PHOENIX, ARIZONA (February 19, 2019) – Last month the Arizona Legislature passed the much-needed Colorado River drought plan. However, questions remain as the historic pact faces choppy waters.
The Central Arizona chapter of CCIM, commercial real estate’s global standard for professional achievement, will present a discussion on Arizona’s water rights on Wednesday, March 6, at the Esplanade E-Center, 2501 E. Camelback Rd., Suite 50, Phoenix.
Grady Gammage Jr.
Leading the discussion will be Grady Gammage Jr. Gammage is one of the founders of Gammage & Burnham. His practice has focused on the political aspects of real estate, development, and public policy. As a zoning attorney he has represented dozens of major commercial projects.
Gammage has been at the forefront of urban development in Maricopa County, including deals with such public private projects as the Tempe Town Lake and Arizona’s unique approach to redevelopment incentives. He has also represented cities and towns in revising their development and land use ordinances, and has litigated land use and election issues related to development.
The event begins at 7:15 a.m. with registration and breakfast. (There is a vegan option for breakfast). The program runs from 7:45 to 9 a.m. Registration fee is $40 for CCIM chapter members; $50 for non-members and guests. Register here.
Learn more about CCIM Central Arizona Chapter: centralazccimchapter.com.
TEMPE, ARIZONA (February 14, 2019) ‒ Liv Communities, a leader in multi-family and senior development and property management, was recognized for its high marks in customer service and resident experience. Five of those communities are in the Valley.
SatisFacts recently announced winners of its 2018 National Resident Satisfaction Awards and seven of Liv Communities’ multifamily developments were honored.
Winning Insite Awards for exceptional customer service and residential experiences: Liv Ahwatukee, Phoenix; Liv Avenida, Chandler; Liv Goodyear; Liv North Scottsdale; Liv North Valley, Phoenix; and Liv Arbors and Liv Wildwood, Michigan.
“We are thrilled and honored to learn that Liv residents have enjoyed their lives at our communities and shared their experiences for others to learn about,” said Heidi Arave, Vice President, Liv Multifamily. “It gives us great joy to know that building true community through our residents, team members, and business partners means happy people living fuller lives. This designation is the ultimate compliment.”
StatisFacts surveys more than 3,000 residents across the U.S. to identify property management companies that deliver an outstanding resident experience. The SatisFacts Index is the average score of prospective and current resident responses to questions measuring renters’ experiences, ranking key events and experiences from 1 (very unsatisfied) to 5 (very satisfied).
Scores are based on resident responses to questions addressing a variety of categories including:
- New customer experience;
- Move-in experience, satisfaction;
- Service, maintenance request satisfaction;
- Intent to renew lease upon expiration.
To enrich the lives of its residents, Liv Communities incorporates elements of technology, sustainability, wellness and community into its community designs. Liv communities offer resort style state-of-the-art amenities including resort-style pools and spas, fully equipped fitness centers, indoor and outdoor lounge areas, game rooms, parks, walking paths and more.
TEMPE, ARIZONA (February 12, 2019) ‒ Liv Communities is expanding its footprint in the Valley with the opening of its third senior living community, LivGenerations Pinnacle Peak.
A grand opening ceremony is scheduled for Feb. 28 at the $40.5 million, 110-unit property at 23733 N. Scottsdale Rd., in Scottsdale. Liv Communities has senior living communities in Gilbert and Ahwatukee.
The interior dining area at LivGenerations Pinnacle Peak.
LivGenerations Pinnacle Peak totals 170,000 SF and offers independent living, assisted living, and memory care apartment homes. The Terrace Apartments (independent living and assisted living) offer eight floor plans. Alla Vita (memory care) offers two floor plans.
“We are delighted to open our doors to the neighborhood of Pinnacle Peak, and welcome everyone to experience what makes LivGenerations such a special place for older adults to call home,” said Scott McCutcheon, COO of LivGenerations. “Our community is not simply the newest, most stunning older adult community in the area, it is a one-of-a-kind masterpiece. Our team is trained and dynamically determined to assure each customer is living life to the fullest.
“The independent living, assisted living, and memory care community is LivGenerations’ third resort-style senior living environment that represents what today’s seniors demand in housing,” McCutcheon said.
LivGenerations Pinnacle Peak features a full range of luxury amenities including classes in the state-of-the art Liv Fit Fitness Center; a heated saltwater pool; yoga and meditation; a walking club; non-denominational worship services; the Mosaic Art Studio; and the Orchid Salon and Day Spa.
