Issuu

MAY-JUNE 2019

HEALTHCARE

TRENDS

INSIDE:

Downtown Phoenix p. 60 | Valley Partnership p. 89

change the industry change the world ONE

healthcare

PROJECT AT A TIME

www.dpr.com Banner University Medical Center Phoenix

222 North 44th Street | Phoenix, AZ 85034 | (602) 808-0500 3100 North Campbell Avenue, Suite 102 | Tucson, AZ 85719 | (520) 355-8247

Spreading out across the state

t’s like an outbreak. There is no precise idea about where it began, but we can clearly see that this rash is spreading. Some parts have long been experiencing symptoms, but now there is evidence of remarkable growth in new markets and new parts of the state. Development is spreading. The commercial real estate industry has watched over the last few years as development and growth and construction activity has spread out across the Phoenix market. The market may be waiting anxiously for the first clear signs of a downturn, but development just rolls on, seemingly unabated and now in new areas. In this issue we examine what is happening in Pinal County and the vast potential that is starting to come into view. A pair of game-changing companies are poised to begin construction on high-tech manufacturing plants that will likely serve as the starting gun for a race to become a world leader in next generation automobile manufacturing and research. We take a look at what is making the area up and down Central Ave. in Phoenix one of the best places to build, open an office or live. The recent run of economic growth in Arizona has also served to lure tens of thousands of new residents every year. With this population growth, the need for healthcare has grown, and in this issue we take a look at just some of the newest healthcare facilities that are being built all over the state. There’s also been a recent jump in the amount of data centers being planned in the Phoenix market, drawn here by our climate, both the business-friendly one and the weather. Also, we take a look at the vital work that Valley Partnership does in its role as advocate for responsible development in the Valley and how its efforts and influence led to the passing of a breakthrough law that helps to keep the water in the Colorado River flowing. And, as we’ve done in past years, we pay tribute to the commercial real estate brokers in the Valley and highlight their top deals of the year.

Steve Burks

Associate editor, AZRE steve.burks@azbigmedia.com

2 | May-June 2019

President and CEO: Michael Atkinson Publisher: Josh Schimmels Vice president of operations: Audrey Webb EDITORIAL Editor in chief: Michael Gossie Associate editors: Steve Burks | Alyssa Tufts Interns: Erin Brassey | Alexa Buechler Contributing writers: Alison Bailin Batz | Tom Dunn Suzannne Kinney | Tim Lawless | Jim Rounds ART Art director: Mike Mertes Design director: Bruce Andersen MARKETING/EVENTS Marketing & events manager: Cristal Rodriguez Marketing specialist: Gloria Del Grosso Marketing designer: Patrick Griffin OFFICE Special projects manager: Sara Fregapane Executive assistant: Mayra Rivera Database solutions manager: Amanda Bruno AZRE | ARIZONA COMMERCIAL REAL ESTATE Director of sales: Ann McSherry AZ BUSINESS MAGAZINE Senior account manager: David Harken Account managers: April Rice | Kim Bailey AZ BUSINESS ANGELS AZ BUSINESS LEADERS Director of sales: Sheri Brown HOME & DESIGN EXPERIENCE ARIZONA | PLAY BALL Director of sales: Donna Roberts RANKING ARIZONA Director of sales: Sheri King AZRE: Arizona Commercial Real Estate is published bi-monthly by AZ BIG Media, 3101 N. Central Ave., Suite 1070, Phoenix, Arizona 85012, (602)277-6045. The publisher accepts no responsibility for unsolicited manuscripts, photographs or artwork. Submissions will not be returned unless accompanied by a SASE. Single copy price $3.95. Bulk rates available. ©2019 by AZ BIG Media. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without permission in writing from AZ BIG Media.

SAVE THE DATE

AUGUST 22, 2019 | 5:30 - 8:30PM Please join us for an evening of inspiration and connection.

AZ Business & AZRE magazines are proud to host the 2019 Most Influential Women Awards Dinner. We’re excited to announce that we’ll be honoring 50 outstanding women for their impact to their organizations, to the region’s business climate and to our community. All fifty women will be recognized and awarded at the dinner as well as within the July/August issue of AZ Business and AZRE magazines. In addition, we’ll unveil and announce specialty award winners in several areas of leadership. Please join us for an evening of networking, connecting and celebrating the accomplishments of this year’s class of Most Influential Women.

Corporate Tables and Corporate Sponsorships available. Email Josh.Schimmels@azBIGmedia.com to get involved. 602.277.6045

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CONTENTS

FEATURES 2 Editor’s Letter 6 Trendsetters 10 Executive Profile 12 After Hours 14 New to Market 16 Big Deals

20 Legislative Update

24 AZCREW

29 Top Producers 42 Healthcare Trends

60 Downtown Phoenix

68 Data Centers

73 Pinal County

89 Valley Partnership

On the cover:

Banner — University Medical Center Tucson new patient tower 4 | May-June 2019

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

ARIZONAâ€™S COMMERCIAL REAL ESTATE

MID-YEAR UPDATE & FORECAST

Save the Date! August 1, 2019 AZRE magazine will host a panel of Arizonaâ€™s top commercial real estate experts, yielding in-depth discussions of economics, development and state of the industry. Highlights include market analysis, all-star broker panels, networking and a cocktail reception.

2019 Invited Panelists

Paul Komadina Laurel Lewis NAI Horizon CBRE

Mike Garlick NKF

Ryan Sarbinoff Sandra Watson Jackob Marcus & Arizona Andersen Millichap Commerce Saint Holdings Authority

Call to Sponsor

602.277.6045 azBIGmedia.com

Brandon Dillingham Hines

Derek Kirkland Alana Mann DPR Construction The Statesman Group

TRENDSETTERS LEED-ing the way The U.S. Department of Energy’s (DOE) Better Buildings Challenge recognized REI’s distribution center in Goodyear for its leadership in energy-efficiency. Better Buildings Partner REI’s LEED® Platinum distribution center opened in July 2016 and was designed to be a zero-energy facility. It also supports more than 40 percent of the co-op’s sales. In order to achieve its goals, REI implemented: A 2.2-megawatt solar system, which is expected to power the entire facility, bringing REI’s overall annual energy savings to 100%. The solar array covers 280,000 square feet of roof space. A non-evaporative cooling system, which eliminated the need for cooling towers, saving millions of gallons of water every year. Hyperchairs for employees to control their own microclimate with individual fans and heating elements, allowing employees to heat or cool individual office chairs. In 2018, REI’s distribution center achieved an annual energy savings of 18% and annual cost savings of $170,000 from the baseline. Additional energy and cost savings are expected for 2019 as a result of retrocommissioning work completed in late 2018. In partnership with Bonneville Environmental Foundation (BEF) and The Nature Conservancy of Arizona, REI will also help modernize irrigation infrastructure to conserve water and enhance flows for recreation and wildlife, protect farmland and limit development and water extraction in sensitive areas, and remove invasive plants to restore river habitat. REI’s 400,000 square-foot facility is located on 34 acres outside of Phoenix. It employs more than 200 people.

Opportunity in AZ

The REI distribution center in Goodyear is powered by a large solar array on top of the 400,000 square foot building.

The Investing in Opportunity Act (‘IOA’) had gone under the radar for several months after it was passed as part of the Tax Cuts and Jobs Act of 2017, until it eventually captured the attention of investors last year. The program proposes tax incentives that could redirect dormant capital gains into under-developed communities, designated as opportunity zones (OZs). Commercial Café.com compiled a list of top counties for investment by allocating points for the following indicators: employment, GDP, population growth, poverty rates, the educational attainment level of the labor force and the number of eligible opportunity zones within each area. Of the 306 counties on the list, six are in Arizona, including the No. 6 county for opportunity zone investment, Maricopa County. The states with the highest number of counties to make the list were: Texas with 32, followed by California with 27, Florida with 22, and New York with 17.

Top Counties

for Opportunity Zone (OZ) Investment #

County

State

Travis

Sacramento

District of Columbia

Clark

Wake

Maricopa

Utah

Galveston

Franklin

Yolo

Other Arizona Counties #

County

State

31.

Pinal

85.

Pima

149.

Yuma

165.

Coconino

243.

Mohave

Source: CommercialCafe.com

Sundt helps build up charitable groups The Sundt Foundation awarded a total of $125,000 to charitable groups in the Valley and Tucson during the first quarter of 2019. Among those awards was a $5,425 grant to Hoofbeats with Heart. The organization is currently using equine therapies to serve 98 children diagnosed with autism. Funds from the grant will be used to create a therapeutic riding sensory trail that uses the movement of the horse to guide the children through a variety of sensory stations. “It is a great honor to be able to help support a charity like Hoofbeats with Heart,” said Cathie Gabriel, the Sundt Foundation’s Tempe region board member. “Children with autism struggle with sensory stimuli, appropriate motor skills and behavioral responses. Through equine therapy, this organization is helping children improve language and balance motor coordination.” In all, the Sundt Foundation gave grants ranging from $2,000 to $5,000 to 39 organizations in Arizona. The Sundt Foundation awards grants quarterly to area charities that support disadvantaged children and families. Nonprofits are selected through an application process and reviewed by a committee of Sundt employee-owners. 6 | May-June 2019

Staff and children at The Boys & Girls Club of Tucson accept a $2,000 grant from the Sundt Foundation to provide emergency snack kits.

BEST OF NAIOP The Arizona Chapter of NAIOP held its annual Best of NAIOP awards ceremony on March 28, honoring the industry professionals and their work for 2018. There were 29 awards given out, including the Award of Excellence, which was given to Sharon Harper of Plaza Companies. Here is the complete list of 2018 Best of NAIOP winners: Sharon Harper, Plaza Companies: Award of Excellence Butler Design Group: Architect of the Year CBRE: Brokerage Firm of the Year Ryan Companies US, Inc.: Firm of the Year Willmeng Construction, Inc.: General Contractor of the Year Phoenix Design One, Inc.: Interior Architect of the Year Lincoln Property Company: Owner/Developer of the Year Willmeng Construction, Inc.: Tenant Improvement Contractor of the Year Cooper Fratt, CBRE: Developing Leader of the Year Phil Haenel, Cushman & Wakefield: Emerging Broker of the Year Vince Femiano and Kate Morris, CBRE: Healthcare Broker of the Year Mike Haenel, Andy Markham, Will Strong, Cushman & Wakefield: Industrial Broker of the Year Barry Gabel, CBRE: Investment Broker of the Year Kevin Calihan and Bryan Taute, CBRE: Office Broker of the Year Dave Cheatham and Darren Pitts, Velocity Retail Group: Retail Broker of the Year Luke Krison, CBRE: Rookie Broker of the Year Chuck Nixon, CBRE: Tenant Representative Broker of the Year Ball Goodyear Plant: Industrial Build-to-Suit Project of the Year Goodyear Crossing One-Blue Buffalo: Industrial TI of the Year Estrella Medical Plaza II: Medical Office Project of the Year Chandler Viridian: Mixed-Use Project of the Year

BIG DEALS Top Office Transactions of 2018 11. Michael Garlick, Newmark Knight Frank 21. Mark Gustin, JLL 26. Mark Gustin, JLL 27. Mark Gustin, JLL 47. Mark Gustin, JLL 50. Mark Gustin, JLL

214,303 SF

Tempe

149,371 SF 129,187 SF 121,700 SF 80,000 SF 77,285 SF

Tempe Chandler Phoenix Gilbert Phoenix

Sharon Harper, Plaza Companies

McKesson - Building I & II: Office Build-to-Suit of the Year JDA Software Customer Experience Center: Office Tenant Improvement of the Year (Less than 50,000 SF) Quicken Loans: Office Tenant Improvement of the Year (50,000 SF or more) Consumer Cellular at Deer Valley: Redevelopment Project of the Year The Crossing at Sahuarita: Retail Project of the Year Goodyear Crossing One-Blue Buffalo: Spec Industrial Project of the Year The Offices at Chandler Viridian: Spec Office Project of the Year Liberty Center at Rio Salado IV: Sustainable Project of the Year Park Central: Transaction of the Year Trademark Visual, Inc.: Official Sign Sponsor of the Year Park Central: Talk of the Town

The Society of Industrial and Office Realtors (SIOR), which represents the world’s elite in industrial and office brokerage, announced its top Office and Industrial Transactions of 2018, ranked by total square feet. Phoenix transactions were well represented on the lists. Office: Newmark Knight Frank’s Michael Garlick, SIOR, negotiated the lease of the 214,303 square foot Wells Fargo Home Mortgage building at Papago Park Center in Tempe.

Top Industrial Transactions of 2018 4. Allen Lowe, Matthew Hobaica (Lee & Associates) and Bo Mills, Mark Detmer (JLL) 6. Bo Mills, Mark Detmer, JLL 16. Bo Mills, Marc Hertzberg, Mark Detmer, JLL 26. Bo Mills, Marc Hertzberg, Mark Detmer, JLL 47. Bo Mills, Mark Detmer, JLL 50. Mark Gustin, JLL

1,106,138 SF Tolleson 1,009,387 SF Phoenix 684,420 SF Phoenix 540,349 SF

Goodyear

437,234 SF 77,285 SF

Phoenix Phoenix

Industrial: Allen Lowe and Matthew Hobaica of Lee & Associates, along with Bo Mills and Mark Detmer of JLL negotiated the $92 million sale of a four-building portfolio at Tolleson’s Westside Business Park.

TRENDSETTERS

Office index sees

Phoenix and Charlotte made the largest jumps up Marcus & Millichapâ€™s National Office Index for 2019, with both markets leaping eight spots from the 2018 list. Charlotte moved up to #8 on the 2019 list and Phoenix rose to #17 on the NOI, which ranks 46 major markets on a collection of 12-month, forwardlooking economic indicators and supply-and-demand variables. Seattle-Tacoma held steady in the top spot, followed by San Francisco, San Jose, Boston and Raleigh. The rise of Phoenix and Charlotte, as well as Orlando, which jumped seven spots to #20, was due to company expansions and relocations in these markets creating more office-using jobs and a growing demand for space. In addition, significant population gains created a need from smaller office users including doctors, lawyers, accountants and insurance agents. The 2019 NOI projects that Phoenix will see continued rental gains, with asking rents moving to $26.65 per square foot for the year. The best submarket for investors will be Midtown Phoenix, as employers seek space near millennials residing in the newly constructed apartment developments along Central Avenue.

Phoenix rising

OFFICE SUPPLY & DEMAND

EMPLOYMENT TRENDS

Completions

Office-Using

4% 0% -4%

4 2 0

-8%

-2

09 10 11 12 13 14 15 16 17 18* 19**

VACANCY & RENT TRENDS Y-O-Y Rent Growth

21%

18%

15%

-2%

12%

-4%

8 | May-June 2019

11 12 13

15 16

17 18* 19**

Price

Price Growrh

$240

30%

$180

15%

&120

$60

-15%

-30% 08 09 10 11 12 13 14 15 16 17 18*

Year -over-Year Growrh

Year-over-Year Rent Change

24%

09 10 11 12 13 14 15 16 17 18* 19*

09 10

SALES TRENDS Average Price per Square Foot

Vacancy

Vacancy Rate

Absorption

6 Square Feet (millions)

Year-over-Year Change

Nonfarm 8%

Phoenix a for investors A recent survey of commercial real estate investors ranked Phoenix as a top 10 target among Americas metros. Phoenix jumped two spots to #9 in CBRE’s 2019 Americas Investor Intentions Survey. The survey, which covers all asset types, found that, in 2019, more investors are prioritizing secondary markets that can offer greater potential for both equity and income growth. Investor interest in secondary assets increased for the fifth consecutive year (33%) to gain significant ground on value-add (37%) as the most preferred strategy. The survey also examined how investors view each of the different asset types: Industrial & Logistics is still the preferred property type, cited by 39 percent of investors as the most attractive for investment in 2019. Multifamily closely followed in second place, with 37 percent of

investors naming it as the next most attractive property type—up from 20% in 2018. Office was cited by 10 percent of investors as the most attractive for purchase in 2019. Retail’s share of investors (9 percent) has held essentially steady over the past three years, despite competition from e-commerce.

