ABOUT US
Cypress Development Group specializes in high-end residential and commercial project. Our expertise lies in pioneering the most advanced construction technique sin order to foster new ideas, methods and best practices with an uncompromising attention to detail. Cypress Development Group offers comprehensive development services including site selection and acquisition, development funding, strategic planning, project design, construction, green-building expertise and interior design.
MEET THE TEAM
NATHAN DAY CHIEF EXECUTIVE OFFICER Cypress Development Group
TANNER LUSTER PRESIDENT Cypress Development Group
Nathan Day is responsible for the
Tanner Luster is responsible for the
oversight of all company-wide
oversight and coordination of all
development projects such as its
company-wide development projects
current venture, the Sterling at
such as its current venture, Sterling at
Silverleaf .
Silverleaf®.
Day has recently been recognized by
Prior to Cypress, Luster was
Professional Builder Magazine for
responsible for the creation of
being “40 Under 40,” honoring home
countless Arizona and California
building’s young leaders, and by The
luxury homes during his 12 years in
Arizona Republic as “35 Top Arizona
custom home building. Luster is the
Entrepreneurs 35 and Younger.
first and only homebuilder in Arizona
®
to earn gold-level certification with NAHB, awarded for the Sterling at Silverleaf®, making the villas “The Greenest Homes in Arizona.”
MEET THE TEAM continued
JM JIMMIE MANNING CONSTRUCTION MANAGER
NICHOLAS COLLIER CONSTRUCTION MANAGER
DEVON HOFFMAN DIRECTOR OF MARKETING
LEANNE SCHEUB CONTROLLER
JAIME HATCHER PROJECT ENGINEER
CHRIS COFFMAN OPERATIONS MANAGER
OUR APPROACH Cypress Development Group’s approach is to determine the best and highest use of the property in a way that reflects that remains true to landscape and community, while moving the industry forward with cutting edge technology. Our focus is to create projects that exceed our buyers and investors expectations with strong returns with first-class real estate investment products that combine premium craftsmanship, sustainable and LEED certified green building practices, while applying the most cutting-edge and innovative technologies available that will benefit the project and ultimately the homeowner. This includes working closely with city officials, planning and development and zoning attorneys, and neighborhood associations to ensure proper planning and execution that not only meets, but exceeds the industry standard.
NOTABLE PROJECTS
PROJECT HISTORY
Prior to Cypress & Sterling Collection’s involvement, the property
market. Therefore, the actual product mix contemplated to be
was originally purchased in late 2005 from the master plan developer
developed within the subject property may not have been the most
DMB. The property then began a design and entitlement process,
appropriate, especially given the rapidly changing market conditions
which included a mixture of 16 courtyard-style homes (averaging
and the high-end luxury nature of Silverleaf®.
3,000 SF), 13 single-family homes (averaging roughly 3,000 SF), as well as 140 condominiums (averaging 2,500 SF) spread across six, four-story buildings.
For example, the two vacant courtyard style units were not effectively designed on the interior and staged for proper sale. They were currently sparsely decorated, and the very inexpensive and poor
Horizontal infrastructure, including wet and dry utilities and
level of finish is not adequately showcasing the unit’s best features.
roadway improvements, drainage improvements and floodwall
And finally, potential Buyers had little confidence that the ever-
improvements have been designed and installed. Additionally, seven
changing development plan would actually come to fruition.
of the courtyard-style units had been constructed— five have been sold and two remain vacant. The two remaining vacant units are designed with Mediterranean Colonial architecture and built with wood-frame construction. They each have three bedrooms and four bathrooms, feature a full chef ’s kitchen, 18’ vaulted ceilings, a threecar garage, fireplace, covered patio, and a built-in outdoor grill. The property was undoubtedly impacted by the adverse selling conditions of the housing recession and the declining residential
Due to a combination of macro-market conditions, poor interior merchandising and marketing plan, an ever- changing development plan, and very expensive land and horizontal improvements, the project ultimately failed. The project’s acquisition and development lender, M&I Bank, divested its remaining interest in the property. The entity “Sterling Collection, LLC” purchased the note in late December, 2008.
8
LOCATION
THE SUBJECT PROPERTY IS LOCATED WITHIN THE
and cultural amenities, the Loop 101 Freeway, and countless nature
PRESTIGIOUS AWARD-WINNING COMMUNITY OF
reserves and hiking trails, but also from the exclusivity that private
SILVERLEAF® — AN ENCLAVE OF 700 CUSTOM HOME SITES
residential club living affords. Residents of Silverleaf® have the
AND INTIMATE HOMES NESTLED INTO 2,000 ACRES WITHIN
opportunity to purchase memberships to a 50,000 SF private country
THE CANYONS OF THE MCDOWELL MOUNTAINS IN NORTH
club that features a Tom Weiskopf Signature 18-hole championship
SCOTTSDALE, ARIZONA.
golf course, world-class spa facilities, resort and lap pools, as well as numerous social gathering, dining, and relaxation amenities.
