by Peter Madrid | Feb 19, 2020 | News & Updates
TEMPE, ARIZ. (Feb. 19, 2020) – Caliente Construction Inc., broke ground Feb. 18 on a combination office and hangar building at Phoenix-Mesa Gateway Airport for Aviation Performance Solutions, the largest provider of upset prevention and recovery training in the world.
Caliente, an Arizona-based general contractor providing commercial construction services in the Western U.S. for almost 30 years, collaborated with architect Dekker Perich Sabatini on the $9 million development that initially consists of approximately 10,000 SF of office and training space on two levels and 14,000 SF of hangar space.
The new facility will provide airplane pilots with the advanced skills to overcome the No. 1 cause of aviation-related fatalities, loss of control in-flight. Aviation Performance’s new headquarters facility complex will be two separate developments at the Phoenix-Mesa Gateway Airport.
“The expansion by APS at the Phoenix-Mesa Gateway Airport with these two all-new facilities underscores our commitment to the economic growth of the region, creating jobs, and expanding our ability to meet a major shift in demand for our unique flight training services,” said Paul B.J. Ransbury, CEO of Aviation Performance Solutions. “We help pilots bring everyone home safely. Our team is dedicated to saving lives in aviation by aggressively solving the top threat to commercial flight operations worldwide.”
The first development will be used by APS as its world headquarters building and is a combination office and hangar building with office space hangar space. The first-floor office space will be used primarily for education and training activities with support for flight operations.
A comfortable customer lounge will be directly adjacent to the flight line on both the first and second floors.
The second-floor lounge will have access to an outdoor viewing deck that gives direct views to flight activities. The remainder of the second floor will be occupied by the APS corporate offices and provides open office areas with a view to the common courtyard area.
The facility is designed to have a modern aviation aesthetic with sweeping curves and abundance of glass and natural light.
“Caliente Construction is extremely proud to be a part of the Aviation Performance Solutions’ new headquarters and training facility and support their mission of making commercial air travel safer,” said Caliente Construction President/CEO Lorraine Bergman. “This is an important project which will boost the area’s economy and bring international attention to Phoenix-Mesa Gateway Airport.”
The second development on the property is a speculative hangar and office building and will also be used by APS for operations. This building provides approximately 4,000 SF of office space and 35,000 SF of hangar space that is large enough to house multiple G650 aircraft. The office areas provide convenient access to the hangar functions as well as the shared outdoor courtyard.
Both facilities are easily accessible from main airport roads and provide direct access to flight operations from the hangar areas and have convenient parking that allows for easy access to each building. The project is expected to be completed by January 2021.
About Caliente Construction:
Caliente Construction is a family-owned, award-winning commercial general contractor recognized for its safety, exceptional services, and sincere commitment to the community. Founded in 1991, Caliente provides a full range of construction services to commercial, industrial, educational, healthcare, hospitality, energy and mission critical clients throughout the Western United States, including: Arizona, California, Oregon, Washington, Nevada, Colorado, New Mexico, Utah, Wyoming, Montana and Idaho. To learn more about Caliente visit www.calienteconstruction.com.
by Peter Madrid | Feb 18, 2020 | News & Updates
GILBERT, Ariz. (February 18, 2020) – Restoration and facility maintenance professionals Corina Burton and Patrick Maez have combined their expertise and launched a new firm, CPR Construction Cleaning.
The Gilbert-based firm offers three phases of cleaning: progress/rough cleaning, final cleaning and touch-up cleaning. The company can handle projects from 300 square feet to more than 1 million SF. Services include ongoing maintenance cleaning, hard-surface floor cleaning and maintenance, window cleaning, pressure washing and parking lot sweeping.
Burton and Maez possess more than 20 years of experience in business development, managing strategic national accounts, marketing, sales and relationship building. Burton previously served as Director of Business Development at EHS Restoration. Maez formerly was Executive Director at Square Care, a mission-critical/data center cleaning and carpet and textile cleaning firm.
