Market upside helps JLL sell Phoenix Logistics Center

Strong market performance and continued confidence in Phoenix’s industrial market future has spurred the $18.4 million sale of Phoenix Logistics Center – sold this week by the Phoenix office of JLL on behalf of a joint venture between Overton Moore Properties and PCCP LLC, and acquired by Colony Northstar.

JLL Managing Directors Bo Mills and Mark Detmer, and Vice President Ryan Sitov represented the property sellers.

“The Phoenix Logistics portfolio represents a quality multi-tenant industrial asset that is difficult to replicate in today’s market,” said Jason Hines, vice president of Overton Moore Properties. “We are pleased with the sale and the overall execution of our value-add strategy in the Phoenix industrial market.”

“Phoenix Logistics Center is institutionally maintained, with an extremely strong credit tenancy and the potential to add value through the development of two acres of excess land,” said Mills. “It is an exceptional opportunity that brings together all of the attributes that an investor looks for when seeking a Class A industrial asset.”

Phoenix Logistics Center totals 245,890 square feet in two buildings located at 420 S. 53rd Ave. and 1002 S. 56th Ave. in Phoenix’s Southwest submarket. Both buildings have been recently refurbished with $1.75 million in capital improvements, including new roofing, HVAC, T-5 lighting, paint, landscaping and power and plumbing upgrades. The buildings sit on 13.8 acres, including two acres of excess land that can be developed, paved or used to expand the 53rd Avenue building.

Each building can accommodate single- and multi-tenant configurations, with dock-high and grade-level loading, and 24-foot to 30-foot clear heights. The portfolio is currently 91.3 percent leased to five quality tenants, including long-term anchor tenant Blue Line Foodservice Distribution, a division of Little Caesar Enterprises.

Phoenix Logistics Center is located 1.9 miles from the Loop 101 and 2.3 miles from I-10, offering direct access to all points in metro Phoenix, as well as key distribution routes to California, the Southwest and beyond.

According to JLL, industrial vacancy rates in Southwest Phoenix have declined from 20.4 percent in 2009 to 11.4 percent as of year-end 2016. Asking rental rates have increased an average of 4.5 percent every year since 2011. These factors, combined with robust population growth, employment growth and housing recover, have increased demand for available space across the local industrial market.

Orbital ATK

Orbital ATK opens Gilbert engineering facility, plans to hire 155

Virginia-based aerospace and defense firm Orbital ATK opened a 60,000-square-foot workspace in Gilbert for its engineers working on the satellites being manufactured next door.

In the next five years, Orbital ATK will be hiring 155 employees to work at the satellite engineering facility, said Rick Kettner, Orbital ATK Gilbert site director.

The engineering building opened this week and has 200 employees on site. The engineers moved from Orbital ATK’s Fiesta Boulevard offices in Gilbert. Combined, the Gilbert campus, located near McQueen and Elliot roads, currently employs 385 people.

When engineers need to work side by side with the workers at the manufacturing site, they no longer have to commute by car, and can simply walk from the newest site to the manufacturing facility.

 

Provided photos

Many aerospace firms have their operations dispersed across the nation, Kettner said, including Orbital ATK. But due to the sophistication of space work, there are some things that need to be located together, like Orbital ATK’s Gilbert-based space operations, he said.

“It really helps to have face-to-face contact where you can sit shoulder to shoulder,” Kettner said.

Orbital ATK is manufacturing three different types of satellites at its 370,00-square-foot Gilbert site, which opened over ten years ago. One of the biggest satellite programs Orbital ATK is working on is Iridium NEXT, which has Orbital ATK manufacturing 81 satellites in Gilbert at a rate of five a month.

The new offices have many open, collaborative spaces for engineers. One of the main hallways had a model of a satellite hanging from the ceiling and there are satellite diagrams splayed on the white walls of the offices.

Many of the workspaces are in cubicles, which have white boards and plenty of surfaces the engineers can write on, which is a nice touch, one engineer remarked. During a tour of the offices, engineers could be found huddled in groups within the cubicles.

Kettner said more traditional office layouts, including in the world of engineering, offices are spread out, almost discouraging collaboration. But the new Gilbert facility is doing just the opposite.

“(This space) invites collaboration, fosters collaboration. It’s really breaking through that next level of sophistication to try to get us to the next level of satellite design,” Kettner said.

The facility was completed in just 16 months. In Arizona, Orbital ATK has over 1,953 employees working in Gilbert, Chandler and Mesa. Orbital ATK has been making satellites in Gilbert since 1989.

Desert Ridge Marketplace

Desert Ridge Marketplace finishing its $15 million renovation

Desert Ridge Marketplace will complete the $15 million renovation this summer, but as the North Phoenix community is quickly discovering, the updates are much more than a makeover. The innovative design creates a modern environment that makes Desert Ridge a hip option for adults to grab a glass of wine or dinner at local restaurants, while offering upgraded, family-favorite amenities like the Splash Pad. The enhancements serve as the perfect backdrop for new community events, date nights and one-of-a-kind cultural experiences, placing Desert Ridge at the center of “Where Life Happens.” 

Unique additions to the 16-year-old Desert Ridge Marketplace since February include more than 57,000 square feet of eco-friendly turf, 75,000 square feet of luxurious dark recycled wood paneling, an update to The District Stage, new bocce ball courts, a new children’s play area, revamped fountains and portal entrances, earth-conscious EV charging stations, free Wi-Fi available throughout The District, a fresh, contemporary color palette throughout and cushy soft seating. The finishing touch will come when two massive, state-of-the-art LED screens are up-and-running in August, including a 50-by-14 foot installation at The District Stage.

The upgraded experience will expand to the Barnes & Noble courtyard, which features a renovated fountain surrounded by a vast lawn — a perfect space for adults to relax and play separate from the kids. Bocce ball courts, Adirondack chairs and a 21-by-11 foot LED screen create a laid-back atmosphere, ideal for couples to keep the fun going after a meal or craft cocktail at soon-to-debut, chef-driven concepts like Barrio Queen and MidiCi.

The transformations make for an inviting ambiance and create an entertainment oasis that continues to evolve with the North Phoenix community and grow with the original center clientele.

To appeal to adults, Desert Ridge is rolling out a calendar of diverse new events, all of which are FREE. Signature, family-friendly affairs like Summer Splash (Tuesdays through July 25) are here to stay, but fresh engaging events, coupled with a new mix of restaurants and shops, will offer the opportunity for shared nights out.

This fall, couples and friends can capture memorable moments with an interactive photography and art-based event, Art Snap, where attendees can find fine art inspiration at Desert Ridge and snap and share their shots for a chance to have their works displayed in a pop-up gallery on site. Live music fanatics can enjoy sophisticated sounds during the Jazz Concert Series over small plates and mocktails provided by newly-introduced restaurants. On any Friday or Saturday night, guests can listen to FREE live music from 7 p.m. to 10 p.m. from hot local bands, including New Philosophy, Whiskey Bent, Bonafide and Ratio, followed by cocktails or late-night bites at favorite nightlife spots like Sandbar, Majerle’s or Yard House.

