MARCH-APRIL 2019
2019
RED AWARDS
INSIDE:
Indian Country Construction p. 24 | West Valley Update p. 28
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Winners are plentiful in current economy
W
e’ve been in a cycle of continued economic growth in Arizona and most of the experts expect that upward growth to continue through 2019. All throughout the Arizona commercial real estate industry, companies are thriving, buildings are rising and spirits are high. Everyone feels like they are winning, and they should because profits are strong and work is plentiful. This edition features our annual Real Estate & Development (RED) Awards, which highlight the top projects completed in 2018. We received almost 100 project nominations for this year’s RED Awards and it was no simple, easy task selecting finalists and naming the winners. A selection committee looked at various details of the projects, and made the choices based on the overall impact — economic, aesthetic, philanthropic or otherwise — each project made in their community and our economy. All of the projects were worthy of being finalists, but we couldn’t pick them all. While the RED Awards dominate this edition, other topics we touch upon cannot be overlooked. We examine what is happening in the West Valley city of Goodyear, where industrial development is strong and the city is a top destination for new data center developments. Also, we check in on the latest and greatest entertainment development on the Salt River Pima Maricopa Indian Community. The Great Wolf Lodge Arizona is in the final stretch of construction and the community can’t wait to enjoy the indoor water park that this destination resort is building. We also take a look at the long, winding, legal road that led Crown Realty & Development to owning 96.5 acres of prime real estate and having master developer rights in the highly-sought-after Desert Ridge development in north Phoenix. It’s been an eventful start to 2019 and there are no signs things are going to slow down anytime soon.
President and CEO: Michael Atkinson Vice president of operations: Audrey Webb EDITORIAL Editor in chief: Michael Gossie Associate editors: Steve Burks | Alyssa Tufts Interns: Erin Brassey | Alexa Buechler Contributing writers: Alison Bailin Batz | Eric W. Emmert Sara Fluery | Joyce C. Grossman | Deb Sydenham ART Art director: Mike Mertes Design director: Bruce Andersen MARKETING/EVENTS Marketing & events manager: Cristal Rodriguez Marketing specialist: Gloria Del Grosso Marketing designer: Patrick Griffin OFFICE Special projects manager: Sara Fregapane Executive assistant: Briana Villa Database solutions manager: Amanda Bruno AZRE | ARIZONA COMMERCIAL REAL ESTATE Director of sales: Ann McSherry AZ BUSINESS MAGAZINE Senior account manager: David Harken Account managers: April Rice | Kim Bailey AZ BUSINESS ANGELS AZ BUSINESS LEADERS Director of sales: Sheri Brown HOME & DESIGN EXPERIENCE ARIZONA | PLAY BALL Director of sales: Donna Roberts RANKING ARIZONA Director of sales: Sheri King
Steve Burks Associate editor, AZRE steve.burks@azbigmedia.com
2 | March-April 2019
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. ©2019 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.
CONTENTS
FEATURES 2 Editor’s Letter 6 Trendsetters 10 Executive Profile 12 After Hours 14 New to Market 16 Big Deals
20 Legislative Update
35
22 Hospitality
24 Indian Country 28 West Valley Update
35 RED Awards
14
24
On the cover:
Union Tempe, a mixed-use, high-rise infill development in Downtown Tempe 4 | March-April 2019
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28
ARIZONA’S COMMERCIAL REAL ESTATE
MID-YEAR UPDATE & FORECAST
Save the Date! August 1, 2019 AZRE magazine will host a panel of Arizona’s top commercial real estate experts, yielding in-depth discussions of economics, development and state of the industry. Highlights include market analysis, all-star broker panels, networking and a cocktail reception.
2019 Invited Panelists
Paul Komadina Laurel Lewis NAI Horizon CBRE
Mike Garlick NKF
Ryan Sarbinoff Sandra Watson Jackob Marcus & Arizona Andersen Millichap Commerce Saint Holdings Authority
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TRENDSETTERS
APARTMENT IMPACT Elliott D. Pollack & Company produced its Arizona Apartment Analysis report for the Arizona Multihousing Association and found some conflicting news for the market in Arizona. On the positive side, the report cited that the apartment industry generates 22,000 jobs, $699 million in wages, and $3.8 billion in economic output each year, as 37 percent of Arizona residents live in rental housing. That annual economic impact is equivalent to the state hosting more than 10 Super Bowls each year. Other growth statistics in the report were: The number of apartment permits has been increasing since 2012 and demand has grown steadily each year. In both 2016 and 2017, more than 10,000 units were permitted. Also, rents in Metro Phoenix rose from an average of $908 in Q4 of 2017 to $938 in Q2 of 2018 and those rates are expected to continue to rise. The report also pointed out the need for more affordable, workforce housing for those households earning $25,000 to $75,000 a year, which represents 48 percent of the market. In Arizona, 32 percent of households pay more than 30 percent of their income for housing expenses. The term for this is “being cost burdened,” the report states. Of those cost‐burdened, nearly 351,000 households are considered “severely cost burdened,” households that spend 50 percent or more of their income on housing costs. For the complete report, visit azmultihousing.org.
22,000 JOBS
$69 MILLION IN WAGES
$3.8
BILLION IN ECONOMIC OUTPUT
20 YEARS of helping kids
The time has come again for the Scottsdale Active 20-30 Club to host its annual charity sporting event, the Brokers for Kids and Agents Benefiting Children annual Olympiad, on April 5 at Scottsdale Stadium. Commercial and residential real estate teams will compete to raise money for Arizona based children’s charities. With Brokers for Kids celebrating their 20th anniversary, participants and organizers are aiming to raise more than last year’s total of $457,000. This is the culminating event after a year of commercial and residential real estate teams raising money through various fundraisers. The two teams that raise the most money will receive a coveted prize at the event. This year all of the fundraising efforts will go towards helping two charities, Boys Hope Girls Hope and the Care Fund. Boys Hope Girls Hope is a non-profit that is celebrating its 30th anniversary in 2019. Boys Hope Girls Hope provides scholarships for underprivileged youth, so they can receive the college education they want but aren’t able to pay for. The Care Fund provides housing expense relief and resources for families during a child’s extended health crisis. To learn more about the event’s host, Scottsdale Active 20-30 Club, visit scottsdale2030.org.
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years of metal magic Magnum Companies, a Phoenix-based designer, fabricator, and installer of metal components, is celebrating 40 years of crafting iconic masterpieces in Arizona and across the U.S. Magnum was formed in 1979 when its founder, Glenn Brockman, an engineer with General Electric, started building weight-lifting equipment. From that humble beginning, Magnum now has 65 full-time employees, a 32,000 SF manufacturing building at 2439 S. 49th Ave., in Phoenix, and a 16,000 post-production building within close proximity. Drive around the Valley and Magnum installations stand out. They include Impulsion, the stainless-steel horse by Arizona artist Jeff Zischke at the entrance to WestWorld in Scottsdale; Shadow Play, a series of sculptures along Roosevelt Row in Downtown Phoenix; and a major renovation of the Royal Palms Resort & Spa in the 1990s. Magnum won four Gold Awards at the 2018 Ernest Wiemann Top Job Competition for outstanding craftsmanship sponsored by the National Ornamental & Miscellaneous Metals Association (NOMMA). The awards were presented at NOMMA’s 60th-anniversary dinner in Phoenix.
INDUSTRIAL numbers stand out The positive momentum continued in the industrial sector in the Greater Phoenix market as 2018 came to a close, according to Kidder Matthews in its 4Q 2018 Industrial Report. Vacancy and availability rates hovered at record lows and asking rental rates at a new all-time high of $0.59 per square foot. The market-wide total for new construction also soared to a decade-high in 2018, totaling approximately 7.9 million square feet.
Some other significant figures for 2018: ■ Vacancy rates closed at 7.7%, up slightly from 2017’s record low rate of 7.5%, even in the face of decadehigh new construction totals. ■ Positive net absorption for the year was 7.5 million square feet. ■ Manufacturing and warehouse properties accounted for 4.9 million square feet of absorption. ■ Sales transactions totaled 22.6 million SF, almost double the 13 million SF in 2017. ■ Nearly $2 billion worth of industrial assets were traded in 2018, a record high, while pricing climbed to an all-time high of $100 per square foot. CrossHarbor Capital Partners, LLC., purchased the fully-leased, 1 million square foot Amazon distribution facility in Tolleson for $98.3 million, the largest industrial transaction of 2018.)
Shaping NAIOP’s future Pat Boyle, a Director at Cushman & Wakefield, is the 2019 Chairman for the NAIOP Arizona Developing Leaders (DL) program, which serves commercial real estate professionals age 35 and under. Boyle, an active DL member since 2012, began his career at CBRE in 2011 as a researcher. At Pat Boyle Cushman & Wakefield, he focuses on agency leasing for institutional office properties. “I am looking forward to the year ahead with the Developing Leaders,” Boyle said. “We have a great group of people, and it will be a total team effort in 2019.” In 2019, the Developing Leaders will continue to refine the Young Professionals Group (YPG) mentorship program. It will also launch the inaugural NAIOP Arizona Connections program and host a full slate of networking and philanthropic events. All NAIOP members who are age 35 or under qualify to participate in the Developing Leaders program, whether they joined through the DL membership category or as part of a corporate membership. 7
TRENDSETTERS
With a new year comes new expectations and one Arizona developer has identified five areas of growth condominium buyers are looking to see in 2019. According to Alana Mann, president and owner of The Statesman Group, here is what to look out for within the next year:
#2: Expansive Storage Options While storage facilities keep popping up all over the Valley to help satisfy this demand, Statesman found an in-home solution by being the first in the market to create air-conditioned, secure storage rooms attached to each residence for larger items.
#1: Multigenerational Living With Millennials making up more than 40 percent of American homebuyers, there’s an increasing need for communities that not only cater to the younger demographic, but Generation X and The Baby Boomers as well. Generation X and Baby Boomers are wanting to stay and feel young by surrounding themselves with family, friends and neighbors that keep them active. Striking the balance between attracting multiple generations will be a must in 2019.
#3: Services Offered As Amenities In 2019, buyers are looking for resortstyle amenities they can’t find anywhere else from private yoga rooms and mail delivery systems to outdoor palapas, chef-inspired kitchens and social spaces. For those with busy schedules, buyers will also be looking for on-site services like a concierge who can handle booking dinner reservations or a VIP program that gives residents access to restaurants and things to do within the neighborhood at a discounted price.
#4: Increased Sound Mitigation With all condominium homes, shared walls are a reality, but buyers today are looking for homes that have extensive measures in place to mitigate sound. Although more expensive, Statesman found that by incorporating additional space between the floor and ceiling, double insulating the walls and using sound-deadening flooring, homeowners have less noise making its way through their home. #5: Smart Home Technology At the click of a button on a smartphone, laptop or tablet, homeowners want to be able to control their doorbell camera, air conditioning and speakers while at work or out with friends. They will also want to connect to the internet faster with fiber optic highspeed internet capabilities.
FLIPPING OUT House flipping is on the rise again in Phoenix. According to statistics from Realtor. com, the Phoenix market was ranked the No. 4 city in the U.S. where home flipping is up. With a median home price of $330,000, Phoenix saw a 35.7 percent increase in home flipping. Home flipping is an indication of how a local real estate market is performing, however, slowing home prices coupled with rising mortgage rates has made home flipping a riskier proposition. The markets with the biggest drop in home flips are generally located in markets where prices are slowing down or actually falling, such as larger coastal cities where prices outpaced affordability. The places where home flips are up tend to be smaller, more affordable cities that are continuing to see home price growth.
