Issue 5, 2018: Fall Forum by Commercial Executive Magazine

WOMEN IN POWER Four Outstanding Women in Local CRE

SIZZLING SECTORS Update on the Hottest Sectors in the Valley

CEM-AZ.COM â&#x20AC;¢ ISSUE 5, 2018

Location:

Anthem (Phoenix), AZ

Location:

Tucson, AZ

List Price:

$3,200,000

List Price:

$2,526,000

Rentable SF:

±3,200

Rentable SF:

±824

Cap Rate:

5.00%

Cap Rate:

4.75%

Location:

Show Low, AZ

Location:

Phoenix, AZ

List Price:

$2,395,800

List Price:

$8,440,000

Rentable SF:

±2,400

Rentable SF:

±18,425

Cap Rate:

4.80%

Cap Rate:

6.75%

Location:

Casa Grande, AZ

Location:

Phoenix, AZ

List Price:

$1,412,000

Sold Price:

$3,050,000

Rentable SF:

±2,875

Rentable SF:

±6,396

Cap Rate:

4.25%

Cap Rate:

5.90%

Letter from the Publisher

Fall Forum Panelist Profiles

34 WOMEN IN POWER Four outstanding women in Phoenix CRE

ARTICLES Broker of the Month Patrick Dempsey, Managing Director, Holliday Fenoglio Fowler, L.P. (HFF)

Looking Back 10 Years

66 SECTOR UPDATE Eight executives discuss the hottest sectors in CRE

Reminisce on the last decade with photos of past Fall Forums, iconic covers, and more

East Valley Update Read how the Tempe market is inspiring new office destinations

E X E C U T I V E P U B L I S H E R Mandy Purcell • mandy@mpmediaaz.com M A N A G I N G D I R E C T O R Karen Gallagher • karen@mpmediaaz.com E D I T O R Celina Busse • celina@mpmediaaz.com E D I T O R I A L Celina Busse • Tim Randall G R A P H I C D E S I G N Allison Martin • allison@mpmediaaz.com P H O T O G R A P H Y Carl Schultz • Allison Martin 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

Letter from the

PUBLISHER

It all started 10 years ago with me thinking: Why don’t we have a unique event in our industry that’s informative but also fun? Fast forward to today, and I am thrilled to be celebrating the 10th Anniversary of my exclusive event, Commercial Executive Magazine’s Fall Forum. The time has finally come, and this year is without a doubt the most exclusive Fall Forum I’ve ever hosted. Our panel includes some of the most inspiring, affluent, and legendary leaders in commercial real estate. They include: Gary Tharaldson, Edward Robson, Conley Wolfswinkel, John Graham, Jim Pederson, Michael Pollack, and our wonderful moderator, Dana Garmany. A special thanks to Ed Robson, for not only hosting our cover photo shoot this year at his beautiful home, but countless other years of photo shoots, friendship, and support. Commercial Executive Magazine wouldn’t be the publication it is today without the incredible people who inspire me every day to do better, work harder, and create more. Walk down memory lane on pages 48-63 for photos of past Fall Forums, Broker of the Year winners, iconic covers, and more. As a female business owner, I’m constantly inspired by fearless women in the industry who continue to break barriers in our traditionally male-dominated field. This year’s “Women in Power” highlights both industry veterans and rising stars in commercial real estate. Read our annual “Women in Power” on pages 34-45. While our Arizona summer has come to an end, Phoenix always seems to stay hot. This is especially true this year in commercial real estate. Commercial Executive Magazine spoke with executives from each sector on why the market is so hot right now and what we can expect in the future.

MANDY PURCELL E XE C U T IVE P U B L I S H ER

Lastly, I’d like to thank our Fall Forum sponsors and attendees, as well as the hard-working CEM team for making this year’s 10th Anniversary event so special.

Enjoy the issue,

FALL FORUM PANELISTS & COMPANY CELEBRATE IN MR. ROBSON’S BEAUTIFUL

Mandy Purcell

HOME AFTER THE COVER PHOTO SHOOT

KAREN GALLAGHER, Managing Director karen@mpmediaaz.com Karen handles sales and marketing, strategic planning, and company operations. She works closely with the CEM team to ensure our readers and advertisers are the top priority.

Advertise with CEM PRINT • ONLINE • NEWSLETTER • SOLO eBLAST Fall Forum 2019 Sponsorships Available Now!

CONTACT KAREN REGARDING: Advertising

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Fall Forum

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Client Relations

CELINA BUSSE, Editor celina@mpmediaaz.com

Commemorate Your Article

With her tireless attention to detail and finger on the industry pulse, Celina ensures that our readers are up-to-date on CRE in the Valley. CEM welcomes editorial ideas for consideration.

Contact Celina for plaque and PDF customization and rates.

CONTACT CELINA REGARDING: Editorial

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Plaques & PDFs

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Press Releases

602-955-2899 • www.cem-az.com

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Commercial Executive Magazine sincerely thanks each of our generous sponsors. Your support of our 10 th Anniversary Fall Forum is deeply appreciated.

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LEFT TO RIGHT: DANA GARMANY, JIM PEDERSON, GARY THARALDSON, MICHAEL POLLACK, CONLEY WOLFSWINKEL, AND EDWARD J. ROBSON

XX 7

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Dana Garmany C H A I R M A N & C E O, T R O O N G O L F

Dana Garmany, Chairman and CEO of Troon Golf, is an influential leader in the community. Globally, he is revered in the multi-billion-dollar golf industry.

roon Golf was founded by Garmany in 1990. It has grown to become the largest thirdparty manager of golf and club operation in the world. Troon Golf has influenced the golf industry with more than 200 courses in 27 countries. With Garmany at the helm, Troon Golf continues to lead and set standards for domestic and international daily fee, resort, and private golf courses.

Garmany established a client-oriented business model early on at Troon Golf. “Success has been built one client at a time by listening and understanding the client’s challenges and customizing our resources to overcome them,” says Garmany. In his 35 years of leadership at Troon Golf, Garmany has fostered a workplace environment of collaboration and entrepreneurship. “As a leader, you get the most out of your people by adapting to them. Our people are the company’s best asset,” Garmany says proudly. Talent in the organization is of utmost importance to him. “We have the best of the best; from our head of operations to our CFO and general counsel, everyone comes from different disciplines,” says Garmany. “The worst thing a leader can do is be afraid of smart people. My philosophy has always been to hire people better than me. If you do that, you are going to be pushed yourself.”

“My philosophy has always been to hire people better than me. If you do that, you are going to be pushed yourself.” - DA N A G A R M A N Y

These philosophies have brought success to Garmany. Named by Golf Inc., Golf Digest, and Golfweek as one of the most powerful and influential people in golf, Garmany has received numerous honors throughout his career. They include: Induction into the DeKalb County Alabama Sports Hall of Fame, Southwest Section PGA Hall of Fame, the Arizona Golf Hall of Fame, the University of Alabama Hospitality Hall of Fame, and the Lifetime Achievement Award from the HSBC International Golf Forum. Commercial Executive Magazine is honored to welcome Garmany as moderator of our Fall Forum panel. With his extensive leadership expertise and decades as a business leader, Garmany will pose thoughtful and insightful questions to our panel of influential icons.

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C areer H ighlights Garmany has been named by Golf Inc., Golf Digest, and Golfweek as one of the most powerful and influential people in golf. Throughout his career, Garmany has also been involved in more than 30 construction projects. FAVORITE GOLF COURSE: Royal Melbourne West FAVORITE QUOTE: “The greatness of a man is not determined by what he accomplished, but rather by which they overcome.” OBSTACLE YOU’VE OVERCOME: Cancer — complete with two surgeries and chemotherapy IN ONE WORD, DESCRIBE THE SINGLE MOST IMPORTANT CHARACTERISTIC A LEADER MUST POSSESS:

Empathy

BIGGEST INFLUENCE AT THE BEGINNING OF YOUR CAREER: John Lennon and The Beatles changed my life and career path. They made me realize I wasn’t that good at music and writing. GREATEST EXTRAVAGANCE: Luxury travel FAVORITE FASHION DESIGNER: Brioni Business Attire, Etro Casual

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Gary Tharaldson O W N E R & C E O, T H A R A L D S O N H O S P I TA L I T Y

From humble beginnings in the Midwest, Gary Tharaldson, owner and CEO of Tharaldson Hospitality, has built a remarkable empire worth billions of dollars.

haraldson is the consummate entrepreneur. And a special kind of leader. He has developed more than 425 hotels and is projected to open his 500th property in 2020.

Hard work is a Tharaldson trademark. As a child, he dreamed about “doing something big” while growing up in a modest family near Dazey, N.D. He worked on the weekends to get through college. After graduation, he started his career as a high school teacher selling insurance on the side.

The tipping point of Tharaldson’s career came when he was 26. He founded Tharaldson Insurance Agency. Tharaldson was able to then use those profits to invest in real estate, purchasing his first hotel (Super 8) in 1982 in Valley City, N.D. With virtually no experience, training, partners, he began “Love what you do and be or building his hotel empire by purchasing, passionate about doing it constructing, and the very best you can.” managing hotels. – GARY THARALDSON

In 1996, Tharaldson Hospitality opened its 200th hotel. In 1997 and 1998, he was on the Forbes Magazine 400 annual list of wealthiest Americans. Tharaldson has repeatedly ranked as the wealthiest person in North Dakota. In March 2006, he sold a portion of his hotels to Goldman Sachs for $1.2 billion. His accomplishments haven’t always come easy. His business suffered during the economic downturns and tested his ability as a business owner.