And kids won’t be left out of the fun! At the end of summer, Sundae Funday will be the ultimate ice cream social. Kids and adults can indulge in their personally-crafted sweet treats as they enjoy live music, interactive activities, giveaways and more. Come fall, kids and adults alike will have the opportunity to watch classic films on the newly-installed LED screen outside of Barnes & Noble as they nibble on grab-and-go picnic dinner deals provided by new and favorite culinary destinations.

Work off those calories at Yoga in The District, where guests can stretch and strengthen during evening classes led by local instructors. Busy moms that want to get fit in between nap time and snack time can drop by FIT4MOM classes, which include Stroller Barre (Tuesdays) for moms and their stroller-bound little ones and Body Back Classes (Wednesdays), for moms looking to get back in pre-pregnancy shape. 

To learn more about how Desert Ridge Marketplace is continuing to evolve, visit www.shopdesertridge.com/next or visit the center located at 21001 N. Tatum Blvd., Phoenix.

10 Chase branches in Valley among first to launch green efforts

Current today announced the second phase of an ongoing collaboration with JPMorgan Chase & Co. to install new energy management and digital technologies that will increase the energy efficiency of roughly 4,500 Chase branches across the U.S., furthering the bank’s long-term commitment to environmental sustainability.

Current’s new AllSites energy management system will utilize sensors, software and lighting controls to help Chase branches reduce electric and gas consumption by 15 percent and water from irrigation systems by 20 percent. The bank is also working with Current to pilot an installation of solar panels at Chase California branches, with plans to introduce solar technology to thousands of other locations.

This deal represents the next step of a 2016 collaboration on the world’s largest LED lighting installation. To date, 2,500 branches have been retrofitted with LED lighting, helping to cut Chase’s lighting energy consumption by 50 percent, or the equivalent of taking nearly 27,000 cars off the road.

“As we think about the future of our branch and workplace, we’re always looking for smart strategies that make our business and buildings more sustainable,” said David Owen, Chief Administrative Officer of JPMorgan Chase. “This technology will help us run our facilities more efficiently, reduce energy consumption and improve the experience for our clients, customers and employees.”

Chase’s branches will incorporate a variety of new software applications developed by Current and its digital partner ecosystem, including apps that improve energy management and HVAC efficiency, irrigation processes and lighting & power system controls. The apps are powered by GE’s Predix* technology, the world’s first software platform for the Industrial Internet.

“Our job is to make businesses more efficient and more productive,” said Maryrose Sylvester, President & CEO of Current, powered by GE. “Companies like JPMorgan Chase are showing the immense value that can be achieved at the intersection of energy infrastructure and digital technology, and we are excited to continue partnering together to shape the future of banking.”

Current’s new AllSites* application provides enterprise-level visibility into energy and HVAC efficiency across thousands of retail branches through Chase’s Network Operations Center, hosted on the cloud. And to reduce water consumption and improve irrigation systems for outdoor plants, the Chase branches will utilize an app built by Weathermatic, one of Current’s development partners.

“Consumers in this industry, like many others, are demanding faster, easier and more comfortable banking experiences,” added Sylvester. “Today we’re installing a digital network that helps Chase improve energy usage, but the possibilities go far beyond energy—the beauty of an open software platform is tomorrow that same network could be used to develop apps for improving branch space utilization, teller productivity, appointment room scheduling or dozens of other possibilities.”

Chase’s new installation complements the bank’s ongoing commitment to sustainability, which includes efforts to manage its buildings and branches more efficiently. The bank is on target to reach its goal to reduce greenhouse gas emissions 50 percent below 2005 levels by 2020 and continues to offset 100 percent of emissions generated by employee air travel on an annual basis. In addition to the new solar pilot, the bank also promotes renewable energy by supporting projects that bring new renewable energy capacity to the grid.

Southwest Human Development

Healthy Arizona Worksites Program honors Delta Dental

Delta Dental of Arizona has established a culture of healthy living, keeping oral health, physical health and financial health as key components of its employee wellness initiatives. Now others are recognizing the state’s leading dental insurer for excellence in worksite wellness.

The Healthy Arizona Worksites Program (HAWP) presented Delta Dental of Arizona with its Gold level award on June 15 during a ceremony celebrating employers that have implemented evidence-based health initiatives to improve the well-being of their employees’, employees’ families and communities.

Delta Dental was among approximately 50 Arizona companies to meet HAWP’s gold eligibility requirements. Gold recipients not only set new goals and implemented programs, but show they have tracked and documented outcomes and behavioral changes.

“We’re a company that’s truly practicing what we preach,” said Jason Neifield, director of human resources at Delta Dental of Arizona. “Healthy worksite programs have been linked to increased productivity and higher morale, in addition to reducing costs associated to health care and absenteeism. We want our associates to like coming to work each day and to feel good—both physically and emotionally—about doing so, so we’re happy to implement programs that focus on the importance of having a healthy mouth, mind and body.”

Delta Dental of Arizona’s efforts to support employee health and wellness include:

  • Paid time off for dental appointments
  • Discounted medical premiums for tobacco-free employees
  • On-site wellness seminars covering topics like stress management, colon cancer screening and nutrition
  • Annual wellness fair with free, on-site biometric screening and flu shots
  • A dedicated and private lactation room with comfortable seating, private refrigerator and reading materials

Learn more about Delta Dental of Arizona’s healthy initiatives and job openings by visiting www.deltadentalaz.com/career.

HAWP is a public health initiative developed through a partnership between the Arizona Department of Health Services and the Maricopa County Department of Public Health. This statewide program provides Arizona employers with training, technical assistance, tools and resources to design, implement and evaluate worksite wellness initiatives. For more information, visit www.healthyazworksites.org.

CBRE completes $66.4M sale of Camelback Commons

CBRE Group, Inc. has completed the sale of Camelback Commons, a ±322,406-square-foot office campus located at 4722 and 4742 N. 24th St. in Phoenix. The two building, Class A office property commanded a sale price of $66.4 million.

Barry Gabel and Chris Marchildon with CBRE’s Phoenix office represented the seller, a joint venture between Californiabased McCarthy Cook & Co. and New Yorkbased Morgan Stanley Real Estate Investing. The buyer is Los Angeles-based Regent Properties. 

“Camelback Commons features an exceptional location in the heart of the Camelback Corridor, one of the Valley’s most prestigious office markets,” said CBRE’s Gabel. “Regent Properties is acquiring a trophy asset in a sought-after market with a strong, credible and diverse tenant roster with significant upside.”

Additionally, Bruce Francis, Dana Summers, Shaun Moothart, Bob Ybarra and Doug Birrell with CBRE Capital Market’s Debt & Structured Finance team secured the financing for the buyer.

“Due to the excellent sponsorship and asset profile, we received strong quotes from a broad group of lenders, including banks, debt funds and life insurance companies”, said CBRE’s Francis. “We were pleased to deliver the most competitive financing, which offered the best combination of rate, prepayment flexibility and proceeds to meet the sponsorship objectives.”

Constructed in 1986, Camelback Commons underwent a $4.5 million renovation in 2015. Upgrades to on-site amenities include a state-of-the-art conference center and tenant lounge, redesigned café with indoor and outdoor seating, fitness center with locker rooms and showers, bike sharing and short-term covered parking. Tenants also have access to improved open-air terraces and balconies along with “The Deck,” a contemporary outdoor gathering area that offers games and shaded, lounge-style seating. The site is surrounded by numerous walkable amenities, restaurants and retail destinations including nearby Biltmore Fashion Park. Access to State Route 51and I-10 is minutes away from the property.