Making an impact Jonathan Keyser, founder of Phoenix-based Keyser, was recently invited to join the Forbes Real Estate Council, an invitation-only community for top executives in the real estate industry. Keyser is an author, speaker and thought leader within the commercial real estate industry. The company that shares his name is a disruptive, next-generation commercial real estate firm launched in 2013 with the mission of reinventing the global commercial real estate brokerage industry through cultural transformation. Keyser has grown rapidly into the largest and most successful firm of its kind in Arizona, and one of the fastest growing in the country. “I am honored to join this prestigious society of top real estate professionals,” said Keyser. “I look forward to contributing to the council and to advance Keyser’s mission of transforming the commercial real estate brokerage industry through a culture of selfless service.” Award-winning and nationally recognized, Keyser was recognized as one of the Top 10 Coolest Office Spaces in Arizona, named Top 10 Most Creative Companies in Arizona, named one of the Top Leasing

firms in Arizona and is the Arizona Host Company for the 2019 Conscious Capitalism Annual Conference. “We are honored to welcome Jonathan into our community,” said Scott Gerber, founder of Forbes Councils, the collective that includes Forbes Real Estate Business Council. “Our mission with Forbes Councils is to bring together proven leaders from every industry, creating a curated, social capital-driven network that helps every member grow professionally and make an even greater impact on the business world.”

EXECUTIVE PROFILE

Making the right call Milligan’s career choices look better in hindsight By STEVE BURKS

n make or break career decisions, Robert Milligan is a perfect 3-for3, although there were times when Milligan thought he had struck out swinging. “My first two big career decisions were to join companies and sectors that were drastically declining,” said Milligan. “You look at it and say, ‘What did I get myself into and am I going to survive?’ But they actually turned out to be some of the best opportunities that I had.” Milligan’s career choices led him to his current position as chief financial officer, treasurer and secretary for Scottsdale-based Healthcare Trust of America, Inc. (HTA), a publicly-traded Real Estate Investment Trust that specializes in the medical office building sector. HTA is the largest dedicated owner and operator of medical office buildings in the United States, comprising approximately 23.2 million square feet with $6.8 billion invested in primarily medical office buildings. Milligan grew up in Arizona and got his B.S. in finance and economics from Arizona State. He later got his MBA from the University of Chicago. After

10 | May-June 2019

college, Milligan landed a job at General Electric as a commercial finance analyst for GE Silicones. When Milligan joined GE, the plastics division he was a part of had gone from Robert Milligan $800 million in operating income the year before he was hired down to $150 million. “From a decision-making perspective, you always want to join a company that’s growing with a lot of opportunity,” Milligan said. Milligan then moved to Bank of America Merrill Lynch in 2007, right as the economic downturn was taking a severe toll on the banking and investment industry. “You learn a lot more when the market goes down,” Milligan said. “Both of those career decisions — while you started to second guess yourself when you joined B of A in 2007 and saw Bear Stearns go down and Lehman Brothers go down — they really turned out to be great decisions because I got so many more opportunities. I got to see how things could fail, which is really the best way to learn.” Milligan remained at Bank of America through 2011 and in his role

he was focused on healthcare, a market he was keenly interested in due to the fact that his father was a physician. In 2012, Milligan made a call to HTA and said he’d noticed that the REIT was growing fast and asked to come in and learn more about the company. “Make or break was, literally, what it was,” said Milligan of his fateful visit to HTA. “As luck would have it, Scott Peters, our founder (and current chairman of the board, CEO and president) was in the office and he decided to come in and talk to me. “I walked in just for a conversation and when I walked out it was with an opportunity and a short amount of time to make a decision, so it truly was a career-changing decision to make there.” Milligan saw an opportunity to join a company that was focused on an industry he was passionate about, but healthcare-focused REITs were relatively unknown at that time. “Healthcare real estate is new from an institutional perspective,” Milligan said. “With all of the changes going through healthcare and the opportunity for the real estate component to be a large part of it, HTA was extraordinarily well-positioned.” Milligan’s arrival coincided with HTA being listed on the New York Stock Exchange. At that time, HTA’s portfolio consisted of 12.4 million square feet of property worth $2.4 billion, about half of the current HTA portfolio. “It’s been a great experience that opened up a lot of opportunities for me and really allowed me, and a bunch of others, to thrive,” Milligan said. “It’s been a great run.”

Healthcare Trust of America, Inc. (NYSE: HTA) rang the Closing Bell at the NYSE on, April 4, 2018, to celebrate over 10 years since the company was founded and the 5th year as a public company since listing on the NYSE. On hand at the 2018 event were, from left, Ann Atkinson, former senior VP, acquisitions; Amanda Houghton, executive VP, asset management; Alisa Connolly, corporate VP, asset management; Caroline Chiodo, senior VP, finance; Scott Peters, chairman, CEO and president; Robert Milligan, CFO, treasurer and secretary; Kerri Johnson, public relations; Kristen Armstrong, VP of administration and director of capital tenant improvements; and David Gershenson, chief accounting officer.

AFTER HOURS

BUILDING BRIDGES By ALISON BAILIN BATZ

n attorney, an artist and a comedian walk into a bar… This is not a joke. It’s actually three ways to describe Ben Graff. Graff is likely best known as a successful zoning attorney with Quarles & Brady LLP. He played a prominent role in securing the approval for The Ritz Carlton in Paradise Valley as well as UMOM New Day Center’s newly opened affordable housing project. He also recently obtained the entitlements necessary for Sonora West Development to build a luxury multifamily development on 48th Street just south of Culver Street in Phoenix. “We are thrilled the zoning was approved, and Sonora West can proceed with building on this property that had been vacant for over 10 years,” says Graff. “This case was the perfect example of successful infill development.” He is also known for his role as an elected official. Currently, Graff is in the midst of a six-year term on the Central Arizona Water Conservation District

12 | May-June 2019

board, which oversees 40% of Arizona’s water supply from the Colorado River. The board recently made history with the passage of the Drought Contingency Plan earlier this year. In both roles, Graff has a reputation for building bridges. “People assume my role as an attorney is adversarial, but it is really about building bridges,” says Graff. “And I’ve often used humor to build them.” And that’s where the comedy comes in. Beyond the city council chambers where votes get you the win, Graff has now appeared at the Tempe Improv, where the laughs determine your fate. “I first got on stage in 2018. I held my own,” says Graff, who is performing again this spring. And while his performances won’t cement him a place alongside the likes of Jerry Seinfeld or Eddie Murphy, actual cement is earning him a new role as an artist. “I wanted to make my wife cement hand prints of our daughters – Madison and Sophia – for Christmas two years ago,” says Graff. “I, of course, had to tinker with the leftover materials.” Before he knew it, Graff was

sculpting the cement. Today, he has both a series of magnetized cement art and a series of cement planters which together mimic a downtown skyline. “The fact that my wife says she ‘has never seen anything like them before’ continues to be interpreted as a compliment,” says Graff. With a plate so full, not to mention two daughters under age six who need him to help build forts and play Legos, certainly Graff ends his various pursuits there, right? Not by a longshot. Graff is not only a Regent Emeritus for the Arizona Board of Regents, but a graduate of Valley Leadership Class XXXI, member of the Phoenix Chapter of Lambda Alpha International (Land Economics Society), part of the inaugural graduation class from the Flinn/Brown Foundation Leadership Academy and on the board for Kids at Hope. “We give school districts the tools to cultivate an environment where all children can succeed,” says Graff. “We have programs to help motivate kids and build their self-worth despite behavioral, physical or family related challenges.” He was also elected in March to the Board of Directors for Valley Partnership, the premier advocacy group for responsible development in Arizona.

NEW TO MARKET A

HEALTHCARE A GRANDE VITA DEVELOPER: Khangura Development GENERAL CONTRACTOR: Brycon ARCHITECT: Kevin B. Howard Architects LOCATION: Crismon Road and Hampton Avenue, Mesa SIZE: 700,000 SF VALUE: $300 million START: Spring 2019 COMPLETION: Fall 2021

14 | May-June 2019

OFFICE B 225 W. MADISON DEVELOPER: Maricopa County GENERAL CONTRACTOR: Layton Construction ARCHITECT: DLR Group LOCATION: 225 W. Madison, Phoenix SIZE: 278,775 SF VALUE: $65 million START: March 2018 COMPLETION: Winter 2019

MULTIFAMILY C THE RESIDENCES AT SANTAN VILLAGE DEVELOPER: Leon Capital Group GENERAL CONTRACTOR: McShane Construction ARCHITECT: Todd & Associates LOCATION: SanTan Village Pkwy and Ray Rd., Gilbert SIZE: 380 units VALUE: WND START: Summer 2019 COMPLETION: Fall 2020

ANIMAL HEALTHCARE D HEIDIâ€™S VILLAGE DEVELOPER: Virginia B. Jontes Foundation of Phoenix GENERAL CONTRACTOR: Chasse Building Team ARCHITECT: Cawley Architects LOCATION: 40th and Fillmore St., Phoenix SIZE: 40,000 SF VALUE: $20 million START: March 2019 COMPLETION: Spring 2020

INDUSTRIAL E THE HUB AT GOODYEAR DEVELOPER: Clarius Partners LLC GENERAL CONTRACTOR: LGE Design Build ARCHITECT: LGE Design Build LOCATION: 305 S. Bullard Ave., Goodyear SIZE: 790,980 SF VALUE: WND START: March 2019 COMPLETION: Fall 2020

EDUCATION F STUDENT SUCCESS DISTRICT DEVELOPER: University of Arizona GENERAL CONTRACTOR: Sundt Construction, Inc. ARCHITECT: Miller Hull and Poster Frost Mirto LOCATION: 1510 E University Blvd., Tucson SIZE: Unknown VALUE: WND START: March 2019 COMPLETION: Fall 2021

Getting a new heart

Goodyear enters agreement to build new, $83 million city hall

oodyear Mayor Georgia Lord began her career in public service in 2003, leading the committee that was helping plan a new city center in Goodyear. The 40 acre project was going to be set on the corner of Yuma Road and Estrella Parkway and would be the focal point of the community. The economic downturn put an end to those plans. “That was a heartbreaker for me and other people like councilwoman Sheri Lauritano, who was also on that committee,” Lord said. “We’ve all waited around for this, so when

16 | May-June 2019

this came before us there was a glimmer that there might be a private partnership with the city we all opened our arms to that and the staff worked very hard to accomplish this.” In April, the City of Goodyear City Council approved a letter of intent to enter into a public-private partnership with Globe Corporation to begin work on a first-of-its-kind project. The Goodyear Civic Center at Estrella Falls will serve as the civic heart of the city for years to come, with a new city hall, library, parks and office space. “This will be the heart of the city

because we really don’t have a big downtown,” Lord said. “We’ve used the stadium, we’ve used the parks, we’ve done everything we can to bring people together, yet we’ve never had anything that really meets the need." Goodyear Civic Square at Estrella Falls project is expected to cost $83 million and will be located on 47 acres north of McDowell Road and west of the Harkins Theater near 150th Drive. Globe Corporation owns the property where the project will be built and will donate some property for the civic buildings, six or seven acres, depending

on the project size. Globe will then build a 100,000 square foot office project on the adjoining property as part of its 40-acre development. “We’re excited to enter into this public-private partnership with Goodyear,” said Mike Olsen, Globe Corporation Chief Financial Officer. “We know the Goodyear community has been asking for this type of mixeduse space for years and we’re confident this project will be the catalyst to activate the area to bring in new office, residential, restaurants and other retail options.” Butler Design Group was selected by Globe and the City of Goodyear to perform the planning and

architectural work. Goodyear Civic Square at Estrella Falls, which is expected to break ground in 2021 and be completed by mid-2022, is a long-awaited project that will serve as a highly-desirable community gathering spot for events such as festivals, concerts, and parades – creating a true sense of community. It will also create the daytime density needed to spur future development including new restaurants, retail and entertainment. “This is an important milestone for the city’s future growth,” said Lori Gary, Goodyear’s Economic Development Director. “Class A office space is lacking in the West Valley

limiting our ability to vie for these desirable office projects. Goodyear will now be able to compete to attract high-end office users, which will bring even more high-quality jobs to the area.” According to the project Letter of Intent, the project will be developed in phases. The first phase will be the Civic Square Development (new city hall, library, park space), the city infrastructure and the initial Class A speculative office building. The Civic Square Development will be paid for through $53 million in city bond funds, $14.75 million from the general fund, as well as funds from the sale of the current city hall.

Goodyear Civic Square site plan

MULTIFAMILY/SALES

$97M | 275,000 SF CAMDEN OLD TOWN SCOTTSDALE 7350 E. Stetson Dr., Scottsdale BUYER: N/A SELLER: Cottonwood Residential BROKER: N/A

$89.2M | 541,298 SF

TEMPO AT MCCLINTOCK STATION 1831 E. Apache Blvd., Tempe BUYER: The Bascom Group SELLER: Hartman Consulting, LLC BROKER: Melody West

$88.3M | 652,292 SF AVION ON LEGACY

7340 E. Legacy Blvd., Scottsdale BUYER: Simpson Housing SELLER: N/A BROKER: N/A

$84.2M | 280,000 SF ROOSEVELT ROW

330 E. Roosevelt St., Phoenix BUYER: Weidner Property Management SELLER: The Caryle Group BROKER: Cushman & Wakefield

$71.4M | 256,000 SF

THE FLATS AT SANTAN 2550 S. Santan Village Pkwy., Gilbert BUYER: Weidner Property Management SELLER: Embrey Partners BROKER: N/A

RETAIL/SALES

$53M | 297,116 SF SHOPS B & C: PHASE 1 21058-21398 S. Ellsworth Loop, Queen Creek BUYER: Vestar SELLER: N/A BROKER: N/A

$14.3M | 80,000 SF MAJOR O-J

$7.7M | 10,028 SF COYOTE STATION

$12M | 41,425 SF SILVER CREEK PLAZA

$7.25M | 19,200 SF SILVERSTONE PLAZA

21002-21102 S. Ellsworth Rd., Queen Creek BUYER: Vestar SELLER: N/A Broker: N/A

4712-4730 E. Ray Rd., Phoenix BUYER: Capstone Advisors Inc. SELLER: Vestar BROKER: Cushman & Wakefield

18 | May-June 2019

State Rt. 179 and Cortez Dr., Sedona BUYER: Brochway, LLC SELLER: Crescent Properties, LLC BROKER: Cushman & Wakefield

754 S. Val Vista Dr., Gilbert BUYER: Palm West Home Community, LLC SELLER: Mariah Properties IV, LLC BROKER: CBRE

It’s the big deals and the brokers who close them that make the market an interesting one to watch. Here are the top noteable sales for the months of March and April. Sources: Daniel Zawisha at Cushman & Wakefield Research.

OFFICE/SALES

$71.5M | 236,188 SF

THE ALAMEDA 1665 W. Alameda Dr., Tempe BUYER: Ascent Real Estate Advisors SELLER: Wentworth Property Company BROKER: CBRE

$42.34M | 457,893 SF PHOENIX CORPORATE TOWER

$17.85M | 110,766 SF STONECREEK POINTE

$23,888,888 | 247,645 SF 2020 ON CENTRAL

$12.35M | 51,465 SF GRUNOW MEMORIAL MEDICAL CTR.