“Our clients range from general contractors, commercial real estate professionals, property managers and corporate and multifamily/residential professionals,” said Maez, who possesses more than15 years of experience managing strategic national accounts and operations within the facility maintenance industry.
CPR’s three-phase construction cleaning process assures that newly constructed space is move-in ready.
“We work during the actual construction phase removing and cleaning all construction debris, caulking and adhesives,” Burton said. “We thoroughly clean windows, glass doors and glass partitions. General cleaning of walls and floors are also included during this phase.”
The final clean consists of a very detailed clean from the ceiling, walls, windows, glass, doors to baseboards and floors. A week or so after the dust settles, CPR goes back in and wipes down all horizontal surfaces to assure that all dust and debris is eliminated.
“At CPR we focus on teamwork,” Burton said. “Teamwork is the result of groups working together to effectively and efficiently achieve the organizational tasks, vision and mission.”
For more information, visit cprclean.com.
by Peter Madrid | Feb 17, 2020 | News & Updates
PHOENIX, ARIZ. (Feb. 17, 2020): The $2.15 million sale of an automotive retail building in Chandler and the $860,000 sale of an office building in North Central Phoenix highlight recent deals closed by NAI Horizon professionals.
Sale Transactions:
Mark Wilcke negotiated a sale of a 9,974 SF retail building, representing the seller, 1731 Arizona Warner LLC, for $2.15 million. The property is located at 1731 N. Arizona Ave., Chandler, AZ. The buyer, Mesa Campus LLC, represented itself.
Kevin Higgins negotiated a sale of a 3,866 SF office building, representing the seller, SB Spartan Enterprises, LLC, for $860,000. The property is located at 1747 E. Morten Ave., Units 105-110, Phoenix, AZ. The buyer, ELM Holdings, LLC was represented by Justin Cirell with ROI Properties.
Lease Transactions:
Chris Gerow, Shelby Tworek, Gabe Ortega and Patrick Anthon represented the tenant, Ken’s Nails. in a 60-month lease for 1,500 SF at 439 S. Ellsworth Road, Mesa, AZ. The landlord, Evergreen-Broadway & Ellsworth, LLC, was represented by Mike Ord with DL Slaughter.
Don Morrow, Mike Myrick and Dylan Whitwer represented the landlord, AP-PP, LLC in a 60-month office lease for 2,405 SF at 401 W. Baseline Road, Tempe, AZ. The tenant, Megan Stanek and Seema Bacon, were represented by Kathleen Holmes with ROI Properties.
Mike Myrick represented both the landlord, Thomas Investments Limited Partnership, LLP and the tenant, Pulmonary Associates, PA in a 36-month office lease for 3,841 SF at 1112 E. McDowell Road, Phoenix, AZ.
Chris Gerow, Shelby Tworek, Gabe Ortega and Patrick Anthon represented the landlord, Joanie Geroulis, in a 36-month retail lease for 1,848 SF at 15443 N. Cave Creek Rd., Phoenix, AZ. The tenant, German Auto AZ, LLC, represented themselves.
Matt Harper, CCIM represented the tenant, Puleo Fitness, Inc., in a 60-month retail lease at 3220 W. Southern Ave., Phoenix, AZ. The landlord, MBB Laveen, LLC, was represented by Jennifer Eggert with Orion Investment Real Estate.
Thomas Bean, CCIM represented the sublandlord, Orora Packing Solutions, in a 21-month office sublease at 1900 W. University Dr., Tempe, AZ. The tenant, Barrett Financial Group, LLC, was represented by Michael Douglas with Commercial Properties Inc.
Don Morrow, Mike Myrick and Dylan Whitwer represented the landlord, AP-PP, LLC, in a 39-month office lease for 2,086 SF at 401 W. Baseline Road, Tempe, AZ. The tenant, Optimal Health and Wellness, Inc., was represented by Nancy Dang with Keyser.
Rick Foss and Jay Olson represented the landlord, Friedman Anthem, LLC, in a 38 mo. industrial lease for 2,330 SF at 42302 N. Vision Way, Anthem, AZ. The tenant, Sonoran Cycles, LLC, was represented by Alan Houston with SRS Real Estate Partners.
