Issue 5, 2016

BROKER TEAM of the MONTH Ashley Brooks & Jim Bayless CEM-AZ.COM • I S S U E 5, 2016

NATIONAL RETAIL INVESTMENT PROPERTIES

Recent Sales

JCPenney

Kneaders Arcadia

CVS Rogers Ranch

Location:

Phoenix, AZ

Location:

Phoenix, AZ

Location:

Laveen, AZ

Sale Price:

$10,850,000

Sale Price:

$3,333,000

Sale Price:

$6,945,000

Rentable SF:

±104,880 ($103/SF)

Rentable SF:

±4,055 ($822/SF)

Rentable SF:

±13,013 ($534/SF)

Cap Rate:

6.84%

Cap Rate:

4.50%

Cap Rate:

5.50%

All Cash, California Investor

All Cash, Arizona Investor

All Cash, California Investor

Goodwill

Starbucks

Del Taco

Location:

Peoria, AZ

Location:

Phoenix, AZ

Location:

Anthem, AZ

Sale Price:

$5,910,000

Sale Price:

$2,310,000

Sale Price:

$2,080,000

Rentable SF:

±2,160 2415($963/SF) East Camelback Road

Cap Rate:

5.46%

Rentable SF: ±25,000 ($236/SF) Rentable SF: ±1,750 ($1,320/SF) F O R M O R E I N F O R M AT I O N P L E A S E C O N TA C T: Cap Rate: 6.50% Cap Rate: 4.85% New Financing, California Investor

New Financing, California Investor

Phoenix, Arizona 85016

All Cash, New York Investor

CONTACT ME TO DISCUSS THE SALE OF YOUR PROPERTY: JOSEPH R. COMPAGNO First Vice President National Retail Investment Properties CBRE | Capital Markets 602.735.1733

www.cbre.com/nlpgphoenix joe.compagno@cbre.com JoeCompagnoCRE

2415 East Camelback Road Phoenix, Arizona 85016

© 2016 CBRE, Inc. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

SAVE THE DATE 10.20.16 *Date subject to change.

Fall Forum 2016

LEADERS IMPACTING ARIZONA’S ECONOMY

SPEAKERS forum moderator

Mel Shultz JDM Partners

Sen. John McCain Dana Garmany U.S. Senator (AZ)

Chairman & Chief Executive Officer for Troon Golf

Chris Camacho

Sharon Harper

Jerry Colangelo

President & CEO of Greater Phoenix Economic Council

President, CEO & Co-Founder of Plaza Companies

JDM Partners, served as Managing General Partner of Arizona Diamondbacks

THURSDAY, OCTOBER 20TH* /// OMNI SCOTTSDALE RESORT & SPA AT MONTELUCIA

TICKET & TABLES

FORUM SCHEDULE Registration /// 3:15pm Panel /// 4 - 6pm Networking & Cocktails /// 6 - 7pm

FOR SPONSORSHIP OPPORTUNITIES:

602.955.2899 2920 E. CAMELBACK RD., SUITE 228 PHOENIX, AZ 85016

www.cem-az.com

EXECUTIVE PUBLISHER Mandy Purcell mandy@mpmediaaz.com EDITOR-IN-CHIEF Sarah Stecko sarah@mpmediaaz.com DIRECTOR OF SALES Cami Beaugureau cami@mpmediaaz.com GRAPHIC DESIGN Crown Press, Inc. art@crownpress.com EDITORIAL April Atwood Josh Gordon Tim Randall Wayne Schutsky PHOTOGRAPHY Tony Elliot Carl Schultz Matthew Strauss

© 2016 BY MP MEDIA, LLC All rights reserved. No part of this publication can be reprinted or reproduced without publisher’s permission. Opinions expressed are those of the authors or persons quoted and not necessarily those of CEM. 2920 East Camelback Road, #228 Phoenix, AZ 85016 602-955-2899

www.cem-az.com © Copyright 2016 by MP Media, LLC

in a maleying true faithfully “Women ndustry of caught up er” to give re they’re cus on the her theme t whether er, being tance, the – Andrew Carnegie d watched Chandler) uble-cover ounce the ment which w you see e page to he theme of the he cover of this issue was inspired by the 1932 photograph, ng companies are evolving by paying attention to more September issue “Lunch Atop a Skyscraper,” because it embodied some e, there’s a science to a successful retail strategy and this of Commercial of theunderstands hard-working Spongberg of CBRE Phoenix, exactly whatpeople who truly built the skyline Check out athe blast Post-Depression era with “high osion of growth needed. /// Executive Magazine is worldly ofwhere Newit’s York.

This was section featuring Historic Apartments, a rare gem and we hand-picked some of society, ” Power wealthy tycoons including the Rockefeller family, 914 as a multifamily development, was changed into office the top industry leaders that are consumerism, more efficiency at home and work, so it /// ent units! There’s not many of itsand kind in this city. dabbling in different markets. “The forof more leisure timeofwhere the city slickers could ith the latest allowed in the future retail with the concept that could drastically change the regulation of the EPA’s Canada Connection” profiles a British enjoy more cultural and social festivities. /// Today, we’re & Now” chart on CMBS and permanent loan maturities Columbia-based company that you in Post-Recession times note,and all of the industrial sector is tdown really seems that likely. /// On a final probably have been hearing a lot about, healthy! some of the most active have a similar very attribute and that isWe’ve the art offeatured adaptability. y, you must be welcoming to change rather than fearful. but did you know its CEO and Co-Founder industrial brokers in the Valley today because they tted you are to longevity in whichever role you’ve chosen. is a 35-year-old mother of two? It’s also just are changing our CRE landscape. Their profiles esponses and some tips for young professionals in their remarkable how much the company values andwriting. have that same “old school” theme. /// On a more

“More money has been made in real estate

than in all industrial

investments combined.”

T

philanthropy over the bottom line. /// Staying on modern note, our Broker Team of the Month the topic of money, Pat Feeney of CBRE covered the tells us how technology has actually not subject that many are noticing right now: Why are changed the industry as much as you may businesses choosing Arizona over California now more think, and also that humor and being than ever? Then, of course, we can’t forget about Tucson personable are still winning traits. and all the developments taking over that town right now.

This is a relationship business and Keith Lammersen of JLL provides his Trend Report to get Gene Kim of YAM Capital said it you up to speed. /// A year ago, we featured a REIT that was just best: “We deal with large dollar starting to make a name for itself... Well, we’ve caught up with them amounts but at the end of the again for an update and are shocked to discover that they have struck day, the decisions are made gold with having a year-to-date return of more than 30 percent! by people.” ///xx commercial commercialexecutive executivemagazine magazine/// 5

Mandy Purcell

Sarah Stecko Editor-in-Chief

Executive Publisher

3 © Copyright 2016 by MP Media, LLC

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STORY

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BEHIND THE SCENES:

Our executives posing for a less-risky version of “Lunch Atop a Skyscraper.”

P

erhaps one of the most recognizable photographs in United States history, “Lunch Atop a Skyscraper” was taken during the construction of the Rockefeller Center in 1932. This issue’s industrial theme pays homage to the iconic piece of art that depicts workers nonchalantly perched along a steel girder – 850 feet above the ground! /// It sparks wonder: Why would anyone do something so risky?

Well, the “men at lunch” are a symbol for an unprecedented race to the sky. ///

These few represented the immigrant workers who essentially built New York. This American tale inspired Commercial Executive Magazine to also cite some of the people today who have played a role in shaping the industrial landscape of Arizona. /// It’s interesting to note some comparisons between the PostDepression era image with this being our Post-Recession time. So, flip through the following profiles that make up the cover story to see what today’s top executives have to say about trends in the industrial sector, how we stack up nationally, and some fun questions that relate to the “old school” theme.

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B

reinholt has over 29 years of commercial real estate and industrial market experience. During his tenure as President and Designated Broker of Commercial Properties Inc. he has repeatedly been recognized as a top producing broker in the Valley, established an aggressive standard of performance for his team, and structured continuous growth of the company through various market conditions.

FIRST CRE COMPANY YOU WORKED FOR? Commercial Properties Inc. (since 1986)

CURRENT TRENDS YOU’RE SEEING IN INDUSTRIAL? The inventory in the East Valley Industrial Market “for sale” is getting VERY limited, and I see that trend continuing for some time, or until the economy and/or interest rates change considerably. The leasing market is continuing to improve, especially in the “outline areas.” Vacancies continue to drop and rental rates continue to increase slowly but steadily.

HOW DOES THE PHOENIX MARKET COMPARE NATIONALLY? My feeling is that we started the recovery later than most of the country, and we still have further to run than other parts of the country. We are known as an economically attractive place to be (in terms of housing, etc.) as well as fairly friendly to most industries, with less regulations than other states.

BEST CLASSIC MOVIE? “Tommy Boy” FIRST RECORD YOU PURCHASED? The Bee Gees FAVORITE CLASSIC CAR? 1930s Deusenberg or Cadillac 6

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M

acWilliam has been a commercial real estate professional since 1986. He specializes in industrial real estate sales and leasing in the Southwest Valley distribution market.

FIRST CRE COMPANY YOU WORKED FOR? I started at Scott Jackson Brokerage and worked there for 14 years. It was more of a regional firm, but taught us the business from the ground up.

There was development, construction and brokerage all together. The firm preached knowing your territory and to be the best in that area. My brother (Payson) and I went to the Southwest Valley 30 years ago and have never left. The list of successful people still in Phoenix that came from that shop is staggering.

CURRENT TRENDS YOU’RE SEEING IN INDUSTRIAL? Looking at our market, we are seeing much more deal velocity in 2016 than in each of the past four years. Large blocks of space are being absorbed, and we are seeing rents moving up in certain size ranges. The lack of goodquality available product in the mid-bay size is being felt with prices moving up in this sector.

