AZRE magazine is published bi-monthly with its in-depth coverage, projects news, economic development issues and other compelling CRE articles that our readers have come to expect for the past 7 years.
NOVEMBER-DECEMBER 2011 Grand Designs 100 Years of Arizona's Architectural Achievements The University of Arizona's Stevie Eller Dance Theatre was designed by Gould Evans and built in 2003. INSIDE ACA: Has it made an impact? p. 8 'Stealth' healthcare construction p. 16 AIA-Arizona: The best and brightest p. 30 "Everything BUT Janitorial" We ARE your single resource for all of your property maintenance needs � Parking/garage sweeping & vacuuming � Hot & cold water pressure washing � Paint striping & curb painting � Engineering services � Complete Interior/exterior painting � Fountain repair/maintenance � Window cleaning � 24 hour emergency flood response � Calcium/hard water stain removal � Handyman services � Property repairs � Trash/debris removal � Indoor air quality monitoring � Mold & asbestos abatement � Light replacement/maintenance Let us show you the advantages of having all of your property maintenance needs solved with one call. ince 1999 ServiceLink Commercial and Professional Exterior Services (PES) have been names you depend on for quality maintenance services at your valley properties. Now we're combining our service lines and our names to bring you just one company to remember. ServiceLink Commercial is the only name you need to know for all your property maintenance needs. From painting and pressure washing to sweeping and repairs, we do it all. S 480-921-7080 WWW.SVCLINK.COM Q. How much could your business save by: upgrading to high-efficiency lighting installing occupancy sensors adding daylighting controls A typical business spends between 17% and 37% of its electricity costs on interior lighting. A. Lower your energy use and start saving today with an energy efficiency rebate from the APS Solutions for Business program. Find more ways to save energy at aps.com/businessrebates or call 866 277 5605. On the go? Scan the QR code with your smart phone. The Solutions for Business program is funded by APS customers and approved by the Arizona Corporation Commission. TABLE OF CONTENTS November-December 2011 Honored with a 2003 Citation Award from AIA Arizona, the Stevie Eller Dance Theatre on the University of Arizona campus in Tucson was designed by Gould Evans. A glass box on the second floor functions as a display window to the outdoor campus mall. GRAND DESIGNS FEATURES SPECIAL SECTION 4 6 8 16 08 Editor's Letter Welcome to AZRE magazine's exciting, new website 24 Development 30 38 41 The Loop 303 is poised to be the road to prosperity BOMA | BUILDING OWNERS & MANAGERS ASSOCIATION New to Market Projects in the pipeline 26 Centennial Series AIA-Arizona Architectural achievements in Arizona the past 100 years 44 Tools to Succeed Major initiatives underway in three key areas Economic Development The Arizona Commerce Authority is 1-year old -- is it making an impact? From talented members come great designs and projects 48 TOBY Awards 2011 54 Mentors on Board 30 Mentors aiding development of young professionals "Stealth" is the new buzzword in healthcare construction Construction Events Who, what & when COMING NEXT ISSUE � Annual Real Estate Industry Leaders � Public Projects/Construction � Company Profile: Adolfson & Peterson � ABA: Arizona Builders' Alliance Access AZRE online with this QR code 2 | November-December 2011 MAGAZINE.COM President & CEO Michael Atkinson Publisher Cheryl Green Vice President of Operations Audrey Webb AZRE: ARIZONA COMMERCIAL REAL ESTATE EDITORIAL Managing Editor Michael Gossie Editor Peter Madrid Assistant Editor Kristine Cannon Contributing Writers Melissa Bordow | Jonathan Higuera | Donna Hogan Interns Kaitlyn Carl | Hayden Harrison | Isabelle Novak Erick O'Donnell ART Senior Graphic Designer Brandon Devine Senior Graphic Designer Mike Mertes DIGITAL MEDIA Welcome to our new website Director Kim Milton Web & Graphic Designer Melissa Gerke MARKETING/EVENTS Manager Whitney Fletcher Intern Morgan Johnson SALES Account Manager John Abbey Account Manager Kevin Small OFFICE Special Projects Manager Sara Fregapane Executive Assistant Kathy Mutschler Database Solutions Manager Cindy Johnson ARIZONA BUSINESS MAGAZINE Senior Account Manager David Harken Account Managers Michelle McBay | Shannon Spigelman RANKING ARIZONA Vice President / Sales & Marketing Lenore Grobstein EXPERIENCE ARIZONA | PLAY BALL Account Manager Lisa Grant SCOTTSDALE LIVING Account Manager David Silver AZ BIG MEDIA EXPOS HOME & BUILDING EXPO PHOENIX WOMEN'S EXPO SCOTTSDALE HOME, ART & GARDEN SHOW Exhibit Directors Kerri Blumsack | Sheri King | Tina Robinson HOME & DESIGN IDEA CENTER T here is always a sense of excitement and anticipation when a new product is launched. I was fortunate to be in a bustling and shiny newsroom in September 1982 when USA Today made its debut. Almost 30 years later I find myself experiencing that same sense of excitement and anticipation as AZ Big Media officially launches AZREmagazine.com, a website devoted entirely to the commercial real estate industry in Arizona. AZRE magazine will continue to publish bi-monthly with its in-depth coverage, projects news, economic development issues and other compelling articles that our readers have come to expect for the past seven years. Our new website allows us to bring more timely news and hot-topic issues to those in the CRE industry. Among the categories: � Discussion Board: A forum for CRE professionals to discuss issues affecting the industry; � Industry Experts: Articles submitted by architects, general contractors, real estate lawyers, brokers, etc., providing insight into their particular sector; � Newest Deals and Closed Sales: AZRE introduces VIZZDA, a service that provides current information on new deals and closed sales; � Latest News: Breaking news as it affects the CRE industry. If your company has been featured in past issues of AZRE magazine, let us know and we will publish those articles online. My goal is to make AZREmagazine.com a relevant and necessary part of your business day. Check us out. Editor (602) 424-8844 firstname.lastname@example.org Showroom Manager Joanne Stanley Account Manager Marianne Avila Event Coordinator Sara Fregapane AZRE: Arizona Commercial Real Estate is published bi-monthly by AZ BIG Media, 3101 N. Central Ave., Suite 1070, Phoenix, Arizona 85012, (602) 277-6045. The publisher accepts no responsibility for unsolicited manuscripts, photographs or artwork. Submissions will not be returned unless accompanied by a SASE. Single copy price $3.95. Bulk rates available. �2011 by AZ BIG Media. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without permission in writing from AZ BIG Media. 4 | November-December 2011 3101 North Central Avenue, Suite 1070 Phoenix, Arizona 85012 (602) 277-6045 � www.azbigmedia.com BROKERAGE n e t w o r k s THOUSANDS OF CLIENTS SERVED BILLIONS OF DOLL ARS IN TR ANSACTIONS PROUD MEMBERS OF NATIONAL REAL ESTATE INVESTOR MAGAZINE'S TOP 25 Outstanding agents. Outstanding results.� remaxcommercial.com this ranking is based on responses to nrei's top brokerage survey, conducted in february and march 2011. brokers provided the total dollar value of leasing transactions and investment sales globally in 2010.In the case of the major national brokerage networks, the survey sought the totals for all offices combined � including independent offices of networks such as the RE/MAX network. �2011 RE/MAX, LLC. All rights reserved. Each office is independently owned and operated. 110933 NEW TO MARKET HOSPITALITY 1 2 1 � FAIRMONT SCOTTSDALE PRINCESS CONFERENCE CENTER Developer: Strategic Hotels & Resorts General contractor: Howard S. Wright Construction Architect: kollin altomare architects Location: E. Princess Blvd. and Scottsdale Rd., Scottsdale Size: 60,267 SF A new, $25M building will provide 24,000 SF of ballroom space, 9,000 SF of meeting space and 14,223 SF of pre-function space with an additional 2,658 SF of restrooms, a 2,000 SF kitchen and 2,458 SF of BOH areas. Expected completion is 4Q 2011. 2 � HAMPTON INN & SUITES SCOTTSDALE Developer: HCW Scottsdale, LLC General contractor: Summit Builders Architect: Butler, Rosenbury & Partners Location: 9550 E. Indian Bend Rd., Scottsdale Size: 64,544 SF The project is a 4-story, 101-guest room hotel on a 2.72-acre site. Amenities will include an outdoor pool, fitness and business centers, and meeting/conference rooms. Subcontractors include Helix Electric, Ron Kendall Masonry, Noble Steel, Masco Framing, Apodaca Wall Systems and Red Oak. Expected completion is 1Q 2012. MULTI-FAMILY 1 � PARCLAND CROSSING Developer: Mark-Taylor/Kitchell General contractor: Mark-Taylor Development Architect: Whitneybell Perry, Inc. Location: South Loop 202 and Alma School Rd., Chandler Size: 383 units The $44M luxury apartment community in Chandler will feature one-, two- and three-bedroom units ranging from 625-1,400 SF. Luxury amenities will include a resort-style pool and clubhouse. Expected completion is 4Q 2012. 1 6 | November-December 2011 NEW TO MARKET INDUSTRIAL 1 � MINE PRO SERVICES P&H Developer: P&H Mine Pro Services General contractor: Colton Constructors, Inc. Architect: Archicon Architects & Interiors Location: 112 W. Iron Ave., Mesa Size: 80,000 SF New construction within the $11M, 80,700 SF renovation project at P&H Mine Pro Services includes a state-of-the-art welding shop and a 2-story office and administration building. Expected completion is 4Q 2012. 1 PUBLIC 1 � PHOENIX ZOO NEELY EDUCATION AND EVENT CENTER Developer: N/A General contractor: D.L. Withers Construction Architect: WDM Architects Location: 455 N. Galvin Pkwy., Phoenix Size: 13,435 SF The new lake overlook facility will sit on a hill adjacent to the zoo's main lake. It will provide entertainment and event capabilities. It will include a unique opportunity to incorporate animal viewing with educational and corporate function. Expected completion is 2Q 2012. 1 RETAIL 1 � SHOPS AT PRESCOTT GATEWAY THE Developer: RED Development General contractor: Double AA Builders Architect: Butler Design Group Location: SWC Highway 69 and Lee Blvd., Prescott Size: 40,500 SF The $8M retail center is planned for up to 40,000 SF of restaurants, shops and services, including a Trader Joe's. 1 MEDICAL 1 � SURGERY CENTER OF GILBERT Developer: Surgery Center of Gilbert General contractor: Wespac Construction Architect: Orcutt|Winslow Location: SEC Recker and Baseline roads, Gilbert Size: 14,000 SF When completed in 3Q 2012, this ambulatory surgery center in Gilbert will feature four state-of-the-art operating rooms with space to expand to five when needed. 1 7 ECONOMIC DEVELOPMENT BY DONNA HOGAN Happy With the Arizona Commerce Authority I "I n August, Tempe-based First Solar purchased 635 acres in Pinal County for $9.8M and announced plans to build a generating station on the property. The rapidly expanding, clean-energy company is still constructing its solar module manufacturing 230-employee roster within a few years of the expansion; � Ventana Medical Systems, which is expanding and adding another 500 jobs in Oro Valley. � BEST IS YET TO COME ACA counts new jobs, not the square footage to house them, so it's difficult to estimate the new office, manufacturing and warehousing space represented by the business growth, Curry says. But while ACA's mission is to generate jobs, Arizona's commercial real estate industry is a big beneficiary of the growth, adds Mike Haenel, executive vice president Industrial Division at Cassidy Turley/BRE Commercial. "Job growth creates absorption, construction and new development opportunities for the state's commercial real estate industry," Haenel said. ACA has assisted companies such as Amazon, First Solar, Suntech and others with expansions and relocations, he says, but possibly even more important is the organization's impact vincing conlocal plant in Mesa, expected to be up and running by mid-2012 with as many as 600 new, high-paying jobs. The company also is building generating stations in Gila Bend and Yuma. In January, Power-One opened its first North American manufacturing facility in Phoenix. The California-based company, which makes inverters to convert renewable energy to usable energy, said it will employ as many as 350 people at build-out. At Power-One's grand opening ceremonies, Gov. Jan Brewer credited the Arizona Commerce Authority for the big win and for wielding CEO clout and corporate incentives in making Arizona a hot spot for solar companies looking to expand or relocate. have been consistently focused on ensuring Arizona is