Issue 4, 2017

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EXECUTIVE PUBLISHER Mandy Purcell mandy@mpmediaaz.com EDITOR-IN-CHIEF Sarah Stecko sarah@mpmediaaz.com BUSINESS DEVELOPMENT Isabel Menzel isabel@mpmediaaz.com GRAPHIC DESIGN Crown Press, Inc. art@crownpress.com EDITORIAL April Atwood Mindy Riesenberg Tim Randall Wayne Schutsky PHOTOGRAPHY Isabel Menzel Matthew Strauss Tony Elliot Carl Schultz

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“In the future, there will be no female leaders.

There will just be leaders.”

– SHERYL SANDBERG

Every year at Commercial Executive Magazine we focus on the theme of what it means to be a powerful and inspirational woman. This year we’ve profiled a lineup of some of Phoenix’s sharpest, savviest and toughest female business leaders. They are CEOs, philanthropists and entrepreneurs – and they’re calling the shots in the state’s commercial real estate industry. /// Speaking of leading females, Camila Bekat, Economic Director of Tucson, is administering incentives to attract new businesses and promote innovation in the city, so that the emerging leaders from the University of Arizona never have to stray far from home. /// We also give you the inside look at companies that are looking to exceed the current standards for environmental sustainability. Take Sunflare for example, a startup that challenged itself to overcome the shortcomings of solar energy – and succeeded! /// Lastly, on Aug. 21, we’ll experience a solar eclipse but we’re not just talking about the one in the sky. MODUS Development and Caliber, the Wealth Development Company, will break ground on their circular housing development in Scottsdale named after the moon’s phase: Eclipse luxury condos.

Mandy Purcell

Executive Publisher © Copyright 2017 by MP Media, LLC

This summer is red-hot and so is our cover of the 2017 Women in Power! Although women may still be in the minority for high-level executives in commercial real estate, they are more satisfied with their career progression than they were a decade ago, according to a benchmark study conducted by the CREW Network in 2016. /// A former “Women in Power” recipient of ours that recently earned a promotion illustrates this perfectly and she and her fellow female colleagues discuss their thoughts on where healthcare is heading in this issue to further follow the theme. /// And the “Broker Team of the Month” we’re featuring also happens to include a leading lady, whom the other male team members have nothing but respect and admiration for. In fact, this CBRE team can’t imagine their life now without her! /// Then, check out the other trailblazers who have led the way in our “Protégé Profiles” section, most notably, the great Frank Lloyd Wright and one of his Taliesin West apprentices, the renowned architect Vern Swaback, who is a legend in his own right today.

Sarah Stecko Editor-in-Chief

3

Women in

POWER

of Commercial Executive Magazine and our annual “Women in Power” issue – or should we say women empowered.

Naturally, because of the male-dominated nature of the commercial real estate industry, we feature more men on covers.

This has nothing to do with the top executive’s sex but rather their success. Fortunately more women than ever are making their mark in the business, generating inspiration with their stories of facing adversity and embracing change for everyone.

In the same way we highlight the current minority of up-and-comers or rising stars, we have dedicated this issue to another underdog...

4 © Copyright 2017 by MP Media, LLC

(BACK ROW, L to R)

Chris Mackay, Cheryl Lombard, Jackie Orcutt & Judi Butterworth (FRONT ROW, L to R):

Jamie Savage, Tammy Carr & Irene Clary Makeup Credit: Lana Khoury

5 © Copyright 2017 by MP Media, LLC

Women in

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ONE OF HER PROUDEST MOMENTS: Getting Galvanize [to come to the Warehouse District]. It took so many groups of people working together for 3-4 years to make this happen. We knew this incredible, nationally known company would impact our market and help us become that tech/software destination that we’re striving to be.

IF SHE WASN’T IN ECONOMIC DEVELOPMENT… I know it sounds bizarre but I always knew I would be in real estate. I thought I might be an elected official, but they are far too brave for me (laughs).

Another career goal of mine would have been being an interior designer or landscape architect because I love to challenge the status quo in the way things look.

FUTURE GOALS FOR GROWTH: I have a 10-year bucket list or strategic plan for Phoenix. I firmly believe that what gets measured gets done. I have every intention of seeing it through.

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2017 “Women in Power” recipient, Christine Mackay had been involved in the commercial real estate industry her whole career in some capacity, whether it was through property management, construction or on the brokerage side at Lee & Associates, serving as its research director for seven years to work with teams to bring businesses to the Valley.

She always caught herself wondering about the companies and the people afterwards and if they truly were satisfied with the piece of real estate they pitched to them, in terms of residential market and workforce. /// So, it came as no surprise to Mackay when she found herself in an economic development role for what is now deemed as a booming city in Arizona. /// Mackay’s interest in the career move was as simple as one day, while watching the “Chandler Channel” with her husband, a job description came across the screen and he nudged her to apply. Admittedly, at first she was not interested but considered that they had a young daughter and commuting over an hour and half to work each way was not ideal. Reluctantly, however, she did submit an application at the last minute. /// Four months later came that fateful phone call to schedule an interview and long story short – Mackay got her start at the City of Chandler as a research assistant.

CHANDLER What started as a research assistant role escalated as Mackay confidently moved up the ranks onto becoming an industrial office specialist, senior specialist and then finally director of the economic development department. /// “It all started because I was more interested in building a community than just building wealth. I found it fascinating that we were building a city,” she says. /// Anyone who has driven through Chandler recently or even just picked up a newspaper knows of the major national attention it has received for bringing on notable names including: Intel, Motorola, Orbital ATK, and Air Products and Chemicals, Inc. /// “Our strategy consisted of capitalizing on workforce that was already there in surrounding areas as well as on those leading tech giants to bring in more now,” Mackay says. /// But Mackay did not leave her expertise and skill set for Chandler only. Since 2014, she has been working to implement a similar strategy for Phoenix.

>

© Copyright 2017 by MP Media, LLC

Women in

>

“To be honest, I never thought I would leave Chandler. I take great pride in the fact that I was part of the team that built that city to what it is today,” she says. “It was an opportunity to diversify the scale of the projects I got to work on and to drive the fifth largest city in the country’s economic strategy, so it was too hard to refuse.”

POWER

PHOENIX

When Mackay received a phone call from the City of Phoenix to drive its economic development, she was more than flattered.“Getting the opportunity to work with Paul Blue (Deputy Director), whom I’ve known for a long time prior and have great respect for, was enticing. I’ve always said, ‘Paul does not think outside the box, he does not own a box.’” /// In an attempt to mirror that technology strategy she had in place from 1998-2014 in Chandler, Mackay initially became quite overwhelmed and realized that it was going to be a more complex animal. /// “I’m not embarrassed to admit, it was quite the undertaking. During months four through eight, I was in total panic mode,” she says. “The turning point when I finally took a breath happened one day while driving up by 7th Street in Deer Valley and I thought to myself, ‘This looks just like Chandler…

I’ve got this!’”

S O U T H M O U N TA I N T E C H N O L O G Y CORRIDOR Mayor Greg Stanton announced at the “State of the City Address” last month the creation of the “South Mountain Technology Corridor.” The council will be taking actions to protect and invest in it to turn it into that thriving tech hub. /// “Companies have voiced concerns that West Valley does not have that qualified workforce so I believe this will reshape that opinion for the better,” she says. An astonishing 39 percent of the educated employees that reside in the West Valley commute over an hour to work every day. /// When the City of Phoenix saw that there were buildings downtown with vacancy rates of above 30 percent, Mackay’s team diligently decided to re-strategize. Midtown was the first subsection to be affected by her magic touch as Mackay discovered that parking was the main concern for owners. So, Mackay’s team created the “Parking Cooperative” which essentially matched up buildings with lots full of additional parking. /// The other issue was that beautiful, new suburban spaces were coming online making it difficult to compete, but the team helped to make the buildings not be seen as obsolete by working with their owners to retrofit the buildings. /// Upon its success, the team went on take the same steps for Downtown and the Warehouse District and is now targeting Gateway.

C H AT T I N G W I T H C H R I S While she’s keeping her hands full with all the current initiatives and says it’s a 24/7 job, Mackay does find time to give back to the community, mostly on the workforce side. Working closely with Kimber Lanning at Local First Arizona, she is passionate about creating pathways for small local companies to grow. /// Mackay and her husband, who is a Registered Nurse, have discussed after they retire to travel to small, underdeveloped towns and volunteer both of their services to bring economic stability and healthcare to make a difference.

Number of

TECH CO M PA NI ES in Phoenix 7

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Women in

POWER S enior V ice P re sident , ORION I nvestme nt R eal E state

W

ith 37 years into a commercial real estate career that has seen her close over $650 million in transactions, it is easy to point to 2017 “Women in Power” recipient, Judi Butterworth as one of the most successful executives in the industry today. But what those numbers don’t show are the years of hard work, struggle and learning that propelled her to the heights she has reached today.

When the current ORION Investment Real Estate Senior Vice President entered the industry after time spent selling radio advertising and print, she enjoyed the freedom and opportunity it afforded her. “I first got into the business because I liked the challenge of every day being different and there was no cap on income,” Butterworth says. /// However, it was far from smooth sailing from the get-go. In an industry defined by the mentor/mentee relationships that help young brokers learn the ropes, Butterworth did not have that one experienced person to show her the ins and outs. As one of the few women Advice to the Next Generation in the industry, finding another sales person to mentor her was a challenge.

Those early years were just the beginning. Since then, /// “I didn’t make money for the first Butterworth has built a career that has seen her spend five years,” she admits. /// Fortunately, several years at CBRE and DeRito Partners, a stop Butterworth found her groove. Her first at Velocity Retail and, now, ORION. /// During that big deal involved a shopping center time, she has risen to the top of the retail industry listing she secured. Even though she was in a career that has included shopping center sales, still a bit inexperienced and a coworker tenant and owner representation and leasing retail told her the property would never sell, redevelopment retail projects. /// While Butterworth is she put in the work and managed to sell quick to stress that she has always used any struggles it for a healthy six-figure commission. in her career as learning opportunities, she does not /// “I got the buyer and seller together suggest young women today take the same route she in the conference room, and we spent did, because everyone should have leadership invested 45 minutes talking about [Arizona State in their success. /// “If you don’t have someone who University] sports and 15 minutes on the wants you to be successful training you, don’t go deal,” Butterworth says. [to that company],” she advises. /// Butterworth is putting her money where her mouth is by lending her experience and guidance to team member and ORION Associate, Lacey Eyman.

A Rare Résumé

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Recently, Butterworth has been a part of the movement to adaptively reuse defunct big box spaces for new uses like putting a Planet Fitness in an old Circuit City or placing a PGA Tour Superstore in an empty former Kmart. /// That varied career has made her an expert in the retail industry with unmatchable market knowledge. Because she has worked on so many different types of deals – and represented every side – she brings a unique perspective to every deal. /// She also spent six years on the Arizona program committee for International Council of Shopping Centers (ICSC) and later spent three years as the State Director for Arizona, the only woman ever to hold the post. © Copyright 2017 by MP Media, LLC

Women in

POWER

A New World Despite all that success, Butterworth was not insulated from the economic slowdowns and recessions that affected the whole industry. In fact, during the early 1990s, she left brokerage to work for a consulting company. During that time, she was able to learn about corporate politics and has used what she learned to be a better broker. /// Later coming back to the industry, she found a new world and it took her several months to become acclimated to a landscape now dominated by power centers and big boxes. /// But she did adapt and is now an extremely decorated member of the CRE community with accolades that include being named NAIOP-Arizona “Broker of the Year” and multiple Co-Star Power Broker designations.

