Author Archives: AZRE

AZRE

About AZRE

Pulling together the multiple facets of the commercial real estate industry in Arizona, AZRE: Arizona Commercial Real Estate Magazine reaches out to the largest local and national commercial real estate audience within the Grand Canyon State and beyond. AZRE covers up-to-date happenings within commercial development, brokerage, construction, investment, finance, architecture, property management, real estate law and more as it relates to Arizona. Additionally, AZRE is an active voice within the commercial industry, partnering with such organizations as NAIOP, ABA, ICSC AZ, AIA AZ and Valley Partnership.

Chauncey Professional Center, 6930 E. Chauncey Lane, Phoenix.

CBRE negotiates $11.1 million sale of two premier Class A office buildings

ViaWest Group has sold two premier class A office buildings in the Phoenix metro area for a total consideration of $11.1 million. CBRE negotiated the sale to Melcor Development of the ±24,154-square-foot Perimeter Parkview Corporate Center at 8355 E. Hartford Drive Scottsdale, Ariz. and the ±35,066-square-foot Chauncey Professional Center located at 6930 E. Chauncey Lane, in Phoenix, for a combined ±59,220-square-foot investment. The buildings commanded sale prices of approximately $4.1 million and $7 million, respectively.

Barry Gabel and Chris Marchildon with CBRE’s Phoenix office represented the seller, ViaWest Group of Phoenix. The buyer, Edmonton, Alberta, Canada-based Melcor Developments Arizona, Inc., was represented by Tom Swan with Amcal Southwest.

ViaWest originally purchased the properties in two separate transactions. The Chauncey property was purchased in December 2006 in shell condition and ViaWest was able to lease up the property from zero percent in late 2007 to 100 percent by mid-2009 during a very difficult leasing period. This was done through building spec suites of varying sizes, creative marketing approaches and unique lease structures. The Perimeter Parkway property was bought at a trustee sale in January 2011 with a portion of the property leased and the balance in shell condition. Within one year of purchase the property was 100 percent leased.

Both Chauncey Professional Center and Perimeter Parkview are presently 90 percent leased, with one suite in each property becoming available within the last month. Those suites total 3,708 square feet and 2,486 square feet, respectively.

“These two assets are excellent properties that are of great quality and extremely well-located. Melcor should have much success with them. As a local value-add operator, we will continue to redeploy capital into our strategies that generate opportunistic-type returns,” stated Steven Schwarz of ViaWest Group.

“The North Scottsdale/Airpark area has consistently outperformed the overall Phoenix market in net absorption of office space and is one of the top job-creating economies in the U.S.,” said CBRE’s Gabel. “In addition, these properties are both surrounded by first-class amenities, high-end executive housing and the Loop 101 Freeway making them very attractive to both current and prospective tenants, and solid investments for the buyer.”

The sale marks Melcor Developments Arizona, Inc.’s entrance into the Arizona market and ViaWest has been retained to continue management of both properties keeping its management portfolio in excess of 1.5 million square feet.

Built in 2007, Perimeter Parkview Corporate Center is a two-story, class A, multi-tenant office building situated in the Scottsdale Airpark submarket. The property has a high-quality tenant roll including Arizona State University’s WP Carey Graduate MBA Program, Interior Motives, Titus Brueckner & Levine PLC, BIC Distributors and Pro Sports Management. The property is located at the base of the McDowell Mountains, in the ±260-acre Perimeter Center Business Park. The business park is adjacent to the TPC Stadium as well as numerous residential and golf communities, resort hotels and an abundance of exciting dining and retail options.

Chauncey Professional Center, which was built in 2006, is located in the North Scottsdale Corporate Center master-planned commercial development. Tenants include Aspen Systems, Troche Fertility Clinic, Marcum Media, AZ Tech Finders, Nobis Technology Group, Landmark Management Group, MiCamp Solutions, Bottle & McInerney, Cadron Financial and Pogson Asset Management. Chauncey Professional Center is surrounded by first-class amenities, including the ±580,000-square-foot Scottsdale 101 retail power center, the ±200,000-square-foot Whole Foods anchored Shops at Chauncey Ranch, the ±465,000-square-foot Chauncey Ranch Autoplex, and a ±110,000-square-foot Lifetime Fitness. The property also benefits from proximity to high-end executive housing and the Loop 101 Freeway.

Perimeter Parkview Corporate Center, 8355 E. Hartford Drive, Scottsdale, Ariz.

Perimeter Parkview Corporate Center, 8355 E. Hartford Drive, Scottsdale, Ariz.

3350 E. Hemisphere Loop, Tucson, Ariz.

Colliers International completes $18.95 million sale of 143,650 SF office in Tucson

Colliers International in Greater Phoenix recently completed the sale of a 143,650-square-foot Class A office building for $18.95 million, or $131.95 a square foot.

W. P. Carey Inc. on behalf of CPA®:17 – Global, one of its managed REITs, purchased the building, which is leased to a single tenant. The seller was Summit Properties of Seattle.

Neil Glassmoyer, senior vice president; Tivon Moffitt, vice president; and Peter Bauman, senior associate; all of Colliers International in Greater Phoenix, served as brokers for the buyer and seller.

“The transaction is the largest office sale in Tucson based on square footage since January of 2008 and involves one of the highest quality assets in the market,” Moffitt said.

“This sale shows demand for assets in the Tucson market that have investment-grade tenants,” Bauman said.

Constructed in 2002, the building is located at 3350 E. Hemisphere Loop in Tucson and is situated on 16 acres at the Tucson International Business Center.

“The buyer acquired this Class A office building well below replacement cost with a high-quality tenant in place,” Glassmoyer said.

