Issue 2, 2020

CCIM & SIOR

The Member Experience Living Through the Legacy Tribute to Craig Henig’s Father Butler Design Group Meet the Firm’s Future Leaders CEM-AZ.COM • ISSUE 2, 2020

something’s different.

No imitations. We present only genuine elevations of truth, trust, and wholehearted loyalty to the employees we mentor, the clients we serve and the communities we call home.

Experience the Difference.

WILLMENG.COM | ROC #082904, Class B-01

We don’t stop when we get your business.

We keep earning it every day.

Proving ourselves, time and again is part of our daily routine and how we deliver on accountability at Alliance Bank of Arizona.

Bank on Accountability

© MPmedia, LLC 2020

Meet Your Local Banking Expert: Ericka LeMaster Senior Managing Director, Commercial Real Estate elemaster@alliancebankofarizona.com (602) 952-5452

alliancebankofarizona.com

Top 10 - Forbes Best Banks Alliance Bank of Arizona, a division of Western Alliance Bank, Member FDIC. Western Alliance ranks top ten on Forbes’ Best Banks in America list, five years in a row, 2016-2020.

1

IN THIS ISSUE

7

Aviation Real Estate Leading Edge Real Estate breaks down the economic benefits of aviation

14

Living Through the Legacy A tribute to Craig Henig’s father and a look at what the future holds

37

Lucid Arrives in Arizona The luxury electric car company brings its manufacturing operation to Arizona

Broker Team of the Month | 22 Layton Construction | 26 Rock Star | 34 2

COVID-19 Update CEM chats with industry experts about its impact on commercial real estate

10

Cover Story CCIM and SIOR leadership talk organization benefits, opportunities and the future

30

Butler Design Group Meet the future leaders of the outstanding local architecture firm

50

44 | Emerging Professional 47 | EPNE 48 | ULI Update Š MPmedia, LLC 2020

Letter From The Publisher

“ Persistence and resilience only come

from having been given the chance to work through difficult problems.”

- Gever Tulley

A

s I sit down to write this in the comfort of my home, it’s difficult not to reflect on what a profound change we have endured the past few weeks. Many words come to mind when thinking of COVID-19’s impact on our industry. I think most can agree with me that our future brings the most uncertainty. I’ve been telling my team, the only way we will get through this is if we get creative. This goes for our industry as a whole.

Similar to the volatile times we experienced just over a decade ago during the recession, the ones who survived persisted, got creative and never gave up. Together, we must take notes from our history books and get through this unprecedented time.

Looking toward the future, our cover story’s institutions, CCIM and SIOR, hold many leadership opportunities for the future of our industry. Get to know the four exceptional executives leading these local chapters and the benefits that a CCIM and SIOR designation holds on page 14.

Collaboration is at the heart of our industry. I can’t think of a more fitting example of this than the feature on page 50 highlighting Lucid Motors coming to Arizona. Read the incredible behind-the-scenes efforts Gov. Ducey, Sandra Watson, Gov. Pavlovich of Sonora, Mexico, Jackob Andersen, Jim Harrison, Marc Hertzberg and Bill Honsaker put forth to ensure Lucid settled in the perfect facility for its luxury electric car manufacturing needs.

Reputation is everything, and Butler Design Group has always been known for its commitment, integrity and outstanding work. Rick Butler and Jeff Cutberth have established and grown that reputation for decades in the Valley. In this issue, we feature BDG’s future leadership, and what is next for the architecture firm on page 37.

Craig Henig and his father Ralph have been dear friends of mine for many years. When Ralph passed in December of last year, Craig wanted to honor his father’s work and legacy, while also providing an update on what he’s been up to. Don’t miss this exclusive feature on page 30.

Lastly, I’d like to thank my team for putting together this issue during this challenging time! Most of the photo shoots in this issue were completed prior to the stay-at-home and social distancing order.

Enjoy the issue,

Mandy Purcell Founder & Publisher © MPmedia, LLC 2020

3

CEM Team

Karen Gallagher

Celina Busse

karen@mpmediaaz.com

celina@mpmediaaz.com

Karen coordinates the many moving parts of Commercial Executive Magazine. Specializing in strategic planning, she ensures CEM’s readers and advertisers are happy. Contact Karen for information on advertising, event sponsorships and general magazine inquiries.

Celina keeps our readers up to date on the latest and greatest commercial real estate news in the Valley. She organizes and coordinates each editorial piece to perfection. Contact Celina for questions regarding editorial, copyright or purchasing commemorative plaques and PDFs.

Managing Director

Editor-in-Chief

FOUNDER & PUBLISHER Mandy Purcell, mandy@mpmediaaz.com MANAGING DIRECTOR Karen Gallagher, karen@mpmediaaz.com EDITOR-IN-CHIEF Celina Busse, celina@mpmediaaz.com CREATIVE DIRECTOR Janko Katic, janko@mpmediaaz.com SALES Karen Gallagher EDITORIAL Celina Busse, Tim Randall GRAPHIC DESIGN & PHOTOGRAPHY Janko Katic 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

4

© MPmedia, LLC 2020

Meet Janko Creative Director

janko@mpmediaaz.com Janko Katic joined Commercial Executive Magazine in December of last year. Since then, he has brought a unique and elegant aesthetic to the publication. His extensive background in art and fashion has given CEM a refreshing take on editorial photography and layout design.

Originally from Serbia, Janko studied photography and sculpture at the Academy of Art in Serbia. He started his career in the fashion industry as a photographer and designer in Berlin, Germany. Several years later, he had a project with artist Vanessa Beecroft, which led to a great collaboration. He moved to Los Angeles and started working as Vanessa’s assistant, eventually becoming a studio manager. He worked on numerous high-profile art projects and fashion campaigns, with notable clients such as Valentino, Adidas and Vogue Magazine. As of 2016 Janko lives in Phoenix with his partner Derek and enjoys spending time with his best friend Rocco, a goldendoodle.

They love hiking, cooking, entertaining at their house and exploring the city of Phoenix.

Š MPmedia, LLC 2020

5

“

“Where there is unity there is always victory.”

-Publilius Syrus

Adapt, stay engaged and emerge with strength. Thank you to our entire community of commercial real estate readers, advertisers and friends.

Karen Gallagher // 602-292-3379 Celina Busse // 760-519-5414 Mandy Purcell

6

© MPmedia, LLC 2020

CO VID 19

This is How We Fight Back

Over the last few weeks, all of us have in some way been impacted by COVID-19. Many are looking to understand how this will affect the market and real estate community. CEM hears from six executives in the industry on what they are doing to fight back against this pandemic.

Š MPmedia, LLC 2020

7

John Kinser

Senior Vice President | Director of Commercial Real Estate Enterprise Bank & Trust During this challenging time, the bank’s first priority has been to keep our associates and our clients safe. Most of us have been able to telecommute, and we have put safety procedures in place at our branches to effectively distance all parties as they complete necessary in-person transactions.

Some of our commercial real estate clients have been facing special challenges related to COVID-19. Especially hard hit are our hospitality and retail clients. Enterprise has taken proactive steps to help our clients through these challenges, while continuing to review and approve loans for new investment and development opportunities. On top of all this, EB&T is one of the many banks tasked to approve and distribute SBA 7a Cares / PPP stimulus funds.

It has been a wild few weeks, but it has left me encouraged as I watch our teams rise to the challenge with extraordinary resourcefulness, dedication and care.

Larry Pobuda

Executive Vice President | General Manager, The Opus Group

As a developer, we have projects in different stages, ranging from under contract with a seller to fully stabilized and ready for sale. Each project requires a different approach.

The first step for us is to ensure that we have enough time in which to analyze and act.

COVID-19 hit the markets and economy very quickly, and it is our responsibility to fully communicate the current project status along with our recommendations to our partners – joint venture equity, lenders and city officials. We also must make sure we communicate fully with sellers if we are in the early stage of development. I’m most proud of our company’s first reaction: reaching out through the Opus Foundation to the non-profits in the communities in which we develop to contribute to those most in need during this health crisis. Our foundation awarded over $100,000 to various nonprofits to ensure that emergency community needs were being met.

Will Strong

Executive Managing Director | Industrial Capital Markets Cushman & Wakefield Although there is much uncertainty as the market conditions evolve, our team is gathering real-time transactional data and reaching out to clients to share that insight.

It seems like when we are post COVID-19, and the logistics story gets better (last mile even more critical), there will be on-shoring of many industries and sectors (pharma and automotive), and on-shoring of investments.

We are in a risk-off environment where investors stay even more in their lane and lots of questions have been geared toward the debt markets. And we are also trying to create more constructive engagement with buyers on our deals.

Our team’s primary business focus has first and foremost been to take care of our existing assignments and customers and have as many conversations and share as much real-time recon as possible. The market continues to be volatile, and it is too early to draw many definitive conclusions.

