AZRE magazine March/April 2015

MARCH-APRIL 2015

10 th ANNUAL

Inside:

West Valley p. 30 Routing development

IREM p. 34

Managing change

CoreNet p. 36 Customizing corporate

When You Need Direction Today’s dynamic commercial real estate environment presents real estate owners, managers, developers, lenders and investors with exciting opportunities. Buchalter Nemer real estate attorneys offer sound professional advice and guidance, when you need direction.

In Arizona, please contact

Paul M. Weiser, Esq.

480.383.1823 pweiser@buchalter.com 16435 North Scottsdale Road, Suite 440 Scottsdale, Arizona 85254-1754 www.buchalter.com

A decade to remember

T

hanks to the rapid pace of Phoenix Metro’s development, I get to say “I remember when” a lot more than other people my age.

This year, AZRE celebrates its 10th annual RED Awards. Since 2006, it has recognized more than 100 leading companies, outstanding projects and stellar brokerage teams in Arizona. Flipping through AZRE’s archives in preparation for this year’s awards, it’s clear the annual awards have recognized some of the Valley’s best.

The beautiful Mesa Arts Center was one of the first winners.

As was Scottsdale Waterfront and Banner Gateway Medical Center (then, the biggest building in Gilbert), SkySong, Tempe Marketplace and the ASU Foundation building. There are many, many familiar faces in the brokerage categories over the years — some who still use the same headshot more than a decade later. See this year’s RED Awards winners and finalists on page 43.

Speaking of earlier days, I remember when the Loop 303 seemed like not much more than a two-lane country road.

Now it’s a sleek, hilly freeway on which I have twice missed my exit because I got distracted enjoying it (capital-T true story). Read more about the loop’s influence on the West Valley on page 30.

Also in this issue are articles about redesigning corporate real estate (page 36), development roles of property managers in the Valley (page 34) and construction trends in Indian Country (page 26).

I am also proud to present the new “Up Front” section of AZRE magazine, which contains stories about crowdfunding real estate, legality of music licensing issues for multifamily property managers and a rad infill and adaptive reuse project coming into downtown Phoenix, called Containers on Grand.

Enjoy, Amanda

Amanda Ventura Editor, AZRE amanda.ventura@azbigmedia.com 2 | March-April 2015

President and CEO: Michael Atkinson Publisher: Cheryl Green Vice president of operations: Audrey Webb EDITORIAL Editor in chief: Michael Gossie Editor: Amanda Ventura Interns: Kaci Demarest, Maria Lopez, Katie Malles, Tyler Walker, Jade Yeban AZRE | Arizona Commercial Real Estate Director of sales: Jeff Craig ART Art director: Mike Mertes Graphic designer: Shavon Thompson Design intern: Laura Burnett DIGITAL MEDIA Director of digital sales: Mark Blum Web developer: Eric Shepperd Digital coordinators: Ashley Incardone | Robin Sendele MARKETING/EVENTS Manager: Angela Vaughn Marketing coordinator: Lorin Parkhurst Interns: Lea Martin OFFICE Special projects manager: Sara Fregapane Executive assistant: Mayra Rivera Database solutions manager: Cindy Johnson Az BUSINESS MAGAZINE Senior account manager: David Harken Account managers: Ann McSherry | Shannon Spigelman AZ BUSINESS LEADERS Director of sales: Mark Blum RANKING ARIZONA Director of sales: Sheri King EXPERIENCE ARIZONA | Play Ball Directors of sales: Megan Gould | Ryan Moore AZ BIG MEDIA HOME SHOWS SCOTTSDALE HOME & TRAVEL SHOW Exhibit directors: Kerri Blumsack | Tina Robinson 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. ©2015 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 AZRE Source

5 1

12 New to Market

16 Big Deals 20 After Hours

22 Legislative Update

26 Construction in Indian Country

E M

30 West Valley Update

G I B Z A

34 Institute of Real Estate Management

36 CoreNet Global - Arizona

A I D

43

0 2

6

12

26

36

43 10th annual RED Awards

©

On the Cover: Illustration by Shavon Rose

GO TO store.azBIGmedia.com to purchase subscriptions, digital issues and plaques

4 | March-April 2015

30 YEARS OF EXCELLENCE

3101 N. Central Avenue Suite 1070 Phoenix, Arizona 85012 (602) 277-6045 azBIGmedia.com

AZRE SOURCE

STRENGTH IN NUMBERS Crowdfunding bullish on real estate

By Amanda Ventura

C

rowdfunding isn’t just about raising capital for smart watches, giant batches of potato salad or unexpected life events. It’s increasingly an online marketplace used by real estate investors around the country. Massolution reported last April that crowdfunding platforms raised $2.7 billion for more than a million campaigns in 2012. It went on to predict, as reported by Fortune magazine, that by 2025 the global crowdfunding market would see business between $90 billion and $96 billion — two times the size of the current venture capital industry, per a 2013 study by World Bank.

Justin Hughes

©

COOLEST INCUBATORS IN PHOENIX METRO Incubators are spaces outfitted with support staff, equipment and made available at low rent to new, small businesses. From trendy digs to attractive benefits, here are the best places to put all your eggs in a basket.

 BioAccel Location: 2702 N. 3rd St., #3001, Phoenix Dictum: “We help Arizona reach its potential by helping Arizona’s entrepreneurs reach their potential.”

Candidates: Early stage medical device companies Unique features: BioAccel offers wrap-around support to early stage medical companies, including seed capital, technical assistance, access to a nationwide network of industry representatives and access to discounted lab and office space.

6 | March-April 2015

Realty Mogul, Co., Co-founder and CTO Justin Hughes likens getting in on the ground floor to people who reserved email addresses in the early ‘90s, before it became mainstream.

“Sometimes we’re rewarded for being the early adopter,” says Hughes. “If it hits, you’re front in line.”

The recovery, in part, paved the way for crowdfunding, he says. Investors wanted to deploy capital in a market without a lot of opportunities to invest.

About 7 percent of the U.S. population is considered an accredited investor, says Hughes. An accredited investor is someone who is worth $1M outside of his or her primary residence.

Last June, downtown Phoenix’s 7th and Gate Center became one of the largest commercial transactions in Arizona to be crowdfunded. Cole Value Partners brought the opportunity to online real estate investing marketplace RealtyShares, which

underwrote it and then listed it for funding on its online platform. It takes only minutes for a registered investor to complete the funding process once he or she reviews the opportunity information, says Nav Athwal, cofounder and CEO of RealtyShares.

It took a little over a week to raise $750,000 for 7th and Gate Center.

“Investors are no longer restricted to investing only in their backyard and can instead passively invest with a qualified real estate sponsor in markets that otherwise would not be accessible,” says Athwal. RealtyShares is especially bullish on regions with population and job growth or a lack of cap rate or valuation compression, such as Dallas, Seattle, Chicago, Portland and Phoenix.

“Phoenix is especially attractive for office and retail assets due to an improving job market, which is contributing to reduced vacancy rates,” he says.

A I D

E M

G I B Z A Nav Athwal

5 1

7th and Gate Center

 High Tide @ Luhrs City Center Location: 11 W. Jefferson St., #100 Dictum: “High Tide is a startup commercialization program that enables entrepreneurs to build their products and take them to market...faster.”

Candidates: Digital/software/internet/mobile startups; idea stage to in-market Unique features: High Tide is a partnership between venture company Tallwave and Hansji Corporation that will move accepted startups, rent-free, into a renovated thirdfloor office space at Luhrs City Center in March.  SEED SPOT Location: 2828 N. Central Ave., Phoenix Dictum: “We believe entrepreneurs can change the world.”

Candidates: Social entrepreneurs motivated by financial profit and community impact Unique features: Entrepreneurs at nonprofit SEED SPOT are surrounded by a community of mentors, experts and corporate partners.

0 2

AZRE SOURCE

PROJECT

NEWS LEARNING CURVE

In February, McCarthy Building Companies broke ground on the $50M West-MEC Southwest Campus in Buckeye. The campus is expected to serve 650 students in programs ranging from secondary to post-secondary and industry training. This project is one of four for the career and technical public school district funded by a $74.9M voter approved bond in 2012. Phase one, to be completed in December, includes a sustainable energy programs and student services buildings.

A I D

5 1

0 2

E M

LAYING ANCHOR

In mid-January, Brown Group closed on 17.7 acres of land at the NWC of Guadalupe and Signal Butte roads in Mesa. The developer plans to build Mulberry Marketplace, which will be anchored by a 123,419SF Fry’s Food & Drug. In addition to retail and a fuel center, three pads are being discussed for ground leases to restaurants and a bank.

G LANDLOCKED I B

©

A NEW LIGHT

Z A

EverWest Real Estate Partners, CarVal Investors, RSG Builders and Gensler are renovating and redesigning the Jabil industrial facility into a class-A creative office space. The design focuses on employee amenities, connections between indoor and outdoor spaces and the Millennial workforce. The 190KSF project will be completed in April 2015. Cushman & Wakefield will manage brokerage of the space.

8 | March-April 2015

Cargo containers join multifamily inventory

By Kaci Demarest

S

ome Phoenicians are seeking out trendy living spaces in the burgeoning downtown Phoenix area, and soon the available product will include a cluster of shipping containers.

The concept, Containers on Grand, was originally intended to provide local artists with a space to store and showcase their artwork on First Fridays, but it has evolved into housing. Collaborators Karl Obergh, Brian Stark and Kathleen Santin have been working on Containers on Grand together for about a year.

Obergh is president and owner of Ritoch-Powell, a company that deals with shipping containers. Obergh and a partner bought the half-acre property, on Grand and 12th avenues with the intent to place storage containers there for artists to use.

It wasn’t until he met Santin that the idea

for Containers on Grand came to be known as it is. Stark and his company, Stark James, were later brought in to enhance the creativity of designing the building structure.

Since the advertisement regarding renting information was released, Containers on Grand has received more than 100 inquiries from potential tenants, as of the start of February.

“It took off a lot more than we were expecting with the amount of interest that we we’ve seen and the amount of people that are interested in renting. It’s been amazing,” Stark said.

The collaborators initially projected that artists would be the ones interested in renting the spaces. Instead, all the inquiries are from people who are business professionals, accounting

PROJECT

NEWS GAME TIME

Westgate Entertainment District owner iStar Financial plans to build a 41KSF building west of AMC Theatres for a Dave & Buster’s. The adult arcade and event venue is the third Valley location.

Butler Design Group and Linear! are the architects.

Teetsel Properties is the development manager.

CBRE represented the landlord and tenant.

POWER UP

LGE Design Build has constructed a 50KSF regional operations center for energy distribution contractor NPL Construction Co. The two-story operations facility includes office space, a training facility, warehouse storage and several acres of land for NPL’s equipment fleet.

RENDERING, ABOVE, COURTESY OF CONTAINERS ON GRAND; PHOTO, RIGHT,

BY MIKE MERTES, AZ BIG MEDIA

executives, lawyers’ associates and other professions along these lines.

The units are comprised of two cargo containers, measuring at 740 square feet.

They each stand 40 feet long, 8 feet wide and 9.5 feet tall and weigh about 9.5 tons, which is why the shipping containers are cut and modified off-site before they are brought back to the site.

“Once they’re in place, there’s not a lot of difference in building inside of them than there is in conventional construction,” Stark said.

The layout is fairly simple. The front of the unit has a living area. Toward the center are kitchen and storage nooks.

The bathroom is off of the kitchen. The bedroom is at the back of the unit.

Since the space is limited, the majority of the utilities are run out of a masonry

core that is shared between two parallel units. The air-conditioning is inside and only blows two ways.

“The containers are pretty much the [adaptive reuse] story because it is so much of the project. It’s your enclosure, exterior, skin, and it’s your structure.” Stark said.

The developers’ plan is to reuse and recycle as much as they can in the process, including utilizing the 1.5-inch plywood floor by sealing and reusing it.

As of now, Containers on Grand is the only one of its kind in Phoenix, but there is a possibility for other locations in the future.

“We all have everything into this project, so if this project is successful, there’s a possibility that we can do this with other locations,” Obergh said.

The units are expected to be ready to rent in March.

FAIRWAY FLAIR

HSL Properties purchased the Hilton El Conquistador Golf & Tennis Resort and the El Conquistador Country Club in Tucson. The asset, situated on two parcels, totals 383 acres.

The development group is planning a $16M rehabilitation.

9

AZRE SOURCE

TREBLE IN PARADISE

By Amanda Ventura

T

hree performance rights organizations, or PROs, protect a majority of recording artists’ work from unauthorized use in public spaces. The two largest — ASCAP and BMI — are household names, but the smallest of the group, SESAC, is quickly becoming a well-known resident at multifamily properties. A third party working for SESAC has contacted multifamily property managers in Arizona about paying licensing fees for fitness centers, clubhouses and pool areas. These notices come monthly, unless requested to stop.

The notices claim the illegal use of one song can cost up to $750. At that rate, playing about an hour of illegal songs could cost a single property $7,500. SESAC doesn’t clearly call out apartment complexes among businesses that need licensing, according to its website’s FAQs. Copyright owners have the right to control public performances of copyright materials. However, there are grey areas. As MEB Management Senior Vice President and Director of Operations Mark Schilling points out, when property owners apply for a swimming pool permit through Maricopa County, it’s considered a semi-private space.

This is the linchpin — the line between public and private space at apartment complexes, including the lobby, common areas and model apartments. Stephen Anderson, attorney at Anderson & Associates in California, says it’s difficult to make definitive calls on whether or not a property manger needs to invest in a music license until there’s a court case that sets the guidelines. However, he says this may not happen for a while

©

10 | March-April 2015

and it may be cheaper for most of the smaller property managers to settle a case like this outside of court.

The National Apartment Association reports that annual license fees paid to PROs is priced by unit. It’s roughly $200 a year for every 300 units.

While this doesn’t seem like a lot compared to paying $7,500 an hour

for music, Schilling points out that property managers should conduct risk management analyses of properties.

“It’s a risk management scenario right now because we don’t know all the facts or which way it would go,” says Schilling, referring to unnecessarily buying licenses for properties.

Some of the requirements necessitating license, according to ASCAP’s website and MEB Management Project Manager Christy Alvarado, include having televisions that are not diagonally larger than 55 inches and having no more than six speakers in an establishment and no more than four in one room.

“This is a whole new arena for us,” says Alvarado, who added that in February MEB Management began an audit of its properties for the PROs’ licensing criteria.

A I D

E M

G I B UPDATE Z A Planning & Zoning

City of Phoenix The City of Phoenix Public Transit and Street Transportation departments have hosted open houses around the city to gain resident feedback on priorities for city transportation improvements. Since August, the Citizens Committee on the Future of Phoenix Transportation, a 34-member group appointed by the Phoenix City Council to study and provide recommendations on the development of transit service and street infrastructure, has been working to identify priorities based on input garnered at more than 80 events citywide and comments from over 3,000 participants in-person and online. Based on public comments gathered on plan elements, a replacement tax could be higher than the current rate.

Phoenix Metro The Maricopa Association of Governments (MAG), in partnership with the Federal Highway Administration (FHWA) and the Arizona Department of Transportation (ADOT), is seeking public input on a study to develop a Corridor Master Plan for the Interstate 10 and

5 1

0 2

Interstate 17 corridor. This corridor is referred to as the “Spine,” because it serves as the backbone of the freeway system in the metropolitan Phoenix area. To develop a plan that meets future traffic needs, MAG is requesting to hear from business owners and residents on what they define as their highest priorities. For example, do you want a faster commute or is business development more important to you? Do you care more about connecting neighborhoods or accommodating transit? This feedback will guide their decisions on transportation investments to best manage traffic congestion through 2040. The 35-mile Spine Corridor begins at the I-17/Loop 101 North Stack interchange and travels south and east to the I-10/I-17 Split Interchange. The corridor continues east and south along I-10 to the interchange with Loop 202 (Pecos Stack). The study will also look at traffic operations on the street and transit network around the freeway. Additionally, the study will integrate information gathered during two previous environmental studies conducted in the corridor over the past decade.

