastically from the experimental architecture days in the ’80s to the buildings we see today. “All apartment buildings built today are high-end Class A apartments, and everything has gone to a luxury brand,” he says. Among this cookiecutter type, fewer-risk trend, Greenlight Communities has found a way to stand out. “We always said back when we did conversions, we redid them for people who wouldn’t normally be able to afford these kinds of living spaces,” says Lyles. “We’re launching a new concept with our Cabana brand, and it’s centered around that same philosophy,” adds Watts. “People are going to be able to afford to live in a really great location and property, for a lot less dollars.”

Greenlight Communities

Lyles and Watts are not only partners in business, but in life. They have been married for 7 years.

Over the years, the business evolved from conversions to new-build condominiums. Starpointe became Deco Communities and Deco is now Greenlight Communities. With over 3,500 homes sold and numerous mixed-use and commercial projects completed, Greenlight has set the standard for infill development in the Valley. “The idea of taking a vacant piece of land and being able to build something when there was nothing there before, we both just love that,” says Watts. “We’re addicted to it.”

Built to Last

You won’t catch any team member of Wolverine Builders “dotting the i” on a Saturday afternoon at an Ohio State football game. “Michigan is the Wolverine State,” says James “Jimmy” Kimmel, founder and president of Wolverine Builders. “I lived in Michigan prior to moving to the Valley in 2006. It is always good, friendly banter with Buckeye fans.” Started in 2010, Kimmel (who also stands in on Live! on occasion) and Thomas Couch, vice president, are approaching the company’s 10th anniversary. “From the depths of the Great Recession, we fought our way through and continue to make great progress,” says Couch. With over 50 years combined experience in the construction trades, Kimmel and Couch built Wolverine with a team focus and emphasizing a family atmosphere with solid relationships as the foundation. “Jimmy is the best friend and the best guy you could know,” says Couch. “He and I are both dedicated to our families and the business.” Wolverine’s portfolio of projects and offerings has scaled dramatically over the last decade and now includes ground-up construction, industrial/warehouse, tenant improvement, automotive, medical office buildings and wireless tower buildouts. “We have come a long way,” says Kimmel. “I remember our first project was cleaning up a site for Rusty Kennedy. It was a roll-your-sleeves-up project, and Tom, his son, Michael, and my wife, Carrie, and I spent a weekend with wheelbarrows getting the job done.” Kimmel and Couch realize that the next evolution of the company will not rest solely on their efforts. “I was excited to join the team and become a part of this great company,” says Luke Plzak, project manager at Wolverine. “Luke handles not only operations, but also developing relationships with younger business executives that Tom and I might not be able to tap into,” says Kimmel. “Wolverine is a growing and thriving company,” says Plzak, “and working with these two I feel like family.” Plzak could be more correct than he knows. “He is seeing my daughter, Alexxa, who lives in Dallas,” says Couch. “They are both terrific young people.” The year 2019 holds great potential for Wolverine as the company pursues new opportunities across a diversified portfolio. “We are expanding as a family, a team and a brand,” says Couch. “As the firm enters its second decade, our mix of experience, energy and commitment to each other will push the business to new heights,” says Kimmel.

16 16

Tom Couch, James “Jimmy” Kimmel, Luke Plzak © copyright MPmedia 2019

Steve Patterson sits with Jorge Pérez

RELATED GROUP M The Condo King Brings $500 Million to the Valley 18

Photo by Nick Garcia

orge Pérez, chairman, CEO and founder of Related Group, has joined 189 distinguished names vowing to build a better long-term future for the world through philanthropy. By signing the Giving Pledge, Pérez joins business icons Warren Buffett, Bill Gates, Elon Musk and Bob Parsons in a commitment to donate, at a minimum, 50 percent of their wealth to charitable causes. “I came to this country with nothing,” Pérez says. “The United States gave me every opportunity to succeed, and I have an obligation and a passion to give back.”