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Metros where flipping is up the most Increase
1. Raleigh, NC 2. Charlotte, NC 3. Orlando, FL 4. Phoenix 5. Las Vegas, NV 6. Oklahoma City, OK 7. Houston, TX 8. Providence, RI 9. Atlanta, GA 10. Detroit, MI
Metros where flipping is down the most
Median Home Price
63.40% $340,000 42.50% $323,300 37.10% $300,000 35.70% $330,000 33.70% $320,000 33.60% $237,800 33.50% $310,000 27.20% $342,500 27.10% $315,100 27.10% $226,300
Median Decrease Home Price
1. Columbus, OH 2. Cape Cora, FL 3. Virginia Beach, VA 4. Riverside, CA 5. Portland, OR 6. Seattle, WA 7. San Diego, CA 8. Sacramento, CA 9. Richmond, VA. 10. Miami, FL
-18.80% $230,000 -14.40% $299,100 -10.90% $279,100 -10.60% $387,000 -10.40% $453,100 -8.00% $550,000 -7.90% $657,000 -7.30% $445,000 -6.90% $300,000 -6.00% $385,100
Office market still rolling
OTHER REPORT HIGHLIGHTS INCLUDE: ■ During the 12-month period ending in December, preliminary estimates show that employers added 79,700 net new jobs, an increase of 3.9 percent, which marks the fastest growth in over a decade. This places Phoenix 4th among the top-36 major employment markets in the country for new job growth, up from 5th in 2017. ■ Over the year, net absorption hit 3.53 million square feet, an increase of 106 percent from 2017. Employers continue to add workers at a very active pace, fueling
tenant demand for office space and fueling new development.
the fourth quarter at $24.81 per square foot, up 2.6 percent from one year ago.
■ Tenant move-ins still far outpaced new construction which drove vacancy down to 13.9 percent, 200 basis points lower than one year ago. Continued vacancy declines are supporting rent growth. Asking rents ended
■ Investment sales volume posted a minimal five percent year-over-year decline to 2018’s $2.47 billion. The median price per SF for 2018 was up 17 percent to $176 with cap rates at 6.9 percent.
Construction Trends by Submarket 2018 Completions
Under Construction
1,200,000
1,000,000
800,000 Square Feet
Colliers International’s Arizona Office Research & Forecast Report for the 4th quarter of 2018 showed a slight leveling off of activity. The Greater Phoenix office market had a strong performance for 2018. While absorption was positive in the 4Q, it did not match the more than 1.1 million and 1.3 million square feet highs recorded in the third and first quarters, respectively. One reason for the dip in net absorption is the shrinking number of large blocks of space in desirable submarkets. This will be somewhat alleviated in the coming quarters, as a handful of spec projects are scheduled to come online throughout 2019.
600,000
400,000
200,000
0 Chandler
Airport Area
Tempe
Camelback Corridor
South Tempe Ahwatukee
Glendale
Scottsdale Airpark
Arrowhead
Apprenticeship program trying to keep up with demand A total of 39 students recently completed the Phoenix Electrical Joint Apprenticeship and Training Committee apprenticeship program, including 13 from Rosendin Electric. The program is an accelerated training system that allows the students to earn a good paycheck while learning the skills of the trade. Each student completed 8,000 hours of on-the-job training, as well as classroom instruction. “The apprenticeship program taught me advanced electrical skills that I never would have gotten by just attending classes,” said Roy Hamilton, Jr. a Rosendin apprentice. “After four years of coursework and on-the-job training with Rosendin I graduated with a great job in the construction industry.” Apprentices pay about $8,000 for the training program, with additional funding coming from IBEW, (International Brotherhood of Electrical Workers), NECA (National Electrical Contractors Association) and corporate partnerships. The number of apprentices on track to graduate in 2020 is over 80, which comes as Arizona added more construction jobs than any other state in 2018.
Graduates of the Phoenix Electrical Joint Apprenticeshp and Training Committee apprenticeship program pose for a photo following their graduation ceremony in February. (Photo courtesy of Rosendin Electric) 9
EXECUTIVE PROFILE
Garcia could not have planned career better By SARA FLUERY
A
s the second of five children, Julie Ernzen Garcia grew up with fierce convictions to faith, family and service and a drive to succeed seeded by her parents. Her father was a commissioned Army officer whose career required the family move every three years, and her mother was a graduate of the first class of women at the University of Notre Dame. Adapting to change was par for the course, which is evident in the way Garcia approaches every aspect of her life. When asked how she grew into the role of Kitchell’s Director of Preconstruction, she laughs “I always have a plan, but I never end up where I’m planning to go.” Diagnosed with Juvenile Diabetes at the age of 6, Garcia has a hard time remembering life without it. It is a constant, nagging and sometimes lifethreatening burden, but she takes it in stride. “It’s a part of me but does not define me.” Inspired by her experience as a patient, Garcia headed to Arizona State University with a full scholarship and intent to be a pediatric endocrinologist… until she realized she couldn’t handle other people’s blood. She took one construction class at the behest of her dad, who teaches at ASU’s Del E. Webb School of Construction. She loved it, took more classes and obtained a degree in construction management with a residential focus while earning the highest GPA of anyone in the program. She interviewed with Kitchell only because they had a custom homes division and accepted a position after taking the summer off and obtaining her real estate license. But rather than put Garcia on a custom home project, in 2004 Kitchell was staffing up for the St. Joseph’s Medical Center Barrow Neurological
10 | March-April 2019
Institute hospital tower project. She was assigned as a Project Engineer. “Until my first day, my naive brain thought ‘what custom home is being built at St. Joe’s?’” That first day started a long-term career at Kitchell and Garcia has never looked back. She was paired with old school project superintendents who challenged her, developing endearing relationships and close connections. During her early years at Kitchell, she married her high school sweetheart, Neil, and had four healthy children in short order despite having highrisk pregnancies. When she returned from maternity leave with her oldest, she was asked to choose between being a project engineer in Kitchell’s Custom Homes division or going into preconstruction for a year. By that time, she had the maturity to realize
that embracing something she thought she would hate (preconstruction was the only class she did not like) might lead to new opportunities. That decision ultimately led to the role Garcia has today: leading a preconstruction team working on a multitude of projects, including the $525 million Maricopa Integrated Health System’s Care Reimagined campus transformation. “I love preconstruction because we have the biggest impact on projects in the shortest amount of time.” When not at work or spending time with Neil and their brood (Neil is the director of training for an automotive group and Julie’s biggest supporter), Garcia is an adjunct faculty associate at ASU. She teaches the same class – Construction Management 101 – that led to her chosen career. She also recently joined the local board of the Juvenile Diabetes Research Foundation. “I’m here because nothing turned out the way I planned, and I’m very blessed.” Photo by Bruce Anderson, AZ Big Media
AFTER HOURS
???????
‘Climb like you live’ SCS Engineers’ Sola learns about himself on the rocks By ALEXA BUECHLER
A
geologist’s 40-year-long hobby started with some rope and a book in Minnesota. Now, Daniel Sola climbs every weekend in Arizona, where he works as the SCS Engineers project director for Arizona and New Mexico. SCS Engineers is an environmental consultant and contracting company, aiming to solve environmentally-
12 | March-April 2019
driven challenges and promote sustainability through innovation and technology. Sola is trusted with project management, client service, business development and technical leadership. His work helps clean up landfills and chemical powerplants. Even though he mostly works with water, Sola said he bores his friends with details about the rocks they’re climbing on. “I like rocks,” he said. “They tell a story. They’re billions of years old. I like all that stuff. It’s a little odd, I guess, to spend all day doing geology and all weekend climbing on geology.” Sola said when he was growing up, the sport was uncommon. There were no climbing gyms nor classes to teach him how to do it.
“We bought a rope and a book, and we went out and started doing it,” he said. “We were young and stupid. We weren’t particularly afraid. We just started doing it, and learned as we went.” It looked like a cool hobby, especially to a 17- or 18-year-old. “I was kind of a nerd,” he said. “We were nerds. We weren’t into organized sports. There were some cliffs around town. And we didn’t have girlfriends.” However, unlike most of his friends, he stuck with the sport. “We’ve probably been through three different generations of people who get into it, grow through it, move on,” Sola said. “And we’re still there.” He still loves it, and it’s kept him in shape. “What a workout,” he said. “I mean, it’s everything from your brain to your arms to your ankles. Everything gets worked out.” Sola moved to Arizona five years ago and enjoys the fact that he can climb at any time of the year with locations that are “closer than the office,” such as the McDowell Mountains, Pinnacle Peak, South Mountain and Camelback. “It’s like forced meditation,” he said. “I’m busy. I’ve got a stressful job. And when I’m up there, I don’t know what I do for a living. Absolutely nothing else matters for a few minutes, and it’s hard to get that kind of focus.” Sola said rock-climbing has taught him about himself. “You climb like you live,” he said. “If you’re indecisive and have trouble making decisions at work or at home, you’re going to climb the same way. When you’re climbing you have to deal with that immediately, so you get some insight into how you manage situations.” Sola said he’s only been to Yosemite once, but he’d like to return because the first time he went, he was out of shape. He would also like to climb on the East Coast because most of his climbs have been in Wyoming, Colorado, California, Washington, Minnesota, Wisconsin, Utah and Arizona. His other hobbies include horseback riding, camping, running and singing. He’s also learning how to play the ukulele. “I really believe you’ve got to keep learning all the time, or you get stuck,” Sola said.
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NEW TO MARKET A
D
E
MULTIFAMILY A MILLENNIUM PARK CENTRAL DEVELOPER: Dinerstein Companies GENERAL CONTRACTOR: TBD ARCHITECT: Cuningham Group Architecture LOCATION: Central Ave. and Catalina Dr., Phoenix SIZE: 295,000 SF VALUE: WND START/COMPLETION: Late Summer 2019 – Late Spring 2021
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HOSPITALITY B FATCATS DEVELOPER: FatCats Entertainment GENERAL CONTRACTOR: A.R. Mays Construction ARCHITECT: TK International LOCATION: 5740 E. Longbow Marketplace, Mesa SIZE: 64,050 SF VALUE: $11.5 million START/COMPLETION: January 2019 November 2019
EDUCATION/CULTURAL C FORT MOJAVE GRADE SCHOOL AND CULTURAL CENTER DEVELOPER: Fort Mojave Indian Tribe GENERAL CONTRACTOR: A.R. Mays Construction ARCHITECT: DLR Group/ Westlake Reed Leskosky LOCATION: Plantation Road and Dunes Road, Fort Mojave SIZE: 41,121 SF VALUE: $14.5 million START/COMPLETION: October 2018 July 2019
B
C
F
HEALTHCARE D HONORHEALTH SONORAN MEDICAL CENTER DEVELOPER: HonorHealth GENERAL CONTRACTOR: McCarthy Building Companies, Inc. ARCHITECT: Devenney Group Architects LOCATION: I-17 and Dove Valley Road, Phoenix SIZE: 155,000 SF VALUE: WND START/COMPLETION: December 2018 September 2020
INDUSTRIAL E GILBERT CROSSROADS BUSINESS PARK DEVELOPER: EastGroup Properties, Inc. GENERAL CONTRACTOR: Willmeng Construction ARCHITECT: Butler Design Group BROKERAGE: Colliers International LOCATION: Germann and Gilbert roads in Gilbert SIZE: Phase I - Two buildings 58,000 SF and 82,000 SF VALUE: WND START/COMPLETION: April, 2019 October 2019
RETAIL F THE PALMERAIE DEVELOPER: Five Star Development GENERAL CONTRACTOR: Five Star ARCHITECT: NELSEN BROKERAGE: Dolce Vita Development LOCATION: 30 acres on the corner of Scottsdale Road and Indian Bend (part of 122acre master-planned development) SIZE: 160,000 SF VALUE: Entire 122-acre development is valued at $2 billion once completed START/COMPLETION: Feb 2019 — 4Q 2020
15
“What’s going on there?” By STEVE BURKS
O
ne simple, obvious question kicked off the process that unlocked thousands of acres of land in North Phoenix and cleared the way for what could be years of economic development in the City of Phoenix. “We were standing on top of the big parking structure up (at High Street) and looking out over all of the vacant land up there,” said Robert Flaxman, CEO of Crown Realty & Development of his visit to the property in 2016. “I said to everybody, ‘What’s going on there?’ And there were all of these blank stares and no one seemed to know.” Rick Carpinelli, who runs the Crown Realty & Development operations in Phoenix, uncovered a string of legal activity that stretched back almost a decade. Crown and its advisors waded into the legal weeds that had entangled this property and after three years of work, came out on the other side as owners of a 96.5 acre parcel of land adjacent to the High Street mixed-use development at Desert Ridge. Crown also was granted “master developer” rights for not only that 96.5 acre site but High Street: Near Loop 101 and Tatum Blvd.