The P&Z column is compiled by Coe & Van Loo Consultants, cvlci.com

New to Market

A I D

5 1

0 2

E M

Š

G I B Z A

Medical FAIRVIEW MEDICAL

Office Cambridge Watermark

Public Vaughn Parking Structure

DEVELOPER: LGE Design Build General Contractor: LGE Design Build Architect: Cawley Architects Location: 2233 W. Fairview St., Chandler SIZE: 20,250 SF Brokerage Firm: Keyser VALUE: $5M Start/Completion: December 2014 to

Developer: Cambridge Plaza LLC General Contractor: LGE Design Build Architect: Cawley Architects Location: 2490 S. Gilbert Rd., Chandler Size: 12,939 SF Brokerage Firm: Colliers International Value: $1.4M Start/Completion: August 2014 to

Developer: Town of Gilbert General Contractor: McCarthy Building

August 2015

March 2015

Companies, Inc.

Project Manager/Construction Manager: Jacobs Engineering Architect: TranSystems Location: Gilbert Size: 132KSF Value: $6.9M Start/Completion: December 2013 to

December 2014

Subcontractors: McCarthy Building Companies, Echo Canyon Electrical, S&H Steel, Stone Cold Masonry, Via Painting, Irontree, Case 12 | March-April 2015

Breaking Ground: (Top to bottom, left to right) The Row in Downtown Chandler, Vaughn Parking Structure, Two Brothers Taphouse & Brewery, Fairview Medical Center and Cambridge Watermark.

Mixed Use The Row in Downtown Chandler

Retail Two Brothers Taphouse & Brewery

Developer: Vintage Partners General Contractor: Kitchell Architect: RSP Location: Arizona Ave. & Chandler Blvd.,

Owner: Ebel Properties AZ, LLC General Contractor: Platinum

Chandler Size: 60KSF on four-acre site Value: WND Start/Completion: January 2015 to December 2015

Commercial Architect: PHX Architecture Location: 4321 N. Scottsdale Rd., Scottsdale Size: 8,702 SF Value: WND Start/Completion: October 2014 to January 2015 Subcontractors: Caruso Turley Scott, NP Mechanical, NP Engineering, Redmond Food Service Planning, Hinkleys Lighting, Clean Media, High Peaks,

Wallace Steel Services, Helios Systems, Younger Brothers Construction, URI Construction, Brewer Plumbing, King Co., Sullivan Concrete, Arizona Painting, Pinnacle Window & Door, Saguaro Drywall, On-Track Garage Doors, Abbey Elevators, Metro Fire Equipment, Accurate Fire Sprinkler Design LLC.

13

AZ BIG MEDIA CARES

10,000

REASONS A I D

5 1

0 2

to participate in Az Business Magazine’s “Corporate Angels”

For the 5th consecutive year, Az Business Magazine is featuring its salute to nonprofits and charitable organizations with Corporate Angels.

This year, we are growing Corporate Angels into a two-part series.

E M

©

G I B Z A

In addition, we are incorporating another element called AZ Big Media Cares, which gives you 10,000 more reasons to participate..

What are the 10,000 reasons? Each nonprofit featured in Corporate Angels will also be entered into a special drawing. From those entrants, one will be randomly selected to receive a check from AZ Big Media for $10,000. Odds are good that your favorite nonprofit could be the lucky winner.

Proud Partner: Cheryl Green

Publisher

For more information, contact AZ BIG Media at 602.277.6045 | 3101 N Central Ave., Ste 1070 • Phoenix, AZ 85012 | azBIGmedia.com

There’s no such thing as a “small” deal in this industry, coming out of a recession. However, it’s the big deals, and the brokers who make them, that make the market an interesting one to watch.

In every issue, AZRE publishes the top five notable sales and leases that have occurred one month out from publication based on research compiled by DTZ and Colliers International with CoStar.

Industrial/Sales

Office/Sales

1. 5555 W. Lower Buckeye Rd., Phoenix 486,241 SF; $24.25M Buyer: Exeter Property Group Seller: Prologis Listing BrokerS: Don and Payson MacWilliam, Colliers International 2. Allred Cotton Center, Phoenix 99,734 SF; $17,941,554 Buyer: Senior Housing Properties Trust Seller: Select Income REIT

E M

Don MacWilliam

Payson MacWilliam

4. Washington Business Park, Phoenix 139,532 SF; $11.15M Buyer: CAM 10, LLC Seller: City of Phoenix Listing BrokerS: CBRE 5. 3301 W. Earll Dr., Phoenix 130,678 SF; $9,719,108 Buyer: Anelo, Gordon & Co. Seller: DS Waters of America, Inc.

BIG DEALS is sponsored by

16 | March-April 2015

A I D

5 1

0 2

1. Fountainhead Corporate Center, Tempe 470,172 SF; $71.5M Buyer: Cypress Office Properties Seller: Principal Financial Group Listing BrokerS: Adam Edwards and Justin Long, Eastdil Secured, LLC

G I B Z A

3. 2001 S. 15th Ave., Phoenix 192,761 SF; $13,220,082 Buyer: Coliny Financial, Inc. Seller: Cobalt Industrial REIT II Listing BrokerS: Eastdil Secured, LLC

©

Top 5 Notable Leases and Sales (Dec. 1, 2014, to Jan. 31, 2015) Source: DTZ Research Department, Colliers International and CoStar

2. Desert Ridge Corporate Center, Phase I and II, Phoenix 275,208 SF; $53,820,033 Buyer: Regent Properties, Inc. Seller: PKY Fund Phoenix I, LLC Listing BrokerS: CBRE 3. Kierland II, Tempe 237,875 SF; $49.15M Buyer: LBA Realty Seller: The Prudential Security Company Listing BrokerS: CBRE 4. Fountainhead Corporate Park, Tempe 183,262 SF; $35M Buyer: Allegis Group, Inc. Seller: Cypress Office Properties Listing BrokerS: DTZ 5. 4141 N. Scottsdale Rd., Scottsdale 147,356 SF; $34.5M Buyer: Palisades Private Capital Fund I Seller: Westport Capital Partners, LLC Listing BrokerS: JLL

Waypoint

Firm: Lincoln Property Company and Harvard Investments Build: Waypoint – A two-building, 258,000 sq. ft. Class A Office Campus in Mesa, AZ Loan: Construction Loan financed by Alliance Bank of Arizona

LAND/Sales

MULTI-FAMILY/Sales

RETAIL/SALES

LISTING #2, Wells mixed use site

1. NE Camelback and Scottsdale roads, Scottsdale 7.31 acres; $15,938,033 Buyer: Triyar Companies, LLC Seller: IMH Financial Corporation 2. The Wells Mixed Use Site, Maricopa 22.64 acres; $11.4M Buyer: Lennar Corporation Seller: Shea Properties Listing Brokerage: DTZ 3. SE I-10 and 563rd Ave., Maricopa 2,415 acres; $10M Buyer: William K. Perry Farms Seller: First Energy Corp.

Listing Brokerage: Nathan & Associates 4. Santan Village Parkway, Gilbert 32.29 acres; $9,485,234 Buyer: SanTan Development Group, Inc. Seller: Landmark Property Holdings LLC 5. E. Tempe Town Lake Rd., Tempe 4.59 acres; $7.34M Buyer: Transwestern Seller: Vonona Scott

1. Pinnacle at South Mountain, Phoenix 569,876 SF; 552 units; $63M Buyer: Fowler Property Acquisitions LLC Seller: BRE Properties, Inc. LISTING Brokerage: Sean Cunningham, Tyler Anderson, Asher Gunter and Matt Pesch, CBRE 2. Altera Highland, Phoenix 362,742 SF; 350 units; $57M Buyer: Wood Partners Seller: Essex Property Trust, Inc. LISTING Brokerage: CBRE

Sean Cunningham

Ryan Schubert

Michael Hackett

Dan Wald

Tyler Anderson

Justin Sharp

Eric Kathrein

Gigi Bermudez

Asher Gunter

1. Scottsdale Horizon, Scottsdale 80,904 SF; $42.65M Buyer: TriGate Capital, LLC Seller: Public Service Enterprise Group Inc. Listing Brokerage: Ryan Schubert, Michael Hackett, Dan Wald, Justin Sharp, Eric Kathrein and Gigi Bermudez, DTZ

3. Domus Apartments, Phoenix 200KSF; 223 units; $51.555M Buyer: Investors, LLC Seller: Helix Properties 4. Twin Fields, Gilbert 306,121 SF; 314 units; $47.1M Buyer: Farnam Realty, Inc. Seller: Alliance Residential Company LISTING Brokerage: DTZ 5. Montage on Cave Creek, Phoenix 434,496 SF; 292 units; $42.5M Buyer: TM Equities, Inc. Seller: Trillium Residential LLC LISTING Brokerage: CBRE

2. The Cornerstone, Tempe 117,351 SF; $28,556,152 Buyer: Weingarten Realty Investors Seller: Crow Holdings Capital Partners, LLC Listing Brokerage: DTZ Matt Pesch

3. 1625 E. Camelback Rd., Phoenix 52,138 SF; $15.25M Buyer: Rosebud SA Camelback One LLC Seller: Realty Income Corporation 4. 1818 E. Baseline Rd., Tempe 118,293 SF; $11.9M Buyer: Menin Development Inc. Seller: Hudson Retail Center, LLC Listing Brokerage: CBRE 5. Ocotillo Fiesta, Chandler 40,952 SF; $11.8M Buyer: Hemstreet Development Corp.

Seller: Southgate Mall Associates LLC Listing Brokerage: Colliers International

Where Experience Meets Opportunity

BIG DEALS is sponsored by

Vicki Williams

When Craig Krumwiede, President of Harvard Investments, and David Krumwiede, Executive Vice President of Lincoln Property Company, needed to secure financing for the construction of Waypoint, a Class A office Campus accommodating over 600 workers when completed, they called on a strategic partner who shares their passion for performance. They called on Alliance Bank and their Senior Vice President Vicki Williams, a 20 year real estate veteran.

17

Industrial/Leases

1. 402 S. 54th Pl., Phoenix 248,900SF Landlord: First Beverage Capital Tenant: Young’s Market Landlord Brokers: Tony Lydon and Marc Hertzberg, JLL TENANT Brokers: Andy Markham and Mike Haenel, DTZ

Andy Markham

2. 4141 W. Van Buren St., Phoenix 67,697 SF Landlord: Amir Development Company Mike Haenel Tenant: Macro Display Specialist Landlord Broker: Colliers International TENANT Brokers: Green Street Commercial

Office/Leases

Retail/Leases

1. Marconi Research Park, Phoenix 119,131 SF Landlord: Sabel Financial Group Tenant: TriWest Healthcare Alliance Landlord Brokers: Jim Bayless and Ashley Brooks, CBRE Jim Bayless TENANT Brokers: Larry Downey, Cushman & Wakefield 2. Cotton Corporate Center, Phoenix 73,377 SF Landlord: Menlo Equities Tenant: Mutual of Omaha Landlord BrokerAGE: Lee & Associates

E M

3. Reywest Industrial Park, Phoenix 62,972 SF Landlord: Sieroty Company Inc. Tenant: Summit Warehouse & Logistics Landlord BrokerAGE: Colliers International 4.3807 W. Adams St., Phoenix 62,576 SF Landlord: Adams Az Close Corp.

Tenant: Daikin International TENANT Brokerage: JLL

4. One MacDonald Center, Mesa 27,340 SF Landlord: Omninet Capital Tenant: Department of Child Services Landlord Brokerage: DTZ

5. Durango Commerce Center, Phoenix 62,305 SF Landlord: Clarion Partners Tenant: California Closets Landlord BrokerAGE: JLL TENANT Brokers: Colliers International

5. 9237 E. Via de Ventura, Scottsdale 26,765 SF Landlord: CSDB LLC Tenant: Telesphere Landlord Brokerage: DTZ

©

BIG DEALS is sponsored by

18 | March-April 2015

Larry Downey

5 1

0 2

2. Priest/Elliot Plaza, Tempe 32,277 SF Landlord: TriGate Capital, LLC Tenant: Goodwill Landlord Brokerage: DTZ TENANT Brokers: Velocity Retail Group

A I D

Ashley Brooks

3. Edwards Medical Plaza, Phoenix 50,714 SF Landlord: Ventas Inc. Tenant: Banner Health Landlord Brokerage: Ensemble Real Estate Solutions TENANT Brokerage: JLL

G I B Z A

1. Paseo Del Oro, Chandler 33,236 SF Landlord: Michael A Pollack Real Estate Investments Tenant: AZ Elite Sports Landlord Broker: Michael Pollack Real Estate Investments TENANT Broker: De Rito Partners, Inc.

3.Greenway Park Plaza, Phoenix 27KSF Landlord: Arizona Greenway Hirani Investments Tenant: Ross Landlord Brokerage: Velocity Retail Group TENANT Brokerage: Western Retail Advisors 4. Melrose Marketplace, Phoenix 14,724 SF Landlord: Davis Enterprises Investments & Development Tenant: Goodwill Landlord Brokerage: Davis Enterprises Investments & Development TENANT Brokers: Velocity Retail Group 5. Mercado Del Lago, Scottsdale 9,299 SF Landlord: Rancho & Hayden LLC Tenant: Bistro Du Lac Landlord BrokerAGE: NAI Horizon

Arizona’s Business Bank of Choice

Timing matters. No bank is better poised to act quickly and think strategically than the state’s largest locally-owned and headquartered bank.

Put us to the test. Call 602.386.5500 and experience the Alliance difference today. www.AllianceBankofArizona.com

Determination-HalfPg-Bjerk-111414_Layout 1 11/14/14 8:43 AM Page 1

The determination to be the best, to go the extra mile sets Bjerk Builders apart from other contractors.

Completing projects on time, within budget, and by continually exceeding expectations keeps Bjerk on top.

DETERMINATION.

License B1-088897

28

BUILDING SUCCESSFUL ARIZONA PROJECTS FOR 28 YEARS

480.497.2300 • fax: 480.497.9610 www.bjerkbuilders.com 19

AFTER HOURS

The Music Man: John Largay, founder and president,

A I D

G I B Z A

E M

PHOTO BY MIKE MERTES, AZ BIG MEDIA

Wespac Construction and McDowell Mountain Music Festival

By Kaci Demarest

W

hen Wespac Founder and President John Largay is not managing building projects, he’s leading a team to construct a music festival.

Wespac has been in the Valley for 22 years and currently has 95 employees.

Twelve years ago, Wespac was looking for a way to give back to Phoenix and had the idea to connect the community through the three-day McDowell Mountain Music Festival.

“Music is a universal language,” Largay says. “It appeals to a 20-year-old like it appeals to a 70-year-old.”

The festival upholds the three C’s of Wespac’s principal values: community, culture and charity. The event is Arizona’s only nonprofit music festival, with Phoenix Children’s Hospital and UMOM New Day Centers benefitting from proceeds. Over the years, the festival has generated more than $800,000 for nonprofits.

The companies that contribute to

©

20 | March-April 2015

the festival with facilities, lighting and other necessities work with Wespac on construction projects throughout the year as well. Wespac gives partners and sponsors tickets to the festival so they can invite their friends, family or clients to assist with building the sense of community within the festival.

Wespac chose its charity work to center around a music festival because the construction of it is similar to the makeup of a job site. In addition, Largay says Wespac gains a lot of satisfaction from the support it receives while working a public event.

“We understand the logistics and support needed for the infrastructure with sponsors willing to work on the festival,” Largay says.

This year’s festival runs March 27 through 29 at Margaret T. Hance Park in downtown Phoenix. Wespac chose this location to help bring the spark back to downtown.

