Tag Archives: cushman wakefield

566 E. German

Cushman & Wakefield negotiates 5 SE Valley deals

Identifying prime distribution space in the Southeast Valley, the Cushman & Wakefield of Arizona leasing team of Jackie Orcutt,  John Grady, and Mackenzie Ford recently closed five tenant representation deals totaling 76,734 square feet.

The leases range in size from 3,744 SF to 26,023 SF across the Southeast Valley.

“It has become increasingly difficult to find space with ample clear height and dock-high loading south of the US-60 in the Southeast Valley,” said John Grady, a Director in the Industrial Properties Group.

 

The Southeast Valley tenants:

>> MyCom, long-term lease at 315 S. Bracken Lane, Chandler;

>> Executive Management Services, long-term lease at 607 S. 48th St., Tempe;

>> SolarCity, long-term leases at 566 E. German Rd., Gilbert; and 7931 E. Pecos Rd., Mesa;

>> Clean Energy Constructors, long-term lease at 1888 E. Broadway Rd., Tempe.

 

“We are excited to see an increase in pure industrial activity in the Southeast Valley,” said Orcutt, Market Leader | Investor Services with Cushman & Wakefield of Arizona.  “New speculative construction from industrial developers such as EastGroup Properties, Trammel Crow, and Turner Construction is timely as demand continues to strengthen east of the I-10 and south of the US-60.”

According to Cushman & Wakefield research, the Southeast Valley has delivered 109,540 SF of speculative development in 2014.  There are plans for an additional 265,000 SF of speculative industrial product to be delivered to the market in the coming 12 months.

 

Mill & Rio Salado Rendering, DWC

Hayden House Tempe plans $200M mixed-use project

Cassidy Turley has announced that Hayden House Tempe, LLC, a partnership between San Diego-based Douglas Wilson Companies (Douglas Wilson, Chairman and CEO), Hensel Phelps Development LLC, a subsidiary of Hensel Phelps based in Greeley, CO, (Jeff Wenaas, President) and Los Angeles-based Karlin Real Estate closed on 2.51 acres at the southwest corner Mill Avenue and Rio Salado Parkway in Tempe for $16,875,000. Karlin Real Estate also provided the debt in this transaction. The site is home to Hayden House, the oldest continuously occupied structure in Metropolitan Phoenix and Arizona, built 1871-1873.

Cassidy Turley Executive Managing Director Brent Moser, Vice President Mike Sutton and Associate Brooks Griffith negotiated the transaction on behalf of the seller, Michael Monti’s Catering.

The partnership, Hayden House Tempe, LLC plan to develop Mill & Rio Salado, a $200 million mixed-use creative office and lifestyle-hotel development located on the 2.51 acre parcel widely considered to be the gateway to Tempe’s downtown core. This landmark project consists of a two towers: a 15-story 280,000 square foot Class A office building and a 16-story 274-key Kimpton hotel along with 17,000 square feet of complimentary restaurants and retail.

Historic Hayden House

Historic Hayden House

“Tempe is experiencing tremendous investment and revitalization. This environment combined with the Partnership’s ability to deliver a high-quality, urban mixed-use development will ensure this is a landmark project for downtown Tempe,” stated Douglas Wilson, Chairman/CEO of Douglas Wilson Companies.

Hensel Phelps has been selected as the contractor for Mill & Rio Salado. Construction is expected to start in mid-2015 with completion in 2017. Jerry Noble, Patrick Devine and Greg Mayer with Cushman & Wakefield have been awarded the leasing assignment for the office space at Mill & Rio Salado.

The historic Hayden House, one of Arizona’s original homesteads, will be preserved and repurposed as a destination restaurant to serve the Valley and the surrounding office and hotel guests. The building evolved from a typical Sonoran row house that was Charles Hayden’s family home until 1889, to a boarding house and eventually a restaurant that has been operating continuously in the building since 1924.

Carl Hayden, an Arizona Representative and Senator, was born in the home in 1877. Historians have labeled Carl Hayden “the most important person in Arizona history.” Leonard Monti purchased the property in 1954, and the restaurant, at the time known as La Casa Vieja, was renamed Monti’s La Casa Vieja. The restaurant underwent several additions to the original historic structure.

“The sale and subsequent development of the Mill & Rio Salado site is symbolic of the Tempe transformation into a destination for both corporate and high-tech companies as well as a vibrant lifestyle and entertainment district,” said Mr. Moser with Cassidy Turley.

North Tempe has emerged as one of the most desirable submarkets in the Valley.  It boasts the lowest vacancy rates in Metro Phoenix, with a Class A Vacancy rate under 5%.  It is home to several large office users in multiple industries.  Real estate leaders cite access to ASU, Light rail, freeways, walk able amenities, and true Class A office space as the leading reasons Tempe is experiencing such dynamic attention from office tenants.