Silverleaf is adjacent to and a part of DC Ranch, a luxury ®
community encompassing 8,300 acres with more than 4,600 acres
The project is walking distance from the 81,000 square-foot world-
dedicated to open space that is highlighted by unequaled natural
class DC Ranch Village Health Club and Spa. The club features an
desert beauty and breathtaking mountain, golf, and city light views.
indoor basketball court, racquetball and squash courts, resort-style
DC Ranch boasts numerous community amenities including the
pools, luxurious locker room facilities with steam baths, saunas, and
Desert Camp and Homestead community recreation centers, hiking
whirlpools. Additionally, the club features group exercise rooms,
and biking trails, the Market Street and Canyon Village retail centers,
a pilates and hot yoga studio, cardiovascular and strength training
the Village Health Club and Spa, schools, golf course, medical
areas, a full-service spa, hair salon, and a boutique.
facilities, and houses of worship. The property is 12.7 acres and is adjacent to the DC Ranch’s Village Silverleaf® is the premier gated community in north Scottsdale and
Health Club and Spa to the west the Beardsley Wash to the East. It is
is the highest-end of luxury within an already high-end master-
entitled for 213 residential dwelling units, 14,000 SF of office, and
planned community of DC Ranch. Residents of Silverleaf® benefit
6,000 SF of retail space.
from not only being just minutes away from Scottsdale’s business
9
LOCATION LIFE IN SI DE SI LVE R LE AF ® & DC R AN CH ®
SON
PEA K PK WY
PIMA RD
ET HOM P
G OL F
SHOPPING & DINING
Silverleaf® Golf Club
DC Ranch® Marketplace www.beonmarketstreet.com
DC Ranch® Country Club
Featuring Safeway, Grimaldi’s Pizzeria and Fleming’s Prime Steakhouse & Wine Bar
CO M MUN I TY SE RVI CE S
DC Ranch® Crossing www.dcranchcrossing.com Featuring AJ’s Fine Foods and Hydrate Salon & Day Spa
Desert Camp Community Center Canyon Village The Homestead Community Center
TRA ILS Copper Ridge School (K-8) B CY GA LE
Village Health Club & Spa
LVD
HIKING, BI KING, HOR SEBACK R
Gateway Trailhead Tom’s Thumb Trailhead
UNION HILLS DR
DC Ranch® Village Tennis Center
NORTH PHOENIX
E TH
OMP
SON
PEAK
PKW Y
PIMA RD
SCOTTSDALE RD
LIFE OUTSI DE SI LVE R LEAF ® & DC R A NCH ®
G OL F
PLAC E S O F IN TERE S T
Grayhawk Golf Club
Desert Mountain High School
Troon North Golf Club
Westworld of Scottsdale
TPC of Scottsdale
Talking Stick Fields
Home of the Phoenix Open
The Boulders Golf Club Talking Stick Golf Club
Talking Stick Casino Taliesin West Musical Instrument Museum (MIM)
BELL RD
SH OPP IN G & D ININ G
SCOTTSDALE
Penske Racing Museum
Scottsdale Quarter www.scottsdalequarter.com
Pinnacle Peak Park
Kierland Commons K N A FR YD O LL
www.kierlandcommons.com
H OT ELS, RE SORTS, SPAS & W E LL NE S S
Shops at Gainey Village
JW Marriott Desert Ridge Resort & Spa
T H G RI W
www.theshopsgaineyvillage.com
D V BL
Desert Ridge Marketplace
Fairmont Scottsdale Princess Resort
www.shopdesertridge.com
The Boulders, a Waldorf Astoria Resort SHEA BLVD
SHEA BLVD
H O S PI TALS & M E D I CA L CE N TER S Mayo Clinic (Shea Blvd)
PARADISE VALLEY
The Westin Kierland Resort & Spa Four Seasons Resort at Troon North
SCOTTSDALE RD
Mayo Clinic (Mayo Blvd) Scottsdale Healthcare Thompson Peak Hospital
AIRP ORTS Scottsdale Airport Deer Valley Airport
PHX SKY HARBOR AIRPORT
The Silverleaf® mark and logo are registered trademarks of DC Ranch® L.L.C., the developer of the Silverleaf® community
10
OPPORTUNITY
TURNAROUND PLAN FOR PROPERTY
(i.e., completed homes, roads, sewer, water, dry utilities, drainage
Implement a three-phase, five-year re-positioning, development, and
and flood improvements) and gave no value to the site’s land or
sales plan, which started in 2011 and is summarized below:
entitlements. The underwriting development plan then contemplated redesigning the product to meet market demand. After several interviews with north Scottsdale (and in particular Silverleaf® ) market participants it was determined that the current Silverleaf® buyer had an interest in and preference for:
Sustainable “Green” features
High-level interior and exterior finishes
Smaller home sizes (e.g., 2,800 to 4,000 SF)
Single-family detached products with an attached garage
Outdoor space that is thoughtfully designed to be a part of the living environment
Clean architecture (i.e., not “Tuscan farmhouse”)
Light interiors
GENERAL OVERVIEW
Human-scale features
The original underwriting contemplated that the site was only worth
Turn-key purchasing process
Living near a park-like setting and open space
Phase I: The Villas
Phase II: The Estate Villas
Phase III: The Sterling Collection
the hard construction cost of the actual installed improvements
11
OPPORTUNITY
Additionally, roughly 50% of the buyers within Silverleaf® are second
RESULTS
home-buyers. They also make an active effort to understand who the
developer is, what the overall development plan is, and want to be confident that the developer will complete the project.
19 total homes built and sold in the community Sterling at Silverleaf®
Total sales exceeded $36 million
The revised development plan and floor plans incorporated
Sales price per foot exceeded $680
market input, detailed market studies provided by Metro Study,
Developed and sold 69,971 livable square feet
Developed 2 LEED certified Green communities
Developed 2 Registered Energy Star communities
Successfully re-entitled Phase III condominium zoning which
and highlighted the site’s amenities, such as walking access to the Canyon Village retail center, DC Ranch Village Health Club, and integration with hiking and biking trail systems. In addition, the business plan allowed for the most efficient use of capital and a
lapsed during the housing recession
substantial reduction in capital risk (relative to the original plan for the property), while still affording a substantial upside.
Averaged 40.56% cash-on-cash return for Phase I
Averaged 31.75% cash-on-cash returns for Phase II
Averaged 108.33% cash-on-cash return for Phase III
Annualized ROI of 20.37% for Phases I and II
Net Profit Margins exceeding 24% Phase I and 20% Phase II. More than 3X the national average of 6.4%*.
*Source: nahbclassic.org/generic.aspx?genericContentID=248306 builderbooks.com/the-cost-of-doing-business-study-2016-edition.html 12
CASE STUDY | THE STERLING AT SILVERLEAF ® VILLAS PHASE I
Case Study: Phase I
THE PROBLEM
OUR APPROACH
Develop a cutting edge,
Capitalize on the project’s prestigious
TARGET BUYER
innovative luxury, single family
address within Silverleaf and lifestyle
product during the housing
oriented amenities and memberships to
recession that appeals to a
develop a superb quality, luxury product that
targeted niche demographic
is not only forward-thinking and innovative
where other seasoned developers
but appealing to a very, targeted discerning
had been unsuccessful.
demographic.
Regain buyer confidence through detailed and clear marketing approach.
®
Create preference among homeowners to desire a Sterling at Silverleaf® home
Scottsdale, Phoenix and/or relocating to Scottsdale from key feeder markets for warm weather, active lifestyle or retirement
Household income $1M
Household net worth $5M
Key feeder markets include: Denver, LA, New York, New Jersey, Chicago, and
Create a product that is unlike any in the
San Francisco
Arizona market, with well thought out
Build strong trade alliance during
design and superior interior and exterior
one of the largest construction
finishes as standard in all homes (i.e. home
layoffs in the Industry.
automation, steel construction , air and *
water home filtration systems, etc.)
Affluent families downsizing from North
Expected age 45-75 with a 40% primary and 60% secondary homeowner mix
Expectation is majority of buyers will be all cash buyers * in select models
Case Study: Phase I
RESULTS Phase I of the Sterling at Silverleaf® Villas made national headlines when it was named Arizona's first and only single-family new construction project to be awarded gold level certification by the National Association of Home Builders and gold-level LEED certification from the U.S. Green Building Council.
