Tag Archives: buildings

Winn

Winnresidential Adds Apartment Portfolio in Arizona

WinnResidential, the property management arm of WinnCompanies, announced today that it has assumed management responsibilities for Highridge Costa Investors, a leading developer and asset manager, at six of their multifamily communities in the state of Arizona.

As a part of this partnership, WinnResidential will take over the property management, maintenance and leasing for all six communities. The portfolio includes Casa Bonita, a 60-unit community in Tucson; Florence Park Apartments, an 88-unit community in Florence; Quail Run Apartments, a 156-unit community in Peoria; Sonora Vista Apartments, a 65-unit community in Douglas; Valle del Sur Condominiums, a 60-unit community in Tucson; and Village Square Apartments, a 116-unit community in Phoenix.

The Arizona properties are a welcome addition to the Winn portfolio,” said Deirdre Kuring, Chief Operating Officer of WinnResidential. “We look forward to providing superior service to our new residents and our client.”

The portfolio consists of a very diverse group of properties spread throughout Arizona. The furthest West is in Peoria, Ariz. and extends all the way to the Mexican border in Douglas, Ariz. These six properties are very well-maintained assets that offer senior housing, affordable housing, market-rate housing, and some properties were designed specifically for special needs residents. Each one provides community programs and activities to create a real sense of community.

WinnResidential is a well-known and highly respected property manager across the country, and we are excited to partner with them on our Arizona portfolio,” said Michael M. Snowdon, Vice President of Asset Management at Highridge Costa Investors. “We are confident that through their quality operations practices, they will provide the best possible service to residents.”

One Lexington

Snapshot: Downtown Phoenix Buildings

Gallery of downtown Phoenix buildings. HDR (High Dynamic Range) technique was added to the photo to give a more dramatic effect.


Luhrs Tower


HDR is a set of techniques that allow a greater dynamic range of luminance between the lightest and darkest areas of an image than current standard digital imaging techniques or photographic methods. This wide dynamic range allows HDR images to more accurately represent the range of intensity levels found in real scenes, ranging from direct sunlight to faint starlight.


CityScape



Phoenix City Hall


The two main sources of HDR imagery are computer renderings and merging of multiple photographs, the latter of which in turn are individually referred to as low dynamic range (LDR)[2] or standard dynamic range (SDR)[3] photographs.


Chase Tower


Tone mapping techniques, which reduce overall contrast to facilitate display of HDR images on devices with lower dynamic range, can be applied to produce images with preserved or exaggerated local contrast for artistic effect. —Description courtesy of Wikipedia


Bank of America


Illustration of suburb with recycle logo

Sustainability Is Possible In The Suburbs. Really.

Is it possible to build a sustainable suburb? The answer depends largely upon your perspective.

Of course, sustainability is a word freely associated these days with eco-friendly building materials, alternative energy and “living off the grid,” and is usually used in conjunction with the concepts of urban living, light-rail and transportation-oriented development. However, some of the first sustainable buildings were lovingly referred to as “land ships,” and built far from cities.

The deserts of Taos, N.M., for example, still host these forward-thinking renegade buildings dating back to the late 1960s and 1970s, and were colorfully branded by many as “crazy hippy stuff.”  And certainly these buildings are a far cry from the buildings and locations we think of as locations of sustainable development today.

Arizona has long been associated with sprawl, and frankly it’s the reason why the sustainable movement has been slow to catch. However, with a struggling economy and real estate development virtually at a standstill, it’s important to think beyond our limited frame of reference. But the suburb? Can it really be sustainable?  Our twin love affair with privacy and the automobile has made the suburb far from a likely place to orchestrate sustainability. Places where garages line streets instead of trees and retail buildings have walls around them virtually imposing a drive instead of a walk. But there is a sustainable sun on the horizon.