8

© MPmedia, LLC 2020

Tiffany Sharp Principal, Sharp Construction

Prepare, don’t panic. This has been our motto since the pandemic began. Sharp Construction started seeing the effects of the pandemic nearly immediately as projects that were in design slowly became stalled and new opportunities lagged. We have been actively engaging with our teams, business partners, financial partners and customers to minimize impacts in our business and theirs.

COVID-19 has presented its set of challenges for us in the field as well. In the absence of government protocols for the safety of essential businesses, we’ve started to implement our own. Our teams are maintaining a distance of six feet in the field, wearing proper personal protective equipment with the addition of bandanas for masks, and actively cleaning surfaces and workspaces. Our intent is to be mindful and focus on prevention.

We’ve implemented a successful work-from-home platform for our office team so that we can continue to drive strategic and tactical obligations. We’re using this down time to focus on continuous improvement so that we can come back stronger than ever when all is said and done.

Adam Finkel CCIM | Principal, Tower Capital

The coronavirus pandemic’s impact on our economy changes day to day, so my advice to clients is to pause and evaluate how upcoming federal regulations will affect commercial real estate. We are seeing many lenders becoming more conservative in the current environment – offering lower leverage, requiring debt service (and in some cases taxes and insurance) reserves, and pricing loans higher due to the increased risk. Staying informed and connected to my colleagues and capital partners has been absolutely essential. My inbox is full of white papers and insights from industry friends and many great minds in the real estate, finance and economics sectors. I especially enjoy thought leaders like John Mauldin, Ray Dalio and Howard Marks.

Our firm is actively practicing social distancing by switching to a work-from-home model. To maintain face-to-face interaction and unity as a team, our firm now has two companywide video meetings per week. Likewise, I’ve opted for FaceTime calls over typical phone conversations.

Mark Bauer

Managing Director | Data Center Solutions (DCS) group, JLL

The COVID-19 pandemic has affected all sectors of our business, and the importance of sustaining operations of our mission-critical facilities and supporting our clients is vitally important now. While emergency preparedness is the backbone of data center operations, this pandemic has brought to the forefront unprecedented challenges for us all. Our national JLL group has created a COVID-19 Considerations document to give clients general information about actions that have been undertaken to aid in their planning to best address the mission-critical operations they operate for our clients.

Some of the considerations include: limiting data center access to essential staff only, considering a “two-weeks-on, two-weeks-off” work schedule, postponing any nonessential maintenance and construction, and training and re-training data center staff on all specific procedures that are in place due to COVID-19 support. Our industry hasn’t slowed down, so having an action plan is imperative for our clients.

© MPmedia, LLC 2020

9

Leading Edge is Taking Off at Full Speed According to the Federal Aviation Administration (FAA), over 16 million flights traverse the nation per year. “Every day, the FAA’s Air Traffic Organization provides service to more than 44,000 flights and 2.7 million airline passengers across more than 29 million square miles of airspace,” the agency says.

As for Greater Phoenix, Sky Harbor notes over 46 million passengers in 2019 with nearly 440,000 arrival and departure flights. No one knows the critical importance of flight transportation to the Valley better than the leadership of Leading Edge Real Estate cofounders Larry and Aron Brow. “Aviation is unparalleled in its economic impact compared to other real estate asset types,” says Larry. “Airports are economic engines,” says Aron.

10

© MPmedia, LLC 2020

Larry Brow, Stephanie Lanman, Aron Brow © MPmedia, LLC 2020

11

Larry Brow, Stephanie Lanman, Aron Brow

Flight Pre-Check

Started in 2015, Leading Edge is the Valley’s premier aviation commercial real estate firm, because of the insight, expertise and experience of the Brows and their talented team. “Larry is jokingly referred to by many as the ‘hangar czar’ with over 40 years of aviation and real estate experience,” says Aron.

“We have been an aviation family for decades and between us have logged over 20,000 flight hours with 60 combined years of flight experience,” says Larry.

Background

With deep roots in New Mexico, this father/son duo set their sights on Greater Phoenix as a booming hub for growing their aviation business. “We managed a Fixed-Base Operation (FBO) in Northeastern New Mexico, providing flight and ground instruction, fuel sales, aircraft sales, and maintenance and charter operations for a fleet of Beechcraft Bonanzas, King Air B200s and Bell Jet Ranger helicopters,” says Larry.

Aviation Real Estate

Beyond Sky Harbor, the Valley has local and regional assets including Phoenix Deer Valley, Scottsdale and Phoenix-Mesa Gateway airports.

“We saw a void in commercial real estate companies with aviation-specific expertise,” says Aron “We have a substantial aviation client base and knew we could do things better while protecting our clients and offering them a service they could not receive anywhere else in Arizona.”

12

Expertise

Leading Edge prides itself on offering a robust portfolio of aviation commercial real estate services, including sales, leasing, development, FBO sales, consulting and fuel operations. “There are a few other agents in the Valley that dabble in aviation, though not many are truly experts,” says Larry. “Aviation is one of those areas you cannot really ‘wing it’ without causing damage or it going unnoticed.”

Cruising Altitude

Two recent projects highlight the expertise and prowess of Leading Edge: 14818 N 74th Street in the Scottsdale Airpark and the Mesa Hangars construction at Falcon Field Airport.

The Scottsdale Airpark is a thriving submarket with the epicenter of traffic, the nation’s most active general single runway airport with 186,000 landings and takeoffs, according to the City of Scottsdale.

The net economic benefits of the airport accounted for $688 million in 2019 with spillover effects to the Airpark of $10 billion.

With 478 airplanes based at the airport and increases expected, hangar space is a valuable commodity. “We brokered the record-breaking $4,450,000 ($360 per square foot) sale of the first speculative-built hangar to be developed and sold to an owner/user in the Scottsdale Airpark in over a decade,” says Aron. “The facility was developed and built by a private

© MPmedia, LLC 2020

“We saw a void in commercial real estate companies with aviation-specific expertise. We have a substantial aviation client base and knew we could do things better while protecting our clients and offering them a service they could not receive anywhere else in Arizona.”

- Aron Brow, Co-Founder, Leading Edge Real Estate

aviator and entrepreneur, which explains why the state-of-the art hangar is equipped with all the desired amenities an aviation user can imagine.”

and ranch industries are high net worth, so accommodating their needs from an investment property standpoint made perfect sense.”

Takeoff

An aviation powerhouse in its own right, the two runways of Falcon Field log 260,000 arrivals and departures annually, with a top 10 ranking as one of the busiest general airports in the country. “The Mesa Hangars project is an exciting 393,000-square-foot, forty hangar unit Opportunity Zone development,” says Stephanie Lanman, senior associate, Leading Edge. “Larry was instrumental in bringing the development to life, as he presented the opportunity to an investor who instantly bit on the idea. The city is extremely excited about the project, as it has been wanting a private party to step up to the plate and build more hangars at Falcon Field.”

With the Valley’s ongoing demographic and economic expansion, aviation will play a substantive role in the region’s future. “Government funding to local airports and infrastructure, along with community involvement, will allow for the healthy growth of airports and their surrounding communities to continue,” says Aron. “Anytime you read about the government approving a new grant for improvements at an airport, you can be sure that the airport and community will reap the benefits threefold and the investment will payoff for decades to come,” says Lanman.

Leading Edge

Future

While aviation real estate is the core business for the firm, Larry, Aron and team have also successfully diversified into other commercial and investment real estate segments. Most interesting in this mix is their ranch and land operation.

“Leading Edge specializes in ranch properties, land with wells and mineral rights, and investments acquisitions,” says Larry.

“Our New Mexico FBO was surrounded by large ranches, and most all of our friends were in the ranch industry so it was a natural fit,” says Aron “A lot of our network from the aviation

© MPmedia, LLC 2020

The sky is the limit for Leading Edge, and the principals understand the growth potential. “Aviation development prompts the need for other supporting commercial enterprises, such as offices, warehouses, shopping centers, restaurants and hotels,” says Larry. “Airport rules, regulations and the overall market environment is ever changing, but being involved daily with aviation real estate keeps our company and team at the forefront of regulatory changes and emerging trends,” says Aron.

13

Designations of Achievement The Member Experience: CCIM & SIOR

L to R: Todd Hamilton, John Soldo, Marina Hammersmith, Mike Garlick

14

Š MPmedia, LLC 2020

International commercial real estate institutions Society of Industrial and Office Realtors (SIOR) and CCIM Institute provide an authoritative voice and leadership platform in the CRE field. SIOR has 3,400 members in 686 cities and 38 countries, and CCIM Institute has given out the distinguished Certified Commercial Investment Member (CCIM) designation to 20,000 industry experts in 50 centers around the world since 1967. “The benefit to those in CRE who want to obtain the SIOR designation is being a part of the leading global CRE network in the world,” says John Soldo, Arizona chapter president, SIOR, and vice president, Commercial Properties, Inc. “The CCIM curriculum is an in-depth and comprehensive journey through the investment cycle of commercial real estate,” says Marina Hammersmith, president, Central AZ CCIM Chapter, and senior vice president, ORION Investment Real Estate.