CBRE has been engaged for property management services at Camelback Commons.

Polaris Pacific hired for $90M luxury condo project in Chandler

The Statesman Group announced today that West Coast-focused Polaris Pacific has been hired to lead the sales and marketing for its $90 million dollar luxury condominium community, The Cays at Downtown Ocotillo.

Located within Chandler’s sought-after Ocotillo lakefront neighborhood and along the vibrant Price Corridor, The Cays is a collection of 278 one- and two-bedroom condominium homes and penthouses with lofts, priced from the mid $200,000s. The first phase of 76 homes was completed in August of last year and is now 85 percent sold. After breaking ground in February of this year, the second phase of 70 homes is already 30 percent sold and completion is expected in early 2018. Two additional phases are planned.

“This is one of the only luxury condominium communities in Chandler and the East Valley, where homeowners can enjoy resort-style amenities and lakefront living while also having restaurants, wine bars, a coffee shop and retailers right outside their front door,” said Alana Mann, president of The Statesman Group, a family owned and operated international developer headquartered in Scottsdale. “We look forward to working with Polaris Pacific and leveraging their expertise in the multifamily sector. It’s been exciting to see the demand for this type of living in Chandler, especially thanks to the boom of the Tech Corridor and the more than 30,000 people now employed in the area.”

At the heart of The Cays is an expansive 9,500-square-foot clubhouse with a gourmet community kitchen, two-sided fireplace, a media center and social lounge, yoga studio, billiards, shuffleboard and a 1,800-square-foot fitness center with locker rooms and private steam showers. The amenities continue outside with a resort-style heated swimming pool surrounded by private cabanas, an outdoor kitchen with gas BBQs and a bar, fireplaces and lush landscaping.

A rarity in the Arizona desert, The Cays is set within the upscale Ocotillo neighborhood with 162 acres of man-made lakes, 17 miles of shoreline, walking and biking paths, spacious parks and the 27-hole championship golf course at The Ocotillo Golf Resort, named “one of the best places to play” by Golf Digest Magazine. The course was recently purchased by pro golfer Phil Mickelson.

The Cays is also located along the Price Corridor, quickly being dubbed “a version of Silicon Valley” due to its massive industry growth with major companies including Intel, Wells Fargo, General Motors, PayPal and Orbital ATK operating campuses within a three-mile radius.

Another major attraction for homeowners is that it is walkable to the quaint Downtown Ocotillo district with restaurants, wine lounges, a coffee shop, salon and professional services just steps from the community.

The Cays at Downtown Ocotillo is located at 2511 W. Queen Creek Road in Chandler, Ariz. For more information, visit TheCaysatOcotillo.com or call 480-248-3737.

McCarthy hires Guy Voss as director of business development

McCarthy Building Companies Inc. recently hired Guy Voss, P.E., as director of business development of McCarthy Water for the Southwest division. The Water team offers general contracting, construction management, program management and design/build services for water and wastewater projects throughout the United States.

In his new role, Voss will direct the group’s strategic planning and new market growth, participate in business development initiatives, as well as maintain and develop client relations.

Voss has nearly two decades of experience in the engineering and construction industry with an extensive understanding of the complex intricacies involved in large-scale water/wastewater and renewable energy projects.

Prior to this position, he served as the program manager in New York City for a $600 million private construction project on behalf of his former employer, a global leader in engineering, procurement and construction (EPC) services for energy, water and telecommunications. Voss has experience expanding market share in the water industry as well as in the telecommunication and energy industries. He also spent more than a decade supervising teams focused on the planning and management for the design, construction and operation of advanced water and wastewater conveyance and treatment facilities, and renewable energy projects around the world.

“Guy’s deep understanding of complex, integrated designs for a variety of water, wastewater, reuse and renewable energy-related projects will be an asset to our clients and project teams,” said Joe Brunsman, business unit leader of the Water team for McCarthy Building Companies’ Southwest division.“Many of the projects that Guy has led required alternative delivery contracts with multiple project partners in EPC, and he also has vast experience with globally co-located projects that were remotely led and managed. We look forward to developing new client relationships with Guy leading our business development efforts.”

Voss has an MBA in finance and management and a bachelor’s degree in civil engineering from Bradley University in Peoria, Ill. He is a member of the American Water Works Association, Water Environmental Federation, American Society of Civil Engineers and the American Public Works Association.

Suntec president will lead ABA workforce labor committee

The Arizona Builders Alliance (ABA) announced that Derek Wright, president of Suntec Concrete, has joined the association’s board of directors. In the role, he will lead the new workforce labor committee, and participate in discussions pertaining to issues and challenges that will impact Arizona’s construction industry.

“In the last decade, Derek’s firm has been responsible for helping to complete major Arizona projects, and with the labor shortages that the industry is facing, he and Suntec have been very active in recruiting outreach to high school students,” said Mark Minter, executive director of the ABA. “We hope to encourage other companies to practice similar efforts.”

“I’m looking forward to collaborating with leaders in construction, and am thankful for the opportunity to give back to the industry,” said Wright, who graduated from the association’s Senior Executive Program (SEP) last year. “The ABA’s goal is to advocate for and improve the construction industry, which is also where my personal ambitions lie.”  

Wright brings much experience to the board and to the association’s mission of educating and developing future leaders in construction. One example includes his leading continued education programs at Suntec to help employees achieve career advancement goals and practice the highest safety standards. In addition, he has climbed through the ranks of the industry throughout his career, allowing him to be an excellent resource to members of the construction community at any phase of their profession.

The ABA board of directors in made up of 20 association members and multiple life directors. Together, they provide oversight and leadership of the association and champion key initiatives in the association’s strategic plan. For more information about the ABA, visit www.azbuilders.org.

Seed Spot relocates to Downtown Phoenix Warehouse District

After nearly four years at their midtown location, Seed Spot, an incubator for entrepreneurs with ideas for social change, has officially relocated to the Phoenix Warehouse District in a newly renovated commercial suite in the historic R&R Partners warehouse at 502 South 2nd Street, just south of Talking Stick Arena.

The five-year lease of the 4,500-square-foot space will feature an open office layout, conference rooms and a large classroom that will help the nonprofit better serve the start-ups they incubate through enhanced collaboration. “SEED SPOT’s whole model is built around community; we are so excited to bring the support of this community to more entrepreneurs at our new space through both our youth and adult programs,” said Courtney Klein, Seed Spot CEO & co-founder.

“The historical integrity that comes out in our new space – wood rafters, high ceilings, a downstairs with an atrium in the center – is a rare find in Phoenix and further enhances the way SEED SPOT engages the Phoenix community,” said John Johnson, Seed Spot’s community development manager, who earned his master’s in architecture.

With more than close proximity to R&R Partners, Galvanize, CCBG Architects, Gould Evans, and Moses Inc., Seed Spot is positioned at the center of innovation. “It’s a thriving environment that allows us to bring our community of social entrepreneurs into the center of the fastest growing district in the valley,” said Johnson.