HOW DOES THE PHOENIX MARKET COMPARE NATIONALLY? If you look at the west coast as a whole, Phoenix is definitely lagging the major markets up and down the coast. All of those markets are absolutely on fire. Phoenix has been steadily improving over the last three years and steady is really fairly good right now.

BEST CLASSIC MOVIE? John Wayne’s “Big Jake”

FIRST RECORD YOU PURCHASED? “I Want to Hold Your Hand” by The Beatles. I wore that 45 out.

FAVORITE CLASSIC CAR?

Executive Vice President, Colliers International SIGNIFICANT PROJECTS: LIBERTY LOGISTICS CENTER II Bldg I Under construction for 222,910 SF; delivers late October 2016.

1.5M SF in Phoenix.

4405 W. Roosevelt St. (FOR LEASE)

Distribution facility in Phoenix. 187,511 SF.

PROLOGIS PARK RIVERSIDE Bldg 3

(For Sale / Build-to-Suit Opportunity) Distribution facility in Phoenix.

473,209 SF.

‘68 Shelby GT 350 convertible, and I own one.

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F o u n d i n g P r i n c i pa l , W e n t wo rt h P r o p e rt y C o m pa n y

DISCOVERY BUSINESS CAMPUS ///

10 WEST LOGISTICS CENTER ///

AIRPORT I-10 BUSINESS PARK ///

Master-planned business park (Class A office, retail, flex office & hospitality). Built-toSuit for Shutterfly & Northern Trust: 136 acres in Tempe.

Class A masterplanned bulk distribution business park. 80 acres / 1.3M SF in Phoenix.

Class A Industrial.

58 acres with 5 buildings & 920,000 SF in Phoenix.

CURRENT TRENDS YOU’RE SEEING IN INDUSTRIAL? Investors remain hungry for quality industrial properties. Location and functionality still

Wentworth

to see strong rental rates.

is a founding principal of

HOW DOES THE PHOENIX MARKET COMPARE NATIONALLY?

Wentworth Property Company,

Phoenix was much slower out of the gate than

LLC, focusing on office, industrial

most other major markets, but we are now

and development & acquisition

holding our own. Our pace this cycle is more

of office and industrial. /// Prior to founding Wentworth Property Company, he was the founder and

sustainable and bodes well for the future.

BEST CLASSIC MOVIE? “The Great Escape”

company and spent the early part

FIRST RECORD YOU PURCHASED? “Wanted!” by The Outlaws

of his career with KPMG and

FAVORITE CLASSIC CAR?

CBRE.

Early 1970s Ford Bronco

CEO of a venture-backed software

8

matter. Leasing is positive, and we will continue

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Keith E A R N E S T E x e cutive Vi c e Pre s i d e n t , Va n Tr u s t R e a l E s tat e

E

arnest joined VanTrust in 2014, already having more than 25 years of experience in commercial real estate and more than 20 years of experience as a developer. At VanTrust, Keith oversees all phases of the real estate development processes in Arizona, Southern Nevada and California.

FIRST CRE COMPANY YOU WORKED FOR? I was an intern at Russ Lyon Commercial while attending ASU, then took a job with Meridian Industrial Trust.

CURRENT TRENDS YOU’RE SEEING IN INDUSTRIAL? We are building 800,000 SF of speculative space in North Las Vegas with another 1,000,000 SF to follow, and the vast majority of the tenants are e-commerce. We recently signed Fanatics for 400,000 SF and Las Vegas will be their Western Distribution hub. Most of the tenants we are seeing have higher vehicular parking and trailer storage requirements, and as a result, we are becoming less efficient on site area so rents are going up. We think the California minimum wage legislation will have a very positive impact on the Arizona and Nevada industrial markets, especially in the fulfillment category.

HOW DOES THE PHOENIX MARKET COMPARE NATIONALLY? Phoenix is on the cusp of a very nice industrial run. Our state incentive packages and availability of labor position us for a bright future. Our transportation infrastructure will only get better with the completion of the 202, and we will be poised for exponential growth over the next decade.

BEST CLASSIC MOVIE? Is Caddy Shack a classic?

FIRST RECORD YOU PURCHASED? Beach Boys, Endless Summer

SIGNIFICANT PROJECTS: C ITYSCAP E: 600,000-SF office, 180,000-SF retail, 250-room hotel, 224-unit apartments with 5-level parking garage, Phoenix NORTHGATE DISTRIBUTION CENTER: 2,200,000-SF Industrial Park, North Las Vegas, NV SC OTTSDA L E SP ECT RUM : 250,000-SF office building, Scottsdale CA ME L BAC K E SP LANADE III: 220,000-SF office, Phoenix SH OPS AT N ORT ERRA: 300,000-SF retail lifestyle center, Phoenix

FAVORITE CLASSIC CAR? Austin Healey 3000 9

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J ohn D i Vall Senior Vice President & City Manager LIBERTY PROPERTY TRUST

John N. DiVall is the senior vice president and city manager for Liberty’s Arizona region. Most recently, he served as the vice president and city manager responsible for Liberty’s Wisconsin region.

I M P O R TA N T EXPRESS SCRIPTS is the first light industrial development at the park in Tempe.

81,300 SF. LIBERTY LOGISTICS CENTER II is an Industrial Park in Phoenix. 73 acres.

DRIVETIME AUTOMOTIVE GROUP is a Corporate Headquarters in Tempe. 96,000 SF.

PROJECTS

10

FIRST REAL ESTATE COMPANY? When I got out of grad school I worked for Prudential, the huge insurance company, as a real estate manager, handling dispositions and acquisitions throughout the Midwest. I handled industrial, office and multifamily. It was a great first job.

They hired from top MBA programs and allowed us to get right into transactional work. It was great training.

TRENDS IN INDUSTRIAL? E-commerce retail is having a big effect on the industrial market here and nationally. Retailers need less of a brick-and-mortar presence and are storing more of their product in warehouses and ordering product more “real time” vs. huge bulk orders from China. Overall, this bodes well for our industry, but our buildings need to be able to accommodate this type of user.

Additionally, as Phoenix continues to grow, it has become a large industrial market in and of itself that supports and serves over six million people.

Therefore, we are somewhat less reliant on imports from China and being a national or regional distribution center and a substantial market on a standalone basis. We have yet to experience any real growth based on new housing construction and we are not over

building, so I believe we still have a good run left here in the Phoenix industrial market. We are excited about the product we are building in West Phoenix, as well as our existing west side and airport area portfolios and will continue to grow.

HOW DO WE STACK UP NATIONALLY? Sort of like I often describe to people asking me about Phoenix in general – we are at the top of second tier markets nationally, but not one of the half dozen top tier markets. We are not a coastal or a major distribution hub, but we do serve a six plus million metro and often act as a distribution hub for the southwest. We are close to the ports in L.A. and it is much less expensive and easier to do business here than in California. We are a growth market, and there are not a lot of markets or cities in the U.S. that can say that.

FAVORITE CLASSIC MOVIE? “The Godfather” and “The Outlaw Josey Wales”

FIRST ALBUM PURCHASED? Probably AC/DC’s “Highway to Hell” (don’t tell my mom).

FAVORITE CLASSIC CAR? I love those old 1950s era Cadillacs that I see at Barrett Jackson.

CE

19

IN

CELEBRATING

1991 - 2016

IN ARIZONA

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Tony

CSCMP

/// Managing Director at JLL

LY D O N For over 30 years Lydon has been serving the needs of corporate real estate users, institutional owners and entrepreneurs throughout Arizona and North America.

He has facilitated over $2.5 billion in transactions.

Significant PROJECTS:

K R O G E R : Food-grade storage facility on lease in Phoenix. 200,000 SF. WA L G R E E N S : Industrial building sale in Flagstaff. 400,000 SF. S T I T C H F I X : Distribution Center on lease in Phoenix. 468,000 SF.

F I RST C R E C O M PANY YO U WO R K E D F O R? Wayne Mass & Associates in Chicago (Wayne was former #1 draft pick – Chicago Bears.)

C U R R E NT TR E N D S YO U’R E S E E I N G I N I N D U STR IAL? Robust e-commerce, renewed manufacturing and organic growth in food & beverage sectors are driving record level of industrial activity/demand. Game changers in industrial operations include: Robotics, 3D-printing and open source hardware – it’s changing the way companies process and manufacture goods nationally and globally.

H OW D O E S TH E P H O E N IX MAR K ET C O M PAR E NATI O NALLY? Phoenix was recovery laggard compared to most national markets – now beginning to hit on all cylinders and absorption will be up +/-20% over last year!

B E ST C LAS S I C M OVI E? Bogart’s “Casa Blanca” F I RST R E C O R D YO U P U RC HAS E D? Grand Funk Railroad “We’re an American Band” (1973) 12

FAVO R ITE C LAS S I C CAR? 1940 Cadillac Oakland Sedan

POWERING YOUR PROSPERITY Eric Draeger Berkshire Group Avid Golfer and Northwestern Fan Walker & Dunlop borrower since 2006

Commercial Real Estate Finance

California loans will be made pursuant to a Finance Lenders Law License from the Department of Business Oversight.

www.walkerdunlop.com California loans will be made pursuant to a Finance Lenders Law License from the Department of Business Oversight.

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CURRENT TRENDS YOU’RE SEEING IN INDUSTRIAL? Uptick in manufacturing and food-related companies, construction costs increasing a bit, higher clear heights, and distribution buildings are mirroring manufacturing requirements due to heavier power needs to operate both HVAC and Automation Systems, resulting in higher capital investments by users.

HOW DOES THE PHOENIX MARKET COMPARE NATIONALLY?

C

zerwinski has over 31 years of commercial real estate experience. /// At Merit Partners, he is responsible for providing strategic direction, sourcing acquisition and development opportunities, operations and leasing.

Lagging major markets but gaining steam.