Through determination, Tharaldson persevered and continued on his path to success. Over the years, Tharaldson ventured into several successful developments totaling nearly $1.3 billion and invested in projects outside of the hospitality industry. In 2006, he built and managed Tharaldson Ethanol, the fourth largest ethanol plant in the U.S. located in Casselton, N.D. Around this time, he acquired about 1,053 acres of commercial and mixed-use properties in Arizona, Georgia, Las Vegas, and Texas. Interestingly, in 2006 Tharaldson invested in a parcel of farmland owned by Conley Wolfswinkel, President of W Holdings, just 70 miles west of Phoenix in the Harquahala Valley. Neither Tharaldson nor Wolfswinkel knew it at the time, but they soon discovered that the land purchased sat above one of the largest aquifers in the U.S. With potential to supply water to up to 500,000 households for a century, the farmland Tharaldson owns has an estimated value of over $1 billion. Tharaldson’s list of achievements is impressive. In 2016, Forbes Magazine calculated Tharaldson’s net worth at $980 million. As one of the wealthiest leaders in the Midwest, his philanthropy is exemplary. He gives a tremendous amount of his earnings back to the community. “My biggest pleasure has always been to make a difference,” says Tharaldson. “Not only in the way we build hotels, but more importantly in people’s lives. Not only do I create jobs, but my whole philosophy is about how do I make life better for people that work for me. How do I make them wealthy?”

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C areer H ighlights Tharaldson was named the richest person in North Dakota by Forbes Magazine in 1999, 2015, 2016, 2017, and 2018. He has invested $1.3 billion in projects in commercial and mixed-use properties in Arizona, Georgia, Las Vegas, and Texas. Tharaldson Hospitality ranks 17th in the world in hotel property ownership. Over 95 percent of his nearly 500 hotels have been opened without partners. Donald Trump contacted Tharaldson in 2006 about partnering on a golf course in Las Vegas, although the partnership never came to fruition.

WHAT KEEPS YOU UP AT NIGHT?

HOW DO YOU DEFINE “MAKING IT”?

Capital needs - Having the money to keep up with the equity needs of my company to meet our goals is the biggest hurdle I face.

When I have met my goals of making life better for people who work for me and by sharing the wealth. IN ONE WORD, DESCRIBE THE SINGLE MOST IMPORTANT CHARACTERISTIC A LEADER MUST POSSESS:

“From my youth I always wanted to create something on a big scale. I wasn’t sure what that would be, but I knew whatever it was, it was going to be big.”

Passion

– G A R Y T H A R A L D S O N , F O R B E S M AG A Z I N E

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Edward J. Robson FOUNDER & CHAIRMAN, ROBSON RESORT COMMUNITIES, INC.

Edward J. Robson, Founder and Chairman of Robson Resort Communities, Inc., was a U.S. Marine and Olympic hockey player before becoming one of the most respected leaders in the Phoenix commercial real estate industry.

orn in 1930, Robson was adopted into a humble Massachusetts family as a child. “Ever since I was 8 I wanted my own business,” says Robson. “I’ve always had that drive. That alone was a factor.”

Growing up in the suburbs of Boston, Robson learned leadership skills early and went on to play hockey and baseball at Colorado College. He joined the Marines after college and during his 5-year tour was granted leave to play for Team USA in 1955. A year later, Robson was selected to become a member of the U.S. Olympic hockey team. Robson settled down in Phoenix to begin his real estate career. He started at Coldwell Banker in 1960 and shortly after made the move to Del Webb Corporation. “My first big break came from Wayne Doran who hired me to broker land for John F. Long Homes, one of the first large homebuilders in Phoenix, as well as my employment at Del Webb,” Robson recalls. Robson made his first land purchase in 1972, partnering with two of his colleagues from Del Webb.

They purchased 2,560 acres of farmland in the East Valley near Chandler and started Sun Lakes. The initial development consisted of lots and mobile homes. It eventually grew to become one of the largest privately held resort communities in the country. In addition to Sun Lakes, Robson has built numerous master-planned communities in Arizona and Texas including PebbleCreek, Robson Ranch Arizona, Saddlebrooke, Saddlebrooke Ranch, The Preserve at Saddlebrooke, Quail Creek, and Robson Ranch Texas. An iconic name in Arizona, Robson Resort Communities feature golf courses, country clubs, clubhouses, sport complexes, and aquatic complexes, giving residents meeting places for activities and socializing. PebbleCreek has 45 holes of championship golf on two courses. In addition, Robson has been honored by the National Association of Home Builders 55+ Housing Council with a Builder-of-the-Year award and also an Icon of the Industry award. The National Association of Home Builders also honored Robson with a Best in American Living Hall of Fame award. Robson is widely respected throughout the industry for his gracious philanthropic efforts in the community. Some of those include the Phoenix Boys & Girls Clubs, Marine Corps Scholorship Foundation, Wounded Warrior Project, and the American Heart Association. Most recently, Robson contributed millions of dollars to his alma mater, Colorado College, for the future on campus, indoor hockey practice facility, the Ed Robson Arena, and to Arizona State University, as Founder for the new Sun Devil Football Stadium. His humble beginnings have certainly stayed with him all these years. “I’ve been very fortunate,” says Robson. “There’s not much I would change. I’m not any better than anybody else. I just happened to be in the right place at the right time.”

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C areer H ighlights 50,000+ people call a Robson Resort Community home Robson Resort Communities has received nearly 20 awards in 2018 Robson Resort Communities was named the 2017 “Best 55+ Builder of the Year” by the National Association of Home Builders (NAHB) Robson Resort Communities has won the prestigious “Builder of the Year” Grand Award three times (2016 2018) by the Home Builders Association of Central Arizona at the Major Achievements in Merchandising Excellence (MAME) awards

GREATEST EXTRAVAGANCE: My boat WHOSE WORK DO YOU ADMIRE? • Robert Hidey – Architect • Matthew Boland – Interior Designer • Peter Lik – Photographer • President Trump – Accomplishments

“The day I stop giving is the day I stop receiving. The day I stop learning is the day I stop growing. You miss 100 percent of the shots you don’t take.”

IN ONE WORD, DESCRIBE THE SINGLE MOST IMPORTANT CHARACTERISTIC A LEADER MUST POSSESS:

Decisive

– WAY N E G R E T Z K Y

Troon North Golf Club, Scottsdale

Commercial Executive Magazine – 10th Anniversary Fall Forum 2018 LEADERSHIP DEFINED

Where Will You Live Life’s Next Journey?

Come discover world-class amenities, impressive homes, countless social opportunities for active adults and an ideal location to live life inspired. A Robson Resort Community is the place for all life has to offer.

PHOENIX AREA

PebbleCreek • Robson Ranch • Sun Lakes (Sold Out) TUCSON AREA

SaddleBrooke Ranch • SaddleBrooke • The Preserve • Quail Creek DALLAS/FORT WORTH AREA

Robson Ranch

Robson.com • 800.732.9949 Model Homes Open Daily 9am To 6pm • $190’s - Over $1 Million The housing at any Robson Resort Community™ is intended for occupancy by at least one person 55 years of age or older per dwelling unit, although the occupants of a limited number of dwelling units may be younger. One person must be at least 40 years old in each unit. No one in permanent residence under 19 years of age. Homes at PebbleCreek are offered and sold by PebbleCreek Properties Limited Partnership, owner/agent. PebbleCreek Construction Company, general contractor, ROC 190149. Homes at SaddleBrooke are offered and sold by SaddleBrooke Development Company, owner/agent. SaddleBrooke Construction Company, general contractor, ROC 192901. Homes at Robson Ranch are offered and sold by Sun Lakes-Casa Grande Development, LLC, owner/agent. Robson Ranch Arizona Construction Company, general contractor, ROC 192584. Homes at Quail Creek are offered and sold by Robson Ranch Quail Creek, LLC, owner/agent. Robson Ranch Arizona Construction Company, general contractor, ROC 192584. Homes at SaddleBrooke Ranch are offered and sold by SaddleBrooke Development Company, broker for Robson Ranch Mountains LLC, owner. Robson Ranch Arizona Construction Company, general contractor, ROC 192584. No offer for sale or lease may be made or accepted prior to buyer’s receipt of an Arizona subdivision public report. A public report is available on the state real estate department’s website. Please review the CC&R’s for the Villas regarding details for home exterior, landscaping & common areas maintenance. Restaurants and golf courses currently are open to the public. The golf courses, pro shops and practice facilities at Robson Ranch, SaddleBrooke, The Preserve and SaddleBrooke Ranch will be owned by the developers or their assignee(s). Availability of these facilities for use by owners of interests in any of the developments is at the pleasure of the owners of the facilities. All photos/pictorials are artist’s conception. Information is subject to change without notice. This shall not constitute an offer in any state where registration is required or if in violation of law. © 2018 Robson Communities®, Inc. All rights reserved.

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Michael Pollack F O U N D E R & P R E S I D E N T, M I C H A E L A . P O L L AC K R E A L E S TAT E I N V E S T M E N T S

ichael Pollack has been involved in the real estate industry for more than 45 years. He founded Michael A. Pollack Real Estate Investments in 1973 and has grown his personal and professional brand into the iconic Arizona real estate firm it is today. Pollack’s roots are in real estate. His father, Robert Pollack, and grandfather, Sidney Gambord, owned Pollack & Gambord Development Company in San Jose, California. As a child, Pollack remembers the first time his father took him to a jobsite. “They were digging a pool and I had to see how it was done, so I cut across the muddy courtyard and got stuck in the mud,” Pollack recalls. “My dad was my biggest hero that day because he pulled me out of the mud.” Pollack worked for the family construction business while in junior high and high school before buying his first piece of property at age 18. Pollack earned his general contractors license and began renovating, designing, and building multifamily projects in California and Texas. By 1985, Pollack had been involved in more than 10,000 residential units and he was then ready to move onto his next venture. After buying a 23,625 SF shopping center in Mesa, he decided to expand his redevelopment company, relocating his primary office to the East Valley.