“We are very much aware that we

5 1

0 2

need to re-populate downtown Phoenix.

The redevelopment of downtown Phoenix comes with events like this,” Largay says.

Cities such as Boston and Telluride have mastered the sense of community through a variety of annual festivals.

Phoenix’s German Festival and Local First have festivals similar to the McDowell Mountain Music Festival in downtown Phoenix. Largay said he hopes MMMF will inspire other festivals to spring up and enliven downtown.

The festival has remained consistent with its core values over the years but not the music. Largay’s sons and wife are the leaders behind the set list, which offers wide selection of genres. Largay also has a nephew in the music business who contributes as well.

The concert lineup has previously featured bands such as David Crosby, The Roots and The Black Crowes. A team of four to five people selects the lineup each year based on what’s popular in the music scene.

This year’s festival includes headliners such as Passion Pit, Thievery Corporation, Portugal. The Man and Widespread Panic.

To buy tickets or view the full lineup for this year’s McDowell Mountain Music Festival, visit mmmf.com.

haci_half.indd 1

8/28/14 4:12 PM

21

Legislative Update to prove how it will genuinely stimulate economic expansion.

Valley Partnership is actively working to facilitate and assist with new local measures to foster economic growth, including a number of significant city general plan updates.

The City of Phoenix has recently completed a monumental effort, including more than 175 stakeholder meetings, to create a general plan that is user-friendly and comprehensive.

The Plan PHX General Plan Update 2015 has shifted land-use planning from a map-based approach to policy and goal-oriented governing and heads to the voters this fall. The city’s outreach efforts have resulted in a document that is widely supported, and we look forward to working with our other municipal partners to further innovate their regulatory regimes as Phoenix has done with this general plan. Policy-oriented models foster creativity and enable flexibility — a vital tool for developers as they adapt to the new market demands.

A MAN WITH A PLAN I D E V M G I B Z A © Hits from AIA Quick

5 1

0 2

Governor’s rulemaking moratorium applaudable

alley Partnership applauded Gov. Doug Ducey’s first act as the state’s CEO: Establishing a formal moratorium of rulemaking for all state agencies. With an eye on encouraging job growth and eliminating burdensome regulations of the private sector, Ducey has extended the moratorium established by the previous administration but takes it a step further. In addition to

A

IA is anticipating a resurfacing of legislation from last session that would require school districts to sell unused property to charter schools. We believe this is the means Gov. Doug Ducey wishes to handle the charter school waiting list he talked about on the campaign trail. AIA members contribute and work hard to assist school districts in passing of bonds that help build new school facilities. Our concern centers around the impact this may have for voters who approved these bonds for different functions than those of charter schools. We are hopeful that an equitable solution can be worked out.

The AIA and its government affairs committee are monitoring several pieces of legislation at the moment.

As discussed previously in AZRE, we were hoping to 22 | March-April 2015

ensuring that all state agencies cease creating new red tape, Ducey requires every agency to eliminate what he calls “overly burdensome, antiquated, contradictory, redundant and nonessential regulations.” Historically, as our development market heats up, so do agency plans for regulating it. Now, a state entity that seeks to change the playing field will need to make its case directly to the governor

see PACE legislation resurface this session. However, we’re not very optimistic at this time that will come to fruition. There is significant stakeholder work that needs to be done before PACE could conceivably proceed. On the horizon is the sunset of the Board of Technical Registration and the AIA would want to see this renewed.

• HB2337: This legislation would create both an individual and corporate income tax credit for up to 25 percent of qualified rehabilitation on historic designated commercial properties, as proposed qualified properties could submit for this tax credit twice a year. In a state that lacks some of the development tools others have, this bill is important toward advancing the preservation of historic properties in Arizona. The AIA is fully behind this bill and is trying to do what we can to advance it.

• HB2095: The result of a few stakeholder meetings surrounding the subject of alternative

Carolyn Oberholtzer Partner Bergin, Frakes, Smalley & Oberholtzer

Alisa Lyons Principal SLOAN LYONS Public Affairs

project delivery methods. This legislation is largely being sponsored by Maricopa County. This legislation mostly impacts the contractor side as it would waive the requirement for a performance bond for JOC projects under $500K. We see no major objection beyond challenges that could be presented for subcontractors. What insurances does a subcontractor have if they can’t lien and now there John Glenn is no performance bond?

Associate The AIA thinks there American Institute of may be some unintended Architects in Arizona consequences here. and government affairs co-chair

LICENSE TO BILL ABA on cutting through the TPT

E Arizona tightens its belt NAIOP supports ‘spending diet’

A

few weeks ago, Gov. Doug Ducey put state government on a spending diet by introducing a $8.99B budget, which currently compares to $9.3B. To be sure, all major functions are impacted to one degree or another and the cuts in K-12 administration and the universities are expected to draw the most scrutiny and debate. However, the alternatives were to delay the tax cuts being phased-in that the business community has relied upon for investment and expansion decisions or to raise taxes. The latter would be more unpalatable if we want to continue to grow our economy.

To demonstrate that we are all in this together, Ducey also cut the deal closing and job training funds of the Arizona Commerce Authority by a combined total Tim Lawless President of $100M. Again, NAIOP Arizona sweeping unused funds with large cash balances was preferable to the tax alternative. At this point, it appears the session may be relatively short given that legislative leadership is generally pleased with the budget blueprint to eliminate our structural deficit over the next few

years. As a result, we have turned our attention to a few bills that have been introduced with our positions below: • HB2061 (online TPT; income tax reduction): NAIOP supports requiring ADOR to calculate the necessary reduction in income taxes in order to offset the Market Place Fairness Act sales tax increases regarding online sales should that bill eventually pass in congress. This is a concept which is consistent with our top priority to oppose any cost increases to our industry.

• HB2079 (local bonding; property tax measure): NAIOP supports a requirement that all bond election materials shall include the words “property tax measure” to describe the bond question so the voter realizes this will impact his/her property tax burden and make the connection.

• SB1088 (income tax brackets; inflation index): NAIOP supports this bill, which adjusts the income dollar amounts for each income tax rate bracket to the average annual change in the CPI starting in tax year 2016. This is a bill that Ducey specifically called for in his State of the State address and which NAIOP-AZ is on record in support in past years as it prevents “bracket creep” tax increases and also is consistent with opposing cost increases for our members.

ven before its Jan. 1 effective date, the proposed changes to Arizona’s Transaction Privilege Tax law had caused confusion in the construction industry. The law was passed in 2013 and amended in 2014, but the construction industry was still struggling with the changes.

The focal point of the confusion came from the creation of a new tax treatment for contractors engaging in the maintenance, repair, replacement or alteration of existing facilities, called MRRA projects. Materials purchased for MRRA projects would be taxed at the point of sale. The same materials purchased for a new construction project would be subject to taxation under prime contracting. Further confusion arose over other provisions of the law: MRRA work is defined as working directly for a “property owner.” This language seems to preclude similar work done for a property manager or tenant.

It may even exempt down-tier subcontractors from the MRRA classification.

Mark Minter How are change orders to Executive director Arizona Builders’ Alliance be treated? Are these “stand alone” contracts or does it relate to the scope of the original contract? What if the original contract and the change order are different types of work; one an MRRA and the other a prime contract?

Contractors who only do MRRA work will no longer be required to maintain a TPT license. However, due to local ordinances, cities won’t issue a building permit for an entity that does not have a TPT license. This may force all MRRA contractors to remain licensed with the state, despite no requirement to file a tax report.

How will projects be treated that have an element of prime contracting and MRRA? A remodel project that expands a building may start as a MRRA and then convert to prime contracting.

How do contractors who do both MRRA and prime contracting treat the purchase of material for inventory?

The current law would impose back taxes, interest and penalties on material purchased tax exempt and then used in a MRRA project. Do contractors now need two sets of inventory in the warehouse?

The Arizona Builders Alliance and various industry and government stakeholders have been meeting to resolve these issues. Legislation has been introduced that will address these problems retroactively to Jan. 1, 2015. Gov. Doug Ducey is expected to sign the legislation when it arrives on his desk.

23

Legislative Update

THE CITY AS CAMPUS

I

was recently going through a collection of photographs taken some 10 years ago focused on downtown Phoenix. The now-familiar Metro light rail cars are not in evidence nor can one see an expanded convention center, the Sheraton Hotel, the Freeport McMoRan building or most of the facilities in the biomedical district. The blocks which now feature CityScape reveal a bleak surface parking lot and a “park” with virtually no users. In 2004, there were no hints of the possibility of Arizona State University building a new home in a somewhat undistinguished area of the city.

With a decade’s worth of proof-ofconcept behind us, I think it is fair to say ASU’s urban initiative has paid off and is still gaining momentum.

With approximately 11,000 students already in residence, the new Center for Law and Society emerging from its foundations, and more academic programming soon to follow, the university has found a side of itself it never knew in the city. But the ASU experiment is, in fact, part of a larger trend based on the following principles: ■ Civic vitality - Many cities, having been emptied out by the flight to the suburbs over the past few decades, need to repopulate. Nothing

©

24 | March-April 2015

A I D

E M

Arizona Center for Law and Society

can achieve this end more rapidly than an influx of adult students. They fill sidewalks, restaurants, stores, entertainment venues and tax rolls on a continuous basis like no other public investment. Best of all, they attract others.

■ Demonstrated relevancy - By putting students and the institutions with whom they hope to work in the future in close proximity, the bridge from one world to the other seems more likely to be crossed. In the city, the utility of an education is illuminated and students are motivated. They see themselves as citizens and soon-to-be productive contributors to a greater good, long before graduation. Maybe they also see a life here.

■ Public/public/private partnerships - Restricted budgets are the new normal in the public sphere. Accordingly, universities, cities and the private sector must band together to achieve mutually desirable ends. The urban arena provides the perfect intersection of all three. This, in turn, presents fertile territory for cooperation and innovation, especially when all parties are committed to success.

Innovation and Phoenix have not always been joined in the same

G I B Z A

5 1

0 2

sentence. But metros such as Orlando, Kansas City, Milwaukee and San Diego are specifically point to the unprecedented collaboration between a Wellington Reiter municipality and FAIA Chair, Urban Land a state university Institute Arizona District as a model to be Council; senior advisor emulated. As a to the president, Arizona result, the ASU State University downtown campus has become something of a pilgrimage site for mayors, university presidents and civic leaders hoping to take the lessons learned back home.

The citizens of Phoenix, whose generosity made this all possible, should take great pride in their investment. The private sector should also consider this an invitation to think more creatively about the role they can play in the urban education renaissance. This prospect is only going to expand as the ease of mobility within the contemporary city becomes more attractive to coming generations…and seniors alike. And with it, an abundance of opportunity.

I AM A CCIM CCIMs are the commercial real estate deal makers and go-to experts in their local markets. CCIMs go through 160 hours of case driven study and demonstrate expertise to earn the designation.

CCIMs are the gateway to an international network of clients and professional contacts, conducting business in 1,000 markets in 30 countries. CCIMs build business relationships, promote their expertise, and close more transactions.

Alan Davidson, CCIM Orion Investment RE 480-797-0100

Andrew Cheney, CCIM Lee & Associates 602.954.3769

Barbara Lloyd, CCIM NAI Horizon 602.393.6731

Barry Lammersen, CCIM Lammersen & Associates 480.789.0060

Bobbie Mastracci, CCIM Phoenix West Commercial, LLC 623.748.1958

Bonnie Halley, CCIM Phoenix West Commercial, LLC 623.209.7436

David Miller, CCIM Chicago Title Insurance 602.667.1030

David Verwer, CCIM Xceligent 480.889.4555

Jason R. Eisenberg, CCIM Eisenberg Company 602.468.6133

Jenette Bennett, CCIM Voit Real Estate Services 602.513.5113

Julie Johnson, CCIM GPE Commercial Advisors 602.684.8558

Linda Robbins, CCIM GPE Companies 480.423.7917

Linda (Smith) Schafer, CCIM AZ ComProp Realty LLC 480.862.0830

Neal Churney, CCIM Walker & Dunlop 602.522.0065

Nick Miner, CCIM Orion 480.612.0384

Peter McSorley, CCIM Patriot Commercial Properties 602.508.0055

Rick Padelford, CCIM Realty Executives Commercial 480.839.2600

Scott Fey, CCIM Omni-American LLC 602.956.6060 ext. 102

Susan McCall, CCIM Commercial Property Connect at RE/MAX Commercial 480.452.6731

Tom Knaub, CCIM Colliers International 602.222.5036

Credibility, Commitment, Integrity Learn more online http://chapters.ccim.com/centralarizona

25

CONSTRUCTION IN INDIAN COUNTRY

JUSTICE FOR ALL

T

By AMANDA VENTURA

here are 22 casinos in Arizona.

One planned casino currently under construction on the Tohono O’odham Nation will cost $600M, bring in $100M in economic impact during the construction process and about $300M once it’s fully functional, according to reports

by Indian Country Today.

Income from tribal businesses, including casinos, is the only nonfederal funding many tribes have due to an inability to levy property and income taxes. A portion of gaming funds must be reintroduced into the community to fund the tribal government, economic development and the general welfare of members, among other things. However, many tribes still cannot always afford to maintain healthcare, education and judicial projects.

Indian Health Services (IHS) determines which healthcare projects will be constructed in Indian Country.

According to its website, there are only nine facilities in Arizona. For a fouryear span, between 2009 and 2013, only three projects nationally were selected to receive funding — one was a hospital in San Carlos, Ariz., awarded to McCarthy Building Companies in 2009, with a five-year funding forecast and completion expected in late 2012. The project was completed in December 2014.

©

26 | March-April 2015

E M

A I D

Around the time that work commenced on the project, Congress significantly tightened up on domestic spending, which had an impact on the Department of Interior, which controls funding for IHS through the Department of Health & Human Services. The cuts affected the San Carlos hospital project funding during fiscal years 2010 through 2012.

“The cuts had an effect on the construction approach and project momentum,” says Eric Doran, project director for McCarthy Building Companies on the San Carlos hospital.

“To ensure that progress continued, albeit at a slowed pace, we collaborated with the project architect RMKM and the client and adjusted our plan by breaking the project into manageable pieces that could be completed within the budget allocated each year.

Basically, we created small construction packages within the overall project budget each year and were able to keep the project moving forward. This approach is a more expensive way to build, but our construction team worked to ensure funds were allocated to the right things at the right time in order to minimize cost escalation and value engineering non-critical items, while keeping key design elements in the project.”

McCarthy was awarded another healthcare facility at Ft. Yuma about a

G I B Z A

5 1

0 2

Above: SRPMIC Justice Center, Courtesy of Gould Evans; Below: Ak-Chin Justice Center

year later, but the project remains on the IHS list as it waits for funding and the initial award was rescinded.

“Having a five-year timeline for construction was much longer than expected, and the delays were the result of funding issues that the IHS faced, so you can see that even projects that receive initial funding are subject to budgetary issues (or delays in this case) based upon congressional allocation of funding to IHS, which usually occurs annually,” says a spokeswoman for McCarthy.

Sign up for the AZRE weekly newsletter delivered directly to your inbox.

Timely, intelligent, relevant news about commercial real estate in Arizona.

azBIGmedia.com

27

CONSTRUCTION IN INDIAN COUNTRY HIGHER GROUND

Kayenta Multi-Purpose Justice Center

When it comes to funding for other public service projects, including schools and judicial centers, more tribes seem to be dipping into funds raised by funding and owning their own public improvements, according to Kitchell’s Kari McCormick. Though McCarthy Building Companies isn’t seeing the same trend.

“In healthcare, we are not seeing any large projects come to market that do not have IHS funding,” says Doran.

Even Salt River Pima-Maricopa Indian Community (SRPMIC), a tribal community that has seen charter schools and self-funded judicial projects, is working with IHS in the development of an ambulatory center that would utilize federal funds if approved.