BEST CLASSIC MOVIE? “The Godfather” and “Some Like it Hot”

FIRST RECORD YOU PURCHASED? BUILD-to-SUITS: Dick’s Sporting Goods (620,000 SF) QSDI (580,000 SF) REI (400,000 SF) MiTek Industries (260,000 SF)

“Band on the Run” by Paul McCartney & Wings

FAVORITE CLASSIC CAR? 1963 Corvette Stingray

SPEC DEVELOPMENTS: PV303 - Building A (618,240 SF) Tolleson Corporate Park (400,000 SF) 14

First Park Tolleson (386,100 SF)

Commercial Properties Incorporated

is proud to have been serving the Valley for 35 years, and is the largest locally owned, full service brokerage firm in Metro Phoenix.

To learn how we will deliver results for you, call 480.966.2301 or visit www.cpiaz.com.

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•

Kyle Westfall works in the Phoenix office of JLL, specializing in the representation of Industrial Occupiers and Landlords.

•

Prior to joining JLL, Westfall started his career at Cushman & Wakefield in 2008.

DEALS:

AIRPORT I-10 BUSINESS PARK: Represented Clarion &

SIGNIFICANT

Wentworth Property Company in the 79,000-SF lease with Barlow Distribution at Airport I-10 Business Park, a new Class A Industrial Development near Sky Harbor Airport in Phoenix.

TIRE’S WAREHOUSE: Represented Tire’s Warehouse with

their expansion into Phoenix with an 84,000-SF lease in a new Class A Distribution building at 1502 E. Buckeye Road in Phoenix.

KALYX DEVELOPMENT: Represented Kalyx Development in

their purchase of a 97,500-SF industrial building in Southwest Phoenix.

CURRENT TRENDS YOU’RE SEEING IN INDUSTRIAL?

The continued growth of e-commerce has sustained the increased demand on industrial real estate. In addition to e-commerce growth, third-party logistics occupiers have been very active. New industrial development in infill areas of Metro Phoenix are seeing positive leasing activity and select submarkets are seeing increased rental rates and sale values.

HOW DOES THE PHOENIX MARKET COMPARE NATIONALLY?

Phoenix has become a significant player for companies looking for a western region industrial facility and is on track to continue its strong positive absorption numbers of the last couple years. We have seen positive trends and activity in multiple submarkets and size ranges which provides a balanced and healthy industrial market. According to the U.S. Bureau of Economic Analysis, Arizona ranked No. 6 nationally for annual GDP growth in Q1 2016.

BEST CLASSIC MOVIE? FIRST RECORD YOU PURCHASED? 16

FAVORITE CLASSIC CAR?

“The Godfather” My dad gave me a Led Zeppelin IV record.

1955 Chevy Truck

Providing Commercial Real Estate

Financing Solutions For Over 25 Years Offices Located In: Phoenix Las Vegas Los Angeles Newport Beach San Francisco Sacramento Spokane Seattle

Recent Transactions $53,500,000 Scottsdale, AZ Scottsdale Fiesta

$125,000,000 Century City, CA 1900 Avenue Of The Stars

$44,500,000 Fort Worth, TX Class-A Distribution Center

$137,500,000 San Francisco, CA 25 Story, Class-A Office

$44,276,000 Seattle, WA 206 Unit, Class-A Multifamily

$123,000,000 Boston, MA FBI Building

Newmark Realty Capital Inc. is the largest independent commercial mortgage banking firm in the Western United States. On behalf of commercial real estate developers and investors, Newmark arranges debt and equity financing from $1 million to over $200 million. Financing is arranged through major institutional real estate investors including life insurance companies, pension funds, government sponsored agencies, commercial and investment banks. With private and independent ownership, all of Newmark’s shareholders are directly involved in loan origination on a daily basis. In 2015, Newmark closed over $2.3 Billion in loans representing over 300 transactions.

newmarkrealtycapital.com

Broker Team of the

MONTH

A S H L E Y

JIM

BROOKS B AY L E S S of

W

CBRE

{presented

ith nearly six decades of professional experience between the two of them and 15 years working as a team, CBRE’s Ashley Brooks and Jim Bayless have seen a lot of changes occur within the commercial real estate industry as new technologies changed the way people do business.

However, Brooks and Bayless know that these new concepts are a complement to – rather than a replacement for – good, old-fashioned relationship building. /// That is why for over a decade, the team has taken a hands-on approach to servicing owners and tenants while also utilizing emerging technologies to improve the client experience. /// Brooks got his start with McNeff Palmer after answering an on-campus advertisement while attending the Cox School of Business at Southern Methodist University in Dallas, Texas. Following 18

by}

Willmeng Construction

graduation, he moved to Phoenix and eventually landed at Insignia Financial Group. /// Bayless, a fourth generation Arizonan, graduated from the University of Arizona and worked for a variety of real estate firms before also coming to Insignia and joining forces with Brooks. When Insignia was acquired by CBRE, the pair stayed on and Bayless reached out to Brooks to propose the partnership they maintain today. /// “He’s my longest relationship,” Bayless jokes of Brooks. “He gets a Valentine’s Day card every year.” /// The two men have come a long way since the early days when Bayless was pulling microfiche, the old-fashioned way of accessing archives for research purposes. /// “When I started, there was no internet, no cellphones and limited fax,” he says. “In the old days, you were typically at your desk, [or meeting] face-to-face.”

Broker Team of the

MONTH

TRADEMARK CHARM While technology has made it easier than ever to work from anywhere, the partnership never forgets the value of dealing with clients on a personal level. /// Their method seems to be working as Brooks and Bayless have become the premier office services team in Northwest Phoenix. The team completed roughly 1.7 million square feet of sales and leasing activity in 2014 and then handled half of all major office transactions in the submarket in 2015. /// The team services both landlords and tenants, with Brooks focusing on landlords while Bayless takes care of the tenants, and they do so with their trademark charm. Anyone who has sat down with the two for more than a few minutes can attest to their infectious personalities, and it’s easy to see why they develop so many close relationships with clients. /// “We try to bring humor, personality and perspective to the job,” Brooks says. “At the end of the day, a little humor never hurt anyone.”

NW PHOENIX Northwest Phoenix does not have the cache of Biltmore or Tempe but don’t let that fool you.

The submarket is extremely attractive to a range of major employers due to its central location, proximity to major freeways and amenities – and most importantly – its educated, skilled workforce. /// In fact, the biggest challenge the team faces is finding enough available space for potential users looking to move into or expand in the Northwest Phoenix area, which is currently experiencing only four percent vacancy in Class A office space. /// “To someone on the outside that [vacancy] looks great,” Bayless says. “But we look at it and see a problem. Why is there a four percent vacancy? There is obviously pent up demand.” /// The need for new development is why the team is not just focused on selling and leasing existing space. Time is also dedicated to trying to convince developers to bring more product on line in the area. And why not? With a client roster that includes a range of Fortune 1000 companies, Brooks and Bayless know that the demand is there. /// Some companies the team recently worked with include Cox Communications, Trammell Crow, ServiceMaster, DR Horton Homes, Redflex Traffic Systems, American Express, Discover Card, US Foods, Rockwell Automation, Irgens, Enghouse Interactive, Ewing Irrigation, John F. Long and Oaktree Capital, which currently trusts the team to lease roughly 500,000 SF of property. Also, Regent Properties has the team hustling on five different office projects totaling almost 900,000 SF.

WE TRY TO BRING HUMOR, PERSONALITY & PERSPECTIVE TO T H E J O B . AT T H E E N D O F T H E D AY, A LITTLE HUMOR NEVER HURT ANYONE. – Ashley Brooks

M A R K E T I N D I C AT O R S The indicators for the market point toward even more growth; rents are increasing as existing businesses expand and new businesses enter the area. Though, some stagnation always occurs during presidential elections, because many investors hit pause to see how it will turn out first. But once the election cycle runs its course, the team expects business as usual. /// Brooks and Bayless have created a one-stop shop for companies looking to develop space in the market. The team’s strategy is to sell land to the developer, consult on the design of the building, lease it up and then sell the building once occupancy has stabilized. /// “We have been very successful in the Northwest market doing that,” Brooks says. “We are humbled by satisfied clients.”

19

Broker Team of the

MONTH A P O W E R F U L F O U N D AT I O N It all goes back to the relationship building that sits at the foundation of the work the team does. They truly consider many of their clients their friends and do their best to make sure the investments made by their owner and developer clients pay off. /// No project better exemplifies that than a recent speculative office project the team works on for The United States Automobile Association (USAA), a Texas-based Fortune 500 diversified financial services group of companies. The firm and its subsidiaries offer banking, investing, and insurance to people and families that serve, or served, in the United States military. /// The complex, built by Wespac Construction, is called Norterra West and features two three-story Class A office buildings and 6/1,000 parking. Beyond its quantifiable qualities, the true value of Norterra West came through to Brooks and Bayless during its groundbreaking last year when a USAA executive drove home the importance of the development by emphasizing the fact that the company does not take its investments lightly because of who it represents. /// “It was such a powerful message that they are entrusting that capital to us to help fill the building,” Brooks says.

“When you see somebody talk like that – it’s so impactful. This project was about helping veterans and their families; people who have served our country. That really means something beyond just selling or leasing a building.”

Ashley Brooks (L) & Jim Bayless (R) “rehydrate” after the 2009 Rocky Point Triathlon.

When asked about the race Brooks said,

W H AT ’ S N E X T ?

Despite dominating the Northwest Phoenix office market, Brooks and Bayless are not looking to branch out into other parts of the city. Rather, they’re focused on further honing their expertise in the area in order to better serve their clients. /// “We work one market. We see every deal, and we know every deal,” Bayless says. “We are laser-focused on one market and understand what happens there. If you want to be in that market as a landlord or a tenant, do you want someone who dabbles in it or someone whose sole focus is that area?” /// Based on their impressive client roster and transaction totals, the heavy-hitting companies in the Northwest Valley have spoken, and they choose Ashley Brooks and Jim Bayless.