3003 N. Central Ave., Phoenix BUYER: Balfour Pacific SELLER: Colony Capital, Inc. BROKER: Cushman & Wakefield

2020 N. Central Ave., Phoenix BUYER: Sperry Commercial SELLER: Arizona Central Credit Union BROKER: Colliers International

LAND/SALES

11201 N. Tatum Blvd., Phoenix Buyer: Madison Marquette Seller: Highbrook Investors Broker: Cushman & Wakefield

926 E. McDowell Rd., Phoenix BUYER: N/A SELLER: Meridan Property Company BROKER: Avison Young

INDUSTRIAL/SALES

$80M | 5,131,368 SF

NE TATUM BLVD., & BELL RD., PHOENIX BUYER: D.R. Horton SELLER: Jean M. Marley Broker: N/A

$24.6M | 3,571,920 SF 22601 S. LINDSEY RD.,

CHANDLER BUYER: TRI Pointe Home SELLER: Romspen Us Master Mortgage LP BROKER: CBRE

$23.1M | 17,336,880 SF

E. HOUSER RD., ELOY BUYER: Nikola Motor Company SELLER: Saint Holdings Broker: N/A

$16.1M | 3,228,464 SF S. SIGNAL BUTTE RD., MESA BUYER: M.A. Mortenson Company SELLER: N/A Broker: N/A

$15.8M | 5,513,825 N. 91ST AVE., PHOENIX

BUYER: Lennar SELLER: John F. Long Properties Broker: N/A

$28,437,600 | 418,200 SF

SOUTHWEST LOGISTICS CTR. 2950 S. Litchfield Rd., Goodyear BUYER: Stream Realty Partners, LP SELLER: Sun Life Financial, Inc. BROKER: JLL

$24.1M | 418,651 SF

WEST VALLEY LOGISTICS CTR. 1200 N. 132nd Ave., Surprise BUYER: Dalfen Industrial SELLER: Northstar Commercial Partners BROKER: JLL

$14,653,385 | 120,700 SF

AZ|60 BUILDING 2 1343 N. Colorado St., Gilbert BUYER: Evan Porges SELLER: McShane Development BROKER: Cushman & Wakefield

$14,056,779 | 243,000 SF

KETER PLASTICS 1300 N. Fielsta Blvd., Gilbert BUYER: Nearon Enterprises SELLER: Asset Management Consultants BROKER: CBRE

$12,346,615 | 104,900 SF AZ|60 BUILDING 1

1343 N. Colorado St., Gilbert BUYER: Evan Porges SELLER: McShane Development BROKER: Cushman & Wakefield 19

LEGISLATIVE UPDATE

Running with the Bulls in Arizona T

he State of Arizona performed quite well in 2018. In fact, it was another Top 5 year in key economic categories. Population growth ranked 4th in the nation as did job growth. State level GDP was 5th. Arizona moved from a state that was ranked as dead last in the nation for economic development strength back in 2010 to the state that has many bullish. The current year is shaping up to be yet another Top 5 performer. This did not come by accident. Credit must always be first given to overall private sector momentum, and the hard-working individuals in both small and large sized businesses that fuel the economy. But, many policymakers now also appreciate the tremendous impact government can have on economic momentum. Sometimes government needs to give the private sector a little shove to get things going, then step away when the growth becomes more self-sustaining. This is what we have seen across Arizona. Yes, there are the occasional instances where government gets a little too aggressive with incentives, but overall the state has become

20 | May-June 2019

Jim Rounds AAED

one of the top in the country for being responsible with economic development tools and calculating return on investment. More needs to be done. The 2019 legislative session thus far has proven to be what we thought it would be: a necessary step towards what will be a more embattled 2020 session. Issues such as healthcare economics, the shortages of doctors and nurses, and how all these tie into our overall economic growth are being discussed in more detail at the Capitol this year. The framework for future changes in education investment is also being assembled, albeit more privately than

in 2018. Next year there will be in depth debate on tax reform, P-20 education funding, transportation infrastructure funding, recreational marijuana, public safety pensions, and many more. The areas that seem to be gaining little ground this year, at least as of the end of March, are the taxation of digital goods. If consensus isnâ€™t achieved this session, the current bills will fail. Overall, be optimistic about the stateâ€™s future. Start planning for a mild downturn in the next couple of years or so, but get ready to rocket the economy into the next expansion. We are no longer building our economy as much as we are fine-tuning our well-oiled machine. Jim Rounds is an AAED Board Member and President of Rounds Consulting Group, Inc. The firm specializes in economic development and tax policy research; data collection and analysis; fiscal planning including revenue forecasting and budget development; strategic planning and marketing; impact and market studies; and litigation support.

EDUCATION CONSTRUCTION: Chasse Building Team members work on a classroom edition at Perry High School in Gilbert.

Arizona a leader in Alternative Project Delivery Methods T

he Arizona Builders Alliance (ABA) is the horizontal commercial construction industry’s leading advocate at the state legislature. ABA’s membership consists of general contractors, specialty subcontractors and industry partners with more than 325 member firms active at the chapter. The ABA is the Arizona chapter for two national trade associations: The Associated Builders and Contractors (ABC) and the Associated General Contractors Building Division (AGC). We advocate at the local, state and national levels for the benefit of the entire commercial construction industry. In April 2019, Governor Doug Ducey signed SB1256 into law. SB1256

Tom Dunn ABA

immediately repealed last year’s state budget negotiated requirement that all K-12 procurement contracts be hard bid. Alternative Project Delivery Methods (APDM) have been successfully administrated for 20 years

in Arizona and the rest of the nation looks to us for ideas to improve public procurement. Arizonans have been the leaders in ground breaking ideas and will continue to do so. We began working on this issue the day after last year’s session ended. Many, many people came together on this effort and special recognition must go to the ABA Board of Directors, the ABA Legislative Committee and our lobbying team for their persistence. Senate Majority Leader Rick Gray effectively championed the cause and was relentless. Workforce development has been another focus of our legislative efforts this year. The strong economic climate in Arizona has brought significant investment. Business is relocating from states that stifle growth to our state that welcomes the opportunity. Competition for talented employees is a challenge that must be addressed. No other industry has seen the demand for the skills that are required to move our economy forward. In tougher economic times, the state reduced funding for Arizona Career and Technical Education Districts. Reducing the funded programs from 4 years to 3. The reduction was costly to the students and their pathways to jobs in good paying careers. We urge the 4th year funding be restored. The 4th year student is either an incoming freshman or a recent high school graduate finishing up the program. Both receive substantial training that allows them to participate in our strong economy. Access to hands-on, state-of-theart career and technical education is necessary to meet our current workforce needs. The ABA will continue to be a vigilant advocate for the commercial construction industry. Please contact me directly at tdunn@ azbuilders.org if you have concerns or details that would benefit these efforts. Tom Dunn is president of the Arizona Builders Alliance. 21

LEGISLATIVE UPDATE

Measure twice, cut once on Wayfair

midst the usual bustle of the legislative session is a sales tax bill garnering little attention, even though Arizona taxpayers will pay between $190 million to $293 million more in sales taxes with the passage of HB2702. The Wayfair decision from the Supreme Court last summer was arguably the biggest tax decision in a generation and after months of hearing nothing about Arizona’s plan to respond, a bill dropped late which mandates remote sellers and marketplaces collect Arizona sales taxes. The GAO estimates these tax revenue increases because of two reasons: first, most consumers do not pay the use tax owed on internet purchases and so forcing remote sellers to remit the tax amounts to higher taxes collected. Second, retail taxes are higher in Arizona than use tax because counties and about one-third of cities don’t charge a use tax. This is key for the business community who pays use tax on its out-of-state purchases— their taxes will rise. Before this bill goes flying through

22 | May-June 2019

Tim Lawless

BOMA of Greater Phoenix the Legislature, the question should be asked: what are Arizona taxpayers going to get in exchange for this massive increase to state and local coffers? This change could be a vehicle for tax reform or, at minimum, an opportunity to address system challenges. The first thing that needs to be addressed before the state passes HB2702, which will create an economic nexus standard that forces remote sellers to comply with Arizona’s notoriously complex transaction privilege tax (TPT), is to meet the Supreme Court’s guidance.

In Wayfair, the Supreme Court didn’t just eliminate the old Quill physical presence standard. The majority opinion noted some states are not simplified like the defendant South Dakota and would likely place an undue burden on remote sellers in violation of the Commerce Clause. They left that issue for lower courts to decide. There are few states with more challenging sales tax systems than Arizona’s, with our independent municipal bases, myriad classifications, and complex rate structures. Not only is Arizona’s sales tax far different than most states, our cities base of definitions can all be different from the state in a variety of ways. It’s so cumbersome, Arizona businesses who already are physically here struggle with compliance. The underlying bill, which the sponsor has graciously offered to fix, is riddled with problems such as only asking for base conformity (related to definitions), and only in the retail classification. Worse, it appears the Department of Revenue (DOR) hasn’t been involved in figuring out this difficult task. DOR told a room full of stakeholders that some nine total classifications are affected by remote sales, not just the retail class. It was clear to the business community DOR is not ready to implement this law. One outcome is certain: Arizona is bound to face litigation which could tie this law change up in court for years if not done properly. Though Wayfair provides an opportunity to apply sales tax laws beyond our borders, we cannot squander it with a failed effort landing us in court. Moreover, simple fairness demands we not treat small businesses in a manner we would not want foisted on our own. The good news is it appears all parties want to see this happen because everyone has something to gain: revenue for government; fairness and simplification for taxpayers. That said, massive reform should be done methodically to avoid litigation and avoidable mistakes. Tim Lawless is the Executive Director of BOMA of Greater Phoenix.

Improving fairness and predictability for speculative builders W

ith the economy humming along and confidence generally high, more developers are building speculative office projects. A significant hindrance to these projects, however, has been the Speculative Builder Tax. This is a city tax, outlined in the Model City Tax Code (MCTC), that cities levy on the sale of property by speculative builders. The Speculative Builder Tax is levied on the total selling price of an improved real property when an owner/ developer sells the property within 24 months of substantial completion. Tax rates range by city from just over 2 percent to 5.5 percent. The tax was designed in the 1980s to provide consistency across cities’ codes related to prime contracting taxes. Over the years, however, certain cities and the Arizona Department of Revenue (ADOR) began to apply this tax more aggressively and in circumstances beyond the original intent. Due to broad definitions in the MCTC and the ability of each city to determine taxability, developers have faced unexpected tax bills and a lack of uniformity in tax treatment from city to city and from project to project. For example, while the tax was designed to apply only to new construction, in some cases cities were applying the tax to

Suzanne Kinney

Arizona Chapter of NAIOP redevelopment. In other cases, a property would change hands several times within the 24-month period after substantial completion. Cities were levying the tax on the total selling price each time the property changed ownership. As a result of these and other aggressive actions by cities and ADOR, prospective buyers began requesting taxpayer rulings in advance of the sale. This uncertainty slowed down project sales. Further, successor liability was leaving potential buyers wary because some cities required the purchaser to pay the Speculative Builder Tax if the seller had failed to do so. This legislative session, NAIOP took on the Speculative Builders Tax by running legislation designed to fix the

primary impediments that developers had been facing. First, we ran two identical bills – HB2537, sponsored by Rep. Ben Toma (R-Peoria); and SB1367, sponsored by Sen. J.D. Mesnard (R-Chandler). These bills, which had broad support from members of the Legislature, prompted the League of Cities and Towns to engage in negotiations with us. After lengthy conversations facilitated by our bill sponsor Rep. Ben Toma, NAIOP and the League of Cities and Towns were able to come to an agreement on the major issues. Together, we crafted amendments to the MCTC which were approved by the MCTC Commission on February 22. These changes went into effect for all 91 cities in Arizona on April 1. The major provisions are: ■ Clarify that redevelopment is not taxable. Only newly constructed buildings will be subject to the tax moving forward. ■ Prohibit pyramiding of the tax. An owner/developer will receive a tax credit for speculative builder taxes paid by the previous owner(s). ■ Prior improvements to land not taxed. When a developer sells raw land on which an improvement was constructed more than 24 months prior to sale, the property will not be subject to speculative builder tax. ■ Commercial property shells not taxed. When a developer builds a shell building and sells the property more than 24 months after substantial completion (certificate of completion), the property will not be subject to speculative builder tax. The addition of tenant improvements after the completion of the shell will not impact the taxability. ■ Lease value is exempted. The gross proceeds of sales or gross income from existing tenant leases in place at the time of the sale is exempt from tax. These improvements to the MCTC provide enhanced certainty for developers and buyers. More importantly, they remove deterrents to redevelopment projects that contribute to economic activity in cities and towns throughout Arizona. Suzanne Kinney is President and CEO of the Arizona Chapter of NAIOP. 23

AZCREW

Building a talent pool AZCREW programs advance women of commercial real estate at all ages By ERIN BRASSEY

omen are continuing to break stereotypes across all industries, and real estate is no exception. Enter CREW Network, Commercial Real Estate Women. Founded in 1989 with a goal of expanding the number of women in commercial real estate and promoting those already involved. The organization consists of more than 75 markets worldwide. CREW Network CEO Wendy Mann explained that the organization stands on four pillars: a business network, leadership skills development, research and career outreach. The business pillar provides members with an opportunity to network and build connections in their career. Members can also utilize CREWbiz technology which is a membership database that allows members to reach out on their own to make connections. CREW Network wants to see its members continuing to learn and grow as real estate professionals. This goal is achieved through events and programs that AZCREW offers each year in alignment with the leadership skills development pillar. According to Mann, these include two leadership summits, a convention and a leadership certificate program that provides women with professional training, which in turn can be applied to their own workplace. “Executive presence, confidence, negotiation skills – these are all critical ways that we can build the talent pool in terms of high potential women for executive leadership positions,” Mann said. The research pillar is exemplified by its goal to increase and distribute

24 | May-June 2019

information about the commercial real estate field. They produce white papers every year and a benchmark study every five years which show the data on women and their impact on commercial real estate. Finally, the Crew Careers and UCrew programs are led by the local chapters across the country supporting the career outreach pillar. The programs involve spreading information about opportunities available in commercial real estate to young professionals. THE IMPORTANCE OF PROGRAMS Heather Fox of the Arizona chapter discussed this important piece of AZCREW and said, “(The career outreach programs) are primarily outreach to young women and girls, that includes high school as well as college, in order to educate and bring awareness to the fact that commercial real estate is a very rewarding, challenging and excellent career option.” Mann said there are three main ways chapters spread information through career outreach to high school students; these include education days, shadow days and challenges. The time spent with students allows members to share information about all aspects of commercial real estate. “Everything from the finance side to the building side — meaning architecture, design, engineering — and then also the development side — how do you find a piece of land and decide what to develop and how do you do a deal in development,” Mann said. During education days, members of local chapters will spend a day with high school juniors and seniors informing them about the

Heather Fox

Wendy Mann

opportunities waiting for them in a career in commercial real estate. For shadow days, students interested in jobs in commercial real estate will spend a day shadowing a professional. Finally, some chapters hold challenges for a more immersive experience when learning about commercial real estate. Within these challenges, girls are divided into teams and given a piece of land in their community and asked to decide how they would develop it. CREW Network helps to continue women’s education by providing scholarships to students pursuing commercial real estate as either an undergraduate or graduate student through the CREW Network Foundation. According to Mann, the foundation awards $5,000 scholarships each year to 20 different women, but CREW Network’s assistance doesn’t stop there. Local chapters set up an outreach program known as UCREW for juniors and seniors in commercial real estate programs at universities. The students come together to shadow and network with professionals in commercial real estate to receive more knowledge about the field and the opportunities available. AZCREW has started a pilot

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AZCREW

AZCREW: Above, the AZCREW Board of Directors; at right, members of AZCREW pause for a photo during a membership event.

program with the Master in Real Estate Development, (MRED), program at Arizona State University. “All of the MRED students have a membership in CREW Network and that also includes a membership at AZCREW,” Fox said. “So we’re working with them to explore and figure out how to engage the undergraduate and the graduate students.” STARTING EARLIER This is also the first year that AZCREW is bringing the Crew Careers program into high schools. Currently, the only school districts that have the program in place are the Phoenix Union and Tempe Union school districts, but “We hope to invite many more students and include all of the school districts, if possible, as this grows,” Fox said. AZCREW is looking to continue growing its programs and chapter while spreading awareness about careers in commercial real estate. “The goal is really to provide outreach to the young folks that attend, letting them know that commercial real estate is a valid, rewarding, awesome career for them to consider,” Fox said. CREW Network as a whole wants 26 | May-June 2019

to keep working towards global expansion. According to Mann, there are two challenges that CREW Network must continue to meet in order to make this happen. “We have an obligation within our strategic plan to continue to elevate women and create opportunities for women through our training and development and partnerships with our company partners,” Mann said. The other piece to the puzzle is creating diversity and inclusivity for all women in company leadership positions. “I would like to grow our engagement with our sponsor companies on how we collectively together grow this diversity and inclusion piece,” Mann said. It is important to not only have diverse people at a company but to also make sure everyone feels included, Mann added. CREW Network wants to continue expanding its own diversity by opening chapters and inviting more women into their network from all over the globe. Commercial real estate is a career option that’s great for all types of personalities and backgrounds, which is what AZCREW under CREW Network is trying to share with the world. “The idea is that everyone’s unique, and they have unique skills and interests,” Mann said. “There’s something for everyone in commercial real estate.”