Matt Harper, CCIM represented the landlord, Robert Lee Thatcher and Arlene A. Thatcher, in a 38-month retail lease for 1,215 SF at 7025 N. 48th Ave., Glendale, AZ. The tenant, Duran Bennett and Stephanie Bennett represented itself.
Don Morrow, Mike Myrick and Dylan Whitwer represented the landlord, Richard & Lisa Ivicevic, in a 24-month office lease for 694 SF at 600 E. Baseline Road, Tempe, AZ. The tenant, East Valley Senior Care, LLC, was represented by Goldstar Business Brokers.
by Peter Madrid | Feb 10, 2020 | News & Updates
PHOENIX, ARIZ. (February 10, 2020) – Jim Mahoney, an industry veteran who has led Trammell Crow Company’s Phoenix business for 25 years, will be honored with the 2019 Award of Excellence at the Best of NAIOP on March 26 at the Camelback Inn.
As the firm’s Principal, Mahoney now focuses on strategic growth and sourcing initiatives. A third-generation native of Arizona, he brings 40 years of comprehensive development and investment experience, totaling 12 MSF with a value of $2.5 billion.
The NAIOP Arizona Award of Excellence recognizes an individual who has made a significant, positive impact on the commercial real estate industry in Arizona over a period of at least 15 years, along with direct volunteer contributions to the chapter.
“I can’t think of anyone more deserving of this award than Jim,” said Jim Wentworth, 2020 NAIOP Arizona chairman, Wentworth Property Company. “He has been a mainstay in this market for decades and has always operated with the utmost integrity. Not only has he had a major impact on the Valley’s real estate market, but he is also a highly-regarded and well-liked member of our community.”
Mahoney is well known in the Valley’s commercial real estate industry. Besides being a NAIOP Arizona full member, his activities include ASU Real Estate Council, Advisor to ASU MRED Program, Founding Member/Past President Chrysalis Domestic Violence Shelter, Life Member Executive Council Charities, Banner Foundation Home Away from Home Committee and VFW Post 6310 Capital Campaign Committee.
“It was tough sledding through the preliminary rounds of the competition,” Mahoney said. “I feel fortunate to have made it to the finals. I’m kidding, but seriously, NAIOP Arizona has been the torch-bearing leader for industry networking, advocacy and education throughout my 40-year career. Trammell Crow Company has been a staunch supporter. I’m honored and humbled to receive the Award of Excellence and I’m looking forward to the Best of NAIOP event.”
Mahoney earned a Bachelor of Science degree in Business Administration from the University of Arizona. He is a licensed broker with the Arizona Department of Real Estate and a two-time recipient of the distinguished “Trammell” award from TCC recognizing outstanding real estate project performance.
NAIOP, a 20,000+ member organization in North America, advocates responsible commercial real estate development and advocates for effective public policy. It is the leading organization for developers, owners and related professionals in office, industrial, retail and mixed-use real estate. NAIOP provides unparalleled industry networking and education, and advocates for effective legislation on behalf of our members.
by Peter Madrid | Feb 10, 2020 | News & Updates
TEMPE, ARIZONA (February 10, 2020) ‒ Liv Communities, a leader in multi-family and senior living development and property management, has been recognized in Arizona and Michigan for its high Online Reputation Assessment (ORA) scores for 2019.
Liv Communities ranked No. 3 nationally in the Division IV category (2,000 to 9,999 units) with an ORA of 84.92. The average ORA of all companies in that category was 61.66.
Liv Avenida Apartments in Chandler ranked fifth in Arizona with an ORA of 93. Liv Arbors in Traverse City, Mich., ranked eighth with an ORA of 89.
ORA scores are determined by J Turner Research, the leader in online reputation research in the multifamily industry, and represent the industry standard to measure and benchmark a property’s online reputation.
“We are humbled by our beloved residents who continue to share their great experiences with others. The honor of being recognized for contributing to their happiness is great inspiration for us to continue to improve our brand for every Liv customer,” said Heidi Arave, Vice President of Liv Multifamily. “We love helping people ‘liv’ fuller lives, and hearing we’ve made a positive impact for our residents is what gets us up in the morning.”