STARTING POINTS

Related Group celebrates its 40year anniversary in 2019, and over the decades Pérez and team have transformed communities and skylines with iconic multifamily and mixed-use projects. “We have developed and managed over 90,000 units of exceptional apartment and condominium spaces around the world,” Pérez says. “Our mindset has always been to be the best in the marketplace, by creating unique and artistic designs that add to the urban fiber and define the highest standard of excellence.” /// With an announced $500 million investment, Greater Phoenix residents will be the beneficiaries of Related Group’s creative genius. “We are scrutinizing multiple sites across the Valley,” says Steve Patterson, president and CEO, Related Development. “Phoenix is a phenomenal metro with enormous opportunity for growth. We are excited to bring the signature style and brand of Related to the region.”

MAKING AN IMPACT © copyright MPmedia 2019

BACKGROUND

Born in Buenos Aires, Argentina, and raised by his parents in Bogota, Columbia, Pérez came to the U.S. and attended C.W. Post College in Long Island. He later received his master’s in Urban Planning at the University of Michigan. Utilizing his credentials for the City of Miami, Pérez worked on affordable housing projects before unleashing his entrepreneurial energy with the founding of Related. “My first two projects were 21 and 24 units of affordable housing,” he says. “Over the next four years, I expanded the company into the multifamily affordable space. It was a great social concern for me that also provided a means to make money.”

While Pérez felt a deep emotional connection to affordable housing, the industry began to change in a direction that he was not excited about. “There were too many restrictions on design,” he says. “I wanted to expand creatively into projects that offered an opportunity to work with the finest architects and designers.” /// That decision launched Pérez and Related into the luxury multifamily sector with downtown Miami serving as his canvas. “I have always been passionate about art.” he says. “Starting in Miami and in every one of the company’s subsequent projects, there is a tremendous emphasis on aesthetics, beauty and the artistic quality of the design.” /// Pérez also significantly influenced the industry by acknowledging that there was a segment of the population that did not want to live a suburban lifestyle. “I believe that housing in urban centers, near jobs and shopping, provides residents with an attractive alternative,” he says.

APPROACH

Pérez and Patterson continue to expand the global footprint of Related by relying on a set of core tenets. “Residents will experience a resort-type atmosphere at each of our offerings,” Pérez says. “There is an incredible attention to detail, and designs are never cookie-cutter. We are the most artistic designers in the industry.” /// A Related development is built with a dynamic and collaborative energy, due in large measure to the company’s strategic partnerships. “We work with some of the most famous designers and architects in the world,” says Patterson. “That includes tapping into talent from unusual areas, as is the case with our newest Atlanta high-rise.” /// Targeted for a millennial audience, Icon Midtown delivers 390 units and needed a distinctive vibe. “We brought in an Atlanta nightclub designer to envision and craft the project,” Patterson says. “He had never done a multifamily project before, and the design is an exceptional success.” And as with each Related build, an artistic flair highlights the offering. “We utilized a local street artist who painted an inspiring 11-story mural,” says Patterson.

JORGE PÉREZ Pérez plays tennis four times a week and is a voracious reader. He reads four to five hours each day and typically reads three to four books at a time, one being classic literature.

Jorge Pérez

Photo by Nick Garcia

Icon Harbour Island

“We are scrutinizing multiple sites across the Valley. Phoenix is a phenomenal metro with enormous opportunity for growth. We are excited to bring the signature style and brand of Related to the region.” - Steve Patterson PRESIDENT AND CEO

Icon Midtown

GREATER PHOENIX

Related executives reviewed over 100 metros before focusing on the Southwest, and specifically the Phoenix metro, for their next development push. “Household formation, employment, a robust economy and thriving business environment make the Valley a terrific locale,” Patterson says. “Building the brand in the region over a multiyear time horizon is our goal, and we believe our Southwest leader, Kevin Wisdom, is up to the challenge.” Wisdom is a senior vice president for Related Development, Related Group’s market-rate rental development division. He is responsible for overseeing all domestic multifamily development activities throughout the Southwest region.

PERSONAL

Pérez still calls Miami home, however his love for travel keeps him jet-setting around the globe. “I love to explore cities and experience the designs, architecture and culture,” he says. “I learn so many things and discover a trove of amazing ideas that find their way into our projects.” /// His affinity for beauty flows from a mother who appreciated and valued the arts. “My father had a passion for business, as do I, but she loved museums, theater and music, which is instilled in my persona.”

