Issue 1, 2019 by Commercial Executive Magazine

New Leader at CBRE Paul Komadina gets bullish on branding

ABCs of CRE Playmakers and trends that will shape 2019

CEM-AZ.COM • ISSUE 1, 2019

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IN THIS ISSUE ARTICLES Broker of the Month Brad Cooke, Executive Vice President, Colliers International Emerging Professionals New section highlighting young up-and-comers in CRE Innovative Team Newmark Knight Frank’s Brad Goff, Brett Polachek and Chris Canter New Leader Paul Komadina, Senior Managing Director and Market Leader, CBRE Phoenix and Tucson Revitalization of Downtown Spotlighting Nick Wood, Dick Mallery and Snell & Wilmer’s 80th Anniversary Willmeng James Murphy, President and CEO, Willmeng

E X E C U T I V E P U B L I S H E R Mandy Purcell, mandy@mpmediaaz.com M A N A G I N G D I R E C T O R Karen Gallagher, karen@mpmediaaz.com E D I T O R Celina Busse, celina@mpmediaaz.com E D I T O R I A L Celina Busse, Tim Randall, Wayne Schutsky G R A P H I C D E S I G N Zane Bolen, zane@mpmediaaz.com P H O T O G R A P H Y Zane Bolen, Carl Schultz 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

Letter from the

PUBLISHER

“I hope that in this year to come, you make mistakes. Because if you are making mistakes, then you are making new things, trying new things, learning, living, pushing yourself, changing yourself, changing your world. You’re doing things you’ve never done before, and more importantly, you’re doing something.” – Neil Gaiman

here’s just something about a new year. New opportunities. New goals. New business. It’s also an important time to blend the past with the present. I’ve been doing the ABCs of CRE since the inception of the magazine, and this issue I’m continuing the tradition of highlighting the biggest playmakers in commercial real estate “to the letter,” literally. Whether it’s teams, deals or executives in the industry, I cherish the opportunity to showcase the best in the business. Kicking off our first issue of the year, our cover story features Paul Komadina, who gallantly represents CBRE’s new leadership. Read about his new role at CBRE under letter “N” for New Leader. Nick Wood with Snell & Wilmer has been a dear friend of mine for years, and I’m excited to finally highlight his work in downtown Phoenix. I would also like to congratulate Snell & Wilmer on 80 years in business. Let me tell you, we didn’t have enough pages to fit all of Wood’s projects but chose a few signature developments to highlight. Check out his astounding work as well as the other major players involved under letter “R” for Revitalization of Downtown Phoenix. This issue, we introduce a new section called Emerging Professionals. Highlighting young, bright and enthusiastic up-and-comers in CRE, Emerging Professionals dives into the younger generation’s outlook on business. This will be an ongoing section in the magazine, and we will be accepting submissions each issue. Read about this issue’s Emerging Professionals under letter “E.”

I want to extend my gratitude to our readers, sponsors and friends. When looking to the future, I see an exciting year ahead for the magazine with many changes and adaptations on the horizon. Finally, I would like to thank my team, Karen, Celina and Zane for all their hard work. Enjoy the issue,

Mandy Purcell Executive Publisher

Mandy Purcell

Time is Money Spend it wisely

602.955.2899

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PERSEVERANCE GETS THE JOB DONE RIGHT. suntecconcrete.com

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“Each letter of the alphabet is a steadfast loyal soldier in a great army of words, sentences, paragraphs and stories. One letter falls, and the entire language falters.” - Vera Nazarian Just like the letters of the alphabet, each individual in Commercial Executive Magazine’s ABCs of CRE segment is, in their own right, a soldier in our powerful industry. Read about outstanding projects, companies, playmakers and people to watch in 2019.

s XX 7

Mike Medici, president and managing partner at SmithGroup, can relate well to architect Frank Lloyd Wright’s words: “Every great architect is - necessarily - a great poet. He must be a great original interpreter of his time, his day, his age.” Medici agrees. “Design excellence, design is everything,” he says. “SmithGroup creates high performance solutions that are beautiful at the same time.”

Starting Points

Operating in 13 global offices from Phoenix to Shanghai, SmithGroup leverages the talent of over 1,300 professionals in the disciplines of architecture, engineering, planning, design and strategy. “We truly believe that SmithGroup challenges itself, our clients and their building/business needs to not accept the status quo,” he says. “Bringing the right people to the table is one of our greatest talents.”

Background

Tracing its history back to founder Sheldon Smith’s original 1853 Detroit location, SmithGroup’s Phoenix office opened its doors in 1973 and now boasts 140 employees with a regional presence serving Colorado, Utah, Nevada and New Mexico. “In 1989, an opportunity of a lifetime occurred for me to relocate to Phoenix to grow and develop a thensmall regional office for SmithGroup,” Medici says. /// Graduating from The College of Architecture and Design at Lawrence Technological University (LTU), Medici came to his craft after spending time pursuing an engineering career. “As early as the beginning of high school, my desire was to be an engineer” he says. “My experience at a few summer internships was very positive, but clearly convinced me that I was not interested in engineering.” /// With an assist from his father, who worked in the construction business, Medici knew he had found his passion. “He suggested architecture, and after some investigation it was clear that architecture added the creative outlook that I felt was missing from engineering,” he says. Freeport McMoRan Center 8

Tempe Hayden Flour Mill

SmithGroup

Taking the lessons learned at LTU, Medici has developed the SmithGroup brand as a creative and innovative firm always willing to tackle new challenges. “The ‘Theory and Practice’ Methodology has always been an influence on my direction in life,” he says. “This is an approach that takes bringing a diverse group of thought leaders to the table to explore all aspects of every project.” /// Over the years, Medici has been involved in many noteworthy Valley and regional projects. “Working on the National Renewal Energy Laboratory Energy Systems Integration Facility in Colorado and the Translational Genomics Research Facility here in Phoenix were incredibly rewarding,” he says. “The Phoenix Biomedical Campus, Arizona State University Downtown Phoenix Campus and the Freeport McMoRan Center are also great career highlights.”

Greater Phoenix

Medici is excited about the ongoing evolution of the Phoenix Metropolitan area, particularly what he refers to as the mixed-use convergence. “This is the urbanization movement. This new trend is requiring architects, owners, developers and users to rethink how we envision our urban developments,” he says. “Retail, residential and workspaces provide an exciting new design challenge to combine all of these uses on small urban sites.” /// The trend in the Valley, according to Medici, is vertical development given the growth in population and economic expansion. “High-rise residential towers will soon become a major condominium market,” he says. “We are building up into the sky, while keeping in mind our urban fabric is important, too. We are creating interest and uniqueness in the towering structures we design.”

Opportunity

With the commercial real estate market continuing its strong growth, SmithGroup is awash with project work. “From the Tempe Hayden Flour Mill conversion in process to the Downtown Phoenix Warehouse District, we are enjoying working closely with developers and contractors,” he says. “There are very exciting opportunities in all scales of cities in Maricopa Metropolitan area.”

Personal

As with any good building design, balance between form and function is critical, and so too is the proper work-life balance. “For me, that equilibrium involves family, friends, biking, hiking, golf and Michigan State University sports, plus any outside engagement that allows me to be a steward of our community and society,” he says.

Future

With Medici, the energy and enthusiasm for his profession continues to grow. “Every day, I am excited to begin my workday,” he says. “I always look forward to what the day brings; it never gets old. The client-focused business development, being an environmental steward, as well as a mentor to key and future leaders. How can you not be inspired to be surrounded by all of that?” Or as Wright said: “The longer I live, the more beautiful life becomes.” Mike Medici © Copyright 2019 by MP Media, LLC

Tyler Anderson Sean Cunningham Asher Gunter Matt Pesch CBRE Congratulations to Commercial Executive Magazine’s 2018 Broker Team of the Year! This is the second consecutive year this team has won Commercial Executive Magazine’s Broker Team of the Year award.

About the Award

Commercial Executive Magazine celebrates the best in the business at its annual Fall Forum. The exclusive event brings together executives from all areas of CRE for a panel discussion, networking and award ceremony. Votes for Broker/Broker Team of the Year are accepted by past Broker/Broker Teams of the Month featured in Commercial Executive Magazine. Paul Engler, executive vice president of Alliance Bank of Arizona, announced the Broker Team of the Year award at the event in October 2018.

Left to right: Tyler Anderson, Asher Gunter, Matt Pesch, Sean Cunningham

THE MULTIFAMILY INSTITUTIONAL PROPERTIES TEAM

Starting Points

Tyler Anderson and Sean Cunningham, vice chairmen at CBRE, started their tenure at the company in 1983 and 1980. Anderson and Cunningham built their repertoire of clients, experience and knowledge over the years. They added Gunter, executive vice president, and Pesch, senior vice president, to the team in 2005 and 2008.

CBRE

Top Producing Team Locally & Nationally

Total Consideration

$29+ Billion

Total Units

287,000+

Specializing in capital markets, institutional properties and multifamily, the team members are used to high-profile clients. Anderson says CBRE’s brand has a lot to do with this. “The beauty of working at CBRE is [that] since we’re the leader not only in Phoenix but nationally, anyone with capital is going to stop by our office,” says Anderson. “It works to our advantage because we always know the capital that is entering our market.” /// This, as well as the team’s client focus, has ensured their success year after year. “It’s all designed around being able to provide clients with the best execution and certainty of execution,” says Anderson.

Team

These tried-and-true strategies have enabled the team to perfect their craft over the years. “We’ve been working together for a while now,” says Gunter. “We’re at the level of comfort where we know we can count on each other to get the job done.” /// They are not only a top revenue-producing team at CBRE locally, but company-wide they are ranked as a top producer nationally. With more than 900 transactions, the team has closed over 287,000 units exceeding more than $29 billion in value. /// Gunter recognizes the members behind the scenes as well. “We’ve got a great team here, with a lot of tenured people that are the best at what they do,” he says. “They’re all generating the best research, the best underwriting, the best marketing deliverables. It’s the experience behind us that allows us to constantly be in touch with our clients.”

Phoenix

Total Transactions

900+

o team is better deserving of an award highlighting achievements in brokerage than CBRE’s Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch. The multifamily institutional properties team has more than 90 years of combined experience and has held 40 to 60 percent market share for multifamily sales in Metro Phoenix for more than 25 years.

With some of the best employment growth in the West, Phoenix is one of the most balanced markets in terms of supply and demand. The team says the direction of the Phoenix market is what is most appealing to investors. “There’s a lot of new capital that wants to be in Phoenix. Investors were in the discovery period in 2018. This year, they’re looking to make a move,” says Gunter. /// The future looks bright for this team, with 2019 in full view. “We have an exciting year ahead,” says Gunter. “It’s a great market, and it’s fun to help get the new capital here.”

Presented by Willmeng Construction

EARLY LIFE

These days, you won’t find Brad Cooke taking a nap underneath the conference room tables at the Colliers office in Phoenix, though he is not ashamed to say he has done so in the past. /// That’s because Cooke, now an executive vice president with the company specializing in multifamily investment, grew up in the industry. From a young age, he went to meetings and stopped by the office with his mother Cindy–who is now his partner on Colliers’ Cooke Multifamily Investment Team along with Gerda Kauks, Charles Wolcott and Kellyanne Kennedy. /// “I remember playing on the typewriter when I was little kid, and taking naps underneath the conference room table,” says Cooke. /// Brad credits Cindy, who raised him as a single mother, for being both an accomplished professional and a hands-on parent who gave him the unique experiences and skills to help him get where he is today. /// “Most of the time, she would bring me with her,” says Cooke. “At age 8, I started going to meetings and was introduced to the business because of necessity.” /// The multifamily expert’s long history in the industry has afforded him numerous mentors, including his mother and other industry veterans like Bill Saul, Scott Knauer and Brad Goff. Goff still jokes that he remembers picking up a young Cooke from high school. 12

GETTING STARTED

Though Cooke now partners with his mother, he set out on his own when he first broke into the industry nearly two decades ago. /// He first started with a few years at the Staubach Company. Those early times taught him that, although he grew up in commercial real estate, he still had a lot to learn. /// “I thought I knew how to do things, but (you don’t know what you can do) until you really get in there and are actually trying to make a paycheck,” says Cooke. /// He credited a collection of mentors at Staubach Company, and his next stop with Ray Cashen and Jerry Tokoph, for helping him learn a lot about the industry on the fly. /// The products he worked with during that time also gave him an education. /// One of those products, the former Revlon manufacturing facility acquired by Tokoph in 2001, showed Cooke the changing landscape of real estate in the Valley at the time.

“

“At age 8, I started going to meetings with mom,” says Cooke. “I was introduced to the business at a very young age mainly because of necessity.” - BRAD COOKE

BRAD COOKE Executive Vice President Colliers International

“I quickly learned I had a product that was difficult to lease, because every conversation was ‘My manufacturing has left Phoenix and gone to Mexico and is now leaving Mexico and going to China,’” says Cooke. “And so, we knew they had to reposition the asset, which they have now done and been very successful with it.” /// Ultimately, Cooke set off on his own to start his business, Interlock Realty, which focused on single-family development, which was booming business in 2004. /// “This was the (2004) era when any idiot could do, and I proved it,” he jokes. /// The move to his own business was a natural one for Cooke, who described himself as entrepreneurial, and even started his own valet parking service while in college in North Carolina. /// His wife Alison was not quite sold on the idea because they just bought their first house and were expecting their first child. /// “I came home to my wife who was nine months pregnant and said ‘Baby, I quit my job today and want to start my own company’ and she cried,” says Cooke. /// So, how did Cooke end up working with his mother in multifamily? /// He credits his grandmother for brokering the deal. /// In 2006 during the single-family crash, Cooke’s mother and grandmother were having dinner when, “My mom was saying ‘I have to bring on a partner. I’m busier than I’ve ever been. I can’t train them, and I have to trust them.’” /// According to Cooke, his grandmother replied, “‘Why don’t you hire Brad?” /// “So she did,” says Cooke. “She came to me and asked me, and I went and asked my wife, ‘What do you think about it?’ Now we have two kids and had mortgaged everything. She said ‘Yes, go get a paycheck.’” /// Cooke and his mother have worked together for over a decade, and the team is now one of Colliers’ top-producing teams in the Valley and a top multifamily team nationwide. /// They represent properties all over the Valley, though the team’s reach extends well beyond that into places like California, Florida and Texas. /// “And it’s because clients have told us ‘We cannot find other brokerage teams that handle disposition the way you do,’” says Cooke.

“I have had the pleasure of watching Brad grow from a driven rookie into a true professional. His ethics and integrity are exceptional, his work ethic all but legendary and his understanding of the market simply incredible. Brad acts as a true advisor who is driven not by fees, but by doing what is in the best interest of his clients.” –SCOTT KNAUER CHIEF INVESTMENT OFFICER, ORION RESIDENTIAL ADVISORS LLC

BOOM AND BUST

Cooke has experienced Phoenix’s cycles of boom and bust, both in the previous sectors he worked in and in multifamily. /// He closed a $427.5 million deal to begin his career with his mother, but found out soon that the good times would not last. /// “So that’s the way to take a splash in the industry, and at the time I thought to myself ‘This is the best business ever,’” he says. “We closed that deal in June of 2007, but by July the music stopped.” /// The contemporary multifamily market is at another meteoric high, though Cooke does not see it crashing back down to earth like it did during the Great Recession. /// He said the market has strong fundamentals and a more stable foundation than it did a decade ago. /// “Phoenix historically has been construction-based, more blue-collar job growth, whereas this cycle we have seen a more diversified white-collar job growth,” he says. /// Cooke also credits Arizona State University for turning out qualified graduates that attract those businesses. He said top California companies now want to come here, because they can pay workers less than the salaries made necessary by California’s high cost of living. /// Those workers, in turn, are increasingly choosing multifamily product instead of home ownership, even when they can afford to purchase home. /// Calling these people “renters by choice,” Cooke says they are providing a more lasting customer base for multifamily product. /// He also credits the rise in Valley construction costs for keeping multifamily building in check, stating that the high cost to build new product acts as a check on overbuilding. /// The Phoenix market is now a popular spot for investors across the country and globe because of its relative stability and rising rents. /// “That has made it very frustrating for buyers, because there are so many investors coming into this market,” says Cooke. “So even with interest rates moving around, as long as we still have that attention from the buyers and strong rent growth, I still think we’ll be fine for multifamily specifically.”