The ORA score is an aggregate compilation of a property’s ratings across more than 21 review sites and Internet Listing Services (ILSs). Multifamily Executive (MFE), J Turner’s media partner, publishes the rankings each month.
J Turner has produced more than 25 national research studies that highlight emerging trends, shifting demographics, industry best practices and new market opportunities.
To enrich the lives of its residents, Liv incorporates elements of technology, sustainability, wellness and community into its community designs. Liv offers resort-style, state-of-the-art amenities including resort-style pools and spas, fully equipped fitness centers with personal trainers, indoor and outdoor lounge areas, game rooms, parks, walking paths and more.
About Liv Communities
Liv Communities helps people live fuller lives by developing, owning and operating luxury residential communities through their Liv multifamily and LivGenerations senior living brands. In addition to providing prime locations, premium finishes, inspired designs, and resort-style amenities, Liv Communities provides extensive opportunities for residents and team members to engage in community activities and with each other that ultimately results in their staying longer and referring others to join them. For information visit livcommunities.com.
by Peter Madrid | Feb 10, 2020 | News & Updates
PHOENIX, ARIZONA (February 10, 2020) – NAI Horizon Senior Vice President Denise Nunez collaborated with Senior Vice President Nathan Farha, a commercial specialist with NAI Martens, in negotiating the $8.175 million sale of a three-property self-storage portfolio in Wichita, Kansas.
Nunez and Farha represented the seller, Leon J. and Susan L. Moeder of Wichita, Kansas. The buyer was Wichita Self Storage Group LLC.
The portfolio includes STOR-ALL Amidon, 43,930 SF, 330 units; STOR-ALL Pawnee, 67,520 SF, 365 units; and STOR-ALL Hydraulic, 11,450 SF, 85 units.
“NAI Horizon launched a national marketing effort which drew numerous qualified buyers for this three-property portfolio,” Nunez said. “While the deal was complicated
by unforeseen issues, all parties worked together to ensure a successful closing.”
The facilities are strategically located approximately 3 miles from each other. The portfolio comprises 780 units and 122,900 net rentable SF. Each facility is located in markets with excellent demand characteristics for self-storage. The three facilities were formerly family-owned and operated.
Nunez specializes in self-storage, offering localized expertise in Arizona and national representation working with NAI offices throughout the U.S.
by Peter Madrid | Feb 6, 2020 | News & Updates
PHOENIX, ARIZONA (February 6, 2020) – Arizona Multihousing Association, the statewide trade group for the apartment industry, announces the election of its 2020 officers and board members.
Assuming the chair is Kim Pacheco, CPM, Director of Multifamily Operations at Scotia Group Management Inc., in Tucson. Joining Pacheco on the leadership group are Reid Butler, vice chair, Butler Housing Company; Scott Hines, treasurer, PEM Real Estate Group; John Carlson, immediate past chair, Mark-Taylor Residential; Linda Coburn, secretary, NexMetro Development; and Sue Campbell, AMC executive, Redi Carpet.
“AMA is more than 50 years strong and in 2020 we will be larger and stronger than ever,” Pacheco said. “We are starting 2020 with more than 288,000 units in membership, almost 90,000 more 10 years ago. This year we will continue to focus on legislative and regulatory priorities including the need for more affordable housing.”
Board members for 2020: Elizabeth Beaulieu, Quarterpenny Management; Krisanne Beckstead, Picerne Real Estate Group; Lesley Brice, MC Residential; Dahnn Brown, Camden Property Trust; Luz Bruscini, MEB Management Services; Crystal DeHoag, Bella Investment Group; Anna DiSabato, Dunlap & Magee; Kohl Eisenhour, Avenue 5 Residential; Natalie Evans, CoStar/Apartments.com; Kimberly Fitch, Nicolosi & Fitch, Inc.; Tim Furnas, Valley Wide Security.