LEARN MORE WHAT IT IS: AZCREW is the leading organization for senior-level executive women in the Phoenix Metro real estate industry. As part of CREW Network, the industry’s premier networking coalition, AZCREW is dedicated to advancing the success of women in commercial real estate. CREW Network’s membership of more than 11,000 professionals in more than 70 major global markets represents all aspects of commercial real estate, providing members with direct access to real estate professionals across all geographies and disciplines. WHAT HAPPEN: AZCREW members are empowered by sharing their knowledge and experience with others in their community, while also learning from the insight and know-how of others. That’s why AZCREW focuses its efforts on networking luncheon programs as well as hosting annual local fundraising events such as GolFiesta and Black & White Affair. In growing and strengthening its network, AZCREW aims to create more opportunities for women in commercial real estate. INFORMATION: arizonacrew.org

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AZRE spotlights the commercial real estate brokers from Arizona who closed the most business in 2018

TOP PRODUCERS Avison Young

1. Mark Seale — Principal, Director of Brokerage Services 2. Alexandra Loye — Principal 3. Bret Isbell — Senior Vice President 4. Laurie Sandau — Associate 5. Julie Johnson — Principal

NOTABLE DEAL:

Avison Young Arizona represented Great Western Bank on three lease transactions in 2018 with the most recent being a 10-year lease for 8,410 SF of office space and 2,531 SF of retail space.

Colliers International 1. Todd Noel — Office 2. Cindy Cooke — Multifamily 3. Ryan Timpani — Office 4. James Meng — Hospitality 5. Mindy Korth — Investment

6. Philip Wurth — Office 7. Greg Hopley — Office 8. Jon Grantham — Hospitality 9. Rob Martensen — Industrial 10. Brad Cooke — Multifamily

CBRE 1. (tie) Tyler Anderson — Multifamily 1. (tie) Sean Cunningham — Multifamily 1. (tie) Asher Gunter — Multifamily 1. (tie) Matt Pesch — Multifamily 5. Rocco Mandala — Debt & Structured Finance 6. Barry Gabel — Office 7. Brad Anderson — Office 8. Bryan Taute — Office 8. Kevin Calihan — Office 10. Bruce Francis — Debt & Structured Finance

NOTABLE DEAL:

CBRE represented Liberty Property Trust in the $255M sale of a fivebuilding, 806,000 SF office portfolio comprised of Liberty Center at Rio Salado and 8501 E. Raintree Dr. 30 | May-June 2019

NOTABLE DEAL:

Colliers International completed a $21.8 million lease deal for the Blackhawk Corporate Center 1, 20401 N. 29th Ave., Phoenix.

2018

TOP PRODUCERS TENANT ADVISORY GROUP

OFFICE ADVISORY GROUP

Chris Nord

Jerry Roberts

TOP OVERALL PRODUCER

Eric Wichterman

INDUSTRIAL ADVISORY GROUP

Andy Markham

Mike Haenel

Peter Menna

Jim Wilson

Chad Littell

Will Strong

Michael Hackett

Ryan Schubert

CAPITAL MARKETS - MULTIFAMILY

Devpal Gupta

RETAIL ADVISORY GROUP

Adam Madison

Chris Toci

CAPITAL MARKETS - RETAIL

TENANT ADVISORY GROUP

Larry Downey

CAPITAL MARKETS INDUSTRIAL

CAPITAL MARKETS - OFFICE

Steven Nicoluzakis

Dave Fogler

Jim Crews

Mike Beall

Chris Walker

OFFICE ADVISORY GROUP

Chris Hollenbeck

Greg Mayer

CAPITAL MARKETS - OFFICE/INDUSTRIAL

Jeff Wentworth

CAPITAL MARKETS SELF-STORAGE

2555 E Camelback Rd, Suite 400 Phoenix, AZ 85016 Steve Lindley

Tracy Cartledge

Bob Buckley

Paul Boyle

+1 602 954 9000 cushmanwakefield.com

TOP PRODUCERS

Commercial Properties, Inc. 1. Leroy Breinholt 2. Tyson Breinholt 3. Matt Zaccardi 4. Brandon Koplin

NOTABLE DEAL:

5. Eric Jones 6. Jeff Hays 7. Darin Edwards 8. John G. Soldo

9. Thomas Semancik 10. Craig Trbovich

The Commercial Properties Inc. multifamily team of Kimbery Rollins and Dallan Randall negotiated the $11.35 million sale of The Grove at Palm Lane, a 42 unit multi-family property at 2000 N. 36th St., Phoenix.

CRESA 1. Gary Gregg 2. Jason Wery 3. Mike Gordon

4. Ashley Snyder 5. Eric Walker 6. Chris Walton

NOTABLE DEAL:

7. Ted Lilles 8. Scott Maxwell 9. Ryan Burkett 10. Rod Beach

CRESA project management team member Cory Shepard led the $7.5 million tenant improvement project deal for the Indeed. com Regional Office, 4343 N. Scottsdale Rd., Scottsdale.

Cushman & Wakefield 1. Chris Nord 2. Jerry Roberts 3. Eric Wichterman 4. Mike Haenel, Andy Markham, Will Strong 5. Chris Toci 6. Ryan Schubert, Michael Hackett 7. Larry Downey 8. Peter Menna, Devpal Gupta 9. David Fogler, Steven Nicoluzakis 10. Jim Crews

NOTABLE DEAL:

The Cushman & Wakefield team of Chris Toci, Chad Littell, Greg Mayer and Jim Wilson represented Ryan Companies in the $67 million sale of the McKesson Scottsdale Campus, 5601 N. Pima Rd., Scottsdale 32 | May-June 2019

2018 TOP PRODUCERS CONGRATULATIONS!

A+

Todd Noel,

Cindy Cooke

Ryan Timpani

Senior Executive Vice President Office Properties

Senior Executive Vice President Multifamily Properties

Executive Vice President Office Properties

CCIM

James Meng

Mindy Korth

Philip Wurth,

Senior Vice President Hospitality Properties

Executive Vice President Investment Properties

Executive Vice President Office Properties

CCIM

Greg Hopley

Jon Grantham

Rob Martensen,

Executive Vice President Office Properties

Vice President Hospitality Properties

Executive Vice President Industrial Properties

SIOR, CCIM

Brad Cooke

Phil Breidenbach,

Kathy Foster,

Executive Vice President Multifamily Properties

Executive Vice President Office Properties

Senior Vice President Office Properties

SIOR

Jim Keeley

Paul Sieczkowski,

Charles Miscio

Founding Partner Scottsdale Senior Executive Vice President

Senior Executive Vice President Industrial Properties

Executive Vice President Office Properties

SIOR, CCIM

William Littleton, SIOR, MCR, SLCR

Senior Executive Vice President Corporate Services

MCR.W

SIOR

Phoenix +1 602 222 5000 Scottsdale +1 480 596 9000 Flagstaff +1 928 440 5450 colliers.com/arizona

TOP PRODUCERS DAUM 1. Chris Rogers 2. Trevor McKendry 3. Bob Lundstedt 4. David Wilson 5. Mike Wallis

NOTABLE DEAL:

DAUM Commercial Real Estate Services directed three land transactions for a total of $20 million and 47 acres in the Deer Valley submarket. DAUM's Bob Lundstedt and Kirk Jenkins directed the complex transactions.

De Rito Partners 1. Marty De Rito 2. Paul Serafin 3. Chris Corso 4. Morey Fischel 5. Michael Franks

6. Justin Rihs 7. Carl Jones 8. Jeff Schonberger 9. Steve Bonnell 10. Lizette Borbon

NOTABLE DEAL:

Paul Serafin and De Rito Partners represented the landlord on the Staybridge Suites Scottsdale-Talking Stick project at 9141 E. Hummingbird Lane in Scottsdale.

Insight Land & Investments 1. Tracy Glass 2. Tony Bagneschi 3. Bryan Waggoner 4. Ken Reycraft

NOTABLE DEAL:

5. John Knudson 6. Matt Rinzler, Jeremy Lovejoy, Brian Stillman

Insight Land & Investmentsâ€™ Dave Mount represented the owners in a deal for 1,130 acres in Southwest Avondale that will become Alamar, a development by Brookfield Residential.

34 | May-June 2019

TOP PRODUCERS

JLL

Kidder Mathews

1. Pat Williams, Steve Corney, Andrew Medley, Vicki Robinson and Chris Corney 2. John Cunningham and Charles Steele 3. Anthony J. Lydon, Marc Hertzberg, Riley Gilbert and John Lydon 4. Mark Bauer and Kevin Bauer 5. Steve Larsen (solo team)

1. Darren Tappen — Investments 2. (tie) Fletcher Perry and Michael Dupuy — Healthcare 4. Jenette Bennett — Retail 5. Matthew Ault — Retail 6. (tie) Michael Ciosek and Eric Bell — Industrial 8. Michelle Gardner — Office 9. Mike Kasulaitis — Industrial 10. Aric Adams — Industrial

NOTABLE DEAL:

The JLL tenant representation team negotiated a 130,000 SF transaction (with expansion options) for The Vanguard Group. This transaction, completed with Equus, will bring more than 1,000 new jobs to Scottsdale.

NOTABLE DEAL:

The Kidder Mathews team negotiated a $34 million deal for the Blackhawk Corporate Center Portfolio sale, 20401 N. 29th Ave., 2902 and 3010 W. Agua Fria Fwy., Phoenix.

LevRose 1. Trenton McCullough/Mark Cassell — Multi Tenant Retail Investments 2. Zak Kottler/Joe Cosgrove/Hunter Chasse — Office/Flex Sales and Leasing 3. Keri Davies/Jason Reddington — Office Sales and Leasing 4. Michael Waxman/Foster Bundy — Office Sales and Leasing 5. Matt Leonard/Hunter Peek — Office Sales and Leasing

NOTABLE DEAL:

Zak Kottler and Joe Cosgrove of LevRose brokered the $5.5 million deal for two properties, 15555 and 15575 N. 79th Place, in the Scottsdale Airpark area.

36 | May-June 2019

TOP PRODUCERS Marcus & Millichap 1. Peter Katz (IPA) 2. (tie) Jamie Medress and Mark Ruble 4. (tie) Steve Gebing and Cliff David (IPA) 6. Chris Lind 7. Hamid Panahi 8. Pete Te Kampe 9. Richard Butler 10. Joshua S. Tammen

NOTABLE DEAL:

Marcus & Millichap brokered the deal for Escape Apartments, 4700 N. 16th St., Phoenix.

Nathan & Associates 1. Nate Nathan, Ryan Duncan, Max Nathan, Courtney Buck 2. David Mullard, Casey Christensen, Amy Waters, April Williams 3. Daniel Baldwin, Sean Gillespie, Valerie Haupt, Amber Young 4. Don Gerron, Jennifer Nuss, Sarah Thoren, Joseph Colucci, Hannah Thoren

NAI Horizon 1. Denise Nunez — Investment sales (Self storage) 2. Mark Wilcke — Industrial 3. Chris Gerow — Retail 4. Shelby Tworek — Retail 5. Tyler Smith — Office 6. Laurel Lewis — Office 7. Lane Neville — Investment sales 8. Barbara Lloyd — Investment sales 9. Matt Harper — Retail 10. Gabe Ortega — Retail

NOTABLE DEAL:

The NAI Horizon team of Lane Neville, Barbara Lloyd and Logan Crum negotiated a $14 million investment acquisition of the Deer Valley Center, a 128,569 SF portfolio at 4123-4273 W. Thunderbird Rd., Phoenix.

38 | May-June 2019

NOTABLE DEAL:

Nathan & Associates negotiated a $60.5 million sale of 257.83 acres of land to Toll Brothers for the planned Sereno Canyon development in north Scottsdale, which will feature 299 home sites and 176 acres of open spaces.

CONGRATULATIONS TO OUR TOP PRODUCERS FOR 2018

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Congratulations to our 2018 Top Producers!

The sky is the limit

Denise Nunez

Mark Wilcke

Chris Gerow Shelby Tworek Retail

Retail

Tyler Smith

Laurel Lewis

Lane Neville

Barbara Lloyd

Matt Harper

Gabe Ortega

Investment Sales (Self Storage)

Office

Industrial

Office

Retail

Brokerage • Property Management

Investment Sales

WE KNOW BOXES.

Investment Sales

Retail

602 955 4000 • naihorizon.com

TOP PRODUCERS

Newmark Knight Frank 1. Mike Garlick, Chris Krewson, Mike McQuaid — Office 2. Ryan Ash — Multifamily 3. Tom Adelson — Office 4. Kathleen Morgan — Medical Office 5. CJ Osbrink — Capital Markets 6. Joe Doucett — Retail 7. Trisha Talbot — Medical Office 8. Michael Crystal — Office 9. Brett Polachek — Multifamily 10. Tim Westfall — Retail

NOTABLE DEAL:

Newmark Knight Frank negotiated the sale for the recently renovated The Quad at 6300 E. Thomas Rd., Scottsdale. The Quad offered the buyer one of the only true creative campusstyle office projects within the Greater Phoenix area.

ORION Investment Real Estate 1. Michael Achtman & Jennifer Eggert 2. Judi Butterworth 3. Joseph Dietz 4. Bob Farrell 5. Andrew Harrison 6. Larry Kush

7. Nick Miner, CCIM 8. Zack Mishkin 9. Ari Spiro 10. Sean Stutzman

NOTABLE DEAL:

ORION Investment Real Estate negotiated the $16 million sale of 7 Thousand Shea, an iconic, 145,000 SF, mixed-use property located in Scottsdale.

Plaza Companies 1. Bill Cook 2. Perry Gabuzzi 3. Margaret Lloyd 4. Megan Reeves

NOTABLE DEAL:

Megan Reeves and Bill Cook represented owner, ARHC PRPEOAZ01, in signing Daniel L. Bangart, DPM, at Plaza del Rio Medical Center I, 13660 N. 94th Dr., Peoria. Total lease value was $3.3 million, 6,800 SF, 17-year deal.

40 | May-June 2019

SVN | Desert Commercial Advisors 1. Rommie Mojahed 2. Justin Horwitz 3. Mary Nollenberger 4. Beau Flahart 5. Paul Borgesen III

6. Carrick Sears 7. Danny Lee 8. Jonathan Levy 9. Nicole Ridberg 10. Vicente Cantua

NOTABLE DEAL:

SVN | Desert Commercial Advisors negotiated the deals on leases for an entire new retail center, totaling $12 million in lease deals, for a development at Gilbert and Ocotillo roads in Chandler.

SRS 1. Ed Beeh 2. Chuck Gibson 3. Mike Polachek 4. Robbie Petty 5. Sean Thomas

6. Alan Houston 7. Brian Polachek 8. Brad Balbo 9. Scott Ellsworth 10. Sean Lieb

NOTABLE DEAL:

SRSâ€™s Scott Ellsworth represented the tenant, Carvana, on its eye-catching Carvana Vending Machine facility at Scottsdale Road and the Loop 202 in Tempe.