a magnet for business relocation, capital investment and a catalyst for the creation of new business and new jobs. And, with the work of my Arizona Commerce Authority, we're seeing tremendous results in the solar space," Brewer said at the time. A year after the Arizona Department of Commerce, a government agency, morphed into the Arizona Commerce Authority, a public-private partnership led by a board of directors filled with many of the state's top business leaders, six solar companies boasting a combined 1,700 new jobs have announced plans to expand or move to Arizona, says Bennett Curry, who has been piloting the organization's business attraction efforts since it launched. Besides growth in the renewable energy sector, diverse companies are finding Arizona attractive. They include: � Amazon, which recently announced plans to add another 1.2 MSF of warehousing space and 200 jobs to its existing Arizona enterprises; � Able Engineering, which hopes to expand into new manufacturing facilities in Mesa, eventually more than doubling its We're still in a tough economy and having ACA can only help the state with job attraction. -- Mike Haenel, Cassidy Turley/BRE Commercial legislators and other Arizonans about the importance of proffering tax breaks and other enticements to snag coveted business. He credits the prestige of the corporate leaders backing the group with influencing passage of the Arizona competitiveness package. And their combined weightiness as enticing to national business leaders looking for relocation options. "Even though the ACA has only been in existence for one year, and the fact that we are in a slow recovery cycle, the 8 | November-December 2011 ECONOMIC DEVELOPMENT celebrating its1st year, jobs remain the focus as the state's CRE industry reaps the benefits ACA has been instrumental in educating the busibang-for-the-buck is still to come as the organization spent much of its first year laying groundwork. "ACA's active projects are up 38 percent over a year ago," Pruitt says. "One of our short-term plans includes aggressive recruitment of California-based firms within our targeted ness community and those businesses looking to relocate that Arizona has the incentives available for quality job growth," Haenel says. "We're still in a tough economy and having ACA can only help the state with job attraction." Sundt Construction chairman Doug Pruitt, an ACA board member, says the organization has logged some early successes."Working with ACA partners, there has been a massive reduction in vacant space," he says. But Pruitt says the biggest A nniversary Power-One opened its first North American manufacturing facility in Phoenix. 9 ECONOMIC DEVELOPMENT business sectors."And the vision doesn't stop at the Pacific Ocean. "Not only are we working to promote the state nationwide, we are taking the message that Arizona is the best place to do business to a global audience," he says. DMB Associates chairman Drew Brown, also an ACA board member, says each successful recruitment breeds more business. First Solar is building its solar module manufacturing plant in Mesa, which is expected to be up and running by mid-2012 with as many as 600 new, high-paying jobs. And as the expansions and relocations pile up, a boom in the state's commercial real estate industry will be a welcome by-product. "I think ACA's function of attracting high-quality export jobs will be a big shot in the arm for the local economy," he says. "The multiplier effect will encourage other new jobs." As more businesses come to the state, they will fill up vacant residential and commercial real estate, generating demand for new construction and development and the new jobs associated with that. "It's out there. It will happen," he says. You're just a click away from the latest commercial real estate news MAGAZINE.COM UP-TO-DATE INFORMATION ON: NEW TO MARKET CLOSED SALES Renderings & statistics Transaction amounts & descriptions NEWSMAKERS FOR SALE New hires, promotions & awards Comprehensive listings ECONOMIC LEASING DEVELOPMENT Comprehensive listings State & municipal business strategies PROJECTS EVENTS Facts & figures Calendar & networking resources Powered By To advertise call (602) 277-6045 10 | November-December 2011 ECONOMIC DEVELOPMENT A rendering of First Solar's solor module manufacturing plant in Mesa. First Solar also purchased 635 acres in Pinal County and plans to build a generating station on the property. New Build-to-Suit Alternatives Offer Custom Solutions in a Native Environment Away from the congestion of the metropolitan area, but close enough to access readylabor pools and transportation, the AkChin Indian Community's Santa Cruz Commerce Center is ideally positioned to help your clients build their business. With lots ranging from 1.2 acres and up, our fully improved industrial park now offers buildtosuit options to well qualified tenants that provide unparalleled advantages: � A customized facility without the sizable upfront capital outlay � A longterm, lowerthanaverage costpersquarefoot lease � An environment that offers substantial tax savings � A building designed for unique needs and image � Communitymaintained services and utilities at lower rates Located at Murphy Road & Maricopa-Casa Grande Hwy., Maricopa, AZ Brokers Welcome For leasing info: 520-568-3246 www.leaseakchin.com A DEVELOPMENT OF THE AKCHIN INDIAN COMMUNITY SCCC_2011_AZRE_Ad_halfpg_NovDec.indd 1 10/10/11 1:07 PM 11 ECONOMIC DEVELOPMENT Able Engineering is expanding into new a manufacturing facility in Mesa. � BUILDING LASTING RELATIONSHIPS Brown, like other AC A leaders, says the organization can't take most of the credit for attracting the impressive inf lux of new business during its first year. ACA has been forging important strategic relationships with key economic development groups such as Greater Phoenix Economic Council (GPEC) and Tucson Regional Economic Opportunities (TREO) to marshal joint clout, Brown says. "We are working with the ACA on several active projects," says Laura Shaw, TREO's senior vice president for Marketing and Communications. "While the authority is still very new and thus getting its legs, so to speak, we have formed a close partnership and have Focused on building strong relationships. With more than 311,400 square feet of office, industrial and retail space available for lease in Carlson Real Estate Company's Phoenix portfolio, there are still plenty of opportunities to participate in the 2011 Rewarding Relationships program. So don't delay, finalize those leases and get in the game today! Jerry McCormick CB Richard Ellis 98,425 Points Mark Gustin Cushman & Wakefield 85,270 Points Kate Morris & Vince Femiano Transwestern 64,880 Points CURRENT STANDINGS >> Rewarding Relationships is a points-based program which awards points to brokers for new lease agreements. Points awarded are based upon the total square footage and property type. First prize: $4,000 Visa gift card; second prize: $2,000 Visa gift card; third prize: $1,000 Visa gift card. For more information, visit www.carlsonrealestate.biz. 12 | November-December 2011 2011_AZRE_Oct_Ad_D1.indd 4 10/6/2011 11:49:55 AM ECONOMIC DEVELOPMENT global economy and Arizona's somewhat tarnished reputation regarding school funding, immigration, gun laws and other issues. But he is optimistic. "Some 300,000 of our residents have lost jobs since the recession began," Pr uitt says. " We realize that people are counting on us to do our job. T he AC A takes this dut y seriously and is focused on a single task -- getting businesses to invest in A r izona to create jobs." www.azcommerce.com www.gpec.org www.treoaz.org many opportunities moving forward." And the ACA's Curry says the new competitiveness package passed early this year opened a lot of doors for ACA to pitch the state's wares. "Before our toolbox didn't have a lot of tools," Curry says. "Now Arizona is ranked high among Western states." During a recent trade conference in San Francisco with international companies looking for a U.S. presence, the organization landed 19 meetings with interested prospects, and three are actively pursuing a possible Arizona relocation, he says. Pruitt adds the ACA still faces hurdles -- the uncertain Some 300,000 of our residents have lost their jobs since the recession began. We realize that people are counting on us to do our job. -- Doug Pruitt, Sundt Contruction 13 ECONOMIC DEVELOPMENT To Our Sponsors... We appreciate all that you do for us! AZRE Fidelity National Title Insurance Company Roofing Southwest Wells Fargo Cassidy Turley BRE Commercial Jaburg & Wilk Sage Tax Group Cushman and Wakefield Alliance Bank of Arizona Colliers International CityCenter of CityNorth k n aou Th y ACA EXECUTIVE BOARD � Don Cardon: President and CEO � Gary Abrams: CEO and President, Abrams Airborne Manufacturing � Richard Adkerson: President and CEO, Freeport McMoRan Copper & Gold � Craig Barrett: Chairman of the Board and CEO (Retired), Intel � Michael Bidwill: President, Arizona Cardinals � Paul Bonavia: Chairman, President and CEO, Tucson Electric Power � Drew Brown: Founder and Chairman of the Board, DMB Associates � Phillip L. Francis: Executive Chairman, PetSmart, Inc. � Mike Ingram: CEO and President, El Dorado Holdings � Tim Jeffries: Founder, P7 Enterprises � Stephen Macias: President and CEO, Pivot Manufacturing � Michael Manson: Co-Founder and Executive Chairman, Motor Excellence � Mary Peters: President, Mary E. Peters Consulting Group � Doug Pruitt: Chairman, Sundt Construction � Victor Smith: President and Owner, JV Farms � Roy Vallee: Executive Chairman, Avnet � Candace D. Wiest: President and CEO, West Valley National Bank Ernst & Young Paradigm Tax Group Cole Real Estate Investments Commercial Service Solutions Pro-Serve Commercial Cleaning FirstBank of Arizona Willmeng Construction Inc. Wentworth, Webb & Postal Voit Real EstateServices Grubb & Ellis Company Alliance Residential Digital Video Networks www.ArizonaCrew.org 14 | November-December 2011 CONSTRUCTION BY DONNA HOGAN Please Do Not Disturb: Hospital (Construction) Zone he foremost focus in upgrading or expanding a hospital is keeping the work concealed from the patients. So says Steve Whitworth, Kitchell's Healthcare Division manager. It's not like adding or enlarging a store in a retail center, which might force shoppers to step around a construction barrier for a few days or have the piped-in music occasionally punctuated by a floor sander. "In a mall, people will be inconvenienced. In a hospital, a patient's health is at stake," Whitworth says. "In every single project we strive to be invisible. The ability to heal depends on the environment a patient is in. It`s the only thing that matters at the end of the day." The dilemma is that hospitals, as much or more than other commercial real estate structures, need to continuously get bigger and better, he says. "Planning, planning, planning," is the key to keeping healthcare facilities humming smoothly while making major renovations, says Jay Stallings, associate administrator at Banner Desert Medical Center, which unveiled a major emergency department makeover in August. That mantra is echoed by other key players -- from hospital administrators to construction engineers -- who are continuously upgrading and expanding Arizona's top hospitals to address medical care's changing needs and technology advances while keeping the work virtually imperceptible to patients and staff. T Constant planning and communication are top priorities for healthcare builders Extensive renovation has resulted in a new emergency entrance at Banner Thunderbird Medical Center. 