Arizona State University’s Stardust Resource Center has created a Growing Sustainable Communities Initiative, and its strategies for growing sustainable communities in the Valley of the Sun include:

  • Promoting mixed land uses
  • A range of housing types
  • Thriving economies
  • Environmentally responsive design
  • Having a variety of transportation choices
  • Compact development
  • Making places safe
  • Promoting healthy living
  • Community engagement

 

I could write four pages about each of those points, but essentially they mean: building sustainably occurs block-by-block, street-by-street, house-by-house. It is an organic process and there is no cookie cutter, one-size-fits-all approach. In fact, the standard of cookie cutter replication is what has created much of the challenges in every community built after 1950 in Arizona.

To be successful, it is imperative that we change our standard “square mile” approach to development, where commercial businesses exist only on the edges and residential homes on the interior and there is virtually no interplay between them. No parks, and no tree-lined streets. A better strategy is to develop on the quarter-mile, where neighborhoods have work and play uses and schools and shopping centers interact with residential neighborhoods through a network of paths and pedestrian/bike connections — just like the village concepts of the historic neighborhoods built prior to the 1950s. Ask any Midwesterner what they miss about home and I’ll bet they say their “neighborhoods.” There’s a reason why.

What the sustainable movement is advocating is greater creativity on the developer side and less regulation and restrictions on the government side. Scott Carlin, an associate professor of geography at the C.W. Post Campus of Long Island University, makes an excellent case for a deeper theory of sustainability. He suggests we re-invigorate ties to cities and villages, by building new homes only where there are existing water and sewer lines, sidewalks, schools, businesses and the other infrastructure within a reasonably close radius. In other words, so we can get out of our cars and walk.

What about existing neighborhoods? Well, they can be re-imagined as sustainable by relaxing zoning code to allow for commercial uses consistent with vibrant neighborhoods and by resisting the status quo. It will also happen when residents advocate for and pursue the creation of public amenities like parks and pathways and tree-lined streets. Even the Urban Land Institute recognizes the opportunities suburbs represent because it’s where the biggest gains could be made. Still, it cautions that connecting the dots between suburban projects through effective sub-regional planning is essential.

It is possible for us to focus on more than buildings when we think of sustainability.  With a bit of imagination, and the commitment to integrate the principles of sustainability even on the outskirts of town, we can succeed. Surprisingly, in fact, we won’t be creating anything new. Because, it’s when we look to the past and incorporate the best of what it means to live in an American neighborhood we win. Sustainability is certainly a look to the future, but its reality and its secrets are grounded in our American past.

Recycling Bins

Green News Roundup-Greener Building, Education & More

For those of you involved in the green/sustainability arena, you are probably still decompressing from the impressive event that was the Greenbuild 2009 Conference and Expo that was held last week. With over 27,000 attendees, the Phoenix Convention Center, Chase Field, local businesses, and the entire community were host to a remarkable event.

Produced by the United States Green Building Council (USGBC), the conference aimed to bring leading minds, businesses, and the community together around the premise of green building, education, and professional networking.

During my time visiting the impressive conference, some of the following thoughts came to me:

  • The Gargantuan Expo: The expo (which was an exhausting feat to see all of it in detail) was filled with an incredible array of vendors showcasing their particular products that contribute to green buildings and lifestyles. There are – it is not a stretch to say – innumerable creative manners in which a business or individual may contribute towards a “greener” building, property, and subsequent environment.
  • Intellectual Development and Discussion: There were several intriguing presentations by industry experts, academic researchers, community members, and perspicacious interdisciplinary practitioners. The presentations that blended elements of “green” building/design with a social cohesion element had particular merit.
  • Keynote Speeches: Nobel prize laureate Al Gore gave the keynote address on Wednesday evening at Chase field. While much of Mr. Gore’s speech was information that many of the participants may have already heard via self subscription to the “green” lifestyle, he did offer a particularly compelling charge to the audience. It was a call to arms advocating that the audience move beyond discussing green tactics and immediately work to make a substantive difference, now.