Kitchell’s McCormick says selffunded hospitals are happening primarily outside of Arizona. However, those that are, she says, are most likely using Public Law 93-638, a selfdetermination contracting law.

“You have to remember a lot of the tribes don’t have the higher level of healthcare provided to them,” says McCormick. “A lot come down to Phoenix Indian Medical Center.”

Kitchell has worked on a large number of detention centers in America. AkChin’s new justice center, constructed

by Kitchell, was largely funded by the tribe. However, even if a tribe self-funds, in order to qualify for operational or other federal aid, the buildings must be constructed to Defense Intelligence Agency, or DIA, standards.

“Tribes with gaming funds often use those funds to support their communities with various construction projects,” says Justin Kelton, executive

©

28 | March-April 2015

PHOTO BY DAVID SCHACHER PHOTOGRAPHY

vice president of McCarthy’s Arizona construction. McCarthy has completed numerous casino and hospitality projects, as well as water treatment facilities for tribes in Arizona, Nevada, New Mexico and California.

Kitchell, on the other hand, is seeing a need for more judicial, healthcare and education facilities on tribal land.

“Tribes are trying to reinvest in their communities,” says McCormick, adding, “The gaming market has matured now, so [tribes] can put it toward what they wanted to do.

Unfortunately, the non-gaming tribes are not at that same stage.”

According to a report by the National Congress of American Indians, there are only 2,380 Bureau of Indian Affairs (BIA) and tribal uniformed officers to serve 1.4 million Indians on 56 million acres (in the contiguous U.S.).

This comes out to about 1.3 officers per 1,000 citizens. In non-Indian communities, that number is about 2.9 officers per 1,000 in populations less than 10,000. The report estimates a minimum of 4,290 officers are needed in Indian Country.

Kitchell has completed two justicerelated projects since December 2013.

The Kayenta Multi-Purpose Justice Center, funded federally through the American Recovery and Reinvestment Act of 2009, on the Navajo Nation brought 64 mixed-use beds, raised control rooms, booking and recreation areas and staff offices in 50KSF. More recently, Kitchell completed the Ak-Chin Justice Center in Maricopa, which houses tribal courts, police and detention facilities (36 beds ranging from minimum to maximum security),

A I D

E M

G I B Z A

There are currently only 20 tribal colleges in the U.S., but Arizona State University, which has one of the highest Native American enrollments in the country, is finding a way around that. Last June, ASU and the San Carlos Apache Tribe in southeastern Arizona will partner to bring a college to the tribal nation that will prepare students for transferring to a four-year university, such as ASU. According to the university’s website, “ASU will consult with the tribe in facility design and curriculum. Students from the ASU Del E. Webb School of Construction will benefit from the planning, design and construction processes as the new tribal college is shared as a best practice that will be showcased at ASU-sponsored events. Through the agreement, a Native American Achievement Program that is administered through ASU American Indian Student Support Services will provide academic counseling and personal support.”

5 1

0 2

office suites for lawyers, programs, judges and clerks and a shooting range.

The center was designed with input of 15 tribes.

Not all tribes have their own jails, says McCormick. Some contract with county or local jurisdictions when their members are arrested.

“Well overdue for the community, the complex replaces a series of run down trailer buildings that initially housed these functions,” writes Kitchell Senior Editor Karen Strauss in a RED Award nomination. “This in and of itself will have an impact on the health, safety and welfare of the users and community.”

Upcoming is a 92KSF facility on the SRPMIC. It will consolidate judicial, court administration and legal services. The project will be funded by general revenues from all community enterprises, including gaming, says SRPMIC President Delbert W. Ray, Sr. “As economic development activity increases along with new federal laws (i.e. the Tribal Law and Order Act and Violence Against Women Act) there is an increased demand to have a robust judicial system that adapts to the foreseen growth,” says Ray.

I N COM M E RCIAL

R E A L E S TAT E

COMING THIS JULY

In commercial real estate it’s all about who you know! AZRE Magazine combines the top people to know with the top projects to know – all in one special edition issue. Let PTK introduce you to the best commercial real estate projects that define the industry with the people who make it happen.

PEOPLE TO KNOW CATEGORIES

PROJECTS TO KNOW CATEGORIES

Architects Engineers Attorneys Brokers Developers Financiers/Accountants General Contractors Property Managers Subcontractors

Adaptive Reuse Art/Entertainment Office Industrial Public Healthcare Hospitality Multifamily Retail Tenant Improvement Education Mixed Use

[ HOSPITALITY ]

[ ARTS-ENTERTAINMEN

[ BROKERS ]

ES FACTS & FIGUR PROJECT n Westin Phoenix Downtow 333 N. Central Ave. Phoenix, Arizona, 85004

Executive managing director

cassidY turleY

GEnERal COnTRaCTOR Corp.

Tutor Perini Building

2375 E. Camelback Rd., #300 Phoenix, 85016 602.954.9000 cassidyturley.com

aRChiTECT Lead: SmithGroupJJR; Interior: Gensler; Westin’s in-house design team

Years with company: 26 Years in re: 30 responsibilities: The sale and leasing of industrial/back-office buildings and land. In partnership with Andy Markham and Will Strong, we represent corporate, institutional and entrepreneurial real estate users and owners. toughest challenge: Professionally, a tough challenge and opportunity is continuing to stay motivated to “grind” every day. After 30 years in the industry, I’ve learned it’s easy to stay in the “grind” when business is great. The ability and focus to stay motivated during the tougher times is a test.

SizE 250KSF STaRT DaTE September 2010 COmPlE TiOn DaTE March 2011 SUBCONTR ACTO

Westin Phoenix

Downtown

hotel involves high rise into a luxury downtown it also has its to start absorbing vacant some constraints, but y built as owner National original tower was What was originall office space, property perks. Because the in downtown office space, , LLC took action premium office space Real Estate Advisors intended for premium to a contemporary Westin Hotels a floor-to-ceiling Phoenix is now home and collaborated with every room includes Phoenix project ment Westin guest rooms hotel. The 242-room & Resorts. The redevelop window. What’s more, revisions to the in the middle of spacious than Downtown resides entailed major design are considerably more as constructing along with the rooms are a 26-story high rise tower’s interior as well average. In fact, corner that Copper an low-rise y average hotel offices of Freeport-McMoR a new adjoining two-stor 50 percent larger than , an outdoor onal natural entrance . valet a odations & Gold, an internati includes accomm ouse facilities. . resources company courtyard and back-of-h in an ity Constructing the hotel ChallEnGES: “Univers cal and seven months was One of the many in ES: rise mechani the high FEaTUR ical, existing UniqUE Mechan by the design a savvy business or, had one of the not only gutsy but design challenges solved plumping contract says Mike waiting for the a separate identity move. Rather than team was to create most challenging tasks,” ish it from for Tutor and for businesses economy to recover for the hotel and distingu Nunn, project executive the To achieve this, Building Corp. “Because as Freeport-McMoR an.

Perini City the with y designed SmithGroupJJR worked structure was originall water under-utilized potable an share parallel to a of Phoenix office space, as the hotel’s waste and vent city bus bay to serve system and a parallel to different and installed valet entrance. In addition system were designed To ents.

Freeport and requirem Westin hotel’s entrances, to meet the lobbies three 750-gallon McMoR an have separate visiting provide hot water, installed on the Guests and elevator banks. hot water boilers were never need to either establishment roof by helicopter.” an existing office interface. Adapting

RS

Caffall Tile Co. Cannon & Wendt Electric E & K of Phoenix PK Associates, L.L.C. University Mechanical ValleyCrest ing, Vickers-Hari Contract Inc.Walters & Wolf Western Millwork, Inc.

mindY korth

Executive vice president

colliers international 2390 E. Camelback Rd., #100 Phoenix, 85016 602.222.5005 colliers.com

Years with company: 1 Years in re: 30 responsibilities: Investment property sales brokerage of office, industrial and retail buildings as well as commercial land; representing sellers and buyers. toughest challenge: Finding the site for a hot weather testing facility that met stringent criteria. It had to be remote enough for security, while close enough to the workforce. We poured over topography maps in five states, visited sites in three states and then went through an arduous process to secure the selected location. This rewarding accomplishment was achieved by persistence and hard work.

PeoPle AND PRoJeCTS

To KNow 2015

75

20

PeoPle AND PRoJeCTS To KNow 2015

AM 11/18/14 10:46 PeopleTK2014_p1-27.indd 20

ProjectsTK2014.indd

75

cassidY turleY

2777 E. Camelback Rd., #230 Phoenix, 85016 480.994.8155 gpe1.com

Years with company: 6 Years in re: 25 responsibilities: Healthcare real estate leasing, landlord and tenant representation and sales toughest challenge: Getting deals done during the recession.

It took patience, good communication and creativity to create a win-win situation during those stressful times. sales advice: Passion! If you are passionate about something and convey it with confidence, enthusiasm and knowledge, people will share your excitement and want to work with you. cre bucket list: To inspire other women in commercial real estate and be a mentor to them because they have so much talent to be incredibly successful in this business.

shari a. tucker-Gasser Partner

sperrY Van ness, llc

3200 E. Camelback Rd., #280 Phoenix, 85018 480.425.5500 svnpartners.com

TODAY! AD DEADLINE: May 8, 2015

T]

PROJECT TopGolf Scottsdale 9500 E. Indian Bendat Riverwalk Scottsdale, Arizona Rd. , 85256

Executive managing director

Gpe commercial adVisors mike haenel

OwnER /DEvElOPER Advisors National Real Estate

FACTS & FIGU RES

eric Wichterman

Julie Johnson

Executive vice president

RESERVE YOUR SPACE

2375 E. Camelback Rd., #300 Phoenix, 85016 602.224.4471 cassidyturley.com/arizona

OwnER /DEvElOPER TopGolf International; The Alter Group

Years with company: 19 Years in re: 19 responsibilities: Sale of office investment properties in Metro Phoenix professional accomplishment: My reward comes from participating with a client in the full cycle of an investment. The cycle starts with selling them a great property, but it doesn’t end there. I work alongside my clients to select the best teams to operate, lease, finance and manage a property. I strategize with them on every lease deal and important decision that impacts the investment. This means we celebrate the successes and tackling the roadblocks together. sales advice: Like most great performances in sports, business and other arenas, control is the key to success.

GEnERal COnTR aCTOR ARCO/Murray Nationa Construction Compan l y

Sperry Van Ness Advisors goal is to be your eyes, ears and boots on the ground when it comes to aRChiTECT Archite cts, assets all of HKS your CRE in Arizona. Our Advisors provide sales, leasing, tenant representation, corpoInc. SizE rate servies, consultation, accelerating marketing and auction services. While not a property man65KSF agement valuE company, we have the knowledge, experience and connections to assist you with all of your$20M acquisition due diligence, financing, insurance, major capital expenditures and improvement STaRT DaTE projects, property tax appeals and preparation for a sale – basically your “silent partner” for the life August 2012 of your investment.

COmPlreal ETiOnestate DaTE

TopGolf

May 2014

ScottsdaWhether We apply local knowledge to national representation. live in Arizona, California, le atyou Riv TopGolf at Riverw erw alk combines a alk number of traditio dedicated to corpora golf-centered local that Canada or elsewhere, knowing there isnalsomeone you can te orturn group to at any time to help with elements in a interact events. Unique definition flat-scre Features: All of ive, full-sca le en televisions, 102 experience on the the game experien gaming consolesto ce isof whatever issues arise at your propertySaltwill you the peace mind freedom on andfocus Riverafford surroun 102 electric Pimaded andinfrared Maricopa Indian by unique architec heaters and a radio-fr al Community ture specific ally equency (SRPMIC). The design to represen identific ation system three-level, 65KSF your business, family and other interests. t and emphasize to track player the golf and heritage golf

Years with company: 13 Years in re: 15 responsibilities: Sale of multi-tenant retail investment buildings. professional accomplishment: I took a position as an assistant in the beginning phases of my real estate career just to get my foot in the door and within three months became a leasing agent. Within my first year, I was promoted to director of sales. cre bucket list: Watching Peoria Town Center become a thriving center. I’ve sold it three times over the years. I have it in escrow again with a user that I believe will bring about a new synergy to the area. I’d like to drive by it in 10 years and see the transformation.

entertainment of the SRPMIC. Particu lar includes 102 climate facility attention was paid -controlled to the patterning covered hitting bays on major façade elements down to using RFID the technology for instanta fabrics chosen for furniture. Colors neous ball location feedbac for the facility were k and outfield targets specified based with heavy gauge on a palette found corrugated metal in the natural with manhole access. surroundings of the region.

The facility features wood and aluminum ceiling elements, custom ChallEnGES: Coordi fixtures, stacked nation stone and roof trellises of the multiple subcont . ractors, more than 230 high-de In addition to subconsultants and vendors proved finition flatscreen televisions, to be very challen the family-friendly ging, as all the entertainment comple equipment had to be perfectly x provides golf club storage, locker positioned and integrat rooms, multiple dining options, terrace/ game to work correctl ed for the lounge/ y.

The facility bar areas with fire includes data and pits and 3KSF electric al systems to support more than 230 high-

GreG VoGel Founder, CEO

land adVisors orGanization 4900 N. Scottsdale Rd. #3000 Scottsdale, 85251 480.483.8100 landadvisors.com

balls for scoring.

Everything had to be sequenced into the constru ction schedule and meshed with the multiple discipli nes in the field, which was critical as none of the parties involved in the project contractual relation had a direct ship to each other.

Years with company: 25 Years in re: 25 responsibilities: Overall direction and vision of the firm; designated broker. toughest challenge: From 1988 to 1991 and 2008 to 2010, the land business just stopped. We overcame it by hard work and creativity to find niches and service clients well while others quit. Being a contrarian in effort and offering little rewards, it paid off when the market began its recovery. sales advice: Taking expertise to a level that cannot be compared. Land is a complicated business with fractured information few can assimilate and, more importantly, articulate the nuances and best strategies to achieve a client’s goals.

64

PeoPle AND PRoJeCTS

To KNow 2015

ProjectsTK2014.indd 11/19/14 4:46 PM 64

11/18/14 10:46 AM

30 YEARS OF EXCELLENCE

For more information: 602.277.6045 or visit azBIGmedia.com

WEST VALLEY

GETTING IN THE LOOP West Valley preps for commercial development

By Amanda Ventura

A I D

E M

© Z

G I B Z A

one your acres, West Valley. The cranes are coming.

About one year ago, appliance manufacturer Sub Zero bought an 11.5-acre land parcel at Palm Valley 303 (PV 303)​, the master-planned business park which sits at the confluence of Interstate 10 and Loop 303 in Goodyear, Ariz., from Sunbelt Holdings. It was the second tenant to enter the park, the first being Dicks Sporting Goods’ western United States distribution center. This is just the beginning for the park plans. At build out, PV303 will offer 1,600 acres with 20MSF of office, retail and industrial space in the West Valley. The lifeblood

30 | March-April 2015

attract industries to bring “headof-household” jobs for these residents, effectively keeping them from commuting outside of Surprise on a Sharon Wolcott daily basis.

About 10 miles of Loop 303 runs through Surprise. It’s the city’s first time being integrated into Phoenix Metro’s regional freeway system and Wolcott says Surprise is planning for thousands of acres of commercial development along the corridor.

“The freeway is already paying dividends for our city with the development of the 303 AutoShow at Prasada,” says Wolcott. The auto mall features six dealerships, two of which opened in 2014.

“Collectively, this commercial development, which employs approximately 400 people with wellpaying jobs, represents more than $50 million of capital investment in our city. We hope to announce two more new car dealerships as well as other commercial developments in the area very soon.”

Not all cities along the Loop 303 will see as large of a boost from its development. However, even Glendale has joined the grouping of cities getting in on the development opportunities.