LEGACY

Pérez has never settled for anything but the best in his life and business. “Our ongoing effort is to be the premier commercial real estate developer in the industry,” he says. “We never want to be satisfied and continue to improve.” And while his mark on commercial real estate is undeniable, his true legacy will be felt for generations through his magnanimous record of philanthropy.

Steve Patterson

Photo by Nick Garcia

“Our mindset has always been to be the best in the marketplace, by creating unique and artistic designs that add to the urban fiber and define the highest standard of excellence.” - Jorge Pérez

CHAIRMAN, CEO, FOUNDER

Jorge Pérez

Photo by Nick Garcia

Chris Anderson, senior managing director

and city leader for Hines in Phoenix, has a touch

of 1980 U.S. Olympic hockey coach Herb

Brooks in him. When assembling the gold medal

squad for the Lake Placid games, Brooks

famously said, “I’m not looking for the best players

- I’m looking for the right ones.” Anderson, who has built one of the finest teams in the Hines organization, takes a similar approach. “I look for individuals with grit and an entrepreneurial spirit,” he says. “I want professionals who are smart, know how to execute but most importantly show determination in their work each day.”

Ante Up

It just so happens that in selecting the “right ones,” Anderson also got two of the industry’s best in Brandon Dillingham, director of development, and Robert Trujillo, managing director. “Brandon was my first hire in 2013,” says Anderson. “Robert joined the organization in August of 2018. You could not find two more genuine individuals who possess great talent.” Anderson is depending on his stars to implement a bold new direction for Hines in Greater Phoenix. “We are going all-in on a strategy toward diversifying our portfolio in the Valley and incorporating offerings beyond just office developments,” Anderson says. “What I like about our team is we know we have a great hand with the Hines brand, and we are not afraid of putting our chips on the table.”

Active Players

Anderson’s current role represents his second go-round with Hines. “I joined the company after earning my master’s degree in Real Estate and Construction Management from

the University of Denver,” he says. “In 2006, I moved to New Mexico to manage the development of a large-scale masterplanned community, before returning to Hines in 2013.” Dillingham’s journey began on the East Coast, after which he moved to Arizona at the same time Anderson traveled to New Mexico. “I earned my MBA from Arizona State University and subsequently worked for Westcor before Chris brought me on board.” Dillingham also serves on the Board of Valley Partnership, recently moving up to the executive committee. Trujillo’s journey certainly was a winding one to Hines with stops in Lexington, Kentucky; Albuquerque, New Mexico; Atlanta, Georgia; Miami, Florida; Washington, D.C.; and since 2015 in Phoenix. “My career path has taken me into multifamily, high-rise hotels, condominiums and other property assets,” he says. “Over my 23-year career, I have worked on projects in dozens of cities across a range of commercial real estate competencies.”

Robert Trujillo, Chris Anderson & Brandon Dillingham

ÂŠ copyright MPmedia 2019

These guys are playing their cards right Hines has a Full House

Hines’ footprint stretches internationally with assets under management exceeding $116 billion, and operations across 24 nations and over 200 cities. Globally, Hines has 109 developments in process, and in Greater Phoenix, Anderson’s team is participating in exciting projects including 100 Mill, a 280,000-square-foot high-rise Class AA office in Tempe; 24 Jefferson, a 379-unit high-rise luxury multifamily build in Downtown Phoenix; and the construction of Class A self-storage facilities in Greater Phoenix and the Southwest region. Hines recently completed Chandler Viridian, a 25-acre mixed-use project led by Dillingham. “In the metro, the Hines brand will showcase a full spectrum of CRE product types, and we are excited about the opportunity,” Anderson says.

Three-of-a-kind

“Our team works very well, because of the culture that Chris sets,” says Dillingham. “His vision for what he wants to achieve motivates us to deliver value for clients.” Hines properties are best-in-class assets, a tradition that Anderson vows to continue in Greater Phoenix. “Hines is international, but CRE is a local business,” Trujillo says. “That is what I respect most about Chris, his effort in cultivating the relationships necessary to produce the best projects in the marketplace.”