Launched in depressed real estate market of 2011
Sold out in 14 months
25% non-refundable deposit for new home construction with
Averaged 40% cash-on-cash returns
developer
24.8% average net profit margin 3X higher than NAHB
Sold for top dollar exceeding $530 sq. foot
national average of 6.4%
More than 70% of buyers were cash buyers
*
$1.225 million - $1.695 million sales price
Developed reputation of trust and integrity with buyers placing
*Source: nahbclassic.org/generic.aspx?genericContentID=248306 builderbooks.com/the-cost-of-doing-business-study-2016-edition.html
CASE STUDY | THE STERLING AT SILVERLEAF ® ESTATE VILLAS PHASE II
Case Study: Phase II
THE PROBLEM
OUR APPROACH
The Estate Villas had unique challenges. All homes resided
Worked with H&S International to develop uniform plans
on the east side of the street which limited the replication of
from a construction standpoint while having 5 elevations
elevations. Multiple elevations and floor plans needed to be
changes and 3 floor-plan options.
developed, while keeping with the efficiency and scalability of
one elevation and floorplan through construction.
Draw and build from the knowledge gained in previous phases to utilize the latest technology in spray foam and vapor barriers to provide noise abatement for future
The other challenge was each residence faced a future midrise condominium project. The desire for privacy and noise abatement was paramount.
construction and density.
Develop a two tiered marketing approaching highlighting the strengths of the mid-rise next door and the privacy of a single family residence.
Case Study: Phase II
RESULTS
Sold all constructed product in 24 months
Sold for top dollar exceeding $680 per foot
Averaged 31% cash-on-cash returns
Continued reputation of trust and reliability with buyers placing
20.03% average net profit margin 3X higher than NAHB national average of 6.4%*
25% non-refundable deposits with developer
More than 86% of buyers were cash buyers
$2.2 million - $3.3 million sales price *Source: nahbclassic.org/generic.aspx?genericContentID=248306 builderbooks.com/the-cost-of-doing-business-study-2016-edition.html
CASE STUDY: THE STERLING COLLECTION CONDOMINIUMS PHASE III
Case Study: Phase III
THE PROBLEM Create a new, ultra premium real estate product for mature, affluent
fewer amenities and moderate finishes, these units were catering to
homeowners that want the Silverleaf速 lifestyle experience, but do not
a younger, urban buyer with a more moderate barrier to entry price
want all the upkeep of an expansive home and the maintenance that
point.
goes with a larger home. Despite the lack of a high-end, luxury condominium projects in the There was no existing or similar quality, price point luxury
area, we knew based on the success of Sterling at Silverleaf速 Phase
condominium project of this kind in Arizona to compare the project
I and II and Silverleaf速 real estate sales that there was a need and
to. Similar condominium projects that were built occurred in the
demand for a new, quality product of this caliber for those aspiring to
height of the real estate market and were located in urban dense
live the Silverleaf速 lifestyle.
parts of downtown Scottsdale at much lower price points. Offering
Case Study: Phase III
OUR APPROACH
Reach out to existing Silverleaf® homeowners to confirm interest and
space in each unit was well thought out and storage was maximized in
our findings on whether or not they believed there was a need in the
the most unexpected ways.
market and among their peers for this type of new product in the Silverleaf® community.
We used this tremendous insight to help shape and further refine our vision of a first-of-its kind product in the exclusive Silverleaf®
We met face to face with longstanding and newer Silverleaf® residents
community with elegant condominium residences and penthouses in
to find out what attracted them to the Silverleaf community and
five, four-story buildings.
®
their thoughts on if they and/or their friends and neighbors would be interested in the type of high-end condominium product we had
Thoughtful details and intuitive design set this project apart as The
in mind.
Sterling Collection offers the finest amenities including state –of the art robotic parking valet, private elevators, chauffeured car service,
We quickly learned the amenities they desired and what they liked and
dedicated concierge, sustainable LEED registered new construction,
didn’t like about the idea of downsizing. Most importantly, “women
wine storage and spacious floorplans, along with top-of-the-line
never want to downsize their closets.” Therefore, we kept that in
finishes and much more. Homeowners are also part of the exclusive
mind in designing the units and made sure to keep the walk in closets
Silverleaf® community with full access to Silverleaf® Golf Club and Spa
spacious and well-appointed, so that each closet can accommodate
and the Village’s Health Club and Spa.
more than 400 pairs of shoes. Not something you would find in many other condominium projects. And, storage was something that came
The Sterling Collection at Silverleaf® condominium residences debuted
up often so we made sure the kitchen cabinetry was abundant and ever
to the general public in January 2015.