“I PICKED A SHORT ONE. I WANTED TO MAKE SURE WE WOULDN’T GET TOO FAR AWAY FROM THE CORONA AID STATION.” 20

“YOU CAN’T PUT A LIMIT ON ANYTHING. THE MORE YOU DREAM, THE FARTHER YOU GO.” – MICHAEL PHELPS

OLYMPIC-MEDAL WINNING SWIMMER

DREAMING BIG. 480.968.4755 | WILLMENG.COM | # 082904, Class B-01

WATCH

Company-to-

JANET L e PAGE Co-Founder and CEO anadian money is flowing into the United States commercial real estate sphere to the tune of $27.9 billion — yes, billion — from Q1 of 2015 through Q1 2016. This fact is not lost on Janet LePage, CoFounder and CEO of Western Wealth Capital, a British Columbiabased real estate investment firm that has been extremely active in one particular area to note: Greater Phoenix. /// “We chose and continue to choose metro Phoenix, because it is one of the strongest job growth areas and the projections show out to 2018 and even 2019 that will continue,” she says. /// Formed in 2013, WWC has skyrocketed to prominence as a cross-border CRE investor for their clientele. In just three years, the company now holds the title as the third largest multifamily owner in Phoenix in terms of number of properties and eighth largest in terms of units. /// “We only focus on the B [class] and C [class] space in the multifamily sector,” LePage says. “We think there is a solid run in this particular niche we like to play in, which is a value-add, not turnkey.” With a portfolio of 24 properties comprised of 3,800 units and valued at over $300 million, it’s no surprise the firm generated revenues of $26 million in 2015.

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Asset Repositioning

Acquistions

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Development

Leasing & Sales

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Company-to-

WATCH

PAGE-TURNER With a Bachelor’s of Science degree in Computer Science and Business Administration from Canada’s Simon Fraser University, LePage worked in director roles for two large companies in Vancouver, TELUS and Ledcor, before turning her attention to real estate in 2008. /// Beginning in the residential market, the young entrepreneur purchased her first investment property in Phoenix after finding the Vancouver pricing to be uncompetitive. Over the next two years, her purchase parlayed into a 58-home acquisition, improvement and divestiture, at which point she set her sights on multifamily and WWC was born. Since inception, LePage has generated a significant annual return for its 180 international investors.

VALLEY TAKEOVER? With the WWC portfolio all-in with the Phoenix multifamily market, LePage points to solid fundamentals as the catalyst for her investment thesis. “It is the perfect storm with the highest population growth moving into a rental situation within the B and C multifamily space, and you can’t build more product without charging double the rent to make it worthwhile,” she says. “[Right now] there is extremely high demand and diminishing supply, resulting in high occupancies near 100 percent, leading to very high continued rent growth, which is exactly what any multifamily property owner is looking for.” /// WWC’s deal flow has been particularly active recently with a one-day portfolio purchase of four properties last May: Sandal Ridge, Penny Lane, Desert Wind and Las Vistas at Papago Park.

24

BUILDING MOMENTUM 5 LOCATIONS IN CHANDLER AND GILBERT

CHANDLER CORPORATE CENTER IV OCCUPANCY SUMMER, 2016

INDUSTRIAL, OFFICE AND FLEX | INFRASTRUCTURE IN PLACE | PROVEN EXPERTISE IN FOREIGN TRADE ZONES | FULLY ENTITLED / READY TO BUILD

Chandler Corporate Center Chandler Boulevard and McClintock Drive Chandler, AZ

Chandler Corporate Center III 82,000 s.f. office/flex 6,400 s.f. now available

RG Chandler 101

Chandler Crossroads

Loop 101 at Chandler Boulevard Chandler, AZ rg-chandler101.com office, hotel and retail opportunities available

Gilbert Road and Queen Creek Road Chandler, AZ

Chandler Corporate Center IV 86,000 s.f. office/flex Occupancy Summer, 2016

Gilbert Crossroads

Rockefeller Group

North Gateway

Germann Road just east of Gilbert Road Gilbert, AZ

Warner Road and Recker Road Gilbert, AZ

D EV E L O P E R

E X C L U S I V E A G E NT

James V. Camp

Mark Singerman, LEED AP

Senior Vice President and Regional Development Officer

Vice President Regional Director - Arizona

RGDC-CA@rockgrp.com

RGDC-AZ@rockgrp.com

®

www.rockefellergroup.com

Office:

Phil Breidenbach, SIOR phil.breidenbach@colliers.com 602-222-5073

Industrial:

Paul Sieczkowski, SIOR paul.sieczkowski@colliers.com 602-222-5085

2390 E. Camelback Road, Rob Martensen, SIOR, CCIM Suite 100 rob.martensen@colliers.com Phoenix, AZ 85016 602-222-5082 602-222-5000 www.colliers.com

WATCH

Company-to-

/// “Buying a portfolio was a new experience and a great growth exercise,” she says. “Each property fit into our sandbox, our rules of finding an undermanaged asset, and provided an opportunity to add value through interior and exterior upgrades, while managing the cash flow growth.” /// In early August, the firm was back at the bargaining table with a $35 million-acquisition of Arbors on 5th in Tempe and Arcadia Walk on 44th street in Phoenix. “The new purchases in the Tempe and Arcadia pockets along with other properties we own in those areas have double the rent growth than in many other areas,” LePage says.

“That is due to the affluence of those living there and the jobs generated around the area. We are very bullish on these two pockets.” /// Arbors on 5th, a 197-unit was purchased for $21.3 million and sits on eight acres of land in the heart of Arizona State University. “Anything you can do to be in pocket of the largest university in the U.S. is an advantage,” she says. “We were able to purchase the property at the same price as a competitive bid, a developer who was looking at new construction.

We could not resist the fact that we were able to purchase a cash-flowing multifamily asset in that demand sector for the same price as land value and have two great exit options.” /// Arcadia Walk with 148 units was acquired for $13.66 million and provided LePage to seize on the economics of the bustling 44th street. “The area has astronomically high occupancy levels,” she says. “There is not enough product in the space.”

WHAT’S NEXT? LePage is seeing a long runway for purchases in Phoenix, but is also eager to explore other metros. “We are interested in diversifying and will open up a second geography in the next 12 months,” she says. “We are doing our legwork in Houston, Dallas and some pockets along the California coast.” /// Although, she admits the business is much more than just buying buildings. Being a 35-year-old, mother of two, and entrepreneur in the traditionally male-dominated industry never discouraged her from accomplishing what she wants to. Aside from owning large-scale properties and her CRE investing philosophy to find great values for clients, another top priority is to find ways to create better lives for the families of tenants that live in the company’s units. /// “Each year we run a program called ‘Rent-Free Christmas’, giving the gift of free rent to a family in need in each of the properties we own,” she says. “We also give away backpacks of school supplies to about 350-500 children living in our buildings with our ‘We’ve got your Back’ backpack drive.” /// That kind of commitment to investors and renters is what will make the company one to watch in the CRE sector in the coming years. /// “We are not your average company in Phoenix,” she says.

OTHER PROJECTS by CANADIAN INVESTORS

26

PROJECT

SIZE

LOCATION

BUYER

SELLER

PRICE

NOTES

Office

51,081 SF

5055 East Washington St., Phoenix

Realscape Asset Holdings LP (Cityscape Development Corp.)

Blue Hat Partners, LLC

$11.75 M

The 3-Story building is 100% leased.

Crosswinds Apartments

374 Units

868 South Arizona Ave., Chandler

Emma Capital Investments Inc.

Bellstone VI, LLC (P.B. Bell Cos.)

$22 M

Built in 1985; Cindy & Brad Cooke of Colliers International negotiated transaction

Mayflower Apartments

22 Units

1433 South Stanley Pl., Tempe

AAL at Tempe One LLLP & A.T. Property Investors HUB Inc.

Paul Adams Palms, LLC

$1.625 M

Built in 1978; Arizona Investment & Management LLC rep’d buyer

GAME CHANGER Collaboration Integrity

INNOVATION

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PROFILE

Executive

As Newmark Realty Capital Inc., the largest independent commercial mortgage banking firm in Western United States, nears $9 billion in servicing overall, the principal and founder of its Arizona office, Tim Storey, looks back on the factors that have contributed to his branch’s steady growth since its launch in 2004.

TIM STOREY Principal, Newmark Realty Capital – Phoenix

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/// Storey and his two local partners, Patrick Barkley and Adam Parker, are proud to announce that Newmark has closed more than $2.3 billion in loans in 2015 with 90 different lenders represented. /// Originally from a smaller regional firm, Storey and a team of colleagues were drawn to Newmark for the freedom it allows its employees. Because Newmark is a privately held company, decisions can be made with the client in mind and no one has to answer to a board. /// “We wanted the opportunity to work on our own – to control our own destiny, so to speak. We very much value our independence,” Storey says. /// That decisionmaking power has allowed Newmark’s Arizona office to gain a stable foothold in the local market. Even during the Great Recession, the company didn’t lose a single employee company-wide. And that survival was made possible by the success of its servicing team and portfolio. The servicing group’s longevity in addition to smart decision-making has respectfully led to the overall success. Today, the company services almost 1,200 loans and is approaching $9 billion in servicing.

SCOTTSDALE LANDING

SCOTTSDALE AIRPORT 5

2 3

BELL ROAD

1 4

PROFILE

Executive

Executive Storey

Transactions to Note

Storey has reached the rank he’s at today by not wasting any time on the path to pursuing his goal of being in this industry. Upon graduating from University of Arizona, he completed CB Commercial’s (presently CBRE) training program and earned his real estate salesperson license at the same time. /// Prior to opening the doors of Newmark’s Phoenix office, he arranged debt and equity financing for his clients as a senior vice president with Churchill Mortgage Corporation. /// Also on his resume is serving as the past President of the Arizona Commercial Lenders Association and a past member of the Men’s Board at the Fresh Start Women’s Organization. /// Fastforward to today, Storey just finished his sixth and final year on Board of Trustees for All Saints’ Episcopal Day School, and he resides in Phoenix with his wife and two daughters.