The renovation of the open, airy and bright space included updating lighting fixtures, adding a kitchen area, conference rooms and restrooms. CCBG Architects conducted the rehabilitation of the building with general contractor, Robert E. Porter Construction.

The first program to be held out of the new location will be an entrepreneurial boot camp targeting the African American community that will take place July 31 to August 4. For more information, visit www.seedspot.org.

California-based buyer acquires Thunderbird Village for $12.5M

Brokers from LevRose Commercial Real Estate closed the sale of Thunderbird Village in Peoria for $12.5 million.

Located at 7518 W. Thunderbird Road, the 82,099 square-foot building includes a 90 percent leased retail center.

California-based company, Deerwood Retail Opportunities AZ, LLC, purchased the property from CAZCO Asset Management Inc. The brokers for the buyer were Trent McCullough, Mark Cassell and Greg Vanlerberghe of LevRose Commercial Real Estate and the brokers for the seller were Ryan Schubert and Michael Hackett of Cushman Wakefield.

“Trent, Mark and Greg found their client an outstanding property to purchase,” said Jon Rosenberg, managing partner and co-founder of LevRose. “It’s not always easy to find a property with the quality of tenants and occupancy that this investment currently has in place.”

Locally owned and serving the Valley since 1992, LevRose is affiliated with TCN Worldwide, a consortium of independent commercial real estate firms providing complete real estate solutions locally, nationally and internationally.

Hilton Tucson El Conquistador Resort offers Fourth of July fun

This Fourth of July, celebrate America’s independence at Hilton Tucson El Conquistador Resort in Tucson, Ariz., with a festive lineup of activities for the whole family, spectacular fireworks viewpoints and room rates starting at $129 per night.

Nestled at the base of the Santa Catalina Mountains, El Conquistador Resort is just three miles away from the Oro Valley fireworks show at Naranja Park. El Conquistador Resort will be the premier destination to watch the sky light up with a cocktail in-hand from the resort’s front lawn and Sunset Point grass terrace. Guests can take a complimentary shuttle service to and from the fireworks display at Naranja Park on July 4 from 4:30 p.m. through 10:30 p.m. departing every 30 minutes. (Guest wristbands will be needed to gain access to shuttle; no alcohol is permitted at the park).

All weekend long and into the holiday week, El Conquistador Resort will be gearing up for the big celebration with room rates starting at $129 per night, which includes a robust lineup of “Uniquely Southwest” activities for all ages, many of which are free. Resort guests can be in-the-know throughout their stay by downloading the brand-new El Conquistador Resort app, which features dining information, exclusive promotions and the entire line-up of daily activities.

Fourth Of July festivities will be offered from Friday, June 30, through Tuesday, July 4, and feature:

  • Salsa-making demonstrations using ingredients from the on-site salsa garden (Friday)
  • Wine tasting in Colibri Lounge (Friday)
  • Poolside dive-in movies with screenings of Sing, Trolls and Zootopia (Friday – Monday)
  • Poolside s’mores (Friday – Tuesday)
  • Live evening entertainment from a Native American flute player (Friday – Saturday)
  • Poolside DJ (Saturday – Tuesday)
  • Sungazing and Stargazing with special telescopes (Saturday)
  • Cookie baking with the Chef (Saturday)
  • Poolside taco bar (Saturday and Sunday)
  • Painting workshops for families taught by the resort’s July resident artist, Bonnie Pisick (Saturday and Sunday)
  • Live music in Colibri Lounge (Saturday)
  • Petting Zoo (Sunday)
  • Kids Carnival with face painting, carnival games and food items (Monday)
  • Daily fitness classes including pool yoga, Zumba, Pilates, water fitness and family hikes (Friday – Tuesday)

Hilton Tucson El Conquistador will also be offering a Star-Spangled Dinner Buffet at Sundance Cafe on July 4 from 6:00 to 8:30 p.m. The buffet will highlight festive favorites from a variety of garden fresh salads and hearty sides to herb-roasted chicken, hamburgers, Sonoran hot dogs and baby back pork ribs. For dessert, there will be an array of holiday desserts including strawberry shortcake, apple pie and cupcakes. The all-inclusive price for the buffet is $39 for adults, $19.50 for children 6-12 and free for children five and under. The buffet is open to resort guests and the general public. Reservations may be made by calling 520-561-4641. Also, Epazote Kitchen & Cocktails will be open during usual business hours from 5:00 – 9:00 p.m., and reservations may be made via Open Table or by calling 520-544-1708.  

In between all the fun, guests can relax in a newly refreshed guestroom or cool down at the Desert Springs Oasis, which features sparking pools, a relaxing waterfall-fed cold plunge, a 143-foot water slide and a separate fish-shaped children’s pool with interactive water features. For guests seeking a little extra rest and relaxation, Elements Wellness Center at the resort is also offering a number of spa and wellness specials throughout the summer.

The resort’s on-site El Con Kids Club will also be giving parents the chance to get some alone time with full-day, half-day and hourly children’s programming, Friday through Monday for ages 4-12. Kids Club-goers will get the chance to experience the spirit of the Old West with fun activities lead by the resort’s recreation team members. There will be new themes and activities each day ranging from culturally themed arts and crafts, to scavenger hunts around the resort property, movie nights, games and more. Prices start at $45 for half-day sessions and $75 for full-day sessions and include a kid-friendly meal.

Resort rates starting at $129 per night are available for stays June 30 – July 4, 2017. For reservations, book online at hiltonelconquistador.com or call (520)544-5000, no rate code required.

Arizona Multi-housing Association

Arizona Multi-housing Association CEO leaves for Washington, D.C. job

Tom Simplot, will step down from his position as president and CEO for the Arizona Multihousing Association this Friday.

After a nine-year tenure as the head of AMA, the longtime Phoenix resident will follow a new job opportunity in Washington D.C. working for a federal agency.

Courtney Gilstrap LeVinus, owner and co-founder of Capitol Consulting, will take over as interim president and CEO and assume all responsibilities until a new replacement is selected.

For nearly 20 years, LeVinus has worked with the AMA leading their advocacy team at the federal, state and local levels. During that time, she worked to protect the interests of ethical rental housing providers in legislative, regulatory and legal matters throughout Arizona to enhance the rental housing industry with quality and affordable housing opportunities without undue government regulations.

Simplot said, “Courtney is uniquely qualified to lead AMA and the industry in this transition period and during this time of explosive growth for the market.”

AMA’s Board of Directors is meeting this week to finalize a search firm for finding Simplot’s replacement.

“Courtney has been instrumental in the expansion and success of the Association for nearly two decades. Thanks to her efforts, we have been able to curtail unnecessary regulation and educate leaders around the state about the benefits and economic impact of the multifamily industry,” said Amy Smith Montoya, managing partner of Bella Investment Group and chair of AMA’s Board of Directors.

Smith noted Simplot’s exceptional contributions to the Association as well, “Under Tom’s leadership, the Arizona Multihousing Association has become stronger than ever. Our membership has grown in number, we are financially stable, and our industry’s level of impact on the state-wide community through supporting programs such as Raising a Reader, New Horizons and UMOM is something we never dreamed we could do.”