Adam Greco, Burns Pest Elimination; Shelly Griggs, Avanti Residential; Kristin Heiple, Baron Property Services; Robert Hicks, Alliance Residential; Stacey Hogue, Greystar Real Estate Partners; Michelle Howland, Blue Steel Security; Susan Knowles, J.R. McDade; Matt Koglmeier, Koglmeier Law Group PLC; David Kotin, Kay-Kay Realty.
Sharon Kuhlman, Shelton Residential; Dustin Lacey, Mark-Taylor; Omar Mireles, HSL Asset Management; April Morris, Cox Communications; Gloria Munoz, Maricopa County Housing; Lisa Osborn-Warne, Priderock Capital Partners; Rich Renta, Weidner; John Rials, Western Wealth Capital; Lisa Rosenfeld, HSL Asset Management; Mark Schilling, MEB Management Services; Tina Schreiber, Alliance; Stacey Searl, Weidner; Christine Shipley, Dunlap & Magee.
Michelle Sinclair, Evergreen Devco, Inc.; Justin Steltenpohl, P.B. Bell Companies; Greg Stobart, MG Properties; Carmen Suggs, ConAm; David Vanek, Greystar; Luis Verger, Shelton Residential; Wendy Weiske, Gorman & Company; Debbie Willis, P.B. Bell; Nicole Wray, Greystar; Rhonda Wooder, Stratton Restoration; and Chris Worrell, GPM Landscape.
The AMA’s signature events are the Tribute Awards held in May at the Phoenix Convention Center (education conference and trade show), golf tournaments, Maintenance Mania events and charity bowl-a-thons held in both Phoenix and Tucson.
About Arizona Multihousing Association:
The Arizona Multihousing Association is the statewide trade association for the apartment industry, representing more than 2,200 members in legislative, legal, and regulatory matters. The AMA provides services, products, educational programs, and networking opportunities to promote ethical, quality rental housing throughout Arizona. For more information, visit azmultihousing.org.
PHOENIX, ARIZONA (February 6, 2020) – Arizona Multihousing Association, the statewide trade group for the apartment industry, announces the election of its 2020 officers and board members.
Assuming the chair is Kim Pacheco, CPM, Director of Multifamily Operations at Scotia Group Management Inc., in Tucson. Joining Pacheco on the leadership group are Reid Butler, vice chair, Butler Housing Company; Scott Hines, treasurer, PEM Real Estate Group; John Carlson, immediate past chair, Mark-Taylor Residential; Linda Coburn, secretary, NexMetro Development; and Sue Campbell, AMC executive, Redi Carpet.
“AMA is more than 50 years strong and in 2020 we will be larger and stronger than ever,” Pacheco said. “We are starting 2020 with more than 288,000 units in membership, almost 90,000 more 10 years ago. This year we will continue to focus on legislative and regulatory priorities including the need for more affordable housing.”
Board members for 2020: Elizabeth Beaulieu, Quarterpenny Management; Krisanne Beckstead, Picerne Real Estate Group; Lesley Brice, MC Residential; Dahnn Brown, Camden Property Trust; Luz Bruscini, MEB Management Services; Crystal DeHoag, Bella Investment Group; Anna DiSabato, Dunlap & Magee; Kohl Eisenhour, Avenue 5 Residential; Natalie Evans, CoStar/Apartments.com; Kimberly Fitch, Nicolosi & Fitch, Inc.; Tim Furnas, Valley Wide Security.
Adam Greco, Burns Pest Elimination; Shelly Griggs, Avanti Residential; Kristin Heiple, Baron Property Services; Robert Hicks, Alliance Residential; Stacey Hogue, Greystar Real Estate Partners; Michelle Howland, Blue Steel Security; Susan Knowles, J.R. McDade; Matt Koglmeier, Koglmeier Law Group PLC; David Kotin, Kay-Kay Realty.
Sharon Kuhlman, Shelton Residential; Dustin Lacey, Mark-Taylor; Omar Mireles, HSL Asset Management; April Morris, Cox Communications; Gloria Munoz, Maricopa County Housing; Lisa Osborn-Warne, Priderock Capital Partners; Rich Renta, Weidner; John Rials, Western Wealth Capital; Lisa Rosenfeld, HSL Asset Management; Mark Schilling, MEB Management Services; Tina Schreiber, Alliance; Stacey Searl, Weidner; Christine Shipley, Dunlap & Magee.