16 | March-April 2019
also 5,700 acres of land that runs along the Loop 101, stretching from 64th Street in the east to Black Mountain in the West. That’s approximately five square miles in the City of Phoenix’s highest-growth corridor. “The value is in the opportunity for the City of Phoenix and really, greater Arizona,” Flaxman said. “It’s going to be the economic driver for the state in many respects, and certainly for the City of Phoenix.” When getting to what was going on with the property next to High Street, Crown discovered that Bruce Gray and Gray Development had borrowed $7 million from Burford Capital, a global litigation lender, to finance a lawsuit against Chicago-based Thomas J. Klutznick Co. That lawsuit resulted in Gray getting a $116 million judgement and resulted in him receiving the 96.5 acres of land as well as the “master developer” rights. By the end of 2015, Gray hadn’t repaid the loan from Burford Capital, and foreclosure proceedings were started in 2016, about the same time Flaxman was touring High Street in hopes of buying that property.
Rick Carpinelli
Robert Flaxman
“We couldn’t make a deal for High Street, but we were able to make a deal with Burford to buy their note,” Flaxman said. “We bought two additional notes from a local lender, because that loan was secured by additional collateral that was contiguous and Mr. Gray filed bankruptcy in connection with those notes in 2016.” Crown confirmed its plan of reorganization with the bankruptcy court, over the objection of Gray. Crown was then successful in getting all of the unsecured creditors to sign off on the plan, which was confirmed by the court and became effective on May 7, 2018. The bankruptcy court ruled the Desert Ridge property tied to the community’s master developer rights be sold, and in January, the 96.5 acre parcel of land went up for auction, and Crown was the winning bidder at $54 million. Flaxman credits the Polsinelli legal team of Todd Burgess, John Clemency and Lindsi Weber, as well as Shawn Tobin of Tobin & Connealy, PLC, for their work in securing the positive outcome. As “master developer,” Crown will have the option to work with the other developers and lead the planning for future development in the area. Mayo Clinic has recently announced a $650 million investment to expand its campus nearby, Arizona State University has broken ground on its adjacent healthcare campus. American Express is also under construction on a new 300,000 square foot building.
MULTIFAMILY/SALES
$103.3M | 493,192 SF
SAN MELIA APARTMENT HOMES 14435 S. 48th St., Phoenix BUYER: LaSalle Investment Management, Inc. SELLER: N/A Broker: N/A
$84.25M | 412,868 SF
$62.4M | 396,384 SF
SONORAN APARTMENTS 13625 S. 48th St., Phoenix BUYER: MG Properties Group SELLER: The Blackstone Group, LP BROKER: CBRE
PASEO PARK APARTMENTS 5205 W. Thunderbird Rd., Glendale BUYER: Knightvest Management SELLER: Nuveen Real Estate BROKER: CBRE
$63.5M | 289,370 SF
$61.65M | 482,400 SF TRELLIS ON BELL APARTMENTS
AVANA MCCORMICK RANCH 8375 E. Via de Ventura, Scottsdale BUYER: Harbor Group International, LLC SELLER: The Blackstone Group, LP BROKER: CBRE
1100 E. Bell Rd., Phoenix BUYER: Green Leaf Capital Partners SELLER: Evergreen Development Co. BROKER: CBRE
RETAIL/SALES
$24.85M | 56,649 SF
UPTOWN PLAZA 2-52 E. Camelback Rd., Phoenix BUYER: Levine Investments SELLER: Uptown Plaza Associates BROKER: N/A
$24.4M | 55,642 SF UPTOWN PLAZA
100 E. Camelback Rd., Phoenix BUYER: Levine Investments SELLER: Uptown Plaza Associates BROKER: N/A
$13.42M | 8,446 SF
5125 S. Rural Rd., Tempe BUYER: Bertram Partners SELLER: Mays & Company Real Estate BROKER: CBRE 18 | March-April 2019
$13M | 92,626 SF THE SHOPPES AT PARKWOOD RANCH
10656-107200 E. Southern Ave., Mesa BUYER: Sphinx Real Estate LLC SELLER: Weingarten Realty Investors BROKER: Phoenix Commercial Advisors
$8.45M | 50,046 SF
555 N. Litchfield Rd., Goodyear BUYER: Balboa Burbank LLC. SELLER: Seefried Properties, Inc. BROKER: N/A
It’s the big deals and the brokers who close them that make the market an interesting one to watch. Here are the top notalbe sales for the months of January and February. Sources: Daniel Zawisha at Cushman & Wakefield Research.
OFFICE/SALES
$34M | 159,261 SF
PAPAGO SPECTRUM OFFICE BUILDING 1225 W. Washington St., Tempe BUYER: Alidade Capital LLC SELLER: GLL Real Estate Partners BROKER: JLL
$25.25M | 106,503 SF LA RONDE CENTER
14600 N. Dell Webb Blvd., Sun City BUYER: Anchor Health Properties SELLER: Whiteboard, Inc. BROKER: CBRE
$22.82M | 149,795 SF
UNION HILLS CORPORATE CTR 18444 N. 25th Ave., Phoenix BUYER: Ascent Real Estate Advisors SELLER: G2 Capital BROKER: CBRE
LAND/SALES
$22.25M | 102,356 SF
MACH ONE - BUILDING A 2222 E. Yeager Dr., Chandler BUYER: Sentinel Real Estate Corporation SELLER: PGIM, Inc. BROKER: N/A
$15.25M | 55,000 SF
TEN-O-ONE 1001 N. Central Ave., Phoenix BUYER: True North Studio, LLC. SELLER: N/A BROKER: Cushman & Wakefield
INDUSTRIAL/SALES
$54M | 4,203,540 SF DESERT RIDGE
$44.78M | 535,213 SF WESTSIDE BUSINESS
$23M | 2,731,648 SF
$24.7M | 250,043 SF RIVERSIDE 43
$22.6M | 6,094,044 SF
$17M | 203,372 SF BUILDING 2
NWC Loop 101 & 56th St., Phoenix BUYER: Crown Acquisition Associates, LLC. SELLER: Romspen Us Master Mortgage LP BROKER: CBRE
E. Frye Rd., Phoenix BUYER: Blandford Homes SELLER: Tempe Union High School District 213 BROKER: Nathan & Associates
S. of Dove Valley Rd. - W. Dove Valley Rd., Phoenix BUYER: Lennar SELLER: N/A BROKER: N/A
$12.26M | 1,870,684 SF
PARK - BUILDING 4 8602 W. Buckeye Rd., Tolleson BUYER: Prologis SELLER: The Blackstone Group LP BROKER: N/A
2200 S. 43rd Ave., Phoenix BUYER: Cohen Asset Management, Inc. SELLER: Merit Partners BROKER: N/A
901 S. 86th Ave., Tolleson BUYER: Prologis SELLER: The Blackstone Group LP BROKER: N/A
$17M | 203,371 SF
SEC Bullard Ave. & Van Buren St., Goodyear BUYER: Walton Street Capital, LLC. SELLER: LGE Design Build BROKER: N/A
BUILDING 3 859 S. 86th Ave., Tolleson BUYER: Prologis SELLER: The Blackstone Group LP BROKER: N/A
$12M | 3,335,389 SF AVONDALE 78
$13.7M | 164,210 SF BUILDING 1
N. Litchfield Rd., Goodyear Buyer: Iron Point Partners, LLC. SELLER: Cowley Companies, Inc. BROKER: Cushman & Wakefield
8590 W. Buckeye Rd., Tolleson BUYER: Prologis SELLER: The Blackstone Group LP BROKER: N/A 19
LEGISLATIVE UPDATE
??????? Workforce development a successful economic strategy
W
orkforce development is an essential element of any successful economic development strategy. It focuses on building the pipeline of employee talent and existing worker training to meet the immediate and long-term needs of current and future Arizona businesses. As economic developers and business leaders know, the quality of our education system and the availability of trained workers will determine the type of jobs we are able to attract and retain in Arizona. It was heartening to hear at the start of the 2019 Legislative Session, Governor Ducey highlighting the need to properly invest in workforce development in his State of the State address. In particular he noted the need to support career and technical education (CTE) institutions in addition to the work of the community college systems. CTE institutions throughout Arizona prepare people to work in various jobs, such as a trade, a craft, or as a technician. They provide valuable courses in a variety of careers from culinary arts and banking to plumbing and other trades. Arizona’s community colleges are the local workforce development drivers. They routinely work with the business community to fulfill area job training needs. They play a vital role
20 | March-April 2019
Eric W. Emmert AAED
Joyce C. Grossman
in enhancing the region’s occupational strength by enhancing the workforce pipeline and retooling the skill sets of the current workforce. While there will likely be several bills introduced this session addressing workforce development from various angles, the Arizona Association for Economic Development (AAED) will support sustainable policies and funding for education programs that result in a thriving qualified Arizona workforce. AAED’s support is not only for a healthy innovation pipeline, but also a robust internship and craft training environment. One of the more ambitious proposals for funding workforce development and education this session is a concept advanced by Senator Sylvia Allen (R-Snowflake). She is proposing an
additional one-cent sales tax for education purposes. The proposal is subject to voter approval and specifies the net revenues from the tax will be credited to, and separately accounted in, the state General Fund and appropriated as follows: a) 73 percent for primary and secondary classroom education purposes; b) 22 percent for maintaining an in-state tuition rate consistent as outlined in the Arizona Constitution; and c) 5 percent for community college trade and workforce development programs. As these proposals make their way through the legislative process, they will be amended and changed. However, the focus on workforce development is enhanced by AAED’s engagement at the Arizona Legislature. Throughout this process, AAED will maintain its focus on what it takes to have a qualified workforce that will support Arizona’s competitiveness in the retention and attraction of high wage jobs. Joyce C. Grossman, AZED Pro, is the executive director of the Arizona Association for Economic Development and Eric W. Emmert is the VP of Dorn Policy Group, Inc.
Changing the Affordable Housing Narrative Focus on Solutions, Not Problems
1949.