Social amenities include wine tastings in the Infusions Wine Cellar; Barley’s Bourbon Bar, the Silk Tassel Tea Room; a movie theater; and a dog park.
Ryan Companies US, Inc., is the general contractor; Todd & Associates Inc. is the architect of record; and Thoma-Holec Design (LuAnn Thoma-Holec) is the interior designer.
Barley’s Bourbon Bar at LivGenerations Pinnacle Peak.
PHOENIX, ARIZONA (February 7, 2019) – The total annual economic impact of construction and operations within Arizona’s apartment industry is the equivalent to the state playing host to more than 10 Super Bowls each year.
The apartment industry generates 22,000 jobs, $699 million in wages, and $3.8 billion in economic output each year as 37 percent of Arizona residents live in rental housing.
Those are some of the findings outlined in the Arizona Apartment Market Analysis, a report conducted by Elliott D. Pollack & Company for the Arizona Multihousing Association. The report addresses multiple factors related to the apartment industry in Arizona including an outlook on the state of the industry.
“Buoyed by strong job growth, increased personal income growth, positive demographic trends, and solid net migration inflows, the Arizona multifamily market is very healthy,” said John Carlson, Board Chair of the Arizona Multihousing Association and President of Mark-Taylor Residential. “Pro-growth policies by our state’s leadership have helped to encourage economic growth and will continue to play a major factor in keeping our industry healthy.”
The report also shows that demand for multihousing continues to be strong. A significant percentage of millennials – the largest age group in the U.S. – are reaching their peak rental years. Because they are delaying marriage, they prefer apartments for a longer period of time. In addition, the senior living cycle also appears to be extremely strong. Baby Boomers selling their houses and renting is also likely to increase.
Other findings in the report:
>> As of 2016, there were an estimated 2.9 million residential units in Arizona and about 2.5 million were counted as occupied units or household;
>> In terms of total residential rentals (including single family), about 37 percent, or 926,030, of total households were renter occupied.
>> The number of apartment permits has been increasing since 2012 and demand has grown steadily each year. In 2016 and 2017, more than 10,000 units were permitted each. 2018 appears to be on track for similar results.
>> The average apartment in Metro Phoenix is 826 SF. Cities with new communities have an average of more than 1,000 SF per unit.
>> Metro Phoenix average rent per month was $938 in 2Q 2018, up from $908 in 4Q 2017. In Greater Tucson, rents averaged $682 in 2Q 2018, up slightly from $670 at year end.
Across Arizona, 32 percent of renter households require affordable housing (earning less than $25,000 a year). Households best accommodated by workforce housing (earning between $25,000 and $75,000 a year) represent 48 percent of the total market.
The report suggests there is a strong need for future supply to address a lack of affordable housing, a portion of which will be met by aging apartment communities that have historically lowered rents over time.
“The supply that is being planned and built appears to be primarily in high end of the market,” said Courtney LeVinus, President and CEO of the AMA. “The report illuminates what we’ve been saying – ‘this is where the supply/demand imbalance is most noticeable in Arizona.’ There is a need and strong demand for reasonably priced housing in all forms that are close to employment centers and transportation.”
In Arizona, an estimated 32 percent of households pay more than 30 percent of their income for housing expenses. The term for this is “being cost burdened,” the report states. Of those cost‐burdened, nearly 351,000 households are considered “severely cost burdened,” households that spend 50 percent or more of their income on housing costs.
Based on the medium family income of $65,012 and applying 30 percent to housing costs, a family in Arizona can afford a home priced up to $269,000. By comparison, the median new home price in Metro Phoenix is just over $303,000 and the median resale price is $253,000.
Families at the median income level are largely priced out of the new-home market and apartments continue to be a viable solution for affordable housing at each level of income, according to the report.
Housing affordability is a top priority for many governments across the state. It states: “Many communities are well aware of the persistent and growing need for affordable housing solutions for their residents.”
Major factors that contribute to affordability, according to the report, are land prices and the rising costs of labor and construction material.
The report indicates ways for governments to help encourage affordable housing include density bonuses, expedited approvals, and below market pricing of underutilized government land. Tax incentives could be made available to developers that include an affordable housing component such as waiving building permit of impact fees, waiving city-imposed development costs, and pursuing GPLET designations.
The report showed that occupancy has been strong in the state’s two major metro areas. In 2Q 2018, Metro Phoenix recorded an average vacancy rate of 7.1 percent; Greater Tucson’s rate was 6.7 percent.