Marina Hammersmith, President, Central AZ CCIM Chapter and John Soldo, President, Arizona SIOR © MPmedia, LLC 2020

15

CCIM Leadership: Marina Hammersmith, Todd Hamilton

SIOR Founded in 1941, SIOR credentialed professionals “are the most knowledgeable, experienced and successful CRE brokerage specialists,” says Soldo. The Arizona Chapter emerged in 1970 and currently boasts 61 renowned office and industrial experts. “The most rewarding part of being a member of SIOR is the organization’s integral involvement and high esteem in the CRE industry in Arizona,” says Mike Garlick, vice president, SIOR, and executive managing director at Newmark Knight Frank. “SIOR designees must qualify and be selected for membership, and that is a big differentiator.”

Background Both men joined SIOR roughly a decade ago, while in the midst of the inchoate recovery from the Great Recession. “I became involved in the Arizona Chapter the very moment that I received my designation,” says Soldo. “The same day that I received my SIOR designation, I also was accepted to serve on the SIOR Arizona Board of Directors.”

16

For Garlick, his tenure at SIOR has involved a sixyear stint serving on the Arizona Board. “Now as vice president, the most important part of my role is working to support John (Soldo) in ensuring that we are excelling as a leading organization in the CRE industry,” he says.

Requirements Earning the SIOR certification requires a broker’s deep commitment to their craft. Professionals must demonstrate robust field activity as measured by both transaction volume and Gross Fee Income over the last 48 months, excel in a rigorous educational program, produce two endorsements from SIOR credentialed peers, and demonstrate an unwavering dedication to ethical conduct, as codified in SIOR’s Code of Ethical Principles. “The SIOR designation is a respected professional title and, in addition to signifying a high level of achievement, it broadens its members’ nationwide network of industry professionals outside of one’s own firm,” says Garlick. “The designation represents another layer of education, certification and self-improvement for a brokerage professional.”

© MPmedia, LLC 2020

Goals The endeavors of each of the 48 SIOR chapters ladder up to fulfil the mission and vision of the organization: “To inspire the industrial and office real estate industry by connecting people, knowledge, markets and opportunities, globally. Recognized as the standard of excellence in industrial and office real estate.”

“The goals of the SIOR Arizona Chapter is to attract new members and sponsors and to serve the local industry and community,” says Soldo. “I do believe that the Arizona Chapter is one of the best chapters in the SIOR network.”

To this end, members participate in a range of offerings including board and committee service, education seminars and networking events and conferences. “Because it is up to individual SIOR chapters to raise money and support its chosen causes, chapters are somewhat autonomous,” says Garlick.

“It is rewarding to guide the chapter’s charitable and industry activities alongside John, making sure funds are well-spent on behalf of our sponsors, our membership is educated, and every event is valuable, meaningful and worth attending.”

© MPmedia, LLC 2020

The event planning and logistics have become increasingly complicated with the onslaught from the recent health pandemic. “The one major challenge that I am currently facing is the coronavirus and the effect it is having on our industry,” Soldo says. “So far, we have had to cancel our annual service day at Feed My Starving Children and our Spring TransACT 360 conference in Indian Wells, California.”

Benefits Soldo and Garlick champion the advantages of SIOR membership at every opportunity. “Having the SIOR designation has greatly helped me in obtaining business – both locally and nationally,” says Soldo.

“As the saying goes, you get out what you put in.

The more you actually engage via board positions or attendance at chapter events and national conferences, the greater the opportunities will be to connect with the group of esteemed SIOR members,” says Garlick.

“In CRE, participating and networking through industry organizations and reaching out beyond your usual network will pay dividends in the long run.”

SIOR Leadership: John Soldo, Mike Garlick

17

CCIM Rivaling in stature and prominence, CCIM’s respective mission and vision statements demonstrate the organizational commitment to excellence. CCIM Institute says its goal is “to elevate our members to the highest levels of success in the commercial real estate profession. To shape the commercial real estate industry by being the most influential, innovative and internationally recognized organization.”

Working to reach this pinnacle for over half a century, CCIM in many respects is an aspirational brand. Fewer than 10% of CRE practitioners hold the designation.

“CCIM is really about the education and being able to understand transactions from different perspectives so you can educate and advise your client,” says Hammersmith. “The CCIM education has definitely helped get deals to the closing table.”

Background

Hammersmith rose to president of the Chapter in 2020 after first serving on the board in 2018. “My former partner, Tracy Altemus, was president in 2018 and she asked if I would join the 11-member team,” she says.

“I am so grateful she made the ask; it has truly been an honor to serve our Chapter.”

Since earning his CCIM credential in 2001, serving on the board and now in his role as vice president, Todd Hamilton, CCIM and SIOR, managing partner, Citywide Commercial, enthusiastically advocates for the advantages of CCIM. “The education offers a deep dive into the inner workings of a CRE transaction.

Those individuals that possess this knowledge offer a competitive advantage to their clients,” he says. “Our chapter comprises of some of the best CRE professionals in Arizona.”

Curriculum To wear a CCIM pin is no easy accomplishment.

Those hoping to achieve CCIM status must navigate a demanding core and elective educational program, complete ethics training, pass a complex final exam and demonstrate success in the CRE space by fulfilling transaction and monetary guidelines. “The core classes cover site selection, market analytics, negotiations and investment analytics,” she says. “The education is taught by active CRE experts with an emphasis on practical application. The information learned in the classroom is immediately applicable.”

18

Offerings Hammersmith and team strive to bring members a broad spectrum of knowledge, tools and engagement opportunities. “In our planning for 2020, we started with the question, ‘What is our value proposition?’,” she says. “Our primary goals are to provide relevant education opportunities for our community and connections within our organization. We also wanted to create opportunities to give back to the community.”

One of the chapter’s most widely attended and informative events is the annual IREM CCIM Economic Forecast in January. “The signature event has become widely known as the place to get the real scoop from industry leaders throughout the Valley,” she says. “Attendance at our Forecast keeps growing from year to year, and while it takes a tremendous amount of effort to plan, it is rewarding to know that our platform has provided invaluable insight to our markets.”

Of course, the coronavirus looms large over the chapter’s ability to constructively deliver offerings.

“We have been forced to cancel in-person events.

However, we have members and sponsors who have invested in our organization, and we have an obligation to create opportunities for connection,” she says. “That has been extremely difficult in this environment, but we have remained nimble and creative, so we are relying on e-connection for the time being. That means increasing electronic exposure in our community and working to be ‘the source’ of answers to urgent real estate issues that are at the forefront.”

Future

SIOR and CCIM, two of the world’s most prominent CRE institutions, have worked to elevate the industry in their own specialized approaches. While there is always healthy competition, which drives each organization to continuously improve, Soldo and Hammersmith share a deep respect for their peer’s organization. That’s a point noted by Hamilton’s distinction in earning both credentials. “CCIM and SIOR are both working to make our industry better each day,” says Soldo. “There is no question that the two entities desire a thriving CRE vertical and accomplished professionals,” Hamilton says.

© MPmedia, LLC 2020

“The SIOR designation is a respected professional title and, in addition to signifying a high level of achievement, it broadens its members’ nationwide network of industry professionals outside of one’s own firm, the designation represents another layer of education, certification and selfimprovement for a brokerage professional.”

- Mike Garlick, Vice President, SIOR

© MPmedia, LLC 2020

19

BUILT TO STRENGTHEN THE

ECONOMY

T2, Tempe

DEVELOPMENT EDUCATION & EMPOWERMENT BUILDS THE 20 BEST TEAM IN THE BUSINESS.

suntecco ncrete.co m AZ | CO | UT | I D | NV © MPmedia, LLC 2020 ROC #138389

Congratulations 2019 top Producers!

JOIN THE WORLD’S FASTEST-GROWING COMMERCIAL REAL ESTATE FIRM. Last year, Avison Young welcomed three new principals and six new members to our brokerage team in Phoenix alone.

Join a principal-led company that lets you put your clients first.

Hiring in all sectors.

© MPmedia, LLC 2020 avisonyoung.com

21 Photographed from left: David Jarand, David Genovese, Matt Milinovich, Wally Hale, Mark Seale, and James DeCremer

Presented by Willmeng Construction

Broker Team of the Month Steve Julius, Jesse Goldsmith and Chase Dorsett

The phrase “hit the ground running” certainly applies to the Newmark Knight Frank (NKF) Capital Markets team of Senior Managing Directors Steve Julius and Jesse Goldsmith and Associate Chase Dorsett. “We joined NKF in January of this year,” says Julius. “We were drawn to the company’s entrepreneurial culture and the opportunity to grow the Phoenix office’s retail capital markets presence,” says Goldsmith. “As anticipated, we are very excited to be at the firm,” added Dorsett.

22

© MPmedia, LLC 2020

© MPmedia, LLC 2020

23

“Newmark’s connected platform boasts the highest-quality brokerage professionals in Phoenix and across the country, and we really see an environment to flourish and collaborate.”