“Redeveloping properties has its own reward because of the positive difference we make in the communities where we work.” – M I C H A E L P O L L A C K 16

Pollack began purchasing projects ready for redevelopment in the Phoenix market and quickly made a name for himself as “the renovation king of distressed properties.” He turned run-down shopping centers into vibrant community spaces and discovered his true passion in the process. “Redeveloping commercial, multifamily, and residential properties has its own reward because of the positive difference we make in the communities where we work,” says Pollack. Giving back to the community is something for which Pollack advocates, both personally and professionally. Pollack has been on the Economic Development Board for the City of Chandler and the Mayor’s Four Corner Economic Board. He has also been involved in numerous philanthropic organizations. They include: Goodwill Industries, Banner Health Foundation, City of Hope, Boys & Girls Clubs, Chandler Regional Hospital, Special Olympics, and Chandler Education Foundation, to name a few. Amassing more than 10 million square feet of real estate projects across Arizona, California, and Nevada, Pollack’s company has mastered the changing market cycles. Pollack credits this to constantly assessing the market and making informed decisions. “When the storm hits, and it will, you have to be able to cover your assets,” he says. Aside from real estate, Pollack has many eclectic hobbies including music and collecting advertising memorabilia for his museum, which was awarded the “Largest Collection of Advertising Statues” by Guinness World Records. His band, “Corporate Affair,” has been playing together since 2003 and has played for many philanthropic events in the Valley. Some of his handpicked figures and vintage collectables from his private museum rotate through Pollack Tempe Cinemas, a discount community movie theater which stands as a reflection to his deep sense of pride in the community.

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C areer H ighlights Pollack has received numerous awards, proclamations, and recognitions from mayors, governors, state leaders, U.S. Senators and Representatives.

Pollack has been named “Real Estate Entrepreneur of the Year” by the American Design Institute, “Builder Developer of the Year” by the American Multihousing Association and was named “Outstanding Young Man of America” twice.

In a 2002 proclamation from the City of Chandler, Pollack was recognized for redeveloping and revitalizing more than 400,000 SF of shopping space in Chandler, as well as for his work with scores of community organizations.

Michael A. Pollack Real Estate Investments accounts for over 100 commercial, industrial, professional, and residential locations.

WHOSE WORK DO YOU ADMIRE? Individuals who have unselfishly shaped the world including politicians, journalists, artists, musicians, physicians, and scientists that have done so for the betterment of society would be my first choices.

WHAT’S THE MOST IMPORTANT LESSON YOU LEARNED FROM YOUR FATHER? I rode horses as a kid and my father would always say, “If you fall off the horse you have to get back up.” I took that to understand his underlying meaning in life, “Never give up in life no matter how hard you fall. If you fall off then you need to get back up again.” He taught me patience, hard work and to never give up, no matter what the situation is. A man shows courage in his getting back up, his strength in his courage to do so, and his infallible character in his doing it more than once in a lifetime.

IN ONE WORD, DESCRIBE THE SINGLE MOST IMPORTANT CHARACTERISTIC A LEADER MUST POSSESS:

Integrity

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Conley Wolfswinkel C O N S U LTA N T, W H O L D I N G S

Tenacious. Powerful. Resourceful. Each word succinctly describes Conley Wolfswinkel, Consultant of W Holdings.

olfswinkel has overcome controversy, surviving the ups and downs of the real estate market. And throughout his journey, remarkably he has landed on top.

Wolfswinkel learned the business through early encounters with local farmers, developers, and home builders when he was a teenager. In his early 20s, he partnered with his brother, Clifford, and formed White Fence Farms with an initial investment of $25,000 from Clifford. The company was worth $100 million by the time Conley ventured out of that business and into the development realm.

“Conley has the superpower to see 20 years into the future. He is an absolute genius in envisioning how a piece of land can be developed.” - F O R M E R A R I Z O N A G OV E R N O R F I F E S Y M I N G TO N

In the 1980s, Wolfswinkel quickly became a leading developer in Arizona real estate. One of his notable projects was the Western Savings and Loan building lined with blue neon lights (now the Bank of America building in Mesa). Wolfswinkel has leadership qualities that few in the industry possess. “Conley has the superpower to see 20 years into the future. He is an absolute genius in envisioning how a piece of land can be developed,” says longtime developer and former Arizona Governor Fife Symington.

Wolfswinkel has weathered the shifting real estate market. He has also withstood the infamous Charles Keating controversy and the savings and loan fiasco. He emerged again in the late 1990s as a consultant to his children, who followed in his real estate path. During this time, Wolfswinkel restructured many parts of the East Valley, advising on several developments in Pinal County. Those who do business with Wolfswinkel swear by his fearless leadership. “As long as I’ve known Conley, I’ve always known his favorite phrase to be, ‘I don’t give options — I take them,’” says Nate Nathan, President and Designated Broker of Nathan & Associates, Inc. says. That boldness has certainly worked out well for Wolfswinkel as he continues to be a major stakeholder in Phoenix residential and commercial real estate.

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Two of his master-planned communities, Stone Canyon in Tucson, and Pine Canyon in Flagstaff, have been nationally recognized.

Wolfswinkel grew his first company’s value to more than $100 million from an initial investment of $25,000. He continues to be an advisor for major developments in the East Valley, as well as other substantial developments in the South and West Valley markets. GREATEST EXTRAVAGANCE: I have had large estates, luxury cars, beach houses, planes and boats, and none of them have brought me the same pleasure as owning a piece of farmland. Spending time touring the farms gives me comfort and allows me to catch up on my thinking. It’s a way for me to deal with all of the challenges I am confronted with, including both personally and professionally. So other than spending time with my family and all my new grandchildren – which is priceless; owning a piece of farmland is an extravagance that I cherish, and the peace and serenity I feel is invaluable.

IN ONE WORD, DESCRIBE THE SINGLE MOST IMPORTANT CHARACTERISTIC A LEADER MUST POSSESS:

Perseverance

BEST BUSINESS ADVICE YOU HAVE EVER RECEIVED: Always have options for closing a deal. My first land deal was with my older brother, Clifford, who was my hero and mentor. He let me raise $115,000 to buy 65 acres. I raised the money from two very respectable people who I thought were rock solid to fund the closing. However, two days before closing, they backed out of the deal. Nonetheless, my brother had a back-up plan and hustled and successfully closed the deal. In doing so he taught me one of my most valuable lessons in my life: Never, ever have only one option to close a transaction. Always have several back-up options to close a deal, and count on yourself to get it done. 19

Ultimately It Is My Job To Make You Look Good. David J. Itzkowitz Esq. National Commercial Services

A successful commercial transaction isnâ&#x20AC;&#x2122;t just about getting the deal closed, itâ&#x20AC;&#x2122;s about the execution of the entire process in a timely and efficient manner.

Office (602) 643-4004 Cell (602) 625-5250 david.itzkowitz@securitytitle.com www.securitytitle.com 4722 N. 24th Street, Suite 200 Phoenix Az 85016

Our goal is to identify and address any and all issues early in the process so that your transaction closes without delays or unnecessary expense. My 25+ years of experience as a real estate transactions attorney together with my knowledge of the underwriting process provides me the tools to be creative when necessary to get the deal closed. All of this ultimately translates into appreciable economic benefits to you and your clients.

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Jim Pederson FOUNDER & CHAIRMAN, PEDERSON GROUP

A native Arizonan, Jim Pederson founded Pederson Group in 1983 and built the company into the real estate success it is today.

ederson graduated from the University of Arizona and found politics to be his calling. Starting his career as an administrative assistant for Phoenix Mayor Milt Graham, Pederson campaigned with Sam Grossman, a developer who was pursuing a Senate seat.

Grossman lost, but offered Pederson a position at his real estate firm. Pederson’s experience in real estate development earned him the title of vice president of the Grossman Company and then vice president of operations for Westcor, Inc. In 1983, Pederson started his own firm, Pederson Group. Initially, the company launched with property management contracts and brokerage listings. Since then, Pederson Group has developed countless land and real estate achievements by converting empty lots into prosperous retail centers, bringing much-needed life to underdeveloped areas of the Valley and integrating retail projects into upscale master-planned residential communities. Pederson Group has developed some of the most successful retail centers in the Southwest. They include: Hayden Peak Crossing, The Trailhead, Saddlebrooke Marketplace, Stetson Village, Chaparral Plaza, Ancala Village Shopping Center, Promenade, and Legacy Village. “The projects that we take particular pride in are The Promenade at Frank Lloyd Wright and Scottsdale Road in Scottsdale and Legacy Village at 24th Street and Baseline Road in South Phoenix,” says Pederson. “The projects made substantial contributions to their neighborhoods and their communities and will always serve as a source of pride for our company.” Pederson’s company has withstood the erratic cycles of the Valley real estate market. During the height of the Phoenix real estate downturn in 1991, Pederson Group was in the early stages of developing Ancala Village Shopping Center. Pederson Group secured a construction loan for the shopping center. It was the only construction loan approved in Arizona that year. As with many success stories, Pederson Group has thrived by hiring people with the same leadership qualities as Pederson. Pederson Group President Jeff Manelis has been with the company nearly 30 years and is Pederson’s right-hand man. In addition to Manelis, Pederson also brought in his son, James Pederson Jr., as Vice President and Senior Leasing Agent for the firm’s retail centers. A local leader with poise and influence, Pederson continues to lead his company. As the Valley continues to grow, Pederson Group grows with it, mirroring the retail market’s evolving characteristics.