Data was provided by municipalities within Maricopa and Pima counties and include number of permits, inventory, rents, and vacancy. Read the report here.
PHOENIX, ARIZ. (February 7, 2019) – When Park Central Mall opened in 1957, it quickly became the center of activity along Central Avenue. But over time, Park Central was unable to compete with newer, enclosed shopping malls.
Fast forward to the present: The time is right for Park Central to write its next chapter, making the most of its ideal location in the heart of Phoenix to become a dynamic, revitalized mixed-use project.
AZCREW, the leading organization for senior-level executive women in the Metro Phoenix commercial real estate field, will present “The New Park Central” at its February luncheon.
Guest speakers for the Feb. 19 event at the Phoenix Country Club, 2901 N. 7th St., are Stanton Shafer, COO of Holualoa Capital Management; and Scott Baumgarten with Transwestern.
Nearly all the mall’s original buildings still stand, and most have only cosmetic changes. They are being repurposed into modern office, and retail space. The mid-century-modern style of the past is evident in buildings that were constructed with some extraordinary architectural touches. All of these features will be at the center of the revitalized property.
AZCREW’s February lunch begins with networking at 11:30 a.m. The program starts at noon. Member registration is $45 (early bird by February 8, $40); non-member pre-registration is $65. Lunch is included. Registration ends February 14. Register here.
PHOENIX, ARIZONA (February 6, 2019) – NAI Horizon is pleased to announce that Matt Harper, CCIM, has been promoted to Vice President.
Harper wrapped up a stellar 2018, leading NAI Horizon brokers with the most transactions by an individual, 63 (worth $28.8 million). He closed out 2018 representing the buyer in a $4.7 million acquisition of a freestanding, 11,878 SF, four-tenant retail PAD in Glendale, Arizona.
Harper ranked No. 9 among the Top 10 Producers for 2018. He holds the prestigious designation of Certified Commercial Investment Member (CCIM) and is the 2019 Secretary/Treasurer for the Central Arizona chapter of CCIM.
“Matt exemplifies what it takes to be a successful member of our NAI team,” said Terry Martin-Denning, President and CEO of NAI Horizon. “I am delighted to reward Matt’s hard work and client-focused approach with this well-deserved promotion.”
Harper, who joined NAI Horizon in June 2017, focuses on retail leasing and sales.
“Having the resources available through NAI Horizon and the NAI Global platform, along with a vibrant retail market in the Valley, contributed to my success the last year,” Harper said.
PHOENIX, ARIZONA (February 5, 2019) – The investment sale of an office building at 10240 W. Bell Rd., in Sun City, Arizona, for $2.195 million highlights recent deals closed by NAI Horizon professionals.
Tom Bean, CCIM, and Stan Matzinger negotiated the sale of an office property, representing the seller, 10240 Bell Road Associates, LLC, for $2.195 million. The property is located at 10240 W. Bell Rd., Sun City, AZ. John Oushana with HomeSmart represented the buyer, Vintage Garden Properties, LLC.
Troy Giammarco, Tyler Smith and Joe Pequeno negotiated the sale of a 2,381 SF office property, representing the seller, Srdich Investments, LLC, for $481,500. The property is located at 8765 W. Kelton Lane, Peoria, AZ. Sean Gillespie with Nathan & Associates Inc. represented the buyer, Pisa Properties Sixteenth, LLC.
Troy Giammarco, Tyler Smith and Joe Pequeno negotiated the sale of a 2,294 SF office property, representing both the buyer, Pisa Properties Sixteenth, LLC, and the seller, 8700 Kelton Campus, LLC, for $326,000. The property is located at 8765 W. Kelton Lane, Peoria, AZ.
Laurel Lewis represented the tenant, Southwest Behavioral Health, in a 70-month office lease renewal for 8,490 SF at 2580 Highway 95, Bullhead City, AZ.
Rick Foss and Laurel Lewis represented the landlord, Roeser2001, LLC, in an 88-month industrial lease for 10,832 SF at 5202 S. 39th St., Phoenix, AZ. Brian Payne with Lee & Associates represented the tenant, AZ Environmental Progress, Inc.
Chris Gerow, Shelby Tworek, Gabe Ortega and Patrick Anthon represented the landlord, New Bell Tower, LLC, in an 86-month retail lease for 4,471 SF at 4961 W. Bell Rd., Phoenix, AZ. Gordon Rasmussen with Martin Property Advisors, Inc. represented the tenant, PAS Charter, Inc.