Case Study: Phase III
RESULTS
12 reservations resulting in $21.87 million in revenue for
As anticipated, three of the reservation holders were existing
first release of “Building K”
Silverleaf® residents looking to downsize and wanted a
13 reservations for “Building L” residence list not released
maintenance free living, with the community life-style
Penthouse and larger units on upper floors were the quickest to be reserved, showcasing demand for high-end
condominium living offers
Reservation exceed $786 per square foot
condominium product at a premium price point
22
AWARDS & ACCOLADES
Both Phase I and II were award with the prestigious U.S. Green Building Council LEED Certification
Over 14 homes independently tested and verified by third party to be 70% or more efficient than standard homes built
2015 International Builder Show (IBS) Home of the Year Award
Both Phase I and II qualified for the Energy Star
2015 International Builder Show (IBS) Custom Home of the Year Award
2014 National Association of Home Builders Finalist
Published in over 110 national and international publications
Source: sterlingatsilverleaf.com/press.php
MEDIA PRESS & COVERAGE The Arizona Republic 06/06/2015
“Silverleaf® Offers Golden Chance” - CALGARY HERALD
Page : A15
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“Best Interests are Mutual” - ARIZONA REPUBLIC WWW.AZCENTRAL.COM
“The New American Home” - WALL STREET JOURNAL || 15 A
|| S AT U R D AY , J U N E 6 , 2 015
This week’s Wall Street recap, investing tips
PAGE 17A
R E A C H U S || K AT H Y T U L U M E L L O , B U S I N E S S E D I T O R , K AT H Y. T U L U M E L L O @ A R I Z O N A R E P U B L I C . C O M || B U S I N E S S . A Z C E N T R A L . C O M
Moorad home goes at big discount Former Diamondbacks CEO sells for $4.3 million less than he paid RONALD J. HANSEN THE REPUBLIC
THE ARIZONA REPUBLIC
Jeff Moorad paid $13 million in 2007 for this 15,000-square-foot mansion on five acres.
i
AZCENTRAL.COM
Former Arizona Diamondbacks CEO Jeff Moorad sold his Paradise Valley home for $8.7 million last week, far less than he sought for the property in recent years. Moorad bought the 15,000-square-foot mansion, located on five acres along Saguaro Road, for $13 million in August 2007, and sought a higher price during intermittent sales efforts over the past five years. He began trying to sell the property as he was also selling his interest in the Diamondbacks and was part of the ownership team for the San Diego
Padres. The buyer is listed as Safe Haven Family, an Oklahoma-based limited partnership that has ties to Edward Gaylord II and Gaylord family businesses that have included sports management and, more recently, real estate investments. Gaylord’s company has an office in Scottsdale. Moorad first made a name for himself in baseball as an agent representing players such as former San Francisco Giant first baseman Will Clark. He held a minor stake in the Diamondbacks and became CEO of the club in August 2004. Moorad quit unexpectedly in
January 2009 to pursue ownership of the Padres, but selling his shares of the Phoenix team dragged on for another two years. Moorad’s investors bought 49 percent of the Padres with plans to purchase the rest. Major League Baseball delayed approval of the deal, citing unspecified concerns about its financing. In March 2012, Moorad resigned as CEO of the Padres and abandoned his efforts to have controlling ownership of that team. Five months later, baseball owners approved the sale of the Padres to a group headed by San Diego businessman Ron Fowler.
Best interests are mutual Friendship fosters developers’ success GEORGANN YARA SPECIAL FOR THE REPUBLIC
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AZCENTRAL.COM
Best friends and business partners Nathan Day and Tanner Luster can joke about how they handle disagreements amid the competitive and often-hectic luxury real-estate environment. This is probably because the heads of Cypress Development Group cannot recall a single conflict that required significant negotiation or resolution. “We arm-wrestle,” said Luster, Cypress’ president. After a pause, he and Day break into a hearty laugh. “We’ve never had one because we are so similar in our thinking.” The fact that both of them lack an outof-control ego also helps, said Day, Cypress’ CEO. “Neither one of us are prideful in nature. If you struggle or need help, you can rely on your best friend and partner who has your best interest,” Day said. What began as a casual friendship between neighbors in an apartment complex has grown into a collaboration resulting in the Scottsdale-based green luxury-development company. The $350 million Sterling Collection at Silverleaf high-end condominium project is the duo’s latest venture, comprised of 213 one-, two- and three-bedroom units ranging from 1,500 to 3,400 square feet. Prices start slightly above $1 million. Homes are slated to be ready by mid-2016. The residences include sophisticated features such as robotic valets that retrieve vehicles with the touch of a button, private elevators that open into the home and iPads, built into the walls, that control audio, video, lighting, climate and security. Along with the high-tech amenities are several LEED-certified aspects, including electric-vehicle charging stations, dual-pane “Low E” windows and LED lighting. The technology and green characteristics were part of the plan from the start, Luster said. “We traveled across the United States to luxury cities to see the different amenities and LEED programs,” he said, citing New York City and Miami. Although the recession’s crippling grip on the real-estate market is not quite forgotten, the timing of Day and Luster’s business model appears to be fortuitous. According to the 2014 Coldwell Banker Previews International Luxury Market Report, contemporary
JOHN SAMORA
Model shows Cypress Development’s $350 million Sterling Collection at Silverleaf high-end condominium project near DC Ranch.