Michelle Sinclair, Evergreen Devco, Inc.; Justin Steltenpohl, P.B. Bell Companies; Greg Stobart, MG Properties; Carmen Suggs, ConAm; David Vanek, Greystar; Luis Verger, Shelton Residential; Wendy Weiske, Gorman & Company; Debbie Willis, P.B. Bell; Nicole Wray, Greystar; Rhonda Wooder, Stratton Restoration; and Chris Worrell, GPM Landscape.
The AMA’s signature events are the Tribute Awards held in May at the Phoenix Convention Center (education conference and trade show), golf tournaments, Maintenance Mania events and charity bowl-a-thons held in both Phoenix and Tucson.
About Arizona Multihousing Association:
The Arizona Multihousing Association is the statewide trade association for the apartment industry, representing more than 2,200 members in legislative, legal, and regulatory matters. The AMA provides services, products, educational programs, and networking opportunities to promote ethical, quality rental housing throughout Arizona. For more information, visit azmultihousing.org.
by Peter Madrid | Jan 28, 2020 | News & Updates
SCOTTSDALE, ARIZ. (Jan. 28, 2020) – What once stood as a chain grocery store and a subsequent consignment furniture store is being transformed by Sigma Contracting, Inc., into Arizona’s first H Mart, an Asian-American supermarket with 65 stores in 14 states.
The opening of the $5.189 million, 63,000 SF supermarket at 1919 W. Main St., in Mesa, is still about a month away. However, work continues at a feverish pace for the specialty retailer.
“This project has been cool from the get-go,” said Sigma President Dan Hinkson. “We have taken an old, dilapidated building and turned it into something updated, relevant and unique. It has been a nice collaboration, and challenging as well.”
New Jersey-based H Mart purchased the vacant building on the SEC of Main Street and Dobson Road in Mesa that was in major disrepair. Formerly an Albertson’s and Ultimate Consignment store, the shell has been undergoing a massive renovation.
Besides the grocery section, H Mart will include a bakery, pharmacy, small shops and an Asian restaurant food hall with six offerings. It will also feature a 3,000 SF community room.
“We were fortunate to find the right space in a community that has a growing Asian population,” said H Mart Executive Director Sam Q. Kim. “We’ve had quality partners throughout the entire process, including Dan Hinkson and Sigma.”
“The design process has been long and deliberate, with concerns for the customer experience and layout needs,” Hinkson said. “To offer good flow and efficiency required considerable attention to the design. Even after initial plans were fully completed, it was still determined that further modifications were needed for better customer flow.”
After subsequent redesign to facilitate a more open and functional environmental concept, Sigma started working on the project in March 2019.
“We worked with the design team and H Mart to explore several product and design changes to help reduce project costs,” Hinkson said. “And yet there were surprises when we cut up the floor. Because of the prior grocery use there were large sections of the floor that had to be abandoned because of pre-existing floor drains and many previous walk-in coolers and freezers.”
The project team had hoped that much of the existing mechanical system could be reused but upon discovery it was determined that most of the system was antiquated equipment that ultimately had to be replaced. Sigma worked with its vendors and helped H-Mart evaluate several options for replacement, including the cost of new equipment as well as the operational costs to run the new equipment. Because most of this equipment resides on the roof, the roof framing system required modifications to support the new equipment.
“One unique aspect of this project is that each of the multiple restaurant halls within the H Mart could stand on their own,” Hinkson said. “This was a great example of their collaboration with the Asian community of Mesa and Phoenix.”
The development team includes PORBel Architects, David Kim, architect; and key subcontractors Universal Piping, Advanced Demolition, Tri-Mega HVAC, State Electric and Melvin Concrete.