16 | November-December 2011 CONSTRUCTION What makes a hospital unique, is that it's a 24/7 facility. There's never a good time to do the work. -- Russ Korcuska, Sundt Construction � FINDING SOLUTIONS Unlike other types of commercial real estate overhauls or tenant improvements, healthcare property renovations come with a whole host of hurdles, from meeting infection control standards to keeping emergency entrances accessible. The biggest hurdle -- no down time. "What makes a hospital unique, is that it's a 24/7 facility. There's never a good time to do the work," says Sundt Construction's Russ Korcuska, who has been piloting hospital construction projects in Arizona for two decades. To maintain top-notch patient care, innovation and expansion is necessary, but upgrading existing facilities means you can't turn off the power, the water or other utilities, you can't block fire escape routes or ambulance entrances, you can't let construction dust or other contaminants get in the air, and you can't make a lot of noise or cause other disturbances that could impact patients or staff operations. "If a surgeon is working on somebody's brain, you can't be 17 CONSTRUCTION Is SB1306 Bed Bugging You? Mitigate Landlord/Tenant Liability K9 Bed Bug Detectives Call Nose Knows @ 480-370-4767 Independently certified to meet National Pest Management Association (NPMA) Best Management Practices (BMP) for Bed Bugs AZ OPM Business License #8917 Discreet*Certified*Licensed NoseKnowsllc.com At Banner Good Samaritan, DPR Construction excavated an area between the central power plant and the new expansion, employing a "vacuum" truck to suck up some of the dirt and expose the utilities. Photo: DPR creating vibrations on the other side of the wall," Korcuska says. "It's extremely challenging." That's why planning an entire project and all possible contingencies to the tiniest detail before ever flipping a power switch is so critical, says DPR Construction's Guy Sanders, who is just finishing up Banner Good Samaritan Medical Center's three-story expansion of operating rooms and pre/post operative care areas. Especially in renovating older hospitals where documentation of what's in the ceiling and under the floor is not always complete or accurate, he says. "Knowledge of a campus is critical," Sanders says. As is double-checking before digging. During the Banner Good Samaritan project, he planned for alternative power sources to keep all ongoing operations running smoothly based on detailed building documentation. Still, during the planning process, he flipped a breaker and did a walk-through of the whole hospital to ensure the documentation was correct. It wasn't. Sanders found some equipment mislabeled and had to do some rewiring -- and re-documenting. � PROPER PLANNING IS CRUCIAL Chris Jacobson of McCarthy Building Companies is just completing a major project at Banner Thunderbird Medical Center. He added a new six-story tower and emergency department expansion in the spot where the old ambulance entrance stood, and then renovated all the newly vacated space after 25 departments relocated to the tower. The project is slated to wrap in January. It has been a five-year, multi-phased project, with planning for every phase starting almost a year in advance, he says. Jacobson and his crew had to design everything from infection, noise and dust control to fire exits -- and figure out how to get workers and materials in and out of the construction sites without bringing them through the hospital. They plotted everything, "even down to which tools to use." "You have to get creative about how to get the work done without coming in with a wrecking ball," he says. The biggest challenge was how to keep the existing emergency department functioning while "de-constructing" the old ER entrance. Jacobson says the solution devised in the planning process -- building a covered bridge from a new temporary ambulance entry a short distance from the construction site -- was key to McCarthy landing the job. "It was a big challenge that nobody had figured out," he says. 18 | November-December 2011 To our beloved Daniel, whose passing brings such sadness to the many that knew him, but especially to the loved ones and his family that he has left behind. Daniel's many accomplishments during his 31 years were astounding. Let us take you on a journey of Daniel's life and experience his quest, his zeal, and his excitement for living life to the fullest. Daniel graduated from Gilbert High School in 1998. He participated in the Marching Band playing drums and won the coveted John Phillips Sousa Award in 1998, some 25 years after his Father Michael won the same award for drums. Daniel was also a fierce competitor at Gilbert High in DECA, which is a competitive business course in business management. Daniel began his real estate career at Marcus & Millichap, where he worked during his collegiate academic pursuits in the research department before entering the family business. Daniel graduated Summa Cum Laude in 2002 with two bachelor's degrees from Arizona State University's W.P. Carey School of Business, one in real estate and one in business management. Daniel was pursuing a Master's Degree in Business Administration at the time of his untimely death. He also attended the Real Estate Management Program: Developing Effective Leaders, at Harvard Business School in 2008. Daniel was listed in Arizona Real Estate Magazine's, "Top People to Know in Commercial Real Estate" for 2009, 2010 & 2011. He was a founding committee member of the International Council of Shopping Centers' Next Generation Division (and later as State Chairman 2006-2009). Daniel was instrumental in creating a community for new commercial real estate professionals to become acquainted with one another. As a member of the Urban Land Institute's Smart Growth Committee, Daniel was part of a diverse team of professionals charged with awarding the prestigious Smart Growth Award. His community work included volunteering with the Maricopa Justice Courts as a Mediator, and serving as a board member with the Jewish Community Foundation. But as busy as he was, Daniel loved life and loved to travel. His journeys took him to Israel on numerous occasions, to China, Asia and much of the United States. He also loved his travel to the "Calgary Stampede" in Canada and was an advocate for leisure diving. Daniel touched the lives of many in the business community who described him as a wonderful man with a strong work ethic, strong dedication to the community and was incredibly gracious. CONSTRUCTION www.DOUBLEAABUILDERS.com 20 | November-December 2011 CONSTRUCTION McCarthy construction workers on a hoist complete exterior work at the Yuma Regional Medical Center. McCarthy Building Companies' scaffolding on one of the exterior walls at Yuma Regional Medical Center. Photos: McCarthy Building Companies And that wasn't the only temporary structure the construction experts had to design and build before even starting the main event. They crafted fire-rated, sound-insulated temporary walls, new directional signage, and a complete hospital kitchen in a trailer. They even planned and built a temporary super-structure that looked like a massive, free-standing fire escape outside the hospital tower to get workers and materials to upper floors without ever opening a hospital door. McCarthy used a similar technique for building out Yuma Regional Medical Center's upper floors, which were pegged for expansion space when the hospital was first built. The engineers planned and built an outdoor elevator and trash chute to keep patients and staff below from commingling with construction workers or debris on indoor elevators. At Banner Good Samaritan, DPR had to excavate an area between the central power plant and the new expansion. Before bringing in the backhoe, Sanders employed a "vacuum" truck to suck up some of the dirt and expose the utilities. Among the most interesting planning tools McCarthy engineers use are laser scans of a hospital's ceilings and floors to find exactly where all the pipes, wires and ducts are located, and 3D modeling software to virtually tuck new utilities amongst the old. "The old way was you had guys with flashlights and measuring tapes," Jacobson says. Sometimes engineers have to detour planned utility upgrades to avoid a virtual collision. That's much better than having workers face a real utility roadblock and have to rethink routes in the middle of a messy construction site, he says. A construction worker checks out wiring in the basement at Banner Thunderbird Medical Center, where extensive renovation took place. If planning is atop the experts' priority list for minimizing patient disruption during construction, keeping everybody in the loop scores a close second place. A critical component of both planning and construction stages of any healthcare project is communication with all the stakeholders, says Stallings, whose new triple-sized, state-of-the-art emergency department took seven years from drawing board to debut. Stallings says involving every hospital department touched by the project from start to finish made the process as painless as possible for them and especially for patients. "This was a collaborative project with physicians, staff, clinicians, infection control, environmental services," he says. "All were impacted. We worked hand-in-hand with the architects and construction staff. We had weekly construction meetings, sometimes daily, with all who were impacted." "We provide an important service to the community. We couldn't shut down the emergency department and continue to be a hospital," Stallings says. "In the moment when somebody needs help, we have to be there. We take that very seriously. Our approach was transparency (to patients), collaboration, a high level of communication and training." www.dpr.com www.kitchell.com www.mccarthy.com 21 CONSTRUCTION: PROJECT NEWS � PHOENIX COLLEGE REMODELING WORK INCLUDES STUDENT UNION Addition and remodeling work to the existing Hannelly Student Center continues at Phoenix College. The main project is remodeling of the Learning Center Building into a student union with an exterior patio. Work includes 45,650 SF of remodeling and 13,000 SF. Expected completion of the $16.8M project is 3Q 2012. D.L. Withers is the general contractor; RNL Design is the architect. Remodeling work at the Hannelly Student Center at Phoenix College (left); DPR Construction's renovation at the Hospice of Arizona in Mesa (below). � MCCARTHY PROJECTS INCLUDE SOLAR STATION, NEW SCHOOL BUILDING McCarthy Building Companies is completing construction of the 145-acre Cotton Center Solar Station in Gila Bend. The $14.3M project involves installation of the largest (18 mw) photovoltaic ground-mounted solar tracking system in Arizona. Installation includes PV racking system, modules and electrical system. The 75,000 solar panels are arranged in 1,566 rows connected to 108 single-axis trackers. On sunny days the project is expected to produce enough energy for 4,500 residential customers. Developer is SOLON Corporation and APS. Subcontractors include Blount Contracting, Buesing Corp., Schuff Steel, Ironco, and Delta Diversified. Expected completion is late 4Q 2011. ... McCarthy completed a new, 2-story, 67,000 SF building that houses 32 classrooms, a library, dining room and administrative offices at Aguilar Elementary School in Tempe. HDA was the architect for the $11.6M renovation project. Subcontractors: E&K of Phoenix, Kortman Electric, Maverick Masonry, Midstate Mechanical, Schuff Steel, Progressive Roofing and Suntec Concrete. Administration Building in 2Q 2012. The 5- to 7-story building at the SWC of 5th Ave. and Madison in Phoenix will house the 911 dispatch center and consolidate MCSO administrative functions. Architect is Gabor Lorant Architects. Expected completion is 3Q 2013. � DPR WRAPS UP RENOVATION AT HOSPICE OF ARIZONA DPR Construction completed a 12,064 SF renovation of a one-story unoccupied building and existing site area for Hospice of Arizona in Mesa. The interior build-out included 13 resident/patient rooms, staff support and administrative spaces, family gathering areas, a cafe, outdoor courtyard and a commercial kitchen. The Greenfield Comfort Garden, a feature of the exterior site, honors former Arizona Gov. Rose Mofford. Projects DPR is completing in 4Q 2011: Willis TI, Scottsdale, 24,992 SF; West Valley Medical Center PACU renovation, Goodyear, 3,500 SF; SARRC Vocational & Life Skills Academy TI, Phoenix, 10,159 SF; and Merkel Corp. TI, Scottsdale, 25,804 SF. � MORTENSON SELECTED FOR 3 PROJECTS ON NAU CAMPUS Mortenson Construction has been awarded three projects on the Northern Arizona University campus in Flagstaff, including a new Science & Health Building and major renovation to the Multipurpose Events Center. The $55M, 120,000 SF Greenfield Science & Health Building will add new teaching and research labs and classrooms. Expected completion is 3Q 2014. The $18.5M events center project is a major renovation of the 94,000 SF NAU Fieldhouse into a multipurpose center. Work includes space reconfiguration, structural repairs, a new west entrance and new acoustics and lighting. Expected completion is 1Q 2013. A $3.5M renovation to the Lab 17 building includes HVAC balancing and fire and life safety updates. Expected completion is 4Q 2011. � 1 MSF DATA CENTER SCHEDULED TO BREAK GROUND IN 2012 CyrusOne, a data center colocation provider, plans to build a 1 MSF facility in Chandler with construction set to begin in 2012 and completion expected by early 2013. CBRE helped complete the sale of a 40-acre parcel at Continuum, a 152-acre master-planned