Velocity Retail Group 1. Dave Cheatham & Darren Pitts 2. Brian Gast

NOTABLE DEAL:

Darren Pitts represented the buyer of the LifeTime Fitness, 2502 E. Camelback Rd., Phoenix, which will be the first Diamond level club in Arizona, featuring luxurious amenities, expansive pool deck, child care center, spa and cafe, world-class trainers and the hottest classes. 41

HEALTHCARE

RISING to meet demand By STEVE BURKS

s the population in Arizona grows rapidly, so does the need for healthcare facilities to treat these new residents. In all corners of the Valley, new healthcare facilities are rising out of the ground, or expanding their footprint. Here is a look at some of the more significant projects either underway or recently completed in Arizona:

42 | May-June 2019

ADELANTE HEALTHCARE GOODYEAR

HEALTHCARE MAYO CLINIC EXPANSION (Ongoing) The Arizona Forward Project is a five-year plan that will add 1.4 million square feet of building space to the world-renowned Phoenix campus at the Loop 101 and 56th Street in Phoenix. The expansion will increase the number of inpatient beds from 280 to 374 by 2023. There are several general contractors and architectural firms that will be working on the various parts of the massive expansion, which will total $650 million.

BANNER OCOTILLO MEDICAL CENTER (Ongoing)

Banner Health is making a $150 million investment in the fast-growing East Valley with its latest healthcare facility. Banner Ocotillo is a four-story, 245,000-square-foot hospital that will be located on the southeast corner of Alma School Road and Loop 202 Santan Freeway. It will open with approximately 96 beds and offer imaging, surgery, labor and delivery, intensive care and an emergency room. The hospital will have room for expansion as the community needs require more services. Okland Construction is serving as the general contractor for the facility, which was designed by SmithGroup.

44 | May-June 2019

HEALTHCARE BANNER BOSWELL MEDICAL CENTER EXPANSION (Ongoing) This project actually became a two-phase expansion, beginning in March 2018 with the announcement that Banner Health and the Sun Health Foundation were teaming up to construct a $60.4 million emergency room on the campus. In late September, Banner Health’s board of directors approved expanding the project to include construction of a new six-story patient tower shell. Banner Health and its construction partners determined that building the two projects at the same time would ultimately save on costs and be less disruptive to the medical center’s operations as well as the surrounding community.

DIGNITY HEALTH MERCY GILBERT MEDICAL CENTER EXPANSION (Ongoing)

The Women’s and Children’s Pavilion is an approximately $100 million partnership project between Dignity Health and Phoenix Children’s Hospital. The pavilion will be a five-story, 373,947-square-foot building, which will include 24 labor and delivery rooms — including six dedicated to high-risk patients — and 48 postpartum beds, operated by Mercy Gilbert. It will also include an emergency department dedicated to obstetrics. Phoenix Children’s will operate 48 pediatric beds, a 12-bed pediatric emergency department, pediatric operating rooms and a new 60-bed Level 3 neonatal intensive care unit (NICU). CannonDesign is the architecture firm on the project, which will be built by JE Dunn.

46 | May-June 2019

The new patient tower, which will partially sit atop the new emergency room, will become the new main entry point for the hospital when it’s completed in the fall of 2020. In addition to a new emergency department (ED), the project will renovate and convert the current 17,000-square-foot ED into a new unit for patients requiring short-term observation. The new ED will increase the number of beds from 42 to 56, allowing the hospital to care for up to 60,000 emergency department patients annually. The current ED was built to handle up to 45,000 patients annually.

HEALTHCARE HONORHEALTH SONORAN MEDICAL CENTER CAMPUS (Ongoing)

The North Valley will be getting this new, 210,000-square-foot facility in late 2020. This facility will form the centerpiece of the HonorHealth Sonoran Medical Center campus in North Phoenix. This hospital will open with 40 beds, with the ability to expand to nearly 80. It will feature 24-hour emergency care for patients of all ages, as well as comprehensive obstetrical and gynecological care, including prenatal and postpartum care, labor and delivery services, and a Level II neonatal intensive care unit. McCarthy Building Companies is the general contractor of this $170 million project, which was designed by Devenney Group Architects.

DIGNITY HEALTH CHANDLER REGIONAL MEDICAL CENTER EXPANSION (Ongoing)

This project, with a price tag of nearly $200 million, will add a five-story patient-care tower and a new parking structure to the Chandler Regional Medical Center campus. The new tower, Tower D, will add 132 additional patient beds. The renovations will mean space for eight new surgical suites, and expansions of key outpatient services and operational departments. McCarthy Building Companies is the general contractor on the facility, and Devenney Group is the architects on the expansion.

WEST VALLEY PRIMARY AND SPECIALTY CARE CENTER (Ongoing) This was the first phase of a massive transformation initiative set forth by Maricopa Integrated Health System, which will soon change its name to Valleywise Health. The care center, located on 20 acres at Grand Avenue and Cotton Crossing in Peoria, broke ground in January of 2018. It is a three-story, 127,000-square-foot ambulatory care facility including behavioral health, urgent care, a dental clinic, dialysis clinic, pharmacy, lab, four operating rooms, two major procedure rooms, preop and recovery and on-site sterile processing. It is scheduled to open in early 2020 It was the first part of the MIHS â€œCare Reimaginedâ€? transformation that could total more than $1 billion in investment. MIHS purchased and is in the middle of renovating Maryvale Hospital in Phoenix, transforming it into a 203-bed behavioral health hospital. Okland Construction is building the West Valley facility, which was designed by Hobbs+Black Architects. 48 | May-June 2019

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HEALTHCARE PALM VALLEY MEDICAL CENTER (Ongoing) While this project is not a hospital, it stands out from the other medical office buildings being constructed in the Valley. PMB, a healthcare real estate owner and developer, is taking a former 14-screen movie theater complex in Goodyear and turning it into 50,000 square feet of medical office space. The $16 million adaptive re-use project, located at 1325 N. Litchfield Rd., is situated next to the Abrazo

BANNER — UNIVERSITY MEDICAL CENTER TUCSON NEW PATIENT TOWER (Opened April 2019)

Nearly four years under construction, the $446 million tower features 228 private rooms, 20 new operating rooms, new diagnostic imaging and cardiac catheterization labs, a new cafeteria and stunning views of Tucson and the Santa Catalina mountains. The new tower is located at 1625 N. Campbell Ave., Tucson. With this 670,000-square-foot tower expansion, Banner – UMC Tucson’s capacity will increase from 479 to 649 licensed beds. Adult ICU beds, always in high demand at Banner – UMC, will increase by 96 beds. The tower’s entire fifth floor will be devoted to women’s and infant services, with 12 light-filled labor and delivery suites and 24 maternity rooms. Other tower features include: All private rooms with private bathroom and shower; telehealth capabilities in all ICU rooms; tatient lifts provided in most patient rooms for staff and patient safety; recliners and sleeper sofas in each patient room: and telemetry monitoring on all floors. The tower was designed by Shepley Bulfinch, The lead contractor was a joint operation between Sundt and DPR.

50 | May-June 2019

West Campus, a community hospital and Level 1 Trauma Center. The Palm Valley Medical Center will expand the Abrazo West Campus footprint and offer outpatient services in internal medicine, pain management, physical therapy, imaging, and wound care. AK-SAR-Ben Companies is the general contractor on the project, which was expected to be completed in May, and SmithGroup was the architect.

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HEALTHCARE ADELANTE HEALTHCARE GOODYEAR (Opened Dec. 2018)

The newest facility in Goodyear rolled out in two phases â€” first, family and internal medicine, as well as specialty care started serving patients in December of 2018; then, in February, the dental, womenâ€™s health and behavioral health programs were implemented. The 45,000-square-foot facility is uniquely designed on seven acres, located at 13471 W. Cornerstone Blvd. LGE Design Build was the general contractor on the project, with Cawley Architects designing the building.

BANNER ESTRELLA MEDICAL PLAZA II (Opened Dec. 2018)

Banner Estrella Medical Center is a 317-bed, full-service community hospital offering a variety of medical services, including cardiac care, emergency services, maternity services, orthopedics and general surgery. It is a state-of-the-art, Class A, 64,000-square-foot medical office building designed to compliment the existing hospital and nearby medical buildings. The facility, located at 9321 W. Thomas Rd., Phoenix, opened in December of 2018 and was developed by Plaza Companies. Butler Design Group was the architect on the project, which was built by Okland Construction.

52 | May-June 2019

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HEALTHCARE

CARING FOR THE CARETAKERS Modern healthcare facilities pay close attention to staff, function, comfort By STEVE BURKS

54 | May-June 2019

CHANDLER REGIONAL MEDICAL CENTER

n the healthcare market, workforce issues are a mixed bag. On one hand, The Association of Medical Colleges is predicting a shortage of between 40,800 and 104,900 physicians by 2030. On the other, projection models by the Health Resources and Services Administration is showing that by 2030, the estimated growth in registered nurse (RN) supply will outpace the estimated demand by 11 percentage points.

HEALTHCARE

UNIVERSITY OF ARIZONA CANCER CENTER

There is expected to be a healthy number of nurses (both RN and LPN — licensed practical nurse) nationwide, but some states will have a nursing shortage, as other states like Florida, Ohio, Virginia, New York and Texas attract a higher number of healthcare workers. So how does Arizona combat this impending trend and attract and retain enough healthcare professionals? One way is to put more focus on building facilities that not only cater to patients, but to staff as well. Gone are the stark white, sterile hospitals of the past that were bland and dull. They are being replaced by modern, attractive and more functional facilities that look more like a high-end offices than a hospital. “Corporate America has already tapped into the potential of the work environment to meet the needs of their employees, attract future talent, and drive productivity and engagement,” said A.J. Thomas, senior project manager and principal for the Corgan Healthcare Studio in Phoenix. “While these corporate trends often need to be modified and adapted for the hospital setting, they offer healthcare design a powerful opportunity to support the psychological and physical pressure on employees, express values of well-being and mindfulness, and create a space that is a natural extension and agent of that culture.” New healthcare facilities, large and small, like the Banner — University Medical Center Tucson and Adelante Healthcare Goodyear look like Class A office projects. They feature a lot of natural lighting, and a modern, functional design and feel. One of the biggest issues for healthcare workers is the amount of time they spend on their feet. Newer facilities take those factors into account and design the spaces that staff use to help save time and steps. 56 | May-June 2019

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HEALTHCARE

“Medical staff are on their feet constantly, so much attention is paid to their movement,” said Sean Slawson, project director for McCarthy Building Companies’ Southwest Region. “Some examples of ways that staff movement is reduced include more convenient locations of the medical dispensary, desks and work areas, cafeteria and kitchen locations, as well as providing the convenience of ‘grab-and-go’ meal and drink options in the lobby to better serve all who come into the facility.” Thomas also stated that staff movement was at the forefront of healthcare facility design because as the staff moves more efficiently through the space, the patient care will naturally improve. “Off-stage work zones, LEAN planning and supply carts, for instance, reduce waste, minimize distance between tasks and streamline day-to-day activities,” Thomas said. “Technology incorporated throughout the facility helps provide staff, especially more tech-reliant Millennials, passive monitoring and better manage workflows.” Technological advances are also key to staff longevity. Slawson 58 | May-June 2019

“Corporate America has already tapped into the potential of the work environment to meet the needs of their employees, attract future talent, and drive productivity and engagement” – A.J. Thomas, senior project manager and Principal for the Corgan Healthcare Studio noted that new facilities have large communication centers that track staff movement and help patient room turnover be more efficient. Also, more simply, modern hospitals provide patient lifts that make transferring a patient on and off their bed much safer for all involved. At Banner — University Medical Center Tucson, patient lifts are standard in patient rooms.

VERDE VALLEY MEDICAL CENTER

When healthcare workers aren’t treating patients, they don’t want to walk into break rooms with white, tile floors and plastic chairs spread around a table. “Rather, amenities that permit staff to choose their location, make personal adjustments to the environment, or care for their well-being add valued comfort and respond to the unique needs of overextended nurses and healthcare staff, who are often more concerned about where they can store their water bottles during their shift for easy access,” Thomas said. “Break rooms like the physicians lounge planned at Flagstaff Medical Center are inspired by the arrangement of local coffee shops and can be activated as flexible spaces with bar tops to plug in and stay connected, round tops for a quick bite, and lounge chairs for a small break or casual conversation. Residential influences from material selection to furniture curation balance the clinical environment and, in turn, help improve staff satisfaction, performance, and engagement.”

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Featured topics include:

• The Most Influential Women in Commercial Real Estate • A look at how the East Valley has become a hot spot • for real estate development • • • •

The latest tends, challenges and opportunities in Arizona’s construction industry A look at how the latest technological innovations are changing commercial real estate

For additional information call 602.277.6045 or visit azBIGmedia.com 59

DOWNTOWN

Central focus Phoenix continues to see new growth up and down Central Ave. By STEVE BURKS

60 | May-June 2019

t has long been an afterthought on where the latest, greatest development is happening in the Valley, but the Downtown Phoenix area is quickly becoming the place to do business or just be. Downtown Phoenix has a distinct air of excitement among real estate developers, with several projects ready to come online in 2019 and plenty more coming in the next few years. There has also been a steady stream of companies opening offices in the downtown corridor, which runs from roughly Central Avenue and Lincoln Street in the South up to Camelback Road. The area spans the Warehouse District, Roosevelt Row Arts District and Midtown.

DOWNTOWN

LINCOLN UNION: The former Coors distribution facility in the Phoenix Warehouse District is getting new life as a creative office space.

The reasons for all of this activity in Central Phoenix are varied. The area is perfectly situated in the middle of the metro area and features city and state government offices and courts. Major freeways are close and public transportation can take you conveniently to Tempe and Mesa in the East Valley. The most consistent answer to the question about what is driving this recent downton growth is the effect of Arizona State University's Downtown Campus, which brought 15,000 students to an area that was starving for new life. “The student population growth is awesome and the Phoenix biomedical campus growth is great,” said R.J. Price, chief marketing officer for Downtown Phoenix Inc., an organization that advocates for the Downtown Phoenix market and assists people and companies looking to relocate to the area. “All of the people who are coming downtown to work or learn are liking what they’re seeing and they are deciding that it’d be nice if I could just walk to class or walk to my job, so they are filling up these apartment units as quick as they go up.” 62 | May-June 2019

Along with ASU’s arrival downtown, the 28-acre Phoenix Biomedical Campus — devoted to biomedical research facilities — and the University of Arizona College of Medicine in Phoenix has grown to 1.6 million square feet. All of this has sparked a big rush in residential units in the area. By 2021, there is expected to be more than 10,000 new residential units built in the southern part of downtown, with 1,000 more units opening in the northern part of the area, along Central Avenue. “We wanted to make sure our nerds would have access to affordable housing options, which are here,

especially in comparison to a number of other downtowns in the Valley,” said Danny Estavillo, Nerdery West Region managing director, who is locating in a new office in the Leib Building at Park Central. “The day we signed our lease here we had one of our nerds in town sign a lease for a luxury condo downtown, so it’s just the entire urban lifestyle is here, plus there is access to a lot of great talent.” The Nerdery is a digital business consulting firm that helps companies prepare for their digital future. It is just one of the latest companies to see the value of locating in the heart

SkySong The ASU Scottsdale Innovation Center

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Park Central Mixed-Use Creative Office Campus with Retail

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DOWNTOWN of the Valley. Another company to set up shop in downtown is True North Studio, LLC., a commercial real estate development company that has focused its business on downtown developments. True North Studio has a Phoenix office at 214 E. Roosevelt St., in the Roosevelt Row Arts District, which is a bustling area with apartments, bars, restaurants and gathering spaces. “We decided to be based downtown, in large part, because of the arts community and the thriving culture throughout the diverse neighborhoods," said Jordan Taylor, partner at True North Studio. "The walkability to housing, parks, galleries, museums, restaurants, and entertainment venues are a few elements that contribute to downtown Phoenix’s vibrant energy.” Since 2016, Downtown Phoenix Inc.'s business development manager Sara Scoville-Weaver has tracked over 620,000 square feet of office space being leased by “tech” and co-working companies in downtown. This SOMETHING NEW: The Stewart, below, and the Portrait at Hance Park are two new multi-family projects in downtown Phoenix

64 | May-June 2019

includes Quicken Loans, Upgrade, Splash, Fin, Scientific Technology Corporation, Double Dutch, Rainbow Studios and Betterup. According to research provided by John Kirby, regional leader and managing director of the Arizona, Nevada and New Mexico valuation and advisory department for Cushman & Wakefield, the downtown area is much more affordable than other markets. The average rent for a Class A office space in Downtown Phoenix is $29.88 per square foot, compared with $32.60 in Salt Lake City, $37.97 in Portland and $39.40 in Denver.

