PHOENIX, ARIZONA (June 8, 2017): NAI Horizon Senior Vice President Rick Foss represented the seller and the buyer in the $965,000 industrial property acquisition at 5230 S. 39^th St., in Phoenix.

The seller was DJA Fiorano Holdings, LLC of Scottsdale, Ariz. The buyer was McDowell Sonoran Holdings, LLC.

“The buyer, Stone Tool Supply, intends to occupy the property once renovations are completed,” Foss said. “The facility will be utilized as the showroom/will call of their products as well as their operations and product distribution center.”

The buyer of the 10,054-square-foot property is a tool wholesaler. The seller is the owner of the Russo and Steele Auto Auction. The freestanding building features a 7,300 SF warehouse and 2,700 SF office. It has 16-foot clear ceiling height and a 21,630 SF lot that is fenced and secured.

The best reason to regularly check and compare property and casualty insurance policies is a concept that you have probably experienced in other consumer purchase experiences: price optimization.

How does this work? Consider the price of a Las Vegas hotel room on New Year’s Eve, compared to a Tuesday night in July. Another example is the street price of a sports ticket when the home team is on a winning streak compared to when it’s on a losing streak. In each case, market conditions set the price rather than the cost of the product. You take advantage of the bargain when demand seems low for the product or service.

For insurance policy costs, price optimization causes you to pay a higher price for a policy because of years of loyalty or simply convenience. Over time, the insurance company may seem to “sweeten” the deal by offering a discount on a new product or to bundle home and auto policies. Price optimization makes loyalty a penalty for you when fees or other charges added to the cost of insurance results in higher costs to you. You may be wise to treat the offer to bundle or to pay an additional fee as a good reason to start some comparison shopping.

The National Association of Insurance Commissioners (NAIC) has been studying the issue of price optimization because consumer insurance advocacy groups believe that the use of price optimization in insurance policy prices may be unfairly discriminatory.  For the technical definition, price optimization relies on consumers’ price sensitivity in determining the price paid for an insurance policy or the insurance rate for insurance coverage.

Translation: price optimization means that the insurance company has determined that you as the consumer will stay with the insurance company only if the price is at X, which may be significantly higher than what a similar new insurance policyholder with similar insurance coverage would pay. In simpler terms, your loyalty may not result in a bargain.

Insurance companies have their insurance rates approved by the respective state regulator where the company is doing business and have to use actuary calculations to support the rates.  The rates are traditionally analyzed based on projected costs, i.e., what is being insured and what can happen to cause the insurance company to pay.  Price optimization comes under scrutiny because the traditional calculations should result in all similar customers paying the same rate, rather than long term customers paying a higher rate.

The insurance industry believes that as long as rates meet the state requirements and the actuary models show the rates are sound, the discussion should end. Consumers may innocently believe that they are being rewarded for loyalty when just the opposite may be happening.

Some states have issued bulletins, policy statements and letters to put insurance companies on notice that price optimization practices will be closely monitored to see if consumers are being economically harmed.  These states may seek corrective actions with those insurance companies found to be in violation of the identified practices.

The consumer response in reviewing insurance products should be more proactive and include a “shop around” experience.  Once you have gathered the relevant information on insurance products, you can do some comparative shopping with your own insurance company.  You may want to check with your state Insurance Department or Insurance Commissioner to determine how the insurance company handles claims and complaints, and whether the insurance company meets the state requirements for rates. All insurance consumers should take advantage of any price optimization so that it works to their benefit.

Yvonne R. Hunter is a licensed attorney and the Principal Consultant for YH Strategies, LLC, in Phoenix, Ariz. After a stint with the Arizona Department of Insurance, she learned that many consumers remain unaware of some of the issues associated with insurance products. This blog reflects her opinion and should not be regarded as legal advice. She encourages consumers interested in learning more about their own insurance experience to contact their state department of insurance or insurance commissioner or seek advice from an attorney. If you would like additional information on matters dealing with consumer insurance products, you can reach Yvonne at yrhunteraz@gmail.com. 

     TEMPE, ARIZ.  (June 5, 2017) – Dena M. Jones has been promoted to Director of Strategic Partnerships, Assistant Vice President at Fidelity National Title Agency, a national leader in title insurance and real estate services.

Jones, who celebrates her third anniversary at Fidelity National Title in October, will be responsible for strengthening the company’s relationship within the real estate community, maximizing opportunities for its largest partnerships, and growing Fidelity’s footprint through leadership, philanthropic initiatives, and community involvement.