LeVinus, born and raised in Arizona, has a degree in Business Administration with a major in Finance and a minor in Speech Communication from Texas Christian University. “I’m thrilled to accept this appointment and have the opportunity to serve an incredibly talented and committed Board of Directors. My career has focused on housing and the apartment industry, and this is an opportunity to further our efforts as the market grows,” said LeVinus.

Tempe industrial park sold for $19.1M

Cushman & Wakefield completed the sale of Kachina Industrial Park, located at 1805-1850 W. Drake Drive in Tempe on behalf of Northern California-based Kieckhefer Properties. Libitzky Holdings LP of Emeryville, Calif. purchased the property for $19.1 million.

Bob Buckley, Tracy Cartledge, Steve Lindley and Ben Geelan of Cushman & Wakefield represented the seller.

Kachina Industrial Park is an eight-building, 202,941-square-foot general industrial property. The modern, high-image, multi-tenant complex is a well built, low- to mid-buildout general industrial property with flexible loading and suite configurations to accommodate a variety of tenants.

With a current occupancy of 98.7 percent, to high-credit tenants, Kachina Industrial Park is well located within the Tempe submarket, one of the strongest and most dynamic industrial areas in Metro Phoenix.

“The acquisition supports strong intrinsic value and stable income with the potential to boost performance by implementing a proactive rollover program focused on upgrading lease rates to market in one of the strongest markets in Metro Phoenix,” said Buckley.

312SF Parc Pinnacle Industrial Project breaks ground

Dallas-based Jackson-Shaw has partnered with Las Vegas-based LaPour Partners Inc. to break ground on Parc Pinnacle, a 311,840-square-foot, three-building speculative industrial project in Deer Valley, Arizona. The Phoenix office of JLL was granted the leasing assignment for the new development.

“We have had a successful history developing quality industrial products in Deer Valley over the past 17 years and are looking forward to addressing the modern needs of new and growing business in the area,” said Jeff LaPour, President of LaPour.

At build out, the A-1 zoned Parc Pinnacle will total more than 311,000 square feet, broken down into a 70,400-square-foot Building 1, 155,040-square-foot building 2 and 86,400-square-foot Building 3. Each building will feature modern, flexible industrial space designed for manufacturing, distribution, assembly and related industrial uses. This includes up to 32-foot clear height ceilings, dock-high and grade-level loading, ESFR sprinkler system, 180-foot truck court depth and tenant identity that is visible from Pinnacle Peak Road.

JLL Executive Vice Presidents Pat Harlan and Steve Sayre, and Vice President Kyle Westfall have been named as the project’s exclusive leasing brokers.

“This is a substantial project that will meet a very steady demand for Class-A, institutional-quality space in North Phoenix,” said Pat Harlan, JLL executive vice president. “Tenants will appreciate the highly functional buildings and a prime distribution location that’s only minutes from multiple major freeways, the interstate and two airports.”

Parc Pinnacle, which is slated for completion in early 2018, is situated on 20 acres at the northwest corner of Pinnacle Peak Road and Central Avenue – in the heart of the Deer Valley submarket and close to Loop 101, Interstate 17 and State Route 51. It is also one mile from Phoenix Deer Valley Airport, within 20 minutes of Sky Harbor International Airport and surrounded by more than 1.7 million square feet of retail and restaurant amenities.

Parc Pinnacle is Jackson-Shaw and LaPour’s newest addition to a longstanding successful history in this sub-market. Over the past 15 years, the two companies have developed approximately 914,058 square feet in seven buildings, and have bought, sold and developed nine parcels of vacant land consisting of more than 300 acres in Deer Valley. Additional developments include the 177,700-square-foot, three building Parc 17 industrial project, located in the Sky Harbor Airport submarket. To date, Jackson-Shaw has completed more than 500,000-square-feet in the Phoenix area.

LaPour also completed Pinnacle Park Business Center I and II, which together totals seven buildings and 283,544 square feet of industrial space in the Deer Valley submarket, and is developing the Camelback Collective, a mixed-use project on Camelback Road between 28th and 29th streets that, upon completion, will include 120,000 square feet of modern, Class-A office space, a 160-room AC by Marriot hotel and surface and subterranean parking.

Sam Fox’s Flower Child wins ‘Hot Concept Award’

Flower Child, the healthy, happy, fast-casual restaurant by renowned restaurateur Sam Fox, has won a coveted “Hot Concept Award” from Nation’s Restaurant News. The prestigious award honors forward-thinking brands at the leading edge of food service. This is the third time Fox has been honored with a Hot Concept nod, a distinction not usually received by one restaurateur multiple times.

With almost 60 restaurants and 16 different concepts across the nation, Sam Fox is considered one of the most intuitive minds in the restaurant industry. Credited as the man who popularized health and wellness dining, he is the visionary behind 2011 Hot Concept Award winner True Food Kitchen, which he developed with natural living pioneer, Dr. Andrew Weil. Fox’s original fast-casual concept, Sauce Pizza & Wine, also received the Hot Concept Award in 2005 and has since been sold to restaurateur Scott Kilpatrick, one of the founders of RA Sushi.  Fox, a James Beard Foundation Restaurateur of the Year nominee, was also named one of the 50 most influential people in the restaurant industry by Nation’s Restaurant News earlier this year.

Inspired by the fundamental desire to deliver healthy food for a happy world, Flower Child offers conveniently nutritious food in a bright and energetic environment. The Flower Child menu is masterfully designed to offer a healthy and balanced dining experience with a selection of organic, gluten-free, vegetarian and vegan items for breakfast, lunch, and dinner. Each of the seven Flower Child locations is a tribute to the community it serves with regional ingredients highlighting the menu and local beer and wine. The eighth Flower Child is scheduled to open this winter in downtown Austin, Texas. Other locations include Los Angeles, Phoenix, San Diego, Dallas, Scottsdale and an existing Austin site. 

“Flower Child resonates with wellness-conscious guests who care about the food they eat, how it tastes, and that it’s served with a smile.” said Sam Fox, Fox Restaurant Concepts Founder. “This concept has national appeal, and we will continue to perfect our menu and service as we grow quickly and thoughtfully in key markets. ”

ABOUT FLOWER CHILD

Flower Child is the healthy, happy, fast-casual restaurant from Sam Fox’s Fox Restaurant Concepts. Inspired by its fundamental mission to deliver healthy food for a happy world, the restaurant offers conveniently nutritious food in a bright and energetic environment. Flower Child blooms on every level – inspired flavors, rich nutrients, and quick preparation. It’s a concept that revolutionizes the way we eat. In particular, the way we eat out. For more information, please visit www.iamaflowerchild.com or follow @eatflowerchild.

nonresidential construction

Nearly 200,000 construction jobs added since May 2016

In May, not seasonally adjusted (NSA) construction unemployment rates were down in 24 states on a year-over-year basis, according to analysis released today by Associated Builders and Contractors (ABC). At the same time, the construction industry added 192,000 more construction jobs than in May 2016, according to data from the U.S. Bureau of Labor Statistics (BLS), and the national NSA construction unemployment rate was 5.3 percent, up 0.1 percent from a year ago.

Because these industry-specific rates are not seasonally adjusted, national and state-level unemployment rates are best evaluated on a year-over-year basis.