The Housing Act of 1949 was the last time a national program included an aspirational goal for every American to have decent housing. Emphasizing new construction, the legislation provided governance over how federal financial resources would shape the growth of American cities. 1981. During his State of the Union address nearly 40 years ago, President Jimmy Carter mentioned affordable housing. He was the last American president to do so. 2018. According to ATTOM Data Solutions, U.S. home affordability is the worst it has been since 2008. In 64% of local U.S. markets, home prices were rising faster than wages. What this means is that for 75% of the average wage earners, median-price homes are out of range, based on a 3% down payment and a maximum front-end debt-to-income ratio of 28%. This is true of counties like Los Angeles County; Cook County (Chicago); Maricopa County (Phoenix); San Diego County; and Orange County, California. Defining Affordability. Housing affordability is typically measured by comparing a household’s income to its housing costs. When a household spends 30% or more of its income on housing, it is referred to as cost burdened. A household spending 50% or more of its income on housing is referred to as severely cost burdened. Nationally, 51% of renter households are cost burdened and 26% are severely cost burdened. For every 100 extremely lowincome American households, there are 29 affordable and available places to live. The statistics are startling and represent a call to action. In Arizona, rents are increasing faster than median incomes and the average home price is out of reach of a typical family, according to the
Deb Sydenham ULI
Arizona Department of Housing. Statewide, there is a shortage of 159,599 available affordable rentals for people who are at or below extremely low income, according to the National Low Income Housing Coalition, with most of that shortage being in metropolitan Phoenix. The discussion on affordable housing often focuses on low-income people who are struggling. However, data show that middle-class families also are struggling. At their 2019 winter meeting, the U.S. Conference of Mayors identified affordable housing and homelessness as top priorities and a critical component of economic development. Gloria Munoz, Executive Director
of the Maricopa County Housing Authority has noted, “The lack of affordable housing in Maricopa County is becoming a crisis situation.” According to a recent study by RCLCO, approximately 38.6% of the population within the Phoenix Metropolitan Statistical Area are living in a challenged neighborhood. As schools worsen, crime rates escalate, and infrastructure ages in challenged neighborhoods, residents who can afford to move choose to do so, resulting in higher vacancies and further decay. The reality is that, from an economic standpoint, regions rise or fall together. Employers move to or expand in a region because they see the potential of the region as a whole, not the potential of one particular suburb or section of that metro area. There is no silver bullet that will solve all the problems of housing affordability, especially when a prevailing sentiment is, “What does housing affordability have to do with me?” Homes are the foundation of strong communities. It’s time to change the narrative from “me” to “we.” Deb Sydenham, FAICP, is the executive director of ULI Arizona District Council. 21
HOSPITALITY
Rooms with a (New) View
yoga lawn. The final highlight of the upgrade: 12 pickleball courts.
CIVANA The newly completed $50 million Spa at the CIVANA wellness resort is one of the largest in the Southwest. The state-of-the-art facility – part of the resort’s $50 million renovation – features 28 treatment areas, including a Watsu pool, couples’ rooms, wet treatment rooms, five facial rooms, and 13 massage rooms. There is also a communal area of hydrotherapy immersions – known as the Aqua Vitality Circuit – that includes a European-designed hot/cold walking pool, a warm therapeutic soaking pool, a cold plunge shower, and the only fiveclimate KLAFS SANARIUM® in the continental United States.
THE PHOENICIAN
Hotel, resort renovations ramp up By ALISON BAILIN BATZ
Y
ou’ve no doubt heard the phrase “Keeping up with the Joneses.” Well, forget the Joneses. Keeping up with continued, multimillion dollar investments that Arizona’s hotels and resorts are making to enhance the guest and local resident experience each day is far more fun. Here is just a sampling of some of our hospitality industry’s latest and greatest projects of note:
HARRAH’S AK-CHIN CASINO In celebration of its 25th anniversary, Harrah’s Ak-Chin Casino, which is Arizona’s first and only tribal casino to have an international management partner, recently completed a multimillion dollar construction project featuring renovations that touched the entire property. Among the most sweeping updates is the new 12-story hotel tower that adds an additional 22 | March-April 2019
230 rooms to the property, bringing the total to 529. The expanded gaming floor is also impressive, boasting live entertainment, slot machines, video poker, video Keno, statewide progressives, live action poker and Black Jack. The property also expanded its ballroom, opened a nearly 3,000-squarefoot spa and updated all of its existing resort-style hotel rooms. The addition of two new restaurants, Oak & Fork, a small plate and wine bar, and Chop, Block & Brew, complete the upgrades.
JW MARRIOTT DESERT RIDGE RESORT & SPA In early March, the JW Marriott Desert Ridge Resort & Spa completed an $8 million enhancement that includes the addition of six new pool suites overlooking the Lazy River, 12 new private pool cabanas and an exclusive poolside retreat called Griffin Bay, which features its own concierge, attendants, enhanced food and beverage offerings and VIP seating. The enhancement also includes an upgrade to the Revive Spa. As a result, Revive now boasts a nearly 3,500-square-foot fitness center, movement studio and
The Phoenician has undergone one of the most impressive renovations in Arizona tourism history. The extensive, multi-million facelift has included massive enhancements to the lobby, guestrooms, pools, J&G Steakhouse and much more. It also marked the opening of the already award-winning Mowry & Cotton restaurant, as well as the debut of a new three-story spa and new two-story athletic club. In March 2019, The Phoenician Tavern opened, replacing Relish Burger Bistro to continue the resort’s trend toward a more approachable luxury that appeals to locals and resort guests alike.
TAVERN HOTEL It’s been a busy few months for the bustling Tavern Hotel. Not only did TripAdvisor name Tavern, owned by the Haunted Group, as among the top 15 hotels in the United States for Romance in 2019, but the Arizona Office of Tourism named Haunted Group executive chef Michelle Jurisin – who oversees the brand’s Crema Craft Kitchen & Bar, The Tavern Grille, Pizzeria Bocce and Nic’s in Cottonwood – as among the top five female chefs to watch. On the heels of this, the Haunted Group recently announced it will invest more than half a million dollars to add a pool, fitness facility and enhanced amenities to the Tavern Hotel by year’s end.
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Development | Acquisition | commericAl | HeAltHcAre
23
INDIAN COUNTRY
Big Splash
Great Wolf Lodge Arizona is latest entertainment destination By STEVE BURKS
24 | March-April 2019
O
ne of the most anticipated projects the Valley has seen in decades is coming together on Salt River Pima-Maricopa Indian Community land in Scottsdale. The state’s first indoor water park, located next to Salt River Fields at Talking Stick, is in the stretch run of construction, with sights set on a late summer/early fall completion. The designers and builders of the new Great Wolf Lodge Arizona have been just as excited about working on it as those who will visit the resort once it’s up and running. “In my experience, this project is unlike any other in the state,” said Ben Goetter, vice president and general manager for Mortenson, the general contractor on the destination resort. “Great Wolf Lodge Arizona is a unique project, because we have a large interior waterpark that will be conditioned for year-round use. As the first and only indoor waterpark in Arizona that
families, natives and tourists can use annually, it will be attractive to many users due to its numerous amenities.” “We can’t wait for the opening. I’ll be taking my family.,” said Sean Mason, project manager for IMCOR, which is handling the mechanical work on the project. “I will say that our staff is eagerly awaiting Contractor Appreciation Day at the waterpark.” From a design standpoint, Great Wolf Lodge Arizona presented challenges due to the size, it features 350 guest rooms, along with an 85,000 square foot indoor waterpark, a family entertainment area as well as retail and dining areas. Gensler, the architectural firm on the project, did exhaustive research on both the Salt River Pima-Maricopa Indian Community, where the facility is located, and the Great Wolf Lodge brand. “The design of each lodge transports guests to a north woods cabin with architecture that creates a uniquely branded space,” said Gensler principal and design director Tom Sze. “Our challenge was to develop and design the story of a north woods-themed lodge while seamlessly fitting in within the
local setting. We took the time to learn about the Salt River Pima-Maricopa Indian Community traditions, artwork, culture, fashion, and the surrounding natural environments. It was important to respect and honor the local community and culture by designing a lodge that fit into the surrounding environment.” Sze said once the project is completed, visitors should be on the lookout for culturally-inspired graphics throughout the property. Other design factors are much easier to spot. “The angled porte-cochere roof, that is the signature architecture element of the lodge,” Sze said. “And of course, the Great Wolf statue that welcomes you at the front.” The Arizona lodge will be the 19th Great Wolf Lodge in North America. Goetter and Mortenson also did their homework when getting ready to build such a unique facility. “The Mortenson team traveled on several occasions to multiple Great Wolf
25
INDIAN COUNTRY Lodge project sites that were either completed or under construction,” Goetter said. “These efforts allowed us to understand the customers unique requirements and talk to previous general contractors to gather insight and host lessons learned sessions. This has proven to be very beneficial.” Building this unique project required different approaches. Goetter said that the three buildings that make up the resort called for three different building methods. “The waterpark was constructed using tilt-up construction, while the Family Entertainment Center is light gauge steel framed structure and the hotel itself is a high-rise structure with pre-manufactured exterior panels,”
Features of
THE GREAT WOLF LODGE • An 85,000-square-foot indoor waterpark, heated to a comfortable 84 degrees and featuring a variety of body slides, tube slides, raft rides, activity pools and splash areas for every member of the family — from toddlers and teens, to parents and grandparents. • A 27,000-square-foot family entertainment center known as the Great Wolf Adventure Park. Here, families can scale a multi-level ropes course, play a round of miniature golf or step into the fantasy world of MagiQuest — Great Wolf Lodge’s exclusive live-action adventure game where players use interactive magic wands to assist pixies and battle dragons and goblins. 26 | March-April 2019
Goetter said. For Goetter and the Mortenson team, the waterpark is the crown jewel of the project and a lot of construction focus has been on creating the unique design of the waterpark. Helping bring this design to life has been major trade partners Neuman Pools, Suntec, Corbins Electric and IMCOR, among many others. For the waterpark, IMCOR is installing more than 30,000 lineal feet of pool piping (nearly five miles), ranging from half-inch to 18 inches in diameter. There are 30 pumps, along with surge tanks, valves and fittings. “Certainly, there are several features of the water park that are unique,” said Mason. “Each require specific flow rates
• A first-of-its-kind animated show in the lobby called the Northwoods Friends show, which utilizes projection mapping technology on a moving, three-dimensional multiplane surface to immerse children into the world of the Great Wolf Kids characters. • A collection of complimentary family events and activities including Yoga Tails, a program that combines tales of the Northwoods creatures with yoga poses, and Great Wolf Lodge’s signature Story Time event, where children gather around the fireplace for a bedtime tale. • Several dining options, including a collection of eateries inside the Great Wolf Adventure Park, a Dunkin’ Donuts and Ben and Jerry’s ice cream parlor. The resort will also feature Barnwood,
and directional adjustments. Also, while not necessarily unique, the scope of the project alone is impressive.” The Great Wolf Lodge Arizona project is just the latest in a growing cluster of entertainment projects to be developed on Salt River PimaMaricopa Indian Community land. Another project is under construction just north of Salt River Fields at Talking Stick. Medieval Times Dinner & Tournament is nearing completion of a 79,000 square foot venue, with an anticipated summer opening. These two latest projects join other attractions like OdySea Aquarium, iFly Phoenix, Butterfly Wonderland and Talking Stick Resort & Casino and Topgolf Scottsdale.
a full-service farm-to-fork restaurant featuring dishes made from locally sourced ingredients. • Family friendly suites in a variety of categories and styles including KidCabin suites with separate sleeping quarters for kids complete with bunk beds and Great Wolf Kids character theming, as well as multiple bedroom suites for large families or multi-generational groups. • Meeting and event planners can also look to Great Wolf Lodge Arizona for their meeting and event needs. The property will boast nearly 6,500 square feet of flexible conference space with breakout rooms, built-in A/V technology, customizable catering options and a team of dedicated industry professionals to tend to every meeting need.
A DEVELOPMENT OF THE AK‑CHIN INDIAN COMMUNITY
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WEST VALLEY UPDATE
Goodyear’s time to shine City making most of strong planning, leadership to lure industrial development By STEVE BURKS
I
t is a city that was originally founded by a titan of American industry, so it makes perfect sense that industrial building would be triggering a development boom in the City of Goodyear. The city was created when the Goodyear Tire and Rubber Company bought the land in 1917 to grow cotton for its tires. Now, more than 100 years later, Goodyear is cementing its reputation as a major leader in industrial development in Arizona. The city has attracted major companies like Amazon, Ball Corp., Chewy.com and Dick’s Sporting Goods to build manufacturing and distribution centers in the bustling West Valley.