Passions It’s easy to be distracted by Butterworth’s long list of professional achievements, but the truth is she is equally engaged off the clock when she gives back to multiple charities and spends time with her husband Ed Phillips and son Andrew. /// One of Butterworth’s driving passions is promoting women in business and real estate and helping them succeed. She is one of the trail blazers for professional women in the Valley and is guiding the next generation. Over the years, she has met with literally hundreds of young women and men who are considering entering the industry. /// Her passions are evident most in her extensive list of accolades, which includes being an Athena Finalist in the Private Sector Category. She is a founding member of Executive Business & Professional Women’s Club and also Arizona Women in Commercial Real Estate. She also started Commercial One, an invitation-only group of women professionals who support each other both professionally and personally. She began volunteering for Arizona Women’s Education and Employment in the mid-80s and created one of their signature events, Cocktails & Clothes, which continues today. /// Butterworth is most passionate about helping those struggling with addiction via Phoenix Rescue Mission’s Changing Life Center. Currently, she is visiting the Maricopa County Jail weekly to work with women inmates who will be discharged soon.

She is finding that most of the women are in the jail system due to addiction issues. Leaving the jail to go home makes her an incredibly grateful person.

“My life today is joyful; it’s wonderful,” she says.

So what keeps Butterworth motivated to come to the office after so many years of success?

Simply, she loves her job. /// “I’m a deal junkie,” Butterworth says. “The money is great, but I want to get a buyer and seller together, close the deal, and make sure that everyone is happy.” /// And that’s what made ORION such a good fit for the next step in her career when she met with President Ari Spiro and made the move to the company last year. She was also very interested pursuing more investment sales. /// If it seems like Butterworth is moving at 100 mph that is because she is. /// In addition to her work and charitable concerns, she has an outline for a book detailing how she was able to turn being “unique” in an industry into a very successful career. For instance, instead of playing golf, she got involved in politics and being on several city commissions. /// Now that is a story worth telling.

© Copyright 2017 by MP Media, LLC

Women in

POWER

a g v e a S G i r a m y a J

Jami Savage-Gray’s mantra is "You have to learn the rules of the game and then you have to play better than anyone else."

– ALBERT EINSTEIN Her fearless determination over the past nearly 10 years has earned her the position of First Vice President with CBRE’s Phoenix office, where she specializes in retail tenant representation and has repeatedly been named to the firm’s list of top producing brokers.

“Something I realized early on is that commercial real estate is a performance-based industry, and you could achieve whatever you wanted whether you were male or female,” Savage-Gray says.

“I rarely felt discriminated against for being female. If anything, getting into the business at only 22, people questioned how young I was. But I didn’t let that stop me either.”

“Jami has a stellar understanding of the market, trends and client needs.

Her business acumen, communication skills and commitment to success make her an excellent partner.”

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– MATT BRACCIA, U-Haul © Copyright 2017 by MP Media, LLC

Women in

POWER

“I’ve enjoyed watching Jami grow professionally into a very driven, successful broker. She’s passionate about what she does.

I’m proud to call her a great friend and look forward to watching her continue to accomplish whatever she sets her mind to.”

– CHUCK GIBSON, SRS Real Estate Partners

S

avage-Gray’s interest in commercial real estate didn’t take shape until her last year at the University of Arizona and realized a career in finance didn’t excite her.

She went out on a limb and accepted an internship with a local brokerage and began working toward obtaining her real estate license. In January 2008, Savage-Gray found her niche in retail at De Rito Partners. /// Since then, Savage-Gray spent several years at SRS Real Estate Partners before being recruited to CBRE as part of the firm’s efforts to expand its retail expertise.

From mom and pop boutique owners to quick service restaurant operators, Savage-Gray has helped countless entrepreneurs find their space in the Phoenix market. /// “Some of my clients are first-time operators so I feel it’s really crucial to make sure that first store hits it out of the park so they can eventually pursue their dreams of opening more locations,” says Savage-Gray. “There’s nothing more rewarding than watching business owners open the doors to their businesses after helping them find the perfect location.” /// Additionally, Jami works with a variety of corporate clients across the U.S. and Canada.

Early in her career, she fostered a relationship with a

Phoenix-headquartered moving equipment and storage rental giant. Now, she’s the lead for that company’s real estate strategy and transaction management needs for U.S. and Canada locations. She’s also helped other notable operators, including Conn’s, Shake Shack, Living Spaces and Arizona General Hospital penetrate the Arizona market. /// Today, Savage-Gray is one of 9 female brokers at CBRE’s Phoenix office, where she and her business partner, Todd Folger, are equal partners.

Savage-Gray says she feels fortunate to have a business partner who never once called into question her abilities based on her age. /// In fact, she says, whenever Todd is asked about why their partnership is successful, he always quotes Al Pacino from The Recruit, when he says, “You gotta give me one thing: I’m a scary judge of talent.” /// “Maybe in the past there were only one or two women in the room, but that’s just not the case anymore – at least not at CBRE. CBRE has made a strong effort to create a diversified workforce inclusive of women,” Savage-Gray says. “I’ve always been treated with the utmost respect from my male colleagues and clients, some of which have become wonderful mentors to me.”

MENTORS

AFTER HOURS

Throughout her career, Savage-Gray has been inspired by several local retail trailblazers starting in her early years with Judi Butterworth and later on finding strong mentorship from Chuck Gibson and Ed Beeh, who introduced her to Folger.

INSIDE SCOOP “Bigger is better” is no longer the mindset for many retail tenants.

Instead, SavageGray says some retailers are more focused on creative spaces that offer consumers a more personalized and intimate shopping experiences.

Outside of work, Savage-Gray is closely involved with several charitable organizations. She is currently co-chairing Phoenix Children’s Hospital’s Beach Ball, the hospital’s signature event that draws nearly 1,000 attendees annually in an effort to raise money for hospital programs. The spring 2018 event will mark its 25th year running and funds raised will help to expand the Neonatal Intensive Care Unit (NICU) at the hospital.

In her free time, her and her husband spend their time traveling and skiing.

ADVICE “Keep your head down, work hard and surround yourself with talented people. You're the only one that can dictate your success.”

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© Copyright 2017 by MP Media, LLC

Women in

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"You have to find the fire within you and make it your own ."

F

ull circle. That may be the best way to describe Jackie Orcutt’s commercial real estate career trajectory. A full decade since she first started with CBRE, Orcutt returned to the firm in 2016 as a First Vice President with its Industrial and Logistics Division after several years with another brokerage. “When I returned to the firm, I came back as a senior broker with my own book of business,” she says. “I was drawn to CBRE’s platform, global services and networking capabilities that I had not fully appreciated as an associate.” /// Orcutt specializes in institutional landlord and buyer representation, industrial and back office leasing and sales. Partnering with John Grady, who handles tenant representation, Orcutt continues to grow her client portfolio and add to her impressive five-year transaction tally totaling more than 11 million square feet and valued at over $510 million.

B AC KG R O U N D

“10-Chandler demands the

SUCCESSES

attention of a skilled brokerage team, and the Orcutt Grady team was the perfect match for this task.”

– AMR CERAN, Senior Director, EverWest Real Estate Partners

After graduating cum laude from Arizona State University’s Barrett Honors College with a Bachelor of Science in Business Economics and Bachelor of Arts in Psychology, Orcutt immediately turned to the CRE sector. /// “It was an easy decision to get into commercial real estate having grown up around family members and friends in the industry,” Orcutt says. “They advised me to join a strong and established firm.” /// Orcutt interviewed with several teams in the industrial and retail sectors before accepting a position as marketing coordinator with a seasoned industrial team at CBRE. /// She continues, “For me, it was less about the product and more about the culture and the opportunities I’d have to advance my career.”

E A R LY Y E A R S Early in her career at CBRE, Orcutt learned under the tutelage of long-time industry professionals Jerry McCormick and John Werstler. “They took me under their wings and nurtured my passion for industrial real estate,” she says. /// In her position, she made numerous connections and developed a great foundation. Those connections opened the door to an opportunity with a more institutional focus. In 2011, she joined Cushman & Wakefield as a junior associate alongside experts Bo Mills & Mark Detmer. /// The countless 14-hour days kept the rising star on her toes, and prepared her for a big decision that was to come in 2013. Mills and Detmer were leaving the firm for competitor JLL to pursue the industrial capital markets space, so Orcutt decided it was the ideal time to enter the leasing space.

Her decision to take the path less traveled quickly proved to be the right call, as Cushman & Wakefield recognized Orcutt with their National “Rising Star” award that very year. The wins continued with the industrial guru forming a collaboration with Grady, and the duo gaining market share across the Valley. /// One project Orcutt is particularly proud of is 10 Chandler, a ±552,000-SF Class A industrial/flex office park comprised of nine buildings in Chandler, Ariz. Orcutt and her team inked seven transactions and leased 25 percent of the property within 10 months of taking over the lease in February 2016.

12 © Copyright 2017 by MP Media, LLC

Women in

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CBRE Coming back full circle, Orcutt was recently retained to market and sell 10 Chandler. “This is a capital market sale and our team won the listing,” she says. /// As Orcutt’s career has evolved, so has CBRE’s position in the marketplace. “This organization is a decade ahead of its competitors,” she says.

“Technology, communications and management are providing us enormous opportunities in the marketplace.” /// This competitive edge, along with Orcutt’s wealth of industry expertise, has allowed her to work and continue to work with seven of the eight largest and most prominent owners of institutional industrial product in Phoenix.

M E N T O R S & I N V O LV E M E N T It is through Orcutt’s network of professional associations where she has not only received life lessons, but is now offering them. “I am 100 percent willing to take a coffee or lunch to help someone starting out,” she says. “It is important to have a network of support.” /// Much of that personal and professional interaction is from several organizations in which she participates: SIOR, active Member; President of AZCrew, and one of only four women on the national CREW nominating committee; ULI’s Partnership Forum; NAIOP; and Commercial One. One of our 2017 “Women in Power” recipients, Judi Butterworth, runs Commercial One as a tight-knit group for accomplished women in varying fields to all gain unique perspectives and contacts. /// Her work and time paid to these organizations is due in no small part to the commitment toward women advancing in their chosen careers. “10 years ago, I definitely had to work harder to prove myself in the business as a woman,” she says. “There is less gender bias now, but it is still challenging.”

WISDOM

PERSONAL SIDE

Orcutt’s work ethic certainly came at some level from her mother, Cathy Teeter, Director, Regional Sales Management, CBRE’s Southwest Region.

“She has always been an inspiration,” Orcutt says.

“She set the tone. I learned from her at an early age that you can do it all, but you have to have a plan in place, and take the time to figure it out.” /// That dedication has carried over to her trade where she defines herself by the effort and passion she brings to the table. “You have to find the fire within you and make it your own,” she says. /// To those coming into the industry, the advice is the same. “You have to buckle down and do the work – nothing will be handed to you,” she says. “Every day I go up against 200 industrial brokers all competing for the same business, so I need to know my information.”

A mother of three children under five, Orcutt continues to hone the work/life balance equation.