“Despite the year-over-year increase, this was the third lowest national not seasonally adjusted May construction unemployment rate on record and the second lowest rate since May 2000,” said Bernard M. Markstein, Ph.D., president and chief economist of Markstein Advisors, who conducted the analysis for ABC. “Also, as in April, all the states except two, Alaska and New Mexico, had estimated construction unemployment rates below 10 percent.”

Since the beginning of the data series in January 2000, the monthly movement in the national NSA construction unemployment rate from April to May has been a decrease every year, except one—2009. This trend continued in 2017 with a one percent rate drop in the NSA rate from April. Among the states, 39 had declines in their May estimated rate from April, and two (Arkansas and Rhode Island) saw no change.

The Top Five States

The states with the lowest estimated NSA construction unemployment rates in order from lowest rate to highest were: 

  1. Vermont, 1.5 percent
  2. Iowa, 2.2 percent
  3. Idaho, 2.3 percent
  4. Colorado, 2.4 percent
  5. Indiana and North Dakota (tied), 2.5 percent

Four states—Colorado, Idaho, Indiana and Iowa—were also among the top five in April. Vermont, with a 1.5 percent estimated NSA construction unemployment rate, had the lowest rate among the states.

Colorado, with a 2.4 percent rate, had the fourth lowest rate in May, the state’s second lowest estimated May rate on record. Indiana rate was 2.5 percent, the lowest May rate on record and the third largest year-over-year decline among the states, down 2.1 percent. North Dakota’s 2.5 percent rate was lowest May rate on record.

New Hampshire, which had tied with Idaho and Indiana for lowest rate in April based on revised data, dropped to 15th lowest in May, with a 3.8 percent estimated construction unemployment rate. Despite New Hampshire having the country’s largest monthly increase, up 1.2 percent, it was the state’s second lowest May rate since 2004 (3.1 percent), behind last year’s 3.4 percent.

The Bottom Five States

The states with the highest NSA construction unemployment rates in order from lowest to highest rates were: 

  1. Missouri, 7.9 percent
  2. Mississippi, 8.4 percent
  3. Pennsylvania, 9.3 percent
  4. Alaska, 10.5 percent
  5. New Mexico, 10.7 percent

Three of these states—Alaska, New Mexico and Pennsylvania—were also among the five states with the highest construction unemployment rates in April. New Mexico had the highest estimated NSA construction unemployment rate in May, 10.7 percent, down from the second highest ranking in April.

Alaska ended its eight-month streak as the state with the highest construction unemployment rate, moving up to the second highest rate in May, 10.5 percent. A high unemployment rate for the state at this time of year is to be expected since these are not seasonally adjusted construction unemployment rates. Interestingly, the state posted the largest year-over-year increase (up 3.5 percent) in May while also posting the largest monthly rate drop in the country (down 5.8 percent).

Pennsylvania had the second largest year-over-year rate increase and the fourth largest monthly rate increase among the states. Mississippi had the sixth largest year-over-year increase in the country, up 1.2 percent, and the fifth largest monthly increase, up 0.7 percent. Missouri’s 1.5 percent year-over-year increase was the third largest in the country. Nonetheless, it was Missouri’s second lowest May construction unemployment rate since 2006 (6.1 percent), behind last year’s 6.4 percent rate.

Louisiana, which had the third highest rate in April, improved to 11th highest in May, along with Nevada and Ohio, with a 6.3 percent rate. It was Louisiana’s lowest May construction unemployment rate since 2006 (4.3 percent). Illinois, which had the fourth highest rate in April, improved to 17th highest in May, tied with Alabama, with a 5.9 percent rate. It was the state’s lowest May construction unemployment rate since 2000 (5.7 percent).

Carlos Sugich will chair Waste Management Phoenix Open

The Thunderbirds, hosts of the Waste Management Phoenix Open Presented by The Ak-Chin Indian Community, have named Carlos A. Sugich Tournament Chairman for the 2018 edition of “The People’s Open”, which will be played January 29 – February 4, 2018, at TPC Scottsdale.  Additionally, The Thunderbirds announced that Chance Cozby has been named Assistant Tournament Chairman for the 2018 tournament.

Sugich will lead the Thunderbirds in the planning and execution of every facet of the 2018 tournament, including meeting with current and potential sponsors, recruiting PGA TOUR players to the event and developing new on-course venues.

“Each year we look to build upon the tremendous success of our tournament set by our predecessors,” Sugich said. “We have some great new things in the works for the 2018 event and we are excited to put these plans into action.” 

A partner with the law firm of Snell and Wilmer, Sugich is a member of the firm’s real estate and commercial finance practice group and chairs the firm’s Cross-Border Business Practice. Sugich is admitted to practice law in both the United States and Mexico. He holds an LL.M. in International Legal Studies from New York University School of Law and earned his J.D. equivalent with honors from the Universidad Autonoma de Guadalajara School of Law. Sugich has been selected by his peers to The Best Lawyers in America® for Real Estate Law every year since 2013 and was named a “Leader in the Field” in Real Estate by Chambers Latin America®.  Sugich has been a Thunderbird since 2013 and lives in Phoenix with his wife Aida and their three children.  

Cozby was named the 2018 Assistant Tournament Chairman and will assist Sugich with all tournament-related operations. Cozby has been on the staff at PING since 1999, and is currently the Vice President of Sports Development, where he is responsible for player development, contract negotiations and management of the PING worldwide Tour team.  He also is heavily involved in other aspects of the PING business as a member of the leadership team.  He received a B.B.A. degree from the University of Oklahoma in 1999, where he earned all-conference honors for three years as a member of the Sooners golf team.  A Thunderbird since 2010, Cozby lives in Phoenix with his wife Erica and their two children.

The 2018 Waste Management Phoenix Open Presented by the Ak-Chin Indian Community will be held at TPC Scottsdale January 29 – February 4, 2018. “The People’s Open” is the best-attended golf tournament in the world and has gained legendary status for being the most unique stop on the PGA TOUR.  The 2017 tournament broke four attendance records, including a PGA TOUR record 655,434 fans for the week.  The 2018 edition will mark the 83rd playing of the event (one of the five oldest events on the PGA TOUR) and the ninth as the Waste Management Phoenix Open.

The Thunderbirds were founded in 1937 with the mission of promoting the Valley of the Sun through sports. The Thunderbirds consist of 55 “active” members and more than 250 “life” members.  In 2016 The Thunderbirds raised a record $9.3 million for charity and have eclipsed $111 million in charitable giving since its inception in 1932.  For more information on The Thunderbirds or the 2018 Waste Management Phoenix Open, visit www.wmphoenixopen.com.

Celebrate Social Media Day in Phoenix Warehouse District on Friday

Social Media Day, created by Mashable.com eight years ago and celebrated on June 30 annually, is honored for the seventh year in downtown Phoenix.

The event is split into an all-day and evening event starting at the Galvanize Phoenix offices in the Phoenix Warehouse District and Chase Field.

During the day at Galvanize, the focus will be on education on social media best methods and practices from local industry leaders. The event moves to the ballpark for an afternoon of networking and an exclusive panel featuring social media leaders from local Arizona sports franchises, including the Diamondbacks, Coyotes, Suns and Cardinals. The evening is capped off with tickets to that evening’s game versus the Colorado Rockies, with an on-field VIP experience available for a limited number of attendees.