Lincoln Logistics 40: Goodyear project was first in Arizona with 40-foot clear heights. 28 | March-April 2019
“Goodyear has potential for decades of future development. Residential keeps up the pace of employment, so Goodyear will continue to see explosive growth for a long time.”
– Andy Markham, executive managing director, Cushman & Wakefield
29
WEST VALLEY UPDATE BENEFITS WITHIN A FOREIGN TRADE ZONE ■ Property Tax Savings Only in Arizona Reduce Arizona real and personal/ equipment property taxes on investments by as much as 72%. Arizona state law allows for any property in a FTZ that is approved and activated to be re-classified down from 18% valuation to 5% valuation.
Reduced Fees / Streamlined Procedures Reduced paperwork – Consolidated weekly entry process reduces fees.
■
“The City of Goodyear has crafted policies that have made their community a more attractive environment for development,” said Joyce Grossman, executive director of the Arizona Association for Economic Development. “Policies that have lead to the development of the critical infrastructure along the 303 extension which have made the area ripe for speculative building.” While most of the recent developments have been traditional industrial products, Goodyear is beginning to make inroads in attracting data center development. In January, Vantage Data Centers, a leading provider of wholesale data centers in North America, announced plans for a mega-scale data center campus in Goodyear. And in late February, Stream Data Centers purchased a 418,000 square foot facility on 157 acres in the first steps toward establishing its own data center campus. “We’ve been trying to get data centers for a long time because of the technology effect and because they are a high-capital investment and can bring a workforce to your community and can help brand your community,” said Harry Paxton, project manager in the City of Goodyear Economic Development office. “We knew we had the infrastructure, and the workforce, we believe, has existed here for some time.” There are several factors that have helped Goodyear attract major industrial developments. Economic Development Director Lori Gary, Paxton and the rest of their staff have 30 | March-April 2019
Reduced supply chain time – Faster customer clearance with special direct delivery procedures. Lower fees – Reduction can be up to $1 million in savings annually. Duty Deferral and Reduction – Duty is paid on end products only when goods enter the U.S. Duty Elimination – Foreign merchandise in the FTZ may be re-exported free of duty and federal excise tax. No duty is paid on goods scrapped, wasted or destroyed in an FTZ.
Four Ways To Qualify #1 – Build a Spec Building (User Driven Site) #2 – Qualifying Manufacturing Companies are Pre-Approved for City FTZ Support (User Driven Site) #3 – Internet Fulfillment Companies can Qualify for City FTZ Support (User Driven Site) #4 – Locate in a Federally Approved FTZ Magnet Site (Magnet Site)
worked hard to establish a development process that is streamlined, efficient and ensures that the developers see their projects get completed on time. “One of the things that our city did several years ago was look at our development process, from economic development, to development services, which include engineering and building safety,” Paxton said. “We looked at what we do all the way down the line, to when we actually receive a certificate of occupancy.” “Reputation is everything. Goodyear has worked very, very hard to make this a smooth process,” Gary said. “So that we are able to deliver when it needs to be delivered.” By creating streamlined processes, Goodyear has improved the
environment for developers, brokers and builders. “(They are) extremely easy to work with,” said Andy Markham, executive managing director for Cushman & Wakefield, which has worked on several high-profile developments in Goodyear, like the Camelback Center at Loop 303, a 305-acre business park. “Harry Paxton and mayor Georgia Lord welcome all industries, especially industrial, distribution, e-commerce and manufacturing with open arms.” Goodyear planners and the natural growth of the Valley created ideal
For more information on FTZ’s, visit developgoodyearaz.com or gmftz.org
Ball Corp: The Ball Corporation invested more than $50 million into a Goodyear manufacturing plant.
WEST VALLEY UPDATE
zones for industrial developments. One zone is around the Phoenix-Goodyear Airport, that zone stretches south and west and connects to another industrial zone along Maricopa County Highway 85 (also referred to as State Route 85), and the newest zone is in the northwest part of the city, along the new Loop 303, which opened in 2014. “The city’s investment in robust infrastructure is another key differentiator for employers seeking to locate,” said Tony Lydon, managing director for JLL, another firm that is active in West Valley development. “Geographically, Goodyear straddles the I-10 corridor, offering proximity to regional supply chain markets including Southern California. Finally,
the city is proximate to over 1.5 million people within 30 minutes. An accessible workforce is a significant draw for employers seeking a deep, qualified, affordable employee pool.” Goodyear’s industrial growth has also been helped by the establishment of Foreign Trade Zone No. 277 in the West Valley in 2010. The FTZ designation creates economic incentives to companies to build and operate facilities in those FTZ’s. Goodyear has three FTZ Magnet Sites, which are pre-approved for future zone users. One is at Airport Gateway at Goodyear just north of the airport, one at PV303 Industrial Park along Loop 303 and Indian School Road and a third one at Goodyear Crossing
Not just Goodyear The West Valley city of Tolleson is also seeing its stock among industrial developers rise, with three large-scale projects currently under construction. West 80 Industrial 379,828 RSF DEVELOPER – Wentworth Property Co. LOCATION – Buckeye Rd. & 80th Ave. DELIVERY – Q2 2019
32 | March-April 2019
Majestic Tolleson Center 330,842 RSF (2 buildings) DEVELOPER – Majestic Realty Co. LOCATION – W. Washington St. & 87th Ave. DELIVERY – August 2019 Tolleson Corporate Park - Building B 253,348 SF DEVELOPER – Merit Partners LOCATION – W. Buckeye Rd. & 75th Ave. DELIVERY – August 2019
Goodyear Crossing One: Blue Buffalo
Industrial Park, along MC 85 and Cotton Lane. “This was important for us to get ourselves on the industrial map, especially targeting advanced manufacturing,” Paxton said of the FTZ. “Certainly, the FTZ has helped us and is a piece of what we felt we needed to do. Helped us get our name out there and helped us bring in infrastructure.” Those FTZ’s also helped draw in speculative industrial buildings, with Lincoln Property Company, The Opus Group and First Industrial Realty all building spec facilities within the last two years. Gary said that now Goodyear has established a strong industrial base of companies, the city is looking to expand into other market sectors, like technology, healthcare and retail. The announcement of the Vantage Data Center was just the first of what the city hopes will be a long line of technology and data center companies opening operations in Goodyear. A huge benefit for Goodyear is that there is a major fiber optic network line that runs through the city, providing easy connectivity for the data centers. Also, the city has a modern, reliable power grid, which is vital for data center operations.
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CHANGE IS GOOD Expand Explore
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14th ANNUAL
2017
HIGHLIGHTING the BIGGEST, BEST and MOST NOTABLE COMMERCIAL REAL ESTATE PROJECTS from 2018
2019 RED AWARDS
2019 RED AWARDS Arizona’s real estate development projects make lasting impact By Steve Burks
T
he annual Real Estate & Development (RED) Awards highlight the best work being done in Arizona in the past year. All of the finalists highlighted in this edition will make an impact in some form or fashion. That impact may be visual, as these projects bring striking aesthetics to the market. However, looking deeper into what these projects were built for, shows that they will impact people in lasting ways. People will be cared for, educated, inspired and entertained inside these projects. Memories will be made and minds will be challenged thanks to these RED Award finalists.
Union Tempe: The Opus Group
Selecting the finalists was difficult, but naming winners even more so. In this edition, we highlight just some of the unique aspects of each of these projects. The finalists and winners were honored at our 2019 RED Awards event on March 6 at Pointe Hilton Tapatio Cliffs Resort in Phoenix. Highlights from that event, as well as more details about the winning projects, can be found online.
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PROJECT OF DISTINCTION
40 | March-April 2019
WINNER ISM Raceway Modernization The modernization of ISM Raceway has completely changed the fan experience. This project provided a unique opportunity to elevate a facility that had so many iconic architectural features while making every corner speak to today’s NASCAR fan. ISM Raceway became the only track on the NASCAR circuit to offer WiFi throughout the entire facility. The addition of the sponsored “Canyon” entrances, in addition to a number of other brandable assets, created a new revenue stream for the track, benefiting the Arizona economy. The repositioned grandstands opened up in-bowl real estate and created an opportunity to relocate the start/ finish line just before the track’s infamous dogleg giving all fans a view of the start/finish line. The new grandstand was also built alongside the existing one and features escalators, additional restrooms and concessions. The new grandstand places a majority of seating out of direct sunlight providing shade and comfort for fans. A new pedestrian tunnel was opened to allow fans easy access to the new INfield. Development of a new unprecedented and immersive fan experience in the INfield. The new infield development also allows for an enhanced pre-race show that includes a concert, fan access to pit road and up-close viewing of driver introductions. OWNER: ISM Raceway GENERAL CONTRACTORS: Okland Construction PROJECT MANAGER: ROSSETTI, DLR Group ARCHITECT: ROSSETTI, DLR Group CIVIL ENGINEER: Atwell Group SIZE: 1,595,571 total SF (567,290 SF Grandstand; 27,000 SF wheelhouse; 910,281 SF midway, 91,000 SF infield) VALUE: $178M LOCATION: 7602 S. Avondale Blvd., Avondale START/COMPLETION: September 2016 - November 2018 41
COMMUNITY IMPACT
WINNER St. Vincent de Paul St. Vincent de Paul, a new 40,000 square foot family resource center and expanded shelter located in Downtown Phoenix, has opened a new chapter of service for the organization as their first capital project in 25 years. This facility consists of 60 bedsits broken up into four dormitories for the homeless – each including its own restroom with two showers, three water closets and four sinks. First floor amenities include a service center, 18 showers, offices, employee break room, barber shop, kids corral, laundry service and a sauna that is utilized for eradicating bed bugs.
42 | March-April 2019
OWNER: Society of St. Vincent de Paul of Arizona DEVELOPER: Ryan Companies US, Inc. GENERAL CONTRACTOR: Ryan Companies US, Inc. PROJECT MANAGER: Ryan Companies US, Inc. ARCHITECT: Vehr/Webb Studio SUBCONTRACTORS: RKS Plumbing & Mechanical; Lifetime Plumbing;
Resource Flooring; K2 Electric; Ganado Painting and Wallcovering, Inc. SIZE: 40,848 SF VALUE: No fee project LOCATION: 320 W. Watkins St., Phoenix START/COMPLETION: July 2017 - May 2018
CAPITAL/TENANT IMPROVEMENT Make-a-Wish Foundation of America
WINNER
For its updated design, playful syncopation of elements is a recurring theme used to break down the monotony of the original 1980s brick structure purchased by Make-A-Wish. At the heart of the new headquarters the lobby is flooded with colored light from the dichroic filmed skylight above. OWNER: Make-a-Wish Foundation of America GENERAL CONTRACTOR:
Jokake Construction Services, Inc. PROJECT MANAGER: Jokake Construction Services, Inc. ARCHITECT: Worksbureau SUBCONTRACTORS: Gemini Millwork, Adobe Drywall, Mirror Works, Newgaard Mechanical, RMJ Electric SIZE: 87,000 SF VALUE: $8.41M LOCATION: 1702 E. Highland Ave., Phoenix START/COMPLETION: August 2017 - December 2018 HONORABLE MENTION
Renaissance Square Reposition This project includes a remodel of both lobbies, third floor conference and training facility, and modernized elevators. The lobby renovation was the most notable and included an effort to improve circulation between buildings. The refreshed Renaissance One Tower is now a technologydriven environment.