“It is important for me to stay mentally and physically fit,” she says. “My husband and I have a great system in place, and we are both supportive of one another’s busy schedules.” /// When she’s not working or taking much needed time off for a relaxing getaway, Orcutt continues to develop her knowledge of the capital markets side of the business. “It’s imperative to know the perspectives of your clients; many of whom are juggling management and acquisition roles.” She noted, “As commercial real estate companies merge and grow, brokers need to be able to provide additional resources and perspectives to stay relevant.” /// In one decade, Orcutt has risen to be a prominent face of the Greater Phoenix industrial CRE landscape. What will the next decade hold?

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Women in

POWER

We have such a broad membership. Our mission is about representing all of them and figuring out responsible development for [the entire community].”

T

he commercial real estate and development community can have a reputation as a bit of a “boys club,” yet when Valley Partnership sought out new leadership to boost the organization’s advocacy, it found the best “man” for the job to be a woman: Cheryl Lombard.

Lombard came onboard Valley Partnership around two years ago as President and CEO, and already the early returns are overwhelmingly positive. The former attorney brought a wealth of experience to the job from her years as a legislative aid, public affairs professional, and nonprofit advocate.

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The politics fanatic previously worked for Congressman Howard McKeon of California and Congressman Cliff Stearns of Florida. Furthermore, Lombard has also worked for a political law firm and as Director of Public Affairs for Davies Communications. /// While that resume speaks volumes for itself, she will admit there was a bit of a learning curve when she first came on the job as she learned more about the synergy that exists between the developers and the community of businesses that supports them. /// Her previous positions gave Lombard extensive experience working on the on the entitlements and legal side of development, but her role at Valley Partnership has given her the opportunity to learn more about the financial side. /// “We have such a broad membership,” she says. “Our mission is about representing all of them and figuring out responsible development for [the entire community].” /// If Valley Partnership’s successes in 2016 and early 2017 are any indication, Lombard has learned quickly and well. © Copyright 2017 by MP Media, LLC

Women in

PLANNING

for

SUCCESS

Since joining the team, Lombard has focused on implementing the organization’s three-year strategic plan that includes Valley Partnership’s three-legged stool of advocacy, networking and philanthropy. She has also managed the organization’s June 1 move to a new office on North Tatum Boulevard in Phoenix. /// On the advocacy front, Lombard has focused on a range of issues including the Government Property Lease Excise Tax (GPLET), community facilities district legislation, and budget issues dealing with university bonding. /// On that note of responsible development, Lombard is also working on issues including education funding, tax policies and water issues as a member of the Governor’s Water Augmentation Council. /// Networking: Those successful projects would not have been possible without Lombard’s unmatched rolodex. The organization’s tenacious focus on networking has given it the contacts and resources necessary. /// “It’s not the volume – it’s the impact,” says Lombard in reference to the organization’s events. /// The organization has maximized that impact by attracting top-notch speakers to its breakfast series. One of Lombard’s most memorable early successes is when the organization secured Sens. Jeff Flake, Jon Kyl and John McCain as speakers in back-to-back weeks.

WHAT SETS VALLEY PARTNERSHIP APART? Advocacy is obviously a major part of Valley Partnership’s mission, but the organization is also focused – under Lombard’s guidance – on finding its own niche within the advocacy community. /// What sets Valley Partnership apart is its focus on working with cities to help them reach their development goals. For instance, Valley Partnership recently worked with Goodyear, SRP and other participants to deal with water issues. Lombard is also working to help develop a unified development vision amongst cities in the Valley. /// “From a developer’s point of view, they need that consistency,” Lombard says. /// That consistency will result in responsible development well into the future. That is why Valley Partnership is focused on transportation issues related to Interstate-11 and State Routes 30 and 32 that will affect development in the years to come.

COMMUNITY PROJECTS While Lombard has created serious change within Valley Partnership, she also recognizes that if it is not broken, don’t fix it. That is true when it comes to the signature charitable effort, the Community Project. /// “What amazed me was the heart of the industry,” she says. “The amount of dollars and time industry put into

POWER

[the 2016 Community Project] was amazing.” /// This year will be extra special because it is its 30th annual project. The organization has also implemented some minor tweaks to the program, such as making a year-long commitment to the nonprofit selected as the recipient of the project, rather than just a handful of months.

It was announced at the monthly breakfast series on June 16 that The Society of St. Vincent de Paul Phoenix has been voted as this year’s Community Project to take place on November 4.

CHERYL’S COMMUNITY INVOLVEMENT Lombard also takes community service seriously in her own life. Despite her hectic schedule, she has volunteered with New Pathways for Youth (a past Community Project finalist) to mentor a local high school student. /// Lombard made a year-long commitment and went through extensive training to participate. She now speaks and meets with her mentee at least once a week and attends monthly workshops. The goal of the mentorship is to identify the student’s education goals and help them achieve them. /// “[Mentoring is] something I’ve wanted to do my entire life,” Lombard says. In fact, she points to volunteering as something that provides her some relaxation from her day job. /// When she’s not mentoring, Lombard focuses on her other form of relaxation – spending time with her dogs. She recently adopted a Labradoodle rescue that is keeping her plenty busy in her downtime. /// Pathways for Youth could not have found a better mentor for that student, who will undoubtedly learn what it means to be a “Woman in Power.” Everywhere Lombard goes – from Congress to Valley Partnership – she exemplifies what it means to be a hardworking, successful professional affecting real change in the community.

15 © Copyright 2017 by MP Media, LLC

Women in

POWER

F

rom what began as a part-time job in order to pay for law school, eventually turned in to her own land development and acquisition company: Catclar Investments. The name was derived from her maiden name, Catsibris, which was shortened to “Cat” plus her married name, Clary, to “Clar.” The company’s offerings include urban luxury townhomes and enviable commercial developments in the East Valley, Phoenix Metro and Tempe. Its radiant projects in Arizona include SOHO Scottsdale, Rosedale Residences, and 421 West 6th Street, located in heart of Tempe.

The 24-urban luxury townhomes in Tempe are within walking distance to The Historic Mill Avenue District. The urban townhomes enjoy access to Arizona State University facilities, the light rail, and of course, plenty of shopping and dining within walking distance. /// This latest project embodies perfectly the environmentally friendly mission of Catclar in having ENERGY STAR® energy-efficient appliances, low-e windows, and superior insulation for both efficiency and privacy. /// SOHO Scottsdale is a cutting-edge live/ work community that sets the bar for innovation, sustainability and outof-the-box thinking. /// Although Catclar’s main focus is land acquisition, planning, and development of residential and commercial projects – now, a retirement community is in the works. What really sets Catclar apart from the rest is its heart and desire to help the community in more ways than one.

16

“Irene is an impressive & accomplished businesswoman whose real estate development projects have improved not only our Scottsdale community but also other Valley cities.

On a personal level, she rises to the top of the list of people I admire for her caring & positive demeanor as well as her overall expertise in her field.”

– SUZANNE KLAPP, Scottsdale Vice Mayor © Copyright 2017 by MP Media, LLC

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Women in

POWER BAC KG RO U N D Upon graduating from the University of Toronto with a bachelor’s degree in political science and initially wanting to practice law, Clary found herself enjoying a summer job assisting a developer instead. /// “I truly believe that it was fate. I started working on retail shopping centers along with master-planned communities for a prominent developer and just kept going,” she says. “I enjoy the challenges as well as the rewards that this industry brings.” /// Clary recalls her first project was working on a five-star hotel in the outskirts of Toronto.

She was asked to look at the floor plans that were designed by the architect and comment on them. /// “They seemed to like my vision and recommendations,” she says. /// And when Clary moved to Arizona in 2000, she devoted her efforts to introducing new concepts that are different from an architectural standpoint and that add to the character of the neighborhoods that they are located in. /// The 25+ year industry veteran founded Catclar in 2003 and made her mark in Arizona with luxury townhomes and lofts that personify a very distinct look with practical floor plans and functionality. Its signature strategy is to tailor the projects to those who are seeking a lock and leave community with low maintenance and energy star efficiency. /// “I am proud of all my projects and I strive to build sustainable communities that are well built and will withstand the test of time.”

PA SS I O N P ROJ ECTS Sure, Clary’s focus on enhancing communities is high on her list, but what is equally important, if not more, is the time spent with her family. /// “I believe in balance. I believe in giving back and teaching my children to be grateful, recognize the importance of charity, and learn how to help make the world a better place,” she says. /// And when Commercial Executive Magazine Publisher, Mandy Purcell approached Clary to be her Co-Chair for this year’s Teen Lifeline “Connections of Hope” fundraising event, she couldn’t think of a better cause to help others, especially youth, overcome internal obstacles. /// “This is truly very important to me as I have teenagers and know how critical this stage [in their life] is. The opportunity to help this great cause is truly a gift from God,” Clary says.

The Clary Family

FUTURE Coming up next, Catclar Investments is embarking on a new field: senior living communities. Fatefully, it also happens to be a sector she had been involved in at the start of her career. /// “We have formed a great team of experts in both the development industry and the senior living field. We want to build communities that are cutting-edge, innovative and, most importantly ones that take care of our seniors,” Clary says. /// It’s no coincidence this “Woman in Power” is going back to her roots in this aspect, and her success will surely not come as a surprise to anyone in the CRE industry of the Valley.

“God has blessed me, so far, with good experiences and I am truly thankful. This and hard work has allowed me to overcome most challenges that come with this industry.”

18 © Copyright 2017 by MP Media, LLC

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Women in

POWER

2017 Women in Power recipient, Tammy Carr, Principal at Mortenson, has called Greater Phoenix her home for 20 years. “When I moved here in 1997, Phoenix was the most natural fit,” she says. “I wanted to live in a metropolitan city with exposure to arts and culture, but also offered a healthy lifestyle and open outdoor spaces, and Phoenix had all those elements.”

Two years in at Mortenson, a national leader in construction and development services, Carr is already making a name for herself as one of the movers and shakers of the commercial real estate industry in the Valley.

The Phoenix office is currently completing their first development project in Arizona, The Hampton Inn & Suites in downtown Phoenix, Carr is looking to grow the organization’s footprint. /// “The Hampton Inn & Suites is a project that, as a team, we collectively put significant effort behind,” she says. “There were 18 months of effort before groundbreaking, and it was rewarding to have Mayor Stanton deliver remarks about the importance of this hotel downtown.”

20

A Different Background

The Grand World of CRE

Carr’s career began nowhere near the CRE landscape of Phoenix. “My family moved regularly from one rural town to the next, because my father was in the mining industry, which was volatile,” she says. /// Eventually the family settled in Sturgis, South Dakota where Carr attended school and began her first job in the medical industry, a sector she would remain at for a decade. However, looking for growth opportunities and the preferred climate of Arizona, Carr found herself taking a position at the Phoenix Heart Center. /// “I did not regret the decision, but was still feeling tapped out of growth potential in the [medical] sector, so I decided it was time for a broader change.”

The emphasis on growth and opportunity remains one of the most distinguishing aspects of Carr’s professional life, and was the reason for her entry into the commercial space. /// Her opening foray was on the management side, working for the national engineering firm Tetra Tech, followed by an eight-year stint as Principal and member of the ownership team at Deutsch Architecture Group. /// “I learned a tremendous amount there about leadership and creative problem-solving,” she says. Much of that education was garnered through the Great Recession. /// Though it was a challenging time, the company weathered through the storm, and in 2011, Carr decided the timing was appropriate for her next move.