The seafood section of an H Mart has numerous offerings. (Photo courtesy of H Mart)
by Peter Madrid | Jan 23, 2020 | News & Updates
PHOENIX, ARIZONA (January 22, 2020) – A record number of applicants applied for the 2020 NAIOP Arizona Developing Leaders Mentor Program, known as the Young Professionals Group (YPG).
Twenty-six protégés, or young professionals, who come from all corners of the Valley’s commercial real estate industry, were selected to participate. This year’s first event was a YPG Kick-Off at The Gladly.
Each protégé in the six-month program will attend educational seminars and complete a development case study by the end of the program.
The 2020 class comprises Diego Almarel, Strategic Office Partners; Alex Anstey, Willmeng Construction; Jim Bulsiewicz, Hines; Christopher Campbell, BNC National Bank; John Coughlin, Prologis; Ashley Dykstra, Kinney Construction; Aaron Fox, Cushman & Wakefield; Joey Hakola, RED Development; Jimmy Hoselton, Newmark Knight Frank; Ryan Kates, STORE Capital; Ian Kennedy, The Remson Group; Austin Knebel, LevRose Commercial Real Estate; Stephanie Lanman, Leading Edge Real Estate.
Franklin Lee, Sharp Construction; Jonathan Loe, Sherman & Howard; Taylor McDonald, Whiting-Turner; Mike McWilliams Jr., Plaza Companies; Ashley Nye, Trammell Crow Company; Greer Oliver, Cushman & Wakefield; Adam Olson, CEVA Logistics; Brice Pall, Enterprise Bank & Trust; Jackson Paquette, SRP; Michael Roberts, JDM Partners; Scott Scharlach, Waterford Property Company; John Schott, Everest Holdings; and David Stull, CBRE.
The 2020 Co-Chairs are Mollie Zemer, Senior Development Association, Barclay Group; and Josh Tracy, Director of Real Estate Development, Ryan Companies US.
This year’s mentors are Phil Breidenbach, Colliers International; Megan Creecy-Herman, Prologis; Keith Ernest, VanTrust Real Estate; John Orsak, Lincoln Property Company; and Cathy Thuringer, Trammell Crow Company.
“The YPG program offers its participants insight into the components and complexities of evaluating a commercial development project,” said Thuringer, a long-time mentor of the YPG program. “The knowledge gained throughout the program together with the ability to work closely with industry leaders as mentors provide a valuable platform to further the professional growth of the proteges.”
Projects present market analysis statistics, architectural site plans, market studies and marketing plans, construction budgets and exit strategies to the judges for the final presentation by five teams.
The NAIOP Arizona Developing Leaders YPG program deepens young leaders’ knowledge of the industry and helps develop invaluable relationships with some of the industry’s most successful professionals.
All NAIOP members who are age 35 or under are eligible to apply for the YPG program, whether they joined through the Developing Leader membership category or as part of a corporate membership.
by Peter Madrid | Jan 22, 2020 | News & Updates
PHOENIX, ARIZONA (January 22, 2020) – The theme of the 13th Annual IREM-CCIM Economic Forecast was “The Real Scoop.” Judging by the comments of economists and industry panelists, the message that resonated was “Phoenix and Arizona are on fire.”
“Last year we talked about being late in the game and would there be extra innings,” said keynote speaker Elliott D. Pollack. “Where do we stand in the cycle now? Well, Phoenix is the most affordable major market in the Western U.S. We’re growing at three times that of other U.S. cities and still need to figure out how to deliver affordable housing. We’re likely to remain one of the top five metro areas in the country. Overall, I’d say the picture is positive.”
The Valley’s premier real estate outlook recently drew a crowd of more than 400 at the Omni Scottsdale Montelucia. Besides Pollack, the Economic Forecast featured panelists who specialize in office, industrial, multifamily and retail properties. The takeaways from each panel:
>> Office: The center of all activity continues to be Tempe, around Arizona State University and the Grand at Papago Park Center. Overall vacancy in that submarket is in the single digits. SkySong has added three more buildings, a hotel and an 800-unit multifamily project.
“We certainly have created an urban environment, a true live-work-play lifestyle,” said panelist Stan Shafer with Holualoa Companies, one of the developers of SkySong.