Glendale, which did get see benefits from Loop 101, notably rejected opportunities to annex land along the Loop 303 corridor until about 14 months ago when it began to do an about-face on its annexation process, which hadn’t been looked at since 2005.

“We were really in the middle of the recession and Glendale’s financial picture didn’t look good,” says Jon Froke, planning director for Glendale.

“We were concerned with having rooftops in the Loop 303 area and having to provide services to those houses.

We were telling developers we weren’t interested Jon Froke in annexation.”

of the development — Loop 303 — cuts right through parts of the massive development. And like that stretch of black freeway, optimism is spreading.

“Just look at what Loop 101 did to stimulate growth and development in Glendale and Peoria,” says Surprise Mayor Sharon Wolcott. “Now, it’s our turn. Surprise is well positioned to attract major employers and whitecollar jobs for our educated work force.

This is what every growing city needs and vies for in order to become a balanced, sustainable community.”

More than 90 percent of Surprise’s residents work outside of the city limits. Wolcott says the Loop 303 will

0 2

5 1

Now that the city is “back on solid financial footing,” and annexing hundreds of acres near the Loop 303.

In January, 147 acres were annexed and zoned by city council. This land includes Saber Business Park. Froke brought a 180-acre parcel comprised of Zanjero Pass — which includes plans for 491 homes and 8 acres of commercial — in front of council.

“The 303 will be our last opportunity,” says Froke of Glendale’s growth potential.

According to an economic study the city commissioned Applied Economics to conduct on Saber Business Park prior to taking it to council, the net fiscal impact will be $20.7M annually when the area is built out.

“We’re looking for other opportunities around the 303,” says Froke.

“We’re open for business.”

Scott Whyte, Director of Economic Scott Whyte Development Loop 303 I-10 Interchange

WEST VALLEY PROJECT SPOTLIGHT: Avenue Shoppes at P83 “Developer Peoria Sports Park LLC has until March 10, one year from the March 11, 2014, effective date of the development agreement, to submit Avenue Shoppes at P83 proposals that meet certain stipulations, most importantly the submission of a financing package evidencing PSP’s ability to finance (both equity and debt) the new project except for the parking garages. Also, PSP has to submit a proposal on its selected retail co-development partner for the project.

The P83 streetscape improvement project has officially been launched. Over the next several months, the public will begin to see the dramatic transformation with new landscaping, hardscape and signage. The contractor has removed all of the existing fountains and the new palm trees from California have just recently been delivered. The sign manufacturer is now working on the sign mock-ups, Services Dept. for Peoria, says the Loop 303 corridor in northern Peoria is a significant planned employment corridor under the City’s Economic Development Implementation Strategy (EDIS), though rooftops are leading commercial.

“We envision several nodes of

and the contractor is redesigning the walls. The Avenue Shoppes at P83 redevelopment project is under review with the developer’s financing and retail co-development partner.

Proposals are due by the end of the calendar year.”

— Scott Whyte, Peoria director of Economic Development Services Dept.

RENDERING BY BAKER ARCHITECTURAL TEAM

employment centers being developed along the Loop 303 over time,” Whyte says. “Currently, the vast majority of new development in this area is residential as the commercial market is still emerging and new commercial development will need for the demand for such to grow before that type of construction and corresponding employment centers materialize. We are working on several public/private partnerships currently for the predevelopment work needed to make this area attractive to new employment generating uses when those development opportunities arise.”

Shovel-ready sites off Loop 303 in Peoria include Vistancia Commercial Core, a 500 acre, fully entitled, commercially zoned land with infrastructure in place for corporate campus opportunities in northern Peoria. Whyte says this site is planned for higher education, healthcare, advanced manufacturing, corporate or division headquarters, advanced business services, research and development, biosciences, as well as technology and innovation companies.

“We have several investment zones and mega-sites ready for end-user development,” Whyte adds. “The plan is to welcome more speculative and end-user driven building. The Rovey Industrial Park on 75th Avenue and Olive is an example of a 328-acre shovelready site where development is primed and ready for targeted end users.”

31

WEST VALLEY

THE LONG ROAD TO FUNDING: The toll of Arizona gas tax

By Amanda Ventura

I

n December, the State Transportation Board took the next step in the process of funding Interstate 11 (I-11) and the Intermountain West Corridor Study. It approved $15M for the Tier 1 Environment Impact Statement, which would allow the Arizona Department of Transportation (ADOT) to conduct an environmental study between Nogales and Wickenburg. This will take three years and follows a two-year feasibility study.

The I-11 corridor, though a final route hasn’t been decided, would likely follow US 93 from the Hoover Dam Bypass Bridge south to Wickenburg, running west of the Phoenix metropolitan area, through the Tucson area to Nogales and the Mexican border. It would connect Phoenix and Las Vegas and, potentially, Canada. The interstate is still in its infancy in Arizona.

“It is important to note that there is no funding set aside for the implementation of Interstate 11,” says Laura Douglas, spokeswoman for ADOT. “The only funding that ADOT has at this point is the $15M for the Tier 1 EIS that is set to begin this year.”

That funding will come from the 2015-2019 Five-Year Transportation Facilities Construction Program.

However, ADOT, like most state transportation departments, relies on gas taxes collected on every gallon used

by Arizona drivers.

“Transportation funding in general is very challenging, not just for Arizona, but for the rest of the states as well,” says Douglas. “ADOT must prioritize projects due to stagnant revenue from the gas and vehicle license taxes and from decreased federal funding. We have many needs and not enough funding to support those needs. During the last couple of years, our department has moved toward a major focus on preserving

©

32 | March-April 2015

the existing state highway system and protecting our investment of more than $19B—this is the estimated value of the state highway system.”

Critics of this model primarily point to the outdated tax rates that haven’t been adjusted in Arizona for about 25 years. For example, Tax Foundation reported that nationwide in 2011, highway user fees and user taxes comprised half of state and local expenses on roads. State and local governments spent $153B on highway, street and road expenses while only raising $77.1B in fees and taxes. To make up some of the difference, the

A I D

E M

G I B Z A

“It is important to note that there is no funding set aside for the implementation of Interstate 11.” - Laura Douglas federal government provided $46B in aid — a little more than half of which was able to be sourced from the federal gasoline tax.

According to a 2011 ITEP report, states are losing about $10B annually due to construction cost increases that have occurred since the last gas tax increases. ITEP suggests that collectively, states will need to adjust their gas taxes to make up for that loss in revenue, among other solutions. It has been nearly 25 years since Arizona increased its gasoline tax. It has been more than two decades since the federal gas tax has been raised. ITEP suggests an increase of 12.6 cents per

0 2

5 1

gallon would return the tax to a similar purchasing power the tax had when it was last set. According to the ITEP report, Arizona would need to adjust its tax by 13 cents per gallon, yielding an increase in annual revenue of $336.7M. Arizona is ranked No. 42 in the country by the Tax Foundation for its 19-cent state tax rate as of 2014.

ADOT Director John Halikowski has said in a press release that I-11 research has been the first step in “developing a multimodal freight corridor and manufacturing belt to drive trade, commerce and job growth and economic development while facilitating Arizona’s strong connections to major regional and international markets.” However, when that will be realized is still years away.

“It is difficult to put a timeline on the Interstate 11 project. The process starts with planning, then moves to environmental work, then design, then right-of-way, then construction,” says Douglas. “We are also approaching the implementation of Interstate 11 in two major phases. The Interim Corridor assumes implementation of targeted improvements to create a continuous four-lane divided highway from Nogales to Las Vegas. The goal of implementing this interim corridor is to facilitate trade movements among Mexico, Arizona and Nevada—until such a time as the ultimate trade corridor is needed.

The Full-Build Corridor completes buildout of a multimodal transportation corridor that will match the needs of future demands for the movement of people and goods. The full-build concept is the long-term vision for the Interstate 11 Corridor.”

Institute of Real Estate Management

5 1

0 2

A I D QUANTIFYING THE PROPERTY MANAGER E M A G I B Z A © n atrium’s high-reaching archway floods with sun throughout the day, but after the sun sets, lights installed along the ceiling kick on.

Over time, those lights’ bulbs will burn out and it’ll fall on a CPM such as Alisa Timm, director of management services at Lincoln Property Company, to figure out how to change those out.

The problem is they’re really up there.

They’re so high, she says, that not even a lift would be enough to change them.

At one of the brainstorming sessions, it was once even suggested the company should hire rock climbers to rappel into the atrium to change the lights.

This beautiful design has just proven to have a really expensive operational

cost. “That’s one expensive light bulb,” says Timm.

This is a case she makes for developers to utilize the insights of property managers when designing a building. While it’s Alisa Timm not always such extreme issues as the bulb example, sometimes the insight can be as helpful as not installing an HVAC system above a conference room. More property managers, she says, are being brought into build-to-suits (BTS) in the Valley. In late January, LPC broke

Bret Borg’s management tips: ■ Never use “brick pavers” on horizontal surfaces (entrances, drive lanes, etc.). You cannot properly pressure wash them (sand base gives way). You can achieve the same look using stamped colored concrete that is cheaper to install and can be pressure washed.

■ Avoid using date palms. They take several 34 | March-April 2015

months to die, typically after the 90-day warranty expires, and each costs $3,000 to $4,000 to replace.

■ Janitorial closet with slop sink should be on each floor of an office building.

■ Don’t provide window washing equipment at high rise buildings. The window washing company

By Amanda Ventura

ground on the 258KSF office campus Waypoint, which is already 50 percent leased to American Traffic Solutions.

However, Waypoint is just one of many BTS developments coming to the Valley, others include the State Farm Campus at Marina Heights, Garmin headquarters, GM IT Innovation Center, GoDaddy Global Technology Center and Isagenix at Rivulon in Gilbert.

Bret Borg, president of Borg Property Services LLC, says property managers have been particularly in high demand for office projects, like the ones listed above.

“If people can understand the way office buildings work, every dollar you

should supply and maintain. This reduces landlord liability and upfront developer cost.

■ Don’t use high-pressure sodium light bulbs. They are “orange” and do not provide a “light & bright” look. Other options, such as metal halide or other “white” lighting is recommended and the price is no different.

(The deck park tunnel, I-10, uses high pressure sodium lights.).

Bret Borg

RAISE THE ROOF

By Amanda Ventura

C

Camelback Square

save is probably $12 in value added to the building, in the landlord’s pocket,” he says.

While working with Opus-West, Borg said property managers were even brought in to work on the parking garage of the Collier Center and advised on often overlooked issues such as the need to have a janitorial closet on every floor of a high-rise to save on costs for janitors to travel between floors to empty mop buckets.

“Solar is the biggest thing right now, trying to figure out whether it’s worth it,” Borg adds. “For the first few years, it’s a great option. Certainly there are some governmental incentives we can educate people on.”

He adds, “It’s encouraging that the operational side is getting more attention than it used to.”

Timm was one of many property managers who saw a return of leasing and market appropriate property management fees as vacancies decreased in 2014. LPC’s Camelback Square, a 173KSF business park with class-A office space, saw occupancy rise from 53 percent to 92 percent in a 24-month period. Rental rates increased by 13 percent per square foot (PSF).

“What that means for the client and

lear heights are soaring on average to about 32 feet among new industrial builds, be it speculative or build-to-suit projects. Some are even climbing as high as 36 or 40 feet.

An extra four feet can increase a tenant’s pallet position, assuming it’s the average 64-inch pallet load, by about 20 percent without changing the amount of floorspace, says JLL Executive Vice President of Supply Chain and Logistics Solutions Pat Harlan.

With sky-high ceilings, occupiers are able to get more out of their square footage than in second-generation buildings constructed in the ‘80s or ‘90s. Since brokers are still pricing by the square foot — and not cubic feet, which would account for the vertical advantage — occupiers are getting a better deal than brokers know how to quantify.

“The reason landlords haven’t done that is it doesn’t make sense,” says Harlan. “Just charge a user a price PSF in open market regardless of clear height. Having a clear height is seen more of a competitive advantage. It increases the likelihood a tenant will lease up.”

customer/tenant is that the talent we’re able to pay to service that building is better,” Timm says. “The things we’re able to do in the building: keeping it maintained, up to standards … we can provide better services. The ripple effect is we can upgrade our software, hire more people, our offices expand and we rent more space.”

The Great Recession has led to The Great Exchange, the movement of properties by value-add buyers who purchased half-filled properties and return them to the market at 80-percent occupancy. This has helped institutions see Phoenix as a more stabilized market, says Timm.

“We saw a bunch in Camelback Square trade because value-adds came in,” says Timm of LPC. Another popular turnabout for properties facing difficulties such as obsolescence can benefit from what Timm calls “white boxing.” This is how LPC approaches out-dated office suites. It costs about $6 to $8 PSF to white box, which essentially creates space in an office in ceiling heights and

Harlan says rent per square foot in industrial buildings with more clear height rent for about 20 to 30 percent more than older buildings with clear heights below 28 feet. These Pat Harlan buildings also have smoother, flatter floors, truck maneuverability, trailer storage and corporate image. Additionally, not all tenants that lease within a building will require the full clear height available.

The Airport I-10 industrial project is a total of 600KSF with clear heights of 30 to 32 feet.

Harlan says it will be 35 percent leased by the time construction ends.

“We’re encouraging our developers to go as high as possible,” Harlan says. “There’s a percentage of users who want it and it drives the overall value of the real estate because of that.

There will be users who go into 32-foot buildings but only rack to 24, but they want that increased capacity down the road.” workplace openness.

“A lot of owners have a tenant improvement allowance and don’t want to spend it all at once. It’s our job to show them how successful they can be,” Timm says. “Every single day a tenant is not in a building, our client suffers.”

She recalls a property LPC tried to market for more than a year. After convincing the owner to white box, it leased in six months.

As a case study, Timm accepted the challenge to re-energize a class-A office building in metro Phoenix to increase leasing activity. The approach was to demo, redesign and construct vacant suites to increase the lease-ability of the office building. Overall construction costs came out to $20 PSF. Two suites were leased on 5+ year terms within four months of completion at rates between $21 and $22 PSF. The suites reportedly increased the building’s value with a combined transaction value of nearly $1 million.

Expect property managers to set off more than a few light bulbs in coming months.

35

CORENET

A I DESIGNATED DRIVERSED M A G I B Z A ©

5 1

0 2

The Circuit Tempe will feature indoor and outdoor spaces designed for efficiency, density and collaboration.

Design guides corporate real estate mericans between the ages of 25 and 54 spend nearly nine hours a day at work or on related activities, according to the most recent Bureau of Labor Statistics’ “American Time Use Survey.” With 260 potential work days (or 2,340 hours) in a year, that’s a lot of time spent in the office.

Leisure activities, on the other hand, clock in around 912 annual hours. Even with the amount of telecommuting in the corporate world, the functionality and appeal of corporate headquarters or satellite offices still matter.

This is where corporate real estate professionals — and CoreNet Global — come into play. Michelle Anderson, director of planning and development for Avnet Inc.’s corporate real estate, which includes about 400KSF of office space in Arizona, has tracked technology’s influence on Avnet’s offices. Like many other planners in corporate real estate, she is tasked with finding the balance between the financial pressures coming from the CFO and modern demands of a changing workforce and workplace.

The types of buildings and upgrades necessary for labor- and cost-effective

36 | March-April 2015

By Amanda Ventura

offices are not always the cheapest, though there is some consensus among the types of changes that yield the highest returns on investment.

“I would say the entire package of technology, furniture and finishes can be a good investment in the long run, depending on the type of efficiencies you are trying to achieve, space, environmental, or updating functionality,” says Anderson. “The focus should be to think flexible and keep in touch with what will come.”

New workspaces mean a new workplace mentality. The key is alignment, says Anderson.

“The workers’ demands and Avnet strategic goals can be at odds at times,” she says. “The most efficient way to navigate through those waters is through gaining trust and aligning with leadership directive and continually providing quality spaces that influence employees in a positive way.