Gino Sabatini, W. P. Carey Managing Director and Co-Head of Global Investments, noted, “The quality of the tenant and the criticality of the asset to their operations made this an attractive investment for W. P. Carey. The building’s size along with significant improvements made by the tenant are key factors in meeting the tenant’s unique requirements and consequently enhanced the investment value of the asset for us.”

coreslab

Coreslab Structures celebrates 25 years, mayor to attend open house

As part of the company’s 25th Anniversary celebration, Coreslab Structures of Arizona will be hosting an open house Friday, April 25 at its facility, located at 5026 S. 43rd Ave. in Phoenix, including such local dignitaries as City of Phoenix Mayor Greg Stanton. The event will be held from 9:00 a.m. to 1:00 p.m.

Expecting more than 200 clients and industry supporters, Coreslab’s open house will include tours of the facility and production facility, double-tee load test, self-consolidating concrete demo, door prizes, and food and drinks.

Arizona general manager and vice president Ron Harman stated, “This open house is an opportunity to connect with our loyal customers, architects and general contractors in the Valley, while demonstrating new innovations possible with precast concrete. As the needs of our clients have changed over the years, we have developed new products and improved our production processes to ensure that they are receiving a quality product at a competitive price.”

Stanton’s confirmation of attendance reflects his commitment to Phoenix businesses. Since taking office just two years ago, Mayor Greg Stanton has worked tirelessly to build a modern economy that works for every Phoenix family. By lifting up local business such as Coreslab Structures, Stanton is leading the way to create an economy built to last. Before he was elected mayor in 2011, Stanton served nine years on the City Council and as Arizona’s Deputy Attorney General.

Photo by Carl Schultz.

After Hours: Michael A. Pollack

Knowing more about the people we work with is the fun side of the business. It helps start conversations and strengthens business relationships.

In this installation of “After Hours,” meet Michael A. Pollack, president of Pollack Real Estate Investments in Mesa. Pollack founded his company 40 years ago. Along with its affiliates, Pollack Real Estate Investments has been involved in more than 12 MSF of real estate projects throughout the U.S. He takes pride in being involved in all aspects of real estate including the ownership, management, construction, business negotiations, acquisitions, sales, contracts, finance and leasing of various types of company-owned projects.

Born and raised: San Jose, Calif.
Wife: Cheryl Pollack
Education: San Jose State University

Favorites
Sports // Football and basketball
Music // Rhythm and blues
Travel destination // Europe
Leisure activities // Playing drums with my band, Corporate Affair, and collecting antique pieces, including advertising statues, animated displays and antique slot machines for my Pollack Advertising Museum

What did you think you’d be when you grew up?
Either a musician or a real estate developer.

Of what personal or professional accomplishment are you most proud?
Surviving the 2009 to 2011 real estate meltdown without renegotiating a single loan and paying all my bills in full and on time.

What would people be surprised to know about you?
In 1973, when I graduated from high school, I almost went overseas on tour with a band instead of entering the real estate business. After careful consideration, I chose real estate, because as a drummer who couldn’t sing very well my future earning ability in music didn’t look as bright as my potential earning ability in real estate. I promised myself back in 1973 that I would return to play the drums when I didn’t have to make a living at it. In 2005, I formed the band Corporate Affair and we have played more than 100 shows that have included performances at various charity events around the Valley and at the major parades such as Phoenix Electric Light Parade, Tempe Fantasy of Lights Parade and the Fiesta Bowl Parade.

How did the Pollack Advertising Museum start?
My interest in collectibles actually started when I was about 13 years old. I would go to flea markets on Saturdays and buy electric beer signs, repair them Saturday night and then take them to antique stores and sell them on Sundays for a profit. My favorite story involves a life-size Bosch battery man displaying a car battery. The Bosch man was found in what used to be East Berlin after the wall was torn down under a dilapidated building, inside a coffin. I also enjoy collecting animated Baranger displays and antique slot machines. The Pollack Advertising Museum has grown from a few dozen pieces in my basement 40 years ago to a world-class museum with more than 8,000 pieces on display.

What is the best business advice you’ve been given?
Always be able to “CYA” — cover your assets!

What advice would you share with people early in their real estate career?
If you want to be successful, be willing to work hard, learn all you can about the business you choose and always deal with honesty and integrity.


To nominate a colleague, request an After Hours form from Amanda Ventura, amanda.ventura@azbigmedia.com.

Left, Arizona Mills; Top Right, Hyder II Plan; Bottom Right, Air Transport Components.

Project News: April 2014

REVISITING EASY STREET
Butte Development is revisiting plans for the $90M mixed-use project Easy Street near Cave Creek and Tom Darlington roads. The project includes 80 luxury condos and approximately 50k SF of retail and commercial space. Butte is working closely with the Phoenix Art Museum and the town of Carefree to consider a 10K SF satellite museum at the project. Current discussions include an exhibit schedule that rotates seven times per year and a 1,500 SF multipurpose community center. The project would be built in two phases. If negotiations with the Phoenix Art Museum and the town of Carefree are successful, Butte hopes to break ground on the south phase of the project by year-end. Phoenix-based Ryan Companies is the general contractor, and Kendle Design Collaborative in Scottsdale is the design architect.

CLEARED FOR TAKEOFF
LGE Design Build completed a 67K SF tenant improvement and renovation project for Air Transport Components in Gilbert. Renovations included the addition of 8KSF of office space strategically located at the building atrium feature, adding significant airline and power distribution, retrofitting all restrooms, adding a new break room, adding a new roof, all new lighting, all new flooring, all new insulation, and exterior modifications including paint, parking lot re-seal, and landscaping.

UPSCALE DINING
Ideation Design Group remodeled Arizona Mills mall’s 40KSF food court in Tempe. The $4M project launched in spring 2013 and was completed in March. IDG used local material, recycled projects and Arizona companies to execute features, including porcelain tile flooring with a whitewashed and black-washed wood plank feel, stacked stone and wood accents, as well as banquette seating, silk plants and custom lighting. The developer was Simon Property Group, the general contractor was Verde Building Corporation and contractors included MWM.

SOLAR FLAIR
McCarthy Building Companies completed the install of Hyder II solar plant for Arizona Public Service. The plant is on 240 acres in eastern Yuma County and uses 71,000 single-axis tracking photovoltaic panels to generate 14 megawatts of solar energy. This is enough to serve 3,500 homes.