Cindy, Brad & Jean

The Cooke Family

THE FUTURE

Though Cooke is an only child, he and his wife Alison have five kids. /// Cooke, whose youngest two children are adopted, said he and his wife never talked about adoption early in their marriage but then later felt moved to explore the option seriously. /// After running into trouble with the process abroad, they ultimately adopted a brother and sister that had been living with foster parents near their own home. /// “And so, we ended up looking all over the world and they were literally a block from our house,” says Cooke. /// Not one to sugarcoat the situation, Cooke said the first year was a tough transition for both his older and younger kids, “But now it’s all worth it, and they’re just happy-go-lucky kids.” /// With five young Cookes in the house, is there already a future Cooke Multifamily Investment Team in the works? /// It might be too soon to tell, though Brad Cooke said his oldest daughter has already shopped units with him and his oldest son has gone on tours. /// “Do I hope in the end at least one of the kids decide to work with me? Of course I do, because it would be great to keep the tradition going,” says Cooke. “But if they want to go do something else that is fine, I still will introduce them to the business at a young age because there’s so many different career paths in our industry.” © Copyright 2019 by MP Media, LLC

Photo shot by Joyride Photo & Design

“I can pretty confidently say I’ve known Brad longer than any other commercial real estate broker in Phoenix. I think the world of him. Not only is he a great guy, but also one heck of a broker.” –BRAD GOFF EXECUTIVE MANAGING DIRECTOR, NEWMARK KNIGHT FRANK

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Nationally, the Small Business Administration approved over 68,000 loans in the 7(a) and 504 loan programs in Fiscal Year 2017. These programs provided over $30 billion to small businesses, with the 504 program growing to $5 billion in loan volume. “Those are incredible numbers,” says Tom Altieri, senior vice president at MidFirst Bank. 2018 was an outstanding year for MidFirst Bank SBA Lending. “We topped our 2017 figures, and 2017 was pretty good. But we’re not making loans. We’re making dreams.”

Tom Altieri SENIOR VICE PRESIDENT

Starting Points

idFirst Bank is one of the five largest privately owned financial institutions in the United States. With over $16 billion in assets, the organization serves clients in Oklahoma City, Tulsa, western Oklahoma, Denver and Phoenix, with commercial real estate lending offices in Atlanta, Houston, New York and Southern California.

Approach

The 7(a) and 504 loan programs serve different purposes. The 7(a) facility provides companies with a working capital tool, while the 504 vehicle offers financing to business owners seeking to purchase CRE and other fixed assets. “MidFirst Bank SBA provided loans in 2018 all over the Valley,” he says. “In fact, all over the state. We saw growth in every sector, especially office, industrial and medical.”

Phoenix

Altieri attended Arizona State University and will celebrate 10 years at MidFirst in February 2019. “The Valley is a special place to do business,” he says. “Our best source of new clients is existing ones. Customer service is part of our fabric here. But MidFirst Bank has also developed a great reputation by remaining involved philanthropically in our community. We work here. We live here. We give here.”

Great Stories

Making those dreams come true is what inspires Altieri and pushes him to champion the MidFirst brand as unparalleled in the industry. MidFirst Bank received the highest ranking in the southwest region in the J.D. Power 2018 U.S. Retail Banking Satisfaction Study. With an index score of 877, MidFirst Bank achieved the highest overall score of any bank in the nation. With each client, there is a unique story, and Altieri enjoys learning

MIDFIRST BANK about clients, their business and the company’s goals. It is this personal commitment and ability to get the job done that defines the vice president and MidFirst. “Everyone has hard decisions in lending. But I like to remember the easy ones,” he says. “We had a client who had gone far through the process with another bank, but delays caused them to miss two escrow deadlines, and their earnest money was non-refundable. They were only getting one more extension of two weeks, so the broker and buyer needed to know we could perform. We closed it in 12 days. Customer for life. Referral source for life.”

2019

The year 2019 is shaping up to be another breakout year, even as concerns mount about the length of the economic recovery. “We are going to be integrating even more innovation into our suite of offerings,” he says. “Staying on the forefront is a priority; technology drives everything, and that is more than a sound bite.”

The mantra for Altieri is simple:

“More loans,

MORE DREAMS.”

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Article nter the next generation of commercial real estate professionals. They are leaders among their peers, ambitious in their goal setting and impressive in their actions. Most are creative, think differently and demonstrate astounding work ethic. Whether they were immersed in the industry early on through family members, or they forged a career through pure persistence, these young professionals have the world of CRE at their ﬁngertips. Plus, the market is up and ready to challenge them. In the next few pages, Commercial Executive Magazine takes a dive into these youthful and bright, rising stars. Learn more about what makes them tick and their inspiring goals that will shape the future landscape of Phoenix. Featuring Phil Haenel with Cushman & Wakeﬁeld, Stirling Pascal with Lee & Associates, Brittany Harrison with LBA Realty, Madhur Soam with Mortenson, Michael McWilliams Jr. with Plaza Companies and Danielle Puente with DP Electric, Commercial Executive Magazine is pleased to introduce this new, ongoing section that shines a light on these ambitious upand-comers. Look for the Emerging Professional section in upcoming issues to for the ones to watch.

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Shot on location at Mountain Shadows

Article

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The Future of Commercial Real Esttea

L to R: Madhur Soam, Stirling Pascal, Brittany Harrison, Phil Haenel, Danielle Puente, Michael McWilliams Jr.

Phil Haenel

Company Cushman & Wakefield Position Director Age 29 Years in CRE 6 Hometown Phoenix, Arizona College University of Arizona Year Graduated 2012 How did you get into commercial real estate? I started as an intern with Ryan Company my sophomore year of college. After that internship, I realized I loved the industry. I was then lucky enough to get an internship in San Francisco the summer of my junior year with Tim Garlick of Cassidy Turley (now Cushman & Wakefield), and that was when I knew I wanted to be a broker. Can you name a person who has had a tremendous impact on your career? I’ve had a ton of mentors over my career starting in San Francisco and now in Phoenix. My dad, Mike Haenel, and Andy Markham, who I work with on the team, have had a huge influence on my career and personal life. However, my biggest mentor is the fourth member of my team, Will Strong. I look up to him, his work ethic and persistence. He is a grinder! Outside of work, what are you passionate about? I love my family and friends. I am one of five, so it is always a fun time hanging out with my family. I also love to work out, swim, run and play golf with friends. I was also into triathlons a few years ago, chasing my little brother. What is your ultimate goal in your business career? My ultimate goal is to continue to love what I am doing, keep grinding and having fun.

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Stirling Pascal Company Lee & Associates Position Associate Age 23 Years in CRE 4 Hometown Clayton, California College ASU W.P. Carey School of Business Year Graduated 2017 Why did you decide to get into commercial real estate? Since I can remember, I’ve wanted a career in commercial real estate. I imagine some of that spark came from spending time around the skyscrapers in San Francisco’s ﬁnancial district growing up. Outside of work, what are you passionate about? Family, friends and sports (basketball speciﬁcally). Is there a quote you live by or that motivates you? Faber est suae quisque fortunae - rough translation: “Every man is the artisan/architect of his own fortune.” What are you most proud of? I cherish the strong relationships I’ve developed with family, clients, colleagues and friends. Where do you see yourself in 5 years? Living in Phoenix, continuing to be more involved in the community and in the CRE Industry. What’s the best advice you have ever received? To treat everyone I meet with respect, from the janitor to the CEO. What is your ultimate goal in your business career? To wake up every day loving what I do, while having a positive impact on those around me. If you could spend a day in someone else’s shoes, whose would they be? My next clients. I would love the opportunity to see what goes on in their day-to-day which would help me understand how I can help them.

XX Shot on Location at Mountain Shadows

Britany Harrison Company LBA Realty Position Associate Age 29 Years in CRE 8 Hometown Phoenix, Arizona College Bachelor’s - University of San Diego, master’s University of Wisconsin Year Graduated Bachelor’s - 2011, master’s - 2016 Why did you decide to get into commercial real estate? My father, Jim Harrison, is in commercial real estate. I grew up around the industry and always thought I wanted to pursue a career in commercial real estate. Following my freshman year of college, I did an internship in the business and have enjoyed it ever since. Where do you see yourself 5 years from now? Over the next ﬁve years, I would like to have more involvement on the acquisition side of things. Personally, I am planning a wedding right now, so married and hopefully at least one kiddo. 10 Years? Professionally, I would like to take on a bigger leadership and mentoring role as well as make some personal investments in real estate. Personally, I’d like to have a family and be able to balance my family and career. What is your ultimate goal in your business career? To be successful and well respected. The success doesn’t matter if you run over people on the way. What are you most proud of? Completing Race Across America with my dad, which is a bike race starting in Oceanside, California, and ending in Annapolis, Maryland. I haven’t been back on a road bike since, but it was an amazing experience. If you could spend a day in someone else’s shoes, whose would they be? Jeff Bezos. Amazon is a fascinating company, especially from a commercial real estate perspective as it continues to blur the lines between retail and distribution. Is there a quote you live by or that motivates you? “Success isn’t measured by money or power or social rank. Success is measured by your discipline and inner peace.” - Mike Ditka XX

Shot on Location at Mountain Shadows

Madhur Soam Company Mortenson Position Field Engineer Age 26 Years in CRE 3.5 Hometown My hometown is in India. It’s a small town close to

New Delhi called Hapur. College I graduated with my bachelor’s degree from National Institute of Technology in Surat, India and received my master’s degree from ASU. Year Graduated Bachelor’s - 2013, master’s - 2017 Why did you decide to get into commercial real estate? I’ve always strived to expand my horizon. Coupling my desire to learn practical things with my love for the civil industry, I believe the commercial real estate market is a bottomless tank of knowledge. I feel you can achieve and learn so much in this industry if you’re open to all possibilities. Additionally, there is great satisfaction and pride in this line of work, knowing I can help people achieve their dreams and leave an impact on the community in which I live and work in. What is your ultimate goal in your business career? I have always wanted to be someone who could leave a lasting, meaningful impact. I stepped in this business to be able to give communities products and experiences they can enjoy for years to come. Nothing will make me happier than being able to develop new ways of working for the better good of products, through technological development. If I can leave a lasting impression and an innovative way of working behind as my legacy, I will feel I have achieved my ultimate goal. What are you most proud of? I’m proud of the decisions I have made to get me to where I am today. I come from a very humble background, and there had been times where I had to stake it all. I’m glad, and proud, that I believed in myself and took those calls. If you could spend a day in someone else’s shoes, whose would they be? Elon Musk What is the best advice you’ve ever been given? I was once told, “Everything is a risk, not doing anything is also a risk. Choice is yours.”

Shot on Location at Mountain Shadows

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Michael McWilliams Jr Company Plaza Companies Position Leasing Associate Age 25 Years in CRE 3 Hometown Phoenix, Arizona College University of Arizona Year Graduated 2015 How or why did you decide to get into commercial real estate? I grew up around it. I have four family members in the business and my interest in commercial real estate began by just being around them. Studying Urban and Regional Development in college and a summer internship at Cushman & Wakeﬁeld motivated me to pursue a career in this business. Where do you see yourself 5 years from now? Five years from now, I hope to be an established member of this commercial real estate community and help the next generation of young professionals that are entering the business. 10 years? In 10 years, I plan to continue to grow in this industry and transition into development, where I can focus on the thing that caused the spark for me in the ﬁrst place, sustainability. What is your ultimate goal in your business career? My ultimate goal is to do my job well and be successful, while maintaining a balanced work/home life. What are you most proud of? I’m proud of the man that I have become. I’m surrounded by amazing people in my life that I have to thank for that. What is the best advice you’ve ever been given? Never work in the food industry. Outside of work, what are you passionate about? Golf and family. Thankfully, those go hand-in-hand for me. Is there a quote you live by or that motivates you? “Anything in life worth doing is worth over-doing. Moderation is for cowards.” - Lone Survivor

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Danielle Puente Company DP Electric Position CFO Age 29 Years in CRE 3 Hometown Fountain Hills, Arizona College University of Arizona Year Graduated 2012 How or why did you decide to get into commercial real estate? I studied accounting and worked for KPMG, a public accounting firm, after college. When DPE’s previous controller left, my dad couldn’t find anyone that was a fit for the position for over three months and it took me that long to wrap my mind around the possibility of working for the family business, something I never thought I would do. I do think it was meant to be. It was also a great opportunity from an accounting career perspective, so I came on board as DP Electric’s controller in July 2015. I was promoted to CFO in January 2018. Can you name a person who has had a tremendous impact on your career? My father, Dan Puente. He has been a mentor to me my whole life but working alongside him every day as CFO of DP Electric has allowed me to learn from him as a professional. He has taught me that your word is everything and it’s the people that surround you that make the company great. If you invest in employees, you will always be better off in the long run. What are you most proud of? Since I have been with the DP Electric, one of my first steps was to bring on a strong HR Manager, Christina Fernandez, and together we have put in place many initiatives that strengthened our culture of employee appreciation including DP Dinero (our awards point system), job site appreciation lunches, quarterly team building events, birthday cards addressed to each DP employee with a small gift and the list goes on. I believe these initiatives had a big impact on being awarded a Top Company in 2016 and 2018. I am most proud of making DPE a great place to work.

Shot on Location at Mountain Shadows

Quick Q&A with 5 Experts in Development

Sharon Harper PRESIDENT AND CEO, PLAZA COMPANIES

Over the years as an expert in the industry, what is the biggest factor you’ve seen disrupt or aﬀect the industry? The biggest disruptor in any industry is a combination of high-level service and a focus on innovation, and the commercial real estate industry is no different. When these two approaches are mastered, the opportunity is created for extraordinary partnerships and projects. For Plaza Companies, this approach allows us to create partnerships with public and private sector entities to create dynamic new developments that will enhance our communities and create an impact and legacy moving forward. When you look around the Valley and examine the projects that are having the greatest impact, it’s that innovation and the desire to create a unique experience that set the best developments apart.

Chris Brozina EXECUTIVE VICE PRESIDENT, MARK-TAYLOR COMPANIES In the strategy process, how do you ensure developments will integrate seamlessly into a community? “Into” being the key word—when strategizing a new development, we elect to follow what the market has already proven it wants, rather than trying to guess what it might want. One example is the overplayed discussion around millennials and how to design to their tastes. Our approach rather is not to specifically target any one demographic or another – our objective from the outset is to build a home that is timeless and universally attractive to the broadest range of residents possible. Certain things will always be universally attractive in our minds: a secure, “peace of mind” for yourself, your pet, and your vehicle; large, livable floorplans that can accommodate real furniture; open floorplans; wellscaled, useful amenities; ample parking; and extremely clean, well-manicured grounds, will never go out of style. Decade to decade, our mission is to keep a focus on the fundamentals. 28

Michael Stafford CHIEF FINANCIAL OFFICER, LGE DESIGN BUILD How do you determine capital allocation to support growth at LGE? As any business owner will tell you, managing capital is vital to the health of the company. With the continuous growth we have seen at LGE, capital allocation is a constant focal point of our organization. Not only have we seen a growth in our project volume, but in our average project size as well. As a result of our increased backlog, we have grown our internal staff by more than 60 percent in the past year and a half. We are currently under construction of our new office building, which is set to be complete by late spring 2019. As with all seasons of growth, they come with new challenges. We’ve been able to overcome our growing pains by relentlessly focusing on culture and our core values, all while maintaining a strong balance sheet and working capital.