Hines Goes All In

The Greater Phoenix Hines team is well positioned to continue the company’s legacy of creating world-premier CRE assets. “Hines’ projects are part of communities, they change skylines and remain in place for many decades,” Anderson says. “Our philosophy is you have one chance to make a great project, so it pays to do it right.”

100 Mill, Tempe

Â© copyright MPmedia 2019

Multifamily Project, Downtown Phoenix

O f � i c e s a t

P R E M I E R N E W D E V E L O P M E N T

CLASS A OFFICE

ON-SITE RETAIL

BROADSTONE FASHION CENTER RESIDENTIAL

CAMBRIA SUITES HOTEL

LEASING I N F O R M AT I O N :

JERRY ROBERTS (602) 229-5829 jerry.roberts@cushwake.com

PAT BOYLE (602) 229-5828 pat.boyle@cushwake.com

THE BEST OF THE BEST Congratulations to Our Top Arizona Investment Professionals of 2018 Marcus & Millichap’s 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 2018.

PETER KATZ

Executive Managing Director Student Housing

STEVE GEBING

Senior Managing Director Multifamily

HAMID PANAHI

First Vice President Multifamily

JAMIE MEDRESS

Executive Managing Director Net-Leased

MARK RUBLE

Senior Managing Director Net-Leased

CLIFF DAVID

Senior Managing Director Multifamily

PETE TE KAMPE

First Vice President Multifamily

CHRIS LIND

First Vice President Net-Leased

RICHARD BUTLER

Senior Vice President Multifamily

To access the real estate investment market, contact the market leader.

RYAN SARBINOFF

Vice President | Regional Manager 602.687.6700 ryan.sarbinoff@marcusmillichap.com

Mollie Zemer E M E R G I N G

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

Mollie Zemer, senior development associate at Barclay Group, is a rising star among her peers in CRE. Just 5 years into the industry, Zemer started at Barclay Group as a development analyst and was promoted to her current position just a year and a half later. When did you start working at Barclay Group and why? I started my career at Ernst & Young in their transaction real estate group and started working for Barclay Group in October 2015. At Ernst & Young, I was looking at large-scale portfolios and projects from a pre-and-post-transaction perspective. I always knew I wanted to be more involved in the weeds of a deal and see it through from conception to completion. Development jobs are hard to come by, and the role at Barclay Group presented itself at the right place and right time. It was a perfect fit, and I’ve never looked back.

Why are you involved in NAIOP Developing Leaders, ULI Young Leaders Group, New Pathways for Youth, & ICSC? I’m passionate about the groups that I am involved in. I have gotten so much out of being an active member, learning from great mentors and have found it even more rewarding to serve in a leadership role. Where do you see yourself in 5 to 10 years? I would like to have completed a high volume of diverse projects, both in asset type and level of complexity. There is so much risk in development and so many things that only experience will prepare you for. I hope that having a lot more experience under my belt will leave me prepared and confident to handle the unexpected.

Â© copyright MPmedia 2019

Broker of the Month PRESENTED BY WILLMENG CONSTRUCTION

everse the word order of NAIOP’s 2014 and 2017 Industrial Broker of the Year in Arizona - Will Strong - and you understand why this industry leader has achieved so much in his career. “Getting started in February of 2008 at Cushman & Wakefield meant I entered the business right before the commercial real estate bust,” he says. “It was a long grind for several years, but I persisted and never looked back.”

Will Str

STARTING POINTS

In his over 11 years in the business, Strong, executive managing director, Capital Markets, Investment Sales at Cushman & Wakefield, has compiled an impressive record: Cushman’s Top Industrial Producer 2014-2017, the firm’s Top Industrial Capital Markets Producer 2015-2017 and CoStar Power Broker 2010-2017. Strong earned those accolades by transacting over $1.35 billion in sales comprising over 27 million square feet of space. “I have carved out a unique niche in the marketplace as the go-to industrial broker for capital market investment opportunities,” he says. “I have been fortunate enough to work with some of the best owners and brokers across the Southwestern U.S.”