science and technology business park located in the Price Corridor. This facility will serve as the primary location for CyrusOne's West Coast colocation operations, targeting the Northern and Southern California markets. Luke Walker, David Carder and Nick Di Paolo of CBRE's Phoenix office represented the seller, Capital Commercial Investments Inc. of Austin, Texas. CyrusOne was represented by Mark Bauer of Jones Lang LaSalle in Phoenix. � D.L. WITHERS TO BUILD MCSO 911 CALL CENTER D.L. Withers Construction will begin work on the $80M, 120,000140,000 SF Maricopa County Sheriff's Office 911 Dispatch Center and 22 | November-December 2011 � PEGASUS CONSTRUCTION COMPLETES TI IN GOODYEAR BUILDING Pegasus Construction completed a $140,000, 2,800 SF tenant improvement of an existing building at 1380 N. Litchfield CONSTRUCTION MT Builders recently completed Alta Vista Retirement Community in Prescott. Road in Goodyear for New Orleans-based Naked Pizza. The project includes a kitchen and customer area for takeout and delivery, an open office area to train kitchen staff and a conference room. The building will eventually become the local corporate office for Naked Pizza. Architect was Reece Angell Rowe Architects. Subcontractors included Uniko Glass and Mirror, Sunset Acoustics, Northwest Floor & Wall, JJJ Electric, Freedom Fire Protection, Diamondback Builders Services, Commercial Service Company, Banker Insulation, AZ Professional Painting, ABBA Aire and Mountainview Flooring. � KRAUS-ANDERSON BREAKS GROUND ON MULTI-FAMILY PROJECT The Phoenix office of Kraus-Anderson Construction Company broke ground on a 17,176 SF supportive housing project at 1140 E. 5th Ave. in Mesa. The 18-unit accessible apartment complex will serve low-income individuals with physical disabilities. The multi-family building will include 14 one-bedroom units, four two-bedroom units, resident parking and a community building. The complex is located in an infill site and will feature landscaping using native species, pedestrian paths leading through the 2-acre, three-building site, and underground storm water infiltration system. Expected completion is 1Q 2012. proposed $150M project will include a convention center. Tenants will sell merchandise ranging from consumer products, automotive products and food. ... An apartment complex in Scottsdale is being proposed by a local developer who plans to demolish the old Barcelona nightclub at 73rd St. and Greenway-Hayden Loop. Plans by Scottsdale Place LLC call for a four-story, 240-unit apartment complex at the site. ... LWI Advisory Group of Del Mar, Calif., has submitted plans to the City of Gilbert for a 382-unit apartment complex near SanTan Village. The proposed complex is near the SWC of Ray Rd. and SanTan Village Parkway. CONSTRUCTION P&Z � MARICOPA COUNTY The Maricopa County Planning and Development Department is proposing numerous text amendments to the Maricopa County Zoning Ordinance as part of the Chairman's Initiative. These amendments include Hillside Regulations, Accessory Dwelling Units, and Distance Between Buildings and Side Yards to name a few. For more information, visit www.maricopa.gov/planning. � STG DESIGN, MT BUILDERS COMPLETE RETIREMENT COMMUNITY Construction was completed recently on the 176,332 SF, $17M Alta Vista Retirement Community in Prescott. STG Design provided architectural services and MT Builders was the general contractor. The project consists of two senior living communities linked by a shared 14,000 SF recreation center. There are 44 units of assisted living and 88 units of independent living. The development is situated on a 6-acre parcel with a view of the mountain ranges that surround Prescott. � CITY OF PHOENIX The City of Phoenix Planning and Development Department has begun the Commercial Combination Inspector Pilot Program, empowering a single inspector to inspect structural, plumbing, mechanical, and electrical and issue permits on the job site. For more information, visit http://phoenix.gov/development/index.html. � TOWN OF GILBERT The Town of Gilbert Development Services Division recently implemented the new Electronic Plan (E-Plan) Review that is designed to streamline the review process and improve communications and review accuracy. For more information, visit www.gilbertaz.gov/eplan. P&Z column by Dave Coble and Karl Woodard, MEUP, with Coe & Van Loo Consultants Inc. www.cvlci.com 23 � ON THE DRAWING BOARD Scottsdale-based AZ Sourcing LLC is planning to build a 1.5 MSF business center in Casa Grande to be named Phoenix Mart. Colliers International has been hired to sign up prospective tenants. The DEVELOPMENT BY JONATHAN HIGUERA Road to Prosperity Economic development along the Loop 303 seen as a boon for Northwest Valley residents, businesses unbelt Holdings, which developed the Vistancia master-planned community in the far Northwest Valley, has racked up some impressive successes developing land for homes and commercial enterprises near freeways. Back in the mid-1990s, it opened McDowell Mountain Ranch in North Scottsdale. At the time it seemed like an isolated community with leapfrog development written all over it. But by the time the Loop 101 was completed, McDowell Ranch was well positioned for easy freeway access. By 2003 the 3,200-acre master planned development was built out. So when it opened Vistancia in 2005, Sunbelt was aware of the regional transportation plans that called for another freeway coming within two miles of the development. In May, that foresight became reality with a 14-mile stretch of the Loop 303 between 1-17 and Happy Valley Road. The completion also signaled bigger things ahead for Vistancia. Currently, the master-planned community has 4,000 residents living in a range of home styles, from luxurious to entry-level, with the potential to add 10,000 more. It also hopes access to the Loop 303 can create some employment opportunities for those residents and others in the Northwest Valley. Sunbelt, along with the city of Peoria and the Greater Phoenix Economic Council, are in the midst of unveiling marketing plans for a 500-acre commercial development site that sits between Vistancia's residents to the west and the Loop 303 to the east. To help spur interest, Sunbelt is doing its part by building a 1.5mile stretch of road to connect to the Loop 303 from Vistancia. The Lone Mountain Road project is being paid for by Sunbelt. That project is expected to be completed in 1Q 2012. "My purest hope is that it will become an employment core for the city of Peoria and the Northwest Valley," says John Graham, president and CEO of Sunbelt Holdings, referring to the commercial project. institutions could put a flag there eventually. "We're seeing an explosion of interest," says Nate Nathan, listing broker for the commercial project and principal of Scottsdale-based Nathan & Associates. "These freeways change everything." He envisions one or two hospital flags, a corporate headquarters and even a regional mall at some point. The timelines for actual building is clouded by the economy. But the groups involved say that now is the time to forge ahead with the marketing plans. "In the short-term, the economy has made it more difficult," Graham says. "But we think the time is absolutely right to push it. ... We're getting a warm reception." The 500 acres are about as close to shovel ready as you can get without knowing who will occupy the land, says Scott Whyte, director of economic development services for the City of Peoria. GPEC has dubbed the 500-acre commercial project a "megasite," meaning it has enough land and unique zoning attributes that GPEC will market it to national and international users. � ROOM TO GROW Nathan compares the opportunities along the 303 to the growth and development that has taken root along the Loop 101, especially in North Scottsdale. "When you open freeways, over the course of 15 years when you have infrastructure, it goes," he says. The work on the Loop 303 is far from complete. The Arizona Department of Transportation continues to work on stretches with plans for it to be a completed six-lane freeway by the summer of 2014. But the improvements will continue over the next decade. "When you think of local plans, it's certainly time for the Loop 303 to have its day in the sun," says ADOT spokesman Doug Nintzel. "The Loop 303 will be getting a lot of attention over the next three years." www.azdot.gov www.gpec.org www.nathanandassociatesinc.com www.peoriaaz.gov www.sunbeltholdings.com � ON THE DRAWING BOARD Plans call for attracting a broad range of businesses, from medical complexes and corporate headquarters to environmental tech and advanced business services companies. Even higher education 24 | November-December 2011 BROKERAGE � Fender Musical Instruments Corp. of Scottsdale moved its headquarters from the Salt River Pima Maricopa Indian Community to the Perimeter Center Business Park in Scottsdale and leased 110,875 SF of a 127,500 SF office at 17600 N. Perimeter Center Drive. The 11-year lease is worth an estimated $27M. The tenant was represented by CBRE's Jerry Roberts; Fender was represented by Gary Gregg of CRESA Partners in Phoenix. � The Plaza Companies signed 48 transactions totaling 112,000 SF and $12M in new and renewal leases. The activity included Plaza's leasing portfolio in the West Valley, Phoenix, Scottsdale and Tucson. Leases included 24,000 SF at Webb Medical Plaza A and B, and Royal Oaks Plaza; 6,800 SF at Pima Medical Pavilion in Scottsdale; 5,548 SF at Paradise Valley Medical Plaza; and 5,500 SF at Boswell West Medical Plaza. Plaza Companies brokers involved included Megan Sher wood, Bettina Hunt, Margaret Lloyd, and Eric Tollefson. � Colliers International negotiated a 5-year, 104,352 SF lease at 464 E. Chilton Dr. in Chandler. Mike Parker and Evan Koplan of Colliers' Phoenix office represented the landlord, Primrose Properties, Ltd. The tenant, Phoenix Packaging Operations LLC, was self-represented. � The Phoenix office of Lincoln Property Company added 108,626 SF of new leases at Broadway 101 Commerce Park in Mesa. Boeing/Aviall, Inc., World Wide Technology, Inc., and Dragonfire Racing added a total of 101,813 new SF. In addition, new tenant Comercializacion Y Servicios Del Norte signed a 6,500 SF lease. World Wide was represented by Gregor y W hite and Ryan Keiser with CBRE; Boeing/Aviall was represented by Kevin Cosca of CBRE; and Lincoln Property, the landlord, was represented by Cooper Sutherland. PHOENIX LEASING � Cassidy Turley BRE Commercial negotiated a 3-year, 23,124 SF lease at 602 W. 22nd St. in Tempe. Marc Tuite and Kris Martin with Cassidy Turley's Industrial Services Group represented the landlord, Agua Del Sol. Lisa Hoffman with DPR Realty in Scottsdale represented the tenant. $9.125M sale of a 250,796 SF industrial building at 2225 S. 43rd Ave. in Phoenix. Brad Ahrens of CPI represented the buyer, PROLOGIS. Seller was the Mililani Group. � PICOR Commercial Real Estate Services negotiated two leases totaling 21,579 SF at 333 E. Wetmore. They include the Department of Homeland Security Office of Inspector General (8,798 SF) and Psomas Engineering (12,600 SF). PICOR's Rick K leiner represented the landlord, Pearlmark Real Estate Partners. TUCSON LEASING � Helix negotiated the sale of a 26,425 SF reta i l and of f ice bui ld ing in t he Scottsdale Airpark, 15023 N. 73rd St. The building was purchased by Next Gen Real Estate, LLC and Helix will be managing the property. PHOENIX SALES MIXED-USE � CBRE completed the sale of Fountainhead Office Plaza, a newly-developed office campus with two high-rise Class A office buildings totaling 439,070 SF in Tempe. The buildings were developed by USA A Real Estate Company along with Metro Commercial Properties. At $137M, it's the first major office sale of more $300 PSF in the Phoenix market since 1Q 2008. CBR E's Kevin Shannon and Michael Moore (Torrance, Calif., office), along with Bob Young, Steve Brabant, Glenn Smigiel and Rick Abraham of the Phoenix office, represented the seller San Antonio, Texas-based USAA Real Estate Company. The buyer was an affiliate of KBS Realty Advisors of Newport Beach, Calif. � Cole Real Estate Investments acquired PetsMart Inc.'s 356,000 SF corporate headquar ters for $102M. T he loca l investment firm also paid $74M to add 11 PetsMart retail properties to its portfolio. PHOENIX SALES OFFICE � CBRE negotiated the $42M sale of the 357-unit Residences at Forty Two 25, 4225 E. McDowell Rd. in Phoenix. The seller was The Boulevard at McDowell L.P. The sale was brokered by CBRE's Tyler Anderson and Sean Cunningham. PHOENIX SALES MULTI-FAMILY � ORION Investment Real Estate Solutions negotiated