Cypress Development Group Address: 18801 N. Thompson Peak Parkway, Suite 240, Scottsdale Employees: 18 Interesting stat: When buying a home, 25 percent of ultrawealthy buyers consider a fully automated home a priority, according to Coldwell Banker Previews International’s Luxury Market Report. Details: 480-443-6760, cypressdevelopment.com.
consumers are increasingly mobile, tech-savvy and socially conscious — the ideal composition for Cypress’ project. And they are also getting younger, with 81 percent of affluent individuals 35 and younger planning to buy a luxury home in next 12 months. Last year, Millennials also comprised a growing segment of the $1 million homebuyer population, according to Christie’s International Real Estate. See CYPRESS, Page 16A
Anti-discrimination rule is put on hold in Mesa
Glendale considers anti-bias ordinance
MARIA POLLETTA
PETER CORBETT
THE REPUBLIC
THE REPUBLIC
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AZCENTRAL.COM
JOHN SAMORA
Nathan Day (left) and Tanner Luster, CEO and president, respectively, of Cypress Development, in a model kitchen of their Sterling Collection at Silverleaf project.
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Friday’s results Dow Jones -56.12 17,849.46
NASDAQ +9.33 5,068.46
S&P -3.01 2,092.83
AZCENTRAL.COM
It began as a trickle; then, days later, the floodgates opened. In the month and a half since the Mesa City Council began formal talks on a comprehensive anti-discrimination ordinance, officials have received a flurry of e-mails from East Valley residents, business owners, tourism executives, pastors and activists urging the Council to vote their way. One problem: Their preferences are all over the map. About half of those who have written in generally oppose a city anti-discrimination ordinance — a measure that, with some exceptions, would mandate people be treated equally regardless of sex, age, race, eth-
Glendale could become the first West Valley city to adopt an anti-discrimination ordinance proponents say is needed to protect the LGBT community. However, opponents fear it would threaten business owners’ religious freedom. The city revised its anti-discrimination policy for city vendors and contractors earlier this year and is considering adopting a similar ordinance governing city businesses. If Glendale extends those protections to all city businesses it would join four Arizona cities — Tucson, Phoenix, Flagstaff and Tempe — and hundreds across the country that have taken that step. The new administrative policy, which went into
See MESA, Page 16A
See GLENDALE, Page 16A
A Gannett Newspaper Copyright © 2015 The Arizona Republic 06/06/2015
Oil prices dip by half a percent on the news that OPEC intends to maintain its current output in the face of a potential glut by Iran if economic sanctions are lifted. Story, page 4B
Gas prices The average price of a gallon of regular unleaded gasoline Friday, compared with a month earlier: AREA Phoenix Scottsdale East Valley West Valley
FRIDAY
LAST MONTH
$2.78 $2.86 $2.76 $2.78
$2.68 $2.77 $2.65 $2.68
SOURCE: AAA ARIZONA (WWW.FUELGAUGEREPORT.COM/AZMETRO.ASP)
June 8, 2015 3:24 pm / Powered by TECNAVIA
“The Sterling Collection at Silver Leaf” - ARIZONA FOOTHILLS MAGAZINE 24
“The New American Home” - WALL STREET JOURNAL
MEDIA PRESS & COVERAGE “Mediterranean Majesty” - ARIZONA FOOTHILLS MAGAZINE
“New Technology Debuts in Scottsdale” - ARIZONA FOOTHILLS NEW TECHNOLOGY
“Sterling at Silverleaf® Sells Out Phase I - ARIZONA BUSINESS MAGAZINE
25
MEDIA PRESS & COVERAGE
““Upscale Condos to Open” - AZ CENTRAL
The Arizona Republic 05/28/2015
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“Mutual Best Interest” - ARIZONA BUSINESS GAZETTE
Page : BG01
“The Robots Are Coming!” - BISNOW PHOENIX
The Business Resource • abgnews.com THURSDAY, MAY 28, 2015
INSIDE: MORE ESSENTIAL NEWS ABOUT THE METRO PHOENIX ECONOMY Real estate
Entrepreneurs
Regional report
Personal finance
State builds list of most wanted unlicensed contractors. Page 2
Arizona programs, employers help vets find jobs. Page 3
Scottsdale Airpark reports record number of jobs, businesses. Page 4
Do less — and maximize your investment returns. Page 12
Mesa moves on with Apple Giles visits tech icon’s headquarters, where execs reaffirm warehouse plan MARIA POLLETTA ARIZONA BUSINESS GAZETTE
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AZCENTRAL.COM