The move away from Deutsch was again predicated on her desire for continuous growth.

Mortenson The next step for Carr was to move to the general contractor side and a role as Vice President of Business Development at Balfour Beatty Construction. “I had a good understanding of the engineering and architecture side of the business and wanted to explore what happens in the built environment and field,” she says. /// Mortenson had approached Carr about an opportunity in 2014; however, she was not ready to make the commitment at that time. A year later she reached back out to George Forristall, Development Executive at Mortenson, this time with a desire to join the ranks. “I always admired their reputation and culture,” she says. “My primary growth goals remained the same, I wanted a general contracting organization that had a national reach and knew a privately held company would be a better cultural fit.”

© Copyright 2017 by MP Media, LLC

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Women in

POWER Projects The development arm of Mortenson sees Phoenix as the right place for development opportunities and has three projects in the active pipeline and six more being assessed. /// One of those projects will be at Polk & Central where the team is developing a 20-story multifamily project behind the Hampton Inn & Suites in downtown Phoenix. The expected groundbreaking is January 2018. /// Equally on her radar are two initiatives that she is helping to drive company-wide. “We are working on a commercial corporate asset optimization service line for clients,” she says. /// The second task is the restructuring of the company’s strategic marketing efforts. “The emphasis at Mortenson has historically been about RFP responses to generate business,” she says. “We want to diversify beyond that model and balance it with one that emphasizes putting more deals together with our teams doing the upfront work. We are finding sites that meet our client’s business objectives and then developing and constructing the facilities.”

Community

Advice

Many of the leadership and business Success at the professional level has carried lessons Carr has garnered come from her over to Carr’s involvement in the community where interactions with peers and mentors she has served multiple Boards and Committees. From alike, such as Mortenson’s Bob Nartonis. the Urban Land Institute (ULI) Women’s Leadership “I consider Bob my ‘career sponsor,’” she Initiative, NAIOP Arizona, Arizona Association of Economic says. “We aligned philosophically right Development (AAED) to the Greater Phoenix Economic away and I have learned an incredible Council (GPEC), Scottsdale Cultural Council and The Business amount over the last two years.” /// Now Development Guild, Carr has served in leadership roles within all of the insights and expertise are these organizations for more than 15 years. /// Another cause finding their way to the next generation close to her heart is working to move the industry in the direction of CRE leaders with her two-fold but of a more inclusive and diverse culture. “We need to think straight-forward advice: beyond the trade schools and focus on getting engineering, development, architecture and construction education to K-12,” she says. “This will be the only long-term solution to increasing diversity in our workforce. A short-term 1. Always understand bridge can be created by more companies looking the objective. for the behaviors and skills in candidates rather than focusing exclusively on technical experience.”

&

2. Work hard to shed your biases.

Future

22

The Carr Family

As for the future, Carr wants to continue to expand Mortenson’s service lines as well as client base through successful delivery of the company’s upcoming projects and initiatives. “In areas such as real estate optimization, we can change the way our clients maximize their physical assets, freeing capital for other objectives,” she says. /// Down the line, Carr has a different purpose in mind. “Eventually I would like to be more directly involved in public service, perhaps Scottsdale City Council, maybe even Mayor,” she says. “I think I could serve the public well with my diverse experience.” © Copyright 2017 by MP Media, LLC

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Broker Team of the

MONTH

Presented

B roker T eam of the

M onth

by

W i l l m e ng C on s t ruc t i on

Glenn SMIGIEL Steven BRABANT Marian McFARLANE Rick ABRAHAM Bob YOUNG (pictured above)

Off ice & Retail Investment Properties, CBRE 24 © Copyright 2017 by MP Media, LLC

Broker Team of the

MONTH

“Broker Team of the Month” Glenn Smigiel, Robert Young, Steven Brabant, Richard Abraham and Marian McFarlane are committed to serving their clients and expectations. It’s safe to say the team is excited about the future.

“The Phoenix market has done an exceptional job of bouncing back from the economic downturn,” Smigiel says. “Our recovery has been stronger than anybody expected, and we don’t anticipate any storm clouds on the horizon.”

A HISTORY OF SUCCESS Chase Tower. Arizona Center. Desert Ridge Marketplace.

SkySong. What could all these properties possibly have in common? Besides redefining commercial real estate in the Valley, they’ve all been in the hands of one team. /// The word visionary often comes to mind when describing this fivesome.

Their unique ability to find potential for investors in properties where returns were not immediately visible has led them to close on a number of high-profile deals in the Phoenix metro area. Their bets have paid off with an enviable track record that spans decades and $5 billion in property sales to-date. /// One property where the value wasn’t so straightforward is SkySong, Arizona State University’s Innovation Center at McDowell and Scottsdale roads. /// “For SkySong, we were really selling the ASU brand,” Brabant says. “At the time, this part of Scottsdale was looked over for being older and less redeveloped, and a number of investors who came to see the property couldn’t envision an office market.” /// Brabant ultimately credits the support from ASU President Dr. Michael Crow with SkySong’s success as a mixed-used innovation campus. /// “This was an incredible opportunity for both the seller and buyer to reshape this section of the city and become part of Scottsdale history,” Smigiel says. “Now, SkySong has grown to include multifamily housing, retail and office space. The area’s unrecognizable, and we’re lucky to have had a role in that transformation.” /// Desert Ridge Marketplace was another property that defied expectations due to its location. /// “When we sold a 50 percent interest in Desert Ridge, the shopping center was on the edge of Phoenix at the time,” Brabant says. “It ended up spurring the creation of a new district that continues to expand to this day.” /// The team also had a role in the sale of the tallest, largest office building in Arizona. Chase Tower sold for $166.9 million in 2007, the highest price paid for an office building in Phoenix at the time. /// And perhaps even more remarkable, the team completed the sale of the Arizona Center for $136.5 million during one of the most challenging times in recent market history. © Copyright 2017 by MP Media, LLC

In case you didn’t know...

CBRE’s Phoenix office is moving from Tower III to Tower IV of the iconic Esplanade in the Camelback Corridor.

The move is part of its global “Workplace360” initiative, the company’s leading-edge approach to workplace strategy designed to promote flexibility, mobility and productivity through technology-enabled, 100 percent free-address and paperless offices.

The Phoenix office, which will house 470 employees, will be the largest of CBRE’s “Workplace360” offices globally.

25

Broker Team of the

MONTH

EXPERIENCE + DIVERSITY = THE PERFECT FIT

“We’ve been fortunate enough to close on some historic transactions in the past, but this business isn’t only about the numbers,” Abraham says.

From the start of the interview, it’s obvious this team is like a family. Each member complements the other, and like any family, they’ve been through it all. /// “I could not imagine coming to the office every day without these four people,” Abraham says. “Everyone brings something different to the table, and we constantly feed off each other’s energy and work ethic.” /// The team’s expertise is as diverse as it gets. Young, for example, began as a CPA. /// Smigiel, a former sales director known for his experience in asset positioning and marketing, has worked with Young for 31 years.

He credits Young as one of his mentors. /// “Bob’s all about the numbers,” Smigiel says. “He creates value for our clients in ways they never thought were possible.” /// Both Brabant and Abraham are the team’s legal duo. They both started their careers as attorneys. /// “We leave all the legal stuff to Steve and Rick,” Young says. “They’re instrumental in reviewing contracts and helping to negotiate the purchase and sale agreement. That’s just not something that your typical broker might know how to do.” /// McFarlane is the newest member of the team, joining in 2014 as a client service specialist. /// “Marian’s the glue that holds us all together,” Smigiel says.

“She consistently sets the bar higher for our team’s marketing, and we couldn’t be luckier to have her on our team.” /// Among other duties, McFarlane provides marketing support for all the team’s listings and ensures the transaction process is as seamless as possible for the client. /// “We’re all so different yet so alike when it comes to our work ethics,” she adds.

“It was an instant fit when I joined almost three years ago.

Our personalities just mesh perfectly.”

INDUSTRY CHALLENGES “One of the biggest challenges we face as a team is picking the right buyer for a property,” Abraham says. “It’s not always the highest bidder, so we try our best to handicap our buyers and advise our clients as much as we can.” /// For Brabant, though, one of the biggest misconceptions about commercial real estate is that it’s only about what you can see. /// “We don’t say enough how much of this business is actually psychological,” he says. “Part of how we deal with our clients is getting them in the right state of mind so they can better understand the real pricing economics — that’s an art form.” /// As the team looks to the future and beyond, they’re not resting on their laurels. They’re too wise for that. As the Phoenix office market continues to strengthen, they know that the next big deal won’t just come to them. /// “We’ve been fortunate enough to close on some historic transactions in the past, but this business isn’t only about the numbers,” Abraham says. “It’s about the people we meet and the relationships we make and the stories we can later tell – that’s what makes it all worth it.”

26 © Copyright 2017 by MP Media, LLC

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Protégé

PROFILE

“Learn to see in the abstract, but not so abstract that you lose your usefulness to society.

You are asking infinite questions; man is finite.”

— Frank Lloyd Wright

Protégé of Frank Lloyd Wright:

V E R N O N S WA B A C K FAIA, FAICP

28 © Copyright 2017 by MP Media, LLC

Protégé

PROFILE

N

aturally, as an accomplished architect and a proud protégé of the late Frank Lloyd Wright, Vernon Swaback has quoted his renowned mentor in many of his published books – but he is also recognized as a largerthan-life legend today.

According to one of Swaback’s books, “The Creative Community,” FLW had once declared he learned to see architecture as an edifice of sound. Perhaps this could have been a reason that led to him bringing on melodic trumpet player, Swaback, at the ripe age of 17 as a member of his Taliesin Fellowship – making Swaback the youngest person ever to be invited in.

Or perhaps the reason was the young man’s impressive answer to FLW’s questioning of why he wanted to drop out of the University of Illinois: “They were beginning to teach preconceived ideas.”

Furthermore, maybe what really locked Swaback in was his persuasive letter upon receiving golden advice from a few of FLW’s current apprentices at the Sheraton Hotel in Chicago on October 17, 1956, which Mayor Richard Daley proclaimed to be “Frank Lloyd Wright Day.” However the relationship was planted, an eventual arrangement sprouted for a fellowship at the summer home of FLW: Taliesin – where Swaback attributes much of what he knows today about design.

Swaback

on

Frank Lloyd Wright:

“How is it that this lone architect who was born just two years after the Civil War and lived most of his life in remote, hardto-reach places remains the singular iconic name? It implies that his life and work represents something that we might want to be more interested in exploring.”

Born and raised in the inner city of Chicago, Vernon D. Swaback left his architectural studies at the University of Illinois to pursue the highly coveted apprenticeship with Frank Lloyd Wright, spending summers at Taliesin in Wisconsin and winters at Taliesin West in Arizona from 1957 until FLW’s death two years later. “[What you need to understand is] Wright’s idea of luxury wasn’t anything that money alone could buy. It was to live with beauty and culture and to be able to associate with intelligent people and the bounty of nature,” Swaback says.