Jill Hegardt VICE PRESIDENT, DMB What are important factors in deciding on locations for projects? DMB has developed many projects, including several of the finest master-planned communities in Arizona and across the country. While there are a multiplicity of factors to consider when analyzing the potential viability of a particular deal, important considerations include availability of infrastructure, proximity to services, ability to utilize a financing mechanism such as a community facilities district, and the political environment and disposition of the jurisdiction in which a property exists. All of these factors impact the financial feasibility of a project and can increase project risk, especially, in projects that take years to develop and span changing political environments including changes in elected, appointed and staff positions. I spend a significant amount of time working with our partners at the various cities where we have projects, and having a good working relationship has been an important factor in the success of our projects.

Gary Linhart FOUNDING PARTNER, VIAWEST GROUP Which asset classes are strongest for development in Phoenix and the surrounding submarkets in the coming year? A 2019 trend will be developments in Opportunity Zones, which are part of the Tax Cuts and Jobs Act of 2017. These enable investors to defer, reduce and be excluded from certain capital gains taxes by investing in real estate that needs to be “substantially improved,” which in most cases implies development. The objective is to bring investment into supposedly blighted areas, both urban and rural. In Metro Phoenix, some of the many zones are actually in very desirable submarkets, such as Downtown Phoenix, Old Town Scottsdale, and Sky Harbor. This year is the only year all of the tax benefits of investing in Opportunity Zones will be available. Depending on the location, the types of developments that utilize this law will range across the major real estate food groups, but by our estimate, we expect multifamily, industrial, office and hotel to be property types that attract the most capital.

Mike Olsen It seems all roads to Globe Corporation emanate from The Arizona Bank. “I accepted an oﬀer as a credit analyst at The Arizona Bank right out of ASU,” says Mike Olsen, CFO, treasurer and corporate secretary at Globe. “That is where I ﬁrst met Bert A. Getz Sr. The Getz family owned a majority interest in The Arizona Bank.”

Starting Points Meeting the Getz family early in Olsen’s career proved pivotal, as he has now been with Globe for 17 years. “My years at Globe have been incredibly rewarding,” he says. “We are involved in some very complex projects, investments, legal and tax structures. It’s been a challenging and rewarding second profession for me.”

Background

A Scottsdale native, Olsen earned bachelor’s and master’s degrees from Arizona State University. “I was not sure what I wanted to do career-wise but thought banking was a great place to quickly learn about commerce, being exposed to a variety of businesses and industries,” he says. The position at Arizona Bank turned into a 16-year tenure at financial institutions including Security Pacific Bank and Bank of America. “I really didn’t think I would be a banker for over 15 years, but I enjoyed the variety of clients,” he says.

Globe

Through all his years in banking, Olsen kept connections with the Getz family. “I met Bert’s son, George F. Getz, six months into my career when he joined the bank on a training program after he graduated from the University of Southern California,” he says. “George left the bank after a couple years and joined his father at Globe.” George F. Getz and brother Bert A. Getz Jr. co-manage the Globe operation with locations in Phoenix and Chicago. The nearly 120-year-old diversified investment company continues to expand its operations in real estate, asset management and private equity. “While our main real estate focus is institutional quality industrial projects, we have had a lot of success in the Phoenix and Chicago markets in a variety of real estate sectors, including multifamily, office and some retail,” says Olsen. “In addition to CRE, the company boasts significant holdings in other asset classes. Only about 50 percent of our portfolio involves real estate. Most of our efforts are focused on identifying the best investment managers in traditional liquid investments, hedge funds and private equity,” he says.

Role

Olsen’s role at Globe extends much further than his titles would indicate. “I’m involved in every aspect of the business and our investment portfolio,” he says. “I spend more than half my time on real estate activities including underwriting and due diligence on acquisitions, dispositions, leasing, financing, structuring joint ventures, accounting and tax.”

Outlook

Throughout the company’s history, leadership has often followed a contrarian strategy on its growth and development. “Our most significant success has come from buying or investing during market downturns when liquidity is scarce,” he says. “We are currently focused on increasing our liquidity.” Building a cash position at this point in the cycle stands in contrast to investors pouring money into CRE throughout Greater Phoenix. “We think that most asset classes are fairly valued to overvalued. We don’t understand why investors are buying stabilized industrial real estate at cap rates below, or substantially below in some cases, institutional grade corporate bond yields, particularly given the typical shorter lease terms on industrial leases,” he says. “We don’t underwrite the same rent growth assumptions as a lot of investors.”

Personal

The number 39 holds deep meaning for Olsen, who lost both his brother and mother just a year before their 40th birthdays. “You are a product of your life experiences. Eric, who was a significant mentor for me following my mother’s death, was a brilliant man with an undergrad from Harvard in Chemical Engineering and a master’s in Business from Massachusetts Institute of Technology’s Sloan School,” he says. “Since his death, my perspective on life really changed. It’s a constant reminder to live each day with no regrets, be kind and to keep friends and family close.” Those memories provide Olsen energy to give back to the community. “I owe a lot to ASU. My education had a lot to do with my success early in my career,” he says. “And ASU is a critical component of Arizona’s growth and economy. Look at what ASU has done to revitalize downtown Phoenix. It’s a great place for me to invest my time.”

Future

The connection between Olsen and the Getz family those many years ago has certainly paid handsome benefits. “Working with Bert, George and Bert Jr. has been a privilege,” he says. “Our mission is to transform visionary thinking into brick-and-mortar reality, and together we will continue to build on the history of Globe.”

HEAVY HITTERS In sports, the “heavy hitter” may be the power combination of a Babe Ruth and Lou Gehrig, or the physicality of a Joe Frasier and Muhammad Ali. In the business world, the term refers to a corporate inﬂuencer, the likes of Jack Welch or Jeff Bezos. When it comes to the Valley’s commercial real estate retail heavy hitter, industry peers know that CBRE’s Jami Savage-Gray and Todd Folger are the premier team with power, clout and professionalism. “Our focus for much of the past 10 years has been to continually learn and grow from our clients,” says Savage-Gray. “We strive to have deeper connections with them beyond just a transactional relationship,” says Folger. “Most of our clients have remained with us for many years, and we feel that both the tenant and landlord sides genuinely like working together.”

Starting Points

The roster of distinguished company brands represented by the Savage-Gray/Folger team certainly highlights the duo’s heavyhitter moniker. “We recently had the opportunity to partner with Cooper’s Hawk Winery out of Illinois on their entry into the Phoenix market,” says Savage-Gray. “Nationally, we were able to build on the success of a homegrown brand like Shamrock Foods to expand their presence outside of Arizona. These are just examples of more recent clients.”

Background

Folger, first vice president, a graduate of Concordia University, and Savage-Gray, senior vice president, from the University of Arizona, have called retailer representation their passion from the outset. “We have both only known retail,” says Folger. “Jami was introduced to the business in 2008, while I began 20 years ago. Neither of us has left since.” /// “When CBRE recruited us to help grow their retail footprint, it was to focus almost exclusively on tenant representation,” says Savage-Gray. “While our experience also includes work with landlords, we’ve always leaned heavily toward the tenant side.” /// Before joining CBRE in 2011 (Folger) and 2012 (Savage-Gray), each spent time at SRS Real Estate Partners. “I was there beginning in 1999, while Jami worked there from 2010-2012,” says Folger.

Approach

Savage-Gray and Folger have risen to prominence in the retail space because of their unique approach to the discipline. “At CBRE, retail is a science,” says Folger. “When it’s time to study the market, we use forecasting and modeling tools that aid the site-selection process but also provide defensible, evidencebased decision support for companies in ways that no other real estate firm can offer,” says Savage-Gray.

Source: CBRE Research, Q3 2018. • Note: Includes retail centers and single tenant retail buildings 30,000SF and Greater

Jami Savage-Gray & Todd Folger Retail Landscape

E-commerce continues its trajectory of garnering a higher percentage of total retail sales: 9.8 percent of total sales in the third quarter of 2018 versus 4 percent in 2009, according to the U.S. Commerce Department. Amid this transformation, the team believes strongly that the experiential retailing sector will outperform. “It is not going to rely heavily on mixed-use developments, but the ability to continue to right-size the retail market,” says Savage-Gray. /// “Food and beverage along with entertainment-oriented retail is going to continue to flourish and expand,” says Folger.

“Nationally, we were able to build on the success of a homegrown brand like Shamrock Foods to expand their presence outside of Arizona. These are just examples of more recent clients.” - JAMI SAVAGE-GRAY

Complementary

Together now for six years, Savage-Gray and Folger rely on each other’s strengths to push their outperformance over competitors. “My knowledge of the Phoenix market, industry connections and tenure in the business complement Jami’s presence in national brokerage and retailer communities,” says Folger. “We’re a perfect match.” /// “But I know why our relationship works so well: it’s all about Jami,” says Folger, chuckling. “She steals the spotlight wherever she goes. In fact, we happen to share the same birthday, and over the years I’ve learned that it’s her day, not ours.”

Personal

Spending quality time with family is of paramount concern for both Savage-Gray and Folger. “I love to travel with my husband Austin, especially during the winter ski season, when I get to escape to some of my favorite destinations in Colorado and New York,” says Savage-Gray. “I’m a huge fan of anything that gets me outdoors, whether it’s playing golf, hiking or riding those © Copyright 2019 by MP Media, LLC

Senior Vice President

new electric scooters around my neighborhood.” /// “My kid’s sports and school activities take up most of my time outside of the office,” says Folger. “We’re also big on family trips. We recently visited Breckenridge this summer, which was much needed.”

Future

CBRE has much to look forward to in 2019, as Savage-Gray and Folger pursue several exciting new opportunities. “We are currently working on bringing numerous first-to-Arizona retailers that we love and know will be a great fit for the state,” says Savage-Gray. /// “We’ve always had a pulse on what the Arizona retail market needs and wants, and we’ll continue to keep an eye out for emerging brands and concepts that offer consumers unique experiences,” says Folger. Certainly, a potent one-two punch.

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Innovative W

Team

hen Brett Polachek, senior managing director, joined Newmark Knight Frank (NKF) Phoenix Multifamily in 2018, he knew the team he was joining was close-knit; he just had no idea how close. Polachek teams with Brad Goff, executive managing director, and Chris Canter, director, in the disposition of multifamily assets across Arizona. “We all live two minutes away from one another,” Polachek says. “It is great to go to work and truly enjoy who you are working with,” says Canter. “Working together toward the accomplishment of a collective task - there’s a lot of enjoyment that comes from that.”

Starting Points

Brad Goff, a veteran in the Phoenix market, has been with NKF Multifamily since 2005 and has witnessed the remarkable growth of the multinational commercial real estate brand. Across six continents, NKF boasts over 16,000 real estate professionals in 430 offices. “In the fourth quarter of 2018, ARA Newmark and Berkeley Point Capital were rebranded as Newmark Knight Frank, solidifying its position in the multifamily sector,” Goff says. The strategic initiative brings $28 billion in transaction volume in 2017 under the NKF global banner. “The NKF global platform gives us access to so many more resources. With this rebrand, we’re showcasing NKF’s diversity of tools: research, marketing and valuation advisory services for broker utilization and for our clients’ benefit.”

Multifamily

Focusing on transactions of multifamily properties comprising over 100 units, the trio of seasoned brokers with a combined 50 years of industry experience and multibillion-dollar transaction volume has found their stride as a team. “It is great having Brett on the team. It feels like it’s 1 + 1 + 1 = 5, not 3,” Canter says. “What makes our team the most successful is that we work very well together. We each have different strengths, and our personalities mesh nicely.”

2018

The multifamily team approached 2018 with a purpose to merge their talents and skillsets into one of the metro’s most formidable CRE teams. “A strength for all of us is the ability to form relationships,” says Polachek. “I tend to like the analytical part of the business, Brad really understands the big picture and Chris is great at nurturing relationships and staying in front of people.” Canter adds, “In 2018, all three of us brought together best practices aimed at building deeper relationships with our clients.

Brett Polachek Brad Goff Chris Canter

“What makes our team the most successful is that we work very well together. We each have diﬀerent strengths, and our personalities mesh nicely.” - CHRIS CANTER Director, Newmark Knight Frank Multifamily

2019

Multifamily show no signs of slowing down in the Valley as vacancy rates continue to fall, rental rates rise and deliveries and pipeline activity flourish. “The popular locations are still Scottsdale, Central Phoenix, Downtown Phoenix, Tempe and the Southeast Valley,” says Goff. “However, all neighborhoods, all locations are attractive to different buyers. It depends on your client, what they want and what they want to pursue.”

Innovation

If relationships are the team’s core strength, then their innovative capacity serves as the foundation. “We focus on creative brokerage,” says Polachek. “Coming together as a team has already paid off in how we go about things, specifically earning new business and servicing our clients.” The creative energy flows from the ability of each to harness and leverage their distinctive capabilities into a combined pro-active force. Polachek continues, “We come from such different areas of expertise, and we each have a dynamic skillset. When you look at those skills and knowledge bases collectively, it really forms our synergy.”

Future

In the coming year, the three professionals hope to further develop their team chemistry and grow their market share in Greater Phoenix multifamily market. “What we’re most excited about in 2019 is the continued strong market fundamentals,” Goff says. “With the NKF platform, we all can better serve our clients, build momentum and expand our opportunities in the coming year and beyond,” says Canter.

DELIVERING EXCEPTIONAL

RESULTS

Newmark Knight Frank is taking on the Phoenix market with tremendous momentum and continues to pioneer winning real estate solutions.

GROWING The Platform

INCREASING Market Share

RECRUITING Top Talent

CLOSING

Large Assignments As one of the world’s leading commercial real estate advisory firms, Newmark Knight Frank is transforming businesses and properties, and exceeding client expectations.

2398 E Camelback Road, Suite 950, Phoenix, AZ 85016 • 602.952.3800

jll.com/phoenix

The Silicon Desert

In the long view of Phoenix commercial real estate, 2018 will go down as one of the most historic for data centers. After years of pent-up demand, developers have at last kicked into high gear with a pipeline of more than 631,000 square feet of new projects that are actively under construction or in the planned development stage. This represents close to a 40 percent increase in Phoenix’s physical data center inventory, which as of the start of the fourth quarter totaled 1.63 million square feet and 228.9 megawatts of critical power. “To put it in perspective, 2017 was a record-breaking year for the Phoenix data center market, but the last 12 months have been twice as good as that,” said Mark Bauer, managing director within JLL’s Data Center Solutions Group. “Aligned Energy, Cyrus One, Digital Realty, EdgeCore, Iron Mountain and QTS are all market leaders in the data center arena, and they’re all actively in the design or developing phases right now in Greater Phoenix.” Those same players are doubling down on the land front as well, purchasing both infill and outlying sites in preparation for what they predict will be strong and steady data center growth. These land holdings include hundreds of acres in the East Valley (now owned by either Cyrus One, Digital Realty or EdgeConnex) and earmarked for data center product. In the West Valley, several hundred acres are under contract for purchase by data center developers/operators and enterprises. Among these is Microsoft’s recent acquisition of 270 acres and their commitment to build a data center campus in the City of Goodyear. This project is expected to be a catalyst for the creation of an entirely new data center cluster, much like Apple established in Mesa’s Elliot Road Technology Corridor. “Phoenix’s population growth alone has skyrocketed demand for the conveniences that data centers provide,” said Bauer. “We now have millions of residents who want to stream just about 38

everything from their smartphones. Add in the wave of new tech companies that we’ve welcomed over the past few years – not to mention the emergence of new technologies like autonomous cars and trucks – and you have a metropolis that requires the storage and connectivity of a data center in order to work.” Fortunately, Phoenix is well positioned for that future. It offers data center users abundant and affordable land and an environment free from natural threats like hurricanes, earthquakes and tornadoes. It also has comparatively cheap power that, at less than $0.064 per kilowatt hour, is almost 50 percent lower than California’s Silicon Valley and similarly attractive when compared to data center hubs like Virginia, Chicago and Dallas. According to Bauer, today’s data center developers and large hyperscale cloud players are seeking 100 to 200 MW of power for these data center campuses, compared to 30 to 50 MW of power needed for data centers in the past. “The pressure is really on for power companies to continue to deliver power in a timely manner, but we are keeping up at a very competitive pace,” he said. “On average, Phoenix can deliver this level of power in 12 to 18 months, where markets such as Northern California can take up to three years to get the same level of support to a new data center site.” These efficiencies only add to our attraction for hyperscale cloud companies, corporate data center facilities and third-party colocation campuses. And the more of these entities that plant their flag in Phoenix, the more stable and diverse our data center market becomes. As quoted by Dean Nelson, Head of Uber Compute, through his LinkedIn post on Dec. 6, 2018, “My prediction is the Phoenix Metro will be the next Ashburn. Unprecedented public and private data center investment activity is underway. The biggest question? Why is cloud not there yet?”