If John Giles is worried that Apple Inc.’s planned Mesa command center might go the way of its predecessors, he certainly isn’t showing it. The Mesa mayor at a news briefing earlier this week said he was “more ex-
cited than ever” after a recent pilgrimage to Apple headquarters in Cupertino, Calif. He recounted at length how the tech giant’s top-level executives had reaffirmed and fine-tuned their commitment to transforming a 1.3 millionsquare-foot building at Signal Butte and Elliot roads into a warehouse for digital services, such as iCloud storage and
iTunes music. The east Mesa center is still expected to create 150 full-time, high-level jobs, which Giles said likely will be a mix of Cupertino transplants and local talent, plus an additional 300 to 500 contract positions. Apple still plans to invest upwards of $2 billion in the facility within a decade. “Obviously, the economic impact of just the construction activity is very significant,” Giles said. “But then the ongoing economic impact of the several hundred jobs that will be there, between Apple-badged employees and the contract
employees, and the suppliers and the other folks that will be related to Apple — it’s going to be extremely significant.” The renewed vows were welcome news given the facility’s history. Tempebased First Solar Inc. initially built the plant intending to hire about 600 people, but that plan never panned out. To the delight of the city and state, Apple sapphire-glass supplier GT Advanced Technologies Inc. showed up next, with plans to convert the empty space into a bustling factory. But GTAT See APPLE, Page 12BG
‘Forward thinking’ icon for Phoenix BRENNA GOTH AND JESSICA BOEHM ARIZONA BUSINESS GAZETTE AND CRONKITE NEWS
Phoenix leaders and disability activists unveiled a new accessibility icon earlier this month, saying the action-oriented symbol shows a positive change in perception about people with disabilities. The icon, which will replace the international symbol of access on city signs, re-envisions the current depiction of a person statically sitting in a wheelchair. Phoenix is the first city in Arizona to approve the icon after a unanimous vote by the City Council last month. The new icon comes from the Accessible Icon Project and is part of a national campaign. The icon’s arm angle and head position depict someone who is moving in a wheelchair. It will now be used on signs and parking spots throughout Phoenix and will be promoted to other businesses and organizations within the city, Mayor Greg Stanton said at a press conference this week to highlight the first new signs. The change will be cost neutral as existing signs are repainted as need arises and “new signs will be added as needed,” according to a press release. “This icon is a great step forward,” Stanton said, adding, “It needs to be used by everyone.” Using the new icon points to the city’s larger commitment to accessibility, Stanton said. Disability activist Jennifer Longdon said she’s thankful the city is now using something more representative of people with disabilities. “Everyone is capable, able, forward thinking and engaged in our community,” she said. The new icons are appearing in other parts of the Valley, including in parking lots at Glendale’s Westgate Entertainment District. The change comes at a time when the
JOHN SAMORA
Nathan Day (left) and Tanner Luster, CEO and President, respectively, of Cypress Development, in a model kitchen of their Sterling Collection at Silverleaf project near DC Ranch in Scottsdale.
Mutual best interests Friendship fosters developers’ success GEORGANN YARA SPECIAL FOR ABG
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AZCENTRAL.COM
Best friends and business partners Nathan Day and Tanner Luster can joke about how they handle disagreements amid the competitive and often hectic luxury real estate environment. This is probably because the heads of Cypress Development Group cannot recall a single conflict that required significant negotiation or resolution. “We arm wrestle,” said Luster, Cypress’ president. After a pause, he and Day break into a hearty laugh. “We’ve never had one because we are so similar in our thinking.” The fact that both of them lack an out-of-control ego also helps, said Day, Cypress’ CEO. “Neither one of us are prideful in nature. If you struggle or need help, you can rely on your best friend
See ICON, Page 4BG
See CYPRESS, Page 3BG
JOHN SAMORA
An associate at the Sterling Collection at Silverleaf project near DC Ranch, works the phone in the properties showroom in Scottsdale.