- Steve Julius, Senior Managing Director

Background Arriving in Phoenix five years apart − Julius in 2001 from Milwaukee and Goldsmith in 2005 from Salt Lake City − the duo joined forces in 2006. “I always had an interest in commercial real estate,” says Julius. “I had been intrigued

by CRE since my junior year in college. I had a finance professor who worked in CRE with a focus on investments who really piqued my interest,” Goldsmith says. As for Dorsett, a Greater Phoenix native, he started in the industry in 2016, first as a research analyst and then joining Julius and Goldsmith in 2018 as a broker. “I became fascinated with real estate during my childhood, spending time driving different neighborhoods in the Valley and touring homes with my father, who was a Realtor.”

Capital Markets According to the U.S. Department of Commerce, 11% of all retail sales in 2019 occurred through e-commerce. Flip that dynamic and 89% of all retail activity occurs in physical outlets, a fact not lost on the NKF team. “Daily needs uses that operate out of brick-and-mortar locations – like fitness centers, restaurants and health and beauty – have continued to expand as landlords, property owners and developers recognize the need for a diverse tenant base in neighborhood retail properties,” says Julius. “Everyday uses – groceries, fitness and services – occupy roughly 90% of neighborhood retail spaces in Phoenix,” says Goldsmith.

Investors The Phoenix metro continues to outpace competing metros with its business-friendly climate, migration inflows, economic dynamism and workforce talent. Institutional and private client investors see the Valley as an opportune locale to deploy capital and generate strong cash flows and asset appreciation. “In our experience, there are two different buyer pools − stable buyers seeking stable product and buyers seeking value-add properties,” says Goldsmith. “Investors are entering all parts of the Phoenix metropolitan statistical area (MSA), and yield-driven opportunities generally receive multiple offers,” says Julius.

24

Steve Julius Another interesting situation is the source of buyers interested in the region. “Out-of-state buyers (65% in 2019) are targeting Phoenix. We have received many inbound calls from established investors looking to add their first Phoenix retail property to their portfolios,” says Dorsett. “Compared to other commercial real estate sectors, retail has, historically, had a smaller buyer pool. With the continuing trend of inbound, out-of-state investors, we are seeing that pool grow,” says Goldsmith.

Trends The long-run outlook for the Valley holds tremendous upside potential, even as the short-term prospects are uncertain with the health pandemic disrupting economic activity. “In future years, the redevelopment of existing retail centers could outpace ground-up developments,” says Julius. “With high construction costs, purchasing and redeveloping existing centers is more feasible for investors than building new,” says Goldsmith. “If investors take opportunities to transform Class C+ centers to Class B, or Class B centers to Class A, the updates will benefit overall absorption and vacancy in the market.” © MPmedia, LLC 2020

Jesse Goldsmith

Chase Dorsett

Chemistry

Newmark Knight Frank

A team’s success depends on its members’ ability to effectively collaborate, communicate and leverage their distinctive capabilities. In their 15 years together, these professionals have created a winning formula of production excellence. “What makes our team dynamic is our unique and complementary strengths and approaches to client service. Steve’s analytical approach is driven by statistics and finance,” says Goldsmith.

“Jesse is passionate and enthusiastic, connecting with clients through his vision, and Chase’s research background gives him a deep understanding of the market,” says Julius.

As for Dorsett, he sees Julius and Goldsmith as insightful mentors in his career development. “Partnering with Steve and Jesse for the past two years has provided me with the opportunity to truly learn from the best,” he says. “Witnessing Steve and Jesse’s different approaches to the commercial real estate business has empowered me to develop my own style when it comes to exceptional collaboration and client service.”

Julius, Goldsmith and Dorsett made the move to NKF, an industry leader with 18,000 CRE professionals in nearly 480 global offices, with high expectations. “Newmark’s connected platform boasts the highest-quality brokerage professionals in Phoenix and across the country, and we really see an environment to flourish and collaborate,” says Julius. “Executive Managing Director Mike Garlick is an outstanding leader, and we wanted to work alongside him and other professionals of his caliber,” says Goldsmith.

© MPmedia, LLC 2020

Future Making a move can be a challenging prospect; however, these three talented brokers are up to the task. “We pride ourselves on the relationships we have built with our clients, colleagues and teammates,” says Julius. “The personal client connections that have grown throughout our careers are truly the most important part of our work,” says Goldsmith.

25

LAYTON CONSTRUCTION BUILDING UP SPEED Superior work does not go unnoticed, especially if it has been done time after time, and year after year. Such is the case with national powerhouse Layton Construction, which has the stellar accolades to highlight its enduring success. “We have been very fortunate,” says Andrew Geier, executive vice president, Arizona. “Our backlog is the strongest in the company’s 67-year history.”

26

© MPmedia, LLC 2020

Twenty-third largest contractor in the U.S. and Top Contractor number 44 of 400 in 2019, according to Engineering NewsRecord; 4th largest Healthcare Contractor in the nation as ranked by Modern Healthcare; and multiple Building Design + Construction Top Contractor designations. “One of our greatest accomplishments at Layton is the culture we have built,” says Geier. “Culture and a winning atmosphere continue to propel Layton forward, as an industry leader in the Valley and across the country.”

Founded in 1953 by Alan W. Layton, the company’s deep roots in Utah provided a dependable base of business as the family based operation grew larger over the decades. In 1987, the firm pushed into Arizona with its second office, and in 2020 the company is positioned in eight states with 11 offices.

Layton since inception has followed the mantra of its founder: “Constructing with Integrity. Our Integrity is measured by hard work, thrift, honesty and fairness.”

Caesars Republic Hotel

“These are the values we abide by each day,” says Geier. “I am looking forward to continuing to help our clients achieve their goals and watching our folks grow and develop their skills.”

With a broad mix of market segments, Layton’s portfolio includes among others office, industrial, healthcare, hospitality, public works and tenant improvement. “Leaning on the lessons we learned coming out of the Great Recession, we wanted to have a diverse portfolio in Arizona,” says Geier.

“We felt a diverse resume of projects was protection against the downturn of any individual product type. It also gave us the ability to quickly adapt and capitalize on product types that had growth opportunity.”

In the Valley, Layton’s presence is on display in a plethora of exciting projects including SkySong 7 Office Building, Transwestern Office (tenant improvements), Nationwide’s Scottsdale Headquarters at Cavasson and Mark Anthony Brands Production Facility (White Claw). “We are also heavily involved in the hospitality space with offerings such as Caesars Republic Scottsdale, The Ritz-Carlton Paradise Valley, the AC Hotel by Marriott at the Arizona Center, Cambria Hotel in Chandler and the Hyatt Dual Brand in North Scottsdale,” he says. “Also, we are building the Don & Charlie’s hotel at 75th and Camelback. Every new hospitality project that enters the market is attracting higher average daily rates, providing guests with great new options and setting the bar for other properties.”

SkySong 7 Office Building

Transwestern Office

With Greater Phoenix construction booming, Geier is positioning Layton to secure premier client wins and robust revenue gains, while navigating the complexities of a rising cost environment and tight construction labor market. “Our price structure will always remain competitive regardless of market conditions,” he says. “In terms of subcontractor labor shortages, we have longstanding relationships with a wide group of subcontractors. They know they can count on us to run tight schedules, pay our bills on time and treat them fairly.”

With his finger on the pulse of construction in the Valley, Layton’s Geier believes the firm will continue to expand its presence in the metro. “Our philosophy is simple: We can only be successful if our clients are successful,” he says. “I am looking forward to great things in the future.” © MPmedia, LLC 2020

MAB Production Facility (White Claw)

27

Sponsored by

7th Annual REIAC/Rockefeller Group Challenge Doing it Pandemic Style Please join us for the 7th annual REIAC/Rockefeller Challenge in support of the Master of Real Estate Development (MRED) program at the W.P. Carey School of Business. Three competing teams of graduating MRED students will each present a development solution for Danielle Plaza located at the southwest corner of Mill and Southern Avenues in Tempe. Each team will have just 10 minutes to present, with the winning team selected by the audience. The winning team members will each receive a $1,000 cash prize, up to $6,000.

Registration to attend is open to the public.

Wednesday, May 6, 2020 4:15 p.m. Login into Zoom (code 281412401), BYOB 4:30 p.m. - 5:30 p.m. Presentations 5:30 p.m. Voting and Announcement of the Winning Team

Please register to attend at

www.reiac.org

REIAC Members: Free Non Member: Free Student: Free

Our Generous Sponsors Atwell, LLC • BBVA • Butler Design Group • CivTech • Commercial Executive Magazine • First American Title Insurance Co. Govig • KPMG • LINEAGE CRE • SRP • Snell and Wilmer •The Rockefeller Group • Town of Gilbert • Willmeng Construction, Inc.