“When you take into account the supply coming online, I expect Phoenix will continue to climb in its national ranking, possibly taking over the top four or five slot for U.S. data center markets in the not-so-distant future.” - Mark Bauer Managing Director, JLL

“Local data center absorption ballooned in 2017, ballooned again 2018, and we expect 2019 to set another benchmark,” said Bauer. “When you take into account the supply coming online, I expect Phoenix will continue to climb in its national ranking, possibly taking over the top four or five slot for U.S. data center markets in the not-so-distant future.”

t I g n i l Kil TOWER CAPITAL

Adam Finkel, Kyle McDonough

Adam Finkel, CCIM, & Kyle McDonough Tower Above the Rest The iconic Chase Tower in Downtown Phoenix claims the title of Arizona’s tallest building, standing 483 feet and rising 40 stories. Talk to Kyle McDonough, co-founder of Tower Capital, and he has similar aspirations for his firm to reach extraordinary heights. “We have grown tremendously since 2015,” says McDonough. “As we have found success, we have re-invested back into the company.”

Starting Points

McDonough, along with co-founder Adam Finkel, CCIM, launched Tower Capital with a goal to become a national market leader in structured finance for commercial real estate investors. “We work to secure debt, equity, mezzanine and institutional bridge financing for our client’s properties,” says McDonough. “With so many sources of capital, navigating the capital markets can be overwhelming. Not only do we know who the most competitive lenders are, we know who within those companies are the most effective.”

Background

After graduating with degrees from Arizona State University, McDonough and Finkel worked their way into commercial real estate finance with stints at notable names such as Merrill Lynch and Johnson Capital. “Adam and I have been best friends since business school at ASU. We always wanted to go into business together, and the stars finally aligned for Tower Capital when Adam’s previous company was acquired,” McDonough says. “I knew I was ready for a change, so we decided to take a leap of faith and go for it.”

XX 40

Approach

Now entering their fourth year of operation, the co-founders have expanded their team to offer clients more strategic offerings and suite of integrated services. “When we were first getting the company off the ground, it was important to keep lean and mean,” McDonough says. “Slowly, we were able to add support staff, so our time could be better spent on business development.” /// While Tower Capital works predominantly in the multifamily space, the partners have diversified their portfolio across CRE. “We been very active in the hospitality sector, financing several hotels throughout Arizona,” says McDonough. “In addition, there have been transaction opportunities at a number of construction projects for master-planned communities, as well as more industrial and retail projects.”

Phoenix Multifamily

According to Fannie Mae, “Since 2012, approximately 29,000 apartment units were delivered in the Valley with an additional 14,500 units” in the pipeline. Strong population growth, a competitive business climate and economic strength continue to propel multifamily development in the region, and Tower Capital is positioned well to capitalize on this expansionary trend. “Multifamily financing has become a very crowded space in Phoenix. There are more direct lenders with offices here than ever before,” says McDonough. “Ultimately, this benefits the borrower by creating competitions and options.”

Taking Time

Even with an accelerating business, McDonough acknowledges the need to relax and reenergize. “Spending family time with my wife and two daughters, who are 3 and 6, is important to me,”

“What’s made Kyle and Adam successful is their approach in business. It isn’t that they have all the answers, but they give people the confidence that they can go get the right answer. There’s entrepreneurialism and aggressiveness, but also humility. That combination, has set them apart.” - Gary Linhart, Founding Partner, ViaWest Group

he says. “Outside of that, I love to golf, work out and travel. Our favorite place is Coronado, California, and we love spending half the summer there.” /// The tidal wave of expansion also offers McDonough and Finkel the occasion to reflect on their journey. “Back then, it was just Adam and I wearing all the hats – sales, admin, HR, accounting and marketing,” McDonough says. “As we executed on deals, our reputation in the marketplace and our brand grew.”

Next Steps

Both McDonough and Finkel recognize that the next several years will present very favorable conditions for the firm to build a robust client roster. “Our goal is to grow our market share and support our team members, so they can perform at their maximum potential,” says McDonough. “We are always looking for ways to improve and work more effectively and efficiently with our clients, capital relationships and thirdparty partners.”

Ending Points

Lofty thinking has taken Tower Capital to incredible heights thus far, and it seems that the sky is the limit for the entrepreneurial firm. “It gives me a great sense of pride and accomplishment to see what we have created from nothing. I love going in to work every day. I love what I do,” says McDonough.

“No one counts the number of ads you run, they just remember the impression you make.” - B. Bernbach Karen Gallagher karen@mpmediaaz.com 602-955-2899

PARTNERS. PERFORMANCE. POSSIBILITIES.

Our team would like to thank our valued clients and colleagues for their partnership, which resulted in 28 transactions totaling more than 4.1M SF and nearly $900M in total consideration in 2018. We deliver outcomes that drive business and bottom-line performance. How can we help you transform your real estate into real advantage? Barry Gabel Executive Vice President 602 735 5273 barry.gabel@cbre.com

Chris Marchildon Vice President 602 735 5625 chris.marchildon@cbre.com

Will Mast Vice President 602 735 5206 will.mast@cbre.com

ongevity in the Phoenix commercial real estate industry is not easily achieved. The notorious boom-and-

bust nature of the market makes it difficult for many brokers to carve out a long-lasting, successful career. Barry Gabel has been up to the challenge. The CBRE executive vice president’s career has spanned nearly four decades, during which he has built a reliable, dedicated team and worked on countless highprofile office transactions.

STARTING POINTS What is the secret to the Gabel team’s success? “I would say to the core longevity is hard work, honesty and being accountable,” Gabel says. “If you do these three things, then you have a pretty good shot at being in the business a long time.” /// Gabel says he seeks out those traits when hiring members to his team, which now is seven strong and includes Chris Marchildon, Will Mast, Jamie Altholz, Ryan Reading, Amy Alschlager and Ada Rose Mancusi.

Shot by Leland Gebhardt

L to R: Will Mast, Chris Marchildon, Amy Alschlager, Barry Gabel, Jamie Altholz, Ada Rose Mancusi, Ryan Reading

INTEGRITY “Barry always says you’re only as good as your reputation,” says Marchildon. That focus on integrity has been a cornerstone of Gabel’s career, along with servicing every deal – big or small – with the same tenacity. His team recalls several scenarios where giving their all on a small deal lead to success on larger transactions later on. The team credits that approach for securing them repeat business and loyalty from clients. “No matter what deal we are working on for them, they know we are going to give it 110 percent and get the best outcome for them,” says Mast.

TEAM

– that made the deal happen, even if that number is 20 people or more. Still, Gabel says if he needs to improve anything, it is encouraging the team to celebrate its successes more. He says that the team is quick to show appreciation to clients after it finishes deals but that it can often move on too quickly to the next project. “It’s usually a high five, a ‘way to go you guys’ and a few hugs here and there and then we’re back at it, and it’s on me to say stop and let’s go celebrate immediately,” Gabel says.

“I would say to the core longevity is hard work, honesty and being accountable. If you do these three things, then you have a great shot at being in the business a long time.”

WORK ETHIC Savoring those successes is important, especially for those that remember just how bad it got during the recession. Surviving that period is a testament to Gabel’s team and its – there’s that word again – longevity. For Gabel, the key to making it through the rough times – and succeeding when the market is great – is continuing to show the same work ethic regardless of market conditions. “At the end of the day ... all we can do is put together great collateral, accurate financials, detailed research, hard work and steadfast communication,” he says.

The team’s longstanding success is also due to the fact that Gabel also takes care of his team. “We all enjoy what we do, because we have worklife balance,” says Altholz. Alschlager, who has been on the team for 14 years and is going on her third child, says, “With Barry, I know that no matter what I have going on in my life ... he is always going -BARRY GABEL to say, ‘I understand and do EXECUTIVE VICE PRESIDENT, CBRE what you have to do.’” She continues, “Just having that makes me think that if he ever needs anything from me, I will always be there because he does the same for me.” /// The team also points to Gabel’s ability to keep the work environment fun NEXT STEPS and regularly show appreciation for every member of his team The team’s 2018 was a far cry from the recession and as reasons for their lasting success. “You can’t underestimate Gabel sees more of the same in the future. “We’re going that Barry makes showing up to work every day so much fun,” into 2019 as if it is going to be as good or better than says Altholz. 2018,” he says, “We’re laying the groundwork to make it so that is exactly what happens.” /// His team believes fundamentals in Phoenix are strong and many investors ACKNOWLEDGMENT Following successful transactions, Gabel and the team make still want to place capital here, so the strong run is sure to acknowledge every person – both inside the team and out expected to last for years to come. © Copyright 2019 by MP Media, LLC

RYAN SARBINOFF

VICE PRESIDENT AND REGIONAL MANAGER

n his 13-year career at Marcus & Millichap, Ryan Sarbinoff, Phoenix vice president and regional manager, has left his mark on ofﬁces across the country. “I began with the company at the Indianapolis ofﬁce and followed with stints in Cleveland and Cincinnati,” he says. “Now in Phoenix since 2017, we have laid a solid foundation that has led to a culture that breeds success.”

Starting Points

One of the nation’s leading commercial real estate firms, Marcus & Millichap boasts over 1,800 professionals in over 80 offices. In the most recent fiscal year of 2017, the corporate titan closed “8,979 transactions with a value of approximately $42.2 billion.” Phoenix is a huge part of this tremendous volume. “Out of the company’s nearly 2,000 producers, our Phoenix office features five of the top 15 in two consecutive years,” says Sarbinoff. “2018 was another record-breaking year for our office. 59 percent of our sales associates grew their business year-over-year, while nearly 40 percent of our sales associates enjoyed the best year of their careers.”

Background

Personal

Phoenix

Future

Hailing from Indianapolis, Sarbinoff attended Indiana University before beginning his career at Marcus & Millichap in 2005 as a broker. “I specialized in the sale of shopping centers and single-tenant net-leased properties across the United States,” he says. In 2013, the company recognized Sarbinoff’s true potential as a leader, and he has excelled at every location and capacity. “My goal is to empower the people around me to be the best version of themselves every day,” he says. “I make it a point to lead by example. I will never ask something of someone that I would not do myself.”

In one of the nation’s most vibrant metros with robust economic development, dynamic talent, accelerating population growth and a pro-business climate, Sarbinoff is excited at the prospects for the office to capitalize on the Valley’s opportunities. “I can see compelling reasons to lease, buy or sell every type of commercial real estate,” he says. “Average rents continue to climb due to increasing occupancies, which positively influences buyer sentiment regarding future values.” /// One of Sarbinoff’s ambitions in his tenure is to supercharge the investment vertical at the office. “We have made substantial progress and increased our market share in apartments, retail, office, industrial, self-storage, hotels and land in two consecutive years,” he says.

Sarbinoff points to work-life balance and adherence to beliefs as pivotal to his accomplishments. “I am a follower of Christ, who is the greatest leader in my life. I am consistently inspired by my family, both immediate and extended,” he says. /// You can also find Sarbinoff taking time to cheer for sports franchises in his spare time. “I am a huge sports fan and passionate about the success of my Hoosiers, Colts and Pacers,” he says. “I have also adopted every team here in Arizona and love to watch them compete live. I believe we learn incredible lessons through sports, which provides opportunities for personal and professional development.”

Marcus & Millichap looks to build on its prosperous 2018, and Sarbinoff is set to push the Phoenix office to the next level. “We are focused on four primary practices: strategy, execution, culture and structure,” he says. “I am most proud of our culture at Marcus & Millichap, the expectation of excellence embodied by our people and the contagious energy that is present in our office every day.”

Leadership

Sarbinoff makes it a central tenet to engage with his team and position them to achieve. “It is all about inspirational leadership,” he says. “I look up to our people at Marcus & Millichap and feel incredibly blessed to surround myself with high-powered intellectual capital that inspires me every day.” /// Emphasizing individual growth, team cohesion and culture, the firm’s record of achievement has earned Sarbinoff a reputation as a servant leader. “As John Quincy Adams once said, I hope that means that my actions ‘inspire others to dream more, learn more, do more and become more.’ If that is my brand in the market, then it makes me feel humbled and grateful,” he says. “That is probably the greatest compliment I could hope to receive from this wonderful community.”

2019

With runway ahead for the Greater Phoenix commercial real estate cycle, Sarbinoff believes 2019 will be a strong one for the firm. “At an enterprise level, we have a tremendous number of tech upgrades slated for 2019 that will provide increased leverage for our teams to work more efficiently,” he says. “From a sector level, we see strong expansion prospects for multifamily, as well as increased demand for manufactured housing, RV and mobile home parks. Industrial properties will also flourish, particularly well-located warehouses.” © Copyright 2019 MP Media,LLC LLC © Copyright 2019 byby MP Media,

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STORY

“We have a perfect storm of unrivaled professionals, robust investment portfolio and a best-in-class corporate culture.” –Paul Komadina

Thomas Wolfe’s phrase “You can’t go home again” certainly does not apply to Paul Komadina, senior managing director and market leader, CBRE, Arizona. “I am a Phoenix native but went to college and lived in San Diego for over 17 years,” he says. “I never planned on coming back to Phoenix, but this new role is the only position that would cause me to leave San Diego.”

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STORY

Starting Points Accepting the role in August 2018, Komadina takes on a strategic leadership responsibility, managing over 1,000 employees in Phoenix and Tucson across CBRE’s verticals. That includes advisory & transaction services, investment sales, debt & structured finance, asset services, valuation & advisory services and project management.

“Taking people to the next level is what makes me go. I thrive on seeing others accomplishing their goals.” –Paul Komadina Background Growing up in Moon Valley, Komadina attended Brophy College Preparatory before going to the University of San Diego. “I had the opportunity to play Division 1 basketball as an invited walkon in San Diego, he says. “It was a great experience.” /// Enrolled in the Business Administration program, Komadina emphasized commercial real estate and finance, and for two summers returned to the Valley to intern at Ryan Companies. “John Strittmatter was my first mentor in the business,” he says. “I was involved in the development side, but John pushed me toward brokerage as a better opportunity and introduced me to CBRE.”/// Nearing graduation, Komadina pushed ahead with CBRE with hopes of landing a role in San Diego. “I just could not get over the hump, so I reached out to John and asked for help,” he says. “John met with the CBRE team shortly after and said, ‘If you do not hire him, I will,’ and the next day I had the job.”

CBRE: San Diego Working in the investment sales division beginning in 2005, Komadina spent eight years transacting, deal-making and learning the business. “I loved commercial real estate, but always found myself thinking about the business side, the bigger picture; the people, processes and strategy,” he says. “I wanted to be involved in the strategic decisions and the leadership of the organization.” /// “In 2013, the executive team extended the 50

CBRE: Phoenix opportunity and I was confident I could excel at the job,” he says. /// From 20132018, Komadina served as the managing director for the San Diego region, where he studied under the tutelage of executive managing director John Frager. “I learned from an amazing leader,” Komadina says. /// Frager says he could tell early on there were special talents in Komadina and a desire for something bigger. “He’s very conscientious and reflective of his own behaviors and actions, which over time make for a great leader.” Frager says the firm took a risk promoting Komadina to managing director at age 29. “It was risky but it was definitely the right role for him,” he says. /// Together, Komadina and Frager built a whole new management in San Diego. “It’s one of the best true teams that I’ve ever worked with in my 30 years in the business,” says Frager. /// The two leaders oversaw the CBRE office transformation into a Workplace360 office at the Westfield UTC shopping center. Komadina says executing the company’s global initiative to implement a flexible, open space, and technology-enabled workplace was one of his proudest moments. “Developing a vision and executing a plan to prepare 200 people across multiple generations for the move was difficult,” he says. “Seeing them not only be prepared, but truly thrive in the new environment was the most rewarding experience of my professional career.”