The Mill & Rio Salado site is located less than a block from Phoenix’s acclaimed light rail system, across the street from Tempe Beach Park and Tempe Town Lake.  The development will compliment the core of over 3 million square feet of Class A office in Downtown Tempe that has become a magnet for the technology industry due to its central location within the Phoenix Valley and its close proximity to Phoenix Sky Harbor Airport and Arizona State University.

Denver-based Shear Adkins Rockmore Architects (SARA) and historic preservation specialist Nore Winter of Boulder, Co. have been chosen as designers and architects on the project. Both have worked with DWC previously on other projects, including the Symphony Towers in San Diego that also had a historic preservation aspect to the property.

“Because of Hayden House and the requirements with the historic preservation, both SARA and Winter have been working with DWC and their partners as their input was important to putting the sale together and getting all city/municipal approvals,” says a Cassidy Turley spokeswoman.

605 E. Grant, Tuft and Needle, CushWake, WEB

Tuft & Needle relocates to Phoenix’s warehouse district

Tuft & Needle, a startup mattress company, is relocating its headquarters to the Levine Machine Building in Downtown Phoenix’s warehouse district.

Cushman & Wakefield of Arizona, Inc. negotiated a 5-year lease as Tuft & Needle relocates from Tempe to a 5,100-square foot facility at 605 E. Grant St.

Tuft & Needle designs and manufactures a line of mattress that is exclusively available online and ships right to the door of the customer. According to Entrepreneur magazine, Tuft & Needle’s mattresses are the top-rated product in Amazon’s furniture category. The company was co-founded by John-Thomas Marino and Daehee Park, who formerly worked together at a Silicon Valley software startup.

“We really enjoyed working with Daehee and JT on this assignment,” Ryan Bartos said. “It is always fun to watch a startup begin to scale, and we’re happy to be a part of that growth. They’re doing great things and we can’t wait to see what’s next for Tuft & Needle.”

Bartos and Matt Coxhead of Cushman & Wakefield represented Tuft & Needle in the lease transaction. The landlord, Michael Levine, was self-represented.

“As a Phoenix-based startup, we’re excited to partner with people like Ryan Bartos, Matt Coxhead and Michael Levine who share a genuine passion and vision for local entrepreneurship.” Daehee said. “The Levine Machine is an amazing building with a lot of history and character where we’ll continue building the best mattress company in the world.”

Centrica, Courtesy of Cushman & Wakefield

Phoenix Rising Investments starts Centrica redevelopment in Mesa

Phoenix Rising Investments, LLC has begun redevelopment on Centrica, an up to 140KSF, class-A office building at 1550 W. Southern Ave.

The adaptive re-use project located near the US 60/Loop 101 interchange in the Southeast Valley will turn three former big-box retail stores into an ideal location for companies seeking modern office space that offers abundant parking (7:1000) and a direct fiber optic backbone connection.

“We are excited to break ground on Centrica,” said Mike Hsiung, Managing Member of Phoenix Rising Investments. “Centrica is one of the few office properties in all of Metro Phoenix with the ability to offer more than 100,000 square feet of contiguous space.

“With nearly 110,000 students within 10 minutes of Centrica and more than 3 million square feet of restaurant and retail amenities within walking distance, we believe Centrica is the ideal property for any company,” Hsiung said.

Handling the leasing assignment is the Cushman & Wakefield of Arizona team of Director Matt Coxhead and Associate Director Ryan Bartos. Willmeng Construction is the general contractor and Nelsen Partners is the architect.

With demolition already underway, ’s redevelopment includes the retail pads formerly occupied by Bed, Bad & Beyond; Toys ‘R Us; and Circuit City.

“This is such a unique project for the market,” Bartos said. “Twenty-three-foot-high exposed ceilings, wide open floor plate, and access to an outstanding talent base make Centrica a highly desirable location for users.”

Mesa officials said they have been hoping to revitalize the Fiesta District, and Centrica is one of a few catalyst projects that would create additional momentum for attracting high-tech companies to that part of the city. Already in place is an infrastructure that features high-speed fiber optics.

Other amenities:

>> Employers within close proximity such as Esurance, Boeing, Banner Health and SRP;

>> Mesa Community College, one of the nation’s largest community colleges with an enrollment exceeding 25,000 students, sits directly across Southern Avenue from Centrica;

>> More than 3 million square feet of restaurant and retail amenities within walking distance to Centrica;

>> Less than half a mile from the Loop 101 corridor, US 60 and Metro Phoenix;

>> Two bus stops within 50 feet of Centrica that serve seven bus lines and a new Metro light rail station currently under construction within one mile of Centrica.

“Mike and his team are great to work with,” Coxhead said. “They have a unique sense of design and are extremely creative. We are excited for the project to get started.”

 

Mackenzie Ford promoted to associate at Cushman & Wakefield

Mackenzie Ford, Cushman & Wakefield

Mackenzie Ford, Cushman & Wakefield

Mackenzie Ford was promoted to associate with the Industrial Properties Group at Cushman & Wakefield of Arizona, Inc.