However, the growth of retail is undeniable; in fact, one of Storey’s most complicated deals was for a client with a portfolio of 11 shopping centers. Local investor, PDG was in the process of refinancing multiple loans, and Storey and his crew were able to put all the centers under one loan: to the tune of $270 million. /// Even more notable was Newmark’s work with State Farm in 2015, which was the first construction-permanent loan that State Farm had originated in this market, and a first of its kind for Storey and his team. The loan was used to fund the project from construction into a 10-year fixed rate loan. /// Most recently, Newmark wrote the loan for a brand-new, designerdetailed and premium upgraded Class A apartment development located in North Phoenix, off the Loop 101 freeway. Some of its most innovative amenities include: smart thermostats, USB charging outlets as well as resort-style features such as a yoga studio and volleyball courts.

Trends

Market Outlook

With more than 25 years of experience in the game, Storey knows a thing or two about what to expect in the near future and down the line. /// Storey notes that the Arizona office has typically financed roughly 50 percent of its business with CMBS (Wall Street) lenders and the rest with life companies and banks. There is a real possibility however, that CMBS transactions will be less competitive toward the latter part of 2016 as industry regulation has made changes to risk retention policy. This segment of the market is currently facing some uncertainty. /// The evolving nature of retail is also a challenge, as retail center owners contend with the growing popularity of online ordering, which is challenging the longevity of once booming retail centers.

Storey believes the market will to continue to grow and evolve, and observes that while multifamily is particularly strong, some institutional lenders are concerned about overbuilding. /// But even with evolving market trends and technology that alters the process of securing a loan, the face-to-face, relationshipbuilding aspect of the job is one Storey believes will never change. /// “I think there’s a tendency to fall back on email, which can be dangerous. At the end of the day, to be successful, our business is one in which we still need to be in front of the client on a regular basis,” Storey says.

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The Offices At

Delivering in 2018

F O R M O R E I N F O R M AT I O N P L E A S E C O N TA C T:

JERRY ROBERTS Executive Vice President 602.735.5528 jerry.roberts@cbre.com

PAT BOYLE Associate 602.735.5275 patrick.boyle@cbre.com

Company

SPOTLIGHT

In 1921,

Edward Gray founded the Chicago Concrete Breaking Company. Thus began what today is the third generation, family-owned Graycor Construction Company, one of the top providers of general contracting and construction management services throughout the United States, Canada and Mexico. With offices in Oakbrook Terrace, Illinois, Charlotte, North Carolina and Phoenix, Arizona, the Graycor team is excited to celebrate their 95th year in business this year. /// Todd Ostransky, General Manager – Southwest Division for Graycor’s Phoenix office, boils Graycor’s success and longevity down to a foundational element: people. /// “What I think separates us as unique is really our people and how we look at business; we look at business through the eyes of our people,” Ostransky says.

“The growth of our team determines the evolution of the company.

It is also what allows us to grow our regional presence in areas such as office, retail, mixed-use, industrial and hospitality development, as we’re doing now. It is all about this team and helping them support our clients.” /// Ostransky started with this team in 2003, working under industry veteran Ray Nitti, when the company was known as Nitti Brothers Construction. In 2010 the firm merged with Graycor Construction Company to become Nitti-Graycor. It was through Graycor’s people, the way they conducted business and the core values they embodied that Ostransky recognized this firm was different than any other firm in the market. /// “The ability to blend Nitti-Graycor’s 15-year history of relationships and partnerships in Phoenix with the transparency, family values and impressive financial stability of such a well-respected national firm as Graycor is rare,” says Ostransky. “Over the last six years, I’ve seen firsthand that Graycor’s ‘Building Something More’ isn’t just a slogan; it’s truly the way we approach every interaction we have.”

“ THIS IS A PEOPLE INDUSTRY ;

we put a lot of emphasis on coordinating good internal teams & ones that match the client.”

A BIGGE R P U R PO S E

32

Nitti-Graycor earned accolades for their innovative and highly respected projects, including the redevelopment of the Salvation Army Herberger Campus, which was completed in 2012 as a mixed-use property. The team replaced 160,000 square feet of old space with new structures, including two new buildings that housed divisional headquarters and a social services building that included transitional-living units able to provide approximately 50 families with short-term housing at any given time. /// “The Salvation Army job had a

bigger purpose,” said Ostransky. “It was a rewarding project because it challenged us and allowed us to deliver something that would make a lasting impact.” /// In early 2016, this team took the next major step toward its bigger purpose by formally adopting the name Graycor Construction Company and relocating into a new office on East Washington Street in Phoenix. Along with the relocation, the Southwest division is making strategic moves to capitalize on Graycor’s national platform of strengths. This includes industrial and tenant improvement, as well as award-winning office, retail and hospitality skill sets. ///

Company

SPOTLIGHT

(From L to R): Roger Sautter, Kyle Walker, Jennifer Delaporte, Todd Ostransky, Geovanni Villalta & Mark Franko /// It also includes Graycor’s distinct “live environment” approach to renovation and expansion projects – a detailed planning process that eliminates or minimizes disruption to ongoing operations. This time-tested practice dates back to the earlier days of the company, when Graycor successfully tackled some of the industry’s toughest jobs and adopted its famed motto that it still embraces today: “Wanted: A Hard Job.” /// “Our new office is the perfect reflection of today’s Graycor – it is creative, sophisticated, hard-working and future-focused,” Ostransky says.

THE F U T U RE I S N OW

Graycor’s desire to make a lasting impact is evident in how it builds its buildings, including a focus on sustainable building practices. /// “We have 21 LEED (Leadership in Energy and Environmental Design) accredited professionals at Graycor – we promote it, we understand it,” Ostransky says, adding that he not only looks for clients who want to build sustainably but often uses Graycor’s expertise and experience to take projects to an even higher level of certification while still remaining within the parameters of the original budget. /// The future is also top of mind when Graycor builds large developments, including multi-tenant industrial space. /// “When we build a speculative industrial building, we typically build it as a cold dark shell,” he says, meaning that it is something of a blank slate inside. “Our job is to think ahead and be proactive, and give our clients the expertise we have on these buildings so they can fully accommodate the tenants that will eventually move in.”

Because Graycor builds flexibility into projects from the beginning – from power to divisibility and beyond – owners are in a position to respond to existing and prospective tenant needs quickly. /// But none of this could happen without great clients, Ostransky adds. “We have had the fortunate opportunity to work with clients who share our vision and dedication, and on projects that we can add value to. With our expertise and resources, we bring a lot to the table. When these scenarios happen, they are magic.”

HAVE E XPE RTS . W I L L TRAV E L. 34

The shared vision and chemistry between internal teams and client teams is one that is often on Ostransky’s mind. /// “This is a people industry; we put a lot of emphasis on coordinating good internal teams that match the client.

We believe it is really important to keep team chemistry a key consideration on every job,” he says. /// That chemistry is also important because, while the Southwest team is based in Phoenix, they often travel across the nation to complete client projects in other markets. “We go where our clients need us, using a core team from our region and support from experts in our Chicago or Charlotte offices, as projects demand,” said Ostransky. /// Such is the case with FedEx Ground. Graycor’s portfolio includes six projects for the shipping company over the past several years, to the tune of more than 1.7 million square feet in markets spanning Chandler, Ariz., Tacoma, Wash., and King of Prussia, PA. Other Graycor clients with a national footprint include Marriott International Inc., Kerasotes ShowPlace Theatres, AMC Theatres, Simon Property Group, Westfield Corporation, Forest City, SunCap Property Group, Robert Bosch LLC, Crate & Barrel and The Container Store. /// As the industry ramps up in sophistication, the collaboration between Graycor’s U.S. divisions continues to prove valuable, allowing the company to take on an array of projects, big and small, while dealing with the same issues assailing the entire construction industry: a subcontractor market that is getting stretched for resources and the neverending quest for finding quality talent. /// “Our growth is dependent on our people, so we put a lot of emphasis on finding and developing the right teammates. Together, we work to identify trends, challenges and opportunities before they happen, so that we are always working toward the best interest of our clients,” Ostransky says. /// That teamwork includes utilizing the depth and breadth of Graycor’s national experience, particularly as the company looks to expand its platform in the Southwest market with more industrial, hospitality, retail and entertainment projects.

Project at a

GLANCE

The Salvation Army

Herberger Social Service & Administration CAMPUS REDEVELOPMENT THE SALVATION ARMY HERBERGER CAMPUS totals 15.3 acres at 2707 E. Van Buren St. in Phoenix. Built in the 1950s as a premier hotel, the property since 1985 has been home to the Salvation Army’s Southwest Divisional Headquarters, fulfilling administrative functions for the region and providing aid for the homeless, working class, youth, addicted, elderly and abused.

U NIQ UE RENO VATIO NS : •

Angled columns in both the Headquarters building and at the entry of the Social Services building pay respect to TSA’s origin in tent meetings

•

Color schemes selected for their ability to be both hospitable and relatable, warm and welcoming

•

Uplifting amenities such as an outdoor water “splash pad” and a cafeteria with a built-in projector for movie screenings

•

Technology and AV tools that are woven in as integral features to the function of the public and executive spaces

•

Kitchenettes incorporated into each transitional living unit

/// In 2011/2012, Graycor Construction served as the general contractor for the redevelopment of the campus – an effort that replaced 160,000 square feet of failing space with two new buildings including a 40,000-SF Divisional Headquarters and a 30,000-SF Social Services Building that features transitionalliving quarters. It also included renovation of an on-site warehouse used for food storage and events such as the annual Christmas Angel program and Turkey Drive. /// Although the new master plan reduced total building space by 60,000-SF, its revised layout and design actually improved efficiencies in leadership, training, administrative and social services. It also drastically improved physical efficiencies, with the

potential to reduce operating and maintenance budgets by as much as $1.1 million per year. This is critical for a facility administering to an entire Southwest Division and serving more than three million families and individuals each year.