RENOVATIONS ON ICE
The Ice Den in Chandler, recently purchased by Coyotes Ice, will close for a $3M renovation process. The project will include bringing the building up to code as well as work on the roof and subfloor. The rink will re-open this summer.

UPDATING HISTORY
CSM Lodging plans to renovate the historic Professional Building at Central Avenue and Monroe Street into a modern hotel. The building, which originally opened in 1932, has a budget of $40M for renovations, which will include 165 guest rooms on 12 floors, a 5K SF meeting space, 1,300 SF fitness center and 8K SF of retail along Central Avenue. The project is expected to bring about 100 construction jobs to Phoenix.

Planning and Zoning

Planning & Zoning: April 2014

City of Scottsdale
The City of Scottsdale is preparing a zoning ordinance text amendment and has invited the community for review and comments. Amendments to the text are proposed to update definitions and regulatory language related to terms used to describe a responsible party such as property owner, applicant and other related terms. General cleanup revisions are also proposed to correct section references, eliminate duplication of requirements and improve the overall consistency of the ordinance. The ultimate objectives of this proposal are to add consistency, improve the usefulness of the ordinance and to provide clarity in the language of the ordinance. One meeting, with the public invited, has already occurred in January but others are to be scheduled.

Town of Gilbert
As demand for multi-family housing continues to increase within the Town of Gilbert, town leaders are proposing to tighten restrictions for developers that are considering building apartment complexes in commercially zoned areas. These new restrictions would add a number of conditions that a potential apartment developer would have to meet to get an apartment complex approved in regional commercial zoning. Those conditions would include a requirement to provide a mixture of land uses, such as office or retail commercial, on the proposed apartment parcel or on an adjacent parcel; a requirement that the project be compact or dense by sharing parking with adjacent development; a requirement for pedestrian-orientation or to have pedestrian accessibility, convenience and attractiveness; a requirement to address local transit system connections with facilities for pedestrians, bicyclists and automobile drivers; and a requirement to incorporate attractive public spaces that might include public art and serve as public gathering places. The objective of these newly proposed regulations is to give the town council and the planning commission more flexibility in reviewing any proposed apartment complexes and allowing them the option of rejecting proposed plans if they don’t meet specific new requirements. The proposed new regulations went before the planning commission in January, and members were generally favorable to the new standards but suggested a need for some revisions. The commission will review the standards in a study session and eventually vote on a recommendation, after which the proposal will go to town council for approval or rejection.

City of Maricopa
Recently, the Maricopa City Council approved the annexation of approximately 850 acres of land owned by a partnership known as Anderson Russell LLC. The property is located south of the Maricopa-Casa Grande Highway and straddles both sides of Anderson Road while extending southward to the Teel Road alignment. This annexation is significant in that it now allows the city the capability to expand to the south by annexation. City officials are already contemplating the annexation of additional properties adjacent to the Anderson Russell property. A general plan amendment has also been approved, changing the property to a master-planned community. Although a portion of the newly annexed property was within the City of Casa Grande’s planning area, an agreement exists between the two municipalities that allow that private landowners within unincorporated areas of the county to be able to choose which city they wish to be annexed regardless of which city’s planning area they are located in.

City of Peoria
The City of Peoria has recently announced the initiation of a self-certification pilot program. Qualified applicants to the program must be active Arizona licensed design professionals who have attended the self-certification training offered by the City of Phoenix (phoenix.gov/pdd/topics/scp.html), and have successfully obtained a Building Plans Examiner Certificate from the International Code Council. Through this program, eligible building permits can be issued in as little as three business days. This self-certification program allows qualified professionals to quickly bypass the plan review and examination process by self-certifying a projects compliance with building codes, standards and ordinances. However, the pilot program does not include zoning clearances, parking, signs, fire, environmental services, landscaping, grading, industrial/utilities, floodplain or other land development codes. The program was initiated this past January. To learn more of the program’s details, visit peoriaaz.gov/selfcert.

City of Buckeye
As reported in the September/October 2013 edition of AZRE, the “Town” of Buckeye is officially now the “City” of Buckeye. In January, the transition was celebrated by more than 200 citizens and city officials as the “CITY” portion of the new City Hall sign was unveiled in downtown Buckeye. The city’s Mayor Jackie Meck thanked the generations of the community, as well as previous town officials whose work would be continued by future city leaders. Meck stated that the city was no longer in the shadows and in fact was working to create shadows of its own.

The P&Z column is compiled by Dave Coble and George Cannataro with Coe & Van Loo Consultants, cvlci.com

ScottsdaleGateway

CSW leases 16,306 SF at Scottsdale Gateway II

Cassidy Turley, a leading commercial real estate services provider in the U.S., announced that it represented owner Pollock Gateway II, LLC, in its 16,306-square-foot lease with locally based CSW Contractors Inc. at Scottsdale Gateway II, 8901 East Mountain View Road in Scottsdale, AZ.

Senior Vice President Gordon Raguse and Associate Vice President Scott Isacksen of Cassidy Turley’s Office Group represented the landlord, while Glenda Keeney Gibson of KW Commercial represented the tenant.

Established in 1982, CSW Contractors Inc. is a general engineering contractor for municipalities and private enterprises though out the Southwest. It specializes in aviation construction, industrial landfills and mines, site work and street improvements. The Scottsdale Gateway II space will be used for CSW’s corporate headquarters.

“CSW is a perfect fit for the building and we are excited to have their tenancy.” said Mr. Isacksen.

Built in 1999, Scottsdale Gateway II is a two-story, 107,885-square-foot, Class A office project built on 8.45 acres. The property is centrally located in the Scottsdale Submarket at Loop 101 and Mountain View Road and is within walking distance to restaurants and shopping. Scottsdale Gateway II is 71% leased with 31,276 square feet available and suites ranging from 899 square feet to 13,258 square feet. The project has ample parking and exposure to Pima Road. For more information contact Gordon Raguse at 602-224-4452.