“Given the amount of new development in and around downtown, I would think owning downtown would be as appealing as any other location in the (market), if not better,” said Kirby. “Historically, the office space has been anchored by proximity to courts, the capitol, and other government services harboring demand from attorneys and financial services. The CBD has since diversified, creating demand for other user profiles, including tech.” “We found a lot of value opportunities downtown,” Estavillo said. “Some of them take a creative eye and a bent towards being a little quirky.

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DOWNTOWN

I saw that in a positive way.” “Downtown is actually one of the most attainable locations for Arizona startups and small businesses due to the variety of office offerings and accessibility to resources,” Taylor added. “As an example, many coworking groups are already established here and new ones are opening locations to support the growth of the entrepreneurial community Valley-wide.” Adaptive reuse projects are also popping up throughout the downtown area, from the Warehouse District, where spaces have been converted to event venues and offices, to the midtown area, which has seen old spaces be reinvented for new usage. Arizona Wilderness Brewing transformed a small, brick warehouse space in the Roosevelt Row area into a open, cool craft beer garden. Point B, Inc., an integrated management consulting, venture investment and real estate development firm, is renovating two buildings to create office space. The biggest projects getting buzz in 66 | May-June 2019

“Downtown is actually one of the most attainable locations for Arizona startups and small businesses due to the variety of office offerings and accessibility to resources.”

–Jordan Taylor partner at True North Studio.

Phoenix are Block 23, The Link PHX — Phase I and The Stewart. Block 23 will bring the first Fry’s Food Store to downtown, along with office and residential space. The 30-story Link PHX adds to the high-rise skyline in Downtown Phoenix and when all three planned phases are completed, it will add a total of 600 rental residences and 21,000 square feet of retail space.

BLOCK 23: This project will bring the first grocery store to Downtown Phoenix.

The Stewart is one of the first downtown projects for Aspirant Development, which also recently finished a warehouse-to-office conversion project at 411 S. 1st St., and is closing in on completion of another one at 402 S. 1st St. Aspirant is hitching its wagon to the downtown area and is currently working on finalizing future projects in the market. “You’ve seen the same things happen in other markets,” said Randy Grudzinski, partner and head of capital markets for Aspirant Development, a member of The Empire Group of Companies. "McDonald’s closed their corporate headquarters in the suburbs of Chicago to build a new one downtown, and they cite proximity to young talent as the No. 1 reason for that move. I’m sure that Quicken Loans moving from Scottsdale to Downtown Phoenix was in large part for the same reason – proximity to a young, vibrant workforce.”

Development Highlights in Downtown Phoenix Opening in 2019

THE LINK PHX — PHASE I 702 N. 3rd St.

The first phase of this 3 phase development by CA Ventures features a 30-story tower, with 252 market-rate apartments with ground floor retail and 22,000 square feet of high-end amenities, like a rooftop deck with an outdoor pool.

LINCOLN UNION 475 E. Lincoln St.

A former Coors Brewing Distribution Center in the heart of the Warehouse District is being transformed into a multi-tenant, creative office complex. Lincoln Union will feature 92,202 square feet spread out among four spaces. It will have outdoor dining spaces, large glass roll-up garage doors and open community spaces.

BLOCK 23

1 E. Washington St.

One of the most anticipated projects in Downtown Phoenix in years, this mixeduse, RED Development project will have more than 1 million square feet of space, including a 55,000-square-foot Fry’s Food Store, the first grocery store in the area. A true live, work, play project, there will be 330 apartment units and 150,000 square feet of office space, all right across the street from both Talking Stick Resort Arena and CityScape.

THE BATTERY

This 278-unit mixed-use project is currently under construction. Located adjacent to Chase Field, between 3rd and 4th streets and Buchanan in the Warehouse District, the development will include apartments and commercial space. Two historic buildings will be preserved and activated as retail.

PORTRAIT AT HANCE PARK 1313 N. 2nd Street

Transwestern’s two-building, 350-unit, multifamily development opened in early 2019. Portrait at Hance Park is directly adjacent to the impressive 32-acre Hance Park, which is undergoing a massive $118 million redevelopment.

THE STEWART

800 N. Central Ave.

The Stewart, developed by Aspirant Development, is a 312-unit, 19-story luxury high-rise apartment community at the site of the old Stewart Motor Company (Studebaker). In the heart of Phoenix’s historical Roosevelt Row Arts District, The Stewart made smart re-use of the former Circle Records building, building up and around the historic structure, which will get new life as a Snooze, an A.M. Eatery.

WELNICK ARCADE MARKETPLACE Van Buren and Third Avenue

The 1927 Spanish Colonial-style Welnick Marketplace features 11,000 square feet of newly renovated restaurant and retail space. State 48 Brewery is currently leasing the site and is expecting to open later this year. 67

DATA CENTERS

ADDING CAPACITY Data center development red-hot in Phoenix

By STEVE BURKS

he whispers and hints of big things happening in the Phoenix data center market are now full-fledged roars and the market is no longer a sleeping giant. The giant has awoken.

68 | May-June 2019

2018 absorption Top 10 most-active markets

1. Northern Virginia: 175.5 MW 2. Phoenix: 41.6 MW 3. Dallas-Fort Worth: 38.6 MW 4. Silicon Valley: 25.1 MW 5. Chicago: 10.7 MW 6. Southern California: 10.3 MW 7. Atlanta: 8.2 MW 8. Boston: 5.7 MW 9. Denver: 4.7 MW 10. Austin/San Antonio: 4.1 MW (Source: CBRE Data Center Trends Report)

The Phoenix area has exploded with data center development. In Goodyear alone, three companies — Stream Data Centers, Vantage Data Centers and Compass Datacenters — have announced plans to build data center campuses. All told, those campuses could house enough data storage units to use 600 megawatts of power. The size of a data center is measured by how much electricity is needed to power all of the servers that are housed in the facility, which typically hold tens of thousands of servers. “There has been a little bit of a chatter for the past 18 months and a lot of that chatter has been that senior living is going to be hot

for the next five years, and, oh by the way, data centers as well,” said Kevin Somerville, Vice President of business development for Buesing Corp., a general contracting firm that does earthwork for the data center market. “If you look at our activity the last couple weeks, we’re touching five or six data centers the last few weeks. People are starting to build for real now.” Goodyear has seen the biggest jump in data center activity, but Mesa and Chandler are also active markets. Heading into the fourth quarter of 2018, Arizona had 61.4 MW under construction, with another 120 MW in the pipeline. The major reasons for this jump in data center activity are

Arizona’s lack of natural disasters, affordable land, abundant and affordable power, and being located on major fiber optic transmission lines, which are vital to data center operations. Also, Arizona has a very pro-growth government, both locally and at the state level, which has been courting these kinds of high-value projects. “The local economic development community has done a great job in promoting Arizona has a high-tech corridor spurring growth in Information Technology,” said Robert Sty, global director, tech sector for HDR, an engineering firm in Phoenix. “Similar to how the federal highway system enhanced

DATA CENTERS

GROWING SECTOR: Skanska USA is close to completing the first phase of an Edgecore data center campus in Mesa’s Elliot Road Technology Corridor.

transportation decades ago, data centers and the fiber network is the infrastructure that supports these advanced platforms – everything from retail and business to selfdriving vehicles, smart cities, and advanced manufacturing (Industry 4.0). To compete with other states for the data center market Arizona passed a tax exemption on qualifying data center equipment.” “Working with the City of Mesa has been outstanding. They helped EdgeCore through the land entitlement process and made everything seamless to build in their city,” said Nick Pemper, senior project manager for Skanska USA, which is the general contractor on the EdgeCore Data Center campus on the old GM Proving Grounds in east Mesa. “They value the growth in their community and were excited to have EdgeCore be one of the first data centers in their technology corridor.” The nature factor also can’t be downplayed. Power outages at data centers create major, sometimes worldwide disruptions. So, being located in an area with very few natural disasters greatly reduces the chances of outages. In relation to that, reliable power is vital and the power companies like SRP 70 | May-June 2019

and APS have been very cooperative with developers who are building data centers, building new substations in developments that house data centers to ensure enough power. “Data centers need power and they need it in higher quantities than a typical warehouse or a grocery store and obviously the utility companies like that steady revenue and those big checks,” Somerville said. “So I think there is a relationship between the two and both figure out what they can do that makes sense for both sides.“ The amount of affordable land is also helping this current data center development. Pemper said his company is doing work in Virginia, the largest data center market in the nation, on a project similar to the EdgeCore facility in Mesa. He said the costs are three

times as much as they are in Arizona. “Arizona is still a relatively cheaper labor market compared to both the West and the East coasts,” Pemper said. “Also, the open desert landscape and the workable soils make earthwork and foundations relatively easy and fast. Speed to market is everything in the data center world.” Speed is also important in terms of data transmission, and Phoenix is located on the “data highway” that runs throughout the country. “Due to the geography of the Western U.S., fiber coming out of California moving east goes through Phoenix, Las Vegas, and Reno (on to Salt Lake City),” said Sty, “Phoenix is a natural ‘node point’ for data centers given our population and location on the national network.”

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PINAL COUNTY

Long road to success P

inal County has long been content to be the buffer between the two major population centers in Arizona, Pima and Maricopa counties. Like the midwest is often referred to as flyover country, Pinal County was drive-through country. Sure, there were sprawling housing developments in parts of the county, namely Maricopa and San Tan Valley, but there was little else that was remarkable about Pinal County. When the recession hit in the late 2000’s, rural

74 | May-June 2019

With plans, infrastructure in place, Pinal County could become automotive manufacturing juggernaut By STEVE BURKS

areas that were more dependent on the housing boom were especially damaged. “We anticipated a lot of growth 15 years ago and then we hit the doldrums and everybody felt it,” said Casa Grande Mayor Craig McFarland. “And honestly, rural Arizona is just coming out of it. Phoenix has been booming for a while and we’re at least 3 or 4 years behind them in terms of activity.” Pinal County clearly has not been sitting idly by as Phoenix has enjoyed several years of remarkable economic

development. The county has quietly built up its infrastructure — including a large amount of renewable energy sources — and set the groundwork for what appears to be an impending hightech, automotive manufacturing boom. “The private sector, like ourselves, being ready and having shovel-ready projects with infrastructure in the ground, that’s how we won Lucid Motors,” said Jackob Andersen, president and CEO of Saint Holdings, a developer with two planned industrial

LONG HAUALER: Nikola's fuel cell Class 8 truck, enabling more hydrogen storage, optimized placement of the powertrain, and a robust 70MPa hydrogen fueling network.

PINAL COUNTY NIKOLA: Company plans to build powersports products like the Reckless, top, and Wave. Below, Nikola has already installed a hydrogen fuel station at its research facility in Phoenix.

parks in Pinal County. “We were picked from 60 different sites around the country. It was water, power and sewer, ready to go, right on site. This is an area that’s been farmed for more than 100 years, you’ve got the majority of the land that’s been laser-leveled with the farms being there. "You also have a criss-cross of electrical companies meeting here, and you’ve got an abundance of substations here. Very few places have that amount of infrastructure.” Lucid Motors and Nikola Motors are two of the latest automotive industry disruptors. Lucid plans to build electric cars and Nikola will build hydrogen fuel cell-powered semi trucks. Both companies are at varying stages in the planning process to start building their production plants in Pinal County, in large part because the county was ready and able to welcome these kind of companies. “We can compete now with Phoenix and Tucson, head to head. We certainly couldn’t do that before because we just didn’t have everything together,” said Tim Kanavel, Pinal County economic development manager. “The companies that we’re getting now are rather large, high tech companies that take up a lot of land. These are 300400 acres, another one is over 1,000 acres. Not everybody’s got that and not everybody’s got rail-served properties, and we have thousands of acres of railserved property and that’s been one of our benefits.” Andersen’s company is developing the 740-acre Central Arizona Commerce Park, which is where Lucid will be located, and the nearly 2,800-acre Inland Port Arizona, which is where Nikola will build its plant. He, and Kanavel, feel that once these two high-tech manufacturing facilities begin construction, a slew of companion projects will come into the picture. “The sensors, the cameras, the hightech components that these vehicles have, I think that technology will be coming to this area,” Andersen said. “I think we’re going to attract more of the electrical vehicle world to this area 76 | May-June 2019

PINAL COUNTY because as these two anchors break ground and people see how welcome that Arizona and Pinal County made them, then they’ll say, ‘hey, they’re open for business.’ “When you create a hub, it just creates a chain of auxiliary uses, supply chain uses and, of course, all of the advantages that you have here as opposed to other parts of the country.” Of the two companies, Nikola has already established a physical presence in Arizona, opening a hydrogen fuel cell testing and research laboratory in Phoenix. In mid-April, the company held Nikola World 2019 in Scottsdale and unveiled two new hydrogenelectric semi trucks along with three other powersports vehicles, including a military-grade all-terrain vehicle. The company has plans to produce three different models of semi trucks and recreation vehicles, such as the Nikola Reckless ATV as well as jet skis. All

LUCID AIR: The Air will be available with a battery pack that boasts about 240 miles of range on a full charge, or an optional pack that's expected to deliver up to 400 miles of range.

78 | May-June 2019

will be powered by hydrogen fuel cell technology. Nikola has purchased 400 acres at Inland Port Arizona south of Coolidge and the plan is to begin production of trucks by 2021 and gradually increase the number of jobs to roughly 2,000 in 2024. According to Nikola, there are more than 13,000 pre-orders placed for the trucks, which should quicken the pace of construction. The land for the Lucid plant was purchased by Pinal County and Lucid will lease the land for the first four years before purchasing it from the county in year five. Lucid was planning to break ground on the facility in spring of 2019. Pinal County is no stranger to automotive research and development. Case New Holland America, a tractor manufacturer, tests its driverless tractors at its facility in Casa Grande. The 3,050-acre Nissan Arizona Testing Center, complete with a five-mile track, is located in Stanfield. Tesla tests its vehicles at the Nissan facility and Audi and Porsche test their automobiles at the Volkswagen North American testing site near Maricopa. The long-awaited Attesa motorsports

park will also have a research, development and testing component. Attesa is a 2,500-acre, master-planned motorsports and transportation design community being developed 10 minutes west of Casa Grande. It will feature two configurable road courses, a brand and driver experience center, hotel and convention center, solar plaza, restaurants, shopping and entertainment. The primary track will be used for vehicle testing, plus major racing events. The membership track, which will be the first project at the development, will feature a luxury club including swimming pool, spa and fitness center, driver’s lounge and locker room. Attesa will also include residential and industrial districts, an airpark and FBO private air strip plus a multi-use area suitable for large scale concerts, closed course off-road races and other events. Attesa is planning to break ground on the membership track in August. All of the elements are in place for Pinal County to become a major international hub of automotive research, development and manufacturing. This means that once

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PINAL COUNTY

the ball starts rolling, there will be warehousing needs for the supply chain, as well as light industrial plants for emerging automotive technology. “Another thing that we have is access to the Sonoran part of Mexico, where they already have a mature supply chain for the automotive industry,” said Andersen. “And all of those are going to morph and change as the industry goes toward electric vehicles. If you look, you have VW, Porsche, Mercedes, they are all talking about their fleets being mostly electric by the mid 2020’s and thats going to go hand-in-hand with the tech that is going to be needed for the autonomy in the vehicle.” Pinal County is an attractive location for companies looking for new sources of power. The county already has a 20-megawatt solar generating and battery storage facility just north of Coolidge and has three more largescale solar farms in the planning stages. If all three are built as planned, the county will have more than 3,000 acres of solar farms. There’s also 80 | May-June 2019

the Pinal Energy ethanol plant that produces 50 million gallons of ethanol a year and the Green Gas Partners plant, a methane processing facility outside of Stanfield that takes cow manure and converts it to methane gas and fertilizer. “When you start talking to these companies, particularly the ones out of California, they like green energy and we’re going to have a lot of that,” Kanaval said. Another key factor that made all of this potential growth possible was the way that the stakeholders in the county — developers and city and county governments — collaborated on making sure their projects or communities were well-positioned when opportunities arose. There was very little in-fighting among the groups as they all saw the possibilities for widespread growth that would benefit the county. “We’ve made a total about-face in terms of the cooperative and collaborative efforts between all of the

NISSAN TECHNICAL CENTER NORTH AMERICA: Nissan's Arizona Testing Center is a 3,050-acre facility in Stanfield, Arizona

cities and the county,” said McFarland, who has lived in Pinal County for 15 years. “The county and the cities are pretty much in lock step in terms of economic development and it’s really been inspiring to watch it transcend where we were before.” The middle man in all of this cooperation is Kanavel, who facilitates development and has been a tireless advocate for the county. “The crash taught the county that we’ve got to do something different,” Kanavel said. “Instead of building houses, which was just building homes, not building jobs. They created my position and said, we’ve got to create jobs and that’s what I do. I don’t do retail, I don’t do housing. “If you build jobs, the people will come.”

