Tag Archives: clarius partners

The interior of the "Net Zero" DPR Construction office in Phoenix

Out of the Gate FAST

With the Valley’s housing market healthy again, developers and builders of industrial and office properties are hoping to ride the wave.
With the recession (hopefully) a distant memory, the industrial sector has sprinted out to the lead.
“Industrial projects have significantly outpaced office projects in our pipeline,” says Andrew Geier, executive vice president at Layton Construction. “Since finishing the Cigna Phoenix Central Multi-Specialty Center in late 2012 with Clarius Partners, most of our office portfolio has been comprised of tenant improvement projects.
In regard to industrial construction, Layton is 70% complete with its 1.5 MSF Marshalls Distribution Center. The Marshalls project has several unique features, Geier says. Other than its sheer size, it also boasts 52-foot clear heights and 6,500 kilowatt of generator back up power.
“We are also currently building out 80,000 SF of space for Maxwell Technologies,” Geier says. “The facility will produce carbon film used in capacitor production.”
In addition, Layton was recently awarded a 400,000 SF expansion to Macy’s Fulfillment Center in Goodyear. Also in Goodyear, Layton has been awarded the new 160,000 SF foot facility for The Cookson Company, Inc., an industrial door manufacturer.
“Our outlook for industrial projects remains very positive,” Geier says. “Obviously a strong backlog of projects helps shape that opinion, but we also think that the Valley offers several advantages for companies searching for a new location. Our positive outlook includes new speculative buildings, but we think the majority of the spec buildings will be industrial — with spec office lagging well behind.”
The West Valley appears the hot spot for industrial projects, says Tammy Carr, vice president business development for Howard S. Wright Construction, a Balfour Beatty company.
“Clearly it (the West Valley) has seen significant planning efforts in the speculative industrial sector and all of our industrial developer clients are seeking the appropriate timing to bring more product online,” Carr says. “Most seem to be continuing forward with design of facilities around the 400,000 SF range, but with a very watchful eye on the leasing results of those currently under construction.”
Balfour Beatty Construction just delivered to market a 185,834 SF refurbished cross dock distribution facility for Liberty Property Trust. The facility, Liberty Sky Harbor Center, is at 2626 S. 7th St. in Phoenix. This same client, Carr adds, is also partnered with the City of Tempe on a 100-acre, 10-year development plan for the construction of office, industrial and commercial flex space named Liberty Center at Rio Salado which will kick off later this year with a possible speculative office building.
“Additional new to market industrial projects for Balfour Beatty includes a process facility in the East Valley,” she says. “Whereas the West Valley seems to be the speculative king, the East Valley seems to have captured the hearts and commitments of the end users.”
From Sundt Construction’s perspective, speculative development is still not something it is seeing a lot of in the office sector.
“We have, however, seen good activity in the private office market, including projects related to tenant improvements, renovations, and build-to-suits,” says Ian McDowell, pre-construction manager Southwest District.
“We recently completed tenant improvements for Allstate Insurance and in the Fountainhead Corporate Park as well as a renovation at the Arizona Public Service Deer Valley campus,” McDowell says.
Sundt also has secured three additional office projects in the past three months: a renovation for a public utility company, a tenant improvement for a private company, and a new build on an existing campus for a private client. Total value of these projects approaches $90M, McDowell says. Jobs for Sundt’s office clients comprise nearly 40% of its new work this year and McDowell says the company expects that trend continuing into 2014.
“We have also seen a big uptick in developer activity in the office market,” McDowell says. “Many of the developers we are working with are seeking key anchor tenants which will be the catalyst to kick off some very attractive office projects in the next year. We believe private developers are among our best business prospects and plan to closely monitor that market for opportunities.”
When it comes to office projects in the Valley, DPR Construction is keeping busy. Tenant improvement clients include Willis North America, Digital Realty Trust, eBay, Morgan Stanley & Co., and Alliance Project Advisors.
“I feel we (the Valley) are returning from the recession a little better than other areas,” says Michael Rauschenberger, commercial office leader for DPR. “What’s happening now is office space is getting gobbled up by larger tenants. There are more and larger users coming to town. They are looking for 100,000 SF to 150,000 SF in a building, or in a couple of buildings.
“It may be 6 to 8 months before settling on a building and then it’s not what they want. Then it’s a TI, and they end up on two floors. Trying to find Class A office space on contiguous floors is getting harder and harder.”
What’s fueling the office trend? Phoenix is the third fastest growing city in the U.S. coming out of the recession. California is facing tax issues. Lease and rental rates are low. Deals are getting made. And has a pretty stable economy.
Rauschenberger predicts there will be more product on the market in the next year to year and a half. He also says there is an increased demand for renovated and repurposed buildings in Metro Phoenix. And DPR has perhaps the best example of this: its award-winning headquarters at 222 N. 44th St. in Phoenix.
According to industry experts, sustainable features are consistently and steadily being requested by businesses seeking space in existing renovated, repurposed and updated buildings. Tenants, apparently, are willing to pay for sustainable features. As a key player in corporate office renovations and repurposing, DPR is leading the charge with its LEED Platinum office which was recently certified as the world’s largest Net-Zero Energy Building (NZEB) by the International Living Future Institute (ILFI) through its Living Building Challenge (SM) program.
“Our office is a living, breathing lab, and a showcase for sustainability,” says Rauschenberger, who adds DPR conducts four to five HQ tours a week. “Whether it’s a TI or ground up, users are incorporating more and more sustainable features. Some of these companies have a sense of pride and care about the people that work there.
“People should like to come to work,” he says, “and we’re seeing that more and more. It’s amazing to see how these new projects are starting to embrace a change in office design.”