Medical office presents opportunities for brokers and owners alike, said Kate Morris with Transwestern.
“We don’t have enough doctors and facilities,” she said. “We certainly have more room for facilities. Right now, we have two hospitals under construction and more expanding. You don’t see that on the East Coast any longer.”
Added Johns Orsak with Lincoln Property Company:
“Our (the Valley) roster is now the Oracles of the world, financial companies. The diversity of the market has put us on sound footing here.”
>> Multifamily: While Arizona is enjoying a booming multifamily cycle, there are still issues on the horizon that could affect an industry that pumps $3.8 billion annually into the local economy.
“Last year is the first year we actually built enough units to meet the demand,” said John Carlson with Mark-Taylor. “The core of what creates demand is jobs. It’s all about jobs. But what keeps me up at night is rent control. It’s now an issue in 41 states.”
A lack of affordable housing is also a concern. More than 70 percent of all units built in the past few years have been specifically in Phoenix, Scottsdale and Tempe.
“The cycle is dynamic, and we have a lot of runway left,” said John Rials with Western Wealth Capital.
>> Retail: The new moniker for this property type, according to the panelists, is consumer real estate. A property type in which consumers want and expect an experience, whether it’s shopping or eating in a restaurant.
“Retail real estate is the best of all property types,” said Kalen Rickard with Western Retail Advisors. “We’ve had to reinvent ourselves. But think how we affect other property types, including multifamily and office. It’s still true that retail follows rooftops, especially in the Valley.”
“Retail is an amenity to attract workers and residents,” added Ari Spiro with ORION Investment Real Estate.
Trends? Josh Simon with SimonCRE said a popular trend is the unanchored retail center. “Retail is getting more localized,” he said.
>> Industrial: As new transportation corridors open around the Valley – namely the loops 202 and 303 freeways – the industrial market has flourished, panelists agreed.
“The Southwest Valley is experiencing an increase of larger big-box users because the land is cheaper out there,” said Jeff Foster with Prologis. “It’s e-commerce, food and beverage that is serving and fulfilling the population growth out there. The Loop 202 (South Mountain Freeway) is going to be a huge game-changer.”
The East Valley is also in demand of product, from 10,000 SF to 100,000 SF, according to Steve Larsen with JLL.
“The pent-up demand is now playing out,” Larsen said. “In-migration. Affordable housing. Pharma, aerospace and defense … industrial is being backfilled with lots of employment.”
Rusty Kennedy with CBRE agreed.
“The labor story is really what is driving activity in the Southeast Valley,” he said. “There are six or seven applicants for each job posting. Human resources is on the first tour. They want to know where the labor is coming from, where the kids will be going to school, where employees with be shopping.”
E-commerce, Megan Creecy-Herman said, is one of the darlings of the industrial sector. Data centers are the other.
The event was co-sponsored by the CCIM Central Arizona chapter (Certified Commercial Investment Member), commercial real estate’s global standard for professional achievement; and the Greater Phoenix Chapter of IREM (Institute of Real Estate Management), which comprises more than 280 professional commercial and residential real estate managers.
The recipient of this year’s Impact Award, Grand Canyon University President Brian Mueller, echoed the remarks made by Gov. Doug Ducey at his recent State of the State Address.
“This is one the best places to live and work,” Mueller said. “One of the biggest decisions the school made was to stay in West Phoenix. It’s a wonderful neighborhood of immigrants. What it needed was an economic catalyst. A lot is now going on west of Central Avenue. I feel extremely blessed to be at Grand Canyon and contribute to our local economy.”
Added Valley icon and long-time local businessman Jerry Collangelo, who presented Mueller with the award:
“Grand Canyon University is one of the greatest business and education stories in the country today. Brian could teach people a lot about real estate. He is very bullish on our economy. This is a very exciting time for all of you to be in this industry. Phoenix is on fire.”
CCIM Central Arizona President Marina Hammersmith (left) and IREM Greater Phoenix President Rosalinda Bridges open the 13th annual Economic Forecast. (Photo by Noelia Doherty).