PINAL COUNTY

A spark is all it takes By STEVE BURKS

here are nearly 450,000 people living in Pinal County, a mostly rural, sprawling county the size of Connecticut. And each workday, the roads leading out of Pinal County are full of people heading to work. “The estimate that we’ve heard is that as many as 90,000 people commute out of Pinal County to work in the metro areas, Tucson and Phoenix,” said Coolidge city manager Rick Miller. “Our hope is that we’ll be able to keep some of those commuters working here, living here and playing here.” To keep the workers in the county, there first must be jobs. Slowly, companies are planting their flag in Pinal County. Tractor Supply Co., has its West Coast distribution center near Casa Grande, and LKQ, a company that recycles and resells automotive parts and accessories, has a 107,000 square foot distribution center in the same industrial park.

82 | May-June 2019

While those two facilities brought in a couple hundred jobs, the county is eagerly awaiting a pair of projects that will require up to 5,000 employees, the Lucid Motors plant in Casa Grande and the Nikola Motors plant in Coolidge. “That represents about 5,000 in workforce, full-time employees,” said Tim Kanavel, economic development director for Pinal County. “Nikola says their employees will make $80,000 average and Lucid is $65,000. We’re going to be able to reverse some of that outward flow.” Those two planned facilities may kick-start a development boom in the county that could push those workforce numbers to close to 10,000 new jobs by 2024. It is expected that supply-chain facilities will follow those two plants, as well as other small manufacturing or research facilities to support Nikola’s hydrogen fuel cell technology and Lucid’s electric

CENTRAL ARIZONA COLLEGE : Pinal County college has launched a training program for advanced manufacturing.

vehicle development. If an advanced automotive manufacturing hub is created in the county, it will draw plenty of supporting industries. “I think we’re going to attract more of the electrical vehicle world to this area,” said Jackob Andersen, president and CEO of Saint Holdings, the developer of two industrial parks that will be home to Lucid and Nikola. “When you create a hub, it just creates a chain of auxiliary uses, supply chain uses.” Before Lucid made Pinal County the site of its first manufacturing facility, it began talks with Central Arizona College on a training program for advanced manufacturing. The CAC, which already had a robust and successful manufacturing curriculum, added classes to provide Lucid the kind

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PINAL COUNTY of skilled workers that it needed. That program expanded up and down the I-10, which was dubbed the Arizona Advanced Technology Network, to Maricopa County Community Colleges (chiefly Mesa Community College) and Pima Community College. In fall of 2019, students can begin work on getting their certification in Automated Industrial Technology, a program formed, in large part, because of the impending arrival of Lucid and Nikola. “What this curriculum will do is broaden the base,” said Joel Millman, workforce development program manager for Arizona@Work Pinal County. “Folks coming out of Mesa Community College, when Lucid is ready to hire or Nikola is ready to hire, or Boeing or Raytheon, those companies will have a broader base to pull from because they’ll know the commonality of the training. SKILLED TRAINING: Advanced manufacturing requires updated skills, which are being taught at colleges in Pinal, Pima and Maricopa counties.

84 | May-June 2019

“For what we do at Arizona@Work, this program assists us in helping educate the workforce in Pinal County that come through our doors. For those that do want to work in that industry, this allows us to guide them to that program.” Millman and Arizona@Work specialize in helping to assist individuals with barriers to employment. They work closely with economic development officials in the county to stay on top of what kind of jobs will be coming, and what training and skills will potential employees will need to be successful. “We point them in the right direction when it comes to linking them to employment opportunities,” said Millman. “The hope is that this linkage aligns with targeted industries that is set by our County Board of Supervisors. “We have constant conversations about the workforce expectations in the county. I just want to ensure that expectations are aligned and we’ll do everything possible to work with our direct targeted populations.” The training program may be in

place in the community colleges, but the high-tech manufacturing jobs have yet to arrive, as neither Lucid or Nikola have begun construction of their facilities. Millman doesn’t see this as a negative, as his group has prepared the foundation and will be ready to deliver a workforce to those sites and the support and supply-chain facilities that will follow. “We’ve seen the potential number of jobs and the reality is, until we see the buildings coming out of the ground and those help wanted signs posted, that’s when the dust really starts kicking up,” Millman said. “When the reality hits, we just want to make sure we have a good, solid plan in place, regardless of the numbers. “Everybody realizes the enormity of the potential that’s in front of us, and the historical potential that we do have. Now’s it’s time and you only have one shot at doing it and I think everybody realizes that. While all of the municipalities have their own strategic planning and their own best interests in mind, I think at the end of the day, Pinal County really bands together.”

PINAL COUNTY

Adventure abounds in Pinal County

n 2017, Pinal County brought in more than $700 million in revenue from tourism, recreation and entertainment. After seeing those numbers, Pinal County officials launched a campaign to highlight some of the tourism and recreation options that can be found in the county. They produced three videos that put on display the activities that residents and visitors can take part in. There are also two large-scale entertainment projects that are in the works. The first is Atessa Motorsports Park, which recently announced that it would be building a membership track as the first part of a 2,500-acre development. Another project that has been in the planning stages for several years, but is not dead, is the Dreamport Villages project. It’s set to be a worldclass entertainment amusement park on 1,500 acres. Plans for Dreamport Villages include extreme sports, rock climbing, a water park and wildlife park. Developer Alan Segall is still working on lining up investors for the $4 billion project. As more and more development like Nikola Motors and Lucid Motors arrives in Pinal County, it makes Dreamport Village a more exciting investment. Here are just some of the other recreation and entertainment options in the county:

86 | May-June 2019

HIKING/MOUNTAIN BIKING/ CAMPING/OUTDOOR

Pinal County is home to five state parks, four wilderness areas, three national monuments and two national forests. There are thousands of miles of hiking, biking, horse riding and all-terrain vehicle trails in the county, including 100 miles of the Arizona National Scenic Trail, a popular hiking and biking trail that runs from Utah to Mexico.

ANNUAL EVENTS

Country Thunder is one of the premier country music festivals in the nation and spans over four days in early April each year. The event attracts more than 100,000 fans to the desert outside of Florence. The Arizona Renaissance Festival is a medieval town come to life outside of Gold Canyon. The month-long festival features 13 theater stages, a 30 acre circus, an arts and crafts fair and a jousting tournament stadium.

ENTERTAINMENT

There are two casinos in Pinal County, the Apache Sky in Dudleyville and Harrah’s AkChin and Multi-tainment Center in Maricopa.

GOLF

There are 26 golf courses in Pinal County.

ADVENTURE SPORTS

Skydive Arizona in Eloy is the world’s largest skydiving center, with over 135,000 jumps per year. Arizona Zipline is on the back of Mount Lemmon in the Santa Catalina Mountains in the southern part of Pinal County. It is the longest zipline in Arizona.

HUNTING

The county is several areas that offer a variety of opportunities for hunting game such as javelina, mule deer and whitetail deer, as well as smaller game such as dove and quail.

BIOSPHERE 2

Located in southern Pinal County, Biosphere is one of the most unique attractions in Arizona. It was designed as a large-scale science experiment and is now a living research laboratory.

GOLDFIELD GHOST TOWN

At the base of the Superstition Mountains, Goldfield Ghost Town takes visitors back to the days of booming mining communities. There are historic buildings and a historic underground gold mine. (Source: Pinal County Department of Economic Development)

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VALLEY PARTNERSHIP

KEEP IT Valley Partnership works to find balanced solutions to water availability issues in Arizona

92 | May-June 2019

FLOWING By STEVE BURKS

Itâ€™s complicated and multi-faceted and one of the most important issues that our state and our region faces: Water.

VALLEY PARTNERSHIP

There is a large array of longstanding pacts and agreements on who gets how much water, but to understand all of the nuance involved in this topic, you need someone who has been dialed into the issue for years. For Valley Partnership, that person is its President and CEO Cheryl Lombard. The group hired Lombard in 2015 after she spent 10 years as the government relations director for the Nature Conservancy. Her background and knowledge on the issue is what made her a perfect hire at the time. “I was working on the water issue there and it is an important part of growth in our state and really in the entire west,” Lombard said. “So when I transitioned over to Valley Partnership, even during my interview process, this was something we talked about because of my expertise on this

94 | May-June 2019

Brad Chelton

Ben Graff

Cheryl Lombard

Brookfield Residential

Quarles & Brady

Valley Partnership

VALLEY PARTNERSHIP issue and wanting to move into this space because, obviously, it was a potential impediment to the success of the development industry.” The issue of water availability and accessibility is something that has come to the forefront in the past decade, as Arizona and all of the states in the Colorado River Basin are in the midst of a 19-year drought. Agreements on how to deal with a

COLORADO RIVER: Nearly the full length of Lake Powell on the Colorado River in Southern Utah and Northern Arizona is visible in this photograph shot by an astronaut aboard the International Space Station, on Sept. 6, 2016. The view is toward the southwest. Water flow is from the lower right toward the top. (Source: NASA Earth Observatory)

96 | May-June 2019

drop in water levels in the reservoirs of the Colorado River (Lake Powell and Lake Mead) have been in the works since 2007. In late April, Arizona delegates Rep. Raul Grijalva and Sen. Martha McSally led the way in the passage of H.R. 2030, the Colorado River Drought Contingency Plan (DCP), which President Donald Trump signed into law. Valley Partnership, with its mission to advocate for responsible development in Arizona, urged the approval of the DCP at every step to ensure that the development community was not unfairly affected by any potential cutbacks in water allotments. “Valley Partnership always has a very tough balance,” said Valley Partnership board of directors member Ben Graff, a land use and zoning attorney for Quarles & Brady. “We have such a

wide variety of membership — from homebuilders, architects, engineers, developers, land owners — sometimes an issue as complicated as the DCP, it can be difficult to get a consensus, and Cheryl did just an unbelievable job.” Graff, who was elected to the Central Arizona Project board in 2016, is just one of many Valley Partnership members who are actively involved in setting water policies for the state. “I ended up joining the board (of CAP) at a very tumultuous, but also a very key time in Arizona water policy,” Graff said. “I certainly can’t say the work started with me in 2016 because there were plenty of things in the works, certainly from Day 1 that has been one of the largest focuses of the CAP board and also the governor’s office and Arizona Department of Water Resources.” Valley Partnership has worked very

VALLEY PARTNERSHIP

hard to keep its membership informed on the DCP and what it would mean to the development community. In January, the Valley Partnership Friday Morning Breakfast featured some of the most influential leaders in Arizona on this topic, including Tom Buschatzke, director of the Arizona Department of Water Resources. “All of our folks are tied up in securing a 100-year water supply, so they’re very familiar with the issue,” Lombard said. “I think what was new was the discussion tied around the Colorado River. That’s new to all of us. We, meaning Valley Partnership, have been talking about this for a while, meaning it’s in our strategic plan, so they were ready, but it’s a complicated issue with a lot of nomenclature, so there was a lot of education from that aspect.” Buschatzke was pivotal in getting the DCP approved by all of the states in the Colorado River Basin (Arizona, Nevada, California, New Mexico, Colorado, Utah and Wyoming). Without the approval of all of the states, the DCP would not have been sent to Congress and the federal government would have potentially stepped in. Getting California to agree to the DCP was the biggest trick, because there were no laws that required California to reduce its water allotment, as that state has first water rights. “The secretary of the interior within the federal government has the ability, under the premise of the health of the Colorado River, to state that the lowering health of the river has gotten to such a point that he is going to step in and reallocate that water as he sees fit,” Graff said. “California knows that under that scenario they couldn’t possibly get as good of a deal as was passed through Congress now.” Both Lombard and Graff have hands98 | May-June 2019

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on approaches to staying on top of this issue. In addition to being appointed to the Arizona DCP Steering Committee, Lombard has been on the Governor’s Augmentation Council since she joined Valley Partnership. That group works on long-term water solutions. She also takes part in committees and discussion groups and is in constant contact with the Arizona Department of Water Resources, CAP, Salt River Project, the tribal leaders in Arizona and municipal leaders. “I don’t believe in 2015 Valley Partnership would have necessarily been invited to the table on DCP,” Graff said. “But fast forward to 2017 through 2019, I can guarantee you that they were one of the first calls to take part in the discussion among stakeholder groups. “There has been a shift in the advocacy and clout of the organization and involvement. I’ve been very, very happy to see that, especially as a new 100 | May-June 2019

member of the board.” Another issue related to water that has gotten a lot of attention from Valley Partnership members is the problems in San Tan Valley with Johnson Utilities. The small company provides water and sewer services to residents of a 160-square mile area of Pinal County. After severe issues with maintenance and upkeep of the water and sewer infrastructure, state regulators stripped control of the company from Johnson Utilities and put EPCOR USA in charge of operations. New construction in the Johnson Utilities service area was stopped, as EPCOR could not guarantee water and sewer service to new homes due to the condition of the system in place. “Brookfield Residential owns a community and is developing a community inside Johnson Utilities' service area, so we were impacted by the challenges that started to become public,” said Brad Chelton, vice

president for Brookfield Residential Properties and a member of the Valley Partnership Board of Directors. “Myself and Cheryl and a few others who are on the board got together and engaged with Johnson Utilities and engaged with the Arizona Corporation Commission and also EPCOR, to really try to find the most common sense solution that was available.” So far, no long-term solution has been reached, as EPCOR continues to work on bringing the Johnson Utilities infrastructure up to date. One potential solution that Valley Partnership and EPCOR agreed to was linking up to Queen Creek’s municipal water and sewer system. “This isn’t about water, per se. There’s plenty of water available in the area,” Chelton said. “The problem is about the infrastructure. The infrastructure hasn’t been maintained or it hasn’t been constructed to keep up with the pace of development.”