28

© MPmedia, LLC 2020

© MPmedia, LLC 2020

29

Living through the Legacy

30

Craig Henig, Executive Director, The Mack Company © MPmedia, LLC 2020

Following in the footsteps of greatness can be one of the most daunting yet rewarding challenges. For Craig Henig of The Mack Company, the journey will be particularly gratifying as he carries on both the historic commercial real estate legacy of his father, Ralph Henig, and a multi - generational association with the Mack family, currently owners of New York - based Mack Real Estate Group. “My father’s love for real estate was contagious, and I have been immersed in it my whole life, too,” he says. “Losing my Dad in December 2O19 was a monumental loss for our entire family. We were not expecting it and it moved fast. But we also have the opportunity to pay our respects to him in a way that he would love – moving forward in the real estate business with our long - time friends and partners (the Mack Family), doing good work and making great deals.”

Event Group, 1972 Back row: Bill Mack, Maxine Henig, Ralph Henig, Lydia and Carl Spinella.

Front row: Phyllis Mack, David Mack, Sondra Mack, H.B. and Ruth Mack.

Investing in Real Estate Through Generations The Mack Company, founded in 1962 by William (Bill) Mack and family, is notable for building and acquiring a 20 million square foot office and industrial portfolio in New Jersey from the 1960s to the 1980s. Ralph Henig joined Bill Mack and his brothers, Earl, David and Fred, at The Mack Company as the first non-Mack family member general partner in 1968, and played a central role in that explosive growth. In 1997, the majority of The Mack Company’s office portfolio was merged into Mack-Cali Realty Trust, a public REIT listed on the NYSE, of which Bill Mack became chairman. The Mack Company continued to own and operate industrial properties. After a brief “retirement,” Ralph Henig expanded The Mack Company’s activities to Phoenix.

Bill Mack went on to found Apollo Real Estate Advisors, a pioneering real estate private equity firm later known as AREA Property Partners. In 2013, after selling AREA to Ares Management, Bill Mack and his sons Richard and Stephen carried on the Mack family’s tradition of commercial real estate excellence by launching a new stand-alone © MPmedia, LLC 2020

Ralph Henig, 1985

venture, Mack Real Estate Group (MREG). Now the multigenerational Mack-Henig association comes full circle as MREG has begun sourcing Phoenix area transactions through a consulting relationship with The Mack Company. “MREG is an integrated developer, operator, investor, lender, asset manager, property manager and 3rd party property manager with offices and affiliates across major markets of the United States,” says Richard Mack, CEO of MREG. “We believe Craig has the leadership qualities, real estate experience and relationships to help us expand MREG’s Southwest business.”

31

The Henigs and The Macks – Making a Mark in New Jersey

“Retirement,” Move to Arizona and 1O Million Square Feet of Deals

Born December 2, 1937, to Hilda and David Henig, immigrants from Poland, Ralph Henig grew up in The Bronx and attended Music and Art High School in Harlem. An athlete, Ralph was offered scholarships for baseball and basketball, starting college at the University of Alabama before transferring to NYU and completing business and law degrees.

In 1987, Ralph was contemplating an early retirement and making a move to the Grand Canyon State. However, as driven as he was, the days of poolside relaxation and tennis did not suit him well. Before he took a leap into supposed retirement and move to Tucson, Ralph and his long-time friends and business partners Bill and David Mack, decided to establish a Mack Company presence in Arizona by opening an office in Tucson before Ralph even left New Jersey. And, in typical Ralph style, he acquired a 120,000 square foot office building in Scottsdale while still living in Fort Lee, New Jersey.

Ralph opened the Tucson Office in November of 1987 and immediately began tackling the Greater Phoenix industrial market with purchases of 700,000 square feet of space.

And that was just the beginning. Craig joined The Mack Company in 1990 and established a Scottsdale location during his 10-year tenure before moving to CBRE to run the Arizona Operations until 2018. Ralph always enjoyed his frequent visits with David Mack, and all told, The Mack Company purchased or developed over 10 million square feet of office, industrial and retail space from 1987-2019.

Ralph Henig the Man

Ralph Henig, 1974

Six years after The Mack Company’s launch in New Jersey, the firm brought Ralph on board after he developed a productive business relationship with Bill Mack during Henig’s tenure at Schlesinger and Son, a leading Newark brokerage.

Ralph became the only partner at the organization without the surname Mack. From 1968-1987, William and Ralph flourished, developing and purchasing over 20 million square feet of industrial and office space. In 1985, their efforts were lauded in The Business Journal of New Jersey as two of a small distinguished group of commercial real estate professionals known as “The Men Who Built New Jersey.” This group as a whole was responsible for much of 150,000,000 square feet of office buildings in New Jersey. At the same time, Ralph and the love of his life Maxine raised three children, Heather, Craig and Jodi.

“I think those years in New Jersey were the time when he really developed the traits that made him stand out as a commercial real estate executive,” says Craig. “I would call him driven, type AAA, smart, aggressive, loyal and fair. Basically, a deal junkie with a big heart and great sense of humor.”

32

Ralph’s excitement for and success in real estate was matched only by his enthusiasm for family which includes his five precious grandsons, Sammy, Joshua, Harrison, David and Zack and living life to the fullest. He enjoyed his dog (Harvey) and many, many cars as well as being a mentor to many not only in the real estate, finance, legal, and other industries.

“My Dad was a passionate man who put his heart and soul and pedal to the metal mindset into everything he did, from real estate to sports to his family to philanthropy,” Craig says.

“Dad was playing tennis competitively up until two months before he passed. He smoked three or four cigars every day for more than 40 years and thankfully just chewed on them for the past 10 years, and he did at least three crossword puzzles a day. No vacations for him though; he was always after the next deal.” In fact, in early December of 2019, Ralph signed his last lease from his hospital bed as he insisted on ending this chapter of his life HIS WAY!

Craig Henig – Extending the Legacy Craig certainly has big shoes to fill but is up to the challenge with an impressive record of his own after 30 years in the business. Now in his return to The Mack Company, beginning in mid-2018, Craig is working closely with the MREG team.

“At The Mack Company, I am focused on sourcing a variety of transactions on behalf of MREG, including development opportunities, value-add acquisitions, placement of GP and LP equity, transitional debt and Opportunity Zone deals. Our multiple investments include projects in both the industrial and multifamily sectors. So far I have identified opportunities © MPmedia, LLC 2020

in excess of $2 billion in transactional value,” Craig says.

“Two early transactions are a 170-unit Class A multifamily community located in Scottsdale, scheduled to break ground this summer, and a 20-acre site in Deer Valley expected to house 400 new multifamily units. Both are located in federally designated Opportunity Zones.”

Richard Mack, CEO and Co-Founder Mack Real Estate Group

MREG – Southwest Expansion The Mack Company’s local collaboration with MREG continues an over-50-year tradition of the Mack and Henig families coming together to achieve extraordinary results.

“Our collaboration with the Mack Company and specifically Craig has ramped up and will continue to do so, a sign of our commitment to growing property businesses through multiple generations,” says Richard. “This is the natural evolution of The Mack Company’s business in Arizona.

That business will benefit from the development and capital markets experience of the national Mack Real Estate Group platform, while MREG benefits from the local experience of Craig and his team in Arizona. The fact that our families go back so many decades together will make our efforts even more gratifying.”

Looking Ahead and Remembering Opportunities abound for MREG and The Mack Company across the Southwest region. “Ralph was a special friend, real estate talent and personality who grew up in the industry alongside our own father,” says Richard. “I am so pleased to continue expanding our business network in Phoenix through his son, our lifelong friend Craig.”

And for Craig, his efforts and successes will carry on the legacy of his father’s influential work in the industry. “I am incredibly excited and fortunate to have worked with my Dad – my best friend – and had the benefit of his influence and experience, and to simply to have learned from the best and also to move forward in real estate with the Macks.” © MPmedia, LLC 2020

33

Jenna Borcherding Director of Development, VanTrust The number of total miles between Little Rock, Arkansas, and Phoenix, Arizona, that Jenna Borcherding, director, development at VanTrust, traveled in 2011: 1,300. “I moved to the Valley after working for Dassault Falcon Jet (a French aircraft manufacturer for business jets) in Little Rock, to be with my then boyfriend, now husband, Rob, whom I met while studying at The University of Alabama,” she says. “Phoenix was still reeling from the recession, but I was fortunate to get a sales job that introduced me to the commercial real estate industry.”

Borcherding’s rapid ascent in the industry finds her successfully leading several development projects throughout the Western United States. As Director of Development at VanTrust, which has grown their footprint from its headquarters in Kansas City to four regional offices including Columbus, Dallas, Jacksonville and Phoenix, she now provides leadership for several of the companies’ projects.

The fast-growing CRE operation offers clients an integrated suite of services across a spectrum of product types, including office, industrial, multifamily, retail and hospitality.

“I am most proud of the reputation VanTrust has built across the country and our culture of collective success,” Borcherding says. “Our immediate access to capital allows us to be nimble and ultimately pursue great land and development deals.

As a result, we are able to provide customers with fast and creative solutions to their real estate needs.”

Beginning her CRE career in business development at DLR Group with specialization in engineering and design, Borcherding subsequently learned the construction side of the industry at Jokake Construction in a director role. “While working at Jokake, I set my sights on development,” she says. “I consulted with many mentors and realized I needed to establish a specific skill set that would be valuable on the development side of the business. I earned my real estate license and joined the office tenant representation brokerage team at JLL, working alongside John Pierson.”