481268563

Cushman & Wakefield Research Shows Continued Progress for U.S. Industrial Market

Construction Pipeline Ramps Up to Meet Strengthening Demand

Robust absorption, declining vacancies and rising rental rates reflect continued progress for the U.S. industrial real estate market through the first quarter of 2014, according to commercial real estate services firm Cushman & Wakefield’s latest research findings, released this week. And while tightening supply may have contributed to a slowdown in leasing velocity through January, February and March, the nation’s industrial construction pipeline has ramped up to meet strengthening demand.

 Cushman & Wakefield’s John Morris, leader of Industrial Services for the Americas

Cushman & Wakefield’s John Morris, leader of Industrial Services for the Americas

“First quarter performance continued the notable progress industrial real estate experienced in 2013,” noted Cushman & Wakefield’s John Morris, leader of Industrial Services for the Americas. “Domestic manufacturing continues to gain traction, driving increased production and shipments, and electronic fulfillment continued to expand. As a result, the economic environment for our sector is the best we have seen in many years.”

In fact, industrial space occupancy gains rose 31 percent year over year, with 30.5 million square feet of absorption, compared to 23.2 square feet in the first quarter of 2013. Atlanta led the nation, with 5.1 million square feet of absorption, followed by the Inland Empire, with 4.6 million square feet. The U.S. overall industrial vacancy rate continued to trend down, ending the quarter at 7.4 percent, 80 basis points lower than one year ago.

“Availabilities are dwindling, especially in the highly competitive big-box market,” Morris noted. “This is holding industrial leasing in check. Only 11 out of the 38 markets tracked by Cushman & Wakefield posted increased activity year-over-year.”

Greater Los Angeles continued to lead the nation in leasing volume, with 7.7 million square feet in activity through March (down 16 percent year over year), followed by Dallas/Fort Worth, with 6.8 million square feet (up 13 percent year over year). Seven markets posted double-digit gains during the first quarter, with Northern New Jersey up 43 percent year over year, and Philadelphia recording a 74 percent increase.

A shortage of top-tier industrial space has placed continued upward pressure on rents. Average asking rates grew in most major markets tracked by Cushman & Wakefield, with the national direct average climbing from $5.73 per square foot to $6.03 per square foot during the past 12 months. Houston led the way with a 10.3 percent year-over-year average rent increase.

“The supply/demand imbalance also continues to fuel construction activity, including both build-to-suit and speculative product,” Morris noted. “Virtually all of the top markets are seeing construction pipelines return to near pre-recession levels.”

Dallas/Fort Worth and California’s Inland Empire are leading the nation in construction, with 16.5 million square feet and 14.8 million square feet of total volume, respectively. In Dallas/Fort Worth, 14.4 million square feet of that total is being built on spec. Of the 85.8 million square feet of total development expected to be completed nationwide by year-end 2014, 51.7 million square feet is speculative.

“Moving forward, we are watching a number of private sector developments that will likely add near-term momentum to the industrial real estate market’s positive trending,” Morris said. “Among them, we anticipate a continuing revival of the housing sector, the activation of pent-up consumer demand and rising export volume. Most importantly, we are beginning to see a shift in business attitudes and a greater willingness to take risk, which will lead to stronger employment growth and increased investments in people and equipment.”

chart
* Indicates change in “percentage points” from prior year (not percent).

hdc

hardison/downey construction announces new hires

hardison/downey construction inc. (hd/c) recently welcomed a new Project Manager and three Project Engineers specializing in tenant improvement work.

Avi Shtayer joins h/dc as a Project Engineer with a BSE in Construction & Civil Engineering from Arizona State University. He is currently assisting in preconstruction work for the Harley‐Davidson of Scottsdale project, set to break ground next month in north Scottsdale. Prior to his career in construction, Avi served as a Sergeant in the Israel Defense Force (IDF) and worked as an International Security Officer for the Israeli Government.

ZanolSandra Zanol joins h/dc as a commercial construction Project Manager and is currently working on projects for All Saints Episcopal Church & Day School and Ottawa University.

She has extensive experience in commercial construction, particularly tenant improvement work, and has been in the industry for 12 years, working for clients such as Crisis Response Network of Southern Arizona, Café Valley Bakery and Refrigeration Supplies Distributor.

BobrowskiBrandi Bobrowski comes to h/dc as a Project Engineer with more than seven years of experience. She is currently working on preconstruction work for The Blue apartment complex, set to break ground this summer in downtown Phoenix.

Brandi has extensive experience with clients such as AT&T, Thunderbird School of Global Management and the Gila River Indian Community. She received a Bachelor of Architecture from the University of Arkansas and an MS in Construction Management from Arizona State University, and is a LEED Accredited Professional.

WestJosh West is a new Project Engineer with a BS in Construction Management from Arizona State University. He is currently working on the 1010 Lemon Street student housing project in Tempe.

 

Lease at Diablo Technology Center

Colliers Completes 247,000 SF of New Leases at Diablo Technology Park

Colliers International in Greater Phoenix has completed 247,000 square feet of new leases at Diablo Technology Center in the last year and is currently marketing additional space there for a data center and also a speculative suite.

The leases at 2900 S. Diablo Way in Tempe include 110,000 square feet for Computershare, 71,000 square feet for Xerox and 66,000 square feet for Emerson, a manufacturing and technology company.

Charles Miscio, an executive vice president at Colliers International, and Danny Plapp, a senior associate with Colliers International, served as brokers for the landlords, Walton Street Capital of Chicago and The Muller Company of Irvine, Calif.

Computershare is the most recent transaction at Diablo Technology Center. Dan Dobric of Newmark Grubb Knight Frank served as Computershare’s broker.

In the other transactions, Emerson was not represented by a broker while JLL served as Xerox’s broker.

Motorola Solutions is the Diablo Technology Center’s original tenant, dating back 20 years, and continues to operate on a long-term lease.