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EQUAL HOUSING OPPORTUNITY. NNP III-Estrella Mountain Ranch, LLC and NNP III-EMR 4, LLC (collectively, “Fee Owner”) are the owners of various parcels of land comprising the Estrella Community (“Community”). Newland is the development manager retained by the Fee Owner for the Community. Certain homebuilders unaffiliated with the Fee Owner or Newland are building homes in the Community. Fee Owner and Newland are not co-developing, co-building, or otherwise responsible for any of the obligations or representations of any of the Builders. See www.estrella.com for full terms of use. • Prices, specifications, details, and availability of a builder’s new homes are subject to change without notice. Actual development may vary from developer’s vision. No guarantee can be made that development will proceed as described. Certain properties may be registered with HUD, or may have registered components in the future as required pursuant to the Interstate Land Sales Full Disclosure Act. If such registration occurs, obtain the HUD Property Report, or its equivalent, required by Federal law and read it before signing anything. No Federal agency has judged the merits or value, if any, of this property. 2019 © Estrella. All rights reserved. Estrella is a trademark of NNP III-Estrella Mountain Ranch, LLC, and may not be copied, imitated or used, in whole or in part, without prior written permission.

VALLEY PARTNERSHIP

LAKE MEAD: Water level in May 1984.

LAKE MEAD: Water level in May 2016.

(Source: NASA Earth Observatory)

Lake Mead formed in 1930s following construction on the Hoover Dam along the Colorado River. At maximum capacity, the reservoir would hold 36 trillion liters (9.3 trillion gallons); water in the vicinity of the dam would have an elevation of about 372 meters (1,220 feet) above sea level. In July 2000, the lake level was relatively high at 366 meters (1,200 feet). By July 2015, however, the level had dropped to 329 meters (1,078 feet). Most of the water comes from snowmelt, which travels from the mountains into Lake Powell, through the Grand Canyon and into Lake Mead. Arizona, Nevada, California, and northern Mexico all rely on water from the reservoir. The Las Vegas Valley alone counts on the reservoir for about 90 percent of its water supply. Comparing the top two images, the lake’s northern branch, Overton Arm, is narrower in 2015. It also appears truncated and stops short of the confluence of the Muddy River (west) and Virgin River (east). The Virgin River Basin, the circular feature once connected to Overton Arm via “The Narrows,” appears dry.

Lake Mead: Current Elevation

Lake Mead: Projected Elevation

USBR 2018 Forecast

(Source: Southern Nevada Water Authority-Colorado River Update)

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Drought Contingency Plan overview The United States Congress passed and President Donald Trump signed into law H.R. 2030, the Colorado River Basin Drought Contingency Plan. States in the Colorado River Basin have been crafting this agreement for more than a decade in the event of a catastrophic drought. Colorado River water is dispersed to more than 6,300 square miles of farmland and cities in the United States and Mexico and supports more than 40 million people. The largest reservoirs are Lake Mead and Lake Powell, which after a prolonged, 19-year drought, are at dangerously low levels. There are two major parts of the DCP. Most of the water comes from the Upper Basin, which is composed of Colorado, New Mexico, Utah and Wyoming. The Lower Basin (Arizona, California and Nevada) is where most of the water is used. If Lake Mead falls below a set level (1,075 feet above sea level), mandatory cutbacks would kick in. The lake is currently at 1,089 feet, if it drops below 104 | May-June 2019

the 1,075 mark, Arizona would reduce usage by up to 9 percent, California by up to 8 percent and Nevada by a fixed 3 percent. To maintain Lake Mead levels, Lower Basin states agreed to cut back on the amount of water they use. The draft plan calls for implementing Lower Basin programs to create or conserve 100,000 acre-feet each year in Lake Mead and other Colorado River reservoirs in the Lower Basin. An acre-foot of water is 325,851 gallons. A typical household uses just over 100,000 gallons of water a year The Lower Basin DCP will trigger additional contributions from Mexico through the Binational Water Scarcity Contingency Plan. Upper Basin states agreed to keep the surface of Lake Powell above 3,525 feet above sea level, keeping the reservoir 35 feet higher than the minimum required to run the hydroelectric plant and allowing excess water to be stored in reservoirs for later use, without fear it will be drained into the Lower Basin and used there.

UPPER BASIN AND LOWER BASIN DCP’S The Upper Basin DCP (consisting of a Drought Response Operations Agreement and a Demand Management Storage Agreement) is designed to a) protect critical elevations at Lake Powell and help assure continued compliance with the 1922 Colorado River Compact, and b) authorize storage of conserved water in the Upper Basin that could help establish the foundation for a Demand Management Program that may be developed in the future. The Lower Basin DCP (consisting of a Lower Basin Drought Contingency Plan Agreement and the attached Lower Basin Drought Contingency Operations) is designed to a) require Arizona, California, and Nevada to contribute additional water to Lake Mead storage at predetermined elevations, and b) create additional flexibility to incentivize additional voluntary conservation of water to be stored in Lake Mead. The parties have also developed a “Companion Agreement,” in which the parties endorse both the Upper Basin and Lower Basin DCPs, agree to implement both DCPs in good faith, agree to consult during operations to avoid future litigation and reserve legal rights in the future.

SECURING ARIZONA’S SECURING ARIZONA’S WATER FUTURE SECURING ARIZONA’S

WATER FUTURE WATER FUTURE

The Drought Contingency Plan is a historic agreement between seven Southwestern states and Mexico that will help secure ourContingency water future.Plan is a historic agreement The Drought The Drought Contingency Plan isstates a historic agreement seven between seven Southwestern and Mexico thatbetween will Southwestern states help secure our and waterMexico future.that will help secure our water future. A P R I L

16 16

A P R I L

19 19 YEARS

President Donald Trump signs into law the Drought Contingency Plan.Trump President Donald signs into law the Drought Contingency Plan.

YEARS

A 19-year drought threatens water levels in Lake Mead. A 19-year drought threatens water levels in Lake Mead.

17% 17%

Without action, Arizona could lose up to 17% of our water allocation – enoughaction, for 1 million Without Arizonahouseholds. could lose up to 17% of our water allocation – enough for 1 million households.

DROUGHT CONTINGENCY PLAN BY THE NUMBERS PLAN DROUGHT CONTINGENCY BY THE NUMBERS 40 stakeholders from across Arizona came together to develop 40 stakeholders froma plan save water . acrosstoArizona came together to develop a plan to save water.

The Drought Contingency Plan balances our water reductions to help secure The Drought Contingency Arizona’s waterour future. Plan balances water reductions to help secure Arizona’s water future.

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Hegardt makes a lasting impact By STEVE BURKS

hroughout her successful professional career, Jill Hegardt has been passionate about helping people accomplish their goals and giving back to the community. This makes DMB Associates a perfect company for her, and why she has been there for 14 years. After starting out in the public sector as a planner, including a stint working for Maricopa County, Hegardt has worked at DMB Associates and on all the DMB legacy communities like Verrado in the West Valley and Eastmark in the East Valley. As the vice president of entitlements at DMB, Hegardt has played a role in bringing these communities to life. “My motivations are accomplishments and successes that make an impact, not necessarily financial. That led me to my profession as a planner and why I majored in this career," Hegardt said. "I’ve been fortunate to work on DMB projects, and having a part in creating these wonderful communities, has been very gratifying.” Hegardt has continued to give back with her time on a variety of professional and civic organization boards, including becoming the latest Chair of the Valley Partnership Executive Committee. Other boards Hegardt has been on included the Greater Phoenix Chamber, the Mesa Chamber, the East Valley Partnership and the Child Crisis Center. More recently, she was inspired by her daughter, who is studying dance at the University of Arizona, to join the board

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for Ballet Arizona. AZRE sat down with Hegardt to get her thoughts on how Valley Partnership helps the overall development community, as well as how it impacts its individual members.

AZRE: Describe your involvement in Valley Partnership and how it led to you being elected Chair for 2019? JH: DMB has been involved in many organizations over the years, but Valley Partnership holds a special place, because of Valley Partnerships’ mission to advocate for and support responsible development. That mission really mirrors up with DMBs’ approach on development of our communities. DMB has been involved with Valley Partnership for many years and we take our role in these organizations

seriously. We’re not just there to fill a seat, we’re there to be an active, contributing member, including taking on the additional responsibilities of taking a leadership role. In keeping with history, I think I’m the third DMB employee who has been elected to serve as Chair of Valley Partnership.

AZRE: In your position with DMB Associates, how has your involvement in Valley Partnership helped? JH: Being involved in Valley Partnership provides a vehicle to interact with others in the industry and to stay up to-date on policy matters, legislation and trends that impact development, including impacts to DMB projects. Members can benefit because we can work together in a collaborative manner to address issues that are

important to the larger development community. Valley Partnership also has many committees and events that also provide opportunities to get the pulse on what’s happening around the Valley.

AZRE: As a member of Valley Partnership, what are some of the more noteworthy experiences you’ve had? JH: I would say participation in the community service projects has been a particularly fulfilling. A significant effort by a group of very dedicated volunteers occurs prior to the community service event and then, on event day, we typically have 200 to 300 volunteers working to create community gardens, outside play and recreation areas, etc. for the selected non-profit. Our members have the skillsets, expertise and connections that are invaluable to planning and executing the Community Service Project which ultimately results in something positive for the community. It’s really a great opportunity to contribute positively to our community and non-profits.

“My motivations are accomplishments and successes that make an impact, not necessarily financial. That led me to my profession as a planner and why I majored in this career.” AZRE: How vital is the role that the development community plays in shaping a successful future for the state of Arizona? JH: The development community plays a vital and important role in shaping the success of the future of our communities. Cities are complex organisms and to be successful, they need to be economically strong with robust businesses and industry, livable neighborhoods and housing, education systems, infrastructure, entertainment

and cultural amenities and service industries. Valley Partnership supports responsible development from the industry that builds our infrastructure, our neighborhoods and communities and spaces for businesses. Also, the real estate and construction industry on its own has historically been an important growth industry for our economy, but as we’ve matured, our economy has gotten much more diverse which is a good thing.

AZRE: The next group of leaders is probably just starting out in the industry; what advice would you give them? JH: There’s a lot of good advice that I could give, but I’m going to say it’s important to be a problem solver. It’s also helpful to make sure you are looking at the problem from different perspective, which I think is important to come up with solutions that meet your needs as well as others. In my career, I’ve observed that the problem solvers tend to be the most sought after individuals.

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Solutions before problems

By STEVE BURKS

developer hates surprises when working on a project. Surprises usually cost time and money, two things that aren’t infinite in the competitive world of real estate development in Arizona. For the development community in Arizona, there is a group working hard to make sure there are as few surprises as possible. Valley Partnership has a wide network of connections that are monitoring events or government actions that affect development. Those issues can be city ordinances, state laws or federal regulations. If they will have an impact on what developers do, Valley Partnership is keeping tabs on it. “When I look at a development opportunity in the Valley, I turn to Valley Partnership for insight on potential issues that might arise,” said Molly Ryan Carson, senior vice president and Southwest Region market leader for Ryan Companies US, a major developer in the Phoenix market. “Valley Partnership’s commitment to responsible development is admirable

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and invaluable. The organization works alongside municipalities and developers with the focus on lasting success and growth for our greater community.” The organization has a very small staff, so to keep an eye on all of the potential laws and regulations that could affect development, Valley Partnership leans heavily on other organizations throughout the state. “We work very closely with the Greater Phoenix Leadership, Arizona Chamber of Commerce and Industry, Greater Phoenix Chamber, just to name a few,” said Cheryl Lombard, president and CEO of Valley Partnership. “We actually coordinate quite a bit. There’s a lot of stuff coming at you, between all the cities, states, corporation commissions, so we spend a lot of time talking to each other and all of our organizations work via committees, so we do have a lot of crossover membership. That’s why it’s very helpful for us to coordinate.” “Cheryl is very plugged in with everybody, whether it is state legislation or federal government

regulations or any utilities or corporation commission-type stuff, they are constantly monitoring what is going on from a regulatory standpoint and keeping us aware,” said T.J. Wead, an investment officer for Merit Partners. “Having an advocate that’s constantly bird-dogging the intricacies of the state house, as well as pending federal litigation is invaluable to us.” A former chair of the Valley Partnership Board of Directors, Karrin Taylor Robson, who now serves as founder and president of Arizona Strategies, recalls a proposal by the federal banking committee that would have changed the rules to expand the amount of areas that would have to pay into the Federal Flood Insurance Program. That change would have drastically affected Arizona home builders. Taylor Robson and Valley Partnership made their voices heard in Congress. “Some of our delegation, it wasn’t even on their radar,” Taylor Robson said. “We were able raise our hands and tell the members how this would affect development here in Arizona. It was a very good, free flow of information so we can prevent things from happening.” What is noteworthy about all of Valley Partnership’s efforts is they expertly balance the needs of the development community, even though the groups may have conflicting interests. Their goal is to advocate for the industry as a whole and make sure all parts have equal opportunities for success. “I have seen them over the years be very active in everything from updates to subdivision codes to zoning codes to lighting ordinances; very specific issues at the local level,” Taylor Robson said. “I’ve seen them be very effective when it comes to changes to municipal finance laws at the Legislature — balancing the competing interests of members within Valley Partnership.” “Each of the individual industry asset classes have their own advocates, and they are all very focused on their part of the the real estate market. Valley Partnership naturally balances the interests of all of those groups.”

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Valley Partnership events are serious fun By STEVE BURKS

t’s mission is right there on its logo: Valley Partnership — The Valley of the Sun’s Premier Advocacy Group for Responsible Development. Sounds pretty serious, and Valley Partnership does serious work for the development community in Arizona. But, the group also likes to have fun and, when possible, mix in a little information and community service while having an enjoyable time. “It’s easier to do business with people that you like than with people you just

110 | May-June 2019

don’t know,” said Kelly Patton, senior economic development consultant for APS, a sponsor of the monthly Friday Morning Breakfast event. “Valley Partnership does a great job of providing those venues to get to know each other on more than just a formal business level and those are the types of events that people love to go to.” Valley Partnership’s events include the Friday Morning Breakfast, which provide members with a chance to network and hear from speakers

on a variety of topics, the annual community service project, annual golf tournament and annual spring training game. Each event is eagerly anticipated by members. “The Friday Breakfast is packed every single month, the golf tournament sells out year after year, and so does the Spring Training game,” said Ben Butler, Assistant Vice President and Counsel for Fidelity National Title’s Phoenix National Commercial Services (NCS) operation. “These events bring people

together and provide an opportunity for networking and discussion that the members clearly value.” If members had to rank these events in terms of fun, most would put the spring training game in March and golf tournament in April as a close, 1-2 punch. Both of these events are casual and relaxing, which allows members and their guests to socialize and network in a very comfortable environment. “I hear all the time that these social events provide some of the best networking opportunities in the industry,” said Butler, who served on the Valley Partnership golf tournament committee. “They are also fun events, and who doesn’t like having a little fun while working?” “Everybody loves a warm, sunny day and baseball, it’s America’s pastime, and a cold beer,” said Patton, referencing the Spring Training game. “Everybody can rally behind that.”

Belinda Rosthenhausler, commercial sales executive for Clear Title Agency of Arizona, leads the groups’ planning for the Spring Training game as a part of the Valley Partnership events committee. She said that event started out as a simple mixer at the ballgame and has grown into the group taking over a whole party deck with almost 400 people in attendance at the 2019 game in March. “I think any organization should also incorporate these kinds of networking events so you get to meet people on a more social level,” Rosthenhausler said. “It’s more comaraderie at that point.” Another goal of the events committee is to not overburden the Valley Partnership members, either their time or money. “There are some of these organizations that you want to go to their events, but it’s a couple hundred dollars,” Rosthenhausler said. “I know that we should do more (events), but

it’s hard. Who’s going to take it on? As it is, everyone is involved in other organizations and to me it’s a lot of work, in addition to the full-time job.” While golf and a ballgame are fun, the community project is fun and rewarding. Each year, Valley Partnership selects a non-profit organization that can benefit from the skills, efforts and supplies provided by Valley Partnership partners and members. A couple hundred members and their families gather on one Saturday in November to renovate and enhance facilities for those in need. Past projects have included installing recreation and sports facilities at Sunshine Acres in Mesa and installing irrigation systems, electricity and other useful enhancements to The Society of St. Vincent de Paul urban garden in Phoenix. For more information on Valley Partnership events or to get involved, visit ValleyPartnership.org. 111

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