W.V. spring training stadiums stay busy WHITNEY M. WOODWORTH ARIZONA BUSINESS GAZETTE
DAVID WALLACE/THE REPUBLIC
The new accessibility icon replaces the international symbol of access on Phoenix’s signs.
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AZCENTRAL.COM
West Valley stadiums spend one month in the spotlight for the springtraining season and more than 1.8 million fans flooded into Valley stadiums for Cactus League games this year. But after the 33-day season ends, when the teams return home and the Will Ferrell mania settles, fans empty
out of Valley stadiums. Cities have funded millions of dollars for the facilities’ creation and ongoing maintenance, so what are taxpayers getting the rest of the year? Goodyear Ballpark, Surprise Stadium, Glendale’s Camelback Ranch and Peoria Sports Complex all extend their game schedules with summer and fall baseball leagues. Youth tournaments draw players and their families from
See STADIUMS, Page 12BG
Copyright 2015 Vol. 134, No. 21 Established 1880
Index » Real estate & law » Page 2
across the country, filling up West Valley hotels during the slow summer season. Cities host family movie nights, and Fourth of July fireworks at the stadiums attract the biggest crowds. “Between spring training and the Fourth of July, I just counted 25 events,” said Debbie Diveney, Goodyear Ballpark’s business-operations su-
Entrepreneurs » Page 3
Regional report » Page 4
Stocks » Pages 5-6
A Gannett Newspaper Copyright © 2015 The Arizona Republic 05/28/2015
Personal finance » Page 12
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May 28, 2015 3:31 pm / Powered by TECNAVIA
January 29, 2015 BisNowPhoenix
26
FINANCIALS
27
FINANCIALS KPI Report
28
FINANCIALS Build Cost Per Lot
29
FINANCIALS Net Profit by Lot
30
FINANCIALS COE Days
31
FINANCIALS Expenses by Lot
32
FINANCIALS Investment Comparison Over Time
33
0M
-69,014
1,929,907
1,229,399
-21,417 July 2016
495,427
1,304,275
-250,668 June 2016 August 2016
1,172,067
-404,850
1,105,915 May 2016
April 2016
-78,789
-464,822
February 2016
664,943
229,570
-272,347
January 2016
378,190
1,039,305
March 2016
1,213,071
-76,648
788,721
71,456
958,524
1,160,079
-244,866
87,749
279,166
1,251,203
December 2015
-651,363
-123,967
-107,512
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
1,335,449
1,088,487
983,077
860,612
885,886
687,509
194,621
628,994
480,566
472,810
380,534
205,759
93,242
86,174
54,991
153,101
-81,393
-8,475
May 2015
4M 1,217,066
S&P Net Investment Value over Time
24,702
-25,762
-5M
April 2015
March 2015
February 2015 43,917
80,557
December 2014 January 2015
123,845
73,042
165,129
56,713
November 2014
October 2014
September 2014
August 2014
126,463
July 2014
-63,282
April 2014 161,264
-124,450
March 2014
June 2014
-10,663
February 2014
2M
463
-32,092
January 2014
4,385
5M
May 2014
-1,733
1,531
1,002
0
-121,401
-84,152
-22,461
4,305,580
4,328,042
4,373,387
4,418,732
4,468,528
4,518,753
4,586,137
4,658,816
2,803,765
494,977
590,547
731,463
650,083
-3,813,948
-3,691,043
-3,556,666
-3,234,496
-3,138,495
-3,003,643
-2,820,548
-2,355,612
-2,256,444
-2,114,375
-1,210,330
-1,301,619
-2,484,183
-3,839,305
-3,109,518
-2,741,054
-3,582,833
-3,108,151
-2,126,350
308,344
5M
December 2013
2,485
-4M November 2013
-2M 2,297
0M
0
Running Total of Net Cash.. -5M
October 2013
Avg. Vz Shares Net 0M
September 2013
Avg. S&P Shares Net
FINANCIALS
Investment Comparison over Time Phase II
Net Cashow over Time (Phase 2) Lot Number 18 19 20 21 22 23 24
VZ Net Investment Value over Time
34
FINANCIALS Cashflow vs Expense Phase II
35
FINANCIALS Net Cashflow over Time Phase II
36
FINANCIALS Investment Comparison over Time
37
1 8 8 0 1 N . T H O M P S O N P E A K P K W Y · S T E 2 40 · S C O T T S D A L E , A Z 8 5 25 5 480 443 67 6 0 · C Y P R E S S D E V E L O P M E N T . C O M