BACKGROUND

A Phoenix native, Strong earned two bachelor’s degrees in Accounting and Finance from Arizona State University before entering the CRE world right after graduation. “I heard about CRE all through school through my association with Sigma Nu fraternity,” he says. “There really was not much thought about doing anything else.”

rong © copyright MPmedia 2019

The early years for Strong were extremely tough, first as an industrial property investment analyst and then later into industrial leasing. “There was not enough transaction flow in investment sales, which is why I transitioned to leasing. I was going door-to-door canvassing properties during the day while working a second job at night to pay the bills,” he says. “Incredibly grueling, but I would not stop working, and today most of the individuals I started with in the industry are gone.”

Â© copyright MPmedia 2019

Steve (brown dog), David, Will, Monica and Benny (black dog) Strong

CAREER MOVES

After seeing some wins working on his own as the market recovered from 2010-2013, Strong left Cushman & Wakefield to team up with Mike Haenel and Andy Markham at Cassidy Turley. “We worked together as a full-service industrial team, but when the Cassidy Turley, DTZ and Cushman & Wakefield mergers occurred, I had an opportunity to return full-time to the investment sphere,” he says.

CUSHMAN & WAKEFIELD

The move has paid dividends with Strong essentially functioning as the director of his own investment shop inside Cushman & Wakefield’s industrial umbrella. “Mike and Andy and now Phil Haenel handle leasing and development, and I specifically serve the investment buy-and-sell side for clients,” he says. Strong also works independently with some of the best leasing brokers at other brokerage companies across Arizona.

OUTLOOK

As the CRE cycle extends its impressive longevity, Strong sees great opportunities in the industrial investment environment. “I want clients to have the best service possible,” he says. “There is so much activity in the market right now, and with our commitment to excellence and understanding of the capital markets, we can create value for owners with a client-centric approach.”

CONCLUSION

If you had to sum up Will Strong’s character with adjectives, there are many to choose from: dedicated, competitive, gutsy, determined and persistent. But two stand out: Strong Will.

Strong is involved in EC70, a group of working professionals dedicated to helping the community’s youth through fundraising events and initiatives. EC70’s signature event is The Original Taste in Scottsdale. Read more about EC70 on the next page.

Q&A L to R: Andy Snedeker, David Feiler, Ted Liles (2019 Taste Co-chairman), Matt Davis, Jared Langenhuizen (President), Casey Strunk (President Elect), Nick Eggen, Regan Amato, Brent Mallonee (2019 Taste Co-chairman), Edson Salas, Cory Shepard, Kory Kober

Why are so many CRE professionals involved in Executive Council 70 and its signature event The Original Taste? EC70: We look for the Valley’s best and brightest professionals for our membership. With so many talented professionals in CRE, we naturally gravitate toward those individuals. Planning and producing The Original Taste takes a lot of creative time management. That goes hand in hand with how most of us in the commercial real estate industry work. We all tailor our schedules to fit the constantly changing demands and adding the responsibilities of EC70, and The Original Taste is an example of that.

The Original Taste: What was different this year compared to previous years? EC70: We were very concentrated on bringing the focus back to the core reason for The Original Taste - raising money for youthbased local charities. We featured a double-sized booth at the south entrance this year showcasing our charitable giving efforts and the heartwarming results. We wanted to showcase everything that goes into the event and the generous support we get from our sponsors, guests and supporters, which is done to make a lasting and positive impact on our community.

What’s the benefit in getting involved in an organization like EC70? EC70: We offer our members an amazing range of opportunities to be a catalyst for improving the lives of youth across Arizona. The Original Taste is our signature event in its 46th consecutive year but we also have our annual Holiday Classic golf tournament, Cantina at Salt River Fields and the Support Arizona Youth campaign to raise money. Additionally, we actively engage with our charity partners including serving dinner at the Ronald McDonald House and helping build a retail store for UMOM.

What are the funds collected allocated for? EC70: Our mission is to support Arizona youth-based charities. We have a group of our members that make up our “giving committee.” These members review hundreds of requests for grants every year and spend days going through them with the arduous job of dispersing all of the funds we raise throughout the year.

How can individuals donate to the cause? Please visit www.ec70phx.com to learn more about The Original Taste, EC70, other fundraising efforts and how you can donate.

How many people attended The Original Taste? EC70: Up to 5,000+ of the finest people attend The Original Taste each year.