She will work with Sharon J. Terhune, Vice President, Residential Sales Manager, and the sales team to drive sales, increase market share, and add value. Jones previously served as Assistant Vice President, Sales Executive.

“Dena is a leader in the industry. We are thrilled to have her in this new role,” Terhune said. “She will help our company and our partners in her new position achieve revenue, retention, and growth goals.”

“Our executive team believes that having Dena on board truly makes our company better. I love Dena’s energy, keen business sense and dynamic personality along with her caring nature for her colleagues and clients,” Terhune said.

Jones is active in numerous industry groups. She is on the Board of Directors for Valley Partnership, a commercial real estate industry group that represents the development community. She is also involved with the SouthEast Valley Association of REALTORS (SEVRAR), the Phoenix Association of REALTORS (PAR), the Scottsdale Arizona Association of REALTORS (SAAR), and the Arizona Real Estate Investors Association (AZREIA).

She is on the Board of Directors for the Care Fund. Launched in 2010 by the “homeownership industry,” the Apollo Foundation, dba Care Fund, is a critical part of Arizona’s family support network. It works with hospitals, case workers, and the health and welfare communities. Jones has served in a leadership capacity with the Care Fund for three years.

Jones is Valley Partnership’s Board of Directors liaison for its community project, which is the legacy arm of the organization. She has been involved with leadership on the community project for six years. More than $1.2 million has been raised for the community project during her leadership role at Valley Partnership. She is also involved with the Scottsdale Active 20/30 Club, which sponsors Brokers for Kids, Agents Benefiting Children, and NiteFlite. All are fundraisers.

Jones has been in the real estate industry for more than 13 years as a third-generation real estate professional. She majored in journalism at Arizona State University.

A native of Phoenix, Jones is co-authoring a cookbook titled “To Taste” with her mother.

     PHOENIX, ARIZONA (June 5, 2017): NAI Horizon Senior Vice President Denise Nunez represented the buyer in the $2.775 million investment property acquisition
of Tucson Self Storage at 6459 E. Golf Links Rd., in Tucson, Ariz.

Nunez represented Western Tucson LLC in the transaction. Built in 1976, the property sits on 2.53 acres and totals 47,400 net rentable square feet ($58.54/SF). There are 584 units ranging in size from 5×5 to 10×30. Tucson Self Storage has 60 feet of frontage road on Golf Links Road with a traffic count of 46,000 vehicles daily.

“This is the deal that so many are looking for in a market environment where self-storage acquisition opportunities in Arizona are very thin,” Nunez said. “The property is well built and well located on a heavily-traveled street.

“With some physical and operational updates the buyer expects to quickly capitalize on an under-performing property. The property was sold at a 6.1 cap rate based on 39 percent economic vacancy,” Nunez said.

The seller was T/F Limited Partnership, LLLP.

PHOENIX, ARIZONA (June 1, 2017): NAI Horizon Senior Vice President Isy Sonabend negotiated the $1.53 million sale of an industrial building at 639 S. 54^th Ave., in Phoenix.

NAI Horizon represented the seller and the buyer in the acquisition of the 11,250-square-foot building located in an industrial subdivision.

The property sits on 2.14 acres. The buyer, EGV Associates of Ontario, Calif., dba AMREP, Inc., is a fabricator of waste collection trucks and mechanisms. Its clients include the City of Phoenix and Waste Management. The seller is Adam Garcia Properties, LLC, of Phoenix.

“Phoenix represents a growth market for AMREP,” Sonabend said. “Increased sales to its client base in Arizona and surrounding states prompted the capital investment for the launching of a fabrication plant and service center.”

The property was built in 2004. It features warehouse clear ceiling height of 20 feet serviced by three drive-in, grade-level doors. The site is secured with a block wall and provides ample trailer parking and outside storage. It is located south of Interstate 10 and 51^st Avenue.

PHOENIX, Ariz. (May 30, 2017) – The American Dream is changing to embody new technologies and desire for different living options.

How are homes of the future being transformed through innovation, including non-traditional options for changing demographics and markets? This and other questions will be answered at its next Main Program as ULI Arizona explores new tactics developers and builders are employing to streamline delivery efficiencies, and ways to capitalize on niche housing markets as unique opportunities.

Housing Our Future: Building For Innovation is scheduled for June 8 from 7:30 a.m. to 9:30 a.m. at The Esplanade Conference Center, 2501 E. Camelback Rd., Suite 50, Phoenix.

Moderating the event will be Tim Sullivan, Managing Principal, Meyers Research. Panelists include Mike Rock, President, Katerra Construction; Scott Root, Director of Virtual Construction, Kitchell; and Brian Stark, Co-Founder, STARKJAMES.