“People understand the goal of cost savings with more efficient design. However, coupled with added amenities, vibrant spaces and more choices of working adds the energy and buzz required for success.”

There isn’t one formula for success.

“It depends on the company culture and what they want out of the real estate,” says John Pierson, JLL managing director for corporate office users. Pierson says, some tenants, like Aetna at Cotton Center, move into a space that isn’t known for its amenities, but for the lower cost option. Many clients he has toured are more concerned about the age of mechanical systems, maintenance costs and healthy work environments, than creating the live, work, play environment.

“The most humbling experience for me has been ‘if you build it, they may not come,’” says Anderson. “In terms of designing and developing touch down and collaboration spaces this has been a work in progress. All of the furniture case studies, human physiology studies around space design and thoughtful evaluation of workspace strategies does not always equal success. What we have learned is that understanding the organizational culture even within each location can vary significantly, creative engagement and very well thought out space organizational planning and feedback from users has

Centrica delivers an excess of 100KSF of class-A office expandable to 140KSF.

led us to a much higher success rate in these important spaces.”

Avnet, Anderson says, tracks revenue generation per employee as a key metric at each site. She says this allows the company to see individual performance increase with new space delivery.

In 2003, Avnet had a 29KSF office space designed with large individual workstations, 250SF to 300SF private executive offices at the exterior windows and small conference and break areas with the ratio of occupied space around 263SF per person, according to Anderson. Nine years later, that same space has benching workstations, relocated and reduced private offices that were about 100SF smaller. Additional changes included open and closed conference areas, mobile furniture, high-end audio-visual equipment, vibrant color schemes and company-provided snacks.

“The result was a space for ‘heads down’ work that also included many spaces conducive to break out and collaborating or individual privacy zones as well as achieving our real estate goal for reducing occupancy cost by 48.4 percent,” says Anderson. “By reducing the square footage per person number from 263 to 163 eliminated the need to add space to Avnet’s portfolio.”

Productive State of Mind

Companies have differing opinions on investments’ returns.

“Investing in features that improve employee well-being is money well spent,” Anderson says. “I would also

add that updated finishes will add that wow factor to even to the most skeptical worker. There is not one person who is not influenced in some small way by their surroundings. We at Avnet look at total occupancy cost to drive performance improvement and lower real estate cost.”

Springing for a LEED building has been linked to a spike in productivity and fewer sick days, Pierson says. That’s one reason, Pierson says, older building constructed in the ‘80s are having a harder time getting tenants, in addition to parking ratios and outdated mechanical systems.

“Every time Phoenix builds a new building, it leases up in a heartbeat. As long as it’s cost effective, they’ll make that run,” he says.

This has led to more retrofits, particularly in the hot East Valley submarkets. In Mesa, Centrica is getting speculatively converted to a LEED standard.

“If I was a landlord,” says Pierson, “I’d gut [an old building] and open it up and makes sure it feels open. A lot of [landlords] don’t have the vision.”

This vision is a growing asset for attracting many corporate tenants who want to retain employees and save money on training as well as development of a corporate culture.

It comes down to a balance between the CFO and human resources team, says Pierson. The CFO wants to lower costs and the HR team wants an environment that retains employees.

“It’s very individual for each

company,” he says. “Infusionsoft in Chandler decided to buy a two-story building, cut out an 8KSF center and put in a football field but still pay for the 8KSF they removed. It’s something an Aetna would say ‘no’ to. It’s a cultural decision.”

“A lot of the big corporate users like Aetna are very involved with the CoreNets of the world and are up to date…the reality is you’re a public company and even a GoDaddy doesn’t go in and go to the extreme of an InfusionSoft,” says Pierson. “They don’t just do things that make everyone feels part of the dot com era. People got nervous when they feel like you’re wasting money.”

The tighter the workforce gets, the more competition it will bring out of employers, says Pierson.

“You’ll either pay them more or provide an environment they’ll appreciate more,” he says, citing that Silicon Valley Bank moved into Hayden Ferry Lakeside but is paying higher wages in a class-A environment. He said companies in the market are also offering perks such as aggressive stock purchase plans, which has caused retention rates to increase. Sometimes it has nothing to do with the facilities, he says. It’s about work environment.

Corporate campus

Wells Fargo is doubling its campus footprint in Chandler and initiating Workplace 2020 for its new buildings.

The program is a partnership between Corporate Properties Group and 37

CORENET

Michelle Anderson

Leo Bauman

Technology Operations Group that focuses on keeping workplaces efficient and effective through “enhanced experience, innovative space and right place.”

“Ultimately, we want to deliver space and technology solutions to meet team members’ needs and enable them to be even more successful,” says Leo Bauman, Wells Fargo vice president and manager of Corporate Properties Group. “Unlike the traditional office environment, Workplace 2020 stresses the importance of flexibility and choice, allowing you to seek out the environment that fits the type of work you need to do – from collaboration and meetings to head-down work and confidential conversations.”

Technology is changing the furniture landscape, says Jennifer Callahan, sales representative at KnollStudio.

“It is critical that [corporate end users’] investment in office furniture is able to support the ever evolving and changing technology,” says Callahan.

“A simple example is having USB power accessible in workstation panels and ensuring that furniture is not too dedicated and inflexible to allow for the technology changes that we may not know about today. The space needs to be able to evolve as technology morphs.”

Wells Fargo, as well as the new 2MSF State Farm campus to be located at Tempe’s Marina Heights, are among a minority of companies taking on the corporate campus model in Phoenix.

“While the Phoenix market is not made up of many headquarter locations that take space in a traditional corporate campus, we are finding end users seeking the types of amenities offered by a campus environment,” says Gensler Principal Beth HarmonVaughan. “The repositioning of properties such as The Circuit and 1665 W. Alameda, both in Tempe,

©

38 | March-April 2015

Jennifer Callahan

Beth Harmon-Vaughan

are embracing this trend to provide creative, amenity-rich environments focused on the priorities of end users.”

This is also affected by a shift in distributed team work, adds Callahan.

“People are collaborating across geographies,” says Callahan. “We are all not in the same office. Even if we are, it doesn’t mean that we are always working in the physical office space.

As employees become more mobile and teams are more distributed, it becomes important for the furniture to be flexible enough to allow distributed teams to come together.”

Office inefficiencies, such as inflexible workspaces, can cost corporate end users the most in the long run, says Callahan. This is particularly important for companies

G I B Z A

“It is critical that [corporate end users’] investment in office furniture is able to support the ever evolving and changing technology,”

- Jennifer Callahan looking to reduce corporate travel costs through the use of technology. “(GoTo meeting and Skype) are innovative ways that companies are working to drive out costs yet support their employees’ needs. It is imperative that employees have a physical space that gives them the ability to use these technologies,” says Callahan.

“Collaboration fosters innovation, so having all these tools available not only reduces costs, but it can drive to innovation and breakthroughs that will be the life blood of the company,” adds Callahan.

5 1

For corporate end users looking for creative office, Harmon-Vaughan says the “most effective office environments are those which focus on the spaces with the greatest meaning to the organization’s culture and specific employee group.”

“The demands of new generations of workers are continuing to change the paradigm of planning for corporate real estate,” says Harmon-Vaughan.

“The quantitative space requirements for employees, which often drive lease decisions, are only one piece of the puzzle. For a project budget to best align with a tenant’s design goals, starting with thorough programming and due diligence proves invaluable.

The qualitative project drivers discovered through in-depth visioning account for implications of mobility, work/life realities and the collective amenity spaces that the changing workforce is seeking. Pressures between design goals and budgets are alleviated when stakeholders – tenants, landlords, brokers, and designers – reach an early consensus on the priorities motivating real estate decisions. We are seeing a trend of these decisions based on the design solutions which best support end users in employee attraction and retention while allowing for flexibility in their office spaces to accommodate changes in the future.”

In addition to amenities, natural light and focus/collaboration areas, Harmon-Vaughan, like Pierson, has noted emphases on health.

“Research has shown an estimated 65 percent of a company’s health related costs can be attributed to absenteeism and ‘presenteeism’ – the act of attending work while sick,” says Harmon-Vaughan. “The intersection of workplace design and well-being can reduce both.”

A I D

E M

John Pierson

0 2

39

CORENET

TRIMMING THE EXCESS A Q&A with CoreNet Global Arizona Executive Director Bob Gracz

By Amanda Ventura

made from recycled materials, T5 and LED lighting, furniture made from sustainable materials, etc. We have made a conscious decision to continue using green materials because we know it’s a good decision: good for the environment, good for our employees, good for the communities we work in and good for business.

CoreNet is all over this type of approach to change to meeting the needs of the worker while supporting the cost containment of the enterprise.

What are the trends CoreNet Global Arizona is watching?

The working world has changed dramatically. And, as the way we work continues to evolve, the “where we work” is keeping pace right along with it. A corporate real estate executive leads the team responsible for not only locating the right facilities to meet the demands of our everchanging business, but also adapting current facilities to meet the needs of our employees. With technology advancements emerging at breakneck speeds, a significant rise in the availability of high-quality, sustainable materials and the challenges that come with establishing a local market presence and driving down real estate costs, I find that a corporate real estate executive’s job is never done.

Real estate, business and IT professionals must work together to establish new ways to accommodate this new world of work. Setting a corporate real estate strategy for the future of work is challenging. It must include efficient workflow dynamics that support the business as well as provide an atmosphere that is beneficial to the well-being of employees, now inclusive of the Millennial. It’s a tall order but one made much easier by new innovations in everything from furniture, carpet, workflow design to paint colors to the cloud.

©

employees don’t want to work in a halfempty building. Giving employees the opportunity to work in closer quarters helps them feel more energized and more connected as a team. This means consolidating space and giving employees more options for the type of work space with significant designs to meet the need of all along with the emphasis of the Millennial work habits.

Readying for the workplace of the future also requires implementing sustainable materials. When my team first started deploying “greening effects” in our facilities it was because we knew that the return on investment was there. We started with simple changes like more efficient lighting that cut down on our carbon footprint — and our electric bills — and low-flow toilets that cut down on our water usage. As sustainable products improve, it continues to make sense to utilize them when building and retrofitting our facilities.

Today, we’ve established very highend standards around the materials we use, paying close attention to the latest trends in the sustainable marketplace.

Everyone likes to do things for the community, environment and this really attracts a Millennial worker knowing the company he/she works for is conscious of this. We choose carpets

G I B Z A

What are CoreNet members most passionate about this year?

The networking, learning and challenges ahead that we face.

A challenge that many companies run into as they face the new technology-connected Millennial workforce is excess space. For example, if a company has been operating in a 5KSF facility for five years and now realizes that only 50 percent of its employees are there at one time, this is a good opportunity to rethink the utilization of the space. Ultimately, 4 0 | March-April 2015

E M

A I D

5 1

0 2

Are property managers playing a larger/different role in how corporate end users approach their existing/prospective real estate choices?

(Developers) have seen the benefits of involving a property manager (PM) earlier in the leasing and design development phase of projects.

Operating expenses are a large part of a tenant’s occupancy cost so the language in the leases dealing with this gets a lot of scrutiny. They ask their PMs to review this language and they provide valuable input. Tenants are using their premises extensively after normal operating hours so the demand for access, HVAC, janitorial and other services has increased. This falls under the PMs responsibility to not only make sure the services are provided but accurately billed pursuant to the lease terms. The design of the building must accommodate these functions so we look to our PM for input on the plans.

The additional revenue to the building owner from after-hour usage can be significant and affect the sale value of the building. More importantly, how happy the tenants are with their premises is largely a result of how well the PM does his or her part. This may affect whether the tenant renews a lease or leaves the building upon expiration of the term. Tenant turn-over is expensive to the owner, so a good PM can easily pay for their fee if tenants are satisfied with the service they receive and stay in the building.

_12356

25x4.75

Take your business to new places

4C

If you’ve got a vision, an SBA loan can help you get there. Our longer terms and lower down payments can help your business grow and keep our communities strong and vibrant.

An SBA loan can help you: • Purchase commercial real estate • Acquire a business • Expand your business • Buy equipment • Build inventory Stop by and talk with a banker today.

You can also give us a call at 1-800-545-0670 (Monday – Friday, 7:00 a.m. – 7:00 p.m. Central Time) or visit us at wellsfargo.com/biz to learn more.

All financing is subject to credit approval and SBA eligibility. © 2014 Wells Fargo Bank, N.A. All rights reserved (1198776_12356)

1198776_12356 7.125x4.75 4C.indd 1

6/16/14 8:34 AM

41

CORENET PROJECT SPOTLIGHT

1. Chandler Corporate Center III Developer: The Rockefeller Group General Contractor: Wespac Construction Architect: Davis Brokerage: Colliers International Location: NWC Chandler Boulevard and McClintock Drive, Chandler Size: 82KSF Start/Completion: April 2014 to September 2014 Although CCC III looks like a two-story office building by design with 6/1,000SF parking, it is a speculative singlestory office/flex building with 18-foot clear height. It has

the flexibility to have up to six tenants, each with a front and rear entrance and a grade level roll-up truck door. However, a limited number of dock high truck well doors can be added on the east end of the building if needed. All lease spaces are separately metered for power. Leases can be triple net or modified gross. There are no common lobby, restrooms or corridors, so leases have no load (loss) factor like traditional office buildings with full-service gross leases. Depending on market conditions, The Rockefeller Group anticipates developing the final phase of its Chandler Corporate Center project in 2015 with CCC IV on 8.9 adjacent acres. CCC IV is planned to be a speculative 86KSF office/flex with 6/1,000SF parking for up to six tenants.

A I D

E M

G I B Z A

3. GoDaddy Global Technology Center Developer: Ryan Companies US, Inc. General Contractor: Ryan Companies US, Inc. Architect: PHArchitecture; SmithGroupJJR Location: ASU Research Park, Tempe Size: 150KSF Value: $30M Start/Completion: September 2013 to September 2014

©

The GoDaddy Global Technology Center, located at the ASU Research Park, is 150KSF with an open to ceiling structure design, end-to-end figure eight go-kart track and two-story open café atrium with more than 80 feet of 12-foot tall sliding glass open wall systems connecting the interior and outdoor spaces.

The GoDaddy Global Technology Center houses its customer service call center group and web developers.

By bringing the Silicon Valley to the Valley of the Sun, the GoDaddy workplace needed to exude an energetic atmosphere that feeds creative minds to an inherent personality. With only eight offices total, the signature tune of the space is about the significant blend of the 1,050 workstations and their adjacencies to the plentiful amenities and conference, huddle and phones rooms.

42 | March-April 2015

4. TEPCON Construction Corporate Headquarters Developer: TEP Holdings General Contractor: TEPCON Construction, Inc. Architect: Pinnacle Design Location: 2113 E. Rio Salado Pkwy., Tempe Size: 7,200 SF Value: $375,000 TI Start/Completion: October 2014 to January 2015

5 1

0 2

2. General Motors IT Innovation Center Developer: Mark IV Capital General Contractor: The Whiting-Turner Contracting Company Architect: Balmer Architectural Group; SmithGroupJJR Location: Chandler Crossings, Chandler Size: 170KSF Start/Completion: Spring 2014 GM’s IT Innovation Centers are part of a companywide transformation to improve performance, reduce the cost of ongoing operations and increase its delivery of innovation.

The new center located at Chandler Crossings is a 170KSF facility made up of three floors of office space that also contains a full-service cafeteria and training center housing 1,000 high-wage employees over the next five years.

Employees in this facility have multiple “workplace choices” as well as height adjustable desks, allowing for ultimate flexibility and customized ways to carry out daily tasks.

This project was about maximizing space. SmithGroupJJR needed to accommodate 1,000 FTE while allowing for additional programmatic requirements and meeting spaces.