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C areer H ighlights This year Pederson Group celebrates 35 years of developing shopping centers in Arizona.

With nearly 30 retail properties totaling more than 5 MSF, Pederson Group provides multiple leasing opportunities for national, regional, and local retailers.

In 2002, Jim Pederson was recognized as one of the most influential people in Arizona real estate development by AZ Business Magazine.

In 2001, Jim Pederson was listed as a finalist in the Entrepreneur of the Year Awards by Ernst & Young.

IN ONE WORD, DESCRIBE THE SINGLE MOST IMPORTANT CHARACTERISTIC A LEADER MUST POSSESS:

Trust

GREATEST EXTRAVAGANCE:

WHAT KEEPS YOU UP AT NIGHT?

Good restaurants & my “get-away” homes

Predevelopment expenses

“I f

your actions inspire others to dream more , learn more , do more , and become more , you are a leader ” – JOHN QUINCY ADAMS

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John Graham P R E S I D E N T & C E O, S U N B E LT H O L D I N G S , I N C .

orn and raised in Phoenix, Graham attended Brophy College Preparatory. He was introduced to commercial real estate by his father, who had a successful career at Coldwell Banker. “I never really considered any other business,” Graham recalls. “I always enjoyed his friends and was intrigued with the business.” During his college years at Stanford, Graham spent his summers working for Coldwell Banker. After graduating in 1979, he started his career in asset management. After two years at Coldwell Banker, Graham made the move to development and joined The Koll Company. “I knew right away that development was where I wanted to be,” he says. In 1982, Graham was introduced to Tor Andenaes, an international investor who needed someone to manage assets he had acquired in Phoenix and Scottsdale. This partnership launched a long-term relationship with Andenaes, who had founded Sunbelt Holdings in 1979 and was seeking a leader for the company. Under Graham’s direction, Sunbelt Holdings has become a dominant

John Graham has taken Sunbelt Holdings to impressive heights, leading through example with compassion and humility. force in both community involvement and real estate development. It has focused on adding meaningful value to real estate opportunities across many sectors, from land and residential to office and industrial. Sunbelt Holdings’ long-standing relationships with property owners, development partners, and investors are the precursors to its success. Over the years, Sunbelt Holdings has added extensively to its portfolio, developing several iconic golf courses and master-planned communities. They include the award-winning Blackstone Country Club, Vistancia, McDowell Mountain Ranch, Johnson Ranch, The Legacy Golf Resort, Power Ranch, Superstition Foothills, Sonoran Foothills, Arizona Traditions, and Surprise Farms. The portfolio also includes the successful mixed-use

commercial centers, including Marina Heights, PV|303 and Phoenix Gateway Center. While Sunbelt Holdings is primarily focused on land projects in Arizona, it has also ventured into several properties in Texas and California. Sunbelt Holdings has also weathered the ups and downs of the market. Graham’s advice in getting past the hard times is simple: “Keep perspective of what you can and cannot control.” Throughout his nearly 40-year career, Graham has never lost sight of his deeprooted compassion and philanthropy. “The best way to feel better about yourself is by doing things for others,” says Graham. Giving back to the community is something he learned from his parents and from his Brophy education, a lesson that has made him one of the most recognizable executives in the Valley’s philanthropic circles. “I measure success through the happiness of my family, the things I’m able to do in our community to make it a better place, and the reputation of our company,” says Graham.

Cover

STORY

C areer H ighlights In 2017, Sunbelt Holdings won Best of NAIOP awards for Marina Heights and PV|303. In 2011, Graham was awarded with the Best of NAIOP Lifetime Achievement/Leader of the Year Award. In partnership with Ryan Companies US Inc., Sunbelt Holdings co-developed Marina Heights, the largest office project and commercial transaction in Arizona history. Current and past community affiliations include but not limited to... • ONE Community • ASU Foundation • Banner Health Foundation • Brophy College Preparatory • Greater Phoenix Economic Council • Greater Phoenix Leadership

• Phoenix Symphony Association • Teach For America Phoenix • The Nature Conservancy • Urban Land Institute • Valley of the Sun United Way • Valley Forward Association

• Paradise Valley Country Club • Wells Fargo Community Advisory Board • PGA Southwest Section

FAVORITE QUOTE: “It is better to be kind than it is to be right.”

IN ONE WORD, DESCRIBE THE SINGLE MOST IMPORTANT CHARACTERISTIC A LEADER MUST POSSESS:

Humility

WHAT’S THE MOST IMPORTANT LESSON YOU LEARNED FROM YOUR FATHER? Spending time with younger people interested in the real estate business is rewarding and appreciated. HOW DO YOU DEFINE “MAKING IT”? Happiness at home, with friends, and at the office.

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Broker of the

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It’s no secret that the retail market has fluctuated in recent years. While some view it as wavering, others see it as a sector that is constantly evolving. Presented by Willmeng Construction

BROKER

of the

hoenix is on the cusp of a transformation: data for the second quarter shows vacancy rates near a cycle low at 7.1 percent and a robust pipeline with more than 1 million square feet under construction. “Pessimism surrounding brick-and-mortar retail by the press is overblown and many good properties have been negatively impacted,” says Patrick Dempsey, Managing Director, Holliday Fenoglio Fowler, L.P. (HFF). “Retail is simply continuing to evolve.”

MONTH Starting Points After a stellar 22-year run at Lee & Associates, Dempsey transitioned to HFF in July 2018 joining Jeremy Womack, Local Senior Managing Director, and his team. “It was a tough decision because my partners at Lee & Associates were like family,” he says, “but, I realized that HFF offered a better long-term platform for capital markets brokerage.” According to the HFF website, the New York Stock Exchange listed the firm as one of the largest and most successful commercial real estate capital intermediaries in the country with nearly 18,000 transactions totaling $450 billion in volume since 1998. /// With the addition of Dempsey, HFF has expanded its operational excellence. During his tenure at Lee & Associates, the retail veteran has closed deals totaling more than 30 million square feet for more than $4.7 billion. “My career has focused on helping clients buy and sell retail investment properties,” he says.

Broker of the

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Broker of the

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“The success of retail is measurable based upon scientific analysis and tenant performance data. This is true of all retail property types: power centers, regional malls, neighborhood shopping centers, and street retail.”

Background

HFF

A transplant from St. Louis, Missouri, Dempsey brings an exceptional insight to HFF’s Dempsey called Phoenix home in the already diverse and robust commercial capital mid-1990s after attending the University markets team. “I will be managing the retail of Arizona. “My first job was working product line of investment brokerage for Greater for the commercial mortgage banking Phoenix and the Arizona market,” he says. “This firm Pacific Southwest Realty Services position is focused on investment advisory for under the direction of Dan Mulvihill,” existing retail property owners and investors seeking Dempsey recalls. From there new opportunities in Arizona.” /// Operating in the U.S. Dempsey migrated to commercial and Western Europe in 26 offices with approximately real estate (CRE) brokerage at 982 associates, according to the company’s annual Grubb & Ellis for several years report, HFF has advised on approximately $96.1 billion and then to his tremendous run of completed commercial real estate transactions in 2017, at Lee & Associates. “My former recording revenues and net income of $609.5 million and partner Jan Fincham and I $95 million. /// HFF prides itself on offering a unique menu worked extremely well together of financial services for clients as a facilitator of capital over those years,” he says. across a myriad of CRE sectors. “This is an exceptional firm that places the client first and foremost,” he says.

Broker of the

MONTH

All Things Retail Retail has been Dempsey’s calling since first entering the business. He says he still finds great satisfaction in working through deals with clients. “The success of retail is measurable based upon scientific analysis and tenant performance data,” he says. “This is true of all retail property types: power centers, regional malls, neighborhood shopping centers, and street retail.” /// The metrics are a critical analytical factor for investors, particularly as online sales continue to increase their presence in the retail universe. E-commerce sales in the second quarter of 2018 accounted for 9.6 percent of total sales as compared with approximately 4 percent in 2009, according to the U.S. Department of Commerce. “We are seeing retailers adapt and are now merging their brick and mortar presences with e-commerce offerings,” he says. /// Dempsey also notes two transformational trends molding the Metro Phoenix landscape. “Experiential retail is a powerful dynamic in the marketplace, good operators are bringing people to properties for multiple complimentary venues,” he says. “The second component is a continued focus on infill development, rather than the traditional follow the rooftops growth model.” /// From a client point of view, Dempsey approaches retail from a very straightforward perspective. “Every investor is seeking the best available retail property and location, but value and opportunity can mean something different for each investor” he says. “Our west coast retail team at HFF is connected in every major Western U.S. market, collaborating on the most aggressive investors and hottest opportunities in the country and the capital driving real estate transactions today.”

Mentors

Personal

Dempsey points to several influential figures on his career journey including Mulvihill, Fincham, and his father-in-law, Harry Collins. “An iconic developer in California, Harry made me realize that CRE was fun, but it requires patience,” says Dempsey. “I will always hold Jan and my partners at Lee & Associates with high regard.”