RED Awards 2012 - OASIS Hospital

RED Awards 2012: Special Merit Award, OASIS Hospital

On March 1, AZRE hosted the 7th Annual RED Awards reception at the Arizona Biltmore in Phoenix to recognize the most notable commercial real estate projects of 2011 and the construction teams involved. AZRE held an open call for nominations and a record 116 projects were submitted by architects, contractors, developers and brokerage firms in Arizona. This year, the winner for Special Merit Award was OASIS Hospital.

Special Merit Award

OASIS Hospital

Developer: Clarius Partners, LLC
Contractor: JE Dunn Construction Company
Architect: Ascension Group
Size: 94,000 SF
Location: 750 N. 40th St., Phoenix
Completed: April, 2011

Oasis HospitalOASIS Hospital specializes in orthopedics and spinal care while offering patients and employees state-of-the-art technologies and comfortable recovery rooms. The introduction of Skylight is a secure, interactive Web-based computer system that is specialized for each patient’s procedure and recovery process. Other amenities include Image Stream that produces advanced healthcare technologies and operating rooms designated for orthopedic and spine procedures. ‘Laminar Flow’ is a feature that generates a low-velocity air blanket to ensure a sterile operating room. Each of the 64 patient rooms is equipped with movie entertainment and 24-hour care from the hospital staff.


Video by Cory Bergquist

RED Awards 2012 Winners & Finalists

AZRE Magazine March/April 2012

Cigna Medical Group

Cigna Medical Group: New Phoenix Facility

Rising from the site of a demolished building in Central Phoenix is CIGNA Medical Group’s new facility, which officially broke ground in late 2011 at 3003 N. 3rd St. and within a five-mile radius of five major hospitals.

The new medical office building will replace CIGNA’s Clyde Wright Center, which opened in 1982. CIGNA Medical Group has 23 additional medical offices, three in Urgent Care Centers and two others with CMG CareToday convenience care clinics.

The new facility is a three-story, 93,500 SF building. Its central location makes is easily accessible to Downtown Phoenix, SkyHarbor International Airport, the light rail system and Phoenix’s major freeways. The location was chosen so that it is most convenient for CIGNA Medical Group customers.

At the groundbreaking ceremony, Edward Kim, president and general manager of CIGNA Medical Group, spoke about the project and its emphasis on sustainability measures. These measures may qualify it for LEED Silver or Gold certification by the U.S. Green Building Council.

Former Phoenix Mayor Phil Gordon also spoke at the ceremony and welcomed CIGNA to the neighborhood. The facility was built on land that has been idle since 2009 and was covered with debris. With the help of both Mayor Gordon and Councilman Tom Simplot, Clarius Partners LLC acquired the land out of bankruptcy in August 2011 and immediately began work.

Orcutt|Winslow is providing the design services; Kimley-Horn is providing the civil engineering design for the new development; and Layton Construction is the project’s general contractor.

The facility’s scheduled completion is set for 4Q 2012.

For more information regarding Clarius Partners, LLC, please visit www.clariuspartners.com.