Chris Gerow, Shelby Tworek, Gabe Ortega and Patrick Anthon represented the tenant, Kokomo Ridge, LLC, in a 36-month industrial lease for 8,824 SF at 2618 N. Ogden Rd., Mesa, AZ. Cory Sposi with Commercial Properties, Inc. represented the landlord Mesa Ridge Business Park I, LLC.
Chris Gerow, Shelby Tworek, Gabe Ortega and Patrick Anthon represented the landlord, New Bell Tower, LLC, in a 60-month retail lease for 1,550 SF at 4925 W. Bell Rd., Phoenix, AZ. Tram Chu with West USA Realty represented the tenant, Dipping Nails, LLC.
Matt Harper, CCIM, represented the tenant, A&G Companies, LLC, in a 61-month retail lease for 1,400 SF at 15605 W. Roosevelt Str., Goodyear, AZ. Jenette Benette with Kidder Mathews represented the landlord, Parkway Village, LLC.
Tom Bean, CCIM, represented the tenant, Monterey Energy, Inc., in a 38-month industrial lease for 2,555 SF at 1820 W. Drake Dr., Tempe, AZ. Brian Payne with Lee & Associates represented the landlord, LPC Arizona 1, LLC.
Laurel Lewis represented the tenant, Paradigm Design, PC, in a 12-month office lease for 1,572 SF at 4650 E. Cotton Center Blvd., Phoenix, AZ. Michale Crystal and Emily Curry with Newmark Knight Frank represented the landlord, Cotton Center Corporate Office, LLC.
Matt Harper, CCIM, represented the landlord, JAS Properties, LLC, in a 12-month retail lease for 1,250 SF at 12306 N. 32nd St., Phoenix, AZ.
PHOENIX, AZ. (Jan. 29, 2019) – Terry Martin-Denning, President and CEO of NAI Horizon, was named to the NAI Global 2019 Leadership Board at the commercial real estate firm’s annual convention in Austin, Texas.
“We are very pleased to have Terry in this role,” said Jay Olshonsky, President of NAI Global. “The success of NAI Horizon is a testament to her leadership skill. Our offices are very fortunate and will benefit from her experience.”
The NAI Leadership Board provides proactive leadership to increase the profitability, professionalism, technical capability, integrity and standards of practice that reinforce and breed mutual trust and respect throughout the organization. It fosters and promotes activities and productivity of offices, agents and the organization at-large.
“I’m honored to be selected to serve with the other members of the Leadership Board,” Martin-Denning said. “This is an opportunity for us to build on the successes of NAI and ensure that we continue to innovate across the globe and move forward in an industry that is continually changing.”
Martin-Denning has been with NAI Horizon and its affiliated companies since 1985. She was appointed CEO in January 2015 after serving as COO and Designated Broker for nine years.
In her role as President and CEO, Martin-Denning is responsible for the overall strategy of NAI Horizon, providing leadership and direction for their offices in Phoenix and Tucson. She boasts a commercial real estate career that spans more than 30 years and has extensive experience in accounting and operations, lease and contract negotiations, property management, and receivership for all commercial product types.
Martin-Denning is visible in the business community and active in Valley Partnership, NAIOP Arizona, AZCREW, Urban Land Institute Arizona, and ICSC. She is Treasurer and President Elect of AZCREW for 2019 and will serve as President of AZCREW in 2020.
Her philanthropic involvement includes community outreach with the Valley Partnership Community Project, Brokers for Kids, Save the Family, Paz de Cristo, Child Crisis Center, and St. Mary’s Food Bank.
Martin-Denning earned her business administration degree from the University of Montana with a major in accounting and minor in psychology.
PHOENIX, ARIZ. (January 29, 2019) – Magnum Companies, a Phoenix-based designer, fabricator, and installer of metal components, is celebrating 40 years of crafting iconic masterpieces in Arizona and across the U.S.
Magnum was formed in 1979 when its founder, Glenn Brockman, an engineer with General Electric, started building weight-lifting equipment. From that humble beginning, Magnum now has 65 full-time employees, a 32,000 SF manufacturing building at 2439 S. 49th Ave., in Phoenix, and a 16,000 post-production building nearby.
Drive around the Valley and Magnum installations stand out. They include Impulsion, the stainless-steel horse by Arizona artist Jeff Zischke that graces the entrance to WestWorld in Scottsdale; Shadow Play, a series of sculptures along Roosevelt Row in Downtown Phoenix; and a major renovation of the Royal Palms Resort & Spa in the 1990s.