To address this, SmithGroupJJR developed a floor plan organized into “neighborhoods,” which allowed for ultimate efficiency and way finding. Each neighborhood is defined by enclosed meeting spaces to satisfy the needs for each particular area/department. Neighborhoods also house amenity spaces, such as informal meeting, coffee bars, and community common spaces.

TEPCON Construction transformed an old warehouse into its corporate headquarters in Tempe. Changes include complete interior demo and upgrading to energy efficient HVAC, low-water use plumbing and electrical work.

TEPCON had skylights installed, only uses LED lighting and its door frame and hardware are repurposed from the company’s other projects. Other features include a soda-blasted wall that revealed existing block structure and gives the office a contemporary feel beneath the open ceiling system.

Presents the 10th annual

Sponsored by:

43

College Avenue Commons

Developer: Arizona Board of Regents Contractor: Okland Construction Architect: Gensler; Architek ton Size: 137KSF

Mesa Community College Performing Arts Center

Education, Higher Ed

Developer: Maricopa Communit y Colleges Contractor: Lay ton Construction Co., Inc. Architect: Jones Studio Size: 48KSF Location: Mesa Completed: October 2014

Location: Tempe Completed: July 2014 rizona State University’s five-story College Avenue Commons is the new home for the Del E. Webb School of Construction, School of Sustainable Engineering and the Built Environment, University Tour and Sun Devil Marketplace. The building contains a 200-seat auditorium, classrooms, BIM, materials testing and computational labs. Every tenant has a unique entrance off College Avenue, and the building is rife with didactic features. Elements of the design and construction were modeled in 3D so students can study the building’s construction. It also includes exposed mechanical, structural and electrical systems as well as chilled water, fire alarm and data systems that can be used for instruction.

Education, K-12

Sunset Heights Elementary School

©

Developer: Peoria Unified School District Contractor: McCarthy Building Companies, Inc.

Architect: Emc2 Architects Planners, PC; Fanning Howey Size: 96,500 SF Location: Glendale

Great Hearts Academies, Arete Preparatory Academy

Finalists

A I D

E M

G I B Z A

University of Arizona Old MaIn Renovation

A

5 1

0 2

Developer: Arizona Board of Regents

Contractor: Sundt Construction, Inc.

Architect: Poster Frost Mirto Size: 25KSF Location: Tucson

Completed: July 2014

Developer: Great Hearts Academies Contractor: Okland Construction Architect: Gensler Size: 72,900 SF Location: Gilbert Completed: August 2014

earning is different for every student. That’s why the Peoria Unified School District and the community sought a more flexible learning environment for the $16.5M Sunset Heights Elementary School. These spaces can include retractable walls, glass walls, large windows for natural light and wheeled desks and chairs. The design of these rooms are meant to foster large group, small group and individual learning opportunities. The idea was so popular among the community that when the school opened, 150 more students than the expected 700 were enrolled. The district, which had seen crowding at its three nearby elementary schools, had to hire more teachers to meet the demand. The campus features a media center, two STEM labs, a courtyard, baseball and softball fields, basketball courts, gradespecific play areas, solar-power generating shades, a multipurpose building and a cafeteria and gym that can be divided into two functional spaces.

4 4 | March-April 2015

Finalists

L

Start @ West-MEC, Innovation Center

Completed: June 2014

Developer: West-MEC Contractor: Chasse Building Team Architect: ADM Group Size: 16,255 SF Location: Glendale Completed: April 2014

Banner MD Anderson Cancer Center Phase II Clinic Expansion Developer: Banner Health Contractor: DPR Construction Architect: HKS, Inc.

Adelante Healthcare Peoria

Healthcare

Size: 110,904 SF

Developer: Axis Projects Corpor ation Contractor: RJM Construction Architect: Cawley Architects, Inc. Size: 10,473 SF Location: Peoria Completed: October 2014

Location: Gilbert Completed: January 2014 fter completing the stunning first phase of the Banner MD Anderson Cancer Center, DPR Construction and HKS designed and built phase II, which consisted of a three-level expansion that houses linear accelerator vaults, radiation oncology, CT simulator, exam and infusion spaces. DPR completed this project with zero defects, meaning the project had no “punchlist” items at the time of substantial completion. This means during construction that 2,596 quality items were tracked and resolved “on the fly,” as one nominator put it.

Finalists

0 2

Contractor: McCarthy Building Companies, Inc. Architect: SmithGroupJJR

Size: 279KSF Location: P h o e n i x

Completed: April 2014

Industrial CyrusOne, Building 4

Ocotillo Brine Reduction Facility

©

5 1

Developer: Banner Health

A I D

E M

G I B Z A

Banner Estrella New Tower Addition

A

Developer: Intel Corpor ation Contractor: Sundt Construction, Inc.

Architect: Carollo Engineers Size: 130,680 SF Location: Chandler

Developer: CyrusOne, Inc. Contractor: DPR Construction Architect: Corgan Associates Size: 120KSF Location: Chandler Completed: October 2014

he expansion of Intel Corporation’s Ocotillo Campus generates additional waste streams, which are discharged to the nearby City of Chandler’s Reverse Osmosis Facility (CHRO) for treatment and reclamation. The CHRO facility required upgrades to accommodate the new building, including brine treatment.

This is where Sundt Construction and Carollo Engineers came in to construct the Ocotillo Brine Reduction Facility (ORBF). Salinity and total dissolved solids (TDS) are the largest challenges facing municipalities in the Valley. As TDS rises, using reclaimed water to irrigate locations, such as golf courses, decreases. This issue could mean a shift in the use of millions of gallons of potable water daily in Chandler. The OBRF pulls salt from water before it’s sent to the aquifer and works to maximize on waste water from Intel’s fabrication facility. Furthermore, many of the pumps, even the brine concentrator, are recycled or refurbished.

46 | March-April 2015

Finalists

T

Sussex Properties for TLC Label

Completed: April 2014

Developer: Sussex Properties Contractor: LGE Design Build Architect: Cawley Architects, Inc. Size: 109,521 SF Location: Gilbert Completed: June 2014

41

SkySong, The ASU Scottsdale Innovation Center — SkySong 3 Developer: Plaza Companies Contractor: DPR Construction Architect: Butler Design Group

Heritage Marketplace

Mixed Use

LOCATION: Scot tsdale Completed: August 2014

S

E M

G I B Z A

Size: 31,454 SF Location: Gilbert Completed: October 2014

5 1

0 2

Developer: Maricopa Communit y Colleges

Contractor: Sundt Construction, Inc.

Architect: Dick & Fritsche Design Group SIZE: 75,859 SF Location: C h a n d l e r Completed: July 2014

Multifamily CityScape Residences

Broadstone Lincoln

©

Architect: AV3 Design; Cawley Architects, Inc.

A I D Finalists

kySong, The ASU Scottsdale Innovation Center, brought new life into a former shopping mall by turning it into a complex of office, multifamily and retail spaces for innovation and economic development.

More than 50 companies and 1,000 people conduct business at SkySong every weekday. It’s estimated that the complex will have an economic impact of $9 billion over three decades, according to the Greater Phoenix Economic Council. Though that’s the complex as a whole, SkySong 3 is 90 percent leased as of January 2015, and is LEED Silver certified. It is the integral next step in the build out of one of the most important mixed use projects in the Valley of the Sun. The design of the building is also forward-thinking, with “fins” along the exterior and “horizontal brows” along windows that shade the structure to reduce solar effects.

Coyote Center at Chandler-Gilbert Community College, Pecos Campus

Size: 145KSF

Developer: MD Heritage LLC Contractor: LGE Design Build

Developer: Alliance Residential Company Contractor: Alliance Residential Builders

Architect: ORB Architecture, LLC Size: 219KSF LOCATION: Par adise Valley

Developer: RED Development Contractor: Hunt Construction Group, An AECOM Company Architect: ORB Architecture, LLC Size: 233,690 SF Location: Phoenix Completed: August 2014

Completed: June 2014

48 | March-April 2015

Developer: MODUS Development Contractor: Ameris Construction

MZ

partment living is all about the amenities these days. In an area where home values average $390,000 and household incomes surpass $100,000, Broadstone Lincoln is a 264-unit community on 5.31 acres in Scottsdale/Paradise Valley. It’s intended to attract residents who are 35+ or empty-nesters with its upgraded fixtures and appliances, gas cooktops, hard-surface counters, climate-controlled interior corridors, direct-access elevators, underground parking, private garages, fitness center, common areas for entertaining and a flex studio. The building is also Alliance Residential Company’s second LEED Platinum certified in the country.

Finalists

A

Architect: Fimbres Studio Size: 13,572 SF Location: Scot tsdale Completed: October 2014

41

COLLIERS INTERNATIONAL CONGRATULATES ITS

2014 TOP PRODUCERS OF THE YEAR

Senior Executive Vice President Multifamily Investments

Keith Lambeth

Executive Vice President Office Properties

Kim Soulé

John Barnes

Senior Vice President Multifamily Investments

Bill Littleton, SIOR, MCR

Senior Executive Vice President Corporate Solutions

Trevor Koskovich

Vice President Multifamily Investments

Jeffrey Sherman

Executive Vice President Multifamily Properties

Bill Hahn

Executive Vice President Multifamily Properties

A I D

E M

Executive Vice President Multifamily Properties

G I B Z A

Vice President Office & Industrial Properties

©

Brad Cooke

Tivon Moffitt, MCR

Jim Keeley, SIOR, CCIM

Peter Bauman

Founding Partner | Scottsdale Industrial Properties

0 2 Mindy Korth

Payson MacWilliam

Vice President Investment Properties

5 1

Rob Martensen, SIOR, CCIM

Executive Vice President Industrial Properties

Don MacWilliam

Executive Vice President Industrial Properties

Executive Vice President Office Properties

Paul Sieczkowski, SIOR

Phil Wurth

Vice President Office Properties

Todd Noel, CCIM

Executive Vice President Industrial Properties

Senior Vice President Industrial Properties

Executive Vice President Investment Properties

ROOKIE OF THE YEAR

Cindy Cooke

Associate Vice President Investment Properties

Accelerating success.

We know your competition is fierce. And you can’t afford to sit back in the pack. Teaming with Colliers International allows you to focus your energy on your expertise. We focus on ours—maximizing your real estate position—to accelerate your success.

Phoenix +1 602 222 5000 | Scottsdale +1 480 596 9000 | www.colliers.com

ALWAYS...

RESPONSIVE TO YOUR NEEDS Our Team thrives on the ideas and stories behind the structures we have built, which have been possible by some of the most renowned Owners, Architects, Engineers and Contractors in the industry. We take pride in partnering with the best teams to build what starts as a simple concept and becomes a reality. Contact Suntec Concrete to discuss your next dream project.

Experience concrete like never before.

602-997-0937

•

suntecconcrete.com

Office General Motors IT Innovation Center

GoDaddy Global Technology Center Developer: Ryan Companies US, Inc. Contractor: Ryan Companies US, Inc. Architect: PHArchitecture (Shell); SmithGroupJJR (Interior) Size: 150KSF

Developer: Mark IV Capital Contractor: The Whiting-Turner Contr acting Company Architect: Balmer Architectural Group (Shell); SmithGroupJJR (Interior) Size: 170KSF Location: Chandler Completed: June 2014

LOCATION: Tempe

T

G I B Z A

Public

Phoenix Sky Train Stage 1A

©

Developer: Cit y of Phoenix Contractor: McCarthy Kiewit Joint Venture Architect: Ganne t t Fleming, Inc. Size: 60KSF LOCATION: Phoenix

University of Arizona McKale Center Renovation

E M

5 1

0 2

Developer: Libert y Propert y Trust

A I D Finalists

he office landscape is changing in many ways, with a strong skew toward playfulness. The GoDaddy Global Technology Center, with its sand volleyball court, basketball court, soccer field, rock climbing wall, high-end cafeteria, workout room, indoor slide between the second and first floor, bright colors, modern design and a race track for employees to “race” to meetings on pedal-carts. It’s hard to believe the original RFP looked for a “down and dirty” call center, as Patrick Hayes of PHArchitecture called it. Once construction shifted to this workplace wonderland, it only took nine months before moving employees in. The building will bring 450 jobs to the center, which will bring 1,300 people to the 12.61-acre campus on the ASU Research Park.

Liberty Center at Rio Salado

Completed: September 2014

Contractor: Wespac Construction Inc. Architect: RSP Architects SIZE: 155KSF

Location: T e mp e Completed: October 2014

Developer: Arizona Board of Regents Contractor: Mortenson Construction Architect: AECOM; BWS Architects Size: 300KSF Location: Tucson Completed: December 2014

orking “airside” on a one-mile stretch of a project at the 10th busiest airport in the country requires teamwork and meticulous planning. The McCarthy Kiewist Joint Venture managed to do all of this while completing a project ahead of time and under budget. The Phoenix Sky Train connects Phoenix Sky Harbor International Airport’s (PSHIA) Terminal 4 with terminals 2 and 3. PSHIA services more than 40 million passengers a year, and the project’s objective was to relieve unnecessary congestion on Sky Harbor Boulevard. The LEED certified project sourced 20 percent of its materials from recycled materials and 20 percent of used products made within 500 miles of the project location. More than 50 percent of construction waste was salvaged or recycled, and 107 caissons, ranging from four to nine feet in diameter, support the station, elevated guideway and taxiway bridge extensions of the Phoenix Sky Train Stage 1A development.

52 | March-April 2015

Finalists

W

Lewis Prison Complex Expansion

Completed: July 2014

Developer: State of Arizona; Arizona Department of Administr ation Contractor: JE Dunn Construction Architect: DLR Group Size: 115,620 SF Location: Buckeye Completed: October 2014

41

Redevelopment Chandler Regional Medical Center

Mesa Community College Performing Arts Center Developer: Maricopa Communit y Colleges Contractor: Lay ton Construction Co., Inc. Architect: Jones Studio Size: 48Ksf

Developer: Dignit y Health Contractor: Kitchell Architect: Orcut t | Winslow Size: 176,650 SF Location: Chandler Completed: August 2014

Location: Mesa Completed: October 2014

A

G I B Z A

0 2

Contractor: Venue Builders

Architect: John Douglas Architects

Brokerage: 18,600 SF

Location: P h o e n i x

Completed: October 2014

Retail Sun Devil Marketplace

Marketplace at Lincoln & Scottsdale

©

The Newton

A I D

E M

5 1

Developer: Venue Projects

Finalists

n unused Harkins Theater set the stage for Mesa Community College’s new performing arts center, thanks to the innovative design and execution by Jones Studio and Layton Construction. The project reused about 75 percent of the movie theater to create a 48KSF multifunctional facility from a 26KSF structure. The MCC PAC features a 460-seat multipurpose theater, individual musical practice spaces, classrooms, band practice rooms. The architecture, which most notably uses masonry in refreshing ways, is inspired by the musical structure of songs. The north masonry wall is folded along an ascending diagonal line derived from the opening clarinet glissando of “Rhapsody in Blue” by George Gershwin. The exterior wall was used as a canvas for salvaged movie seat stanchions that will create engaging shadows throughout the day.

Developer: Cam-8, LLC Contractor: JAVCON

Architect: Butler Design Group Size: 23,136 SF LOCATION: Scot tsdale

Developer: Follett Higher Education Group Contractor: Okland Construction Architect: Gensler Size: 32KSF Location: Tempe Completed: July 2014

he Marketplace at Lincoln & Scottsdale, home to tenants such as SumoMaya, Scramble and Opus Bank, feels like a destination.

The redevelopment infill project brings a contemporary design with a composite of artistic masonry, porcelain tile, recycled wood and concrete slats. Active display windows and roll-up doors facing outward to Scottsdale Road help activate the section of the street with the liveliness of the tenants. Construction on the two single-story shops ran concurrently with a high-density multifamily project, which brought some challenges to the already tight infill site, including existing 69KVA power lines along Scottsdale Road.