To register, visit arizona.uli.org/event/main-program-housing-our-future/

     TEMPE, ARIZ.  (May 30, 2017) – Fidelity National Title Agency is proud to announce that Leo Sanchez, Assistant Vice President, Commercial Sales Executive/Major Accounts, successfully completed the prestigious Arizona State University W.P. Carey School of Business Master of Real Estate Development Program.

Leo Sanchez

Sanchez, who has been with Fidelity Title for two years, is responsible for maintaining client relationships, account management, and business development for major accounts in the commercial real estate sector across all asset classes.

In addition to his recently-earned MRED degree, Sanchez also holds an MBA with a concentration in finance from the Keller Graduate School of Management.

“Leo is incredible at building relationships and connecting dots for his clients,” said Diane Day, Senior Vice President | Operations Manager at Fidelity National Title. “His customers deeply appreciate his passion for being a valued partner and we love that he relentlessly stays current and educated on industry trends in the commercial market.”

A native of El Paso, Texas, Sanchez is active in several industry organizations and serves on committees for ULI Arizona and NAIOP Arizona. He is also a member of Valley Partnership. Sanchez has lived in the Valley 17 years. He and his wife, Maricela, volunteer with various nonprofits, working with organizations that serve underprivileged children.

The nine-month MRED program prepares participants to lead real development projects that are environmentally respectful, socially responsible, and artfully designed. It is a transdisciplinary partnership between four highly regarded schools within ASU: The W. P. Carey School of Business; the Sandra Day O’Connor College of Law; the Herberger Institute for Design and the Arts; and the Del E. Webb School of Construction.

Sale Transactions:

Mark Wilcke negotiated the sale of a 15,097 SF industrial property, representing the buyer, Executive Investment, LLC, for $1.786 million. The property is located at 4148 W. Venus Way, Chandler, AZ. Kent Hanson of Cushman & Wakefield represented the seller, Tice Family, LLC.

Jeff Adams negotiated the sale of a 2,608 SF office property, representing the buyer, WM Symposia, Inc., for $417,280. The property is located at 2152 S. Vineyard, Suite 102, Mesa, AZ. Tim Tapia of Upland Group represented the seller, TSIT Holdings, LLC.

Rick Foss negotiated the sale of a 2,200 SF industrial property, representing the seller, Danny L. Miller, for $190,000. The property is located at 2434 S. 17^th Place, Phoenix, AZ. Raymond Brown of Person to Person Realty represented the buyer, Ruben B. Solares and Mana T. Solares.

Lease Transactions:

Tyler Smith represented the tenant, Landmark Title Assurance Agency of Arizona, LLC, in a 78-month office lease for 5,105 SF at 2555 E. Camelback Road, Phoenix, AZ. Patrick Boyle of CBRE represented the landlord, Esplanade Owner L.P.

Tyler Smith represented the landlord, Pacifica Palm Valley Center, L.P., in a 63-month office lease for 5,473 SF at 1626 N. Litchfield Road, Goodyear, AZ. Jason Moore of JLL represented the tenant, Jensen Hughes, Inc.

Chris Gerow, Shelby Tworek, Gabe Ortega and Patrick Anthon represented the landlord, The Market at Estrella Falls, LLC, in a 120-month retail lease for 2,500 SF at 1981 N. Pebble Creek Pkwy, Goodyear, AZ. Rich Andrus of Menlo Group Commercial Real Estate represented the tenant, ProSmiles Orthodontics, PLLC.

Chris Gerow, Shelby Tworek, Gabe Ortega and Patrick Anthon represented the landlord, Queen Creek Fiesta, LLC, in a 60-month retail lease for 1,950 SF at 21545 S. Ellsworth Loop Rd., Queen Creek, AZ.

 Sharon Reeves represented the tenant, Renew Sleep Solutions, Inc., in a 63-month office-medical lease for 2,309 SF at 5422 W. Thunderbird Rd., Glendale, AZ. Michelle Rae of Healthcare Management of America represented the landlord, HTA-Thunderbird Medical, LLC.

 Chris Gerow, Shelby Tworek, Gabe Ortega and Patrick Anthon represented the landlord, The Irving O. and Esther S. Kozinets Revocable Trust, in a 62-month retail lease for 1,400 SF at 1800 E. Apache Blvd., Tempe, AZ.

 Laurel Lewis represented the tenant, Crossroads, Inc., in a 39-month office lease for 6,200 SF at 1700 E. Thomas Road, Phoenix, AZ. Alexandra Loye of Avison Young represented the landlord, B&B Thomas Road Properties, LLC.