2018

TOP PRODUCERS TENANT ADVISORY GROUP

OFFICE ADVISORY GROUP

Chris Nord

Jerry Roberts

TOP OVERALL PRODUCER

Eric Wichterman

INDUSTRIAL ADVISORY GROUP

Andy Markham

Mike Haenel

Peter Menna

Jim Wilson

Chad Littell

Will Strong

Michael Hackett

Ryan Schubert

CAPITAL MARKETS - MULTIFAMILY

Devpal Gupta

RETAIL ADVISORY GROUP

Adam Madison

Chris Toci

CAPITAL MARKETS - RETAIL

TENANT ADVISORY GROUP

Larry Downey

CAPITAL MARKETS INDUSTRIAL

CAPITAL MARKETS - OFFICE

Steven Nicoluzakis

Dave Fogler

Jim Crews

Mike Beall

Chris Walker

OFFICE ADVISORY GROUP

Chris Hollenbeck

Greg Mayer

CAPITAL MARKETS - OFFICE/INDUSTRIAL

Jeff Wentworth

CAPITAL MARKETS SELF-STORAGE

2555 E Camelback Rd, Suite 400 Phoenix, AZ 85016 Steve Lindley

Tracy Cartledge

Bob Buckley

Paul Boyle

+1 602 954 9000 cushmanwakefield.com

Leroy Breinholt

It’s Only a

Matter of Time Leroy Breinholt, president and designated broker of Commercial Properties Inc. (CPI), peers into the future of commercial real estate: Is there a downturn on the horizon? The prediction game is a tough business, which is likely why Baseball Hall of Famer Yogi Berra once humorously opined that “the future is not what it used to be.” However, Breinholt knows better than anyone that forecasting the commercial real estate and economic cycle is part of the job of an industry professional. “I truly wish I had a crystal ball regarding the CRE market especially as it pertains to Arizona, but I do believe we are in very interesting times,” he says.

A full-service brokerage and property management firm, CPI’s Valley roots extend back to 1981. The company’s current listings include over 21.5 million square feet for sale/lease with more than 197 properties and associations under management, totaling over 11.6 million square feet. The fifth-generation Arizona native has seen his share of market vicissitudes in a 30-plus-year career. And with the current economic expansion poised to eclipse the longest on record of 120 months this July, the question of when the next downturn will occur is front and center. “It is not a matter of if, it is a matter of when,” he says. “I think there is a good chance that rather than a recession, it will slow down and level off. It will feel like a mini recession. I do not believe it will be a drop like we saw a few years back.” So, to borrow another Berra tagline, Breinholt does not feel like it is “deja vu all over again.” Metro Phoenix remains extremely dynamic with the unemployment rate closing 2018 at 4.5 percent, robust gross metropolitan product (GMP) growth and accelerating wage growth. This vibrant environment translates to the CRE sector with office, retail, industrial, hospitality and multifamily all benefiting from tenant and investor demand. “The economic landscape is now substantially more diverse than in previous cycles,” he says. “This is not solely a housing story anymore. Manufacturing, technology, financial services and a host of other verticals comprise a strong Valley economy.” Experts look at cargo shipments, housing starts, industrial production and other metrics as tools in determining future economic activity. “One of the first signs I look for is when the residential lending market starts to loosen up their criteria. I have already started seeing people begin to purchase larger homes than perhaps they can afford,” he says. “Additionally, car loan foreclosures have increased nearly 22 percent over the past year, which is not a good sign.” With a slowdown in the cards over the next several years, the time is now for individuals and businesses to situate appropriately. “We should all be putting away money and not overleveraging,” he says. “It is prudent to prepare. If we all prepare, then even on the downside there is room for growth and opportunity.” Breinholt sees the next 12-24 months as stable with slower growth but he is excited about the prospects for the Valley economy and CRE sector. “People feel more confident in Arizona as a long-term investment,” he says. “In- and outof-state companies/ investment groups view Arizona as much more diverse and safe.”

CPI specializes in: - Sales & Leasing - Corporate Services - Office - Medical

Property Management Association Management Land Retail

Facilities Management Maintenance & Construction Industrial 1031 Exchanges

CPIâ&#x20AC;&#x2122;s listings include over 21 million square feet for sale/lease with more than 195 properties and associations under management, totaling over 11.6 million square feet.