Remaining in the project is 38,000 square feet of repurposed space that Colliers International is marketing to data centers and also an 18,000-square-foot speculative suite.

The Diablo Technology Center has a new 13,000-square-foot fitness center that serves as an amenity for all tenants. In addition, negotiations are underway for a food operator, with 1,500 to 2,000 employees on campus, to serve on-site breakfast and lunch and offer catering services.

“The building’s convenient location near Interstate 10, large campus environment with amenities and ample parking attracted the tenants,” Miscio said. “Success of the project is due to strong institutional ownership through The Muller Company and Walton Street Capital.”

“In addition, Diablo Technology Park’s proximity to high-quality employees in Tempe and the landlords’ involvement helped to drive the successful transactions,” Plapp said.

Cassidy Turley’s Ellis promoted to associate vice president

Phil EllisCassidy Turley, a leading commercial real estate services provider in the U.S., today announced that Phil Ellis has been promoted to Associate Vice President with the firm’s Property Management division in the Phoenix office.

Mr. Ellis will be responsible for the oversight and supervision of the Phoenix engineering staff. He will also focus on increasing the operating efficiency of all management assignments, including the integration and implementation of emerging technologies. His responsibilities include assisting with Capital Improvements and the construction management of Tenant Improvements.

“Phil’s a proven leader,” said Sue Cannon, Vice President with Cassidy Turley’s Property Management group in Phoenix. “Having someone with his knowledge and experience is a tremendous asset to our clients and to the staff that he oversees.”

Mr. Ellis joined Cassidy Turley’s Property Management group in 2013. He has over 26 years of experience in commercial real estate and engineering services, including capital improvement and construction management projects.

CBRE

CBRE Office Brokerage Team Wins NAIOP Award

A team of brokerage professionals in CBRE’s Phoenix office, Tom Adelson, Jim Fijan, Jerry Roberts and Corey Hawley, were awarded as the Office Broker Team of the Year by the Arizona Chapter of the National Association of Industrial and Office Properties (NAIOP). For Adelson and Fijan, who have worked together since 1983, this marks the 19th time in 24 years they have won this award. Roberts joined the company, and team, in 1988 and Hawley in 2004.

Executive Vice Presidents Adelson, Fijan, Roberts and Senior Associate Hawley are consistently among the top producing teams in CBRE’s Phoenix office. Since the beginning of their careers and partnership at CBRE, the team has been the most productive sales professionals with the greatest number of transactions in the Phoenix office. In 2013, the team completed 140 sale and lease transactions representing more than 3.55 MSF of office product and 2.7 acres of land.

“What’s most unique about this team is our ability to keep evolving over the years,” says Roberts. “Early on we realized that if we all focused on the parts of the business that came most naturally to us and enjoyed we’d be able to cover a lot more ground and touch a lot more clients.”

“Over the past 22 years that formula has worked well, but what is most important is that everyone on the team has our clients’ best interests in mind,” said Fijan. “Although we try not to overlap pursuits, we all know what the other team members are working on and we are constantly exchanging ideas and strategies to ensure our clients get the benefit of our team’s market knowledge and experience as a whole, as well as ensure all of our clients’ expectations are fulfilled. We’re all extremely knowledgeable about the office real estate market, but when you combine our individual skill sets the capabilities we have as a whole are quite impressive.”

Fijan, along with his associate Will Mast, focuses on office investment and land sales and consistently leads the market in transaction volume. Fijan has, thus far in his career, closed 90 million square feet in transactions for a total consideration of $9 billion. Adelson represents occupiers and corporate tenants looking for space in the market or around the world and maintains the status as the preeminent corporate services broker in Arizona and the country. Roberts, along with Hawley, provides landlord leasing services to owners and developers of commercial real estate throughout the greater Phoenix area. In 2013 alone, they leased over 1.6 million square feet and represented 18 different landlords in 48 lease transactions.

“Winning NAIOP’s ‘Best’ award is as much a testament to the high-level performance of the brokerage team as it is their ability to leverage CBRE’s extensive market reach and comprehensive platform of services,” said Craig Henig, senior managing director and Arizona market leader.  “But the big winners are our clients, who benefit from the local market knowledge and industry-specific expertise these individuals, and our company, provide.”

Talavi Corporate Center, WEB

California Casualty renews 6-year, 27,750 SF office lease at Talavi

California Casualty Insurance Co. has renewed its 27,750 SF offi ce lease for a 6-year term at Talavi Corporate Center, 5651 W. Talavi Blvd. in Glendale, Ariz.

Craig Coppola and Andrew Cheney, principals with Lee & Associates Arizona negotiated on behalf of California Casualty. Ashley Brooks, Jr. of CBRE represented the landlord, Regent Properties, Inc. of Los Angeles. Coppola originally brought California Casualty to the building in 2004.

During lease negotiations, the owner, CW Capital Asset Management sold the property to Regent Properties who was successful in retaining the strong anchor tenant.

“We were able to help California Casualty to capitalize on the competitive market in the West Valley. All parties were pleased with the win-win transaction,” said Cheney.

CoStar

Nexius Solutions Relocates to Gilbert

Cushman & Wakefield of Arizona, Inc. helped negotiate the relocation of Nexius Solutions to a 20,982-square-foot facility at 377 S. Hamilton Court.

Nexius Solutions, which provides end-to-end wireless services to prominent carriers and data-driven industries, will relocate from 2601 S. 37th St. in Phoenix. Nexius takes occupancy this month.

“The new site for Nexius provided them better access to their customers,” said John Grady. “Also, occupying the entire freestanding building was appealing to the company.”

Grady and Jackie Orcutt of Cushman & Wakefield represented the tenant. Eric Jones of Commercial Properties represented the landlord.

Liberty Center at Rio Salado, a Class A LEED Silver office development in Tempe.

Liberty Property Trust Closes Seven Deals in Arizona in the First Quarter 2014

Liberty Property Trust today announced it has closed seven lease agreements totaling approximately 425,000 square feet during a very strong first quarter of 2014.