the all-cash, $9.27M sale of Ahwatukee Plaza, a 72,650 SF, shopping center at 51st St. and Elliot Rd. just off of I-10. The cash buyer was Whitestone REIT. Ari Spiro and Sean Stutzman of ORION negotiated the deal. PHOENIX SALES RETAIL � Cassidy Turley BRE Commercial completed the sale of 12.49 acres north of the NEC of Val Vista Dr. and Chandler Heights Rd. in Gilbert. H.H.B. Real Estate Investing purchased the residential land for $750,000 from Arizona State Credit Union. Paul Boyle and Rick Danis w ith Cassidy Turley's Capita l Markets Group and Pat Sinnott with the Land Group represented the seller. PHOENIX SALES LAND � Jones Lang LaSalle brokered an all-cash, $9.95M sale of a 302,640 SF distribution building at 9704 W. Roosevelt Rd. in Tolleson. Tony Lydon and Marc Hertzberg in the Phoeni x office of Jones Lang LaSalle represented the seller, the Paul and Eleanor Sade Trust of Alamo, Calif. � Commercial Properties Inc. negotiated the PHOENIX SALES INDUSTRIAL � PICOR Commercial Real Estate Services negotiated the $2.424M sale of a 52,317 SF bu i ld i ng at 3949 E . Ir v i ng ton. Southwest Fiberglass LLC purchased the building from Sundt Construction. PICOR's Peter Douglas and Rob Glaser handled the deal. TUCSON SALES INDUSTRIAL 25 SANDRA DAY O'CONNOR U.S. COURTHOUSE Architect: Richard Meier Year: 2000 sleek style of construction. Most impressively, the courthouse integrates an innovative cooling system in order for climate control. This evaporative system brings outside air into the atrium and under the roof, where it travels to the courthouse block. The Sandra Day O'Connor U.S. Courthouse in Phoenix is the design of architect Richard Meier. The courthouse was built in 2000. Its most distinguishable trademark is a six-story wall of glass. Photo rendering: Brandon Devine and Cory Bergquist room follows the glass trend with a circular-lens ceiling. This modern architectural achievement reflects a monochrome and 26 November-December 2011 T he Sandra Day O'Connor U.S. Courthouse is hard to miss with a six-story wall of glass splendor. The courthouse's drum-shaped special proceedings court- CENTENNIAL SERIES Architectural Achievements M Masterpieces of style and design have graced Arizona's diverse landscape for the past 100 years | By Isabelle Novak aybe it's the yea r-rou nd beau t i f u l we at her, or perh aps t he diversity of the state itself. No matter the reason, Arizona has undeniably mastered architectural innovation and splendor. Over the past 100 years, buildings of every purpose and design have decorated city skylines and added artistic elements to the already magnificent desert. Achieving both visual superiority and sustainability, architectural achievements in Arizona range from remote chapels to huge office complexes. AZRE's Centennial Series celebrates the end of commemorating the past 100 years by honoring these truly remarkable accomplishments. BURTON BARR LIBRARY Architect: Bruder and DWL Architects Year: 1995 With 280,000 SF distributed over five levels, the Burton Barr Library is a grand sight. Unique architectural touches throughout the library are influenced by both nature and trends in global design. The building's shape is inspired by Monument Valley's scenic beauty, with a curving copper mesa split by a stainless steel canyon. A spacious atrium with nine skylights known as The Crystal Canyon allows for the flow of natural sunlight. Shade sails fashioned by sail makers in Maine and accents of bright blue Venetian plaster establish a one-of-a-kind feel for visitors. A "floating ceiling" suspended by cables over the Great Reading Room creates a special ambience that cannot be replicated. TALIESIN WEST LUHRS BUILDING Architect: Frank Lloyd Wright Year: 1937 Famous for his fusion of artistic beauty and practical functionality, Frank Lloyd Wright's Taliesin West is no exception. Originally designed as Wright's winter home, studio and architectural campus, Taliesin West is headquarters for the Frank Lloyd Wright Foundation. Located in northeast Scottsdale, it brings life and light to the foothills with an integration of indoor and outdoor spaces. Dramatic terraces, gardens and walkways overlooking the Sonoran Desert connect all parts of Taliesin West in a scenic fashion. A s the sun sets and nighttime approaches, its str uctures are lit from w ithin to produce a breathtakingly luminous effect. Architect: Trost & Trost Year: 1924 Located in Downtown Phoenix, the 10-story Luhrs Building was designed by the El Paso architectural firm Trost & Trost. Following its construction, the top four floors were reserved for the Arizona Club, including a dining room, lounges, bedrooms and other conveniences for members. It provided space for the Arizona Club until 1971. Floors below were leased as office space. The building is uniquely L-shaped and covered with brown brick on its exterior. Elaborate marble detailing decorates the uppermost two floors, and a heavy cornice sets off the top. The Luhrs Building continues to be one of Downtown Phoenix's most memorable buildings, and serves as a landmark for the city's past. 27 CHAPEL OF THE HOLY CROSS Architect: Anshen & Allen Year: 1956 This spiritual structure serves as a landmark not only in Sedona, but for all of Arizona. Marguerite Bruswig Staude was inspired to design a place of worship as thanks to her creator. After traveling to Europe with her husband in hope of finding the ideal place, she returned to the U.S. where Sedona's beauty overtook her. Perched on a twin pinnacle spur jutting out from a 1,000-foot wall of rock, the Chapel sits surrounded by red mountains. The Chapel has been maintained by the Diocese of Phoenix and St. John Vianney parish since 1969. FARMER STUDIOS THE ARIZONA BILTMORE Architect: Architekton Year: 2004 Architect: Albert Chase McArthur Year: 1929 Crowned "The Jewel of the Desert," the Arizona Biltmore is the sole existing hotel to have a Frank Lloyd Wright-influenced design. Upon its construction, the hotel represented luxury and extravagance. A geometric pattern in the building resembling a palm tree, fine furniture, carpets and murals are some of the Biltmore's defining amenities. Constant renovations and additions, including a 20,000 SF spa, have kept the hotel an oasis for celebrities, politicians and world travelers. It recently received the Urban Land Institute's "Heritage Award of Excellence" for architectural superiority as well as overall quality of service. Farmer Studios continuously proves to be the epitome of a sustainable building. The economical "flex" creates a pedestrian environment between Tempe and the Sunset/Riverside residential area. Every aspect of functionality was taken into consideration with the design. Retail, office and residential studios are all possibilities for this truly flexible space. With a "gravel pave" parking system to reduce the heat island effect, a sunken courtyard for rainwater retention and custom shade devices for sun protection, Farmer Studios is a prototypical example of modern sustainability. 28 November-December 2011 CENTENNIAL SERIES ARCOSANTI Architect: Paolo Soleri Year: 1970-present The experimental town of Arcosanti developed by Paolo Soleri combines architecture and ecology like never before through "arcology." This innovative project, some 70 miles north of Phoenix, demonstrates ways to improve an urban atmosphere while minimizing environmental damage. Arcosanti is both visually and scientifically impressive, projecting a practical yet unique way of living. Greenhouses in Arcosanti not only provide garden space, but also serve as solar collectors. Apartments, businesses, production, technology, open space and studios are all included in the town, offering a complex and creative environment for visitors. UNIVERSITY OF ARIZONA STEVIE ELLER DANCE THEATRE Architect: Gould Evans Year: 2003 Honored with a 2003 Citation Award from AIA Arizona, the Stevie Eller Dance Theatre is an architectural treasure in Tucson. This 28,600 SF complex on the University of Arizona campus boasts a 300-seat theatre, orchestra pit, an outdoor stage, fly tower and control suite, catwalks and indoor/outdoor lobby, as well as scene and costume shops. A unique glass box located on the second floor functions as a display window to the outdoor campus mall. Dancers' shadows are visible moving from the catwalk to the dance studio, portraying the importance of movement. PRAYER PAVILION OF LIGHT Architect: DeBartalo Architects Year: 2007 This tranquil chapel welcomes visitors from all over Phoenix. A true "place of light," the structure is a 2,500 SF glass box bordered by courtyards. Providing extensive views of the city, the chapel appears to glow brightly at night and can be seen from miles away. DeBartalo Architects intentionally isolated the building on a hill to create serenity. The zigzagging path leading to the pavilion is lined with tall steel plates, creating a unique tunnel effect. A reflection pool and enormous steel cross serve as defining features for the Prayer Pavilion of Light, making every visit one of visual superiority. Arizona's Most Comprehensive Annual Real Estate Awards PROJECT AWARD CATEGORIES � INDUSTRIAL � HEALTHCARE � MIXED-USE � MOST CHALLENGING � MULTI-FAMILY � EDUCATION � OFFICE � HOSPITALITY � RE-DEVELOPMENT � RETAIL � PUBLIC � SUSTAINABILITY � TENANT IMPROVEMENT PLUS � ARCHITECT OF THE YEAR � BROKER/BROKER TEAM OF THE YEAR � DEVELOPER OF THE YEAR � GENERAL CONTRACTOR OF THE YEAR FEBRUARY 2012 Judging encompasses all aspects of the projects including the design, purpose, economic impact and overall usability. Award recognition will be give to the project team defined as the developer, architect, general contractor and brokers. Projects must be completed by December 31, 2011 to be eligible for the Red Awards. Nominations Accepted November 1 - December 31 Visit azremagazine.com to download nomination forms For more information call 602-277-6045 or visit azremagazine.com 602-264-6835 www.cbiz.com Sponsored in part by 602-264 www.mh 29 BY MONICA AVILA 30 | November-December 2011 International Market Designs on th Orcutt|Winslow's Sahana Pride at Sion (left); SmithGroup's Toronto forensic facility (below). F A I A A R IZO N A MEMBERS ARE BRINGING THEIR S KILLS TO THE G L O B A L S TA G E rom Tucson to Phoenix, the rush and excitement of working internationally has hit Arizona architectural firms. With projects in a range of countries from China to France, AIA Arizona members are bursting upon the global scene and blazing a trail of innovation and expertise in a once untapped market. The following firms, with niche expertise and wide reaching diversification, are some of the ones to watch. � VISION AT ORCUTT|WINSLOW Vision and high-tec h presentat ion made the difference for architects at Orcutt|Winslow. Though they were able to make initial contact with investors in India, through personal contacts, Vispi Karanjia explains that it was their renderings and video that set them apart from their competitors. "When proposing this project we went over and above what the client was expecting and that is what gave us the success," Karanjia says. There are two reasons that Karanjia says he believes American companies, specifically Orcutt|Winslow, can be successful in countries such as India. One is vision and the ability to present that vision expertly. One visit to Orcutt|Winslow's website will allow you to see that vision in the stunning video that highlights the Sahana Pride at Sion project the firm currently is taking from vision to reality. This high-rise luxury residential building is currently in the works and will meet the needs of India's growing economy. The second reason Karanjia gives for success in the international market is the growing need for countries such as India, China and even Brazil. "As the people are exposed to a rise in disposable income and success they have a increased need and desire for a better lifestyle, better housing and infrastructure," Karanjia says. T h i s i s w he re compa n ie s s uc h a s Orcutt|Winslow can find opportunities. Karanjia explains that though Mumbai has a need for more building, sometimes it is difficult to find architects who are not generalized in India. "Our company offers expertise and specialization that is sometimes hard to find," he says. Which is what opens the door to the International arena. � BUILDING BRIDGES For Eddie Jones, principal, at Jones Studio, working internationally is more about getting "a much better perspective of what we all share." For his firm and its projects in China and on our own border with Mexico, the opportunity to work internationally is an opportunity to embrace a philosophy of