29 © Copyright 2017 by MP Media, LLC

Protégé

PROFILE Life at Taliesin

FAST FA CTS: • Registered architect in 15 states • Inducted into the College of Fellows by both the American Institute of Architects & the American Institute of Certified Planners • Had been an apprentice for just over 2 years when FLW died (April 9, 1959), and much later served as the FLW Foundation’s CEO and Chairman

The humble and nature-themed communities at Taliesin and Taliesin West were said to have such a feeling of collaboration and intellectual connectivity that Swaback expressed feelings of anxiety when later driving through the comparatively isolated cities in the Midwest. /// Swaback’s holistic views on sustainability were formed during that time spent with the “Taliesin Fellows,” where they experienced an unmatched feeling of connection to nature while sleeping in tents and working on the actual structure during the day. /// “I won’t live as sustainably as that ever again. We didn’t have low-E glass or solar panels or any of the other bells and whistles,” he says. “Some people would think of it as a hardship (sleeping in a tent), but I’d enjoy walking out under the stars with the fresh air blowing over me.” /// After FLW’s death, Swaback remained at Taliesin’s Wright Foundation as its Director of Planning and former Chairman for 21 years before founding Vernon Swaback Associates in 1978, when he was 38 years old. /// “When I left [Taliesin], I had no money and was working as a one-man shop,” Swaback admits. /// By 1999, he partnered with long-term associates, John E. Sather and Jon C. Bernhard to create what stands as Swaback Partners and Studio V Interior Design.

Swaback Partners

Swaback Partners is recognized today for designing breath-taking luxury homes in Scottsdale, Sedona and Paradise Valley, and in areas of California, Utah, Texas, Connecticut, and New York City. The firm is responsible for some of the most significant planning projects in Arizona’s history, including Arizona Biltmore Estates, DC Ranch, and other highly-regarded communities.

Perhaps Swaback’s most proud project is his personal family residence he named “Skyfire” for its intention to be a celebration of the atmospheric effects of the desert. A guiding principle in the design was that he wanted to feel somewhat exposed and vulnerable to the elements, similar to that of the fabric canopy tents in Taliesin West decades prior. /// “When it rains I hear the same drum-like sounds the way I did at Taliesin West.

It’s my evolution of the tent.” /// More uncommonly used yet intentional materials at Skyfire are scoria or volcanic ash; 12-inch-thick walls and concrete floors; and gardens and interiors with sculptures and murals from artifacts, which are offered as custom features of the houses and buildings designed for Swaback Partners clients today.

Just two years ago, Swaback joined forces with luxury home developer, Garth Wieger to create an exclusive 12-lot enclave in the Phoenix mountains near Lincoln Drive and 40th Street, which will have homes ranging from $6 million-$15 million. /// Also impressively, the firm has recently collaborated with the Navajo Housing Authority, in a 19 million acre project involving the planning of five Navajo agencies (equivalent to American states); 24 regions (equivalent to counties); and 110 chapters, (equivalent to cities and towns). Swaback and his team have held individual meetings in more than 110 places all over the Navajo Nation. /// As we celebrate the 150 years of Frank Lloyd Wright this year, some of his prominent Taliesin Fellows, including Vern Swaback, have proven through their success and heightened relevancy that his mentorship lives on today. Even as the buildings will one day crumble, his legacy will never die.

30 © Copyright 2017 by MP Media, LLC

Protégé

Tour of

PROFILE

Taliesin West

in Scottsdale

31 © Copyright 2017 by MP Media, LLC

PROFILE

Mentor

C

ommercial real estate, more than many other industries, thrives on the mentor /mentee relationship as top brokers give guidance and opportunity to the next generation of rising stars.

Just take a quick look at the resume of any big hitter in the industry and you ’re bound to find a few wellknown names that helped them along the way.

Just take a look at ARA Newmark Executive Managing Director Brad Goff and Director Chris Canter. The two multifamily brokerage partners and their team have thrived due in large part to Goff’s experience and leadership and Canter’s ability to soak up that knowledge and bring his own set of skills to the table. /// After working in office and leasing at Lee & Associates, Canter first joined Goff and his then partner, David Lord about four years ago, when the team was Apartment Realty Advisors only. However, the partnership almost never came to be as Canter was set to interview with another multifamily team. Fate had stepped in when his friend Will Strong of Cushman & Wakefield, suggested he contact Goff first. /// That turned out to be sound advice. Canter and Goff met up shortly after and, after also meeting Lord, Canter joined the team. The plan was for him to learn under the two veterans and then assume Lord’s role in four or five years. /// However, as the best laid plans often can go awry, Lord left the team one year later, forcing the young Canter into the fire. /// “When Dave [Lord] left, it forced me to produce as much as possible and to catch up to where Dave was,” Canter says.

32 © Copyright 2017 by MP Media, LLC

PROFILE

Mentor Though the quick transition was tough, he was able to succeed in part due to Goff’s thoughtful guidance. /// “Brad is just a great leader,” Canter says. “He’s a man of integrity, really cares about everyone in the office, and manages by doing. You respect him so much that you want to do well – not just for yourself, but for the team.” /// And Canter has done well, even when the going has gotten tough. /// In his first deal, a 125-unit property in Glendale, the seller had to submit a signed document by 5 p.m. that day, and Canter received a call at 4:15 p.m. from the seller saying he was having problems with his scanner. With the deal on the line, Canter rushed from his office in The Esplanade to Glendale, and submitted the paperwork with minutes to spare. /// That drive is just one strength Canter brings to the team. He also brings an eagerness to learn from Goff and the knowledge he’s gained from years in the field.

WHAT ’ S THE N UMBER O NE LES S O N GOFF HAS IMPAR TED O N CAN TER ?

Over communicate. That simple principle can do wonders relationships, whether it is with clients or even personal life. That’s why Canter and Goff hold at least one marketing call per week with clients to this day.

P R OJECT S

With the strengths of both, along with the rest of their team, Goff and Canter are doing quite well across the board in multifamily. The team does not pigeon hole itself into any one niche, and prefers to take on a variety of projects, from Class C properties in the West Valley to Class A in Scottsdale. /// The team recently sold the Tierra del Sol property in Mesa near Fiesta Mall for more than $31 million, or over $112,000 per door, which is high for that submarket. /// ARA Newmark also has a 274-unit property under contract in the West Valley. The project has not had any recent renovations and is really a blank canvas for light renovations or larger upgrades that could increase rents. The area has very low vacancy rates and the rents in the area have room to grow.

“Chris has been a huge

benefit for our team. He brings a fresh approach to not only the Pool Extension at Tierra del Sol in Mesa, AZ

FU T U RE

Canter’s vision of the future speaks volumes about his relationship with Goff and love for his job. In five years, he hopes to be doing exactly what he is doing now with the same team, albeit on a larger scale. /// “I want to be doing what I am doing now,” Canter says. “I am confident we’ll get more market share through hard work and over-delivering to our clients.” /// Canter is also interested in potentially bringing in a younger member to the team in the future. Will that give Canter the chance to become a mentor himself? If history is any indication, the answer is yes.

process, but also many of the longtime clients in the industry. He has been hugely successful at the art of ‘old school’ brokerage of being creative and selectively matching buyers, properties and sellers.”

— B R A D G OFF

33 © Copyright 2017 by MP Media, LLC

Family

BUSINESS Rick (father) and R J (son)

ROOFING SOUTHWEST is a leading contractor with a footprint in Arizona and throughout the country.

But don’t be surprised if you don’t see its name on a billboard, television ad or on a flyer in your mailbox.

That’s because Roofing Southwest prefers to focus on the commercial and industrial industries and doesn’t want the company inundated by calls for residential services, says Founder Rick Radobenko. /// Rick entered the roofing business as a teenager looking for a summer job in Arizona and has grown along with the industry. As a mechanically minded person, he became intrigued by the equipment used in the industry and assembling equipment.

34

“It was a perfect choice – Take a nice hot summer and spend some time on a roof,” he laughs. © Copyright 2017 by MP Media, LLC

Family

BUSINESS

Those hot summer days didn’t turn Rick off from the industry, though, as he has built a successful company that he now runs with his son RJ. However, for RJ, it wasn’t always in the cards.

RJ didn’t always picture himself working for the family business.

He previously worked in retail sales while pursuing his MBA, but now is an important part of the Roofing Southwest team.

“We work together really well, not that we don’t have our differences, but we respect each other,” RJ says.

The company’s success in recent years speaks for itself and a lot of the credit for that has to go to the father/son duo.

“Having the ability to let me fail is one of the major reasons we’ve had success together,” he says.

Speaking of success, Roofing Southwest has plenty to go around.

Just look at the company’s client list, which includes a who’s who of owners, general contractors and users like Intel, Apple, Best Buy, Home Depot, Ryan Companies, Sundt, McCarthy Building Companies, CBRE, Colliers and Cushman & Wakefield.

ASU Energy Building

Not to mention, Roofing Southwest recently finished work on the PV 303 project in Goodyear. The company is also working on 165,000 SF of roofing for the Terminal 3 redevelopment at Sky Harbor Airport.

One reason Roofing Southwest has retained so many high-profile clients is its position as a full weatherization contractor, not just a roofer.

“We understand the whole building, not just the roof,” Rick says.

The company provides a range of other weatherization services from caulking and windows to expansion joints and thermal issues.

Ten Lofts Apartments

35 © Copyright 2017 by MP Media, LLC

Family

BUSINESS The company also embraces new technologies as it serves its clients, utilizing everything from low rise foam adhesive instead of hot asphalt to drones, thermal scans and vector mapping technology.

“Aerial drone technology with FAA Part 107, which is a special pilot’s license, has given us the ability to give customers progress pictures, full investigations, 4K video five feet above the roofline through a drone, which can then be uploaded to a portal and sent to them within 10 minutes [anywhere in the world],” RJ says.

Roofing Southwest doesn’t just invest in new technologies, though. It also gives back to the community in a multitude of ways.

The company’s philanthropic efforts range from stocking a food pantry to paying for employees to serve at food banks for a day.

The father and son are also focused on making sure the Roofing Southwest community is taken care of, which is why the company makes use of profit-sharing and bonus programs.

Thanks to the efforts of its owners – from a dedication to quality building and new technologies to an emphasis on community mindedness – Roofing Southwest is not just known for making solid, trustworthy roofs but for establishing a great foundation for growth as well.

36 © Copyright 2017 by MP Media, LLC

ORION is looking to continue our rapid growth in 2017. If you would like to schedule a meeting to discuss becoming a valued member of the ORION investment sales or leasing team, please contact Sean Stutzman at 480.634.8194 or via email at sean.stutzman@orionprop.com

OrionCEM_Final.indd 1

7/10/2017 10:21:49 AM

Company Trends

REPORT

Congrats to Ann Atkinson on her promotion to Senior Vice President of Acquisitions on April 26!

Consist en cy.

If there is one word to describe what investors are looking for in a Real Estate Investment Trust (REIT), it is predictability. Sound financial metrics and delivery on objectives are paramount. It would be difficult to find a more consistent publically traded REIT in the marketplace than Healthcare Trust of America, Inc. (“HTA”).

“We have consistently returned over 10 percent on an annual basis to shareholders since inception,” says Ann Atkinson, SVP - Acquisitions and a 2015 Commercial Executive Magazine “Women in Power” recipient.

W

38

ith 17.7 million square feet of gross leasable area in their portfolio, HTA has a presence in 31 states. “We are the largest dedicated medical office building (MOB) owner in the U.S.,” says Kristen Armstrong, Director – Capital & Tenant Improvements. “Our message has been a consistent ‘shareholder first philosophy’ since the Company’s inception and we have a proven track record in the industry.” /// Since 2006, under the leadership of HTA’s CEO, Chairman and founder Scott D. Peters, HTA has invested over $4.2 APPROACH billion in MOB and healthcare real estate assets.