54 | March-April 2015

Finalists

T

Bottled Blonde/Livewire

Completed: January 2014

Developer: Evening Entertainment Group Contractor: LGE Design Build Architect: AV3 Design; Cawley Architects, Inc. Size: 13,628 SF Location: Scot tsdale

41

Completed: February 2014

Brokers of the year: Industrial Sale

Total sales transactions sum in 2014: $1,230,589,523

BROKERAGE: CBRE

Largest sale: Cobalt Capital Partners sold its 256-propert y portfolio to Colony Financial in 2014. The CBRE team handled the disposition of 10 properties within the portfolio for a consider ation of $41.21M.

E M

A I D

Pat Feeney

G I B Z A

5 1

0 2

Dan Calihan

Rusty Kennedy

Brokers of the year: Industrial Lease

Š

BROKERAGE: DTZ

Will Strong, Mike Haenel and Andy Markham

Total leased in 2014: 5,709,217 SF Largest lease: Young’s Marke t Company, a wine and spirit distribution company, leased 248,900 SF of warehouse and distribution space in Phoenix. The lease had a total consider ation of more than $19.8M. 56 | March-April 2015

Brokers of the year: Office Sale

BROKERAGE: Cushman & Wakefield

Total sales transactions sum in 2014: $307,123,120.24 Largest sale: The $ 85.1M sale of Anchor Centre East & West, a t wobuilding, 333,284 SF development in the Camelback Corridor to KBS Real Estate Investment Trust III.

A I D

E M

G I B Z A

5 1

0 2

Chris Toci

Chad Littell

Vicki Robinson

Andrew Medley

Brokers of the year: Office Lease

Š

Total leased in 2014: 2,835,420 SF

BROKERAGE: JLL

Largest lease: A t wostory, 237KSF lease of a build-to-suit to Shut terfly at Discovery Business Park.

Pat Williams 58 | March-April 2015

Steve Corney

Celebrating Over Forty Years • Founded in 1974 59

Brokers of the year: Retail Sale

BROKERAGE: Velocity Retail

Total sales transactions sum in 2014: $77,234,464 Largest sale: Mega Furniture Warehouse in Phoenix, 208,825 SF.

E M

A I D

G I B Z A

0 2

Darren Pitts

Broker of the year: Retail Lease

Š

Total leased in 2014: 1,119,421 SF Largest lease: Goodwill of Centr al Arizona, 190,800 SF with total consider ation of $10,183,320.

60 | March-April 2015

5 1

BROKERAGE: Velocity Retail

Dave Cheatham

Thank you to our amazing clients and industry partners for collaborating with us on award-winning designs!

www.gensler.com

SINCE // 1855 SINCE // 1855

CITYSCAPE BLOCK 77 BEST MIXED USE 2011

REDefine your construction experience.

Building a Better Way for 160 years.

MARAVILLA SCOTTSDALE SENIOR LIVING BEST MULTI-FAMILY 2013

BARNEYS NEW YORK BEST T.I. 2010

THE WEITZ COMPANY // 2111 E. HIGHLAND AVE, SUITE 400 // PHOENIX, AZ 85016 WWW.WEITZ.COM // 602.225.0225

GENERAL CONTRACTOR // CONSTRUCTION MANAGER // DESIGN-BUILDER

Red AD - Final.indd 1

LET’S CONNECT

2/13/2015 8:56:14 AM

61

Safety Award: McCarthy Building Companies

M

Banner Estrella Medical Center

A I D

E M

West-MEC Northeast Campus

G I B Z A

cCarthy Building Companies’ work on the Banner Estrella Medical Center expansion earned top safety honors from the Arizona Division of Occupational Safety and Health and the highest safety award by OSHA for a healthcare project in 2014. Work on a functioning hospital required meticulous attention to detail so as to not interfere with the building’s existing operation and patients. But this award isn’t just about one project. Safety is something built into the company’s ethos. McCarthy has been recognized by the national Associated General Contractors as the safest large contractor in America, meaning that in more than a million man hours logged every year the company comes out above the rest. In 2013, this organization’s recordable incident rate was 0.54. The industry average is 3.70. This has been the case for more than a decade due to the employee-owned company’s enforcement on safety. It claims its No. 1 priority every day is to ensure its employees and team members return home safely to their loved ones every night through communication, training, motivation and monitoring.

5 1

0 2

Subcontractor of the Year: Iconic Design Studio

©

Sussex Properties for TLC Label

Garmin 62 | March-April 2015

F

or the first time in RED history, AZRE asked nominators to list notable subcontractors on projects. At the close of the nomination period, we tallied the number of unique projects on which these companies were named. There was one clear winner — Iconic Design Studio. Iconic Design Studio was named to three nominated projects, including one finalist — Sussex Properties for TLC Label, Garmin International and ATC. When Garmin upgraded to its current 60KSF corporate office in Chandler, Iconic Design Studio was brought in to brighten the workplace and bring references of Garmin’s corporate headquarters in Kansas. As interior designer of Sussex Properties for TLC Label, Iconic Design Studio gave a manufacturing plant a clean and inviting front office that is not always seen in industrial buildings.

ATC is a commercial aircraft manufacturing facility redeveloped from a post office, but Iconic Design Studio gave the industrial sector another stunning, if not simple, office environment with high ceilings, collaborative workspaces and glass walls.

63

Architect of the Year: Gensler Rose Law Group

G

College Avenue Commons

A I D

E M

G I B Z A

ensler’s projects seem to make the world a more modern place, not just through clean lines and cool furniture. There’s method to the modernity. The creative process is guided by research that has, for example, let the light into the traditionally dark wooden world of law firms with Rose Law Group’s new office in Old Town Scottsdale. When it came to designing the Great Hearts Academies’ four-building Arete Campus, the building elevations were derived from geometric proportion systems found in natural and man-made systems. The building facades even utilize the Fibonacci sequence. Even more cerebral, Gensler’s work, in collaboration with Architekton, on College Avenue Commons is meta and groundbreaking. The building, which houses a bookstore, bistro-type of restaurant and lecture rooms, is a didactic tool in and of itself. Home to the Del E. Webb School of Construction, among others, students can monitor and interact with building operations, using College Avenue Commons as a learning tool.

5 1

0 2

General contractor of the year: DPR Construction

©

Banner MD Anderson Cancer Center

SkySong 64 | March-April 2015

DPR

Construction has certainly left its mark on higher education in Phoenix, from the beautiful McCord Hall on Arizona State University’s Tempe Campus to the Phoenix Biomedical Campus and incoming Arizona Center for Law and Society downtown. Perhaps one of DPR’s greatest contributions to Arizona is healthcare facilities. The Banner MD Anderson Cancer Center, University of Arizona Medical Center, ASU College of Nursing and Health Innovation, Translational Genomics Research Institute and many for John C. Lincoln and Banner Health are all stand outs for the company’s Phoenix office over the years. It’s no wonder then that with its work on the RED Award winning Banner MD Anderson Cancer Center Phase II expansion that DPR topped the list as general contractor of the year. The company also showed exemplary work in 2014 on the CyrusOne data center’s building four and SkySong 3.

CUSHMAN & WAKEFIELD OF ARIZONA, INC. HONORS OUR

2014 TOP PRODUCERS CHRIS TOCI

LARRY DOWNEY

DON RODIE

JOHN GRADY

JACKIE ORCUTT

JIM CREWS

SAM MURIK

BLAINE BLACK

CHAD LITTELL

MIKE SAYRE

Investment Properties

Multifamily Properties

Office Properties

Tenant Representation

Tenant Representation

Tenant Representation

Industrial Properties

Investment Properties

Industrial Properties

Office Properties

2555 East Camelback Road, Suite 300, Phoenix, Arizona 85016 | (602) 253 7900 | www.cushmanwakefield.com

65

DEVELOPER of the Year: Ryan Companies US, Inc.

R

yan Companies US, Inc., developed one of the coolest projects of the year (GoDaddy Global Technology Center), and is currently co-developing the largest office project in Arizona (Marina Heights). The two-story, 150KSF GoDaddy design-build was Ryan Companies’ ninth project constructed at the ASU Research Park, showing a dedication to fostering development that will influence innovation and economic development in Arizona. As serious as that sounds, that project features a slide and an indoor race track as well as many other amenities end users look for to snare a Millennial worker — and a RED Award. In November, Ryan Companies US, Inc., was named General Contractor Mentor of the Year by the Associated Minority Contractors of Arizona for exceeding its M/WBE contractors spending goal by more than 207 percent in 2014. This created more than $18.5M in growth revenue to M/WBE companies.

E M

A I D

©

66 | March-April 2015

G I B Z A

0 2

5 1

10

95

75

25 5 0

67

LIFETIME Achievement AWARD

A I D

5 1

0 2

E M

G I B Z A IT’S

PHOTO BY SHAVON THOMPSON, AZ BIG MEDIA

©ALWAYS

SUNNY AT

SUNBELT HOLDINGS

68 | March-April 2015

By Amanda Ventura

D

ecades ago, John Graham would have told you the sight of clouds in Arizona could make his stomach churn.

Anyone who knows Graham, an articulate optimist, most notably during the recent Great Recession, probably wouldn’t believe that statement. But Sunbelt Holdings’ president and CEO, who got his start in real estate managing a portfolio of Coldwell Banker’s “worst properties” in Arizona, insists he was once less sunny, especially when it came to flooded parking lots and leaky roofs.

More than three decades later, he has made a career out of developing properties that his 20-year-old self would have never cringed at managing.

Graham’s real estate career started

before he was out of college. He got his real estate license when he was 18, was 24 when he completed his first development and 28 when he became a founding director of responsible development group Valley Partnership.

Graham, whose father worked at Coldwell Banker for nearly 20 years before forming his own firm, is one of the few people in commercial real estate who intentionally ended up in the industry. Though he studied economics at Stanford, all it took was one day of shadowing an accountant to know he would rather follow in his dad’s footsteps. He got his real estate license and worked at Coldwell Banker during his college summers managing “a portfolio of the worst properties they had.”

He took what he learned in his three summers at Coldwell to Koll, where development hooked him by the time he was 23. He met his Norwegian business partner, Tor Adenaes, when he was 24. Adenaes needed someone to manage two properties he purchased in Arizona when he left for Norway the following year. One was what is now Troon North (then Pinnacle Peak Village, which still needed to be annexed and rezoned in Scottsdale), the second property was what Graham says had some of his supporters scratching their heads. It was an assemblage at 44th and Van Buren streets, which at the time was trailer parks and the red light district.

“People said ‘You’re going to fail,’” Graham recalls. “The thing I started to tell people is the worst thing that’s going to happen is failure. I’m 25; I’ll give it a shot.”

Three years later, Sunbelt Holdings delivered Gateway Park Hotel (now a Doubletree) and One Gateway (his first office building).

“We built our reputation on our ability to identify undervalued properties and then strategically and meaningfully increase their value,” Graham is quoted on the Sunbelt Holdings website.

In the 32 years since Graham joined Sunbelt Holdings, it has logged 55,000 acres of land development, ranging from masterplanned communities to

A MARQUEE

LEGACY

John Graham got his real estate license when he was 18, was 24 when he completed his first development and 28 when he became a founding director of Valley Partnership. Age has never been a hurdle, he says, and it’s something that runs in the family.

Graham’s son Will became fixated on reopening a shuttered movie theater in Coronado, Calif., when he was 9.

Two years later, John received an email accepting his redevelopment proposal.

The only problem was John never sent a proposal. It was his then-11-year-old son who sent a typo-free pro forma and business plan to a man in Coronado from his father’s account. Amused, John and Will traveled to California. The renovations went through with the help of $3.5M from redevelopment agency grants.

Will, who is now a freshman at Brophy Preparatory and 15 years old, still has his eye on development, John says. Before he could drive, he even helmed a presentation for the Urban Land Institute. the 2MSF Marina Heights, the largest office development in Arizona, and, most recently, urban infill multifamily property Portland on the Park.

“We’ve made an imprint on the world,” reflects Graham.

His partner defines him as intelligent, witty and compassionate.

“When I first met him back in 1982, he was a very young man. He had qualities that made him and Sunbelt a great fit,” says Adenaes.

The qualities Graham values in himself as a CEO are similar to those Adenaes says originally made Graham a good fit with Sunbelt. “(John) was motivated and hardworking, had mature judgment, knowledge and understanding of real estate, great relationships and network

within the business and Phoenix at large and I liked him and his family,” Adenaes says. “A couple years ago, [John] told me that at the time he [started with Sunbelt], he saw no long-term future in the job, especially not working with a crazy Viking named Tor. He had planned his future employment in months, not years.”

Three-hundred-and-ninety-six months later, and Graham is still with his original business partner, Vice President Heidi Kimball and assistant, Sandy Johnson, have all worked together for more than three decades.

“This is like a family — only just a functional one,” Graham says with a laugh. What makes him a strong leader, though, is his work ethic.

“I know I work as hard or harder than anybody,” he says. “I’m here as much or more than anybody else.

By emulation, people know part of my ethic is hard work can equate to success.”

While a successful career has its fulfilling facets, Graham is most proud of his community involvement. He has served on more than 40 boards and commissions and has chaired more than 20 of them. There’s no such thing as too many friends for Graham, and that’s probably why a sense of community emerges from nearly all of Sunbelt Holdings’ projects — be it collaboration at the ASU Research Park or neighbors at Vistancia.

Graham even likes to visit Sunbelt’s masterplanned communities, more often than he’d like to admit, he says, to see residents and the public enjoying themselves. Sunbelt is even repositioning its golf course properties to make them more accessible to more people by adding more public amenities. The developer’s most recent venture includes moving the suburban lifestyle to urban environments to infill parcels with existing amenities, such as Tempe Town Lake or Margaret T. Hance Park.

“Our placemaking skills are really good,” he says. “What makes a vibrant place for people to want to be and play is actually very transportable from a suburban to urban setting. I’m very driven to demonstrate and prove it.”

69

E M

A I D

CenturyLink® Fiber + uses the fiber connection in your building to bring you a data connection with synchronous speeds up to 1Gbps. Now your business can have cutting-edge access to the cloud, bundled with VoIP service and essential business apps to help you focus on growing your business.

©

G I B Z A

For more information, please contact your regional sales representative:

Matthew Hendricks - ph: 602.716.3859, email: matthew.hendricks@centurylink.com

CenturyLink® Fiber +

Visit centurylink.com/Phoenix to learn more.

Services not available everywhere. CenturyLink may change or cancel services or substitute similar services at its sole discretion without notice. © 2014 CenturyLink. All Rights Reserved.

0 2

5 1

UNEARTHING EXCELLENCE SINCE 1965

EVER EVOLVING TO BE YOUR BEST CHOICE

Through advancements in technology and solid people, Team Buesing is still going strong ямБve decades later. From large projects to small, we can take care of your needs. Let us help you build a solid foundation for your next dream project.

V I S I T U S TO DAY AT BUESINGCORP.COM

EXCAVATION | GRADING | SHORING | SHOTCRETE | TRUCKING | RENEWABLE ENERGY INSTALLATIONS | CONCRETE AND ASPHALT RECYCLING

Save the date!

WHEN: July 23, 2015 WHERE: Ritz Carlton AGENDA:

3:30pm – 4:30pm: Networking & hors d’ourves 4:30pm – 6:30pm: Panel 6:30pm – 7:00pm: Networking & cocktails

For Sponsorship Opportunities

602.277.6045

AZRE Forum is Arizona’s mid-year update and forecast. 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.

Invited Panelists:

Grady Gammage Gammage & Burnham

Sharon Harper Plaza Companies

John Graham Sunbelt Holdings

Sandra Watson Arizona Commerce Authority

Robert Sarver Alliance Bank of Arizona

2015 SPONSOR

Pete Bolton Newmark Grubb Knight Frank

Lee McPheters JPMorgan Chase Economic Outlook Center/ASU