Away from the office, Dempsey’s passion is family. “My wife of 31 years is amazing, as are our six children,” he says. “Helping our kids become happy and productive members of the community is a priority.” When asked if any of his children followed his footsteps into CRE, he mentions one of those six, Jake, is an up-and-comer at HFF, working as an analyst in the company’s San Francisco office. /// Dempsey also fills his time with an enthusiasm for golf, fitness, skiing, grilling, politics, and reading. “I just finished a book, Prairie Fires by Laura Ingalls Wilder, about the travails of the early Western pioneers,” he says. “Interestingly, the book has a real estate component addressing the early claim staking process.”

Conclusion There are many opportunities for Dempsey as he begins his role at HFF. “The company has a broad range of CRE product lines in every major US city, as well as capital strategies for our investors,” he says. “HFF provides the customer with the ‘best-team-on-the-field’ approach to any real estate assignment.”

Because differences matter.

Women in

POWER

omen in Power is a tribute to all women in commercial real estate who have withstood the test of time in a maledominated industry. The four women featured in the following pages have managed to break the conventional ways of the past by climbing the ladder of success, becoming CEOs, attorneys, presidents, and managing brokers. These outstanding women range from ambitious newcomers to influential veterans. Commercial Executive Magazine is proud to share their stories, triumphs, visions, and secrets to success.

Women in

L to R:

POWER

TIFFANY SHARP CAROLYN OBERHOLTZER TRISHA TALBOT & VICKI ETHERTON

Women in

POWER

PRESIDENT L ANDMARK TITLE ASSURANCE AGENCY

itle insurance has been a big part of Vicki Etherton’s world since she was a young adult. “During high school, I started working part-time after school at Stewart Title,” says Etherton. “My mother was my first boss, and I did everything from answering phones and making coffee to filing and delivering commission checks to realtors. It was a great introduction to the business and how it worked.”

What words do you live by? VE: I would rather ask for

forgiveness than ask for permission.

Think back to when you first started your career at Stewart Title in Tucson. What advice would you give yourself? VE: I would tell myself not to

worry so much. I now know, it always works out one way or another.

STAR TI NG POI NTS Etherton’s professional trajectory has taken her

from those early days at Stewart to president at Landmark Assurance Agency, running its operations. “In addition to our Esplanade office, we have operations in the Southeast Valley, and North Scottsdale at Kierland,” she says. “Landmark offers a full line of commercial and residential title and escrow services.”

T HE J OUR NEY The evolution of Etherton’s success can be traced to lessons learned from her parents. “They were both hardworking and managed successful businesses, which served as a great example to me and my sisters,” she says. Etherton’s biggest break, though, stemmed from a relationship she formed shortly after entering the industry. “A few years into my career, I had the good fortune of meeting and working with Pam Tighe, a premier commercial escrow officer in Tucson,” Etherton recalls. “Pam became my friend and mentor as I transitioned from residential escrow to commercial, which was my first ‘aha’ moment. She taught me the ins and outs of commercial title and escrow, which is quite different from residential.”

What is your morning routine? VE: I like to start with a cup of

my favorite coffee (Mexicali by Aruckle, from Tucson) and watch the morning sunlight on Piestewa Peak, walk my puppy, Finley, and then tackle the day.

L E A PS Etherton and Tighe worked together at Lawyers Title Insurance Company for two decades, growing the firm’s commercial business in Tucson. “My second big advance was the decision to relocate to Phoenix in 2001 and expand the Lawyers brand footprint,” she says. “In both cases, I left successful, established situations where I had name recognition and I had to start over. It is easy to stay where we are and remain comfortable, but when we push beyond our comfort zone and challenge ourselves, it is empowering.”

Women in

POWER

DYNAMICS

Establishing a distinguished name in commercial real estate is a challenge for any professional. For a woman, the obstacles can seem insurmountable in a largely-dominated male industry. “Commercial real estate, especially in title and escrow, has made great strides since the 1970s in developing more woman leaders, but we need to continue to do so,” she says. “I am very grateful to be a part of that. I have worked with and hired some incredible women that are managers and executives on my team.”

L A N D M AR K

In 2013, Etherton and Tighe reunited with a merger of the Phoenix and Tucson offices under the Landmark umbrella. “We had different strengths that complemented each other,” says Etherton. “We forged a great partnership over many decades. Pam is now retired, but I often think, ‘how would Pam handle this?’” /// Landmark’s position in the marketplace continues to strengthen with large-scale transactions including the sale of the RitzCarlton, Dove Mountain Resort; the 1,100acre Bella Vista Farms in Pinal County, and Block 23, a highly anticipated mixed-use project in downtown Phoenix, targeted for completion in 2019. /// “My mentors along the way have taught me that to succeed in a service industry, it takes more than being capable and able to get the job done for the client,” Etherton says. “It is about building strong relationships and doing things better than others, so clients know that they can count on you.”

LES S O NS

Etherton’s success rests on core fundamentals, which she has depended on throughout her career. “I always keep myself open and look for opportunities; I am willing to take risks. At the same time, I am flexible and able to adapt to change as situations unfold,” she says. “If you haven’t failed, you haven’t tried hard enough. Failing makes me appreciate my successes more.”

CO N CL U SI O N

The future is full of promise for Landmark Title, as Etherton and her team advance their operations and gain market share. While she is proud of the company’s growth, Etherton says she hopes she is also remembered for the impact she’s had on others. “I hope my legacy is defined by the opportunities for success I helped foster in my staff and the service we as a team provided our clients,” she says. “Personally, and professionally it is about the wonderful relationships I’ve built with the many people in my life. That’s what really matters.”

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LEADERS IN REAL ESTATE SOLUTIONS CONGRATS TRISHA TALBOT

Recognized as a CRE Woman in Power! See her story on page 40.

MEET BRETT POLACHEK

Read his view on the Multifamily market on page 70.

Women in

POWER

MANAGING DIRECTOR NEWMARK KNIGHT FRANK

fter a decade at GPE Commercial Advisors, Trisha Talbot found a new home at Newmark Knight Frank (NKF), a global commercial real estate advisory firm. “After almost five years with the firm, there is still so much opportunity here,” says Talbot. “This has been an incredible platform with a substantive breadth and depth of offerings for clients. Coming to NKF has enhanced and enriched my business to a new level.”

STA R T IN G P O I NT S A managing director at NKF, Talbot holds the prestigious title of Certified Commercial Investment Member (CCIM). She specializes in healthcare real estate brokerage, capital markets, and leasing advisory. “Healthcare (medical office) commercial real estate is constantly changing, and our team crafts strategic solutions for our clients to maximize value,” she says.

BA CKG RO U ND After graduating with a B.A. from the University of Massachusetts-Amherst, Talbot earned her MBA from the W.P. Carey School of Business at Arizona State University. “I entered the industry as I was completing my degree,” she says. “I conducted a market research project for a medical office developer, which turned into a leasing position.” She does attribute her success to great tutelage along the way.

Women in

POWER

PA R T N ERS HI P

BAL ANCE

Talbot has recorded great achievements in the healthcare real estate space including: Top Office Producer, NKF Phoenix, 2015, 2016, and 2017; Greatest Number of Transactions, NKF Phoenix, 2014, 2015 and 2016 and Top Producer, NKF, 2015. Prior to Newmark, she served as senior vice president at GPE, where she launched the company’s Healthcare Investment Group. “I share all of the accomplishments with my team,” she says. “It truly takes a team to be a success in this business.” /// At NKF, Talbot has found a great partner in Kathleen Morgan, a managing director at NKF. “We have been working together for 14 years,” Talbot says. “She is an incredible friend and business professional.”

A wife and mother of two children, Talbot has learned to craft a work/life balance. It allows her to thrive at home and at work. “I have incredible support from family including my parents and wonderful husband, Sergio,” she says. “There is certainly a lot of planning and preparation to make everything work.” /// When not negotiating complex deals, Talbot can be found on the ball fields cheering her son and daughter on to victory. “My passion is to watch them play and win; it is my competitive nature,” she says.

“My mantra has always been hard work is not gender specific. “Clients value my personality, capabilities, perseverance, and professionalism.” – T R I S H A TA L B O T

CHOI CE Despite the challenges facing females in the industry, Talbot is encouraged by what she sees in the progression of the industry and in business overall. “Women do not have to choose between having a career and having a family,” she says. “Women are now empowered to create their career path.” /// For those entering the field of commercial real estate, Talbot recommends possessing a lot of persistence. “Treat all challenges and outcomes as learning opportunities,” she says.

APP RO A CH

CONCLUS I ON

Succeeding in the industry relies on attitude and belief. For women in the industry, the task can be daunting, given the decades-long male-dominated culture. “My mantra has always been hard work is not gender specific,” she says. “Clients value my personality, capabilities, perseverance, and professionalism.”

Over the next few years, Talbot plans to build her team and position the NKF brand as the premier healthcare (medical office) real estate firm in the Valley. “We have tremendous resources and an extremely talented network of expert professionals to serve our clients,” she says.

What words do you live by? TT: Have integrity and be intentional. What advice would you give to someone new in the industry? TT: Absorb as much information as possible. Enjoy your success and learn from your failures. What is your morning routine? TT: I start with a workout, then have a great breakfast, and hug and kiss my family. When I get to the office, I work on the biggest tasks of the day and get them done before noon.