After three years in brokerage, Borcherding felt confident and ready to make the move to VanTrust. “I am grateful to our local team for embracing a former office broker without hesitation,” she says. “I love working with Keith Earnest, executive vice president. Keith has been my mentor since 2013. He was instrumental in explaining how owners and developers evaluated deals, which helped me understand how to best represent tenants during lease negotiations.”

34

Borcherding is heavily involved in VanTrust’s work developing office space in Chandler. The company already has found success with Chandler Corporate Center-Phase I (118,000 square feet of office) and is expecting to repeat with Chandler Corporate Center-Phase II (118,000 square feet of office) and Chandler 101 (20 acre mixed-use project).

“Our team has also experienced amazing accomplishments in North Las Vegas, developing 6.0 million square feet of industrial buildings in just four years,” she says. “Whether it is ground-up or redevelopment, I love watching projects come to life.”

CRE is a business of fostering long-term relationships, a point Borcherding learned early. “I joined the NAIOP AZ Developing Leaders Steering Committee in 2011, chaired their mentor program for three years, and was the chairman of the Developing Leaders in 2017,” she says. “I credit my involvement in industry organizations like NAIOP for getting me to where I am today.”

And she wants to further capitalize on the relationships she has forged. “I am connecting VanTrust to the next generation of commercial real estate professionals. A group of us in our 30s-40s have ‘grown up’ together since entering the industry,” she says. “This peer group represents tenants, landowners, economic development organizations, etc., and controls a significant amount of business. Whether we once participated on a board together or used to work with one another, these relationships bring opportunity.”

When Borcherding made the move to VanTrust, she was nine months pregnant and preparing to take on a new career challenge. “My husband, Rob, and I recently celebrated our son’s first birthday. Rocky has brought a whole new meaning to life, and our adventures are simply more fun with him around,” she says. “Our trips always involve the outdoors as we love to hike and fly fish. New Zealand and Montana are two of my favorite places, and I am usually planning the next trip as soon as we get home from the last.”

With Borcherding situated in her role, VanTrust can expect great success ahead. “I’m optimistic that the downturn as a result of COVID-19 (while severe) will be short. Industrial has proven to be most resilient, but I think office development in Phoenix will continue to accelerate and provide exciting opportunities for companies and investors.”

© MPmedia, LLC 2020

“I joined the NAIOP AZ Developing Leaders Steering Committee in 2O11, chaired their mentor program for three years, and was the chairman of the Developing Leaders in 2O17.‌ I‌ credit‌ ‌my‌ ‌involvement‌ ‌in‌ ‌industry‌ ‌organizations‌ ‌like‌‌NAIOP‌‌for‌‌getting‌‌me‌‌to‌‌where‌‌I‌‌am‌‌today.”

Jenna Borcherding Director of Development, VanTrust

© MPmedia, LLC 2020

35

Congratulations to the Future Leaders of Butler Design Group The “A Team” sincerely appreciates working with BDG and we’re excited to continue our strong relationship with new Principal, Korey Wilkes and new Associates, Todd Lawrence, Abby Madrigal, Ken Miller and Anthony Villarreal.

Congratulations to each of you on your well-deserved promotions!

82209 MCE BusCards.qxp 7/28/16 3:20 PM Page 1

McGREW CONSULTING ENGINEERS, LLC Electrical and Mechanical Engineering

ROBERT D. McGREW, P.E. President

36

602.285.1669 www.kraemereng.com

20045 N. 19th Ave, Bldg 10, Ste.©2 MPmedia, LLC Phoenix, 2020 AZ 85027 Phone: (602) 331-0114 Mobile: (602) 206-9599 bmcgrew@mcgreweng.com

Meet The Future

Butler Design Group

A

ccording to the National Center for Employee Ownership, there are approximately 6,600 Employee Stock Ownership Plans (ESOPs) covering more than 14 million participants in the U.S. Founded by Principals Rick Butler and Jeff Cutberth, Butler Design Group (BDG), one of the Valley’s most distinguished architectural firms, transitioned to an ESOP at the end of 2018.

“The move to this company structure is the logical extension to what Jeff and I have believed about our firm and its team members. BDG has always had a strong culture,” Butler says. “Our talented staff is at the heart of our success. It may sound trite to say ‘lead by example,’ but we have worked side by side with our key leaders for years,” Cutberth says.

“We’re starting to see the future of the firm. … It’s very gratifying,” says Butler. © MPmedia, LLC 2020

Left to right: Anthony Villarreal, Korey Wilkes, Abby Madrigal, Todd Lawrence and Ken Miller

37

Jeff Cutberth and Rick Butler, 1999

Starting Points

Since its inception, BDG’s design imprint can be found on over 50 million square feet of industrial, office, retail, medical office and other specialty commercial real estate projects.

“We have continued to refine our craft in our primary market sectors, so we see those as our core pillars for the future,” says Cutberth. “We are so fortunate to have the relationships that we have, and never take them for granted,” says Butler.

“Many of our clients are personal friends - that means a lot.

We have had the opportunity to do some fantastic, notable projects over the years.”

BDG

Butler and Cutberth have held the reins of BDG since 1996, steering the firm to extraordinary achievements. Along the way, the duo has built a reservoir of talent, which has been instrumental in the company’s robust expansion. “It is very rewarding to see the growth in so many individuals that make up our firm. We have a number of folks over 10 years,” Butler says. “That loyalty means a lot and validates that we are [collectively] doing something right.”

The crop of talent within the firm also offers the duo an opportunity to address the direction of the business and how the company will evolve. “It is hard not to want to develop the future around the foundation of success we have enjoyed for the past 24 years,” says Cutberth.”

BDG 2.0

In the parlance of business, succession planning answers the question of what happens to the business after the current leadership departs. “Rick and I have always said we looked forward to the time when it would be less about ‘Rick and Jeff’ and more about BDG as a whole,” says Cutberth. “When we turned 10 in 2006, we started planning for the continuation of the firm into the next generation.”

38

Jeff Cutberth, Rick Butler and Korey Wilkes, 2020

To be crystal clear, neither gentleman is close to calling it a career, particularly because of the firm’s extended pipeline of projects. “For 20 years, Jeff and I had always been the clear leadership of the company from a client perspective. That’s been changing, with Korey Wilkes now a principal, and us promoting others within the firm,” says Butler. “We have worked hard to encourage others to build a name/reputation for themselves in the industry. That is good for them, and, in turn, for the organization.”

BDG’s emerging leadership will continue to advance the market segments, which have brought the firm sustained success, while also pursuing new commercial endeavors. “We have an awesome client base, wonderful relationships with the brokerage and construction communities and so many friends in the industry that have been loyal to us for so many years. We love our scale and ability to ‘keep it personal’ in terms of the service,” says Cutberth. “But at the same time, we will consistently challenge the next generation of leaders to be open to opportunities that may further shape BDG in the years ahead. We are excited and confident about the future and look forward to continuing to build our leadership team – we’re just getting started!”

Professional Grade

Butler and Cutberth’s enthusiasm about the direction of the firm is matched only by the excitement of the BDG team members. “I have been with BDG for over 20 years now and have contributed to the ‘BDG brand’ in many ways,” says Wilkes. “We are devoted to serving our clientele and providing a quality product. I carry that mantle into all I have done with BDG, representing it at various levels over the last two decades. I lead by example and am not afraid to dive into any aspect of the business.”

© MPmedia, LLC 2020

Ken Miller, Korey Wilkes, Abby Madrigal, Todd Lawrence and Anthony Villarreal

Joining Wilkes in the new leadership team are Associates Abelina (Abby) Madrigal, Todd Lawrence, Anthony Villarreal and Ken Miller. “BDG has allowed me to grow within the firm and industry. If you are willing to learn, BDG is willing to teach. Rick and Jeff are hands-on teachers and that type of learning from knowledgeable and talented principals is what drove me to want to work at BDG with Rick, Jeff and now Korey,” says Villarreal.

Approach

Architecture and design, as with any profession, is constantly changing due to innovation and new bold initiatives. “We have built such a recognizable brand in our approach and quality of service over the past 24 years. I look forward to maintaining that with a new generation of leaders, but doing it in our own way,” says Wilkes. “Capitalizing on what the first generation has done, but through new perspectives, new technology and new approaches. We will improve the brand for the next generation of clients and industry partners. We have a bright future ahead of us.”

Count Madrigal in as an ardent supporter of the future heading of BDG. “I am excited about every part of the journey to come. Rick and Jeff have set a great foundation, © MPmedia, LLC 2020

which has established the great reputation we have with our clients and in the Valley,” she says. “Our core values will continue to be our main priority through the next generation, and we’ll continue to look for ways to become more efficient and adaptable as the future changes.”

Miller also believes technology will transform the architectural space. “The next generation of firm leaders is emerging. Technology drives efficient workflows like never before. Advancements in BIM, mobile workstations, video conferencing and cloud computing allow us to work faster and smarter, from anywhere, with clients who are everywhere,” he says.