“The main goal of this year’s event is to reach and educate local business owners who want to learn the effective social media and digital marketing tactics and methods” said Vincent Orleck, president of Social Media Club Phoenix, “There are so many opportunities now with all of the available channels and platforms to make them work for your business, it’s just a matter of figuring out what’s worth your time.”

The day will consist primarily of a keynote, breakout sessions, networking and panel discussions all featuring nationally recognized, locally-based industry leaders including:

  • “Funderdome” TV show business mentor and GoDaddy Sr. Communications Director/EIC, Shawn Pfunder
  • Social media/marketing managers for the 4 local major pro sports franchises (Suns, Coyotes, Diamondbacks, Cardinals)
  • Tim Holladay, CEO/Co-Founder of Crowd Mics
  • Martin Jones, Sr Manager, Social Media/Content/Digital Marketing for Cox Communications

Part 1 of the event at Galvanize Phoenix is free. Part 2 at Chase Field requires a ticket purchase of either $20 or $49, with the latter containing an exclusive on-field VIP experience during batting practice and the national anthem.

CBO report on American health care act

CBO: Senate bill cuts deficit deeply, also cuts 22 million from healthcare

The Congressional Budget Office said Monday that Senate Republicans’ plan to replace Obamacare would reduce the federal budget deficit faster than a House-passed health care bill, but would cost 22 million people their health coverage.

That estimate, only slightly less than the House 23 million that the CBO said would be affected by the House bill, was quickly seized on by opponents of the GOP plan.

“This bill would be nothing short of a disaster for Arizona,” said DJ Quinlan, a spokesman for the Arizona Alliance for Healthcare Security, who said it would cost more than 400,000 Arizonans lose their coverage.

Over half of those would be uninsured within the first year, primarily due to the Senate bill’s call to eliminate the insurance coverage mandate that was part of the Affordable Care Act, better known as Obamacare, according to the CBO report.

The CBO “score” also said that the Senate bill would reduce the federal deficit by $321 billion by 2026, compared to a reduction of $119 billion for the House version.

The White House quickly criticized the report, questioning the CBO’s accuracy in previous estimates on the impact of health care legislation. The administration noted that in 2013 the CBO estimated that 24 million people would have coverage under Obamacare within three years, but fewer than 11 million actually wound up with coverage in that time frame.

“This history of inaccuracy, as demonstrated by its flawed report on coverage, premiums, and predicted deficit arising out of Obamacare, reminds us that its analysis must not be trusted blindly,” the White House statement said of the CBO.

But Sen. Jeff Flake, R-Arizona, said he plans to “thoroughly review” the CBO analysis as part of his review of the bill.

Neither Flake nor fellow Republican Arizona Sen. John McCain, have said how they will vote on the bill, which Senate leaders have said they hope to have a vote on by the end of this week. The measure will fail if a handful of Republican senators oppose, as the minority Democrats are all expected to vote against it.

McCain said the CBO report is “obviously not good news” for the bill, which he said should not be rushed.

“It should be going through debate, it should be going through normal legislative process,” McCain said in a CBS report Monday.

McCain said last week when a draft version of the bill was released that he planned to study the bill and talk with Arizona voters and Gov. Doug Ducey before making up his mind.

Ducey’s office has not returned calls seeking comment on the plan, but a report last week by the Arizona Health Care Cost Containment System, the state’s Medicaid office, estimated that the Senate bill could cost the state as much as $7.1 billion through fiscal 2026.

Critics of Obamacare, including McCain and Flake, have argued that something needs to be done. They point to last year’s 116 percent increase in premiums in Arizona, the highest in the nation, as proof that the Affordable Care Act is not working.

The CBO said the GOP plan would lead to a slight rise in premiums next year, but by 2020 would lead to a reduction in premiums of about 30 percent for benchmark plans for single individuals. It would also sharply reduce Medicaid spending, shifting some of these costs to states.

But health care providers in Arizona said the Senate plan was no better than the House plan, which they also opposed, and that the CBO report affirmed their suspicions.

“The Senate health care proposal will result in 22 million people losing health coverage, while leading to markedly higher premium costs for older Americans. The Arizona Hospital and Healthcare Association cannot support this legislation unless significant changes are made to protect Arizona’s patients, people and communities,” association President and CEO Greg Vigdor said in a statement Monday.

By Brianna Stearns, Cronkite News

Verde Dimora Apartments in Mesa sell for $22.25M

The Verde Dimora Apartments at 2217 N. Power Rd. in Mesa have been sold to a Canadian investor for $22,250,000. The buyer is expanding its portfolio of Arizona properties and plans long-term ownership of the community.

Western Wealth Capital (WWC), LLC of Arizona purchased the property from Verde Dimora, LLC, an Arizona limited liability company. Trevor Koskovich, Bill Hahn and Jeff Sherman of Colliers International in Greater Phoenix negotiated the sale transaction.

The deal marks WCC’s sixth multifamily acquisition in 2017. Its portfolio now consists of 31 multifamily properties representing 5,125 units with a combined purchase-value of more than $375 million, which makes it the second largest multifamily owner in the Phoenix area by number of units.

“This is a very unique asset in both its location and its design,” says Trevor Koskovich, executive vice president with Colliers International in Greater Phoenix. “Verde Dimora is an A+ property of nearly new construction in the growing suburb of East Mesa. The property offers an incredible abundance of amenities, as well as Eco-Friendly utilities and design.”

Verde Dimora was built in 2016 and consists of 12 three-story buildings. The community contains 153 apartment units in one and two-bedroom configurations. The units range in size from 657 to 943 square feet. The property offers a total of 121,399 rentable square feet on a parcel that is 5.34 acres. The community offers both covered carport and uncovered parking spaces.

Apartments feature Energy Star appliances, Low-E Pane windows, private patios and sub-metered water/sewer/trash. The sub-metering allows managers and occupants to track individual tenant usage in real time, lowering costs and increasing efficiency.

The community offers unparalleled amenities that go well beyond a clubhouse and heated resort-style pool and spa. In addition, Verde Dimora offers community garden plots, a dog park with wash station, electric vehicle charging stations, enclosed bike storage, theater room, urban trails and a dedicated Veteran’s Community Room. The community also features solar panel technology, meditation gardens with a stream, community-wide recycling program and an extensive fitness center.

Situated to the north of McKellips Road, Verde Dimora is close to a variety of retail centers, service centers and restaurants. Access to the Red Mountain Freeway (202) is available via McKellips Road and Power Road to the north. Both access points are less than one mile from the property. The community is directly across the street from Mesa Community College – Red Mountain Campus. In addition to retail and school offerings nearby, the City of Mesa has created a strong park and recreational system nearby in Spook Hill Park and Red Mountain Park, less than one mile from Verde Dimora.

Phoenix medical office market

Phoenix medical office market looks healthy, despite political turmoil

Political uncertainty and the proposed replacement of the Affordable Care Act have many in the healthcare industry wondering what’s next.

Despite the current quandary, Metro Phoenix’s medical office market is expected to remain healthy for the foreseeable future following a strong 2016 that produced re-assuring sales and leasing numbers.

Sharing their analysis and outlook of last year’s numbers, Trisha Talbot and Kathleen Morgan, both managing directors at Newmark Knight Frank in Phoenix, are the exclusive agents for almost 1.5 million square feet of medical office properties in Phoenix.