TEMPE: 2323 W. University Drive, Tempe, AZ 85281 | SCOTTSDALE: 8777 N. Gainey Center Dr., Suite 245, Scottsdale AZ 85258

480.966.2301 | www.cpiaz.com

DISTINCTIVE D E T A I L S. DIFFERENTIATED R E S U LT S. DRIVEN T O D E L I V E R.®

Todd Taylor, managing director with Wood Partners, admits he didn’t have a background in commercial real estate like many of his colleagues did. “When I started as an intern at Wood Partners in 2005, I didn’t know a plat from a topo map,” he says. “There was a huge learning curve, but I was hungry and wanted to learn.” Fast-forward to today, Taylor is a seasoned executive in the industry and has adapted to the ups and downs of the real estate cycles. Wood Partners hired Taylor out of graduate school at the University of Southern California after his summer internship, and he learned the ins and outs of multifamily development his first few years in the business. When the Great Recession hit, Wood Partners’ Phoenix operation went from an office of 50 down to two asset managers. “I worked at a couple other firms, and then a friend and I formed a company to buy B and C apartment buildings,” says Taylor. “I was doing that for a couple years until the development cycle started up again and I got a call from Wood Partners.” Taylor says that Wood Partners is back up to about 50 people again locally and that it feels different this time around. “We feel good about how healthy the cycle is, but as we get into the later stages, that means every deal is that much more challenging by a factor of 10,” he says. “We’re working on a few of those types of complicated projects, and the key is to stay focused on the big picture.” Taylor is especially excited for Wood Partners’ multifamily development on 7th and Marlette in north central Phoenix. “We are well into construction and look forward to opening in Q4 of this year,” he says. “It’s a unique neighborhood, and we’re optimistic from a demand standpoint.” Working hard and playing hard is certainly a way of life for Taylor. When he’s not working on development projects at Wood Partners, Taylor enjoys golfing with his two kids Katherine and Jack and spending time with his wife, Amy.

BUILDING MOMENTUM

2 LOCATIONS IN CHANDLER

CHANDLER CORPORATE CENTER IV AVAILABLE NOW

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

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Chandler Corporate Center IV

2900 S. Gilbert Road Chandler, AZ • 100,243 s.f. flex/industrial for sale or lease • Divisibility from 15,788 s.f. • 8.4 acres for sale or build-to-suit • Available now

4100 W. Galveston Street Chandler, AZ • 43,007 s.f. available for lease • Divisibility from 8,513 s.f. • Enterprise Holdings occupies half the building • 86,797 s.f. available for sale • Available now

D EV E L O P E R

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

James V. Camp

Mark Singerman, LEED AP

Senior Vice President and Regional Development Officer

Vice President Regional Director - Arizona

RGDC-CA@rockgrp.com

RGDC-AZ@rockgrp.com

www.rockefellergroup.com

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

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

Denise Nunez

The sky is the limit Congratulations to our 2018 Top Producers!

Investment Sales (Self Storage)

Mark Wilcke Industrial

Chris Gerow Retail

Shelby Tworek Retail

Tyler Smith Office

Laurel Lewis Office

Lane Neville Investment Sales

Barbara Lloyd Investment Sales

Matt Harper Retail

Gabe Ortega Retail

Brokerage • Property Management

602 955 4000 • naihorizon.com

REIACSouthwest Southwest REIAC OpenInvitation InvitationEvent Event Open

REIAC So Open Invitati

REIAC/Rockefe

Thursday, May 2, 2019, REIAC | Rockefeller MRED Challenge

REIAC Southwest EIAC Southwest REIAC/Rockefeller Challenge EIAC/Rockefeller Challenge May 2, 2019 May 2, 2019 Arizona Country Club Arizona Country Club

REIAC Southwest REIAC/RockefellerChallenge Challenge REIAC/Rockefeller REIAC/Rockefeller Challenge Thursday, May 2019, 4:30 – 7:00 Thursday, 2, 2, 2019, 4:30 pmpm – 7:00 pmpm Sponsored By May 2, 2019 May Arizona Country Club Online Registration Open