In the summer of 2018, Paul was offered the managing director and market leader role in his home state of Arizona at CBRE. “I felt prepared that I could handle the duties and make a difference,” he says. “John and I had built the playbook in San Diego, and I felt the blueprint could be replicated in Arizona.” /// Frager admits it was a bit of a shock when Komadina announced to the team in San Diego that he would be leaving. “We were incredibly happy for him for getting a promotion and to run a region that’s bigger than San Diego, but there was a shock factor at first. We thought, ‘What are we going to do without Paul?’” /// Komadina took on the position with his typical entrepreneurial and dynamic attitude. “The first few months have been a whirlwind, but I crafted a 90-day plan of action and have followed it to the letter with a focus on culture, community brand and operational excellence,” he says.

Leadership Approach Citing a lesson from Frager, Komadina realized that to accomplish what he wanted in the new role he needed to integrate his style and personality. “Leaders have different ways of directing and generating the best results from their team,” he says. “John has his methods and I have mine. He stressed that I need to be me.” /// Frager says Komadina’s strength is that he leads with his heart and follows with his mind.

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“The guy (Komadina) is just so bright. He’s got this rare combination of high EQ and IQ. He’s smart, but also really good with people.” –JOHN FRAGER

Executive Managing Director, CBRE San Diego

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Cover “The guy is just so bright. He’s got this rare combination of high EQ and IQ. He’s smart, but also really good with people.” /// For Komadina, that approach meant meeting everybody, asking a lot of questions and listening intently. “I believe so much of leadership is about relationships with the people alongside you. We have amazing talent here in Phoenix,” he says. “Meeting and hearing what they have to say is an important part of achieving organizational success.”

Personal Pursuing the move from San Diego to Phoenix first meant persuading his wife JJ. “She is from San Diego and her family is there, so the decision was not cut-and-dried,” he says. “And believe me, moving us along with our 3- and 5-year-old in the middle of July to the Valley was not easy,” he chuckles. /// JJ was also instrumental in getting Komadina to think about what he wanted his personal brand to be. “She asked me what kind of leader I wanted to be, someone who worked 15 hours a day until 10 p.m. and never saw my family, or someone who would demonstrate a work-life balance and the importance of family,” he says. “Following JJ’s guidance, I start my day very early but I make sure I am home for dinner no later than 6:30 on most nights.”

STORY

ability to invest in the business and our people and a best-inclass corporate culture.”

Rewarding Unlike the brokerage side of the business where the industry mantra is: “Eat what you kill,” Komadina understands that he only wins when his people win. “It is a different mentality. Helping others achieve success is my responsibility,” he says. “Taking people to the next level is what makes me go. I thrive on seeing others accomplishing their goals.”

Future CBRE certainly has a proven winner at the helm of its Arizona operations. The already-distinguished brand will undoubtedly receive an acceleration of success in the Grand Canyon State market based on Komadina’s sterling record. “The CBRE culture is obsessively focused on exceptional client outcomes while taking care of each other and having fun,” he says. “This is home once again.”

The Plan For Komadina, the model for excellence in Arizona depends on a confluence of objectives. “I need to engage with our team members, clients and influencers with a listen-first approach,” he says. “Achieving the goals we’ve established will happen as a result of working with the team and especially Cathy Teeter, managing director of advisory & transaction services. She is an amazing partner, and I credit her with getting me up to speed.”

Phoenix Rising A booming and diversified economy, strong population growth, wealth of intellectual capital and a pro-business atmosphere make Phoenix and Tucson enviable markets for commercial real estate, says Komadina. “We are extremely bullish on the vitality of the region.” /// The overarching task for Komadina and team is to burnish an already exceptional CBRE brand. “Clients will see an intense focus on business and community engagement,” he says. “We have a perfect storm of unrivaled professionals,

The Komadina Family

“He’s very conscientious and reflective of his own behaviors and actions, which over time make for a great leader.” –JOHN FRAGER Executive Managing Director, CBRE San Diego

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The Opus Group Larry Pobuda

Executive Vice President and General Manager

In 2014, commercial real estate veteran Larry Pobuda took on the responsibility of restoring the Opus Development Company brand in Greater Phoenix. It had been five years since the iconic developer shuttered operations in the metro amid the global financial crisis. “Opus Group leadership challenged me to build a great business that was market driven and sustainable,” he says. “As we enter 2019, we believe we have done this by hiring great people, building meaningful relationships and delivering first-class properties.”

Starting Points

In the fourth quarter of 2018, Opus elevated Pobuda to the role of executive vice president and general manager at Opus Development Company, LLC, overseeing the western United States. This new role includes the booming Denver and Austin markets, as well as Phoenix. “These cities represent strong growth markets, and we are tapping into the energy and economic strength of these areas,” Pobuda says. “Our focus continues to be primarily industrial, office and multifamily, including both senior and student housing.”

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Union Tempe

“I want our work, not our words, to be the deﬁning characteristic of Opus.” - LARRY POBUDA Executive Vice President and General Manager

Peoria on 352 apartments in the P83 corridor, a vibrant West Valley retail and entertainment district,” he says. /// Back in Mesa, Opus will expand its Longbow Gateway One with two additional phases. “There is high demand for industrial space in a number of areas throughout the Valley – from the East to the Southwest,” he says. Larry Pobuda

Greater Phoenix

Pobuda, a 30-year veteran in the business, sees tremendous potential in the Valley. “There are so many great submarkets in Greater Phoenix,” he says. “Phoenix has a strong story to tell – a growing population, a diverse economy and a vibrant, optimistic spirit.”

Projects

In recent years, Opus has developed a host of projects in excess of 2 million square feet and in varied sectors. It all started with Union Tempe in 2018, a mixed-use apartment, retail, hotel and public parking project consisting of 407 apartment and townhome units, 31,000 square feet of retail space, 767 parking stalls and a 198 room Canopy by Hilton Hotel. In Mesa, the company developed a 147,000-squarefoot spec industrial building, Longbow Gateway One. And in early 2018, the firm delivered a 540,000-square-foot facility, Goodyear Crossing Industrial Park Phase I, which is now occupied by Blue Buffalo, a division of Minnesotabased General Mills. “This first building is part of a 95-acre master plan development at Goodyear Crossing Industrial Park, which will include a manufacturing, assembly, and distribution campus for Minnesota-based Andersen Windows on the remaining 68.3 acres,” he says.

Upcoming

Possibilities

As part of Opus’ presence and re-launch, Pobuda seeks to build the firm’s identity through substance, not sizzle. “We are focused on great people, great projects and an eye toward philanthropic investment. In the four years that Opus has been back in the Valley, our Opus Foundation has contributed nearly $1million to Valley non-profit organizations including St. Vincent de Paul, Child Crisis Nursery, New Pathways for Youth, Be a Leader Foundation, Sunshine Acres and many more. I want our work, not our words, to be the defining characteristic of Opus,” he says. /// Pobuda and his team believe in building strong relationships with city and municipal partners as they identify new opportunities. “We see opportunity in the East and West Valley: Goodyear, Tempe, Mesa, Phoenix, Peoria and Scottsdale,” he says. “We will continue to take a disciplined approach, with an eye toward macro and micro economic trends that impact our business and our communities.”

Future

Opus has definitely returned to prominence, as the company enters its fifth year back in Greater Phoenix. “This is a terrific market, which has provided the firm with a compelling growth proposition,” he says. “As with Denver, Austin and other cities across our national footprint, Opus will deliver with an eye to the future, while being mindful of our past. We are very excited about the future.”

“DESPITE THE RECENT HEADLINES, ALL ASSET CLASSES IN CRE SHOULD REMAIN RELATIVELY STRONG IN 2019, GIVEN THE ROBUST ECONOMY BOTH IN PHOENIX AND NATIONALLY.” - PAUL ENGLER

ince last October, we have seen a stock market correction, tariff and trade concerns, a rising interest-rate environment and a potential slowing of the U.S. economy. While the headlines may unnerve some in the Metro Phoenix commercial real estate market, Paul Engler, executive vice president of CRE for Alliance Bank of Arizona, remains optimistic. “Despite the recent headlines, all asset classes in CRE should remain relatively strong in 2019, given the robust economy both in Phoenix and nationally,” he says. “There are some obvious headwinds that we’ll keep a close eye on, but we have built a diverse CRE portfolio that consists of clients with admirable track records and great assets.”

Starting Points Alliance Bank of Arizona operates under the sizeable umbrella of Western Alliance Bank, which holds more than $20 billion in assets and boasts a No. 2 rating on the Forbes 2018 “Best Banks in America” list. Since its inception, the vision of the company has been to support the business community with capital, capabilities and market intelligence. Headquartered in Phoenix, with operations in Arizona, California and Nevada, the company has grown into one of the region’s premier financial institutions. “I am enjoying working with Western Alliance Bank’s new CEO, Ken Vecchione, whom I’ve known for years as both a board member and past president of Western Alliance Bank,” says Engler.

Alliance Bank of Arizona Since 2013, Engler has helped to facilitate the expansion of the Arizona division’s commercial lending portfolio alongside Alliance Bank of Arizona CEO Don Garner. “He is extremely knowledgeable and is very supportive of the team’s work,” Engler says.

The Alliance Bank of Arizona and Western Alliance Bank differentiator begins with its focus on commercial, not retail, banking. “A key part of our approach to lending is that we are anything but cookie-cutter,” says Engler. “We bring the expertise and take the time to review every opportunity strategically, carefully considering risk, as well as the upside, and delivering lending structures that make sense for our business customers and for us.”

2018 Engler and his team have built a diverse CRE portfolio that consists of highly-experienced clients with great projects. “2018 was an exciting year for Alliance Bank of Arizona that brought many opportunities,” he says. “Thankfully, I can think of many highs during the year but struggle to think of too many lows. We have a great team in place.”

2019 The year ahead certainly has complexities, as the economy chugs along to its longest recovery on record. “Some of the risks could potentially have a role in the feasibility of certain projects,” he says. “But, on the whole, I believe Alliance Bank of Arizona and Western Alliance Bank are well positioned for future growth, both organically and through new prospects.”

Environment The backdrop for strong growth in 2019 is a vibrant state and metro economy with business confidence flourishing. Engler expects that multiple sectors will perform well. “Industrial, office, mixed-use, multifamily and for-sale residential continue to be strong in Phoenix,” he says. “Alliance Bank of Arizona will continue to be a go-to financing resource for the wide range of projects in the region. CRE is an incredibly important part of our local and state economy.”

Future Alliance Bank of Arizona remains on a terrific trajectory with Engler leading the CRE division. “I’ve always enjoyed the role we have as bankers in helping developers and businesses of all kinds as they shape the Arizona landscape,” he says. “I would like to personally thank all of our clients for their business and continued relationships. We look forward to continuing to serve our clients, to developing exciting new relationships, and to supporting new projects in 2019.”

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WITH VELOCITY RETAIL GROUP

ave Cheatham, president, and Darren Pitts, executive vice president, at Velocity Retail Group are experts in the retail market. Combined, Cheatham and Pitts have over 50 years of experience in commercial real estate. The companyâ&#x20AC;&#x2122;s client-first approach integrated with its full-service platform make the firm a top leader in the Valley. Both accomplished authorities in the industry, Commercial Executive Magazine hears from Cheatham and Pitts on upcoming trends, updates in the industry and whatâ&#x20AC;&#x2122;s on the retail horizon in 2019.

What is your prediction for e-commerce sales and traditional retail sales?

Velocity forecast: What are you looking forward to accomplishing in 2019?

The strongest retailers are those that are making the distinction between brick-and-mortar stores and e-commerce less visible. Almost all retailers, whether they are e-commerce or brick and mortar, realize that they need to have both offerings to be successful in the next decade. They can no longer operate where e-commerce sales are in separate silos to the brick-and-mortar sales. It is not about competing or pitting one against the other. Retailers need an omnichannel solution to be able to provide what their customers want.

To see our firm continue to thrive by providing the highest level of service to our clients in the marketplace. We are very encouraged by the activity from retailers that are expanding and planning to expand with multiple locations. The activity is in all sectors, from restaurants to service providers and traditional retailers. This coupled with the outlook for a strong national and local economy provides a great catalyst from which to continue our business growth and the growth of our clients.

Dave Cheatham, Darren Pitts

What advantages does Phoenix have in the retail sector over other similar markets? The Phoenix retail vacancy rate has finally returned to a healthy level, but we still have ample retail product available. If you compare other markets such as Los Angeles, San Francisco, Seattle, or Portland to name a few, their vacancy rates are so low that retailers find it extremely difficult to obtain quality locations in certain trade areas. In many cases, existing buildings have to be torn down and rebuilt or remodeled. /// Phoenix has a glut of big-box space. Many of the markets comparable to Phoenix in population have significantly less big-box vacancy. Most tenants that expand into the Phoenix market find it easier to put together a core group of sites to launch a market entry. The coastal markets have always been very difficult, but more recently peer markets like Las Vegas and Denver have become much tighter markets. /// Our market also has one of the higher levels of available land and pads for new development. Although that is changing with competition from single-family and multifamily construction, we still have available land. As our market tightens up, we are seeing more conversions or teardowns of existing buildings, but our levels aren’t even close to what is happening in the coastal cities. What types of businesses are driving the retail sector currently? On the big-box front, the biggest player has been fitness, with dozens of new locations and new concepts throughout the Valley. Right behind fitness are value-oriented stores, furniture and grocery.