Given the participation of the conference, I would challenge each individual to consider some of the following points:

  • How do we, as individuals who have a particular interest in this field (and its success), bring the tenants of green building to those who need it most? What are the ways in which we are enabling and setting up our communities – of all socioeconomic and demographic representation – for success? Are the technologies and methods we recommend commensurate with a practical application to those who need it most?
  • What are the implications of the commoditization of green building ideals? While there are too many integrated issues to list here, how could the exhibitors at the Greenbuild expo make a difference in areas of abject poverty and subsistence-level construction (i.e. the applicability and practicality of technology towards the greater good)?
  • Given the awesome level of experience and mental aptitude that accompanies these conferences, what type of demonstrable impact can they have on the community in which they are held?

I’d love your thoughts, reactions, and recommendations on what you thought of Greenbuild and how to make conferences, like this one, better in the future.

Jeff Roberts Opus West

Jeff Roberts – Vice President Of Real Estate Development At Opus West

About 10 years after its Phoenix headquarters opened in 1979, Opus West came up against a major recession in the Valley. It survived that test and is weathering today’s economic downturn with the same tactics.

A division of the Minneapolis-based Opus Group real estate development company, Opus West is going head-to-head with Arizona’s moribund economy with its corporate structure, diverse product base and a development philosophy that has served it well.

“We are vertically integrated and that allows us to react quickly in good times and bad,” says Jeff Roberts, vice president of real estate development.

Opus West has in-house property management, construction, design and development services. Presently, the company’s design-build staff is opening new revenue streams by offering its services to outside clients, such as corporations and governments.

The company still looks for opportunities and is more likely to find them within its broad line of products — retail, industrial, office and residential, including condos, apartments and senior housing.

As part of its approach to development, Opus West does not hinder its flexibility with a sizeable property portfolio and keeps its land inventory low, Roberts says.

“In the late ’80s and early ’90s (recession), many companies accumulated a large portfolio and were much more affected, while we had built our buildings and sold them for a profit,” he says. “That makes us much less subject to market cycles.”

In these tough times, Opus West is again focused on finishing existing projects to get new tenants moved in, taking care of existing tenants and keeping the door open to build-to-suit projects for tenants that are willing to commit, Roberts says. Projects on its plate include the 263,000-square-foot mixed-use Tempe Gateway building in downtown Tempe and the 170,000-square-foot Mill Crossing shopping center in Chandler.

One bit of good news Roberts sees in today’s economy is a “reasonably strong amount of large tenant activity” as companies move for economic reasons or to take advantage of a down market and upgrade to nicer space. Roberts expects little new construction in 2009.

“I don’t look at it as a year where there will be any major projects,” he says. “It will be a year of people working through leasing up what they’ve got and, hopefully, a year we hit bottom and see things heading back up. The big question is whether the economy picks up enough where we can get some significant net absorption.”

Roberts has more than 17 years of real estate experience in eight different cities. Prior to joining Opus West, he was an asset manager for Beta West in Denver. Roberts holds a bachelor of science degree in real estate from Arizona State University.

www.opuscorp.com

The Long View 2008

The Long View

By Melissa Bordow

In real estate, as in love, beauty is in the eye of the beholder. So when you ask major players in the Valley’s office-condominium market how attractive it is, you’ll get wildly divergent answers.

long view 2008

On one hand, brokers, bankers and economists can tell you what the numbers say: Office-condo sales have lost velocity, slowed by a struggling housing market and banks that have reined in credit to commercial and residential borrowers.

On the other hand, you have developers who know that even during slow economic times, there always is growth on the Arizona horizon. They see beauty in the Valley’s long-term prospects and say they are committed to a long-term relationship.

Growth that occurred three years ago during the freewheeling days of the housing boom, they say, has produced enough roof tops in far flung areas of the Valley to still require their services.

What happened
Four years ago, office-condos were an up-and-coming niche market, and real estate advisory firm Grubb & Ellis touted Phoenix as “the office-condo capital of the nation” in a survey of 41 cities. With plenty of property available and under construction, Phoenix was “ground zero” for office-condos, according to the survey.

Today, construction has slowed and transactions are down, figures compiled by commercial brokerage firm CB Richard Ellis show.