On the leasing side, Morgan says, “Medical office building (MOB) product in Phoenix continues to be healthy with the vacancy dropping over 200 basis points from the first quarter 2016 through the end of 2016.”

Sales for MOBs also remained strong throughout last year with the closing of 43 transactions, totaling 858,660 square feet at an average price of $155.64-per-square-foot.

Talbot notes, “Although the volume of sales decreased slightly in 2016 from the first quarter to the end of the year, the price per square foot for MOBs steadily rose and the capitalization rates compressed.”

Morgan adds, “From an investment standpoint, healthcare product is often considered ‘recession proof,’ and I expect healthcare product sales to remain strong in 2017.”

In addition to sales and leasing, the healthcare duo also notes an uptick in new medical office development, which is the byproduct of hospital growth and need to support an increasing patient base.

Following the implementation of the ACA, hospitals began purchasing practices, explains Morgan, “And much of the existing space has either been absorbed or is no longer functional for multidisciplinary practices, which require larger floorplates than are available in legacy healthcare product.”

Since MOB activity follows hospitals, which follows population growth, some submarkets in the Valley are hotter than others like the Town of Gilbert, one of the fastest growing suburbs in Metro Phoenix.

Talbot notes, “The Dignity Health Mercy Gilbert Medical Campus has spurred the development of medical office product surrounding it, including Spectrum Medical Commons, a 44,000-square-foot MOB expected to be delivered in Q4 2017.”

The strongest activity of new product underway and active pre-leasing for new medical office developments, she says, is west of the Interstate 10 corridor in Phoenix, Avondale and Goodyear, and extends north on the Loop 101 to Glendale and Peoria.

That includes 200,000 square feet of MOB space currently under construction at the Westgate Healthcare Campus in Glendale.

Talbot and Morgan are actively representing the campus to attract national companies and local providers to the state-of-the-art outpatient healthcare campus that’s strategically located next to Dignity Health St. Joseph’s Westgate Medical Center and near other surrounding hospitals operated by Abrazo Community Health Network and Banner Health.

This reflects the current demand of MOB users seeking to occupy space that’s strategically located near a major hospital or medical campus.

Looking ahead, Talbot says, “The need for multidisciplinary practices won’t change, and increasing population growth — as well as a growing patient base — ensures a healthy healthcare market for the foreseeable future.”

Pima Center

Developers break ground on The Block, largest Scottsdale retail center in five years

The Block

Aerial rendering of The Block (Provided rendering)

MainSpring Capital, developer of the 232-acre mixed-use Pima Center along with Forum Capital, broke ground on its 22-acre retail mixed-use center called The Block.

“We are excited to be underway on this dynamic project,” says Curtis Brown, principal with MainSpring Capital Group. “This is the largest retail mixed-use center built in Scottsdale since The Quarter. The enthusiasm from tenants has been remarkable and our space is already 50 percent committed. With limited retail space still available, our team is confident the remainder of the project will quickly lease-up.”

The Block at Pima Center will contain upwards of 70,000 square feet of free-standing pad and retail shop space. The property contains of four freestanding pad sites for stand-alone users of which three are spoken for, 35,000 square feet of shop space which is designed for fast casual lunch and dinner users, 60,000 square feet of class A office and a sizable parcel for hospitality.

A Freeway monument sign will be erected along Loop 101 will provide visibility for The Block’s tenants. Infrastructure construction is fully underway on the project and grading of the full site is expected to begin before the end of June.

“Prospective tenants are drawn to the double benefit of freeway access/visibility and an impressive, day-time and night-time customer base,” says Stan Sanchez, senior vice president of Colliers International in Greater Phoenix. Sanchez, JK Jackson and Larry Miller with Colliers serve as leasing team for the retail center. “Pima Center businesses currently employ more than 3,800 within the mixed-use park, and that number is expected to double as Pima Center grows. This trade area is underserved because in addition to the on-site captive audience we have an additional 50,000 employees within 3 miles and over 200,000 employees with 5 miles. If you add up all the entertainment visits between Talking Stick Fields, The Aquarium, The Butterfly Wonderland, I Fly, Talking Stick Resort and Top Golf we have over 5 million annual entertainment visits with nowhere to eat. These folks and visitors to the area create an impressive foundation of patrons for these retailers. With over 180,000 cars a day traveling along the 101 freeway this intersection has some of the highest traffic counts in the area.”

Located at Loop 101 between the Via de Ventura and 90th Street and Pima Road exits, Pima Center is North Scottsdale’s largest mixed-use business park with 1.4 million square feet already developed, according to the center’s brokers. The Block at Pima Center will occupy approximately 22 acres of the park located on the North-West Corner of 101 and Via De Ventura next to the freeway.

“We are still targeting a few categories specifically an iconic locally owned restaurant or brewery who can utilize the main patio dining opportunities on the Hard Corner. These end caps will have unmatched visibility and access and tenants will be able to utilize some of the best outdoor patios spaces in town. Imagine the traffic on game days,” says Curtis Brown.

Basic design of the retail center was provided by Butler Design of Phoenix. Infrastructure construction is being provided by MainSpring Contracting and project manager is SW Land Services. EPS Group Inc. has provided civil engineering services.

Ranking Arizona: Top 10 Mexican restaurants

Here are the Top 10 Mexican food restaurants in Arizona, based on public voting for Ranking Arizona, the state’s biggest and most comprehensive business opinion poll. Ranking Arizona is based purely on opinion and ranks companies based how voters answer this simple question: with whom would you recommend doing business? To make your vote count in the 2018 edition of Ranking Arizona, click here to vote.

Here are the Top 10 Mexican food restaurants in Arizona, as featured in the 2017 edition of Ranking Arizona:

  1. La Hacienda at the Fairmont Scottsdale Princess

    La Hacienda by Richard Sandoval at the Fairmont Scottsdale Princess is where Mexican cuisine takes on a whole new meaning as Executive Chef Forest Hamrick delivers Sandoval’s signature style of vibrant flavors and ingredients, combining the bold taste of classic Mexican food with timeless European cooking techniques in a lighter, healthier way. Popular choices include varieties of guacamole, ceviche, lobster tacos, filet de parilla, churros, flaming coffees and 240 selections of tequila presented by a certified tequila expert. The atmosphere is as inviting as the food, with rustic architecture warmed by beehive fireplaces and outdoor fire pits.

    Trend to watch: “The popularity of tequila and mezcal is taking the nation by storm. The spirit is a key component in the new craft cocktail movement. La Hacienda is more than prepared for this trend by having our very own tequila expert, Katie Schnurr, our in-house ‘Tequila Goddess,’ who was certified by the Tequila Regulatory Council in Mexico. Her knowledge of the spirit, her guest interaction and ability to match the guests’ palate to any of our 240 tequilas and mezcals is unparalleled in the Arizona market. La Hacienda offers a very unique tequila tasting experience.”

2. Elote Cafe

3. The Mission

4. Macayo’s Mexican Kitchen

5. Barrio Queen

6. Valle Luna Mexican Food

7. Sol Cocina

8. Old Town Tortilla Factory

9. Mi Nidito

10. Don Jose Mexican Food