Out of respect for the Herberger family and their dedication to The Salvation Army, the new campus maintains the Herberger name.

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WATCH

Executive-to-

R E L AT I O N S H I P S “Gene is one of the most DIL IG E NT & C R E AT IV E problem solvers I have been associated with in my 40 years in the commercial real estate business.”

JON KRIEGER, Co-branch Manager, Berkadia Scottsdale (originally hired Kim at GMAC)

F 36

or Gene Kim, his position of being the director of private lending and responsible for business development and loan origination for the Scottsdale-based, national private lending & investment firm, YAM Capital is as far as possible away from his first job out of college. /// “I wanted to work with children,” Kim says. “I worked with abused kids at the Child Crisis Center in Mesa and saw things that I did not know existed – it was very difficult.” /// Now over 20 years later, Kim can survey that early experience and reflect upon what it took to reach the level of success he has achieved today. “I’ve worked very hard to distinguish my credibility and reputation,” he says. “I have always been a student of studying people, understanding them, and then making connections. Commercial lending is a relationship business.

We deal with large dollar amounts but at the end of the day, the decisions are made by people.” /// YAM Capital specializes in providing bridge financing for commercial real estate projects across the country and is a part of Bob Parsons’ YAM Worldwide group of companies. The entrepreneurial mogul wanted a commercial lending vehicle as part of his portfolio of offerings and thus YAM Capital was born.

The short-term private lender is the perfect place for Kim

to utilize his sharp business relationship skills, analytical muscle and entrepreneurial spirit.

HUMBLE BEGINNINGS Originally from a small town outside of New York City, Kim grew up in a first-generation American household, with his parents being immigrants from South Korea. “My father was an engineer and wanted me to be the same,” he says. “My parents are where I get my work ethic and loyalty from. My father worked for two companies during his 50-year career, and my-father-in-law worked for one.” /// Kim attended the University of Massachusetts at Amherst, earning a bachelor’s degree in business administration and psychology. “I did start out studying engineering, but changed my major after a year,” he says. “Studying psychology has helped me understand people and develop my career as much as studying business.” /// Following college, Kim recalls a trip he took to Arizona and the life-changing implications of the visit. “I came out to see a few friends and loved Phoenix immediately,” he says. “The housing and cost of living were no comparison to New York. What was initially intended to be a visit soon became permanent, especially after meeting my wife, Cyndi.”

WATCH

Executive-to-

EARLY CAREER Transwestern, the CRE advisory firm, was Kim’s introduction to the industry. “The company wanted to open a Phoenix office. At the start it was two vice presidents and me – one in charge of acquisitions and leasing, Cliff Denton, and the other for asset management, Perry Williams,” he says. “I had no professional or corporate experience, let alone CRE, but they took a chance on me and the three of us worked very well together.” /// Eventually, Kim went on to help develop a boutique brokerage startup and NAI Horizon spinoff, EBS, during which time he and his wife had their first child. He also went back to school at night at Arizona State University to earn his MBA and was part of the inaugural class of the W. P. Carey School of Business after real estate professional Bill Carey made his endowment to the university.

back, particularly through his foundation (The Bob and Renee Parsons Foundation) and commitment to The Giving Pledge.”

YAM CAPITAL YAM Capital is looking to grow its lending profile in the commercial space and Kim sees opportunity. “Our tag line is Bridge Loans Fast. Our process is designed to move quickly and efficiently,” he says. “We have a small yet experienced team, talented and capable of producing large volumes.” /// Even so, Kim who cut his teeth on the analytics side of the business will not shy away from the importance of the due diligence process. As for the market, Kim is cautiously optimistic.

“Currently major CRE product types have been performing very well among main indicators: vacancy rates, rental rates, net absorption, construction levels and new deliveries; although in some cases the growth has been aggressive. /// As

GMAC AND KEYSTONE From his CRE roots at Transwestern, Kim found himself in a new role in the industry – this time on the financing side working at GMAC Commercial Mortgage. “One of the most meaningful things about the MBA program was gaining a relationship with John Kinser of NorthMarq Capital, who remains one of my closest friends to this day,” he says. “John introduced me to Jon Krieger (the branch manager at GMAC), which led to me being hired there.” /// After General Motors’ divestiture of the GMAC lending business to investors led by private equity firm Kohlberg Kravis Roberts, the company re-branded as Capmark Finance along with a change to the business model. /// According to Kim, this was in 2006/2007 and the company wanted to focus on their lending products, such as their bridge, GSE and CMBS platforms, and move away from third party lending, which ultimately led to Capmark closing many life-company focused offices across the network, including Phoenix. /// “This was the best thing to happen. We simply moved across the street and created our own mortgage banking company, Keystone,” he says. “We maintained all of our life company correspondents and even added a few more. Ironically, the direction Capmark was headed was hit hardest in the downturn while we were active with our life companies. You could say it was Darwinism at work.” /// The Keystone brand eventually sold to Berkadia Commercial Mortgage where Kim served as Vice President before joining YAM Capital. “Our goal was a five- to seven-year time horizon and then sell the business,” he says. “We had multiple suitors and eventually went with Berkadia.”

RELATIONSHIPS Throughout Kim’s career, he has had a primary role in building several companies, allowing him to develop great connections and work with some of the best people in the business. /// “Cliff Denton and Perry Williams taught me the basics of the business,” he says. “At Keystone I was heavily influenced and mentored by all my partners (Scott Holland, Jon Krieger, Ryan Nelson and Charlie Williams). To this day I remain very close with my now former partners, particularly Scott Holland and Jon Krieger, and regard them as my closest friends and sources of counsel.” /// Now, a new relationship has begun with Bob Parsons and Kim is excited about the prospects. “I have always wanted to team up with successful people where you want your career path to follow and who better than Bob Parsons?” he says. “What I admire about Bob is the fact that he is self-made from humble beginnings. You look at what he has done and accomplished; and now just wants to give

“I think Gene is a great fit for YAM Capital. He is extremely well-educated in the real estate finance game having represented numerous lenders over his career. He has seen the good & the bad as an intermediary & has taken the best in practice to his position as a lender with YAM Capital.”

far as outlook and potential concerns, he says, “Despite all the predictions, the reality is all we can really do is be reactive, deal with the environment we are in. There are things beyond our control to monitor and will have an impact on CRE lending, things like the wall of CMBS maturities; Dodd Frank and risk retention; the future of the agencies (Fannie Mae and Freddie Mac); or when the next downturn in the cycle will hit. And on a more macro level – how the FED controls rates to govern inflation; geo-political events; oil and energy; and of course, the election.” /// Relative to YAM’s expansion rate, Kim sees a steady engagement, not a race to the finish. “With all the unknowns and potential issues to deal with it could be a good time for bridge and portfolio lending.”

LIFE LESSONS Kim likes to describe himself in terms of bifurcations. “It’s one thing I like about the Korean flag, a harmony of opposites,” he says. “I am analytical but artistic, logical but creative, and realistic but idealistic.” /// As for the traits that he has found to be the most important in his life and passes on to his three kids, they are diversity, character, work ethic and of particular importance, “I call them the ‘athy’s: a healthy dose of empathy, sympathy and apathy,” he says. On that last point, he clarifies: “I do not mean not caring; I mean you have to have a thick skin so you can rebound when things do not go your way.” /// At YAM Capital, Kim has an opportunity to define the business model and position the brand as a unique operator in a crowded lending landscape. “I’ve been breaking down stereotypes my whole life,” he says. /// Like his mentor, Parsons, Kim can play an integral role in building a dynamic company based on their shared innovative energy and spirit. “The opportunity to help grow the lending platform and YAM Capital has sparked that entrepreneurial excitement.”

37

Company

UPDATE Mountainside Fitness, Phoenix

Chris Volk

Mary Fedewa

“Our customers understand the value we create for them, not only through lowering their cost of capital, but by giving them a much more flexible financial structure.”

- Chris Volk, President & CEO

S 38

ince their initial public offering in November of 2014, STORE Capital has far exceeded Wall Street’s expectations of growth, financial strength and market share.

The stock, which priced on the New York Stock Exchange (NYSE: STOR) at $18.50, now has appreciated to over $31.00 as of August 1. /// “We have been incredibly busy on the acquisition front. The market is there and we have struck gold,” says President and CEO Chris Volk. /// Single Tenant Operational Real Estate, better known as STORE, is running on all cylinders with a year-to-date return of over 30 percent and the largest increase of dividend payouts (eight percent) as compared with real estate investment trusts of their caliber over the past year. /// “We have guidance of $1 billion of

new investments, net of any sales, for the year with a balance sheet of nearly $4.6 billion in assets,” he says. /// As of June 30, the REIT holds investments in over 1,500 property locations.

The company’s financials are equally impressive as indicated in their most recent 10-Q filing. It reflects revenues of just over $177 million for the first half of 2016 and net income of over $55 million for the same period.

START

Born five years ago by combining the talents of founders, Volk and Fedewa and industry experts Morton Fleischer, Catherine Long, Michael Bennett and Michael Zieg, STORE has capitalized on market customers that are seeking opportunities beyond traditional commercial real estate ownership.

/// Mary Fedewa is the Executive Vice President of Operations and the newest member of STORE’s Board of Directors. “We are filling a need and providing superior solutions for our customers, which are middlemarket and larger companies,” says Fedewa. “We show our customers that it is a better option to lease their real estate than own it and we offer tailored solutions that can increase the return on equity in their business.” /// With an asset portfolio consisting predominantly of service businesses, STORE brings a unique offering to the marketplace. “Customers have choices of who their landlord is or whether they want to own instead,” Volk says.

“Our customers understand the value we create for them not only through lowering their cost of capital, but by giving them superior flexibility.”