“We are extremely pleased to announce this record level of lease transactions in Arizona,” said John DiVall, senior vice president at Liberty. “Our high volume of activity includes new leases and tenant renewals, both of which speak to the quality of our customer service as well as to the product we have available in the market.  We sense both office and industrial markets continuing to recover and we are very optimistic about moving forward in the Phoenix market as we continue to expand.”

The quarter was marked by three new leases and four renewals. New leases in the region include:

•    Power-One Renewable Energy Solutions, which signed a new lease for 105,542 square feet at Liberty Sky Harbor Center, located at 2626 S. 7th Street. The agreement brings the complex, which reopened last May after a complete renovation and rebranding, to 100% occupancy.

•   WageWorks Inc., which signed a new lease for 76,162 square feet at 1850 W. Rio Salado Parkway, which marked the first tenant agreement to be signed at the Liberty Center at Rio Salado, the company’s new Class A LEED® Silver office development.

•   The company also reports that it has signed a new lease for 42,639 square feet at 9801 S. 51st Street in Phoenix.

Notable lease renewals in the region include:

•   Veracity Logistics, which has signed a lease renewal for 74,124 square feet at 8313 W. Pierce Street in Tolleson. The company has been a Liberty tenant since 2011.

The Source Bakery, which has signed a lease renewal for 62,194 square feet at Liberty Tolleson Center. Located at 8601 W. Washington Street, the company has been a tenant at the building since 2003.

•   American Beverage Corporation, which has signed a lease renewal for 40,684 square feet at Liberty Sky Harbor, located at 2626 S. 7th Street. The company has been a tenant at the building since 2009.

•   Blood Systems Inc., which has signed a lease renewal for 23,455 square feet at 4405 E. Cotton Center Boulevard in Phoenix.  The company has been a tenant at the building since 2003.

In other news, earlier this quarter Liberty received LEED Silver certification for its newly opened building at 4500 E. Cotton Center Blvd. in Phoenix. The 139,403 square foot Class A two-story office building was built in 2013 and is fully leased to Aetna.

Liberty Sky Harbor Center, which is now at 100% occupancy.

Liberty Sky Harbor Center, which is now at 100% occupancy.

819-835 W. 22nd St.

Commercial Properties Releases Transaction List

Commercial Properties, Inc. reported its top five recent transactions.

In total the firm completed 128 transactions in March for a total of 888,662 SF.

Leading in sales transactions was Leroy Breinholt and Darin Edwards, who handled both sides of the deal for a 42,886 SF Industrial space sold to WNG Industrial, LP, at 819 – 835 West 22nd Street in Tempe for $2,250,000.

In land sales, Eric Butler and David Verwer sold approximately 4 acres for the owner at 6424 E Cave Creek Road, in Cave Creek, Arizona to Schuey, LLC, for  $973,420.

Ken Elmer leased a ±4,600 SF retail space at 10330 N. Scottsdale Road in Scottsdale to Arizona Urgent Care,LLC in the Total Wine Center.  “This pad building is just south of Shea Blvd on the Scottsdale road frontage, and was formerly occupied by Alphagraphics,” said Elmer.

Jeff Hays, Chad Neppl and Ryan Steele sold approximately 2 acres of industrial land at 4010 E. Raymond Street in Phoenix to McGilicuddy Industrial Partners, LLC, for $670,000. “The buyer is planning to construct a  ±30,000 SF Office/Warehouse freestanding building,” said Hays.

Andy Jaffe, SIOR handled both sides of the deal and sold a 5,500 SF office property at 5020 N. 8th Place in Phoenix for $550,000 to 777 Properties, LLC.  “This was an essential piece of a larger deal which Earnhardt’s has planned for a Lexus Dealership at Camelback Road and 8th Place,” said Jaffe.

807WGeneva, WEB

Cassidy Turley completes $800K sale at Broadway Industrial Park

Cassidy Turley announced the sale of a 13,082 square foot freestanding industrial building at the Broadway Industrial Park, 807 West Geneva Drive in Tempe, Ariz. Tempe-based Vick Holdings, LLC purchased the property for $800,000 ($61.15 PSF) from Tempe-based Christofolo Enterprises, Inc.

Paul Sweetland, SIOR, Vice President of Cassidy Turley’s Industrial Group represented the buyer, while Scott Backes of Menlo Group represented the seller in the transaction.

Built in 1979, 807 West Geneva Drive is a ±13,082 square-foot, industrial building on .80 acres. The property is centrally located in the Tempe/Sky Harbor Industrial Corridor with easy access to Sky Harbor International Airport, Interstate 10 and the U.S. Route 60. The building was vacant at the time of sale. Vick Holdings, LLC, specializing in the sale, service, and repair of landscaping equipment, plans to occupy the entire property.

SVN Headshots, WEB

Sperry Van Ness wins several awards at national conference

Each year, hundreds of advisors from Sperry Van Ness offices around the country meet to discuss company goals, share best practices and honor the offices and individuals excelling in their business at the SVN National Conference. The Phoenix Sperry Van Ness office collected several awards for outstanding achievements in 2013, including once again being named a Top 10 Sperry Van Ness franchisee.

 

The Phoenix Sperry Van Ness office, led by Neil Sherman, Shari A. Tucker-Gasser, Perry Laufenberg and Danny Lee, ranked No. 7 nationally in 2013. The ranking is based on deals closed and transaction volume from all 21 advisors specializing in the sale and leasing of retail, office, multifamily, industrial and investment sales.

 

Earning the prestigious Partners Circle Award were multifamily specialists Sherman and Lee. Sherman ended the year at No. 9 nationally, while Lee finished at No. 12.

 

Overall, our entire office had a very impressive year in 2013, while making the necessary adjustment to their business plans to account for the obvious shift from distressed deals to more market-rate transactions”, said Sherman. “Additionally, Danny and I, along with the rest of our multifamily team, continue to work with investors day in and day out to maximize the return on their apartment holdings”.