Women in

POWER

PA R T N E R BERGIN, FRAKES, SMALLEY & OBERHOLTZER

According to The New York Times, women are 50.3 percent of current law school graduates, yet they still make up just under 35 percent of lawyers at law firms. Additionally, their share of equity partnerships — where the highest compensation and leadership positions are lodged — remains at 20 percent and has not changed in recent years. /// Carolyn Oberholtzer, partner at Bergin, Frakes, Smalley & Oberholtzer, is part of a growing tide of female attorneys looking to change this dynamic. /// “The most impactful part of my business journey was starting a law firm,” she says. “My partners and I just celebrated our fifth anniversary, and I’m so proud of what we have become, and the work we have been involved with.”

S TAR TI NG POI NTS

Bergin, Frakes, Smalley & Oberholtzer specializes in real estate and development, commercial transactions, and civil litigation. Oberholtzer, a Tucson native, graduated with her J.D. from Arizona State University College of Law, and earned Pedrick Scholar honors. She practices in the fields of land use and municipal law, and handles zoning, due diligence, development agreements and regulatory issues within municipalities and counties. /// “My practice now involves working with many cities and counties across the state on behalf of real estate clients seeking to entitle projects,” she says.

Women in

POWER

BA CK G RO U ND

A third-generation Arizonan, Oberholtzer began her career at a boutique law firm serving as the assistant city attorney for two growing cities: Avondale and Fountain Hills. “I became actively engaged with the planning and development departments of both, and quickly saw the importance that the role of government plays in the development process.” /// Oberholtzer had an early inkling that commercial real estate might be a calling, even as she was unsure of her role. “My mother worked in real estate,” she recalls. “I was always drawn to development as a career, but did not set out to become a zoning lawyer.”

BERG IN , F R AK E S, S MA L L E Y & OBER HOLTZ ER

With a staff of 13 Bergin, Frakes, Smalley & Oberholtzer continues to grow its brand, handling some of the state’s most complex and large-scale developments. “We have a great team. I discovered that what I really wanted to do was help development applicants navigate the regulatory process that precedes moving dirt,” she says.

What words do you live by? CO: The Serenity Prayer is my reminder that I need to focus on what I can change and understand what I cannot. It’s always in the back of my mind.

Think back to when you first started your career. What advice would you give yourself? CO: I would tell my younger self that the hard work is going to pay off.

What is your morning routine? CO: I’m up with the birds every

morning by 5 a.m. and enjoy coffee in a quiet house before everyone else is up.

M ENTOR S In nearly every industry, a mentor is a critical component to the growth trajectory of any professional. The law is no exception; and for Oberholtzer, her experiences have propelled her forward. “I have been so fortunate to have many great bosses, both men and women, that certainly have shaped the attorney that I am today,” she says. /// However, Oberholtzer saves the highest praise for her mother. “She is the person that had the most impact on me both as a leader and a real estate professional,” Oberholtzer says. “I watched as she gained clients through relationships, negotiated contracts, and dealt with the ‘other side.’ Looking back to this time in my youth, I can see very clearly that her career path was shaping me for mine.”

“ FIND PEOPLE MOTIVATED TO SOLVE AN ISSUE, AND IT WILL BE DONE.” - C A R O LY N O B E R H O L T Z E R

PROFESSIONAL TRANSFORMATION Powerful voices such as the National Association of Women Lawyers, Women in Law Empowerment Forum, and Arizona Women Lawyers Association are working hard to change the dynamic of a male dominant legal profession, much as exists in commercial real estate. “I would not be where I am today without the mentors and leaders that shaped me. I try to make working with young real estate professionals, both male and female, a priority,” she says. “I have participated in several mentorship programs, and this year, I am looking forward to serving as a mentor in the Urban Land Institute’s Women’s Leadership Initiative.”

CONCLUS I ON

Oberholzer’s approach to solving complex legal zoning issues is one that aligns extremely well with the need for the legal profession and commercial real estate to adapt and empower female professionals. “I am constantly reminding myself that where there is a will, there is a way,” she says. “Find people motivated to solve an issue, and it will be done.”

Women in

POWER

P R I N C I PA L & C E O SHARP CONSTRUCTION

FOR TIFFANY SHARP, PRINCIPAL AND CEO OF SHARP CONSTRUCTION, BUILDING FROM THE GROUND UP HAS DUAL MEANINGS. “Along with my business partner, Jeff Pinter (also principal and CFO), we started the company from scratch in 2017, and have grown the operation from an idea to a successful firm in one year.” A commercial general contractor, Sharp works in multiple commercial real estate sectors including office, hospitality, retail, industrial, and restaurant.

BACK G RO U N D A native of Iowa, Sharp attended Arizona State University and graduated with a Masters of Science in construction management. However, her passion for design and building was forged much earlier. “I took my first drafting class in sixth grade. I fell in love with the drafting table, the 3D imagery, and the conceptual ideas of designing something that could soon be built and become a reality,” she says. /// Eyeing a degree in architecture, Sharp found herself pursuing a different calling in her first year of college. “I had an architectural design disagreement with my professor regarding the structural integrity of a project. At that moment, I decided that I didn’t need someone to teach me how to design; I needed someone to teach me how to build,” she says. 44

SHAR P C O N S TR UCTI ON After successful stints at Intel and Platinum Companies, Sharp turned her attention toward building her own legacy through an entrepreneurial venture in the commercial construction sphere. “Jeff and I both had been in the industry for some time but were ready to embark on something we could create for ourselves,” she says. “Sharp Construction began with a few phone calls and two extremely motivated people.” /// The duo focused on tenant improvement projects with positive results. “We’ve successfully started the company leaning on the success of tenant improvement projects while our ground-up projects were in design,” she says. “These projects sustain the company while we continue to prepare for the larger ground-up projects coming up in 2019 and 2020.”

GUI DANCE

Launching a venture always brings its share of surprises and challenges. It requires leaders to adapt and rely on the lessonsDANCE garnered from advisors GUI Launching a and colleagues. mentors in the venture always “My brings its share of industry have been strong males; surprises and all challenges. It requires I intentionally positioned to leaders to adapt and relymyself on the learn from the best,” she advisors says. lessons garnered from and colleagues. “My mentors have all been strong industry leaders; I intentionally positioned myself to learn from the AS R ATI ONAL best,”PI Sharp says. “Sharp Construction is entirely built upon the idea of Acknowledging that there are few consistent, continuous improvement.” women in commercial construction, Sharp sees tremendous potential for the future. “I didn’t join the construction industry thinking that I AS PI R ATI ONAL would be one of only a few women,” she says. “I hope to impact the are industry Acknowledging that there few by proving to women that it’s a field women in commercial construction, where wesees can thrive and be successful. Sharp tremendous potential I hope break down the fears for thetofuture. “I didn’t join and the stereotypes women thinking in construction constructionforindustry that I and collaborate colleges and would be one ofwith onlythe a few women,” trade schools encourage more she says. “I hope to impact the industry women to join.” by proving to women that it’s a field where we can thrive and be successful. I hope to break down fears and stereotypes for women in construction and collaborate with the colleges and trade schools to encourage more women to join the industry.” © Copyright 2018 by MP Media, LLC

Women in

POWER

HELPI NG HAND Even the most determined and driven business owners need support. That comes from her husband Clinton, whom she considers a critical resource. “Being a career mom is no easy task. He has been a massive support system and partner. We share the daily obligations of the home so that we can both chase our dreams professionally,” she says. /// Pinter has also been instrumental in the success of the business. “Jeff has believed in my capabilities from the very beginning,” she says. “He manages the financials of the company. He also helps in other areas of the business that could use support, such as estimating, bidding, and pre-construction. FUTUR E The future holds enormous promise

for Sharp Construction based on an aggressive schedule. “Our total win/loss ratio thus far is 30 percent. We’ve tripled our annual budget for our first year in business already as of September (2018) with plans to potentially quadruple by year end,” she says. “We’re constantly striving to do everything better by developing new processes, bringing in new resources, trying new technology, and valuing our lessons learned. We’re not afraid of change.”

CONCLUS I ON Across the Valley, Sharp

Construction signs are popping up at projects from 3,000 SF to 500,000 SF. “My high-level goals are to build an amazing brand, build an ‘A team,’ and build a successful, prosperous business,” she says.

What words do you live by? TS: Live in the now. Balancing work and life is a skill I haven’t mastered yet, but it’s a work in progress. What advice would you give to someone new in the industry? TS: Network. Phoenix’s CRE industry is built upon relationships. The number one strategy for building a name for yourself in this industry is to actually build a name for yourself. What is your morning routine? TS: My mornings can be a little hectic. I have a 4-year-old daughter and an 11-year-old son — both of whom aren’t happy morning people. After waking up and showering, it’s a bit of a push to get the kids out the door. Then you can find me on the speaker phone in my restroom finishing up my make-up and hair while rushing out the door myself.

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Sector

UPDATE

Sector

UPDATE

THE HOT ARIZONA SUMMER HAS COME AND GONE, BUT OUR LOCAL COMMERCIAL REAL ESTATE MARKET IS FAR FROM COOLING DOWN. COMMERCIAL EXECUTIVE MAGAZINE HEARS FROM EXECUTIVES IN EACH SECTOR ON WHY OUR MARKET IS ON FIRE.

T HE N EXT GENERAT I ON OF L EE & A S S OC I AT ES The Lee & Associates Arizona office was founded in 1991 and has since become recognized as one of the most successful brokerage firms in Arizona. We are excited to announce that these eleven associates represent the largest number of young brokers in the history of the firm. This group has already begun turning heads by providing exceptional brokerage services across all market sectors. Lee & Associates is confident in this groupâ&#x20AC;&#x2122;s ability to continue our legacy of success.