Company

BUSINESS PHILOSOPHY Key to the company’s rapid growth posture is a commitment to a value proposition based on the tenant first. “We are focused on being a customer-centric company,” Fedewa says. “For us, differentiating STORE in the marketplace is all about trying to do more for the customer.

When our customers win, we win.” /// Volk takes that position and extends it further by identifying the key driver of the firm’s philosophy.

“The success of most real estate investment companies is dependent on the quality of the real estate,” he says. “Our success though, has always been based on how well our tenants do. If we can do things that help our tenants succeed, we become a landlord of choice.”

UPDATE

BUSIN ESS MODEL

Of the many ways in which STORE delivers on their commitment to customers, a priority is harnessing growth opportunity.

“Take the example of a customer who wants to add square footage to a location in order to capitalize on customer demand.

If they do not own the real estate, and their landlord refuses to assist with the property expansion, they really have no financing option. Instead, the tenant has to come out of pocket with their own cash, endure lower equity returns and may forego the expansion as a result. Our mindset has always been to be solutions-oriented in order to raise the values of the tenants we serve,” Volk says. “At STORE, we have always believed that our real estate capital solutions should help to create wealth and opportunity for our tenants and not limit them.” /// The availability of innovative solutions for STORE’s customers comes from the company’s own capabilities to uniquely structure their funding sources. “Our Master Funding Solutions were originally made possible because of our Master Funding Trust.

This is our conduit, which provides us flexibility in our financing and borrowing, so that we can do all of these things for our customers, including tax advantage solutions, development capital, location substitution rights, renovate-to-suit and other solutions,” Fedewa says.

CUST OM ER E N G A G E M E NT

Across a diverse range of well-known businesses in the service (about 70 percent), retail (about 17 percent) and industrial (about 13 percent) space including restaurants, movie theaters, health clubs, early childhood education centers and furniture stores, STORE relies on its adaptability and custom solutions to promote brand loyalty. /// Much of the REIT’s competitive advantage rests in their financial offering as a strategic alternative to a banking arrangement. “Fixed-rate loans for long-term financing are difficult to get with banks,” Volk says. “We think of a net lease not as a product but a solution, which provides affordable capital, maximization of equity, and keeps cash flow high while having low payments.” /// Fedewa adds that Master Funding Solutions is written into the lease language, so that customers can have access to opportunities down the line; the majority of its customers have 15-year leases. STORE’s customers appear to like what they see; approximately a third of the company’s investment activity results from repeat customers.

NEXT STEPS

One of the ongoing challenges as well as opportunities for STORE is identifying the right client mix – customers who will remain competitive and grow in a rapidly evolving technology-driven economy. /// “We want to have tenants in spaces that are not as easily disrupted by changes in distribution, keeping them relevant for the long-term,” Volk says. /// Because of the STORE approach to building their brand through a client-centric experience as opposed to a real estate driven approach, the leadership team must understand the intricacies of each client’s business. /// “This is precisely why next year during the Phoenix Waste Management Open, we are launching our Inside Track Forum,” Volk says. The event, which customers are invited to attend, aims to provide an education platform for executives to learn more about the trends impacting their businesses. /// “We will have presenters from inside and outside academia providing ideas on how they can make their business better over the next 12-24 months,” he says. “The Forum will provide information on social media, supply chain analysis and technology, while also addressing key points such as access to capital, markets and business valuation.” /// It is clear that STORE’s commitment to its customers and business operation is a fundamental element in the growth trajectory of the corporate brand. As for the leadership team, they want to further embed their model into the REIT investing landscape. /// “We have only scratched the surface. We are striving to make bigger inroads into the market,” Volk says. “The market is almost $2.5 trillion and we are $4.6 billion, so there is a huge opportunity.” Fedewa agrees, “We are as customer-centric as they come, and we are all about providing our customers with the real estate financing tools that can allow them to be richer.” /// For STORE shareholders, that is a blueprint for long-term return on investment.

39

UPDATE

Sector

Industrial Evolution:

The CHANGING FACE of the VALLEY INDUSTRIAL MARKET CBRE SENIOR VICE PRESIDENT PAT FEENEY

gives Commercial Executive Magazine an update on what’s driving metro Phoenix’s red-hot industrial market.

Pat Feeney, CBRE

T

he Valley has seen record-high activity across its industrial property market this summer.

Industrial space of all sizes and submarkets is being absorbed at a faster pace than experts have seen in years. To give some perspective, as of Q2 2016, year-over-year net absorption had already reached 71 percent of 2015’s annual total. Additionally, on a market wide basis, the Valley saw vacancy drop 101 basis points (bps) from Q1 to Q2 2016 and the market’s average asking triple net lease rate was up by 5.2 percent from this time last year. /// All of these indicators point to robust growth in the local and state economy thus far in 2016; and given what we’re seeing in the marketplace, our team expects much more of the same in terms of activity level and deals getting done for the remainder of the year. Drilling down into what’s driving this vigorous activity, demand in the 20,000- to 100,000-SF range has remained strong, and there are multiple multi-tenant projects throughout the market that are 100 percent occupied, which is very unusual. What’s more, multiple large transactions over 200,000 SF have also occurred recently with several more currently being negotiated. While the return of large users to the market is always cause for optimism, what’s unique is there has been a substantial increase in activity from users requiring heavy power and rail. And the desire among these users to get deals done is much more urgent than we’ve seen in the past.

40

UPDATE

Sector

Presently, there are at least six users in our market that are negotiating on rail served properties and two deals were recently signed in the Southwest market: a 100,000 SF and an 85,000 SF user have leased space in rail served properties. The types of users going after large blocks of space are, for the most part, e-commerce, food processing, pharmaceutical, 3-PLs and advanced manufacturing. In particular, the activity from plastic injection molding companies has been very strong. /// Anecdotally, we have a 750,000-SF manufacturing facility listed with 600,000 SF available. We recently had two users in a bidding war trying to gain control of the facility. Ownership chose the user that wanted to buy the building. Our team is now representing the other user, and we are submitting requests for proposal letters next week for a build-to-suit facility because there is currently not a single property in the market that meets their requirement for power and rail. /// I haven’t seen this much rail served manufacturing activity in my entire 30-year career, and this is important to note – Phoenix is emerging as a premier market for advanced manufacturing, and it’s going to change the face of our industrial market and our economy.

Recently, CBRE Research published a report identifying the 12 key markets that have become the major U.S. inland ports.

Each of these markets is characterized by their connection to major seaports, first-rate transportation infrastructure and access to large population markets. Outside of the Inland Empire, Phoenix was the only western market to make the list. As major industrial users, particularly those in the manufacturing and e-commerce/3PL space, look to service the Western U.S., Phoenix has begun to move to the top of their site selection lists. Looking forward, our team expects Phoenix to solidify its position on those lists for a couple reasons:

1. AVAILABILITY AND SPEED TO MARKET OF INDUSTRIAL PRODUCT – The Southern California marketplace has seen some historic absorption numbers for the last several years. In the first half of 2016, that market had a gross absorption of 27.8 million SF. There is now only one facility offering space over 1 million SF and a shrinking amount of space that can accommodate requirements of 300,000 to 500,000 SF. As for new/planned space, the entitlement process in Southern California can take over two years in some cases. I believe this smaller supply of buildings is going to result in Phoenix being a top consideration for future west coast distribution facilities.

Our market can easily deliver a concrete building, start to finish, in less than a year.

2. COST OF LABOR – All of the manufacturing users we are currently working with tell us the same thing: They want to service customers in the western states, but they don’t want to locate in California if they can help it. I believe the $15 per hour minimum wage in California is one of the main reasons for this. Historically, we have had to battle the cost of shipping goods to the Southern California area as a primary reason Phoenix came in second for these users, but I believe the new minimum wage and higher workman’s comp are going to help in eliminating that objection.

Heading into the remainder of 2016, look for manufacturing and supply chain activity to remain strong. The key industrial real estate implication of Phoenix’s growth as an inland port and emerging manufacturing hub will be the need for more big-box space, particularly quality, Class A space that meets modern users’ requirements. As major users look to the Valley to flee less desirable conditions in Southern California, real estate, economic development and business leaders need to be ready to work to ensure we capitalize on current positive momentum. We’re in a position to elevate not only our industrial property market, but Phoenix and Arizona’s economic viability as a whole.

The Phoenix industrial market is on the verge of major change and that’s something to be excited about.

41

UPDATE

Sector

TOM GRAZIANO

PRINCIPAL, Scottsdale Private Lending

JESSICAH AMRINE

VICE PRESIDENT, Great Western Bank

PHIL SOLLOMI

PRINCIPAL, Scottsdale Private Lending

PRIVATE LENDING An Ideal Solution for Construction Companies

By Taylor Cole, Small Giants

W

ould you lend to a borrower who had less than favorable credit? How about lending millions of dollars to an individual who got “turned down” from the bank? /// It’s all in a day’s work for “hard money” lenders, otherwise known as private money lenders. In the new regulation-heavy environment, these unconventional lending companies operate where risk-averse traditional lenders fear to tread by making loans to non-conventional borrowers. /// Hard money lenders such as Scottsdale Private Lending, are far less common than mainstream lenders. The money doesn’t come cheap, but they are a creative and successful solution for borrowers to make unfavorable financial situations better. Often, this alternative means the difference in allowing a commercial real estate transaction to go forward or not. /// “THERE ARE A LOT OF CONSTRUCTION OPPORTUNITIES IN TODAY’S MARKETPLACE THAT DON’T FULFILL THE REQUIREMENTS THAT WOULD ALLOW THEM A BANK LOAN, BUT THAT DOESN’T MEAN THE PROJECTS AREN’T WORTH DOING,’ SAYS TOM GRAZIANO, PRINCIPAL OF SCOTTSDALE PRIVATE LENDING. He understands the construction market in terms of cost and schedule, and adds value to Scottsdale Private Lending by ensuring that the developer and contractor’s expectations are aligned. /// Hard money lending is a strong solution for construction lending because the risk associated with this project type is more involved and, unless many factors line up well, viewed by traditional lenders as “high risk.” /// “It’s more a myth that what we do is high-risk rather than well-founded in reality,” Graziano says. He is referencing the inaccurate perception that private, hard money lending in the construction industry is too risky, too expensive and not for the faint of heart. /// 42

ACCORDING TO PHIL SOLLOMI, ALSO A PRINCIPAL AT SCOTTSDALE PRIVATE LENDING WITH OVER 30 YEARS IN THE INDUSTRY, “THERE ARE A LOT OF PRIVATE LENDERS WHO WON’T TOUCH COMMERCIAL PROJECTS AND ESPECIALLY NOT COMMERCIAL CONSTRUCTION.” /// Phil and Tom founded Scottsdale Private Lending because they “are not afraid to work with both asset types” and both have extensive knowledge in construction. Investors have an increased sense of security when lenders have industry knowledge that allows them to act as a second set of eyes to the third-party construction administrator. /// Phil adds that private lenders evaluate borrowers as qualifying with a blend of the three C’s – Credit, Capacity and Collateral.