 

Specialty awards gave both advisors and support staff recognition for their business practices that led them to be successful. Justin Horwitz, office leasing and sales advisor, received the Innovator of the Year Award for his outstanding efforts embracing CRE Technology to further his business. According to Laufenberg, “Justin really embraces the countless tools offered by Sperry Van Ness, and puts them to work every single day to benefit his clients”, adding “Kassandra Bruhn, our marketing communications specialist, was awarded the Collaborator of the Year Award for her dedication and leadership employing a combination of sharing knowledge, interfacing with local and national media, and building consensus within the organization”.

 

Finally, those advisors who close a certain level of transaction volume each year are honored with the Achievers Award. For 2013, this award was presented to Rommie Mojahed, Mary Ridberg and Horwitz in the Southwest Achievers division.

Courtesy of Deco Communities

Deco Communities announces Edison Midtown in Phoenix’s Central Corridor

Midtown Phoenix is getting a hip new neighbor. Scottsdale-based Deco Communities has closed on a key parcel of land that will be transformed into Edison Midtown, a new urban contemporary condominium in the heart of Phoenix’s urban core. Located at 2346 N. Central Ave. the address says it all, Edison is central to Midtown’s buzzing scene filled with food, arts, culture and history Demolition of the vacant office building on the site will occur in the summer 2014 and the $22M redevelopment is slated for a 2016 completion date. Developed exclusively by Deco Communities, Edison Midtown will be the first major residential development announced for the Central Corridor since 2008.

“The Edison Midtown project taps into the soul of the city, utilizing the unique identity of the neighborhood to create an authentically local living space that caters to the tech-savvy, community-oriented Gen Y consumer that lives and breathes the urban lifestyle,” said Rob Lyles, partner for Deco Communities. “Our outstanding team of architects and designers has worked diligently to curate a thoughtful living experience that is true to the virtues of Phoenix’s downtown dwellers,” he said. “ Downtown Phoenix is experiencing a surge in housing demand spurred by the recent $4.5 billion investment by the public and private structure in infrastructure, transportation, education and tourism.  Deco is excited to have the chance to provide housing that both starts to address this demand and does so with a design that is true to the modern Phoenix aesthetic.”

Fueled by imagination and innovation, the Edison Midtown will include 80 unique residential units , many with stunning Instagram-ready views of the horizon and city lights. The city’s best indie coffee shops, bars, live music venues, funky boutiques and museums are all just steps away.  The units will range from approximately 800 to 1,350- square feet. Each residence will enjoy contemporary kitchens with opening shelving and repurposed countertops, gas appliances, 10 foot ceilings, steam showers, spacious walk-in closets, wood flooring and large balconies perfect for entertaining and soaking in the extraordinary city views. Pricing will start in the high $200’s.

With a mix of modern amenities and charmingly retro design inspirations, Edison Midtown speaks to the heart of the Gen Y urbanite.  Brought to life by the award-winning Los Angeles architecture firm Harley Ellis Devereaux, lead architect Daniel Gehman drew inspiration from the past and present of the iconic Midtown neighborhood, its Willo district roots, and its urban dwellers. As a result, the building is designed to be a confluence of community, the kind of place that fosters socializing and sharing and integrates seamlessly with the vibrant community around it. With a pulse exactly where trendy meets classic meets cool, Phoenix-based interior design firm Private Label will style the interiors.

Drawing from inspiration from illustrious hangouts such as the Ace Hotel brand found Palm Springs, Portland, London and LA, the contemporary building is styled with a hat tip to Frank Lloyd Wright’s early designs and rises 5 stories above a two-level underground parking structure offering 145 private parking spaces.  With the project’s close proximity to the Light Rail and just steps from the Central/Encanto Light Rail station, Edison Midtown residents can take advantage of Phoenix’s best urban transportation system or bike the city with ease.

Designed to foster a sense communal living, Edison Midtown will be a hub of activity with an array of social amenities including a garden-inspired courtyard pool and spa, a “cross-fit” style fitness center with yoga, secure bike storage, Wi-Fi common areas, electric car charging stations and more. The ultimate urban sanctuary, the Edison Midtown will afford residents a superior work, live, play lifestyle at the center of the thriving city.

AirportBusinessPark, WEB

California Investor Purchases Airport Business Park

Cassidy Turley announced the sale of Airport Business Park, a ±39,994 SF, multi-tenant industrial building at 2328 E. Van Buren St. A California-based investor, Airport Business Park Phoenix, LLC, purchased the property for $2.05 million ($51.26/psf) from Airport Business LLC (Portland, OR). Cassidy Turley Senior Managing Directors Paul Boyle and Rick Danis negotiated the transaction on behalf of the buyer. Leroy Breinholt with Commercial Properties, Inc. represented the seller.
Built in 1982, Airport Business Park includes five single-story buildings on ±2.39-acres.The property was 95 percent leased to 28 tenants at the time of sale.

Kristine Mower of Orcutt | Winslow accepts the SMPS Arizona 2013 Lifetime Achievement Award from Chapter President-Elect Grenee Celuch of Concord General Contracting, Inc.

SMPS Arizona Hosts Inaugural Marketing Awards

The Society for Marketing Professional Services  Arizona handed out awards in 10 categories recently at its inaugural Marketing Awards Gala held at the Phoenix Country Club.
The event honored the most creative and successful marketing individuals and collateral from 2013.
Winners among the 10 categories (and those who accepted the award):
>> Advertising: Pueblo Mechanical & Controls, Inc., Nicole Rodriguez;
>> Brochure: Rosendin Electric, Laura Senff ;
>> Corporate Identity: TankGirl Marketing for its work with Capital Asset Management, Tonia Swanson;
>> Holiday Piece: Orcutt | Winslow, Mike Nandin and Cassaundra Crofoot;
>> Newsletter: SWCA Environmental Consultants, Sara Libby;
>> Digital Media: Logan Simpson Design, Sadie Jo Smokey;
>> Proposal: T.Y. Lin International, Christina Sollie and Brandi Barr;
>> 2013 Technical Professional Marketer of the Year: Clifford Paul, PK Associates Structural Engineers;
>> 2013 Marketer of the Year: Amy Villasana-Moore, Sunrise Engineering;
>> 2013 Lifetime Achievement: Kristine Mower, Orcutt | Winslow.