The company listed its shares on the New York Because of the organStock Exchange (NYSE: HTA) on June 12, ization’s dedication to the 2012 and has repeatedly produced MOB sector, the company has solid performance from an been successful acquiring properties operational and financial and expanding its best-in-class platform in perspective. the nation’s top markets. “We invest in 15-20 key gateway markets, including Boston, Raleigh, Phoenix, and Dallas, which have the most compelling demographic and growth profiles, coupled with a strong presence by leading healthcare institutions,” Atkinson says. © Copyright 2017 by MP Media, LLC

Company Trends

REPORT

From L to R: Kristen Armstrong, Bettina Hunt & Ann Atkinson

Also unique to HTA is a proprietary internally managed operations and leasing platform, which continues to outperform in the industry. The superior platform translates into client satisfaction and long-term impressive results for the company. “Our Arizona team manages and leases over 1.2 million square feet. With over 20 team members dedicated to the Arizona portfolio, we all work in harmony to capitalize on synergies and maximize expense efficiencies. Additionally, we see the long term value in building lasting relationships, which leads to high tenant retention and rental rate growth throughout our portfolio,” says Bettina Hunt, Leasing Manager and Designated Broker for HTA’s Arizona portfolio.

GROWT H T R A JE CTO RY Year-over-year HTA’s performance demonstrates a leadership team committed to expansion in market share, stock valuation and corporate footprint.

“We have grown relatively quickly,” Armstrong says. “We started in Phoenix with nine people and now have 75 in our Scottsdale headquarters.

Nationwide, we have over 215 pro-fessionals at local and regional offices who are on the ground, understand their demographics and are in tune with what is © Copyright 2017 by MP Media, LLC

happening in each of their markets.” /// 2016 was a particularly exciting year for the company as HTA invested more than $700 million in MOBs and raised more than $1 billion in capital. From the capital expenditure and TI vantage point, HTA was a busy owner and landlord.

“We injected over $40 million last year into various projects across the country,” Armstrong says.

“This year we anticipate another busy year for tenant and capital improvement projects.”

ST R AT E GY For many companies, having a large amount of properties across the nation could place strain on capital; however, HTA takes a disciplined view. “We are long-term investors so we allocate our resources to the tenants who have changing needs. As an example, even though our Desert Ridge MOB’s are 100% occupied, we were creative in reconfiguring a common area corridor to accommodate a Tenant’s expansion. We implemented the same leasing strategy at our Estrella Medical Center MOB, which has led to the success of

tenant retention and a 95% occupancy rate.” Hunt says. /// One of the core tenets of HTA is they focus on a specific niche of MOBs. “We invest in MOBs aligned with health systems, academic medical centers, and top physician groups,” Atkinson says. “These sophisticated health providers value a real estate partner that is dedicated to the sector and who understands the nuances of medical office. This value is evident when health providers approach us about expanding our relationship by the potential sale of their real estate to HTA.”

39

Company Trends

REPORT

Amidst the political discussion of repealing and replacing of the Affordable Care Act, Atkinson states “we invest in assets leased by the top health providers that are best equipped to withstand shifts in health insurance coverage, reimbursements, and regulations. With over 10,000 individuals turning 65 every day, there will be continue demand for medical office space. These dynamics contribute to HTA’s staying power despite regulatory shifts.” /// Creating a more client-centric offering in their markets will still be held as top priority. “Locally, we have both on-campus and off-campus MOBs, which provide our tenants with the opportunity to offer their patients choice and access, and as a result, our tenants can take advantage of leasing space from the same owner in different submarkets. In fact, a number of our tenants have more than one location within our portfolio.” Hunt says. /// The professional trio also sees MOBs becoming more customized as clients demand space that will benefit the physicians, staff and patients further. “We are definitely seeing an increased demand for more customized tenant spaces,” Armstrong says. /// Another trend that is becoming apparent is a shift toward “community core” locations, where academic centers, hospitals, and physician groups are located within close proximity to one another. Atkinson sites an example locally is HTA’s Desert Ridge Medical Campus, consisting of 2 MOBs leased to approximately 30 tenants in 118,000 SF. This campus is located in the heart of Desert Ridge within minutes of at least four different hospitals. Another example of this new model is in affluent White Plains, New York where HTA owns a 260,000-SF campus comprised of six buildings.

“The campus includes over 40 tenants practicing a variety of healthcare specialties, and is anchored by market-leaders including White Plains Hospital and WESTMED Medical Group,” she says. “In both examples, the tenant composition drives great energy and referral patterns between practices.”

40

The overarching future storyline for HTA is the certainty of growth in the healthcare industry. “The demand for medical care is going to continue to increase,” Armstrong says. “The need is always going to be there.” /// The team is excited about strategically adding scale in regions and markets like New England and Boston Area, where under Peters’ leadership, HTA expanded its portfolio by invested dollars to exceed $1 billion and $385 million respectively. “We look forward to aggressively continuing to acquire properties in

a disciplined ‘rifle shot’ approach, as part of a larger strategic vision.

Our senior team is committed to maintaining a conservative balance sheet and benefiting from our low cost of capital in order to make these accretive investments,” Atkinson says. /// Closer to home in Tucson, there will be significant improvements made to HTA’s La Cholla MOB in Tucson, which is adjacent to Northwest Medical Center. Other local projects include a renovation at HTA’s Phoenix Baptist MOB. In total, approximately $4 million in capital and tenant improvements have been injected into Phoenix properties including facilities with higher occupancy rates. ///

HTA continues to advance their brand in the MOB space with a strategic excellence and a tactical granularity,” Hunt says. “Phoenix has been one of our key markets for the last decade. We have developed dedicated, long-term relationships with our healthcare systems and key physician groups and we want to continue to create value in this sector while exceeding expectations.” /// HTA CEO Scott Peters and the senior management team are committed to HTA’s disciplined strategy to own, operate, and grow a best-in-class portfolio of MOBs and most importantly to continue to achieve superior results for HTA’s shareholders.

© Copyright 2017 by MP Media, LLC

Classic

Timeless design, impeccable craftsmanship in

WATCH FOR NEW PEDERSON in Phoenix

PHOENIX

retail destinations statewide for 35 years.

PROJECTS COMING ONLINE and Tucson

TUCSON

pedersoninc.com | 602.265.2888

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Project-to-

C

aliber – The Wealth Development Company, and MODUS Development have partnered to establish Eclipse, a net-zero energy upcoming townhome development that will raise the bar for innovation and sustainability in the East Valley.

The two companies envelop the ideal synergy of goals for the project: to differentiate and leverage themselves in terms of green technology.

“What we’ve heard from our investors is that they’re very excited about the fact that we’re stepping onto these types of innovative projects,” says Chris Loeffler, Co-founder and CEO of Caliber. “It’s not just the fact that we’re taking the risk, it’s that the local investor community is supporting us by putting their dollars to work.”

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MODUS Development was the first company to bring a net-zero project to Scottsdale. Their focus is to work with a real estate investment company like Caliber to expand and grow the trend in Phoenix.

ECLIPSE TOWNHOMES The vision for Eclipse was to push the envelope for design and sustainability, while still offering advanced technological features and a prime location for future residents. /// The site itself was brought to MODUS by the city of Scottsdale, with the goal of catering to a demographic that is educated and interested in sustainability, and to bring in new businesses from surrounding states. /// “Projects like this are supportive of what the entire city is trying to do,” Loeffler says. “As we bring this product to the table, it will help bring businesses from environmentally focused states, particularly California.

You have to combine lifestyle with business.” /// The upcoming community, located on Granite Reef Road just south of McDowell Road, took over two years to execute. However, it was an ideal spot for what the two companies were looking to achieve, with its close proximity to the freeway and the rapidly growing high-tech corridor led by Sky Song, which has over 3,000 employees. /// “It is wonderful seeing Caliber developing the Eclipse net zero project in Scottsdale; not only is it a model of sustainable development, it is a fantastic response to the demand for quality and features desired by the influx of new residents and skilled workers in the area,” says Danielle Casey, Director for Economic Development for the City of Scottsdale.

© Copyright 2017 by MP Media, LLC

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Project-to-

DESIGN

The design of the building itself is very architecturally unique. The gated community offers a total of 20 units, 14 of which are wedge-shaped and pieced together to create a circle. In addition, there are six, threebedroom rectangular “loft” units that are designed to give spectacular views in both directions, with the oasis pool to the south and the McDowell Mountains to the north. /// The south side of the homes has 21-foot glass walls, with a six-foot overhang. The large window walls were strategically placed to allow for less artificial lighting and air conditioning, and are modeled to look like structures in Newport Beach. /// “By focusing inward, we have lots of glass for natural daylight,” says Ed Gorman, President of MODUS. “Most people try to minimize glass for less heat gain, but we defy their logic by having a lot of glass, because if you face the right direction and have the right overhang, then it’s very efficient.”

TECHNOLOGY

Eclipse will be equipped with cutting edge technology such as Google integration automation, electrical control, cameras and outdoor sprinklers. The virtual assistant tool can be synced with residents’ phones and perform tasks such as play their favorite music when they walk in the door or automatically adjust the temperature. /// “The green technology is not a gimmick – it’s the core of this project and makes it a better home with higher quality and a better living experience,” Loeffler says.

SUSTAINABILITY

The building has infused all ENERGY STAR requirements. It has highperformance windows that block out heat and sound, WaterSense faucets and shower heads, rain gardens to recycle water, sensors that test the moisture in the ground so that plants don’t get over-watered, and Palo Verde trees so that no water needs to be wasted for irrigation. /// “Our spray foam may cost more, but we use more modern heating and cooling equipment, which in turn saves us money and allows us to implement other sustainable technology,” Gorman says. “I call it a ‘Rubik’s cube.’ You give a little and take another, rather than people taking traditional design and adding everything on down the road.” /// Gorman says that the biggest challenge is working with utility companies that don’t want to help with solar incentives as they once did and with energy prices continuously rising; gradually companies will be prompted to move off-grid. /// “We have the most sun in the country, yet they’re trying to deter us from using solar,” he says. “So, we’re working ways around that. We’ll just keep all the power on-site and won’t need utility companies.”

FUTURE

In an industry that is shy on innovation, the two companies are ahead in the game. As MODUS is a mid-sized company with a background in technology, it is very nimble in terms of modernization and originality. /// “The technology is cutting edge and won’t go away in five to 10 years; it has a style and presence,” says Roy Bade, Executive Vice President and Fund Manager of Caliber. “The community is highly supporting it and it has a high return. It’s really a win-win-win.” /// The timeless townhomes are being built at just the current market rate, yet it offers net zero energy and automation technology, because it is all being designed from scratch. /// “We’re finding consumers are demanding it and, in places like California, they’re mandating it, which is what I was saying a decade ago,” Gorman says. “By 2020, all new residential buildings in California will be required to be net zero.”

43

SIDE

Design

LGE Design Build had their sights on the area that is now dubbed Overstreet in Chandler for four years. Dave Sellers, President and CEO of LGE Design Build, envisioned an entertainment and restaurant centric district that would create a sense of community with synergy between the tenants.

Our vision started off in downtown Gilbert where we did a project called Heritage Marketplace,” Sellers says. “When you look at Chandler in comparison to downtown Gilbert, it’s much bigger, there’s more office, more multifamily and overall a lot more going on -- yet there hasn’t been that critical mass of the entertainment and food business yet.”