Architecture 101

Architectural style and design morph from client to client and project to project, yet enduring principles remain, which have served BDG well over the years. “Architecture is always a risk as it is an art form, so some like what they see, and some do not. You do your best to appeal to as wide a group of people as you can and yet, you will still have critics. Humbly, I believe that BDG has managed to maintain an architectural style and approach that does just that - appeals to a broad spectrum of the community and creates value for our clients and the

39

40

© MPmedia, LLC 2020

Villarreal’s passion for BDG’s work is certainly evident.

“I continue to see BDG as an industry leader in the many markets we are involved in such as retail, various commercial, office, industrial, mid-rise and municipal buildings. With our willingness to think outside the box to constantly evolve and push ourselves, we will advance our success into the next decade and beyond,” he says. “We will continue to push the envelope and raise the bar for what we expect of ourselves within the industry, which will lead to ongoing success.”

Future

When Butler and Cutberth do decide it is time to slow down, the culture, firm structure and stable of talent they have developed will serve BDG extremely well in the marketplace.

“We care about our people, and their families. It is their livelihood after all,” says Butler. “We have focused and invested in key individuals that have been with us for many years,” Cutberth says. “It is incredibly rewarding to see their individual growth, not just in the field of architecture, but in their confidence, personal development and leadership qualities.”

“I see the ‘BDG brand’ growing even more. It is already a highly recognized and respected brand in the industry. We will continue to perfect our trade and provide high-quality designs, execution, plans and follow through,” says Wilkes.

Abby Madrigal and Todd Lawrence users,” says Wilkes. “That being said, we are also stretching our clients, the municipalities, contractors and others to think outside the box and embrace architecture as a community influence of attraction, value and growth.”

Opportunity

Greater Phoenix continues to experience population influx into the metro area, which drives economic expansion and ultimately leads to more construction and development.

“Mixed-use projects are on the rise. The need for convenience and human interaction is extremely important on how to determine a vision,” Madrigal says. “The site plan and the architectural design establish the flow and the feel to create an experience for all the tenants and building users.” New opportunities also present challenges according to Miller.

“Parking will be a design issue facing developers. Space is at a premium as our city shifts toward growing up, not out,” he says. “New transportation paradigms will influence parking demand, and the ‘rules of thumb’ will be re-written.”

Upcoming

Excitement and energy fill the workspace at BDG, and the 30-member team strives to deliver excellence in every aspect of their work and client relationships. “The exciting thing will be charging into new projects and carrying the torch,” says Lawrence. “We are blessed with a very strong team at BDG. We work with a lot of good people in the Valley and have for years.

These relationships are our focus and will continue to be.” © MPmedia, LLC 2020

Anthony Villarreal and Ken Miller

41

Good news is in short supply these days, so we’re honored to be featured in this article about the future leadership of BDG. Despite the global pandemic that has struck our country and our beloved state, stories like this one remind us that we are privileged to work in one of the nation’s most creative, energetic , and resilient CRE markets. After nearly 25 years as active mar participants in this amazing industry, we believe the Valley will come back stronger than ever.

42

Š MPmedia, LLC 2020

Shaping the next generation to lead Butler Design Group into the future of design in the Valley Congratulations to Korey Wilkes, Todd Lawrence, Abby Madrigal – and to the newest BDG Associates Ken Miller and Anthony Villarreal!

BRASS RING Work Life

CULTURE

Success is not merely measured by wealth and prestige. Real success grows from achievement and fulfillment in multiple aspects of life. Colliers International in Arizona fosters a business culture that encourages worklife balance. This commitment translates into a comprehensive response to client needs and creates unparalleled performance. colliers.com/arizona

Š MPmedia, LLC 2020

43

Steven Callahan E M E R G I N G

P R O F E S S I O N A L

A skilled underwriter, Steven Callahan, assistant vice president, is in the midst of building his repertoire at Alliance Bank of Arizona, a division of Western Alliance Bank, Member FDIC. After gaining experience working with office brokers Jerry Jacobs, Michael Crystal and Chris Latvaaho at NGKF and C&W, Callahan landed at Alliance Bank and is settling into his career with a bright future ahead.

What do you enjoy most about your role at Alliance Bank of Arizona?

I mostly enjoy the variety. Most financial institutions silo groups into product specialists. While we have specialists, we are exposed to all industries including office, retail, industrial, multifamily, data centers, mini storage and senior housing.

What’s the most notable or exciting loan you’ve worked on?

The most exciting loan I have had the opportunity to underwrite was a large mixed-use asset. The project included retail, office and multifamily, which required analysis on all three product types. In addition, the asset was also on a ground lease and required future lease-up, further increasing the complexity. The complexity and size of this deal made it memorable and easily the most exciting loan I have worked on this far.

What’s the biggest risk you have ever taken?

I purchased my first home last year. The home is a major fixer-upper. I am improving the project myself, at night and on the weekends, while leveraging my father’s general contracting team for technical improvements. While this project has proven to be a major time commitment, I am enjoying the quality time with my father while I learn all I can from him.

How has your mindset evolved from when you first started your career to now?

I have become much more focused on the importance of fostering relationships and having clear focus and drive to achieve my goals. I believe that much of my early success is due to the advice of my mentors at Alliance Bank: Ericka LeMaster, Chris Burson and Lucy Ray. They are instrumental in teaching the fundamentals (investing, lending and development) to understand the commercial real estate industry.

What are you most proud of?

I have to say that nothing I have done would be possible without our amazing team at Alliance Bank. I am extremely proud to be part of this team and grateful that we are able to work together to help each other achieve our goals. The culture at Alliance Bank creates an environment that makes it easy to love going to work every day.

44

© MPmedia, LLC 2020

© MPmedia, LLC 2020

45

46

© MPmedia, LLC 2020

CEM’s 3rd EPNE was hosted at Colliers on February 27, 2020. The event, targeting young and emerging professionals, featured CRE industry networking, food and beverages. Bob Mulhern, senior managing director with Colliers’ Phoenix office, made the rounds and chatted with the young attendees in the industry.

The Feb. 27 event took place prior to COVID-19 outbreak. CEM’s next EPNE, which was planned for May or June, is to be determined.

Sponsored and hosted by:

© MPmedia, LLC 2020

47

the

importance of

home affordability

C.J. Eisenbarth Hager is director of healthy communities for Vitalyst Health Foundation and co-chair, ULI Arizona Equity, Health and Housing Affordability Task Force. She oversees Vitalyst’s built health community strategies, including food systems, transportation options, green space access and affordable housing.

Now, more than ever, I am reminded of the importance of home.

Housing is a basic, elemental human need. Arizona was already facing a daunting housing affordability squeeze across a widening income spectrum. We were already deeply troubled by increasing rates of people experiencing homelessness. Now, during the growing coronavirus spread, we see more clearly how much each of us relies on safe and affordable shelter as employers implement work-from-home policies and governments declare temporary moratoria on evictions and foreclosures.

Home is not just a protective shield during troubled times; it is essential to health–physical, mental and social. Many believe–myself included–that good quality, affordably-priced housing is a critical piece of the community health and wellbeing puzzle.

48

ULI Arizona is embracing the important role its members play in building housing with the creation of the ULI Arizona Health, Housing and Equity Taskforce. While housing is familiar ground for ULI and its members, the tenor and context for this conversation is different and timely.

ULI Arizona is one of just four national ULI District Councils that is exploring the connection between real estate development, health and social equity.

This taskforce is supported by national ULI through a grant from the Robert Wood Johnson Foundation.

Responding to its local members that wanted deeper conversations, ULI Arizona quickly honed its focus on housing affordability. At Vitalyst Health Foundation, we saw this taskforce as a unique opportunity to help grow the housing affordability discussion beyond typical partners. ULI Arizona is a natural incubator for this conversation. To support this effort, we provided a funding match.

© MPmedia, LLC 2020

Knowing that housing affordability is now a vital topic in many circles, we wanted to be sure the Taskforce was not duplicating existing conversations. In the effort to be additive, we leaned into ULI’s forte: real estate development and shaping successful cities and regions, and recognized that the piece of the housing affordability discussion that ULI’s membership could most readily address was so-called “workforce” housing or the “missing middle.”*

Our last conversations are the most important. We must understand, and be driven by, how potential solutions will impact those whose housing affordability challenges we hope to address. After all, now more than ever, home is a basic elemental need, essential to health, and our protective shield.

We need to ensure that it is available, affordable and protective for us all.

For Taskforce membership, we gathered some of the Valley’s most respected experts on housing affordability. We included other professionals whose work touches housing affordability.

*For a family of three in Phoenix, income would fall between $52,500 and $78,750. **Stay tuned. ULI in partnership with Vitalyst will release a summary of these findings later this year.

Ultimately, we saw our work as falling into three distinct but interwoven discussions.