“The footprint that Magnum has made in the Valley the past 40 years is a great sense of pride,” said CEO Greg Brockman, son of the founder. “As our employees drive around town and see the projects, or take place in the ribbon cuttings, it connects the dots that this is what we do and this is your work. It helps in retaining employees because it brings their family into the mix.
“The horse at WestWorld was an epic project, and we made sure that every employee at the time had a hand in building it,” Brockman recalls. “We handed a tube to the office staff and that person passed it on. That was truly being a part of the fabrication and installation. Everybody talks about it; people still send me pictures when they pass by it.”
Grand Canal in Tempe.
Magnum won four Gold Awards at the 2018 Ernest Wiemann Top Job Competition for outstanding craftsmanship sponsored by the National Ornamental & Miscellaneous Metals Association (NOMMA). The awards were presented at NOMMA’s 60th-anniversary dinner in Phoenix.
Magnum’s Gold Awards were at the Grand Canal, Tempe; Alliance Bank, Gilbert; Moebius/Cloud, Culver City, California; and Shadow Play, Phoenix.
“Magnum has been a fabricator on many of our projects over the years and we really appreciate their passion and ability to help us realize our concepts,” said John Kane, FAIA LEED, Architect | Founding Partner at Architekton. “We really appreciate their willingness to collaborate with us, bringing their expertise and skillsets to the table and helping find solutions that not only meet the budget, but exceed our aspirations.”
Longevity is key to Magnum Companies. Its third employee, Rod Bruns, is still with the company. He is celebrating his 37th year. Greg Brockman has been with Magnum from Day 1. While in high school and college he worked as a laborer, machinist, and painter. He assumed the helm when his father, now 88, retired at 75.
“Greg has done an admirable job communicating Magnum’s vision to his team,” said Joe Hitzel, Owner of Southwest Architectural Builders, Inc. “We have had great experiences working with Magnum in the delivery of projects. Magnum enhances our project partners as a great subcontractor. It is awesome to both work with his team and also see Magnum’s artesian quality work enhance our projects.
“Greg has successfully grown Magnum to a place where its work is part of the design community’s vocabulary. I’ve seen firsthand where architects have described Magnum’s work as a proprietary product on the same level as a building’s sophisticated fire alarm or energy management system,” Hitzel said.
In 1995 Magnum Engineering Inc. added a construction division, Magnum Architecture, Inc. It became a subcontractor and handled manufacturing and installation for its clients.
“Where steel was previously only seen as a structural element of a building to be hidden and concealed by framing and stucco, Greg has brought structural steel and Magnum’s work to be the focal point of a structure’s exterior elevations. Steel is now celebrated and a key element in a structure’s design,” Hitzel said.
Magnum Companies is now a “go-to” firm for the installation of public art projects. It currently is working on 12 public art installations in Arizona; El Paso, Texas; Seattle, Washington; and Southern California.
“Our people have a passion for what they do,” Greg Brockman said. “This is true for the young welders we train and employ to those who have been around for years. Our employees are our greatest asset. They bring heart, passion and a great work ethic to the building every day. I can train other parts of the business, but not that. The strengths they possess come from within.”
Shadow Play on Roosevelt Row in Downtown Phoenix.
PHOENIX, ARIZ. (January 29, 2019) – With their shared border, Arizona and the Mexican state of Sonora have positioned themselves as one of the most competitive export manufacturing locations in the world.
This “mega region” is utilizing its collective resources, highly-trained work forces, and strategic ports of entry in sharing a vision aimed at attracting high technology global manufacturers in a wide array of industries, including automotive, aerospace, medical, defense, and mining.
The Phoenix chapter of Lambda Alpha International (LAI), in cooperation with the LAI Sonoran Desert chapter, will host the leading Mexican maquiladora and export manufacturing council, Consejo Nacional de la Industria Maquiladora y Manufacturera de Exportación (INDEX), Feb. 5 at Arizona Country Club. Javier Ortiz, Director of Foreign Trade for INDEX, will be the presenting official.
INDEX plays a critical role in supporting Mexico’s maquiladora and export manufacturing industry. Its mission is to represent with efficiency and professionalism the maquiladora and export manufacturing industry, through quality actions and services, to ensure that Mexico is a leader in the global economy.
The Feb. 5 lunch event at Arizona Country Club, 5668 E Orange Blossom Lane in Phoenix, begins at 11:30 a.m. and ends at 1 p.m. Registration fee is $45 for LAI Arizona members and $65 for non-members. Lunch is included. Click here to register.