 

Weitz Logo

The Weitz Company announces in-house design services, new office

The Weitz Company announced the expansion of its construction service offerings with in-house design engineering and the opening of a new design-build office in the Minneapolis, Minn., area.
“This is a by-product of our continuing growth,” said Len Martling, President and Chief Executive Officer of The Weitz Company. “Our new in-house design team—led by Minnesota-based engineering and process experts—will better enable us to meet our clients’ needs and respond to increased market demand. We look forward to continuing to grow our presence in the marketplace.”
With its expanded services underway, Weitz will provide mechanical engineering for process
solutions; modular construction integrated with its fabrication capabilities; and will diversify into slipform concrete design and construction. The design expertise aligns with industry markets such as agriculture, food & beverage, manufacturing, and heavy industrial.

Weitz design engineering team will be led by Gerald (Gerry) Leukam, 39-year industry veteran,
serving as Director of Business Development. Gerry will be supported by Kevin Grittner, P.E.,
Engineering Manager with solid experience in structural engineering and project management,
and Alexander (Alex) Westlind, P.E., Mechanical Engineering Manager with process design
experience.

“Our Minnesota-based team of industry professionals is excited to bring their expertise and over 60 years of combined experience to enhance the industrial and commercial services of Weitz,” Leukam said.

CityScape Residences model penthouse

CityScape welcomes first residents

CityScape Phoenix marked its final development milestone in February when the first residents moved into the CityScape Residences, a collection of 224 luxury apartments that sit atop Kimpton’s Hotel Palomar Phoenix.

The leasing office is now open daily from 11 a.m. – 6 p.m. along with a fully furnished, one-bedroom model on the 14th floor.

Expansive views and high-energy surroundings merge with sophisticated home finishes within all 224 residences. Residents have 24-hour access to the four-star hotel services of Kimpton’s Hotel Palomar Phoenix, including in-room dining by Blue Hound Kitchen & Cocktails, housekeeping, concierge, valet parking, business center and laundry services. Additionally, residents will enjoy parking with direct access into the residential tower, a private 24-hour state-of-the-art fitness center, a community area and an exclusive swimming pool 175 feet above Jefferson Street.

“CityScape is known for many things – most notably, work and play, but now it will take on a new component – live,” said Keith Earnest, Executive Vice President of Development at RED. “Our residents will have full access to the 24-hour vibrancy and energy of the neighborhood. What you find in two city blocks at CityScape is typically separated by miles in other cities. We’ve built a strong, tight-knit community and now we look forward to welcoming people who will call CityScape home.”

CityScape Residences offer unique studio, one- and two-bedroom floor plans with floor-to-ceiling windows, gourmet kitchens with prep islands and gas ranges, and luxurious bathrooms with sizeable closets. The residences range from 560 to 2,373 square-feet and include 23 two-story one, two- and three-bedroom penthouses on the top floors. All residences offer magnificent views of the city skyline and mountains beyond.

In addition to the hotel and community amenities, residents are automatically enrolled in a residents-only membership program at participating CityScape retailers and restaurants. Living at CityScape Phoenix puts residents just a few steps away from the best concert venues, theatres, professional sports venues and museums in Arizona.

“I have lived in Phoenix nearly my entire life and have never seen Downtown as vibrant as it is now, nor has there ever been a place more exciting to live than CityScape Residences,” said Irene McCready who works three blocks away at a major corporation and is the first resident to move in. “I sold my house last year and watched and waited for the CityScape Residences to become available. It’s like living at a resort with 24-hour room service and security, a resident-only pool and gym and full access to the hotel’s amenities. The spectacular views of South Mountain from my apartment and the never-ending variety of things to do are exactly what I was looking for in a home.”

CityScape Residences will be professionally managed by Alliance Residential Company. With resident move-ins underway, this signifies the completion of construction at the $500 million mixed-use destination.

For more information on CityScape Residences, call 866-628-0589 or visit www.cityscaperesidences.com.

For more information about CityScape Phoenix, a retailer directory and to see what’s happening, visit www.cityscapephoenix.com. Ample and convenient underground parking is available and validated by many retailers.

Cityscape Unit A1

Cityscape Residences Pool

Cityscape Penthouse 2

Tucson 2014 - Banner

Sundt golf tournament raises $18,000 for MDA

The Sundt Foundation, a charitable organization funded by Sundt Construction, Inc. and its employees, hosted its annual Mike Gaines Charity Golf Tournament last month at La Paloma Country Club in Tucson, Ariz. More than 100 golfers attended the tournament, raising $18,000 for the Muscular Dystrophy Association (MDA) in honor of long-time Sundt employee Mike Gaines, who passed away in 2002 from Amytrophic Lateral Sclerosis (ALS), also known as Lou Gherig’s Disease.

Originally launched in 2001 shortly after Gaines’ diagnosis, the tournament continues to raise money each year benefiting MDA in support of its research to find a cure for ALS. Although Gaines died in 2002, his legacy lives on through the Mike Gaines Charitable Fundraising Events held in Tucson and Phoenix, Sacramento, San Diego and San Antonio. Sundt and the Sundt Foundation have hosted nearly 40 events in the past 14 years, raising more than $1 million in donations for ALS research programs.

“It’s an honor to be a part of these ongoing events benefiting research and other advances toward a cure for ALS. We greatly appreciate the continued support of the construction industry,” said Sundt administrator and tournament organizer Aly Gartin. “This tournament not only offers a means to give back but increases awareness of such a terrible disease.”

The Sundt Foundation has been raising funds for Tucson-based non-profit organizations since 1999. The Foundation is funded primarily by contributions from Sundt employees and company matching. To date, the organization has awarded more than $5 million in donations to organizations throughout Arizona, California, Texas and beyond.