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INVESTMENT SALES

OFFICE

INDUSTRIAL

Ryan Boyle, Makenna Johnson, Andrew Lundahl, Nick Neslund

Spencer Nast, Stirling Pascal, Michael Marsh

Nick Barber, Brian Payne, Conner Lee, Grant Kingdon

Sector

UPDATE M U LT I FA M I LY PHOENIX’S STRONG ECONOMY IS A MAJOR DRIVER IN A HEALTHY MULTIHOUSING MARKET

“Healthy”

BRETT POLACHEK, Senior Managing Director

National multihousing demand is beating historic industry trends, particularly in the current Phoenix market, where the economics have demonstrated mid-cycle staying power. This is largely driven by the Phoenix MSA’s consistent employment gains, which are among the best in the nation. Our strong and diverse economy is drawing waves of new residents to the Valley from all over the country at nearly three times the national rate, which translates to 11 percent year-over-year net migration.

Newmark Knight Frank Multifamily

hoenix was hit hard by the 2007/2008 downturn because of its dependency on the construction/ housing industry and lower-wage hospitality employment. Our rapid population and employment growth might seem reminiscent of previous boomand-bust cycles. However, the metro’s employment mix has diversified, led by healthcare, tech and financial services firms, many of them looking to take advantage of reasonably priced office rents and cost of living for employees. This diversity will help insulate the Phoenix market from the effects of future downturns.

The Tempe submarket has been extremely hot in 2018, with multihousing sales totals beating the rest of Metro Phoenix combined YTD. This has been driven by a flood of established investors doubling down on substantial multihousing holdings in the market at per-unit prices that signal continued area growth. For example, Blackstone made headlines with its recent six-property transaction and three other independent investments in the Greater Phoenix MSA, totaling over $500 million in the second and third quarters of 2018 alone. Properties in proximity to Tempe will likely realize above market appreciation as a result of this activity.

Capital markets have responded with gusto to the new normal of the Metro Phoenix MSA. We are seeing increased demand from buyers that are new to Phoenix, yet not necessarily new to the multihousing game. As of second quarter 2018, international capital invested $684 million in Phoenix multihousing assets over the last 12-month period, the fifth highest total in the nation behind New York City, Washington D.C., Los Angeles, and Boston.*

We have been experiencing a domino effect with some costconscious renters moving to less expensive properties. When facing increased rents in prime areas, these desired locations continue to draw renters and perform well. Looking forward, Northwest Phoenix (toward Peoria and Glendale), and the communities on the southeastern border of Tempe, including Mesa, Chandler and Gilbert are expected to benefit from increased tenant demand.

“The metro’s employment mix has diversified, led by companies looking to take advantage of reasonably priced office rents and cost of living for employees. This diversity will help insulate the Phoenix market from the effects of future downturns.” – BRETT POLACHEK * For more information please refer to ARA Newmark and Berkeley Point Capital’s Second Quarter 2018 United States Multihousing Market Report. *

Sector

UPDATE

INDUSTRIAL

When describing the Phoenix industrial market, a few adjectives come to mind: strength, resiliency, top performing, and robust. Let’s be clear, the engine is running very efficiently, and all cylinders are firing together with most submarkets adding new product. Absorption is up and vacancies are reaching all-time lows in most corridors. Looking back to what we were experiencing during the recent recession, this is certainly a welcome change.

KEY STRENGTHS Compared to our West Coast neighbors, the Phoenix vacancy, approaching a ten-year low of 7.0 percent, still offers plenty of options for the user seeking modest lease rates and attractive sale prices. Labor to run these fulfillment centers and manufacturing facilities is still very attractive and plentiful as users like Ball Corporation, Amazon, XPO, and UPS require more skilled labor. Phoenix continues to lead the nation in job growth. Metro Phoenix has doubled the national average, the past two years averaging 2.9 percent annually. Maricopa County has been the fastest-growing county in the U.S. during that same time frame.

DON MACWILLIAM, Executive Vice President Colliers International

VACANCY The metro Phoenix vacancy began the year at 7.5 percent after a record year of net absorption in 2017 (9.5 million SF). Expect the vacancy by year-end to be sub-7.0 percent and net absorption to be consistent or slightly above yearly averages as we move through 2018. Several large transactions in the Southwest Valley could materialize and dominate the absorption data if completed by year-end.

INVESTMENT Investment capital for Phoenix continues to push pricing to levels not seen before in our market. Cap rates continue to compress and with rising rents, we will see good quality, well-leased industrial distribution facilities close above $90 per SF in the Southwest Valley and north of $110 per SF in the Airport and Southeast Valley submarkets.

DEVELOPMENT

FORECAST

All submarkets in Metro Phoenix are adding new industrial space to their respective markets. As a whole, Deer Valley, Southeast Valley, Airport and Southwest Valley will add approximately 5.7 million SF in 2018. The Southwest Valley leading the way with 4 MSF of new starts.

With all the positive economic factors driving the Phoenix industrial market, construction pricing could dampen or slow the development process. We need to see rents continuing to push higher to keep pace with rising construction and tenant improvement costs.

“Make no mistake, our industrial market is healthy with 20 straight quarters of positive absorption, population growth, job growth, economic growth, and a freeway system spreading the Valley.” – DON MACWILLIAM © Copyright 2018 by MP Media, LLC

Sector

UPDATE DEVELOPMENT

BANKING

JOHN DIVALL, Senior Vice President of Real Estate Development | Ryan Companies US, Inc.

DAN NILLEN, Director BMO Financial Group

“Solid”

“ROBUST” Office, industrial, and multifamily are leading development in the Valley, mainly because our supplyand-demand-levels are healthy right now. From the development front, we have a more tempered and rational supply this time. Both developers and lenders are being more cautious. In development, we’re not oversupplied right now and demand is keeping up with supply. It’s really a sign of a more mature market. We’re continuing to add jobs, (better and more diverse jobs than we did in the last cycle), and we’re adding population growth on top of it. Office demand is coming from a more diverse pool of companies that are expanding. Tempe has always been a strong submarket in the Valley, and we are seeing robust demand and absorption in this submarket. Demand is decent in the Southeast Valley as well, particularly in Chandler. We’re seeing healthy absorption in industrial, particularly in the West Valley. There is strong leasing demand with e-commerce having a big part of that. With more people transitioning to online shopping, the product must be somewhere and it’s generally in a warehouse as opposed to being in a store. Companies are now adapting their supply chain to accommodate this.

“We’ve got a good run ahead of us. As long as the national economy cooperates, I believe we’re on the right track and it feels good.” – JOHN DIVALL 72

The Phoenix market continues to perform with activity in the Valley being very solid right now. Concerning acquisitions and development, there is a lot of available capital out there – particularly in multifamily and industrial. The key will be not to overbuild like we have in the past. We haven’t noticed any slowdown or pause, except for the construction side of multifamily. This is primarily due to lack of desirable/developable sites, increased costs, and others looking to see how the existing supply is absorbed. We’re seeing positive absorption for all asset classes and now an increase in the number of speculative developments. We’ve been participating in those as a lender, and I think many banks in Phoenix as well. We are 10 years into the current cycle and thus far, banks have remained disciplined at keeping leverage at reasonable levels, which was a lesson learned from the last downturn. Where you see banks getting more aggressive is in pricing. We’re seeing spreads thin on both cash flowing deals and construction loans. There is a lot of real equity coming into deals. It’s both from domestic and international funds. Given the current environment, we’re going to see this continue.

“Banks have remained disciplined at keeping reasonable leverage, a lesson learned from the last downturn.” – DAN NILLEN

Sector

UPDATE

LAND

OFFICE

NATE NATHAN, Principal and Designated Broker

STEVEN SCHWARZ, Founding Partner

Nathan & Associates, Inc.

ViaWest Group

“ STRONG” I’ve owned Nathan & Associates for nearly 39 years and our current market is the strongest I’ve ever seen it. Almost every sector of the market is hot.

Between population growth, job growth, our affordable market, our new transportation corridors, our right-towork state, income taxes that are in California, property taxes, and the new tax laws… Arizona is on fire. Pinal County, Buckeye, and Maricopa are going to explode again because they have affordable land. The 303 and 202 South Mountain Loop have opened exciting employment corridors in the West Valley where jobs are booming. Mesa around Cadence and Eastmark, infill in Gilbert and Chandler, Northwest Peoria, the I-17 corridor, and Buckeye are all on fire. The only negative I see is the shortage in the labor force and the time it’s taking to get things built. Hopefully, with the strength of our local economy and our continued population growth, the workforce will grow as Arizona continues to get stronger. Overall, business is as strong as it has ever been. The master planned communities which we represent are aggressively trying to deliver the supply that is in such high demand.

“After 10 years of a really bad downturn, the Phoenix market has bounced back.” – NATE NATHAN

Phoenix office remains a great value play compared to neighboring states resulting in continuously strong investment activity. There have been multiple sales recently in excess of $300 per SF, including assets in B locations and tilt-up construction. This pricing was historically saved for the highest quality and best located assets in town, so this new paradigm may be a reflection of the great outlook for Phoenix, as well as the changes in office demand and the cost of tenant improvements. Strong net absorption continues to take place with 900,000 SF of net absorption in the first half of 2018 after averaging nearly 3.2 MSF during the prior three years. The on-pace decrease is due to some very large deals reaching completion in prior years, such as the State Farm deal. With that, 1.8 MSF is still pretty good. Rental rates continue to climb with a 2.3 percent increase year-over-year for the second quarter while vacancy steadily drops to 16 percent throughout Metro Phoenix. Tempe continues to lead the market with a sub-5 percent vacancy, but strong leasing activity continues throughout the Valley. In recent years, new development has been consistently below net absorption. This is an area that should be watched closely considering 2.9 MSF are presently under construction.