respect for the "dignity of everyone." A major border project, the Mariposa Land Port of Entry, is an effort by Jones Studio to build a bridge in international commerce. An area of contention in Arizona and one that has a huge impact on both international relations and homeland security, the Mariposa Land Port of Entry is an international project that poses more challenges than most. Jones asserts that his studio endeavored to create a welcoming space that minimizes fear and apprehension. In an area that is surrounded by desolation, Jones Studio created a garden of respite. Jones Studio is committed to creating spaces that people can both live in efficiently and enjoy. The studio's dedication to opening communication lines across political boundaries is true to a global mindset. Something that is surely needed as the world becomes smaller and communication becomes pivotal to the future of the U.S. economy. � SCIENTIFIC EXPERTISE In the arenas of forensic science and laboratory research, the design team at SmithGroup is a leader in architectural innovation. International governments and universities alike seek the expertise of SmithGroup's Arizona office to design high quality research labs. "The international community looks to us as global experts in forensic and medical laboratory design," explains SmithGroup's Arizona leader, Mike Medici. In a stunning effort, SmithGroup designed the largest forensic science facility in the world in Toronto. International governments are beginning to look to emulate the forensic science standards found in the U.S. and SmithGroup is on the cutting edge of such design, poised to take the lead in this growing market. In addition to the forensic science laboratories, medical facilities and university research labs are at the top of SmithGroup's international projects list. At Pohang University of Science and Technology in South Korea, the firm is designing a digital research facility and the university's first science and tech lab for marine biology. www.owp.com www.jonesstudioinc.com www.smithgroup.com 31 BY MONICA AVILA Sharing Success espite tough economic times, there are innovative architectural firms and members of AIA Arizona that are thriving and pushing ahead in a shallow market pool. There are many reasons these firms are doing well, some of which may be surprising. AIA Arizona members thriving and forging ahead with diverse projects D � OPEN TO RISK AND FLEXIBILITY One thing most successful firms can agree upon is that being open to taking risks with both design and in diverse markets, is a major key to staying busy in a slow economy. Kim Fernandez of ABA-Architects details that, "you have to be a risk taker and push for the growth of the firm." Additionally, Eddie Jones of Jones Studio asserts that his firm's success comes from being open to new opportunities when they present themselves and successful firms a have a sort of "fearlessness," in accepting diverse projects. Andrew McCance of Andrew A McCance, Architect took the biggest risk when he went out on his own three years ago. "I started my company on my own three years ago and I am still here and working," he says. The risk takers in architecture seem to be those who are leading the way in success during this tough economy. In addition to taking risks, firms must be flexible with how they approach business. Those who are flexible are often able to maneuver into an optimal and timely position. Mike Medici of SmithGroup explains that one way his firm is staying successful 32 | November-December 2011 is by being at the right place in the market at the right time. Fernandez has also found that a need to tap markets her firm would not have gone to in the past is important. She asserts that firms really need to go for the work and expand their circle. ABA-Architects in Tucson has ventured to Arizona's neighbor, New Mexico, to find some success in the Southwest part of that state. The DLR Group is finding flexibility in staffing by being able to utilize its Arizona talent pool to balance with its national offices in a work share agreement. Tom O'Neil, principal at DLR Group says, "This way we can keep talented people and keep tax-paying employees in Arizona." This flexibility has proven lucrative for firms proving that flowing with the market can provide success even when that market is flowing a bit slower than the industry would like. � SUSTAINABILITY A major driving force in finding new business opportunities is sustainability. With the Architect 2030 initiative, which challenges the building community to reduce greenhouse gas emissions to zero by the year 2030, as a guide, many firms are striving toward green building practices as never before. "Sustainability is a driving force with government and university projects because they are looking at usable facilities for long stretches of time," Medici explains. "Thirty or 50 years into the future they want to still be able to utilize their space efficiently." SmithGroup's work with the University of Hawaii at Hilo proves this dedication with a design that integrates harmoniously with the surrounding landscape. Another design firm driven by the 2030 initiative is DLR Group. O'Neil explains that "energy modeling" is paramount in sustainability helping drive new business and cut costs for clients. Fernandez has also found that federal projects are one of the leading sources for her firm's project proposals. These projects require builders to use sustainable practices and track those practices clearly. Additionally, Henry Tom with Line and Space tells of how its work with the San Diego National Wildlife Preserve (above) pushes the team to hold to its role as a leader in "resource-conserving design." He explains that much of its work puts the firm in contact with environmentalists who are working to preserve those areas and want their architecture to do the same. The DLR Group's Arizona office is in the building stages of a "near NetZero" elementary school in Paradise Valley, which is utilizing not only less energy but is striving toward sustainability with rainwater collection initiatives and other innovative strategies. www.aia-arizona.org www.aba-architects.com www.andrewmccance.com www.dlrgroup.com www.jonesstudioinc.com www.lineandspace.com www.smithgroup.com T h a n k Yo u To Our Annual Corporate Sponsors For Their Cont inued Support! Visionary Sponsors Trendsetter Sponsors Steward Sponsors Advocating Responsible Development For information about sponsorship and membership opportunities, Call 602-266-7844 or e-mail email@example.com T 34 | November-December 2011 2 he American Institute of Architects Arizona Design Awards recognize excellence in design, planning, and construction of projects located anywhere in the world that are designed by AIA Arizona architects registered and licensed in Arizona. The Design Awards honor the highest standards of design in response to user requirements, site, context, climate, and environment. Each entry, regardless of size or classification, is judged individually on the basis of total design merit. Awards are given the categories of honor, merit, and citation (in order of importance). Certificates were presented to award-winning AIA Arizona members at the 2011 Celebrate Architecture Awards Presentation held Oct. 22 at the Phoenix Zoo. For descriptions of the winning projects, go to AZREmagazine.com. 2011 AIA ARIZONA DESIGN AWAR DS 1 1 � HONOR 1 2502 N. 1st Avenue Owner: repp design + construction Contractor: repp design + construction � HONOR 2 Whispering Hope Ranch Owner: Whispering Hope Ranch Foundation Architect: Studio Ma Contractor: The Weitz Company � MERIT 3 3 Arizona Science Center Owner: City of Phoenix Architect: Architekton Contractor: Brycon Construction � MERIT 4 Cedar Street Residence 2010 Owner: Matthew & Maria Salenger Architect: colab studio, llc Contractor: Build, Inc. � MERIT 5 4 Sunnyslope Sustainable Owner: Marlene Imirzian & Associates LLC, Architects Architect: Marlene Imirzian & Associates LLC, Architects Contractor: Marlene Imirzian & Associates LLC, Architects CONTINUED 5 35 MERIT 6 Diamond Head Mountain House Architect: Rob Paulus Architects Ltd. Construction Management: Rob Paulus Architects Ltd. CITATION 7 6 990 Offices Owner: Randi Dorman + Rob Paulus Architect: Rob Paulus Architects Ltd. Contractor: Mega Trend Construction CITATION 8 Nursing & Exercise Science Building at Mesa CC Owner: Maricopa County Community College District Architect: SmithGroup Contractor: McGough Construction 7 8 9 CITATION 9 Urban In-Fill Owner: Andy Byrnes, AIA Architect: the construction zone ltd Contractor: the construction zone ltd 36 | November-December 2011 CITATION 10 Rio Salado Audubon Center Owner: National Audubon Society/City of Phoenix Architect: Weddle Gilmore Contractor: Okland Construction CITATION 11 10 ASU College of Nursing and Health Innovation Phase 2 Owner: City of Phoenix Architect: SmithGroup Contractor: DPR Construction 11 37 EVENTS & SEMINARS AMA 2011 PERSPECTIVES AND PROJECTIONS CONFERENCE NOV. 10, 8 A.M.-1 P.M. PHOENIX CONVENTION CENTER: SOUTH BUILDING TRADE ORGANIZATIONS ABA Phx: 602-274-8222 Tuc: 520-881-7930 � www.azbuilders.org ACA 602-771-1100 � www.azcommerce.com ACA 602-246-8627 � www.azca.com Arizona Contractors Association Alliance of Construction Trades Associated General Contractors of America American Institute of Architects Arizona Multi-Housing Association Arizona Planning Association American Subcontractors Association of Arizona Arizona Association for Economic Development Arizona Commercial Real Estate Women Building Owners & Managers Association CoreNet Global Desert Mountain Downtown Phoenix Partnership East Valley Partnership Arizona Commerce Authority Arizona Builders' Alliance NAIOP NAIOP GOLF TOURNAMENT NOV. 17 TALKING STICK GOLF RESORT VP ASA HOLIDAY OPEN HOUSE DEC. 14, 4 P.M. 4105 N. 20TH ST., SUITE 230, PHOENIX FRIDAY MORNING BREAKFAST NOV. 18, DEC. 16, 7-9 A.M. PHOENIX COUNTRY CLUB ACT 520-624-3002 � www.actaz.net AGC 602-252-3926 � www.agc.org WEST ICSC RETAIL GREEN CONFERENCE AND TRADE EXPO NOV. 29-30 JW MARRIOTT DESERT RIDGE RESORT & SPA AIA 602-252-4200 � www.aia-arizona.org AMA 602-224-0135 � www.azama.org BEST OF THE WEST AWARDS NOV. 3, 5 P.M. RENAISSANCE GLENDALE HOTEL APA 602-866-7188 � www.azplanning.org ASA 602-274-8979 � www.asa-az.org AAED 602-240-2233 � www.aaed.com AZCREW www.arizonacrew.org OTHER LAI EMERGING TRENDS IN REAL ESTATE NOV. 18, 7:30 A.M. PHOENIX COUNTRY CLUB 2012 METRO PHOENIX LAND & HOUSING FORECAST NOV. 30, 3 P.M. SHERATON DOWNTOWN PHOENIX ARIZONA COMMERCE AUTHORITY BOARD MEETING DEC. 13, 10 A.M. 333 N. CENTRAL AVE., PHOENIX BOMA 602-200-3898 � www.bomaphoenix.org CORE 623-581-3597 � www.corenetdesertmtn.org DPP 602-254-8696 � www.coppersquare.com EVP 480-834-8335 � www.evp-az.org GPEC 602-256-7700 � www.gpec.org ICSC 646-728-3800 � www.icsc.org Greater Phoenix Economic Council International Council of Shopping Centers International Facility Management Association Institute Of Real Estate Management Lambda Alpha International Metropolitan Pima Alliance National Association of Industrial & Office Properties Phoenix Community Alliance AZRE IFMA www.ifmaphoenix.org PEOPLE TO KNOW NOV. 10, 5 P.M. SCOTTSDALE WATERFRONT IREM 602-253-1852 � www.iremphx.org LAI www.lai-phx.org MPA 520-878-8811 � www.mpaaz.org NAIOP 602-230-1645 � www.naiop-az.org PCA 602-254-7477 � www.phoenixcommunityalliance.com SMPS www.smpsarizona.org Society for Marketing Professional Services Tucson Regional Economic Opportunity Urban Land Institute Valley Forward TREO 866-600-0331 � www.treoaz.org ULI 480-449-7920 � www.arizona.uli.org VF 602-240-2408 � www.valleyforward.org I N COM M E RCIAL R E A L E S TAT E VP 602-266-7844 � www.valleypartnership.org WEST 623-435-0431 � www.westmarc.org WESTMARC Valley Partnership 38 | November-December 2011 NEWSMAKERS � Sundt Construction named David Crawford CEO and successor to Doug Pruitt, who retired in September after 45 years at the Arizona-based company. Crawford will oversee all Sundt offices, including locations in Phoenix and Tucson; San Antonio and El Paso; Reno; Crawford San Diego and Sacramento; Cary, N.C.; and Albuquerque. Crawford will also lead the company as it pursues new work -- inclusive of both new types of project work as well as work in new geographical markets. � Colliers International promoted Jeffrey Sherman and Trevor Koskovich to the position of associate vice president. Sherman and Koskovich specialize in the evaluation, marketing, acquisition and disposition of investment-grade, income-producing multi-family properties and portfolios ranging in size from 40 units to 300 units. They have extensive