HONORABLE MENTION
The Grid Tenant Office Improvement The transformation of the formerly vacant building celebrates the existing structure while adding relevant spaces and amenities to attract local entrepreneurs and respond to the boom in coworking’s popularity. Because the tenant’s previous space was being demolished, the design team needed to work on a short schedule.
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OWNER: Cypress Office Properties DEVELOPER: Oaktree Capital Management GENERAL CONTRACTOR: Wespac Construction PROJECT MANAGER: Hines ARCHITECT: RSP Architects SUBCONTRACTORS: Peterson Associates Consulting Engineers,
Inc.; Forward Tilt; Barrett-Homes; Fine Line; Stone Finish, LLC SIZE: 16,000 SF VALUE: $3.5M LOCATION: 2 N. Central Ave., and 40 N. Central Ave., Phoenix START/COMPLETION: June 2016 - June 2018
OWNER: ABI Multifamily GENERAL CONTRACTOR: Alexander Building Company PROJECT MANAGER: Cresa ARCHITECT: Corgan SUBCONTRACTORS: Chamberlin Power; J Wolf
Mechanical; Styles Brothers Custom Millwork; Skyce Steel; Valley Wall Systems BROKERAGE: ABI Multifamily SIZE: 16,000 SF VALUE: $2.8M LOCATION: 5227 N. 7th St., Phoenix START/COMPLETION: November 2017 - April 2018
The Of f ices At
CH A NDLER V IR IDI A N H A S DELIV ER ED! CH A NDLER’S PR EMIER NE W
DE V E L OPM E N T • CL A S S A O F F I CE • RE TA I L • BROADSTONE FASHION CENTER RESIDENTIAL • CAMBRIA SUITES HOTEL
FOR LEASING INFORMATION: JERRY ROBERTS
PAT BOYLE
+1 602 229 5829 +1 602 229 5828 jerry.roberts@cushwake.com pat.boyle@cushwake.com
EDUCATION HONORABLE MENTION
WINNER
Phoenix College Physical Sciences Building
Arizona State University Biodesign Institute This project is a five-story research facility with a basement level that houses the world’s first compact X-ray free-electron laser. It is intended to be the most programmatically efficient laboratory on campus to support ASU’s goal of increasing research revenue to $835 million by 2025. The building is targeting LEED Platinum® and has an energy savings goal of 44 percent compared to existing campus laboratories.
HONORABLE MENTION
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OWNER: Arizona State University GENERAL CONTRACTOR: McCarthy Building
Companies, Inc. PROJECT MANAGER: McCarthy Building Companies, Inc. ARCHITECT: ZGF Architects SUBCONTRACTORS: The Berg Group; Kovach; Wilson
Electric; MGC, Inc.; Rouser Concrete SIZE: 191,035 SF VALUE: $99.2M LOCATION: 910 S. Rural Rd., Tempe START/COMPLETION: June 2016 - July 2018
Through careful planning, coordination and collaboration with Holly Street Studio, Ryan was able to help Phoenix College bring all their science departments under one roof and achieve their objectives for the new space. The original building was constructed in 1969, and was designed by renowned Phoenix architect Ralph Haver. OWNER: Maricopa Community College District GENERAL CONTRACTOR: Ryan Companies US, Inc. PROJECT MANAGER: Ryan Companies US, Inc. ARCHITECT: Ryan Companies US, Inc. SUBCONTRACTORS: DP Electric; CDS Framing; ISEC; Demers Glass; Diversified Metal Fabrication SIZE: 43,000 SF VALUE: $13M LOCATION: 1202 W. Thomas Rd., Phoenix START/COMPLETION: July 2017 - August 2018
Canyon View High School This 250,000 SF cutting-edge high school serves as a basis of research while providing a modern classroom setting for its staff and students. Students are able to work and study in flex spaces around campus, dine in their student union, and utilize their technology-based library. Furniture can be rearranged according to student and teacher needs. OWNER: Agua Fria Union High School District GENERAL CONTRACTOR: Chasse Building Team PROJECT MANAGER: Chasse Building Team ARCHITECT: DLR Group SUBCONTRACTORS: Stonecold Masonry; Universal Piping; L.R. Cowan Concrete Company; Pueblo Mechanical; Schuff Steel Company SIZE: 233,700 SF VALUE: $75.76M LOCATION: 6024 N. Perryville Rd., Waddell START/COMPLETION: March 2017 - July 2018
SkySong The ASU Scottsdale Innovation Center
The Mint Historic Multifamily Renovation in Downtown LA
Park Central Mixed-Use Creative Office Campus with Retail
Camelback Collective 115,000 SF Office and 160-Room AC by Marriott
DISTINCTIVE NAME, DISTINCTIVE PROJECTS. Holualoa Companies is a real estate investment firm managing assets that span the United States and Europe. Holualoa invests strategically in office, retail, industrial, multifamily, hotel and mixed-use properties. With a 30-year track record of success, our skilled and ambitious management team produces steady results through unsteady markets by leveraging our talent and experience to serve our investors. We are proud to be involved in some of Arizona’s most successful, high-profile real estate projects. To learn more, visit www.holualoa.com.
Stan Shafer, COO · Richard Kauffman, CFO · Aroon Chinai, CIO
1365 N Scottsdale Rd, Suite 110 · Scottsdale, AZ 85257, USA · (480) 829-5757
HEALTHCARE WINNER
Adelante Healthcare Goodyear
HONORABLE MENTION
Cawley Architects and triARC architecture & design carried out the design visions for the multifaceted healthcare community center. LGE Design Build worked closely with its design team and the developer to deliver a sustainable and efficient building. The project included challenges of constructing an undulating masonry faรงade hung from the steel structure. OWNER: Goodyear Medical L.P. DEVELOPER: Goodyear Medical L.P. GENERAL CONTRACTOR: LGE Design Build PROJECT MANAGER: LGE Design Build ARCHITECT: Cawley Architects SUBCONTRACTORS: Sharp Creek Contracting; Phoenix Commercial Electric; Procon; Desert Structures; S&D Sheet Metal SIZE: 44,703 SF VALUE: $8.2M LOCATION: 13471 W. Cornerstone Blvd., Goodyear START/COMPLETION: April 2018 - December 2018 HONORABLE MENTION
Sun Health Grandview Terrace The Sundt team was able to accomplish a complete transformation of the Grandview Terrace property over two years while serving as a neighbor and a friend to those living there. The project involved 280 rooms on six levels of corridors that included residential units, office space, common areas and amenity spaces. OWNER: Sun Health Services GENERAL CONTRACTOR: Sundt Construction, Inc. PROJECT MANAGER: Sundt Construction, Inc. ARCHITECT: Todd & Associates, Inc. SUBCONTRACTORS: JFK Electrical Contracting Enterprises; Milling Machinery, Inc.; Penington Painting Company, LLC; AME Landscape Companies, Inc.; Rhino Masonry, Inc. VALUE: $13.5M LOCATION: 14515 W. Granite Valley Dr., Sun City West START/COMPLETION: December 2016 - December 2018
Estrella Medical Plaza II Banner Estrella Medical Center is a 317-bed full service community hospital offering a variety of medical services, including cardiac care, emergency services, maternity services, orthopedics and general surgery. It is a state-ofthe-art, Class A, 64,000-square-foot medical office building designed to complement the existing hospital and nearby medical buildings.
48 | March-April 2019
OWNER: Plaza Companies DEVELOPER: Plaza Companies GENERAL CONTRACTOR: Okland Construction PROJECT MANAGER: Okland Construction ARCHITECT: Butler Design Group SUBCONTRACTORS: Apodaca Wall Systems;
Hardrock Concrete Placement; Kearney Electric; TD Industries; Wholesale Floors, LLC. BROKERAGE: Plaza Companies SIZE: 60,000 SF VALUE: $16M LOCATION: 9321 W. Thomas Rd., Phoenix START/COMPLETION: December 2017 - December 2018
Let’s make your vision a reality. Our work addresses the many challenges faced by healthcare organizations and facilities today. We seek to optimize workflows, streamline processes, and increase safety—hallmarks of spaces designed for health and healing.
2017 AzASLA HONOR AWARD
8900 E. Bahia Dr., Suite 300, Scottsdale | archsolteam.com
DP Electric, 28+ years as a dedicated trade partner. Leading Arizona in Mission Critical, Healthcare, Corporate Office, Aviation, Higher Education, Hospitality, Renewable Energy and Medium Voltage.
dpelectric.com DEPENDABLE PEOPLE | DEPENDABLE PERFORMANCE
BUILT TO
GROW THE COMMUNITY
Great Wolf Lodge, Scottsdale
GRIT
PERSEVERANCE GETS THE JOB DONE RIGHT. suntecconcrete.com
HOSPITALITY Phoenician Resort The 250-acre, 645-room luxury resort near Camelback Mountain completed its largest renovation project the hotel has ever experienced. The renovations included the main lobby, a spacious entrance leading to personalized welcome desks, as well as a relocated concierge service area; updated shops and cafès; the pool complex has been expanded with additional deck space with more VIP seating; a new waterslide and an adult-only hot tub compliments the signature Mother of Pearl pool. The Centre for Well-Being Spa is replaced by the Phoenician Spa. In addition, 7 tennis courts, 2 pickleball courts, and a tennis clubhouse also were completed. OWNER: Host Hotels DEVELOPER: Host Hotels GENERAL CONTRACTOR: Kitchell PROJECT MANAGER: Kitchell ARCHITECT: Houston/Tyner SUBCONTRACTORS: Able Steel, Berg Electric; Midstate Mechanical; NKW; Western Millwork SIZE: 200,000 SF VALUE: $42M LOCATION: 6000 E. Camelback Rd., Scottsdale START/COMPLETION: May 2017 - June 2018 HONORABLE MENTION
Cambria Hotel — Chandler Cambria Hotel — Chandler is part of the Chandler Viridian development, which is a premier mixed-use development integrating residential, Class A office, hospitality and retail developments. Some of the unique and special features of the project included a unique exterior curtainwall façade and louver system that required regular coordination between the owner, designer and contractor. OWNER: Concord Hospitality Enterprises Co. DEVELOPER: Concord Hospitality Enterprises Co. GENERAL CONTRACTOR: Layton Construction ARCHITECT: DLR Group SUBCONTRACTORS: ABS Flooring Covering; SPG; Precision Glass and Glazing; Rondo Pools; Elkay SIZE: 78,000 SF VALUE: $11.9M LOCATION: 3165 W. Frye Rd., Chandler START/COMPLETION: November 2016 - January 2018 52 | March-April 2019
WINNER
Harrah’s Ak-Chin Casino Resort Expansion The Harrah’s Ak-Chin Casino Resort Expansion includes a new 13-story hotel tower, spa, expanded gaming space, new restaurants, a multi-purpose event center, and a new bingo hall. The expansion was designed to complement the existing resort-style guest suites by integrating contemporary design, enhanced connectivity to the casino, and expansive views across the agricultural landscape of the Ak-Chin Indian Community. HONORABLE MENTION
OWNER: Ak-Chin Indian Community DEVELOPER: Ak-Chin Indian Community GENERAL CONTRACTOR: Sundt Construction
in joint venture with Yates Construction PROJECT MANAGER: Sundt Construction ARCHITECT: TBE Architects SUBCONTRACTORS: Sundt Construction;
TD Industries; MKB Construction; Edwards Electric; Aero Automatic SIZE: 388,000 SF LOCATION: 42507 W. Peters & Nail Rd., Maricopa START/COMPLETION: July 2016 - June 2018
A bright new vision is taking shape...