Learning The Valley and Arizona are not alone in grappling with housing affordability. To accelerate learning, a team of national ULI experts, the ULI AZ Taskforce, and a dedicated ASU graduate student developed an inventory of policies and programs that could be marshalled to help meet this critical need.**

Vetting for our Local Context We held a working meeting with over 60 key stakeholders representing fields like nonprofit housing development, finance, public sector and healthcare. We conducted in-depth, small group discussions about the concepts uncovered in the learning phase and surfaced additional ideas. We learned there was interest and energy behind some concepts while others suggested the need for further investigation and refinement.

Applying our Learnings in Reality The City of Tempe has been an outstanding partner throughout the process and has been on the forefront of actions to support housing affordability. Later this year (when appropriate), we will gather with Tempe stakeholders to hear how some strategies could be used to preserve the availability of affordable options in growing urban neighborhoods.

© MPmedia, LLC 2020

C.J. Eisenbarth Hager Vitalyst Health Foundation

49

50

© MPmedia, LLC 2020

Charging Forward in Arizona

Lucid Motors prides itself on the brilliant design of its world-class luxury electric vehicle, the Lucid Air. Equally as brilliant is the design architecture behind bringing the automotive innovator to Pinal County.

“This is a project years in the making,” says Jackob Andersen, president and CEO of Saint Holdings. “Without question, the 493-acre development in Casa Grande is the best site Lucid leadership could have chosen.”

© MPmedia, LLC 2020

51

Starting Points

Saint Holdings

On December 2, 2019, Lucid executives ushered in a new era with their “ground building” (a nod to their deep commitment to Casa Grande) ceremony. They were accompanied by Arizona Gov. Doug Ducey; Gov. Claudia Pavlovich of Sonora, Mexico; Casa Grande and Pinal County officials; representatives of the Arizona Commerce Authority; and distinguished guests. “Everyone present played a pivotal role in bringing Lucid to the region,” Andersen says. “This project was a true partnership and collaboration at all levels,” says Sandra Watson, president and CEO, Arizona Commerce Authority. “It really was a team effort.”

From that moment, Andersen went to work building a Pinal County land empire. The company purchased large tracts of property with a vision to transform the area into an industrial powerhouse. “When I started, there was not a significant commercial investment presence,” he says. “When you consider the infrastructure − I-10, I-8 and rail capabilities − Pinal County is uniquely positioned to grow its industrial and distribution footprint.”

Background For Andersen, Lucid’s arrival in Casa Grande began 15 years earlier when the Londoner settled in Arizona. “I had to learn not only the different dialect of commercial real estate in the U.S. as compared to the U.K., but also explore the Valley and discover the best opportunities for investment.”

As he investigated the metro, Andersen found himself driven to look south of Maricopa County into Pinal County. “I remember sitting outside of the office of Chairman of the Maricopa County Board of Supervisors, Don Stapely,” he says. “On the wall there were five maps with red dots showcasing the growth of the region: past, present and future. I recall seeing that the dots in the future were all clustering in Pinal County. I knew that was where I wanted to pursue CRE projects.”

52

Jackob Andersen

Sandra Watson

The Saint portfolio consists of some of the region’s premier CRE offerings: Casa Grande’s Central Arizona Commerce Park (740-acre industrial site and home to Lucid and Tractor Supply); Coolidge’s Inland Port Arizona (2,738-acre advanced manufacturing site home to Nikola Motor Company); and an adjacent 640-acre data center property – all three of which are represented by commercial real estate firm JLL – as well as Heritage (an 11,438-acre master planned residential © MPmedia, LLC 2020

community in Coolidge). “This area is poised to be a hub for advanced manufacturing. With this growth comes more business development, job creation, residential expansion and retail,” he says. “Arizona’s value proposition resonates strongly with high-tech manufacturers looking for the perfect location to scale and succeed,” says Watson.

Lucid Motors Searching for the ideal geography to produce the Lucid Air and future models in a full range of luxury EVs, executives began an exhaustive search in 2015, which covered 60 sites in 13 states. After extensive collaboration, leadership announced in November 2016 that Casa Grande would be the company’s destination. “Significant projects like the Lucid Motors manufacturing operation are complex and often take an extended period of time as a company conducts thorough due diligence and analysis of markets,” says Watson. “From the start, Gov. Ducey played the leading role in winning this project for Arizona. We could not be more proud to have Lucid call Arizona home, and we look forward to seeing the first cars roll off the assembly line.”

Jim Harrison © MPmedia, LLC 2020

By the Numbers Lucid’s decision holds large-scale implications for the region.

The forecasted $700 million capital deployment generates approximately 4,800 direct and indirect jobs by 2029, an estimated $32 billion revenue impact for the city and county over a 20-year period, and training programs and new curriculums at local community colleges.

“The Lucid Air is a cutting-edge electric vehicle designed, engineered and destined for manufacture entirely in America,” said Peter Rawlinson, CEO and CTO, Lucid Motors.

“We are proud to be moving forward on our commitment to manufacturing the Lucid Air in Casa Grande.”

O to 60 in…

Taking a project from 0 to 60 mph is no easy process. For the project to succeed, Lucid leadership partnered with veteran JLL industrial brokers Bill Honsaker and Marc Hertzberg.

“Lucid had two major requirements that needed to be fulfilled,” says Honsaker. In addition to the construction of

Marc Hertzberg

Bill Honsaker

53

the 600,000 square foot primary manufacturing center on the 493-acre pad, Lucid also needed a separate center to produce a drivetrain component of the Air. “The second aspect involved their supply chain and logistic operation,” says Honsaker. “The company needed warehouse and distribution capabilities as part of their overall operation.”

To solve these dual challenges, Honsaker and Hertzberg turned to Jim Harrison of Harrison Properties, a Phoenixbased industrial space company with 12,000,000 square feet under their direction. “Jim was instrumental in finalizing this transaction,” says Hertzberg.

To solve issue number one, Harrison delivered a 190,000 square foot facility near Lucid’s 600,000 square foot build. As for number two, Harrison found a perfect match in Tempe with a former Safeway grocery warehouse comprised of 497,000 square feet of storage. “Without those leases, the overall project may have stalled,” says Honsaker. “I am glad that these parcels were available,” says Harrison. “The Lucid deal is a big shot in the arm for Arizona.”

Mexico Lucid leadership certainly did not overlook the fact that Casa Grande is located strategically in the Sun Corridor, extending South from Pinal County into Tucson and across the border into Sonora. “Arizona’s strong partnership with our neighbors in Mexico – a direct result of the leadership of Gov. Ducey and Gov. Pavlovich – played a large role in this deal,” says Watson. “Sonora has a robust automotive manufacturing industry and supply chain, and Lucid will be able to tap into that for sourcing some products and parts which will benefit the economy on both sides of the border.”

Peter Rawlinson

Training

Pinal County It was no accident that Lucid chose Pinal County as its advanced manufacturing home. “No one has worked harder than Gov. Ducey, Sandra Watson and local leadership on making this a reality,” says Andersen. “Lucid’s long-term commitment speaks to their belief in the locale and all of the strategic advantages it offers.”

Pinal County offers Lucid and other advanced manufacturing companies a robust mix of competitive advantages, including infrastructure, proximity to trading partner Mexico, Foreign Trade Zone status, an educated and talented workforce and economic affordability. “Just as the dots predicted, Pinal County is on an aggressive expansion trajectory,” says Andersen. “There are ripple effects across the region when large development projects such as Lucid come to the Valley,” says Hertzberg. “We fully expect advanced manufacturing suppliers and vendors to locate operations in Pinal County, which drives organic growth in employment, housing and the service economy.”

54

Another critical aspect of this endeavor is a stakeholder commitment to invest resources in education and training to ensure Pinal County offers world-class talent. “Under the guidance of the Arizona Commerce Authority’s Office of Economic Opportunity – and with the assistance of Lucid Motors and other manufacturers operating in the region – the Maricopa Community College District, Central Arizona College and Pima Community College launched a first-of-itskind, unified curriculum to meet rigorous third-party industry credentialing standards,” says Watson. “This partnership is specifically designed to teach the skills needed for highpaying, high-tech advanced manufacturing jobs, preparing Arizona’s workforce for the jobs of the future.”

Future Currently under construction, phase one of Lucid’s facility is slated to be completed in late 2020. “I am delighted to see this project come to fruition. After a long journey this certainly feels great,” Andersen says. “With supportive investors, an outstanding team of designers and engineers, and a product strategy that extends well beyond the Air, we expect this to be the start of a longstanding presence in this dynamic city,” says Rawlinson.

© MPmedia, LLC 2020

“

Significant projects like the Lucid Motors manufacturing operation are complex and often take an extended period of time as a company conducts thorough due diligence and analysis of markets. From the start, Gov. Ducey played the leading role in winning this project for Arizona. We could not be more proud to have Lucid call Arizona home, and we look forward to seeing the first cars roll off the assembly line.”

© MPmedia, LLC 2020

- Sandra Watson, President and CEO, Arizona Commerce Authority

55

56

© MPmedia, LLC 2020

© MPmedia, LLC 2020

57

58

© MPmedia, LLC 2020