2019 forecast: It’s no secret the retail market often fluctuates. What are the top categories creating activity in the market? Two main categories that are creating activity are restaurants and value-oriented big-box concepts. /// Demographic and lifestyle shifts continue to create significant demand for quickservice restaurants for convenience and chef-driven concepts for an experience. Chipotle, Salad and Go, Panera, Dutch Bros, MOD Pizza and others lead the way. Many of the quickserve concepts have realized that they need a drive-thru in order to provide even more convenience and service to their customers. Some of these concepts are closing in-line stores in favor of relocations to sites where they can have a drivethru. /// New grocery competition will launch in 2019 with the entrance of Aldi, a deep discount grocer entering the market. This will have an impact on prices of other grocery stores and they will need to respond to the extremely low Aldi pricing model. With the new Aldi stores, we will see new development opportunities in and around their stores. Some of this activity will be filling vacant neighborhood and regional boxes, as well as ground up development. We are also experiencing the tepid expansion of other grocers such as Safeway who have been dormant in the last decade. /// Additionally, many big boxes that deliver value to the consumer continue to be in expansion mode. At Home, EoS Fitness, Planet Fitness, Sprouts, TJ Maxx, Marshall’s, HomeGoods, Ross Dress for Less, Goodwill, Planet Fitness and Nordstrom Rack have all opened stores in the last 18 months in our market. XX 59

Snell & Wilmer A nationally recognized powerhouse law firm and one of the largest in the Western United States, Snell & Wilmer recently celebrated an astounding 80 years in business. The firm was founded in 1938 when Mark Wilmer joined Frank L. Snell Jr., Riney Salmon and Charles Strouss. Both Snell and Wilmer found their individual strengths around the 1950s. Wilmer established his position as one of Arizonaâ&#x20AC;&#x2122;s leading trial lawyers, while Snell emerged as a visionary in the community helping the state capitalize on post-World War II opportunities. In the many decades to come, the firm would set itself apart by expanding nationally and internationally to California, Colorado, Utah, Nevada, New Mexico, Idaho, Washington D.C. and Mexico. Today, Snell & Wilmer is a full-service business law firm with more than 400 lawyers practicing in 12 locations throughout the United States and Mexico. With a unique combination of gifted attorneys, exceptional staff and a firm-wide commitment to quality, client satisfaction and service, Snell & Wilmer shines as an influential law firm in the Valley. ÂŠ Copyright 2019 by MP Media, LLC

No other lawyers in the state of Arizona have been responsible for more downtown Phoenix development than Richard (Dick) Mallery and Nick Wood, senior partners at Snell & Wilmer.

heir tenure in the business started decades ago, when downtown Phoenix was lined with outdated buildings and empty streets. Fast forward to today’s revitalized metropolis and the city is thriving, thanks to the powerful individuals behind numerous iconic developments. Mallery started with Snell & Wilmer in 1964, more than 50 years ago, and his legacy in downtown Phoenix is omnipresent. “He was an important part of building downtown and creating the essential buildings that are here today,” says Wood. In the ‘80s and ‘90s, Mallery was crucial to the development of major buildings including the Herberger Theater Center, the Phoenix Biomedical Campus, the Chase Tower, Heritage Square and more. Wood joined the firm in 1993. “They asked me to come here and build the zoning practice,” recalls Wood. “In the early 2000s, I began to focus time on downtown.” Wood says that in addition to iconic buildings, Mallery also had a major role in bringing the medical school and research centers to downtown Phoenix. “Dick’s wife, Francie, died of cancer in 2000. He promised her he was going to spend the rest of his life trying to find a cure,” says Wood. “Dick went out and convinced the city and other stakeholders to build it.” Wood says Mallery raised over $60 million to build the Cancer Research Center downtown. That, along with the Phoenix Biomedical Campus, the Translational Genomics Research Institute and the University of Arizona Medical School, are here today because of Mallery. Investing in higher education, increasing the number of multifamily units and restructuring countless zoning laws for high-rise office, hotel and adaptivereuse buildings are some of the major things Mallery and Wood put into place to transform downtown Phoenix over the last 15 years. The duo has only just scratched the surface of their journey revitalizing the core of Phoenix. Mallery and Wood’s role in transforming downtown Phoenix will be part of millions of peoples’ lives for decades to come.

‘80s and ‘90s Development Mallery was responsible for the negotiation and development of several major projects in Phoenix during the ‘80s and ‘90s. The Herberger Theater The Downtown Biomedical Campus The Translational Genomics Research Institute (T-Gen) University of Arizona Medical School The Cancer Research Center The Hyatt Regency Hotel The Chase Bank tower Arizona Science Center Heritage Square The Arizona Center

Godfrey Hotel

Location: Second Street, North of Portland Street

Wood and his team helped True North Development to acquire, and to obtain the necessary entitlements for, the development of a Godfrey Hotel at Second Street, just North of Portland Street. © Copyright 2019 by MP Media, LLC

44 Monroe

Nick Wood Projects

Location: Northeast corner of First Avenue and Monroe Street The 34-story condominium tower at the northeast corner of First Avenue and Monroe Street in downtown Phoenix. Woodâ&#x20AC;&#x2122;s client was Grace Communities. Wood and his team completed all the zoning entitlements for the project.

Kenect Luxury High-Rise Apartments

Location: Southeast corner of Central Avenue and Polk Street Wood and his team represented Akara Development for the construction of a 22-story luxury apartment building at the southeast corner of Central Avenue and Polk Street. Nick and his team obtained all of the necessary entitlements and negotiated amendments to the existing Development Agreement and the GPLET lease with the City of Phoenix.

Colliers Center

AERIAL VIEW

Location: The Fillmore district Wood and his team represented Hines for the acquisition of the portion of the Colliers Center, otherwise known as Block 24, along the south half of the Colliers Center building. Snell & Wilmer also negotiated an amendment to the existing Development Agreement with the City, which includes a GPLET. Hines intends to build a 25-story luxury apartment building on the site. ÂŠ Copyright 2019 by MP Media, LLC

Cambria Hotel

05.10.2018

Location: Roosevelt Row district Wood and his team helped True North Development to acquire the property and to obtain the necessary entitlements for the development of a Cambria Hotel at the northwest corner of Third Street in Portland Street. The hotel is currently under construction.

Snell and Wilmer Projects “In the early 2000s, leadership across the City pushed for the diversification of the economy. As part of that diversification, plans were created to develop a biomedical campus on City-owned property in downtown. Dick Mallery was instrumental in making this project come to fruition, and helping bring TGEN to the newly conceived Phoenix Biomedical Campus. The PBC then acted as one of the anchors that drove the revitalization you see in downtown Phoenix today. That revitalization now includes the location of more than 300 technology companies and 10,000 biology and life-science workers in downtown Phoenix. More than 5,000 dwelling units and new office buildings are now under construction, in planning or recently completed, bringing thousands of new people to live and work in downtown. Nick Wood and Dick Mallery have played a significant role in changing the skyline of Phoenix.” - Christine Mackay, Director of Community and Economic Development, City of Phoenix

The Arizona Center

Location: Fifth Street and Van Buren North American Development Group/Palm Court Project intends to build a 28-story luxury apartment building at the northwest corner of Fifth Street and Van Buren in the Arizona Center. Wood and his team assisted North American with submitting for, and negotiating, a GPLET Lease for the project.

Knipe House

Location: Roosevelt Row district

Snell & Wilmer helped True North Development Company, with the submission of a response to an RFP, and the subsequent purchase of the historic Knipe House, on Second Street, north of Roosevelt, from the City of Phoenix. Jonathan Vento plans to renovate and adaptively reuse the home as a restaurant.

“Nick Wood and Snell & Wilmer have probably touched more downtown skyline projects than any other person or ﬁrm. Nick provides a steady hand for developers navigating the sometimes uncertain waters of city and community processes.” – John Graham, Sunbelt Holdings & Geoff Beer, Centricity Real Estate

One East Jefferson Street

Location: Southeast corner of Central Avenue and Jefferson Street Formerly known as the Jefferson Hotel, this historic property was prominently featured in the opening scene of Alfred Hitchcock’s movie “Psycho.” It was the tallest building in Arizona when it opened for business in 1915. Wood represented Jefferson Place Partners, LLC, for the negotiation of a Redevelopment and Purchase Agreement with the City, which included the City’s first perpetual conservation easement on a major historic structure. Wood was also instrumental in the acquisition of the property and subsequent abandonment and acquisition of an adjacent alley. Jefferson Place Partners (Sunbelt Holdings and Centricity Real Estate) plan to adaptively repurpose the former Jefferson Hotel into luxury condominiums, and to construct a new condominium building immediately east of the former hotel. Both the historic and the new buildings will have ground floor restaurant and retail space. 64

Snell and Wilmer Projects

Hampton Inn

Location: Southwest corner of Second and Polk Street The new 11-story Hampton Inn at the southwest corner of Second and Polk Street. Wood and his team assisted Mortenson Development with the acquisition of the property, the amendment to the existing Development Agreement and GPLET lease with the City of Phoenix and obtaining the necessary entitlements to build the project.

Arizona State University

Location: North First Street and Taylor Street Wood represented ASU’s Sandra Day O’Connor College of Law obtaining the necessary entitlement approvals for the construction of the law school. Wood is also currently an adjunct professor of law at the law school.

Hilton Garden Inn

Location: Southeast corner of Central Avenue and Monroe Street The 12-story historic building (the original home of The Valley Bank) at the southeast corner of Central Avenue and Monroe Street. In 2006, on behalf of the Grace Communities, Wood and his team negotiated a development agreement and GPLET lease with the City of Phoenix so that the office building could be converted to a hotel. Due to the economic downturn that began in 2007, Grace Communities was unable to complete the adaptive reuse conversion. In 2012, Wood was engaged by CSM (headquartered in Minneapolis, Minnesota) to assist the company in completing the conversion of the building into a boutique hotel, including among other things, the utilization of New Market Tax Credits.

X Phoenix

Location: West Monroe Street and Second Avenue Wood and his team assisted Property Markets Group with the creation of a GPLET lease and Development Agreement with the City of Phoenix. Snell & Wilmer also assisted with the acquisition of the property and obtaining the necessary entitlements for the development of a 600-unit, twin tower, 25-story luxury apartment project with 35,000 feet of retail space.

Future Downtown Projects

Wood and his team are working on a number of other proposed downtown Phoenix projects, including, for example, a 17-story residential tower at the northeast corner of Third Avenue and Fillmore, The Battery, a 400-foot residential tower, a 270 foot condominium tower in the Warehouse District and a new hotel.

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Committed to being your perfect ﬁt.

IMPACT DEALS IN 2018

CARLYLE SOUTH MOUNTAIN APARTMENT & TOWNHOMES David Fogler, Steven Nicoluzakis $90M Sale | 552 Units

NORTERRA WEST ONE

CANCER & RESEARCH CENTER PORTFOLIO

McKESSON SCOTTSDALE CAMPUS

6835 WEST BUCKEYE ROAD

Devpal Gupta, Peter Menna, Curtis Chickerneo

Chris Toci, Chad Littell, Greg Mayer, Jerry Noble, Jim Wilson

Lease Renewal | 1,009,351 SF

146,245 SF

PRESCOTT ON THOMAS

Chris Toci, Chad Littell

Jim Crews

$48M Sale | 147,638 SF

$33.35M Sale | 382 Units

Jim Wilson

SAN TAN VILLAGE MARKETPLACE Michael Hackett, Ryan Schubert $51.4M Sale | 285,581 SF

$67M Sale | 271,085 SF

McKESSON SCOTTSDALE CAMPUS III

90 MOUNTAIN VIEW PHASE II

Jim Wilson, Greg Mayer, Jerry Noble

Steven Lindley, Bob Buckley, Tracy Cartledge

124,900 SF Lease

$30.5M Sale | 92,562 SF

ASCEND AT CHANDLER AIRPORT

KIERLAND CORPORATE CENTER II

BUNGALOWS ON ESTRELLA

PHOENIX GATEWAY CENTER

Jerry Noble, Greg Mayer, Patrick Schrimsher

Eric Wichterman, Mike Coover

Jeremy Korer $23.46M Loan

Jerry Roberts, Pat Boyle LOWE (Landlord)

130,642 Lease SF

$25M Sale | 81,894 SF

Larry Downey, Brett Thompson, Nick Nudo WellCare Health Plans, Inc. (Tenant) 81,306 SF Lease

2300 SOUTH 51ST AVENUE Will Strong, Mike Haenel, Andy Markham, Phil Haenel $27.22M Sale | 335,459 SF

PERIMETER PARKVIEW CORPORATE CENTER Tim Whittemore, Greg Mayer, Jerry Noble, Patrick Schrimsher Roxborough Properties (Landlord) Mitch Chilton, Tom Jacobs P.F. Chang’s (Tenant) 53,559 SF Lease

For more information, please call +1 602 954 9000 cushmanwakefield.com

ast fall, Nationwide Realty Investors unveiled plans for a 134-acre premiere mixed-use development called Cavasson. Located at the northwest corner of Loop 101 and Hayden Road, Cavasson will feature approximately 1.8 million sq. ft. of best-in-class commercial ofďŹ ce space, including a 460,000 sq. ft. Nationwide corporate facility. Upon completion, Cavasson will feature nearly 1,600 residential units, hotels and retail, restaurant and shops, in a pedestrian friendly setting with bike paths, green spaces and community gathering areas. Cavasson will break ground on the initial phase of the development later this year. Cavasson is owned and developed by Nationwide Realty Investors in partnership with Grayhawk Development.

Brian J. Ellis

Gov. Doug Ducey

Mayor W.J. “Jim” Lane

“Cavasson has tremendous visibility, along a great growth corridor, with lots of amenities being built around it. Major employers want to be part of this highly designed, best of class mixed-use project in Scottsdale. We’re looking forward to breaking ground later this year.”

“Nationwide’s choice to make a major investment in Arizona will build upon the great strength of our economy by adding hundreds of high-quality jobs. In addition, I’m pleased that proceeds from Nationwide’s purchase of State Trust Land for a significant mixed-use development will support K-12 public education in our state.”

“Nationwide Realty Investors has vast experience in creating desirable and successful commercial mixeduse developments in cities across the country. Cavasson will be a complement to our valued existing business environment as well as a testament to Scottsdale’s strategic efforts to provide the next generation workforce a place for additional opportunity.”

President and COO of Nationwide Realty Investors

of Arizona

City of Scottsdale

TENANT TRENDS FROM AVISON YOUNG’S WALLY HALE, WITH AN INSIDER LOOK AT THE COMPANY’S POSITION ENTERING 2019 WITH DAVID GENOVESE AND MARK SEALE

David Genovese, Wally Hale, Mark Seale

f there was a tree map of the influencers and leaders of the tenant representation sphere in Greater Phoenix, Wally Hale, principal, Tenant Advisory Services at Avison Young, would be highlighted as one of the crucial branches. “I started out on the tenant side in 1991 when the model was relatively new,” he says. “I thought that this would be a good niche market.”

Background

Starting Points

Tenant Representation

In May 2018, Hale joined Avison Young after a 10-year campaign at JLL. “Wally is a proven leader in tenant representation and will play a pivotal role in Avison Young’s expansion in the region,” says David Genovese, principal and managing director, Phoenix. One of the world’s fastest growing commercial real estate companies, Avison Young’s 2,700 real estate professionals occupy 85 offices in 76 U.S. and international markets. “This is an organization that is built on client advocacy and I am excited to be a part of their vision,” says Hale.

Working in the occupier space is a role that Hale relishes. “Service can never go too far,” he says. “Tenant representation is unique. There is real emphasis on knowing the client and their business and not just the transaction details.” Ask any successful professional in CRE and they will say the secret to longevity and achievement is relationships. “For me, that is the formula not only in tenant representation, but all brokerage - building and preserving client relationships,” he says. Throughout his career, Hale has worked to build an extensive network of both tenants and landlords with a focus

Hale entered the industry in 1983 after graduating from the University of Arizona. Positions at CBS Property Services, Insignia and Staubach prepared him for JLL and now Avison Young. “He understands this side of the business as well as anyone,” says Mark Seale, principal and director of Brokerage Services, Phoenix. “There is a deep commitment to his clients and their best interest.”

on managing the push/pull dynamic. “Owners are incredibly important to what I do for tenants,” he says. “There can never be a one-sided approach. In fact, one of my mentors, Joe Porter, once told me that a fair and good deal was one in which after a lease negotiation, both sides shook hands knowing they did not get everything they wanted.”

Greater Phoenix The Greater Phoenix market continues as an outperforming metro nationally. “So many factors are working in the Valley’s favor: population growth, workforce talent, competitive environment, quality of life and affordability,” says Genovese. Working primarily in the office segment with some industrial exposure, Hale sees extremely positive momentum. “There is a snowball effect,” he says. “Strong growth is attracting investors and developers, and corporate clients are expanding their footprints in Phoenix, because of its dynamic environment.” Much of the action in the office market rests in the Southeast Valley and the strength of municipalities such as Tempe, Gilbert, Mesa and Chandler. “These areas are prime areas for financial services firms and technology companies,” says Seale. “Tempe boasts a robust innovation portfolio, and the Valley metro is now the 13th largest technology hub in the country.”

Conditions With strong fundamentals and historically healthy absorption, the Greater Phoenix office trajectory pushes higher. “I do not see an imminent downturn in my crystal ball,” says Hale. “I do see tenants who are looking to lock in their rates for a longer period, as long as they have some flexibility and optionality.” Hale also notes that owners are working overtime to satisfy the needs of their users. “It is all about the ability for companies to retain and attract talent,” he says. “That means collaborative environments, mobility, in-house amenities, and proximity to entertainment and culinary attractions. There is also a growing trend toward co-working spaces.”