SAINT LAURENT OCEAN 44 TRINA TURK APPLE LOUIS VUITTON BOTTEGA VENETA OMEGA ST. JOHN BREITLING HUBLOT IWC SCHAFFHAUSEN Coming Soon CAESARS REPUBLIC SCOTTSDALE NOBU TOCA MADERA
TOCAYA ORGANICA
Luxury Expansion visit FashionSquare.com #StoryStyleSpirit 20192017 FINALIST
INDUSTRIAL Lincoln Logistics 40 Lincoln Logistics 40 boasts a 910,700-square-foot footprint. More than 20 acres can fit under its one roof. It has remarkable 40’ clear height ceiling, a 1,900-foot-long private drive with the ability to cue more than 90 full-size semi-truck trailers, 169 dockand grade-level doors, storage for 185 trailers, up to 660 parking stalls and fiber optic data. OWNER: Lincoln Property Company DEVELOPER: Lincoln Property Company GENERAL CONTRACTOR: Layton Construction Company PROJECT MANAGER: Lincoln Property Company ARCHITECT: Butler Design Group SUBCONTRACTORS: Suntec Concrete; AF Steel Fabrication; Olympic West Fire Protection; Integrity Electrical Services Company; Sunland Asphalt BROKERAGE: CBRE SIZE: 901,700 SF VALUE: $85M LOCATION: 575 S. 143rd Ave., Goodyear START/COMPLETION: December 2017 - December 2018 HONORABLE MENTION
WINNER
Ball Manufacturing This is a state-ofthe-art aluminum can manufacturing facility producing millions of cans each year. The facility is the most technologically advanced can manufacturing facility in the country. The design and build of this 494,741 SF facility took under 12 months.
HONORABLE MENTION
Central Admixture Pharmacy The 200,000 square foot facility includes space for manufacturing, administration and distribution and represents a significant expansion for CAPS and their production of sterile pharmaceutical compounds for use in hospitals and healthcare centers. It is one of the first of its kind in the Phoenix market.
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OWNER: Ball Beverage Container Corporation DEVELOPER: Merit Partners GENERAL CONTRACTOR: The Renaissance Companies ARCHITECT: Butler Design Group SUBCONTRACTORS: PK Associates; Kraemer
Engineering Inc.; TDI Industries; Energy Systems Design Inc.; AME Electrical BROKERAGE: CBRE SIZE: 494,741 SF VALUE: $52.5M LOCATION: 4455 N. Cotton Lane, Goodyear START/COMPLETION: May 2017 - March 2018
OWNER: Central Admixture Pharmacy, Inc. DEVELOPER: JLL GENERAL CONTRACTOR: Layton Construction PROJECT MANAGER: JLL ARCHITECT: Deutsch Architecture Group SUBCONTRACTORS: Canyon State Electric; Comfort
Systems; Adobe Drywall; North West Floor and Wall; Mercatus International SIZE: 200,000 SF VALUE: $13.4M LOCATION: 2200 S. 43rd Ave., Phoenix START/COMPLETION: April 2018 - September 2018
www.RMJelectric.com
phone: (623) 434-5700
INTERIORS HONORABLE MENTION
WINNER
Cantor Law Group Office
Indeed.com Regional Office Corgan focused on designing a space that could keep up with the young talent pouring in through a workspace packed with amenities such as a large café fully stocked with beverages and snacks, beer and cold brew on tap and a fitness center complete with showers, a wellness room and a designated meditation room. The grand corridor is flooded with natural light and is utilized for informal mingling and meeting.
HONORABLE MENTION
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OWNER: Indeed.com GENERAL CONTRACTOR: Novo Construction PROJECT MANAGER: Cresa ARCHITECT: Corgan SUBCONTRACTORS: Crown Custom Millwork; Aspen
Electric; CFM Mechanical; Wholesale Floors; Magnum Companies BROKERAGE: CBRE SIZE: 52,000 SF VALUE: $7.5M LOCATION: 4343 N. Scottsdale Rd., Scottsdale START/COMPLETION: November 2017 - July 2018
The Cantor Law Group office is a testament to design supportive of client and culture. A true collaboration between David Michael Cantor, Joo Cantor and the design team, the resulting office environment reflects the intensity and boldness of David’s law practice, one that is proudly “beyond aggressive.” OWNER: Cantor Law Group GENERAL CONTRACTOR: Layton Construction PROJECT MANAGER: Hines ARCHITECT: Gensler SUBCONTRACTORS: MEP Engineering SIZE: 13,130 SF LOCATION: 40 N. Central Ave., # 2310 START/COMPLETION: July 2017 - May 2018
JDA Software Customer Experience Center JDA’s first Customer Experience Center, dubbed “JXC,” injects technology into every opportunity of the 13,000- square-foot space—developing a program and design that overhauls the traditional showroom with large touchscreen displays, interchangeable wall panels, clear acrylic floor tiles with reactive sensor lighting, and flexible furniture. OWNER: JDA Software GENERAL CONTRACTOR: Jokake Construction PROJECT MANAGER: Hines ARCHITECT: Corgan SUBCONTRACTORS: DP Electric; Newgaard Mechanical; Wholesale Floors; Fine Line Cabinetry; CIS/DIRTT BROKERAGE: CBRE and Cushman & Wakefield SIZE: 13,000 SF VALUE: $3M LOCATION: 15059 N. Scottsdale Rd., # 300, Scottsdale START/COMPLETION: April 2017 - May 2018
Whiting-Turner is proud to be part of the Chandler Viridian team.
CONSTRUCTION MANAGEMENT | GENERAL CONTRACTING | DESIGN-BUILD | INTEGRATED PROJECT DELIVERY WWW.WHITING-TURNER.COM
MIXED-USE Union Tempe
WINNER
Union Tempe, a mixed-use, high-rise infill development in Downtown Tempe, sits on a 3.22acre site and is comprised of one hotel tower and two residential towers totaling 407 units on top of a four-story podium base that includes structured parking, 10,000 square feet of creative office space and approximately 20,000 square feet of restaurant and retail space. OWNER: Opus Development Company and EDR Trust DEVELOPER: Opus Development Company GENERAL CONTRACTOR: Sundt Construction PROJECT MANAGER: Sundt Construction ARCHITECT: Opus AE Group SUBCONTRACTORS: Wilson Electric; E&K; Stehl; Southland Engineering; Walkers & Wolf BROKERAGES: Cushman & Wakefield and Phoenix Commercial Advisors SIZE: 806,081 SF VALUE: $120M LOCATION: 712 S. Forest Ave., Tempe START/COMPLETION: February 2017 - July 2018 HONORABLE MENTION
HONORABLE MENTION
Camelback Collective
Eldorado on 1st
The Class A, LEED certified, four-story, 115,000-square-foot office building features floor to ceiling glass offering unparalleled views to Piestewa Peak, Camelback Mountain, and Biltmore Golf Course. The adjacent 160-room AC Marriott Hotel shares a central courtyard with the office and enjoys the same views while preserving the privacy of hotel guests and the residential neighborhood to the south. OWNER: Holualoa Companies and LaPour Companies DEVELOPER: Holualoa Companies and LaPour Companies GENERAL CONTRACTOR: Graycor Construction Company, Inc. PROJECT MANAGER: Graycor Construction Company, Inc. ARCHITECT: RSP Architects SUBCONTRACTORS: Suntec Concrete; Pete King Drywall; Aero Automatic; Wilson Electric; HACI Mechanical BROKERAGE: Cushman & Wakefield SIZE: 339,000 SF VALUE: $80M LOCATION: 2801 and 2811 E. Camelback Rd., Phoenix START/COMPLETION: January 2017 - October 2018
North American Development Group (NADG) teamed up with renowned local architect Will Bruder to complete the Eldorado on 1st building. It offers a limited collection of urban homes and creative office space unlike anything in the market. The luxury residences include the highest quality materials, state-of-the-art bulthaup b3 kitchens, and a range of carefully selected finishes. OWNER: NA Eldorado LP DEVELOPER: North American Development Group GENERAL CONTRACTOR: Frontera Building Company PROJECT MANAGER: Will Bruder Architects ARCHITECT: Will Bruder Architects SUBCONTRACTORS: bulthaup kitchens; Pioneer Masonry; Ranbro Steel Works; Western Building Group Metals; Digital Home Lifestyles Audio Video Consultants BROKERAGE: Sotheby’s Russ Lyon SIZE: 30,000 SF VALUE: $15M LOCATION: 6901 E. 1st St., Scottsdale START/COMPLETION: June 2016 - December 2018
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COMMERCIAL ■ SERVICE ■ LEED ■ HOSPITALIT Y hacimechanical.com 602.944.1555 ■ HEALTHCARE ■ SENIOR LIVING ■ AVIATION RETAIL HOSPITALIT Y ■ HIGH-RISE ■ GOVERNMENT ■ RETAIL ■ COMMERCIAL ■ SERVICE ■ HIG SERVICE ■ AVIATION Mechanical Experts. Upholding Traditions. Every Project.
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MULTIFAMILY Alta San Marcos Alta San Marcos is a vibrant apartment community along the historic San Marcos Golf Course, near Downtown Chandler. It features ample community amenities including multiple pools, heated spa, cabanas, putting green, grill stations, fitness + yoga studio, business center and a view deck overlooking the course. OWNER: Wood Partners DEVELOPER: Wood Partners GENERAL CONTRACTOR: Wood Partners PROJECT MANAGER: Wood Partners ARCHITECT: Wood Partners LOCATION: 445 W. Chandler Blvd., Chandler
WINNER
HONORABLE MENTION
Circa Central Avenue Circa Central Avenue is a six-story project that includes four levels of residential apartments over two levels of parking, as well as five, two-story townhomes and two creative office suites. Studio Meng Strazzara of Seattle, Wash., captured the energy of this site by incorporating popular amenities including a 24-hour fitness center, juice bar, two amenity decks and a bike café. OWNER: Tilton Development Company, Hunt Companies & Ryan Companies US, Inc. DEVELOPER(S): Tilton Development Company, Hunt Companies & Ryan Companies US, Inc. GENERAL CONTRACTOR: Ryan Companies US, Inc. PROJECT MANAGER: Ryan Companies US, Inc. 60 | March-April 2019
Aviva Aviva boasts numerous resort-style amenities including one of the largest pools in Arizona. Aviva has created an amenity-rich, smart apartment community. Combining luxury and sustainable building features, Aviva brings green living to the suburbs by offering in-home features like high efficiency laundry units and energy smart lighting fixtures.
OWNER: Housing Trust Group DEVELOPER: Housing Trust Group GENERAL CONTRACTOR: Chasse Building Team PROJECT MANAGER: Chasse Building Team ARCHITECT: Biltform Architecture Group SUBCONTRACTORS: 3G Door & Trim; JFN
Plumbing; KDM Masonry; Stehl Corp.; Bass Cabinets BROKERAGE: Housing Trust Group SIZE: 394,046 SF VALUE: $36.5M LOCATION: 8530 E. Baseline Way, Mesa START/COMPLETION: December 2016 - May 2018
HONORABLE MENTION
ARCHITECT: Studio Meng Strazzara SUBCONTRACTORS: Designer’s Choice
Painting; RKS Plumbing & Mechanical; JFN Mechanical; SPG Construction, Inc.; S Diamond Steel
SIZE: 283,000 SF LOCATION: 1505 N. Central Ave., Phoenix START/COMPLETION: June 2017 -
December 2018
Committed
TO
BUILDING COMMUNITY FOR A BETTER TOMORROW
Together, with the Opus FoundationÂŽ, we are partnering with impactful organizations to create and strengthen opportunities for communities to thrive. In 2018, we were proud to support the following local organizations: A New Leaf Ability 360 Arizonans for Children Child Crisis Arizona Downtown Tempe Foundation Habitat for Humanity of Central AZ Junior Achievement of Arizona New Pathways for Youth Society of St. Vincent de Paul Sunshine Acres Children's Home Tempe Community Action Agency The Salvation Army - SW Division Valley of the Sun United Way
Visit opus-group.com/company/giving to read more about how we’re impacting communities.