When underwriting a loan request, they look for decent credit, capacity to pay back the loan each month, and favorable collateral. /// If the client can hold up their end of the deal, the loan goes smoothly and the project gets completed on time and on budget – everyone makes money and didn’t have to wait an inordinate amount of time to “ink” the deal. If things were to go south, the private lender would be able to exit the deal in “an expeditious manner with more than their capital intact, whereas banks may not,” Sollomi says. /// While construction loans are not easy to obtain from banks, some institutions will finance higher risk projects for long-time clients they are comfortable with. Meadows Bank, Las Vegas-based with headquarters in Phoenix, for instance, is currently financing a $4.5 million high-end retail project that is half pre-leased and therefore considered speculative. David Matthews, President of Meadows Bank, feels confident about the loan because the client has vast experience and has done many deals. /// Banks are more disciplined than they were back in 2004 because of the cautionary regulations placed on them post-recession.

UPDATE

“PRE-RECESSION, DEVELOPMENT

Sector

COMPANIES NEVER DID HARD MONEY LOANS BECAUSE THERE WAS PLENTY OF BANK FINANCING AVAILABLE,” SAYS JIM RIGGS, PRESIDENT AT PLATINUM ADVISORS, A SCOTTSDALE-BASED COMMERCIAL REAL ESTATE DEVELOPMENT COMPANY. “TRADITIONAL BANKING DOES NOT MOVE AT THE SPEED OF BUSINESS ANYMORE, WHICH HAS CREATED A HUGE OPPORTUNITY FOR PRIVATE LENDING. IT’S MORE EXPENSIVE, BUT IT’S VERY TRANSACTIONAL AND EFFICIENT.”

BAHIA 101, a private-loan financed property in Scottsdale

/// Riggs sees private lending as the new norm for construction companies and has recently worked with Scottsdale Private Lending to arrange a hard money loan for Bahia 101, a project in Scottsdale. /// According to Jessicah Amrine, Vice President of Great Western Bank, the high volatility commercial real estate (HVCRE) guideline is the biggest and the most hotbutton construction loan regulation that came out of the most recent downturn. It requires that all construction loans have 15 percent cash equity in the deal. /// She understands the niche that private lending fills in the marketplace when she cannot accommodate a construction client’s loan needs. /// “PRIVATE LENDERS SERVE A VERY SYMBIOTIC RELATIONSHIP WITH BANK FINANCING IN THE MARKET PLACE,” AMRINE

YOUR FIRST CHOICE IN HARD MONEY LENDING

SAYS. “BANKS CAN’T COMPETE WITH QUICK ACCESS AND FLEXIBILITY.” /// Conversely, Sollomi notes that private lenders are not a threat to banks and added that if a client comes to Scottsdale Private Lending and he finds that they could qualify for more of a banking solution (owner-occupied real estate, for example), he will refer them to an institutional bank. /// Private lenders are playing an imperative role in the recent and ongoing increase in Valley development. By progressively lending to non-traditional borrowers, private lending companies have positioned themselves as groups that developers seek to form trusting, friendly relationships with because they are often the people that can help get the job done swiftly and according to schedule.

COMMERCIAL LOANS (12-24 months) CONSTRUCTION LOANS (12-24 months) LAND AND LOT LOANS (12-36 months) FIX AND FLIP (6-12 months) Connect With Us! (480) 999-4800 Phil Sollomi Principal

Tom Graziano Principal

NMLS: 1240815 MLO: 0928670

NMLS: 1109497 MLO:0925385

Scottsdale Private Lending is an Arizona Licensed Mortgage Broker, MB:0928434, NMLS: 1240417

REPORT

The

T U CT RSE O N NDS By: KEITH LAMMERSEN, Senior Vice President, JLL

Tucson’s market fundamentals aren’t making any major leaps (they’re pretty stagnant), but they are slowly and steadily improving.

It is expected that they will continue to improve in the coming years.

Overall office vacancy rate is steadily ticking down, now at 11.9%, down slightly from 12% Q1 and 12.3% Q4 2015.

Positive net absorption of over 200,000 SF for the year, illustrating steady growth.

Little to no office construction currently underway, which should help vacancy rates tick downward and asking rates hold steady.

Continues to get a lot of attention nationally from back office/call center users because of the lack of natural disasters, good labor force, inexpensive real estate costs, Mountain time zone, strong bilingual labor force, and a pro-business climate.

Redevelopment and growth is happening in the downtown Tucson business district, which is attracting more of the millennial workforce and technology-based companies from what used to be more government, law firm and financial services-based firms.

New restaurants and hot spots seem to be opening up monthly in this district, and that will continue to attract new companies that want the live, work, play environment.

Health care sector remains strong and continues to lead the way for new development and growth.

Tucson Medical Center’s new medical building along with Banner-University Medical Center’s plans to build on the U of A campus further display this growth.

Sunquest Information Systems just leased an 83,000-SF facility.

44

WHAT DOES

$110 MILLION

IN CHARITABLE GIVING FEEL LIKE?

ONE VICTORY AT A TIME. TIME AFTER TIME. SUPPORTING THE VALLEY OF THE SUN THROUGH SPORTS is just one of the many missions of The Thunderbirds, hosts of the Waste Management Phoenix Open presented by the Ak-Chin Indian Community.

Like Special Olympics Arizona. The First Tee of Phoenix. Miracle League of Arizona. And countless others. While the historic milestone of $110 million in charitable giving over 81 years is now a reality, the true impact is expressed one story at a time. The Thunderbirds would like to thank all of our fans and sponsors for your continued support of the Waste Management Phoenix Open.

Roxanne, Special Olympics Arizona Athlete Dan Mahoney, Thunderbird

For more Arizona success stories, visit www.thunderbirdscharities.org

REPORT

The

BANNER-UNIVERSITY MEDICAL CENTER TUCSON Developer: BANNER HEALTH Contractor: Joint Venture between SUNDT CONSTRUCTION & DPR Size: 670,000 SF Location: 1501 N. Campbell Ave. Price: $400 million Projected Completion: 2019

COMCAST SUPPORT CENTER Type: Adaptive reuse (retail

office)

Size: 165,000 SF Location: 4690 N. Oracle Road Price: $16.4 million Originally built as the Tucson Galleria mall (mid 1980s).

Effort led by the Phoenix office of JLL that transformed a long-vacant retail mall into a cutting-edge Western region customer support center for Comcast Cable.

1,200 employees work at the site, providing IT, call center & social media services.

Now a creative corporate environment solely occupied by Comcast.

UNIVERSITY OF ARIZONA ENGINEERING INNOVATION BUILDING Developer: University of Arizona Contractor: Sundt Construction Size: 107,000 SF Location: 1209 E. 2nd St. 46

Price: $50 million

naiopaz.org

NAIOP’S NETWORK PROVIDES A DIRECT CONNECTION TO ARIZONA’S COMMERCIAL REAL ESTATE LEADERS AND DECISION MAKERS. – TOM JARVIS, WILLMENG CONSTRUCTION 2016 NAIOP BOARD MEMBER

M E T R O S O U T H CO R P O R AT E PA R K 210,000 S.F. Call Center

BILTMORE LAKES CORPORATE CENTER

Bldg #2920

Bldg #2930

Bldg #2910

10 : 1,000 PARKING

Ca

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FULLY IMPROVED Immediate Occupancy l

1,000 S.F. Data Center

4417 & 4427 W Buckeye Rd

Biltmore Lakes Corporate Center is a 80,000 square-foot Multi-Tenant Office Complex for Easy Freeway Accessibility lease on the Beautiful Camelback Corridor.

Fiber Connectivity

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Suites available from 500 s.f to 9,000 s.f.

Aggressive rates with incentives.

Publicrental Transportation

For inFormation aBout this property contact:

raymond t. cashen Phone: (602) 393-4447 Email: cashen@att.net

Aggressive RentalLakes Rates Surrounded

by Biltmore Golf Course, Lake and Mountain views.

Government Grade Security

2920 E. CAMELBACK ROAD, SUITE 212

2920 E. CamElbaCk Road, SuitE 212

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PHOENIX, ARIZONA 85016

PhoEnix, aRizona 85016

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FAX: (602) 393-4452

Fax: (602) 393-4452

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WEB: CASHENREALT Y.COM

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YOUR ACCESS MATTERS. That’s why our bankers deliver streamlined approvals, plus a direct line to the top.

We are relationship-focused and highly responsive, bringing you deep local roots, expert bankers, access to decision-makers, flexible solutions and a real commitment to superior service. All part of $15 billion Western Alliance Bancorporation, ranked #10 in the Forbes 2016 “Best Banks in America” list.

Your business matters.

Alliance Bank of Arizona, a division of Western Alliance Bank. Member FDIC.

602.389.3500 alliancebankofarizona.com