The area itself offered a realm of potential for the city that was not being utilized by other developers.

“Downtown Chandler has high employment rates, excellent average household income and a high population within a 3-5-mile radius,” Sellers says. “They needed something there.”

LGE originally went after the project during an RFP, but were not selected. However, when the other group was given two years to execute and failed to do so, the City of Chandler offered the project to LGE, with a deadline of 90 days.

“It all happened really fast then. They wanted to see a secure tenant, a lease and a design within 90 days,” he says. “We ended up signing Flix Brewhouse as our anchor tenant, completed the design and brought it to the council.”

Upon receiving the approval, the construction commenced in March.

44 © Copyright 2017 by MP Media, LLC

SIDE

Design

" ...a developer that creates mixed-use projects that bring people together."

Amenities

Final Thoughts

The 77,000-square-foot space will offer a comfortable environment for restaurant patrons and shoppers alike, but it will also have an abundance of room for office space. The area will feature rigid vegetation around its perimeter and large overhangs to provide shade for the east-facing restaurants.

Flix Brewhouse, their anchor tenant, is the first of its kind in Arizona, and Sellers plans on keeping that fresh and distinctive feeling throughout the development.

“We’re not signing any tenants in there that are franchised,” Sellers says. “They’re more local, small tenant groups.”

Sellers intends to bring life to the building, including creative lighting, extravagant murals and a large bridge, which will tower over the project’s entrance.

Although Flix Brewhouse is currently the only secured tenant, there has been a raving amount of interest.

For Sellers, the most rewarding part is seeing how his work and the work of his team transforms an inactive area and brings it to life.

“It’s neat being part of these projects because you can visit once the project is completed and learn how to make each project better,” Sellers says. “That, for me, is the most exciting.”

Sellers prides himself on being a developer that creates mixed-use projects that bring people together.

The project is expected to be at full occupancy and open for business in February 2018.

45 © Copyright 2017 by MP Media, LLC

Sector Update:

SOLAR

NEW SOLAR DESIGN TURNS

SURFACES INTO POWER SOURCES TECHNOLOGY

Two months ago, a California-based startup, Sunflare, unveiled a new innovative solar panel technology, and its success has now spread to the Valley of the Sun.

The cutting-edge technology took over 14 years to develop and is a total game-changer in terms of sustainability and accessibility. The main reason being is that the product uses CIGS solar cells, which do not require glass and allow for significantly thinner layers of semiconductors. The design permits the panels to be flexible and stick onto almost any flat surface, even wide-angled curved surfaces. /// “Our cells look the same as traditional crystalline silicon, but they are a totally different animal,” says Elizabeth Sanderson, Chief Marketing Officer at Sunflare. “The cells are lighter, bendable, laminated and as thin as 2mm, as opposed to 41mm traditional silicon.” /// The installation itself is easier and more efficient because it does not require an aluminum frame, which means that almost any building can become a power-generating hub under the sun. Sunflare states that the thin and agile technology is as durable as traditional solar and is expected to last at least 25 years. /// “Right now, we’re producing at 15-16 percent cell efficiency, that’s what we’ve seen lately, while traditional solar ranges from 13-22 percent,” Sanderson says. “We’re in the middle, but we’re just in the beginning of our technical research and always hearing that our efficiency is improving.”

46 © Copyright 2017 by MP Media, LLC

ENVIRONMENT Quick installation process and utility cost savings are major drivers for clients, but the biggest pull is the environmental benefits; solar power produces no greenhouse gases, reduces water pollution and is an energy source with no expiration date. Sunflare takes the sustainability factor to an even greater level as it requires less energy to manufacture and does not use toxic chemicals. /// “It takes half the energy to produce in comparison to the traditional,” she says.

“We don’t burn anything and use very little water.” /// Furthermore, when it is time to retire the panels, the company separates the laminate from the cells and recycles them.

DEMAND With such easy installation, it comes to no surprise that the company is receiving a vast amount of demand. However, as each individual job is completely customized, they are having trouble keeping up. /// “All I can ask for is that our clients are patient,” Sanderson says.

“We’re expanding our machinery and we’re going to have double the production capacity by the end of this year.”

T H A N K YO U to those who made our first two years in self-storage a success:

Tom Adelson Walter Brauer Leroy Breinholt Kevin Butcher Sam Cameron Tyler Chester Tracy Clark Mike Erwin Steve Fernandez Jim Fijan

John Finnegan Cameron Glinton Norm Herd Tucker Hohenstein Michael Kinneson Bob Kling Andy Markham Greg Martin Will Mast Michael Mossmer

802 N. 3rd Avenue Phoenix, Arizona 85003

Zach Pace Ramey Peru John Schweikert Chris Secreto Rich Sica Chaz Smith Will Strong Brian Tranetzki Nick Walker

STORAGE

wentworthproperty.com 602.875.5000

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Trend

All About the Atmosphere

Interiors

C O MMER CIAL

A

tmosphere Commercial Interior’s Regional Vice President, Jayme Arezzo, and Commercial Real Estate Business Development Manager, Matt Avila, feel right at home in their new downtown Phoenix work lab, which is no surprise given that the company has long ties to Arizona.

Its roots extend back to 1919 as Walsh Brothers, which began selling typewriters. The company transitioned into total office environments and furniture.

Now, nearly a century later, Atmosphere stands at the forefront of the changing landscape of workplace ecosystems. “Our natural business progression has allowed us better integration with the local architecture, design and real estate communities,” Avila says.

PROJECTS The team works with clients ranging from startups to Fortune 500’s across the country, with offices not only in Arizona, but across the Midwest.

Their work spans a range of vertical markets including: corporate, healthcare, education, federal government and hospitality.

48

The office of Ryan Companies, modeled by Atmosphere Interiors

One of the company’s most recent accomplishments was collaboration with Phoenix Design One to complete a space revival for Ryan Companies, one of the nation’s leading real estate development and services companies. The new design conveys a collaborative feel and fuses technology with space flexibility to provide areas for innovation, dialogue and creativity.

© Copyright 2017 by MP Media, LLC

WATCH

Trend

TRENDS Perhaps the best way to describe the current work trend is with the word “space.” Although the trend Atmosphere is seeing is that tenants are using less space, they want more out of it. “We are increasingly working on real estate optimization and utilization services,” Avila says. /// Atmosphere’s prominent partner is Steelcase, the global leader in office furniture and furniture design. Steelcase brings technology to the forefront and provides a variety of touch points in clients’ workspace development processes.

This partnership points to the integration of technology as a burgeoning force in their business.

“We are seeing technology being incorporated into furniture,” says Ryan J. Grote, Steelcase Business Manager at Atmosphere. “Sensors can track the utilization of space to make better real estate decisions, and Steelcase’s partnership with Microsoft points to the next chapter of creative spaces.”

Other workplace solutions, which are changing business operations are Media:Scape, a collaboration and connection tool, which creates very fast ideation, generation and collaboration. And another, the QTPro sound-masking system, emits sound masking audio to create a more controlled and focused environment. “You can turn it off [with your laptop] and the space gets so silent that you can hear a pin drop,” Arezzo says.

Time and energy efficiency is also an important element that Steelcase imbues into their designs. One such development is RoomWizard, a scheduling and process system for logging room usage to save time, energy, and productivity. In the real estate industry, they are starting to see this need in Property Management and tenant coordination. /// “The Room Wizard technology integrates with the user’s internal network, so if you schedule a meeting in a particular room, you can walk up to that room and see that it’s available because it is color-coded green or red, and you can also see the day’s schedule on it,” Arezzo says. /// For Grote, the motivation is straightforward: “Being a good corporate citizen is about increasing stewardship of energy and sustainability. Our purpose is to unlock human potential, and we are living our purpose every day.”

What’s Next?

“Phoenix has incredible opportunity,” Arezzo says. “The metro Valley is attracting high-tech companies born in Silicon Valley, because of the lower cost of doing business and quality of the workforce.”

Arezzo is particularly excited at the prospects for expansion in the marketplace since the company transitioned to private ownership in 2015 “We have been able to invest in and grow the business tremendously. With our senior management team now owning the business, we can engage with the community more effectively and build relationships as our own entity.”

"The Room Wizard," a network integrated management system

With the continued disruption of the physical workplace, Atmosphere is poised to capitalize on their unique set of capabilities and competencies to deliver strong value offerings to not just their clients, but to those who influence the market, including architecture, design, and real estate.

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© Copyright 2017 by MP Media, LLC

Tech

SPOTLIGHT Revolutionizing

COMMERCIAL LENDING C

ommloan has undeniably revolutionized commercial lending, by creating a commercial mortgage lending technology platform that caters to the demand for efficiency, convenience and timeliness from today’s customers. /// The company, which was conceptualized over two years ago, launched its innovative platform, CUPID, in early 2016. The platform allows commercial borrowers to be matched with the best loan to fit their unique needs.

“I didn’t want to create another lead-generating marketplace, which isn’t in borrower’s best interest.

There had to be a platform out there that was borrower-centric.”

Vision Mitch Ginsberg, CEO of Commloan, came from a homogeneous residential lending background. When he learned about commercial lending, he found it was vastly more complicated and diverse. He believed there had to be a better option for a consumer to find the right loan without juggling all the different players in the field. /// “You have all different kind of banks, credit unions, Wall Street players, private lenders and insurance companies,” Ginsberg says. “Within that they’ve all got different programs and guidelines, as there is very little room for standardization. It’s unbelievably inefficient for the consumer and the cost keeps going up, because everyone wants a piece of the pie.” /// At first, he thought that there had to be a reason it wasn’t done; that there were too many variables to maintain that kind of database. However, after further research, he paired with a development team and worked tumultuously for about a year and a half to develop the technology. Today, Commloan has closed an excess of 100 million in transactions.

CUPID Platform

50

The platform itself, which stands for Commercial Underwriting Pricing Index Data, is essentially a cyber marketplace for commercial lending. Ginsberg saw that although there was a strong push on the sales side of the industry, the lending side had not embraced technology at all. /// “I didn’t want to create another

lead-generating marketplace, which isn’t in borrower’s best interest,” he says. “There had to be a platform out there that was borrower-centric.” /// To obtain a loan, the borrower spends about 10 minutes filling out an online application and then are contacted by one of Commloan’s seasoned loan officers who discusses their needs and nonnegotiables. The system runs through all the algorithms and the borrower is matched with their three top lenders. /// “The lenders don’t know this process is taking place, giving complete power to the borrower,” Ginsberg says.

“We deliver a 95 percent loan accuracy, with a five percent intangible – but because we’re submitting to two-three lenders, if we lose one, the client is still going to get the best possible outcome.” /// The process itself benefits both the borrower and the lender. The lenders encounter very little cost incurring the loan, and the borrower typically saves time and money because lenders know they are competing.