“Overall, the office market is well positioned with competitive pricing and lease rates, and the desire of companies to locate here.” – STEVEN SCHWARZ

Sector

UPDATE INVESTMENT The Metro Phoenix investment market is robust right now compared to 12-15 months ago. This is due to our fundamentals being strong. Our net absorption numbers are up, occupancy levels are increasing, and job growth is on the rise (60,000+ on a trailing 12-month basis through May 2018). The market is hearty right now not only compared to Phoenix historically, but also compared to other markets, which is driving investors to our market.

KEY STRENGTHS

FOREIGN INVESTORS

Investors right now have an insatiable appetite for multifamily and industrial. They’re looking at the below the line costs, and those costs are low for apartments and industrial. In the office space, tenant improvement costs have increased quite a bit. Until very recently, the office market was somewhat cool because investors recognized that the cost to keep office buildings occupied was quite high. That is shifting with investors realizing there’s a yield premium for office investments, compared to multifamily and industrial.

Another factor adding to our strong market is that we are continuing to see more foreign investments in Phoenix. These investments are in the form of institutions including pension funds and life insurance companies that are influenced by EMEA (Europe, the Middle East, and Africa) investors. Asian investors have recently played a much larger role, especially Japanese and South Korean investors. It has probably been a decade since we’ve seen this level of foreign investment to Phoenix.

“Ultimately with limited supply, strong increasing demand, vacancies dropping, rental rates growing, strong and steady appetite in foreign capital on the acquisition side, we feel we have strong, rosy skies ahead for the foreseeable future.” – CHRIS TOCI FORECAST CHRIS TOCI, Executive Managing Director Cushman & Wakefield

TECHNOLOGY There’s a perception among investors in the Phoenix real estate market that there’s quite a bit more “room to run.” Phoenix was one of the hardest hit markets during the Great Recession and one of the last markets to recover. As a result, we are a much more diverse economy. If you look at what has typically driven Phoenix, it’s been finance, insurance, real estate, business professional services, education, and healthcare. Now, technology is front and center as a much more robust growing industry. We’re currently ranked in the top 15 for tech growth, which has made us a more attractive economy which is a good base for investors. 74

The investment market is going to continue at a steady pace in Phoenix. If you look at the previous cycles in Phoenix, the proportion of new supply that is under construction now, relative to our base inventory, is much lower than it was. As a result, vacancy is dropping and rents are on the rise. There is a clear belief that Phoenix is not going to oversupply this cycle, as it has in the past. Constrained supply coupled with healthy demand is a recipe for sustained growth. That demand is being driven by, among other things, the structural challenges facing California. Title 24 is one example that imposes an additional tenant improvement (TI) burden on owners in order to comply with environmental requirements. Those TI costs may be as much as 20 to 30 percent higher than in Phoenix. Personal and corporate income tax increases are another structural challenge facing Californians. The notion that California residents and corporations may relocate to Phoenix is no longer a prediction, it’s truly happening this time around.

Sector

UPDATE

R E TA I L

Fitness centers have taken many vacant big boxes and expanded throughout the Valley. Value operators such as VASA Fitness, EoS Fitness, Planet Fitness, Anytime Fitness have added more than a dozen stores in the last year. All tout low entrance fees and low monthly fees. Restaurants have seen a surge of quick-serve options which appeal to Millennials and time-strapped families. These concepts have limited table service, usually do not require tipping, and serve good quality food that is affordable. Chains expanding include Panera, Modern Market, Salad and Go, and ethnic and poke concepts.

DARREN PITTS, Executive Vice President Velocity Retail Group

Affordable home décor has seen growth from At Home, Home Goods, Tuesday Morning, Ashley Homestore, and American Furniture Warehouse. Ross, TJ Maxx, and Old Navy have all expanded in various trade areas throughout Metro Phoenix providing attractive value in apparel. Thrift stores such as Goodwill are a welcome addition in many shopping centers with clean and well-run stores that bring vibrancy back to many secondgeneration big box spaces. Sprouts Farmers Market continues its expansion and brings value to the grocery category. Aldi, which is a new entrant to our market, promises low prices and a strong selection of organics. Both of these concepts have smaller store sizes and appeal to a broad range of shoppers.

A new cycle in the retail sector has emerged over the past several years. You may have noticed this trend in shopping centers near you – the growth of value oriented tenants. From $3 car washes, quick serve restaurants, low cost fitness centers, affordable home décor and furnishings, thrift stores, and even big-box apparel stores, retail segments have all expanded during this cycle and are capitalizing on the fact that consumers appreciate and want value in their choices.

“This next cycle is proving that retailers who provide value along with quality and convenience are changing the shape of retail and securing their own stronghold on the market.” – DARREN PITTS

New projects, new markets, new opportunities. Perris Marketplace

Eastbridge Marketplace

PERRIS, CALIFORNIA

DENVER, COLORADO

225,000 SF SHOPPING CENTER 2017 COMPLETED

8,500 SF SHOPPING CENTER 2017 COMPLETED

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Parc at South Mountain

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PHOENIX, ARIZONA

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258 UNITS

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237,000 SF

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East Valley

UPDATE

The Tempe market is inspiring new office destinations City of Mesa Mayor John Giles

he North Tempe office market has certainly come of age, buoyed by revolutionary work environments that inspire office users to fully consider the possibilities of their workspace. From waterfront views and on-site Metro light rail stops to rooftop lounges, all within minutes of award-winning shopping and dining, these Class A projects attract tremendous tenant demand and notable rents, which as of mid-2018 ranked as the highest in the Valley at more than $38 per SF. But as developments like Hayden Ferry Lakeside and Marina Heights reach build out – and other yet-to-break-ground projects propose approximately 600,000 SF of additional construction – options for North Tempe land parcels dwindle. This has pushed developers to look beyond North Tempe’s borders, where they can build to the same Class A benchmarks, but at a lower cost and with less traffic congestion for commuting employees. Just east of downtown Tempe, for example, Freedom Financial has moved into a 150,000 SF building adjacent to Tempe Marketplace and plans to occupy an adjacent 150,000 SF building (now under construction) as it expands.

CRAIG KRUMWIEDE President and CEO, Harvard Investments

DAVID KRUMWIEDE Executive Vice President, Lincoln Property Company

East Valley

UPDATE

THE RISE OF RIVERVIEW On the immediate east side of the Loop 101/202 stack, the City of Mesa’s Riverview district spans 1.3 MSF with more than 50 brand-name stores, 30 restaurants, a movie theatre, and comedy club. It is also home to the Sheraton, Hyatt Place, Riverview Lake, and Sloan Park, Cactus League home of the Chicago Cubs. A new wave of Class A office development is also on the way. “The market for Class A office space is moving east along the 202 Red Mountain freeway corridor and Mesa couldn’t be more ready,” said Mesa Mayor John Giles. “We have the capacity and great infrastructure to support big companies that offer high quality jobs, next to two freeways and lots of restaurants and shopping.” Riverview in less than three years has welcomed the completion of the four-building, 35-acre Waypoint Class A office campus. Plans for Union, a 1.35 MSF, four-building Class A office project were recently announced. Both developments are from Lincoln Property Company and Harvard Investments. At Waypoint, Lincoln and Harvard have built two Class A office buildings and purchased and redeveloped two additional Class A office buildings to create a single, 425,861 SF campus. In May, Waypoint signed a long-term lease with engineering and consulting firm EPS Group. In August it welcomed Fortune 500 tech services company Cognizant. Other established tenants at Waypoint include American Traffic Solutions, Ashton Woods, Mitel Corporation, and NextCare. According to the City of Mesa, Waypoint draws from an educated workforce of more than 620,000 within a

20-minute drive and more than 1.48 million residents within a 30-minute drive. The same will be true for Union, which its developers note is “designed to attract and retain premier, market-leading companies and their employees.” “Union will have the same destination feel as our office buildings at the Grand at Papago Park development – which sits just outside of downtown Tempe, on the north side of the Loop 202,” said Lincoln Property Company Executive Vice President David Krumwiede. “It is a level of out-ofthe-box creativity that is pushing the expectation of what tenants can expect from modern day office space.” At Union, buildings will feature sleek glass exteriors, open workspaces with high ceilings, a pedestrian plaza, water features, shaded outdoor spaces, and sweeping views of the Superstition Mountains. Interiors will feature high ceilings and large floorplates that can accommodate open workspace and smaller spaces for team collaboration. “Waypoint and Union are exactly the type of development we want in Mesa,” Giles said. “We hope to keep the momentum moving and see more well-planned developments like this throughout the city.” Waypoint is 95 percent leased. Union is expected to break ground in 2019. “Much like demand from Tempe is moving east to Riverview, I can see Riverview coming of age to become a gateway of its own,” Krumwiede said. “That could prompt development even further along the Loop 202 Red Mountain corridor, where a very large and talented labor pool awaits.”

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WHAT DOES

$122 MILLION IN CHARITABLE GIVING FEEL LIKE?

ONE SUCCESS STORY AT A TIME. TIME AFTER TIME. IMPROVING THE QUALITY OF LIFE IN OUR COMMUNITIES 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 Girl Scouts Arizona. UMOM. AZ Science Center. United Food Bank. And countless others. More than $122 million has been gifted to Arizona charities over 83 years, but the true impact can be expressed one story at a time. Thanks for your continued support of the Waste Management Phoenix Open. Chance Cozby, Thunderbird

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