experience working with private capital buyers and sellers, lenders, commercial mortgage servicers and governmental entities. Luke Denmon and Scott German joined the CBRE Critical Environment Practice, which provides transaction services, project management and facilities management for date Krison centers and mission critical facilities. Krison's expertise is in office, flex-industrial and data center development; Denmon specializes in the acquisition of data center space; and German specializes in corporate client lease negotiations and corporate relocation. Dennis Firestone also joined the Assessment & Consulting Group. He will lead business development and provide client support. Chavez � Sally Chavez joined STG Design in Tucson as an interior designer. Chavez's experience includes renovations, additions and new construction for government, healthcare, educational and commercial clients. She previously was employed at AVIAR Commercial Space Planning and Design as a senior designer. � Jonathan Brohard joined Polsinelli Shughart's real estate department. Brohard most recently was as a senior officer of a real estate investment and management company with more than 135 properties and 240 employees across 22 states. � Adolfson & Peterson Construction appointed Kent Weicht CEO and Scott Weicht chief innovation and development officer. Kent will be responsible for the day-to-day operations throughout the country. Scott will oversee innovation, growth, market expansion and emerging business opportunities. � Omni International added Ted Kuziela and Paul Stephens to its Phoenix office. Kuziela's focus is the Southeast Valley in land and industrial sales or lease. Stephens is working with REITs, investors, owners and tenants to reposition and stabilize existing distressed and underperforming properties. � Geoffrey Waldrom joined Grubb & Ellis as vice president, Office Group. Waldrom has primarily specialized in office tenant representation. He joins the company from Strategic Commercial Realty, a company he owned and operated for the past seven years. � Longtime bank executive Katherine Brandon joined Sunrise Bank of Arizona as senior vice president and commercial banking group manager. � The Plaza Companies added Cyndi Freeland and Patti Perkins to its property management team. Freeland was promoted to property manager and Perkins was promoted to assistant property manager. � Mark Krison, � Paul Bonavia, president and CEO of UniSource Energy Corp. and Tucson Electric Power was named TREO's chairman of the board for 2011-12. Steve Eggen, CFO of Raytheon Missile Systems was named vice chair and Dan Alcombright, president and CEO of SOLON Corporation NA was named secretary/treasurer. Michael Crow (ASU), Judy Rich (Tucson Medical Center) and Eugene Sander (UA) were named to the Chairman's Circle. Nelson joined Voit Real Estate Services' Phoenix office where they will specialize in the disposition, acquisition, leasing Nelson Nelson and development of office properties for investors, owner/users and financial institutions. Both are founding members of Nelson A ssociates Commercial Properties. � Troy and Scott Freeland Perkins In Memoriam � Daniel Pollack, 31, was struck and killed by a hit-and-run driver early in the morning on Sept. 11 in Scottsdale, near Hayden and Thomas roads. He served as vice president and designated broker for the Arizona office of Michael A. Pollack International Management Inc., the company founded by his father, Michael Pollack. � Bernie Velez, 78, died of a heart attack on July 25. He was president of Velez Construction and was the general contractor responsible for building the new Irish Cultural Center Library at 1106 N. Central Ave., Phoenix. 39 � McCarthy Building Companies promoted Justin Kelton to vice president of operations for the Education Services business unit of the Southwest Division. Kelton will oversee all the field operations as well as work with the business development team. Kelton previously served as a project director at McCarthy. AFTER HOURS Susan Davenport Knowing more about the people we work with is the fun side of the business. It helps start conversations and strengthens business relationships. To nominate a colleague, request an After Hours form from Peter Madrid, firstname.lastname@example.org. PHOTOGRAPHY BY BRIAN FISKE � Project Director, Alternative Energy and Federal Markets Kitchell � Born in Lakewood, Colo. � Attended Univ. of Kansas, bachelor's degree in biology � With Kitchell for eight years in its Phoenix office To identify and develop new business opportunities and manage client relationships in the alternative energy and federal markets. SPORTS TEAMS: Kansas Jayhawks, Kansas City Chiefs, San Francisco Giants, San Jose Sharks, Boston Celtics, Team Radio Shack and New Zealand All Blacks. ACTIVITIES: Riding my road bike, hiking, writing, and hanging out in, on or around water. DESTINATIONS: Favorites include Croatia, Greece, Italy, New Zealand and Australia. In three years I've raised nearly $65,000 for the Lance Armstrong Foundation and American Cancer Society on behalf of cancer fighters everywhere. I'm a three-time cancer survivor. Responsibilities Favorites Accomplishments What would people be surprised to know about you? Advice RECEIVED: If you don't make your clients feel like No. 1, somebody else will. Don't give them the opportunity to try. TO SHARE: Treat every day like it's your first day of work. There's a reason that you were drawn to his business. Don't lose sight of it. 40 | November-December 2011 BUILDING OWNERS AND MANAGERS ASSOCIATION A Supplement to AZRE November/December 2011 INSIDE Tools to succeed: 3 major initiatives 44 TOBY Awards 2011 48 Mentors aiding young professionals 54 MEDICAL BUILDING McAuley Medical Office (Category winner, above) OWNED BY LaSalle Investment Manager MANAGED BY Margaret Foster, Senior Real Estate Manager, CBRE Suburban Office Park Low-Rise Target Financial Services Tempe BOMA BY MELISSA BORDOW TO O LS TRADE BOMA HAMMERS HOME A TRIO OF INITIATIVES: BETTER SMART MANAGEMENT ADVOCACY SUSTAINABILITY PRACTICES OF THE t's still a jungle out there. Commercial vacancy rates remain high, industry figures show, with some improvement in the industrial sector and a slight downtick in retail. But rates for office properties seem stuck at a persistent 26 percent. Additionally, average asking rental rates per square foot in all categories are still way down from their pre-recession highs. In these uncertain times, property professionals can turn to BOMA Greater Phoenix to get the tools they need to operate in an economy that is only slowly emerging from recession. "You need to know you're doing the right things with your limited resources," says Susan Engstrom, a senior real estate manager with ACP Property Services, LLC and a BOMA member since 1995. A professional association such as BOMA has tremendous intrinsic value for those who tap into its extensive network of property professionals, Engstrom says. These are the people who can help you with either the small, incremental changes that 44 | November-December 2011 I make a difference in your bottom line or the big legislative policy changes that can have a multi-million dollar impact on the local commercial real estate market. BOMA OF GREATER PHOENIX HAS MAJOR INITIATIVES UNDERWAY IN THESE IMPORTANT AREAS: � ADVOCACY BOMA is a voice for the needs of the commercial property management industry, creating channels of communication with federal, state, and local lawmakers, say Engstrom, who is co-chair of the Government Affairs and Community Awareness Committee. Last legislative session, Engstrom says members encouraged state lawmakers to pass Senate Bill 1001, the jobs incentive package that included a provision to reduce commercial property tax assessment ratio from 20 percent to 18 percent over four years starting in 2013. This April, during BOMA Phoenix's annual Advocacy Day, 14 people from the chapter converged on the capitol to thank legislators who voted for the package and discuss other issues that may impact commercial real estate, says Janice Santiesteban, a member BOMA of the Government Affairs and Community Awareness Committee. In her first two years on the committee, Santiesteban says she participated as a member of the group, but after being mentored by committee members was able to lead discussions, including one with Congressman Ben Quayle (R-Az). They asked Quayle to co-sponsor legislation to permanently reduce the timeline for depreciating leasehold improvements to 15 years and legislation to promote energy efficiency retrofits to commercial buildings through voluntary incentive programs. BOMA's advocacy has not only helped her advance the causes of the commercial real estate industry, she said it has helped her improve her professional footing. "It's the ability to have such a wide range of people to draw off of for knowledge," says Santiesteban, a real estate manager for CB Richard Ellis. "For me, it's important to be able to have that knowledge and say to my owner, `This is what I'm doing for you.' I don't think I would be able to do my job the way I do if I didn't have BOMA." This year committee members are making an effort to contact U.S. Congressmen and Senators during the week each month they are in their home districts. "It makes them aware of who BOMA is and what we stand for," Engstrom says. "And we let them know, if there are any issues that come before them that impact the commercial real estate industry, give us a call." "How can you manage what you don't measure?" Munn asks. BOMA Phoenix awards property and facility managers who rate the highest in each of nine categories and those who show the most improvement from one year to the next. Kilowatt Krackdown is one step in aligning the chapter with BOMA International's 7-Point Challenge: to decrease energy consumption in commercial buildings by 30 percent by 2012. To date, 400 properties have joined the program. BOMA Phoenix offers free training sessions to property professionals four times a year, with Arizona Public Service and Salt River Project each sponsoring two sessions. They walk participants through Portfolio Manager software, Munn says, and reassure participants that all data is held in strict confidence and never released to a third-party. Munn says often participants don't have to make big capital investments in their properties to make them more efficient. Sometimes, something as simple as raising awareness and making behavior changes can make a big difference to a bottom line. � BETTER MANAGEMENT PRACTICES BOMA Phoenix has programs designed to encourage better management practices, and Engstrom says the BOMA 360 Performance Program is a promising one. The BOMA 360 program evaluates six major areas of building operations and management and measures a building's performance against industry standards. Participants must apply and have four prerequisites in place, including having a standard operating procedures manual, a formal maintenance program and benchmarking via the Energy Star system. T he BOM A 360 designation not only improves a building's operations, it's a good way for a building to stand out and be more attractive to tenants. www.bomaphoenix.org � SMART SUSTAINABILITY In these economic times, it is important for building owners and managers to decrease energy and water consumption -- and thereby boost their bottom lines. BOMA Phoenix's Green Building Committee provides opportunities for property professionals to save energy, recycle waste and use green products and services. One tool is the Kilowatt Krackdown program, a citywide competition open to non-members that steers owners and managers to the U.S. Department of Energy's Energy Star benchmarking software. Dave Munn, chief technical officer at Chelsea Group, Ltd., and chair of the committee, says benchmarking is a good way for building managers or engineers to track and assess energy and water consumption, with the aim of improving efficiencies. 45 K AR ING P :1000 The sky may be the limit, but the available parking is out of this world. 