Future The company hopes to educate consumer behavior about the vast array of variables to consider. /// “There’s enormous value to have a lending expert walk them through the process,” Ginsberg says. “It’s as good as if they were sitting down with their favorite banker.” /// Although their average market niche ranges from between $1-$20 million, they have working on loans as high as $41 million. © Copyright 2017 by MP Media, LLC

NOV. 15, 2017

4:00 p m - 6:00 p m

ARIZONA COUNTRY CLUB

REIAC Members: No Charge

5668 E. Orange Blossom Lane

Non-Members: $125.00

Phoenix, AZ 85018

Register at reiacsouthwest.org or email sheila@gettingitdone.org

AGENDA

DR. PETER LINNEMAN

3:30 p m

For over 40 years, Dr. Peter Linneman’s unique blend of scholarly rigor and practical business insight has won him accolades from around the world. Dr. Linneman has advised leading corporations and served on over 20 public and private boards, and has published over 100 scholarly articles, four editions of the acclaimed book Real Estate Finance and Investments: Risks and Opportunities, and the widely read Linneman Letter quarterly report.

REGISTRATION & COCKTAILS

4:00 p m – 5:00 p m PRESENTATION BY DR. PETER LINNEMAN

5:00 p m – 5:30 p m

GARY LINHART

“FIRESIDE CHAT” MODERATED BY

Gary co-founded ViaWest Group in 2003 and leads the firm’s capital markets activity, overseeing the sourcing of debt and equity for the company’s various investment opportunities, including long-term programmatic and largescale institutional investment partners. Since its founding, ViaWest has been involved in excess of $500 million of commercial property acquisitions and developments, and currently has projects in Arizona, Colorado, Nevada and Texas.

GARY LINHART, VIAWEST GROUP

5:30 p m – 6:00 p m NETWORKING RECEPTION

We T h a n k O u r G e n e r o u s S p o n s o r s : Alpha Geotechnical & Materials, Inc. • A.R. Mays Construction • Atwell, LLC • BBVA Compass Butler Design Group • CivTech • Commercial Executive Magazine • First American Title Insurance Co. Gilbert, Arizona • Govig • KPMG • The Rockefeller Group • Snell and Wilmer

THE PREMIER NATIONAL TRADE ASSOCIATION FOR COMMERCIAL REAL ESTATE PRINCIPALS AT L A N TA – B O S T O N – L O S A N G E L E S – P H O E N I X

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Talk of the

TOWN Some of your favorite memories from our photoshoots…

“Mandy has the unique ability to make some of the most strong-willed leaders in RE become incredibly submissive and obedient to her every whim in photoshoots!”

– MATT MOONEY, Cousins Properties

“When you are making sure that every part of the pose is as perfect as possible, how can anyone decline a single request? You turn each photo into your work of art.”

– MINDY KORTH, Colliers

“I remember when Mandy told our group we had to wear tuxedos for our photoshoot when it was 110 degrees. She made us go outside and take the picture.

What’s more amazing is that we did it.”

– NATE NATHAN, Nathan & Associates, Inc.

52 © Copyright 2017 by MP Media, LLC

Talk of the

TOWN

“I’d like that to be the only ‘Lineup’ that I ever appear in.”

– CHRIS McNICHOL, Gust Rosenfeld P.L.C.

“My funniest memory is having Mandy contort me into strange and uncomfortable positions for the ‘Lawyer Lineup’ photoshoot and very nicely telling me that I looked ridiculous, with a look of disdain for my modeling skills, put me into a very basic pose.”

– JAY KRAMER, Fennemore Craig

“We so enjoyed meeting your team. They are so energetic, enthusiastic, creative, conscientious and just plain fun to be with.” – MARTIN R. GALBUT, Esq., Galbut & Galbut

“I’m honored to be in the company of a group that I’ve admired and respected for so many years. Commercial real estate is a profession that has a vast number of very talented people, and I feel fortunate to be associated with all of them.”

– DAVE SLAUGHTER, D.L. Slaughter Co. 53 © Copyright 2017 by MP Media, LLC

TECH

Sector Update:

firms, Silicon Valley transplants, and emerging growth companies evolve and establish their brand, they are now finding the vibes of downtown Tempe and Scottsdale may not be the best place to get them to the next level. Suddenly a new alternative combining quality of life, affordable housing, walkable amenities, workplace innovations and professional credibility has emerged at 24th Street and Camelback: • “This is a compelling area bookended by the Uptown and Arcadia neighborhoods where people want to be,” says Ryan Timpani, Senior Vice President, Colliers International.

Over 30 tech-based companies have made Camelback their home, with 2,000+ employees and over 150,000 SF of space leased. A significant new entry to the corridor at Biltmore Center is Zenreach, an online retail marketing company.

After all, Biltmore Center has more restaurants and multifamily units within three miles than Scottsdale, Tempe or downtown Phoenix. /// Another firm, Insight Global, which provides staffing services for tech companies, wanted to position themselves to attract the best talent.

Interestingly, the company had space in Scottsdale, but ultimately decided on the Corridor.

• “The Corridor has executive

housing, cool neighborhoods for millennials, and affordable urban infill,” says Pete O’Neil, Research Director, Colliers International.

C A M EL BACK CO RRIDOR TA KES LEA D I N AT T R A C T I N G T E C H A COMPARATIVE BARGAIN Camelback Corridor benefits from the boom of technology companies here to take advantage of a highly educated workforce, abundant employee base, and robust economic growth conditions. But largely, it’s the operational costs of location that stands out. /// “Silicon Valley companies pay what they consider bargain rates for top properties here,” Timpani says. “One client that is paying top-of-market rates here says it is their lowest per square foot rent of the markets in which they operate [in California].”

MARKET FORCES: JOBS OR PEOPLE?

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An inversion of the traditional employment model has become a powerful dynamic that is changing how companies choose their workplaces in the Valley. /// “The situation for these companies is the need for space from a recruitment/retention perspective,” O’Neil says. “Now lease decisions are all about workplace experience.” /// Buildings must provide a far more diverse mix of offerings for firms to land premier talent.

Common elements, tenant lounges, dining and an urban park are some of the amenities becoming a must-have.

“People are not following jobs anymore; jobs follow people.”

– PHIL

BREIDENBACH, SIOR

Executive Vice President, Colliers International

GROWTH TREND Valley-wide the Colliers team sees growth in speculative office development, “The surge typically begins when vacancy hits 15 percent, and we are at 16 percent,” Timpani says. /// O’ Neil notes the absorption numbers continue to be positive, and points to activity as a good sign of market health. “Leases are smaller, which is indicative of a more sound and stable market.”As companies evolve and grow, they need a better place to get to that next level, and their employees want a place to call home. Camelback Road and 24th Street offers both – it is the place to be. © Copyright 2017 by MP Media, LLC

Sector Update:

As many of our cities are becoming denser,

infill and adaptive land reuse are becoming an increasingly popular option for developers.

For landlocked cities such as Tempe, often the only options are to tear a building down or re-purpose the old. /// Land infill is utilizing vacant land surrounded by properties for development, while adaptive reuse is the process of taking a building and repurposing it. Both offer environmental and social benefits and can potentially save a developer a vast amount of time. However, potential complications are often not evident to the naked eye and they can be mentally exhausting and sometimes downright impossible to maneuver. /// Land use and zoning attorney, Adam Baugh provides his insight to Commercial Executive Magazine on aiding builders and preparing for the unexpected. /// “Preserving a part of the city has significant value, whether that is socially, or historically; people are drawn to that,” Baugh says.

• It bypasses the wasteful process of demolition and reconstruction and the buildings are often re-built with energy-saving features like LED, solar, recycling and window glazing.

• It offers great uncertainty and can be gruesomely time-consuming; therefore, it is essential for developers to do their due diligence.

• “The cons are real and they’re challenging,” Baugh says. “It can be easy to deliver a project out in the suburbs, but give me a quarter-acre parcel in the heart of the city and you can have issues with neighbors, access, parking, code compliance, drainage, CC&Rs or political issues.”

• The most common reuse projects are restaurant and lifestyle center conversions. Baugh was the zoning and land use attorney for The Colony and The Yard on 7th. “People linger longer because there are games to be played,” Baugh says. “They want to experience that unique and creative transformation."

• The reused buildings have novelty and offer a feeling of nostalgia for visitors that identify with it from their memories of its former use. Because no two buildings are alike when they are being repurposed, there is typically no stale repetitiveness in terms of design.

Incentives © Copyright 2017 by MP Media, LLC

INFILL

• Old buildings may have deed restrictions against commercial uses, or they may not have the structural engineering for it.

ADAM BAUGH

• The No. 1 issue is often the neighbors. They may oppose the project or steer it in a different direction.

Land Use & Zoning Attorney

After weighing the potential complications, developers may shy away from adaptive reuse. Therefore, many cities are offering creative and flexible incentives that work beyond rigid code standards to help projects succeed. /// “The incentives can be financial or through processing, like finding ways to expedite permits,” Baugh says. For example, the City of Phoenix offers a maximum of $7,000 to offset fees for eligible projects. /// “It takes a lot of massaging to work; you have to have an appetite for brain damage,” he laughs. “It’s not for the faint of heart, but for those that thrive in those tough situations – the rewards are tremendous.”

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Economy

UPDATE

for the City of Tucson “I strive to bring businesses to Tucson, improve quality of life and make Tucson a city that is well known for innovation and business diversity.”

– C A M I L A B E K AT

Tucson is expected to see significant job growth and commercial investment in its downtown and surrounding downtown areas this year, especially in proximity of the Houghton town center. In addition, the road development along the Broadway and Grant corridors is expected to attract a surge of new businesses.

C

amila Bekat, the Economic Development Manager for the city of Tucson, attributes the city’s strong economic growth to the competitive economic incentive package the city offers to new businesses. This package was put together by the city, the county, the Arizona Commerce Authority, and Rio Nuevo – a multipurpose facilities district that was formed in 1999 for revitalizing the entire district from downtown to Park Place mall.

Bekat started her position in July of 2016, after serving as an economic development specialist for the City of Tucson. /// “The great part of economic development is that while you do get that thrill of the company opening those doors, it’s really the long-term impact of that company that motivates me to do what I do. I strive to bring businesses to Tucson, improve quality of life and make Tucson a city that is well known for innovation and business diversity,” she says. /// Her first task was to work on the revitalization of downtown by building on the momentum of the streetcar project, a $196 million development that was made possible through the Tiger Grant and funding from the regional transportation authority.

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Bekat and her team are focusing on attracting new businesses to downtown Tucson by administrating incentives for ground up development. /// “We offer our primary jobs incentive and that is linked to creating jobs that pay above $52,000,” Bekat says. “Its purpose to not only make it attractive for companies to relocate to Tucson, but also get the right types of jobs to come to the city.” /// This incentive, along with the government property lease excise tax, which allows property owners to abate the property taxes for up to eight years, has attributed to bringing in significant capital investment to Tucson’s Central Business District and attraction of employers to the area. /// By attracting the regional headquarters of Caterpillar Inc., a manufacturer of mining and construction equipment, over than 600 jobs were brought to Tucson. In addition, Raytheon, which is now Tucson’s largest employer, has

just announced an expansion of approximately 2,000 jobs. /// Bekat says that one of her fondest achievements is attracting the Mr. Car Wash headquarters, which was previously located in unincorporated Pima County. /// “The management was noticing they were having a hard time retaining their employees, because their employees were looking for an urban setting,” Bekat says. “They approached us to link them with the incentives we have to bring them to downtown. They brought over 100 employees to the downtown area, which is exactly the type of development we want to see.” /// The main obstacle for economic development is that it is a team sport, and the players need to have a broader picture in mind. /// “It takes coordination amongst all players, different jurisdiction entities, brokers and property owners,” Bekat says. “The challenge is we need to get people to think on a more regional level.” © Copyright 2017 by MP Media, LLC