TRENDSETTERS
Leasing to medical marijuana dispensaries What happens when a tenant’s business is viewed by some as illicit or illegal? Although Arizona state law permits the sale of medical marijuana through licensed dispensaries, it is still prohibited by federal law, which creates potential issues for landlords that lease to dispensaries. “Should a tenant’s business become illegal,” says Bruce May, chair of Jennings, Strouss & Salmon’s real estate department, “the tenant will be released from its future obligations under prevailing judicial doctrines.” However, the lease should obligate the tenant to reimburse the landlord for rent, tenant allowances, broker commissions and other costs. He says the following preliminary steps should be taken before signing the lease: • The landlord should ensure the use is permitted by zoning, building and safety ordinances. Bruce May • The lease should require the tenant to do its own due diligence and assume any risk, but the landlord should confirm with its lender what’s acceptable and prohibited. • There should be an obligation by the tenant to construct its improvements and conduct its operations in accordance with applicable law with a right of review and inspection by the landlord. • Upon termination of the lease, the tenant must be obligated to remove all of its product from the premises.
New campus planning concept fosters live, work, play environment Earlier this year, Arizona State University began construction on a $72 million Greek Leadership Village that will total 296,438 square feet with five residence buildings comprised of 27 connected chapter houses. The threeand four-story townhomes inlcude 950 total beds. Unlike other campus planning projects, the Greek Village in Tempe trades extensive semi-private yards for greater shared space to enhance inclusiveness and community building for all Greek chapters and their constituent members through a live/ work/play environment.
IMAGE COURTESY, DWL ARCHITECTS
Skyline GROWS in Downtown Phoenix Arizona Center, Phoenix’s original downtown entertainment destination, will add a $100 million residential tower on the southeast corner at Fifth and Van Buren streets. The planned 31-story tower will be the second tallest residential building in Downtown Phoenix. Rising 25 stories above the swimming pool terrace on the roof of the six-level parking garage, will be 350 residences with eight different floor plans ranging from modest studios to one, two and three bedroom units. The 39,970-square foot parcel is under contract to be purchased by Floridabased North American Development Group (NADG) for an undisclosed amount. The architects named for the residential tower project are Phoenix-based Will Bruder Architects. New York-based Skanska USA is managing construction for the project. 8 | July-August 2017
After students proposed the idea, Phoenix-based Studio Ma conducted a long-range feasibility study for ASU to provide initial direction for the project. The firm’s Founding Principal Christiana Moss, AIA, says, “This approach promotes variety and diversity among the councils, while housing daily activities including dining, socializing and daily rituals in clubhouse-like common dressing and bathing rooms.” She is optimistic the idea will catch on at other college campuses based on the project’s initial feasibility study that concluded universities nationwide can benefit by “synthesizing the varied needs and aspirations from the Greek student community.” The project’s completion date is set for fall 2018.