Please join us for the 6th annual REIAC/Rockefeller Challenge in support of the Master of Development (MRED) program at the W.P. Carey School of Business. Three competing t MRED students will each present a development solution for a storied piece of local Arizo team will have just 10 minutes to present, with the winning team selected by the audienc members willofeach receive aof$1,000 cash prize, up to $6,000. Registration to attend is ope Please annual REIAC/Rockefeller Challenge in support of the Master of Real Estate lease joinjoin us us forfor thethe 6th6th annual REIAC/Rockefeller Challenge in support the Master Real Estate Please join us for the 6th annual REIAC/Rockefeller Challenge in Development (MRED) program at the W.P. Carey School of Business. Three competing teams of graduating Development (MRED) program at the W.P. Carey School of Business. Three competing teams of graduating support of the Master of Real Estate Development (MRED) program Make Your MRED students each present a development solution a storied piece of local Arizona estate. Each Reservation Now! MRED students willwill each present a development solution forfor a storied piece of local Arizona realreal estate. Each Best Regards , at the W.P. Carey School of Business. Three competing teams team have 10 minutes present, with winning team selected audience. winning team of eam willwill have justjust 10 minutes to to present, with thethe winning team selected by by thethe audience. TheThe winning team graduating MRED students will each development solution members each receive a $1,000 cash prize, up $6,000. Registration topresent attend isaopen to the public. members willwill each receive a $1,000 cash prize, up to to $6,000. Registration to attend is open to the public. Mark Singerman T.A. Shover

Online Registration Open Online Registration Open

Regards estBest Regards , ,

Mark Singerman Mark Singerman REIAC Southwest Chapter EIAC Southwest Chapter President resident

Schedule: chedule:

Thursday, 2, 2019 hursday, MayMay 2, 2019

4:30pm Registration Networking :30pm Registration andand Networking 5:00pm – 6:00pm Challenge 00pm – 6:00pm Challenge 6:00 – 7:00 Networking Mixer :00 – 7:00 Networking Mixer

Hosted beverages appetizers. osted beverages andand appetizers.

for a storied piece of local estate. Each teamREIAC willSouthwest have just REIACArizona Southwest real Chapter Chapter President Chair Make Your Reservation Now! Make Your Reservation Now! 10 minutes to present, with the winning team selected byProgram the audience. The winning team members will each receive a $1,000 cash prize, up to Location: $6,000. Registration toSchedule: attend is open to the public. Shover T.A.T.A. Shover

Thursday, May 2, 2019 Arizona Country Club REIAC Southwest Chapter REIAC Southwest Chapter 5668 E. Orange Blossom Lane Program Chair Program Chair 4:30pm Registration and Networking Phoenix, AZ 5:00pm – 6:00pm Challenge Arizona Country Club 6:00 – 7:00 Networking Mixer Location: Location: Registration: Thursday, May 2, 2019 5668 E. Orange BlossomREIAC LaneMembers: Free Arizona Country Arizona Country ClubClub Hosted beverages and appetizers. Phoenix, AZ (Enter from Thomas 5668 E. Orange Blossom Lane 5668 E. Orange Blossom Lane InvitedRoad) Guests: Free – must be accompan Phoenix, Phoenix, AZ AZ Non Members $35.00 Students $25.00

4:30pm Registration and Networking REIAC Members: Free Registration: Registration: 5:00pm - 6:00pm Challenge REIAC Members: Invited Guest: Free REIAC Members: FreeFree Mustby beaby accompanied Invited Guests: Free – must be accompanied a member. by a member. Invited Guests: Free – must be accompanied member. 6:00pm - 7:00pm Non Networking Members $35.00 Non Members $35.00 Non-Member: $35.00 Students $25.00 Students $25.00 Student: $25.00

Our Generous Sponsors Atwell, LLC • BBVA Compass • Butler Design Group • CivTech • Commercial Executive Magazine First American Title Insurance Co. • Govig • KPMG • LINEAGE CRE • SRP • Snell and Wilmer The Rockefeller Group • Town of Gilbert • Willmeng Construction, Inc. 50