Future Avison Young looks to have found its tenant representation leadership with the arrival of Hale as well as Seale before him. Working in concert, Genovese, Seale and Hale see great opportunity in 2019. “There are so many terrific projects coming to the market, and we are positioned well to capitalize for our clients,” Hale says.

Easing Into the Future

Easing Into thehonored Future The pragmatic ancient Romans Janus—the deity The pragmatic ancient Romans honored of transitions, of passages, looking to both pastJanus—the and future.deity of transitions, of passages, looking to both in past The long-forgotten Janus seemed to lurk quietly theand future. The long-forgotten Janus seemed to lurk quietly in the minds of many real estate practitioners as they reflected on minds of many real estate practitioners as they reflected on property as a capital asset. /// A veteran asset adviser said that property as a capital asset. /// A veteran asset adviser said that “2019 will be a turning-point year. I think about the capital“2019 will be a turning-point year. I think about the capitalmarkets correction that is coming. We have been used to markets correction that is coming. We have been used to easy money veryand lowvery rates for so long. the istime easyand money low rates for soNow long.is Now the time o harvest, hedge,toto be cautious.” Even those who see to to harvest, hedge, to be cautious.” Even those who see expansion continuing to 2020to and beyond stress stress elements of of expansion continuing 2020 and beyond elements change. The key The word forword realfor estate’s future future performance is is change. key real estate’s performance ransformation—in technology, in generational choices, in a in a transformation—in technology, in generational choices, reconfi guration of preferences by geography and by property reconfiguration of preferences by geography and by property type, and in the potential for new investors in the asset ype, and in the potential for new investors in the asset class.class.

Not Just Laborers

Laborers The Not CEO ofJust a construction company active in several The CEO a construction company several gateway citiesofexplained that this issueactive is notin just a question gateway cities explained this issue is notsecuring just a question of blue-collar workers. He isthat having difficulty blue-collar workers.architects He is having diffi culty securing and of retaining engineers, and estimators needed and retaining engineers, architects and estimators needed to get the most out of advancing technologies. “Building to get the most out of advancing technologies. “Building information management [BIM], for example, gets a lot of information management [BIM], for example, gets a lot of attention because of its visualization capabilities. Projects attention because of its visualization capabilities. Projects are full of folks using their tablets. But are full of folks using their tablets. Butthe thekey keyisisintegrating integrating all that information to speed completion all that information to speed completionand andlower lowercosts, costs, while capturing those efficiencies forforfuture while capturing those efficiencies futureuse.” use.”/// ///Mining Mining the potential for for productivity improvement the potential productivity improvementisisthe themissing missing link link to sustained or enhanced economic to sustained or enhanced economicgrowth growthin inaalaborlaborshort era. The temporary bump provided by the tax stimulus short era. The temporary bump provided by the tax stimulus in 2018 notwithstanding, growth sincethe theglobal globalfinancial financial in 2018 notwithstanding, growth since

Double Whammy Double Whammy

Don’t underestimate the power of the comics pages. For those

Don’t underestimate the power of the comics pages. For those who might wonder, the terms whammy and double whammy who might wonder, the terms whammy and double whammy (now included in Merriam-Webster’s) were coined in the (now included in Merriam-Webster’s) were coined in the popular “Li’l Abner” cartoons in the Sunday funnies. But now, popular “Li’l Abner” cartoons theseriously, Sunday funnies. But now, double whammies are in taken as a senior consultant double whammies are taken seriously, as a senior consultant and investment adviser characterized the conditions. “One and investment adviserthings characterized the conditions. “One of the scariest is that U.S. fertility is way below of the scariest things is that U.S.We fertility is replacing way below population replacement. are not ourselves, but population We arethrough not replacing ourselves, but wereplacement. have always [grown] immigration.” A declining birth rate and sharply reduced immigration represent we have always [grown] through immigration.” A declining a whammy for theimmigration U.S. economy.represent /// For some birth ratedouble and sharply reduced a time now, concerns about labor force availability have been top-of-mind double whammy for the U.S. economy. /// For some time now, for business leaders, in real estate and across the spectrum concerns about labor force availability have been top-of-mind of industries. It real is now nearly two decades “talent” was or business leaders, in estate and across thesince spectrum identified as the spark for 24-hour city growth, and more of industries. It is now nearly two decades since “talent” was recently, for the 18-hour cities. The agglomerative power of dentified as the spark for 24-hour city growth, and more talent is the key to productivity, profits and urban vitality. The recently, for the 18-hour cities. The agglomerative power of top two economic and financial issues highlighted in ULI’s alent is the key to productivity, profits and urban vitality. 2019 survey results are related: job (and income) growth and The top two economic financial issues highlighted in our qualifi ed labor and availability. 2019 survey results are related: job (and income) growth and qualified labor availability. 72

Importance of Issues for Real Estate in 2019 No importance

Moderate importance

Economic & Financial Issues Job and income growth

4.31

Qualified labor availability

4.18

Interest rates and cost of capital

4.02

Global economic growth

3.44

Regulations

3.37

Inflation

3.36

Tax policy Currency strength

3.31 2.98

Social & Political Issues Political landscape

3.61

Government budget issues

3.61

Immigration

3.47

Income inequality

3.28

Rising education costs

3.17

Global conflict

3.06

Social inequality

3.05

Terrorism

2.72

Epidemics

2.32

Real Estate & Development Issues Construction costs Land costs Housing costs and availability

4.59 4.14 4.00

Infrastructure & transportation

3.95

Capital availability

3.68

Great importance

crisis has been moderate at best. The key reason appears crisis has been moderate best. The key reason appears to be disappointingly low at productivity growth. Last year to be disappointingly low productivity growth. Last year in in Emerging Trends, we addressed this issue as “Working ULI’s Emerging Trends, they addressed this issue in “Working Harder, Smarter.” Despite the obvious need stemming from the “double whammy,” U.S. research development (R&D) Harder, Smarter.” Despite the obviousand need stemming from spending haswhammy,” dropped to 0.7research percent of gross domestic (R&D) the “double U.S. and development product (GDP), down from 1.2 percent 1976, spending has dropped to 0.7over percent of grossindomestic according to thedown American for the product (GDP), from Association over 1.2 percent in Advancement 1976, of Science. /// Largely as a consequence, the most recent according to the American Association for the Advancement of Science. /// growth Largelyof asjust a consequence, Congressional Budget average GDP 1.9 percent in the 2018–2028 Office projections from April 2018 show average GDP growth period, with job gains averaging 0.5 percent annually, or a net of just 1.9ofpercent theyear. 2018–2028 period, with jobjobs gains increase 830,000inper That’s just 69,000 new per averaging 0.5 percent annually, or a net increase of 830,000 month, versus the 200,000 per month average achieved since the recovery in earnest in November 2010. per employment year. That’s just 69,000began new jobs per month, versus the Slower growthaverage will inevitably result lower levels of 200,000GDP per month achieved sinceinthe employment real estatebegan market activity.in November 2010. Slower GDP recovery in earnest

growth will inevitably result in lower levels of real estate Slowdown Challenges market activity. This sustained deceleration in growth—by measures of total output, productivity and employment—presents a challenge to real estate markets.Challenges The challenge is a prospective slowdown Slowdown in demand thatdeceleration is persistentin and impactful,measures although of with This sustained growth—by total variations, across geography and property types. a///challenge In output, productivity and employment—presents to response to this slowdown, real estate may seek the most real estate markets. The challenge is a prospective slowdown productive use of its existing assets, as well as identifying in that is persistent and impactful, with thedemand type of new construction needed by size,although design and variations, across geography and property types. /// In functionality. The slower growth rate and lower levels of response to thiscould slowdown, realrisk estate maynew seek the most future demand increase in any project. productive use of its existing assets, as well as identifying the type of new construction needed by size, design and New Opportunities functionality. slower growth ratemean and lower levels be of Slower growthThe does not necessarily there won’t future demand could increase risk in any new project. opportunities. Functional obsolescence is likely to lead to the The current and any future shortage of affordable housing

may be met by the repurposing of other property types such as New Opportunities Slower growth does not necessarily mean there won’t be continue to seeFunctional development activity as the sectors adapt opportunities. obsolescence is likely to lead toto the changes consumer behavior. Twenty yearstenant of successful need for in new office space to meet changing demands. urban revitalization has amply illustrated the appeal and The current and any future shortage of affordable housing adaptability of older buildings in an evolving economy and may be met by the will repurposing of other property society. /// Success emerge from those marketstypes that such as office, retail and hotel. The retail and industrial sectors tackle their problems innovatively—requiring precision in should continue to see activity as the sectors providing the right realdevelopment estate in an increasingly specialized adapt to changes in consumer behavior. 20 years of successful economy. But success will elude those markets remaining passiverevitalization or stubbornlyhas applying century urban amply 20th illustrated theapproaches—real appeal and estate expansion to ride economic growth—to 21st century adaptability of older buildings in an evolving economy and challenges. society. /// Success will emerge from those markets that tackle their problems innovatively—requiring precision in providing Excerpts from the report by the Urban Land Institute and PwC, PwC and the Urban Land Institute: Emerging Realan Estate® 2019. Washington, D.C.: PwC and the Urban Land the right real Trends estatein in increasingly specialized economy. Institute, 2018. But success will elude those markets remaining passive or stubbornly applying 20th century approaches— real estate expansion to ride economic growth—to 21st century challenges. Excerpts from the report by the Urban Land Institute

Risks from extreme weather

3.31

and PwC, PwC and the Urban Land Institute: Emerging

Environmental & sustainability requirements

3.29

the Urban Land Institute, 2018.

Wellness & health features

2.91

NIMBYism

2.67

Trends in Real Estate® 2019. Washington, D.C.: PwC and

James Meng and Jon Grantham help hotel buyers and sellers maximize the asset

uccessful brokerage partnerships are created with blended skill sets, common goals and synergistic personalities. Finding the right ﬁt can catapult the team to star status. Hospitality brokerage requires even more ﬁne tuning, delving into an asset class that reaches beyond the traditional commercial real estate realm. Jon Grantham and James Meng of Colliers International in Greater Phoenix formulated that perfect combination of backgrounds, skills and contacts to become Metro Phoenix’s most successful hotel brokers of 2018.

How do you decide to enter the hotel brokerage field? It was a natural choice for James Meng, whose family worked within the hotel business his whole life. “My father was a hotel developer and my family owned and operated a number of hotels during my life,” says Meng. “During my youth, I worked in almost every aspect of hotels and learned the details of day-to-day operation.” As an adult, Meng developed and owned his own hotel management company, managing over 14 hotels and more than 1,600 rooms.

James Meng

This background made Meng the perfect match for Jon Grantham, a man whose childhood was equally immersed in the field, though Grantham’s family was focused on real estate. “My father had a small single-family portfolio he amassed through a series of 1031s during the 90s and early 2000s,” says Grantham. “My father would take me to do renovations to empty units and visit tenants... I hated it. It became fun when my dad’s agent toured us through potential new acquisitions. One day, on a trip with my family to San Francisco, I saw a huge ‘Now Leasing’ sign on an office building and discovered commercial real estate.” Grantham worked at a large commercial real estate research firm during college and became a junior agent after graduating. He entered the field with knowledge of construction financial models, awareness of demand generators and indices that truly affect real estate. /// Meng was a natural for the hospitality asset category because of his operational knowledge.

This well-matched partnership joined forces to create one of the strongest hotel property teams in the region. During 2018, the team completed 7 transactions that included 11 hotels with 1,259 rooms. According to Grantham, “We have been transacting more institutional deals and been able to demonstrate how operational experience makes a huge difference when doing a hotel transaction.” In an Arizona environment with cap rates in the low-9 percent range, their transactions have sold in the low-6 percent range because of their assistance creating operational efficiencies. Creativity also sets the tone for this group. In 2018 they explored sale lease-back options, which allow owners to maximize payouts non-recourse and lock in longterm, low-interest debt. A large transaction of this sort last year attracted new clients wanting to use this vehicle of recapitalization. Another trend the team focuses on is the recent increase in 10-year Treasury rates that impact the market. “Banks are seeing 2019 and 2020 as soft years for hotels,” says Grantham. “As investors demand higher returns, exterior-corridor hotels have been reaching record-high prices per room. This is a great time to dispose of a well-operating, exterior-corridor hotel.” Meng and Grantham envision that supply and demand will hit equilibrium in 2019. Increasing demand will finally meet the supply level, which will force occupancy to drop. However, according to Grantham, an increase in convention business is forecasted for Phoenix through 2021. “We are hoping new supply and increased conventions will create a push in ADR and balance out the increased room counts.” According to Grantham and Meng, 75 percent of the Valley’s proposed new hotels will enter the market in 2019. High construction costs of these primarily upscale properties will lead developers to demand high rack rates to meet investor return expectations, which will in turn raise ADR for the market.

Jon Grantham

This team looks forward to an even better 2019. According to Grantham, “We have great relationships in the

“Our ability to analyze a hotel from an operational side beyond the pure transactional brokerage approach is invaluable. We provide insights to the buyer about upside potential in the asset, as well as help sellers to be more eﬃcient, increasing their bottom line in preparation for sale.” - James Meng VICE PRESIDENT

hospitality world that help us provide clients a clear view of what to expect in a complex hospitality transaction. We keep our eye on different PIP material suppliers to counterbalance recent tariffs, identify the most active contractors and research which debt shops are the most competitive.” “Our ability to analyze a hotel from an operational side beyond the pure transactional brokerage approach is invaluable,” says Meng. “We provide insights to the buyer about upside potential in the asset, as well as help sellers to be more efficient, increasing their bottom line in preparation for sale.” With 2019 in full view, their hope is to expand the team with more professionals on the ground in major metropolitan areas. The Grantham/Meng team sold the largest number of limited- and select-service hotels in Phoenix for 2018 and are looking to provide the same service in other parts of the country.

James Murphy

“Sustained growth for Arizona and the metro area is something that I have always had confidence in, even through the last recession. I would bet on Greater Phoenix all day long and feel good about it.” - James Murphy

PRESIDENT AND CEO

he year 2019 will mark James Murphy’s 20th year at Willmeng. In 2006, Murphy, president and CEO purchased and assumed control of what has become one of the Valley’s most distinguished building contractors. “Willmeng’s goal is to support our clients at the highest level,” he says. “The main tenets of Willmeng are alive and well: supporting prelease transactions, maintaining the ability to competitively bid projects large and small, and fostering the altruistic service culture that we are known for and proud of. From Tom Jarvis to Cody Phelan, Keith Sabia and Keyvan Ghahreman to the one and only Mike Mongelli, we have a team that I’m very proud of. Internally, we always say that we work very hard, but due to the quality of our team and clients, what we do does not feel like work,” says Murphy. 76

Starting Points

The company continues to be among the busiest construction entities in Greater Phoenix and one of the very few that remain locally owned and operated. “We had so many great projects that our clients afforded us in 2018, across multiple market sectors,” he says. “The true diversity of our projects is also exciting. From industrial projects from Mesa to Goodyear, a fire station in Gilbert, to a new campus for Basis Charter Schools in San Antonio, roughly 1 million SF of new development ongoing at Allred’s Park Place, to multiple projects for Banner Health, our team has much to be thankful for.”

Left to right: Keyvan Ghahreman, Keith Sabia, Isam Ghandour, James Murphy, Mike Mongelli, Cody Phelan, Thomas Jarvis

Background

Founded in 1977 by Jack Willmeng, the firm established itself as a local building contractor that could be relied upon to deliver, and by the late 90s, Willmeng was pondering retirement and looking for a potential successor. “I wanted to join the company because of Jack’s reputation in the industry,” says Murphy. Beginning as a project manager, Murphy ascended to vice president in 2001. “To be able to take the helm from Jack and continue his legacy of excellence is an honor,” he says. Murphy discovered that commercial real estate construction was his niche during his days at Arizona State University, where he earned a bachelor’s degree in Construction Management and a master’s degree from the School of Engineering and Applied Sciences. “The industry has a terrific energy with talented professionals of all kinds. From the architects, to the engineers, brokers and developers … it truly is a dynamic industry,” he says.