4605, 4615 & 4635 E. Elwood Street Phoenix, Arizona 85040 4615 TOWER 4605 TOWER 4635 TOWER Charles Miscio +1 602 222 5192 Greg McMillan +1 602 222 5181 SHT_AZRE.indd 1 10/17/2011 3:45:21 PM 46 | November-December 2011 f you build it, they will come. But what happens one year later? Ten years later? It's easy to start something amazing, but it's hard to make it last. That's where the construction experts at Hernandez Companies come in. Now in its second generation of family ownership, Hernandez Companies dominates the field of Project Management and Facilities Maintenance. Their award-winning services include painting, finishing, plumbing, electrical, carpentry, millwork, metalwork and repairs. The company began in 1975, and its handiwork is visible Valley wide. Some of the region's largest, most high-profile landmarks have hired Hernandez Companies to keep their facilities shining for future generations. Have you seen how crisp University of Phoenix Stadium looks these days? Have you noticed how charming those original fixtures look at the historic Tovrea Castle? These are just a few of the company's successful projects, along with Sky Harbor International Airport, Burton Barr Library, Tempe Diablo Stadium, the Phoenix Children's Museum and more. One of the company's specialties is conducting renovations at key institutions without interfering with the people that use them. For I Hernandez Companies proudly brings sparkle to many Valley landmarks select Bank of America branches, the company installed new infrastructure and the latest security countermeasures while working outside of normal business hours to prevent customer interference. But making old buildings new again isn't the company's only skill. At the new Phoenix Convention Center, Hernandez Companies installed drainage systems, plumbing fixtures and other key elements under stringent LEED standards to make this 900,000 SF project more environmentally friendly. Today, it's an urban gem in a desert oasis, and local officials have touted its attraction for tourism and recreation. Hernandez Companies has also garnered awards from local business entities. In 2011 it was in the top 10 among Ranking Arizona's Contractors: Electrical (119 staff or fewer); No. 18 on the Phoenix Business Journal's 2011 Book of Lists ranking for Minority-Owned Businesses, and was among the Top 15 Hispanic businesses in Arizona, according to HispanicBusiness.com. In January, the Phoenix Business Journal named Hernandez Companies one of the top electrical contractors in the Valley. So take pride in your next project with help from Hernandez Companies. We make buildings better. Hernandez Companies ranks among the best. Awards and media accolades aside, just ask our clients. Our expert touch can be seen at local icons such as Tovrea Castle and Phoenix Convention Center. Hernandez Companies' professional technicians can tackle your next project and turn your building's frown upside down. Give us a call today for tomorrow's next project and we'll prove it. Celebrating 35 Years of Making Buildings Better. hernandezcompanies.com | 602.438.7825 Boma AD AZRE.indd 1 10/14/11 7:45 PM BOMA UNDER 100,000 SF Mesquite Corporate Center OWNED BY Mesquite Partners I, LLC, A Division Of DPC Development MANAGED BY Marie Dunn, RPA, Real Estate Manager, CBRE 2 0 11 THIS YEAR'S BOMA GREATER PHOENIX TOBY AWARDS WERE PRESENTED SEPT. 9 AT THE WYNDHAM PHOENIX DOWNTOWN. AZRE MAGAZINE WOULD LIKE TO CONGRATULATE THE 10 WINNERS. On the BOMA cover: McAuley Medical Office, winner of 2011 TOBY in Medical Building category 48 | November-December 2011 BOMA 100,000-249,999 SF US Airways Headquarters OWNED BY US Airways Inc. MANAGED BY Darwyn Harp, General Property Manager, Hines 250,000-499,999 SF 24th @ Camelback OWNED BY Gll Properties Fund I, LP MANAGED BY John Orsak, Property Manager, Hines Interests Limited Partnership CORPORATE FACILITY Jeffrey D. McClelland Flight Center OWNED BY US Airways Inc. MANAGED BY Darwyn Harp, General Property Manager, Hines 49 BOMA RENOVATED Scottsdale Financial Center OWNED BY BPG Properties Limited MANAGED BY Jackie Baumgarten, Real Estate Manager, CBRE 500,000-1 MSF One & Two Renaissance OWNED BY Hines U.S. Core Office Fund, L.P. MANAGED BY William Fehmer, GPM and Monica Greenman, PM, RPA, Designated Broker, Hines GS 50 | November-December 2011 FASTER FORWARD Putting the pedal to the metal. Some show up just to rev their engine. We're focused on pulling ahead as the first true alternative to real-estate-as-usual. We've put the pedal to the metal to help our clients race forward with investments in new markets, top talent, and a unified global brand in more than 500 offices in 61 countries worldwide. We've got the inside track on service to accelerate your success. Phoenix +1 602 222 5000 | Scottsdale +1 480 596 9000 | www.colliers.com BOMA IM AZRE � MarApr 0211A 2/3/2011 HVAC . Sheet Metal Plumbing . 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Whenever one of our OSHA 30 certified service technicians works on one of your panels, switchgear or motor starter / VFD, a preliminary IR scan will be performed. After our work is complete, we will again perform an IR scan to ensure that all repairs / installations are proper and at-spec, all at no additional charge. Keep your buildings healthy. BUILDING AMBULANCE COmmERCIAL s HEALTHCARE s AVIATION s INDuSTRIAL EDuCATION s RETAIL s muNICIPAL s HOSPITALITy TECHNOLOgy s SuSTAINABLE ENERgy s DATACENTERS When you have a medical emergency, you call an ambulance. When you have an electrical systems emergency, you call D.P. Electric, Inc. Night or day, we'll be there. Depend on D.P. Electric. DP Electric, Inc. 6002 S. Ash Avenue Tempe, AZ 85283 480.858.9070 p 480.858.9067 f www.dpelectric.com ROC #111176, ROC#111170 Quality you can depend on... Since 1990. 52AZRE People To Know - Ambulance 01.indd | November-December 2011 1 9/25/2009 1:02:50 PM BOMA SUBURBAN OFFICE PARK LOW-RISE Target Financial Services Tempe OWNED BY Target MANAGED BY Cina Brady, CRE Building Operations Manager, Target INDUSTRIAL OFFICE PARK Goodyear Commerce Center OWNED BY Hanover Goodyear LLC MANAGED BY Christine L. Manola, RPA, CPM, CCIM, LEED AP, NorthMarq Real Estate Services, LLC EARTH USAA Phoenix Campus OWNED BY USAA MANAGED BY Kip Linse, CCIM, RPA, CPM; Executive Director Real Estate Services, USAA 53 BOMA MENTORING UP BOMA'S YOUNG PROFESSIONALS REAPING BENEFITS OF LEARNING FROM ESTABLISHED INDUSTRY LEADERS BY MELISSA BORDOW he young professionals of BOMA Greater Phoenix knew that the seasoned veterans they met at the or g a n i z at ion's events were a wealth of information. Some had 20 or more years experience in property management and had weathered their share of mistakes and industry ups and downs. So how could young members tap into that brain trust? They appreciated the peer mentoring available through BOMA's special events and conferences, but they wanted more. Like good problem-solving professionals, they came up with an answer: a formal mentoring program -- Mentor Society of BOMA Greater Phoenix. Since its inception in August, the Mentor Society has served as a way for people at the front-end of their careers to glean information, knowledge and wisdom from seasoned professionals in a personal, one-on-one setting. "These are people who have been in the industry for 10, 20, 30 years and they have all this knowledge," says Jamie Strecker, a property manager with FM Solutions and a member of BOMA Phoenix Young Professionals Group (YPG). "They're what we're calling our `elite.' " Mentors who agree to be in the program are listed on the BOMA website, as are asso54 | November-December 2011 ciate members -- vendors who have worked in fields that serve or are affiliated with property management. The program is self-managed, Strecker says, which means young professionals can contact a mentor on their own initiative by going to the BOMA website and clicking on a mentors' biography and contact information. They are then free to contact that person to set up a 30-minute interview. Mentors must have at least five years experience in the commercial real estate industry, be a current member of BOMA, and have served on three or more committees or have sponsored five or more events. Mentors agree to be an active participant by providing insight into the industry, to maintain confidentiality and professionalism, and to respond to a request within 24 hours. The goal of the program is to increase knowledge among young professional members of BOMA and to help the next generation of professionals feel vested in their fields and in the BOMA organization, says Colleen LeBlanc, a general manager with Universal Protection Services and an associate member of the YPG. BOMA is all about building relationships, she says, and this is a great way to do that and strengthen the organization's base. It's also a good way to get your business in front of key players in the field. YPG member Mike Amico says he was eager to speak with mentor Tom Pritscher, an associate member mentor who is a commercial general contractor with ties to the facilities management profession since 1993. Pritscher, Amico says, always seemed to draw a crowd at BOMA functions, so when he called him to "pick his brain" about how to develop network contacts and how to best take advantage of his BOMA ties, he knew Pritscher would have sound advice. "It turned into a very good conversation," says Amico, who is an insurance agent at Bennett & Porter Insurance Services, where he specializes in commercial property. "I felt like it was a very valuable use of my time. I asked Tom for 30 minutes and he gave me an hour." Pritscher, president of TEPCON Construction, Inc. in Tempe, says he was honored to be included as a mentor, and says he sees the value in passing down experience and knowledge. The Mentor Society is also a great way to take networking to a higher level. "Even if you didn't learn anything, you walk out of there knowing someone you didn't know before," he says. "But for people to share their experience with you at no cost is tremendous." He says, only half joking, "I'm thinking I may want to talk to a property manager -- really, you can never stop learning." www.bomaphoenix.org � 2011 CB Richard Ellis, Inc. It took more than shutting drafty windows. Our asset services specialists work to identify your every on-site efficiency, optimizing asset performance, increasing productivity, and saving you money. #1 IN REAL ESTATE SERVICES WORLDWIDE 602.735.5555 cbre.com/phoenix DISTRIBUTION CENTERS BUILD-TO-SUITS FOREIGN TRADE ZONES ROCKEFELLER GROUP DEVELOPMENT CORPORATION IS PLEASED TO BE REPRESENTED ON ITS CURRENT DEVELOPMENTS IN ARIZONA BY THE FOLLOWING BROKERS: In Chandler and Gilbert Colliers International 2390 E. Camelback Road Suite 100 Phoenix, AZ 85016 602-222-5000 tel. colliers.com/phoenix Phil Breidenbach, SIOR Paul Sieczkowski, SIOR Rob Martensen, CCIM, SIOR Lindsey Carlson Steve Larsen In Tucson PICOR 1100 N. Wilmot Street Suite 200 Tucson, AZ 85712 520-748-7100 tel. www.picor.com Peter Douglas, SIOR Rob Glaser, CCIM, SIOR For information regarding current Rockefeller Group Development Corporation projects, please contact: Tom McCormick, SIOR, FRICS Senior Vice President and Regional Development Officer Mark Singerman, LEED� AP Assistant Vice President and Regional Director - Arizona RGDC-CA@rockgrp.com RGDC-AZ@rockgrp.com rockgroupdevelopment.com OUR CLIENTS INCLUDE: BMW OF NORTH AMERICA LUCENT TECHNOLOGIES DELTA AIRLINES UNILEVER COSMETICS INTERNATIONAL S E I K O CORPORATION OF AMERICA CRATE AND BARREL TIAA-CREF MORGAN STANLEY PEARSON E D U C AT I O N NOVARTIS AT&T Chandler MCGRAW-HILL Corporate COMPANIES TIME INC. TEJON RANCH Center* SPORTCRAFT F E D E McClintock and R E S S RAL EXP Desert Breeze Blvd. WYNDHAM GARDEN HOTELS Chandler LEHMAN BROTHERS BMW OF NORTH AMERICA LUCENT TECHNOLOGIES Rockefeller Group DELTA AIRLINES UNILEVER Chandler Crossroads COSMETICS INTERNATIONAL Gilbert and Queen Creek Roads S E I K O CORPORATION OF Chandler AMERICA CRATE AND BARREL TIAA-CREF MORGAN Rockefeller P E A R S O N Group STANLEY Chandler NOVARTIS E D U C A T I O N 101 AT&T 101 at Chandler Blvd. MCGRAW-HILL Loop COMPANIES TIME INC. 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TEJON COMPANIES TIMEGroup Distribution SPORTCRAFT Center** RANCH F E D E R A L Submarket E S S EXPR Airport WYNDHAM Tucson GARDEN HOTELS LEHMAN BROTHERS BMW OF NEW CLASS A OFFICE *70,500 SF NORTH AMERICA LUCENT LEED�CERTIFIED SILVER AVAILABLE; TECHNOLOGIES DELTA TO 101,800 SF NEW HIGH **UP AIRLINES UNILEVER COSMETICS INTERNATIONAL CUBE WAREHOUSE AVAILABLE S E I K O CORPORATION OF AMERICA Group Distribution CRATE AND Rockefeller BARREL TIAA-CREFPlace in the Center has won First MORGAN STANLEY CategoryP E the AZREN Industrial of A R S O E D U C 2010 Red Awards. AT I O N NOVARTIS AT&T MCGRAW-HILL COMPANIES TIME INC. TEJON RANCH SPORTCRAFT FEDERAL EXPRESS WYNDHAM GARDEN HOTELS LEHMAN BROTHERS BMW OF NORTH AMERICA LUCENT TECHNOLOGIES DELTA AIRLINES UNILEVER COSMETICS INTERNATIONAL S E I K O CORPORATION OF AMERICA CRATE AND BARREL TIAA-CREF MORGAN STANLEY PEARSON E D U C AT I O N NOVARTIS AT&T MCGRAW-HILL COMPANIES TIME INC. TEJON RANCH SPORTCRAFT FEDERAL EXPRESS WYNDHAM GARDEN HOTELS