Jeff Adams represented the tenant, Solar Traffic Controls, LLC, in a 37.5-month industrial lease for 4,800 SF at 1155 W. 23^rd St., Tempe, AZ. Rod Crotty & Franklin Connell of Cutler Commercial represented the landlord, (Gary) Zimmerman Properties, LLC.

Jeff Adams represented the tenant, Schetky Northwest Sales, Inc., in a 37-month industrial lease for 4,853 SF at 407 S. 107^th Ave., Tolleson, AZ. John Cohn of CBRE represented the landlord, EJM Oxnard Commerceplex, LLC.

This is the second of a two-part blog dealing with public adjusters and insurance claims. The first blog addressed the question of who is a public adjuster. The following identifies questions and issues to raise when deciding to use a public adjuster. Readers are encouraged to present any questions about their own situation to their state department of insurance or insurance commissioner or seek advice from an attorney.

Part 2

The public adjuster represents the person seeking a claim for an insurance loss. The public adjuster is not employed by a governmental entity, nor is the public adjuster allowed to be employed by an insurance company to assist in processing claims. Please note that insurance companies will have employees or contractors that work specifically for that company to help process claims. These individuals are not public adjusters.

The Code of Conduct for public adjusters states that public adjusters shall refrain from improper solicitation.   This is not defined and each state may have its own definition of improper solicitation.  From a general consumer perspective, you may want to consider the following as part of your decision to hire a public adjuster:

• Avoid the public adjuster who contacts you first, (think ambulance chaser);
• Avoid the public adjuster reluctant to leave a copy of his/her contract for you to review or have reviewed by the representative of your choice;
• Avoid the public adjuster who is not licensed in your state (NOTE: Every state does not require a public adjuster to be licensed. Arizona does require licensing);
• Avoid the public adjuster who offers to “know someone who can do the repair work at a lower price than the market requires” or who offers to do some of the repair work;
• Avoid the public adjuster who asks that insurance proceeds be paid directly to him/her;
• Avoid the public adjuster that does not clarify to your satisfaction, how he/she is paid or if the payment terms are not clear;
• Avoid the public adjuster who gives you legal advice when the public adjuster is not a lawyer or representing you as a lawyer, for example, suggesting that you sue a neighbor or the insurance company.

The public adjuster contract should clearly identify the work or service that the public adjuster will perform. Like all contracts, do not sign it if you do not understand it.  You can take the contract to a lawyer or other representative to review with you before signing.  If you have questions, the public adjuster should be able to clearly explain what he or she will do or not do if you agree to the contract.  The industry has some important questions you may want to ask the public adjuster to help you understand the work involved and how the public adjuster will be paid.

In addition to the basic questions of whether the public adjuster is licensed to do business, additional questions may include confirming whether the public adjuster has a conflict of interest. This is especially important if the insurance claim comes from a situation that affects several property owners in your area. The public adjuster may be representing a neighbor that did or did not do something that contributed to your property loss.   For example, the neighbor may have improperly stored chemicals that added to the spread of fire or changed landscaping that contributed to flood conditions.  It would be difficult for a public adjuster representing both property owners to act in both parties’ best interest.

Finally, there are some little-known realities associated with hiring a public adjuster. In addition to any deductibles described in your insurance policy that may reduce the amount of payment from a claim, the public adjuster’s payment will usually be a percentage of the insurance proceeds paid by your insurance company. Insurance policies rarely if ever, allow for the insurance company to pay for the services of a public adjuster. Another point of clarification pertains to your ability to discuss your insurance claim directly with the insurance company’s own adjuster. Once the insurance company is notified that public adjuster represents your interests, all communications with the insurance company on processing the claim have to be between the public adjuster and the insurance company.

If you choose to terminate the relationship with the public adjuster before the claim process is completed, your contract should clearly state how this may occur. This may be a good time to consult with an attorney to better understand your rights.  You may also seek the assistance of the Arizona Department of Insurance if you believe that the public adjuster is not fulfilling the terms of the contract.

Yvonne R. Hunter is a licensed attorney and the Principal Consultant for YH Strategies, LLC, in Phoenix, Ariz. After a stint with the Arizona Department of Insurance, she learned that many consumers remain unaware of some of the issues associated with insurance products. This blog reflects her opinion and should not be regarded as legal advice. She encourages consumers interested in learning more about their own insurance experience to contact their state department of insurance or insurance commissioner or seek advice from an attorney. If you would like additional information on matters dealing with consumer insurance products, you can reach Yvonne at yrhunteraz@gmail.com.