“It’s kind of like a bouncing ball, what goes up must come down,” says Kelley Ahrens, a director in the brokerage side of CBRE’s office-condo division. “It’s down now, but like a ball hitting cement it will bounce back up.”

According to CBRE’s figures, between 2005 and 2006, developers added 3.69 million square feet of office-condo space for a total of 10.93 million square feet.

Calculations show absorption that year was about 3.3 million square feet. By the fourth quarter of 2007, with 2.63 million more square feet added, absorption was 1.4 million square feet. By the second quarter of this year, only 360,000 square feet was added to inventory, with about 330,000 square feet sold.

Figures from commercial brokerage firm Lee & Associates show the vacancy rates are hovering around 29 percent in the East Valley and 24 percent in the West Valley. Scottsdale vacancies are at 17 percent.

“Is the market overbuilt? I would consider it overbuilt, but not grossly,” says Andrew Chaney, an associate at the firm. “You need to get that vacancy number down close to 12 (percent) or the mid teens before you get people excited to build.”

Developers and brokers say less activity is due in part to banks tightening credit and underwriting requirements.

“It’s just harder to come by capital,” Ahrens says. “Developers still believe in the office product. It’s getting someone on the financial side to believe in the product.”

Valley bankers, on the other hand, say they are willing to lend, but potential buyers must show they have a viable business plan with enough potential earnings to withstand the economic downturn.

“If I have a real good, strong buyer, I’m going to finance that office-condo,” says Kevin Kinerk, vice president of Western National Bank.

There simply is not the same demand, as many small businesses that bought office-condos were affiliated with the construction and housing industries, Kinerk says.

“The last thing they’re going to do right now is buy a piece of real estate,” he adds.

In the last six months, Kinerk says he’s approved financing for 20 office-condos, about half of what he approved in the first six months of 2007. Valley wide, transactions dropped from 410 in 2007 to 130 in the first two quarters of this year, according to CBRE figures.

Troy Toolson, vice president of Valley Capital Bank in Mesa, agrees that well-established businesses that meet due-diligence requirements should be able to get a loan. Startups, though, may have a tougher time.

“We’re really positive about office condos, particularly end-users, right now. It’s just the tough economy. People are a little gun-shy right now, but there are loans available,” Toolson says.

Bob McGee, president of Southwestern Business Financing Corporation, a nonprofit corporation that partners with banks to administer Small Business Administration loans to commercial borrowers, says conventional lenders are analyzing businesses more closely and asking for more equity, historic cash flow and cash flow to debt service.

Location, location, etc.
Office-condo developments that were strategically placed and well constructed still are luring small business owners who want to own their own space.

Sales are occurring in areas where housing is built-out, but necessary amenities have yet to reach, developers say.

“It’s a good time to be strategically aggressive,” says Terry Tobey, senior vice president of business development for UTAZ. Pinal County and Queen Creek, she says, are prime locales for office-condos designed for the professional doctor, dentist or insurance agent.

“Not everyone is in a recession,” Tobey says. “There is no recession for death and taxes and health. People still need to go to the doctor.”

And they would prefer to do so, she says, close to home.cover october 2008

The medical end of the office-condo market has held up better than most, Tobey says, and UTAZ has projects under construction across from the Banner Ironwood Hospital under construction at Combs and Gantzel roads in Queen Creek, and Mercy Gilbert off the 202 Freeway and Val Vista Drive, among others.

“We’ve always picked great locations and we are still getting people wanting to purchase,” she says.

Siting an office-condo well is the key to maintaining sales, agrees Steve Beck, a vice president at COBE Development.

COBE does extensive research on an area’s demographics,schools, hospitals, traffic patterns, freeway systems, and potential growth before building. That has helped thecompany absorb 20,210 square feetthis year, says T.J. Zaharis, vice president of sales and marketing, an increase of 50 percent from 2007.

“As the market has its ups and downs, location will always pull you through,” Beck says.

www.cbre.com
www.lee-associates.com
www.wnbank.com
www.vcbaz.com
www.swbfc.com
www.utaz.com
www.cobedevelopment.com