Willmeng

A view across the Valley reveals Willmeng’s extensive activity with companies from mid-size to Fortune 1000. “Our backlog going into 2019 and forecast for the year overall is very strong,” he says. “Willmeng, like most established general contractors and subcontractors in the Valley, is forecasting a record or near-record year in 2019.” Working in multiple sectors including office, retail, industrial, hospitality and health care, Willmeng takes on jobs for shell construction, tenant improvement and adaptive reuse. “In terms of volume, we still see new construction in volume over adaptive reuse,” he says. “Willmeng continues to focus on working for the best-of-the-best in each market sector, and is committed to maintaining a seat at the table for all projects big and small.”

Projects and Clients

The roster of clients and projects on Willmeng’s agenda is most impressive: Banner Health, Trammel Crow, Wentworth, LBA, Phoenix Rising Investments, Douglas Allred Company and EastGroup Properties to name a few. “We have been very fortunate to have been supported by these clients and many more for years,” he says. “It is interesting to look at our current projects and see them very evenly dispersed across the Valley.”

Markets

Wherever he looks in Maricopa County, Murphy sees the ongoing vibrancy of the metro. “Tempe is Tempe … They are not making any more of it, and its performance has been impressive even through the recession,” he says. “The microeconomics in Chandler, Gilbert and Scottsdale all speak for themselves. I truly believe that in the coming years, Mesa will experience a similar metamorphosis in true downtown redevelopment, as has Phoenix.”

Economics

Assessing the economics of CRE construction, Murphy notes several trends, which will affect pace, pricing and volume as the cycle reaches its peak. “The first is availability of labor,” he says. “Our relationships with quality subcontractors have sheltered us from the labor shortage.” The supply and demand constraints dictate that labor supply will push input prices higher for builders and developers. On the cost front, Murphy also sees materials as compressing margins. “There is definitely inflation in construction commodities across the spectrum,” he says. “Crude oil has remained steady for now, but wood and all things metal have been on a steady rise. The overall impact could be significant as costs continue to increase.”

Technology

Technology plays a transformative role in nearly every industry, and CRE is no exception. “We are seeing a wave of innovation,” he says. “From robots as an asset to the masonry crew for a current project that we have underway in Gilbert for Moog/Wentworth Properties, weekly drone flights to document progress on projects, and the emergence of virtual reality, you can see technology in our industry more and more.”

2019

The coming year offers Willmeng a flurry of construction activity, as both organic Valley companies expand their operations, and out-of-state corporations enter Greater Phoenix, because of its compelling fundamentals. “Sustained growth for Arizona and the metro area is something that I have always had confidence in, even through the last recession,” he says. “I would bet on Greater Phoenix all day long and feel good about it.” Murphy’s focus in 2019 will remain on a diverse mix of projects and continuing to set the firm apart from its competitors through their ability to support actual deals. “I view the lease transactions as the heartbeat of the industry and ultimately what makes our client’s successful,” he says. “As a result, we are hyper-focused on continuing to hone our budgeting skills in the pre-Letter of Intent (LOI) stage of a transaction to be a valued partner in getting ink on deals large or small — that is our true business model and single largest area of focus.”

Personal

When not on a project site, speaking at an industry event, or supporting a deal, Murphy can be found spending time with his family and friends in the outdoors. “I love the outdoors. This could mean bow hunting, the baseball field, a round of golf, or a hike through the Superstition Mountains,” he says. “My role in the CRE industry does compete for my time, but many of our clients and industry allies fall into the friends and family category. As a result, balance is never there, but life is great.”

Future

Jack Willmeng surely made the correct choice when he set the company’s future in the hands of James Murphy. “The greater Phoenix Metro is an incredible market, and one that our team is thrilled to have the opportunity to work in” he says. “I feel that our market has been truly shaped by a very powerful CRE community, Arizona State University, which continues to produce a high quality labor force for multiple market sectors including high tech, defense, engineering and the biosciences. Chris Camacho and GPEC continue to lead the nation in business attraction efforts. The future is a reflection of the past- the founders of our state who had the vision to create affordable power from the Roosevelt Dam, hydroelectric, and Palo Verde, nuclear. Given the infrastructure that is in place with our freeway loops, our cost per kilowatt hour, and all that is going on in California … The future is very bright. Willmeng is proud to call the Valley of the Sun home,” says Murphy.

Laura Amada-Bagdadi President, Chicago Title Agency 80

Title Work Amada’s journey into the world of title and escrow was not an immediate one. “I sold real estate for a few years,” she says. “One day, I reached out to the escrow officer who handled my transactions and asked her what she thought about me working for a title company. She thought it was a great idea and put me on a fasttrack program for management at Transamerica Title.” In that role, Amada learned all aspects of the business in multiple departments. “I had incredible mentors who guided me through those early years,” she says. In 2004, she joined Chicago Title initially as a sales manager before moving into a position as escrow operations manager before assuming her current role in 2009. “From the moment I started, I loved the business and the industry,” she says.

Attitude

n life, the winners and achievers have something that differentiates them from the competition. In some cases, it is desire; for others, a tireless work ethic. For Laura Amada, that X-Factor is attitude. “Every day, I get up with gratitude, grateful for everything in my life,” she says. “Everything begins with a thought, and that is one thing we have control over. My feeling is, why not make it a positive thought, a happy thought? Why not believe all things are possible? Our tomorrows are created by what we dream today.”

Starting Points As president/county manager at Chicago Title Agency, Amada oversees the company’s entire operations for Maricopa County. “Bob Fortney, president of Chicago Title, retired and endorsed me as his successor,” she says. “The company approved, and I became the first female president/county manager in Phoenix for the firm.”

Background Working in commercial real estate in the title sector is not at all where Amada saw herself early in her career. “My goal was to get a Ph.D. in Psychology with the idyllic notion of saving the world,” she says. After graduation from California University of Pennsylvania, Amada took a position at Valley National Bank. “I was fortunate enough to get a job working for an innovative bank, which had a counseling program for the employees and their immediate families,” she says. “I quickly learned that counseling was not an area where I could make the kind of impact I wanted to.”

Throughout her career, Amada has always believed in the power of positive thought. “The more successful you become, opportunities begin to present themselves,” she says. “I always thought big and it never occurred to me that there were any limitations to what I wanted to do or become.” Her dynamic attitude also is the foundation for her leadership style. “For all my years of managing people, it’s so clear to me that I’m a leader who leads with my heart,” she says. “I think it’s so important to mentor others and clearly lead by example.” Amada focuses on empowering those around her to succeed, and she is a champion for promoting more females in the CRE space. “We as women need to be the first to advocate for other women and continue to lay the tracks of possibilities and support for those women following in our steps,” she says.

Personal Amada has found a wonderful work-life balance, which allows her to enjoy success. “I love traveling, spending time with my husband walking on the beach and watching my son grow into a beautiful young man, whom I’m so proud of and deeply admire,” she says.

Conclusion Once again demonstrating that attitude determines altitude, Amada sees a great 2019 for Chicago Title. “I’m very optimistic,” she says. “With Maricopa County being the fastest-growing county in the country, I’m prepping Chicago Title for another banner year.” 81

Ted Bodnar Executive Vice President Wells Fargo CRE

Year Ahead

ells Fargo’s industry rankings tell the story of the country’s third largest financial institution: #1 CRE lender in the U.S. since 2009; #1 Primary and Master Servicer of CRE loans by volume in the U.S.; and #1 market share by CRE outstandings.

Starting Points

A financial institution with a long history of pioneering innovative approaches to lending, finance and banking - the CRE division at Wells Fargo follows this model. “In addition to our conventional real estate banking group, Wells Fargo has active CRE groups in commercial-mortgage-backed finance, multifamily capital (originating loans for Fannie and Freddie), and real estate specialty groups for REITs, hospitality, homebuilders, seniors housing, community lending and others,” says Ted Bodnar, executive vice president of Wells Fargo Commercial Real Estate. “We operate these lines of business under one umbrella in order to best leverage the platform for our customers, which differentiates us from many CRE lenders.” 82

2018 Recap

WELLS FARGO

A strong national and Valley economy with businesses looking to expand their operational footprints pushed Wells Fargo to considerable market success. “2018 was another active year for our CRE team nationwide as well as in the Phoenix market. We had a strong year in all aspects of CRE finance,” he says. “In the local market, I think the trends showed continued solid demand for CRE, as well as active tenant demand for space and investor demand for projects.” /// As compared to competing metros such as Dallas, Austin, Denver and others, the Valley market boasts an impressive resume with a power-charged business climate. “We continue to have solid job growth, with approximately 75,000 new jobs over the last 12 months,” he says. “Development has been steady, but demand has remained equally steady - readily absorbing new space and keeping the market in a balanced position. Office, industrial and multifamily remain the most robust asset classes.”

The Phoenix market remains strong when compared to other markets around the country. We continue to have solid job growth, with approximately 75K new jobs over the last 12 months. This continues to provide solid demand for both multifamily and residential development. We experienced some of the best industrial and office absorption in the last decade, which has brought vacancy rates down to the single digits for industrial and to the low teens for office. Development has been steady, but demand has remained equally steady, readily absorbing new space and keeping the market in a balanced position. In the local market, trends showed continued solid demand for commercial real estate. There continued to be active tenant demand for space, and there continued to be active investor demand for projects.” - Ted Bodnar

2019

An elongated CRE cycle poses the possibility for a potential slowdown in 2019, yet Bodnar remains optimistic. “We do expect there to be some moderation of growth in jobs in 2019 given the low unemployment in the area and the nation,” he says. “Additionally, we expect to see some cap rate spread given the increase in 10-Year Treasuries. However, this may not have any impact on sales/square foot or dollars/unit, as rents have increased to offset much of that growth.” /// A dynamic pipeline for construction and deliveries should spur the ongoing expansion of the Valley’s CRE profile. “I am looking forward to seeing some exciting new office projects breaking ground in Tempe, the Southeast Valley and Scottsdale, as well as several new projects in Downtown,” he says. “These projects continue to showcase Phoenix as a great place to live and work.”

Next Steps

As Bodnar begins Year 32 at Wells Fargo, he looks forward to expanding the company’s presence in the region. “There is no other financial institution in the market that can provide the breadth of products and service that we can, and no other group that has the market and financial experience as our team,” he says.

t is quite conceivable that the term “jack-ofall-trades” has its origin in the life and career of Darin Sender, founder of the eponymous Sender Associates, a leader in Arizona zoning law. “I had aspirations to become a doctor, but studied physics, graduated with an architecture degree and ultimately earned my Juris Doctor,” says Sender. “And because my dad owned a development firm and my mom was an interior designer, I knew I wanted to be involved in commercial real estate.”

STARTING POINTS Founded in 2000, Sender Associates has over the last five years entitled over 2,100 residential units (owner-occupied and apartments), 355,000 square feet of commercial and 640 hotel keys, totaling over 4,100,000 square feet of development. “I always wanted to own my own business. I come from an entrepreneurial family,” says Sender. “Now that I do, I am so lucky to have a group of amazing clients including Opus Group, Embrey, Fox Restaurant Concepts, Forum Real Estate Group and more.”

BACKGROUND Originally from Chicago, Sender took on the do-itall persona at an early age. “At 9, I was on site at the construction projects my father was developing,” she says. “I have been around construction projects all my life; you name it I have done it from concrete work to framing and even installing sewer pipes.” Following her time at Arizona State University, Sender returned to the Windy City and obtained her law degree from DePaul University. “My dad convinced me to attend, and when I realized that an attorney could work in any field, I was sold on the idea,” she says. 84

SENDER ASSOCIATES The idea for Sender Associates was in many ways born out of an early experience working on a case for her father. “Prior to attending law school, my dad handed me a rezoning project and said go figure it out,” she says. “I had no idea what I was doing, but knew then that this field was how I was going to use my degree. The work was so interesting.” /// The firm’s operation includes two other distinguished professionals: attorney Jennifer Boblick and Land Use Planner Tracy Cook. “Jen is truly amazing, as is Tracy, who helped me launch the business,” says Sender. /// Sender’s zoning and entitlement workload stems from her many years sitting on city boards and working closely with municipal officials. “I was on the Tempe Board of Adjustment, as well as the Planning Commission, and now sit on Ahwatukee’s Planning Board,” Sender says. “Much of what we do involves engaging with city leaders and staff.” © Copyright 2019 by MP Media, LLC

“It is amazing to collaborate on such iconic projects like The Union by Opus, Tempe’s ﬁrst downtown Whole Foods, the Westin Tempe and Pier 202.” - DARIN SENDER PRESIDENT & FOUNDER, SENDER ASSOCIATES

PURSUITS

MOVING FORWARD

Always one to be involved in multiple opportunities, Sender also teaches at ASU’s W.P. Carey School of Business as a faculty associate. “I started instructing in 2003 with a desire to teach the practical side of zoning to architecture students,” says Sender. “I had never taught before, but absolutely love it. My class now is part of the institution’s Master of Real Estate Development program, and it is wonderful to see so many of my students working in the field.”

Sender has a plethora of assignments in the pipeline for 2019 and is excited about the prospects. “In the next few months, we have seven new projects beginning,” says Sender. “More than that, though, it is amazing to collaborate on such iconic projects like The Union by Opus, Tempe’s first downtown Whole Foods, the Westin Tempe and Pier 202. Working on extraordinary projects with inspiring clients is what it is all about.”

PERSONAL

OUTLOOK

A mother of two, Sender wants to pass on to her daughters the values and life lessons offered by her own parents. “My mom owned her own business as an interior designer, and both she and my father made sure my sister, brothers and I knew that we could accomplish anything we put our mind to,” says Sender. “I want my girls to have those same opportunities.”

The outlook for Sender Associates is indeed bright, and the founder is excited to grow the firm’s portfolio. “I love this work and am looking forward to building many more enduring relationships with clients,” says Sender.

We are making SBA loans with award winning service. Financing available for:

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03/21/2016

ISSUE DATE: REVISIONS: #

DATE

COMMENTS

The architectural works depicted herein are the sole property of Humphreys & Partners Urban Architecture, L.P. and may not be constructed or used without its express written permission. No permission to modify or reproduce any of the architectural works, including without limitation the construction of any building, is expressed or should be implied from delivery of preliminary drawings or unsealed construction drawings. Permission to construct the building depicted in sealed construction drawings is expressly conditioned on the full and timely payment of all fees otherwise due Humphreys & Partners Urban Architecture, L.P. and, in the absence of any written agreement to the contrary, is limited to a one-time use on the site indicated on these plans.

The Union Tempe by Opus Development Company THE FOUNDRY

234 W. UNIVERSITY DR TEMPE, ARIZONA. 85281

FORUM REAL ESTATE GROUP

The Local by Forum Real Estate Group

APPROVED 1/28/16

HUMPHREYS & PARTNERS

URBAN ARCHITECTURE, L.P.

bject to 2016 PAD ndment revisions)

The Flats at SanTan by Embrey Development Co.

CITY PLANNING SUBMITTAL- 05.06.2016

The Pier Springbrook Development Co.

D A L LA S •N E W Y O RK •C H ICA G O •N E W O R L EA N S •O R LA N D O• E DM O NT O N• S A N R A M ON N EW P O RT B E A C H •S C O T T SD A L E • T OR O N T O• C HE N N A I• DU B A I• H A NO I• M ON T E V ID EO

These drawings are for preliminary coordination only and not to be used for regulatory approval or construction.

SHEET CONTENTS:

PERSPECTIVE VIEW 1 SHEET NO.

A105 HPA 15267

CONCEPTUAL RENDERING: AERIAL VIEW LOOKING WEST

480.966.6735 senderlaw.com

Zoning Entitlements for Mixed-Use, Residential, Commercial and Industrial

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