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INNOVATE COLLABORATE PLUG IN
A Co-Work Experience Located in uptown phoenix Collaborative Work Spaces Artist-Themed Conference Rooms Private Phone Rooms Fully Stocked Coffee Bar + Breakroom
Special Thanks To Corgan, Cresa, Alexander Building Company, Inc. & ABI Multifamily for making The GRID possible.
©
The GRID.
5227 North 7th Street, Phoenix, AZ 85014
602.714.9008
www.thegrid.works
OFFICE: LARGE WINNER
Liberty Building 4 This is a LEED Gold office build-to-suit. Exterior building features include a faรงade of more than 50 percent high efficiency glass, natural stone veneers and metal trellises for a sophisticated yet natural aesthetic. Interior features include a 10,000 SF full-service commercial kitchen, food court and dining area with covered outdoor seating. OWNER: Liberty Property Trust DEVELOPER: Liberty Property Trust GENERAL CONTRACTOR: Wespac Construction PROJECT MANAGER: Wespac Construction ARCHITECT: RSP Architects SUBCONTRACTORS: Schuff Steel; Suntec Concrete; Coreslab; Wilson Electric; Alpine Mechanical BROKERAGE: CBRE SIZE: 244,000 SF LOCATION: 1870 W. Rio Salado Pkwy., Tempe START/COMPLETION: October 2016 January 2018
HONORABLE MENTION
HONORABLE MENTION
McKesson at Chaparral Commerce Center
OWNER: Ryan Companies US, Inc. DEVELOPER: Ryan Companies US, Inc. GENERAL CONTRACTOR: Ryan Companies US, Inc. The Chaparral Commerce Center is strategically located on Salt River Pima- PROJECT MANAGER: Ryan Companies US, Inc. ARCHITECT: Butler Design Group Maricopa Indian Community land in the heart of the Scottsdale Technology SUBCONTRACTORS: Suntec Concrete; Bell Steel; Sun
Corridor. The state-of-the-art campus is a modern workspace that promotes collaboration and wellness. The facility features LEED for Commercial Interiors (LEED-CI) certification and is the first WELL certified building in Arizona.
Offices at Chandler Viridian
OWNER: Hines DEVELOPER: Hines GENERAL CONTRACTOR: Whiting-Turner The six-story Offices at Chandler Viridian is the capstone to the mixed- PROJECT MANAGER: Hines use project. The building is now the ARCHITECT: RSP Architects SUBCONTRACTORS: Trademark Visual; Service Direct tallest multi-tenant office building
in Chandler. Hines completed an ambitious 14-month construction cycle for the office building, which is the only recent new construction of a mid-rise, multi-tenant Class A office building of this height in the Southeast Valley. 64 | March-April 2019
Tech Glass; DP Electric; HACI Mechanical
BROKERAGE(S): Cushman & Wakefield and CBRE SIZE: 274,874 SF LOCATION: 5601 and 5701 N. Pima Rd., Scottsdale START/COMPLETION: September 2016 - February 2018
Landscape; Bergelectric; Indigo Painting and Contracting; Fine Line Cabinetry BROKERAGE: Cushman & Wakefield SIZE: 260,000 SF VALUE: $70M LOCATION: 3133 W. Frye Rd., Chandler START/COMPLETION: September 2017 - December 2018
AZRE Red Awards Finalists
Creating structures that unite a community.
Northern Trust Building 2 Freedom Financial Phase 1 & 2 Liberty Building 4 Renaissance Square Reposition
9440 N 26th St, Phoenix, AZ 85028
602.956.1323
wespacaz.com
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OFFICE: SMALL/MEDIUM WINNER
Northern Trust Building 2 Certified LEED Silver, Northern Trust Building 2 marries clean lines and unencumbered architectural details with sustainable features for maximum energy efficiency. The building was constructed with high-efficiency mechanicals, HVAC and insulation. The use of glass and metal as the building’s primary building envelope speak to a high-tech, forward-leaning mindset. OWNER: Wentworth Property Company DEVELOPER: Wentworth Property Company GENERAL CONTRACTOR: Wespac Construction PROJECT MANAGER: Wentworth Property Company ARCHITECT: The Davis Experience SUBCONTRACTORS: Coreslab Structures; KT Fabrication; DP Electric; Hard Rock Concrete; Pete King Construction BROKERAGE: JLL SIZE: 150,000 SF LOCATION: 2190 E. Elliot Rd., Tempe START/COMPLETION: 3rd Qtr. 2017 - 3rd Qtr. 2018 HONORABLE MENTION
HONORABLE MENTION
Chandler Corporate Center Designed for maximum flexibility, the 121,000 square-foot, two-story office building project can accommodate full building, full floor or multiple tenants. The site provides ample parking with the ability to install covered parking for over 220 parking stalls. The site has an optional outdoor employee amenity area and is also designed to accommodate future generations.
Freedom Financial Phase I Freedom Financial Phase I is a new, build-to-suit, 4-story building that features steel construction, a glass curtain wall and a unique 298,178 square foot parking garage. The interior features an open office space consisting of meeting and training areas, with an executive boardroom and offices on the top floor.
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OWNER: VanTrust Real Estate DEVELOPER: VanTrust Real Estate GENERAL CONTRACTOR: Layton Construction ARCHITECT: Butler Design Group SUBCONTRACTORS: Suntec Concrete; Roofing
Southwest; Integrity Electrical; Design Drywall; Bell Steel SIZE: 121,386 SF LOCATION: 350 N. McClintock, Chandler START/COMPLETION: November 2017 - July 2018
OWNER: Boyer Rio 2100 DEVELOPER: Boyer Rio 2100 GENERAL CONTRACTOR: Wespac Construction PROJECT MANAGER: Wespac Construction ARCHITECT: Butler Design Group SUBCONTRACTORS: Saguaro Steel; Ryan Mechanical;
Suntec Concrete; Roofing Southwest; Coreslab Structures BROKERAGE: JLL SIZE: 159,150 SF VALUE: $34.1M LOCATION: 2112 and 2114 E. Rio Salado Pkwy., Tempe START/COMPLETION: April 2017 - April 2018
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REDEVELOPMENT Consumer Cellular The building was originally constructed in 1987 to be a typical warehouse retail Sam’s Club. Designed by Studio Ma and constructed by Willmeng Construction, it now has a beautiful entry showcasing a contemporary, open-air staircase, an industrial feel and modern, inviting decor, all in a collaborative work environment. OWNER: Everest Holdings DEVELOPER: Everest Holdings GENERAL CONTRACTOR: Willmeng Construction PROJECT MANAGER: Realty Asset Advisors ARCHITECT: Studio Ma SUBCONTRACTORS: Wilson Electric; ProSteel Erectors; Resource Arizona; Sunland Asphalt; Riggs Companies BROKERAGE: CBRE and Capacity Commercial Group SIZE: 163,607 VALUE: $7.5M LOCATION: 17500 Black Canyon Hwy., Phoenix START/COMPLETION: October 2017 - April 2018
HONORABLE MENTION
HONORABLE MENTION
WINNER
HUB 317 HUB 317 is a 224,931-square-foot development that has successfully transformed a long-vacant and functionally obsolete Sam’s Club big box. The development team, along with general contractor Graycor Construction Company, fully renovated the existing 115,286-square-foot big box into modern office, warehouse/ distribution and mezzanine space with 24-foot clear heights.
Katerra Sigma Contracting, Inc. converted a 38-year-old concrete tilt panel distribution building into a stateof-the-art manufacturing facility. Richard + Bauer Architects was retained to create a design from the ever-evolving Katerra vision. They focused on setting up production lines that created wall panels, trusses, floor panels, and a fullservice millwork shop.
OWNER: DPC Companies and Confluent Development DEVELOPER: DPC Companies and Confluent Development GENERAL CONTRACTOR: Graycor Construction Company PROJECT MANAGER: DPC Companies ARCHITECT: Ware Malcomb SUBCONTRACTORS: SDC, Inc.; Hawkeye Electric;
Riggs Concrete; Panelized Structures; AEC Contracting BROKERAGE: Lee & Associates SIZE: 224,931 SF VALUE: $17.3M LOCATION: 317 S. 48th St., Phoenix START/COMPLETION: December 2017 - June 2018
OWNER: Golding Property Group DEVELOPER: Katerra GENERAL CONTRACTOR: Sigma Contracting PROJECT MANAGER: Sigma Contracting ARCHITECT: Richard + Bauer Architects SUBCONTRACTORS: R&M Concrete; J Wolf Mechanical;
Structural Steel; State Electric; Starkweather Roofing, Inc. BROKERAGE: JLL and CBRE SIZE: 240,000 SF VALUE: $7.9M LOCATION: 624 N. 44th Ave., Phoenix START/COMPLETION: 4th Quarter 2016
- 1st Quarter 2018
68 | March-April 2019
AZBIGMEDIA INTRODUCES
MADE IN ARIZONA
Made in Arizona magazine will cast the spotlight on manufacturing and examine the road to market, how to scale, emerging technologies and will profile some of the amazing products and innovations that are created in Arizona.
COMING SUMMER 2019 To be a part of MADE IN ARIZONA Call 602-277-6045
RETAIL Scottsdale Fashion Square LUX Wing Renovation
WINNER
The mall’s north entrance, off Goldwater Boulevard and Highland Avenue, was recently transformed into a two-story entry point with a Swarovski-inspired grand chandelier, a luxury valet and valet lounge. The new wing is anchored by Neiman Marcus and Dillard’s on the west side of the mall and features resort-style restrooms with hand-painted tile and Italian marble. OWNER: Macerich DEVELOPER: Macerich GENERAL CONTRACTOR: Kitchell PROJECT MANAGER: Kitchell ARCHITECT: JPRA Architects SUBCONTRACTORS: The Kapture Group; Swanson Rink; The Structural Alliance SIZE: 118,000 SF VALUE: $44M LOCATION: 7014 E. Camelback, Scottsdale START/COMPLETION: January 2018 - November 2018
HONORABLE MENTION
Carvana Tempe Vending Machine As an integral part of the Carvana customer fulfillment center, the Tempe car vending machine rises 84’ above grade and is clad with clear glass allowing 360 degree viewing of the stored vehicles. The overall exterior architecture consists of clean lines of stucco and glass. OWNER: Carvana, LLC DEVELOPER: Carvana, LLC GENERAL CONTRACTOR: Parkway C&A, LP PROJECT MANAGER: Carvana, LLC ARCHITECT: WHN SUBCONTRACTORS: Lindsay Glass Systems; Jones Concrete Construction, LLC; J&M Glass, LLC; Aero Automatic Sprinkler Company; Assa Abloy Entrance Systems US, Inc.; BROKERAGE: SRS Real Estate Partners SIZE: 8,300 SF LOCATION: 707 E. Gilbert Dr., Tempe START/COMPLETION: 2017 - June 2018 70 | March-April 2019
Overstreet Overstreet’s design is a product of its site. Sitting right in the center of the site is a building that cannot be moved, Century Link’s main fiber hub for the SE Valley. Architecture is a striking balance of 4” high block, huge canopies, and vertical steel elements. HONORABLE MENTION
OWNER: DT Chandler, LLC DEVELOPER: DBM Development GENERAL CONTRACTOR: LGE Design Build PROJECT MANAGER: LGE Design Build ARCHITECT(S): Brick & West and Cawley Architect SUBCONTRACTORS: Phoenix Commercial Electric;
Fyffe Masonry; Milam Glass, Sharp Creek; ARC Steel SIZE: 78,540 SF VALUE: $32M LOCATION: SW Corner of Arizona Ave. and
Chandler Blvd., Chandler START/COMPLETION: February 2018 - December 2018
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