Prior to her promotion, Ford was Senior Brokerage Coordinator with the Industrial Group, working with brokers Jackie Orcutt, John Grady and Keri Scott. Ford joined the team of Orcutt-Grady in 2012 following two years as an analyst for Stream Realty Partners in Dallas.

“Mackenzie brings a great deal of professionalism and work ethic to her brokerage practice.   She has a natural drive and a strong understanding of the local market that will no doubt make her an incredible industrial broker,” said Orcutt, Market Leader | Corporate Occupier & Investor Services at Cushman & Wakefield.

Ford is a graduate of Arizona State University.  She is a member of the Urban Land Institute, 4Word, and Salvation Army Echelon.

Barbi Reuter named COO of C&W | PICOR

Barbi Reuter, PICOR

Barbi Reuter, PICOR

At its September Shareholder meeting, Cushman & Wakefield | PICOR named Barbi Reuter its Chief Operating Officer (COO), formalizing her work over the past several years.

Reuter has been with C&W | PICOR since its inception in 1985, a Shareholder since 1992, and has been an integral and critical part of the success enjoyed by the Tucson-based commercial real estate services firm throughout its growth in community market share and leadership.

As COO, Reuter leads the internal finances and operations of C&W | PICOR in addition to her externally-facing roles as the firm’s interface with Cushman & Wakefield, Inc., community and industry outreach, marketing business development, and social media.

President and CEO, Mike Hammond says, “Barbi has met and exceeded all expectations over the last 29 years and will no doubt continue to contribute greatly to the success of C&W | PICOR in this role.” Rob Glaser, CCIM, SIOR, says of his long-time C&W | PICOR colleague, I have worked with Barbi since C&W | PICOR was founded in 1985. She is very skilled, creative, and caring, and we are very fortunate to have her.”

Named a 2012 Woman of Influence by Inside Tucson Business, Reuter is a past local and national leader for BOMA International and is now active with the Tucson Metro Chamber, CREW Network, Women Presidents’ Organization, Greater Tucson Leadership, Arizona Town Hall, International Council of Shopping Centers (ICSC), Tucson’s Leading Women, PICOR Charitable Foundation, and is Board President for Tucson Girl Chorus and a Tucson CREW board member and Past President.

1888 E Broadway 1, CushWake, WEB

Clean Energy Contractors outgrows its Tempe location

Cushman & Wakefield of Arizona, Inc. negotiated a lease for Clean Energy Contractors, relocating the electrical contracting company to 1888 E. Broadway Rd.

The company leased a 26,023-square-foot space, bringing the property to full occupancy. Clean Energy Contractors took possession of the space this week, relocating from 1856 E. 6th St. in Tempe.

John Grady, Jackie Orcutt and Mackenzie Ford of Cushman & Wakefield’s industrial division represented Clean Energy Contractors in the lease negotiations.

“As a sign of a strengthening economy, it s positive to see companies expanding quickly,” Grady said. “The tenant outgrew its former space within nine months. This property was one of the few remaining in Tempe that offered an available yard suitable for Clean Energy Contractors’ needs.”

Rick Foss and Isy Sonabend of NAI Horizon represented the landlord, Tempe Partnership.

 

Scottsdale Executive Office Center, Courtesy of Cushman & Wakefield of Arizona

Scottsdale Executive Office Center signs new tenants

Cushman & Wakefield of Arizona, Inc. negotiated 21,085 square feet of new leases at Scottsdale Executive Office Center, 15880, 15990 and 16100 N. Greenway-Hayden Loop.

Ingram Micro, Inc., a Santa Ana, Calif.-based firm, opened a technology incoming call center and occupies 14,926 SF. PHX Architecture relocated from a central Scottsdale location into 6,159 SF.

“The Scottsdale Executive Office Center meets the needs of tenants who require dense floor plans with 5.77:1000 ratio parking to go with it,” said Chris Nord, Associate Director with Cushman & Wakefield of Arizona, Inc.  “The bay depths allow for efficient floor plans and a 1 percent load factor keeps the required size of the premises smaller than competing office properties.”

Nord and Michael White of Cushman &Wakefield represented the landlord, Perry Investment Trust No. 1. Mark Seale of Cassidy Turley represented Ingram Micro. Victor Gilgan and Scott Fey of Omni America, LLC represented PHX Architecture.

Both tenants took occupancy this month, bringing the property to 87 percent leased. Other tenants include Trivita, Stella & Dot, MWA Intelligence, and Landmark Education.

Cresa Phoenix

Elontec leases 28KSF in Phoenix

Cresa Phoenix announced Tuesday that it completed a 28,231 square foot lease for Elontec, LLC at Freeport Industrial Center, 5502 W. Buckeye Rd., in Phoenix.

Cresa Phoenix Vice President Ted Liles negotiated on behalf of the tenant, Elontec, LLC, an award winning, female owned furniture, relocation and cabling company. The landlord, BC 5 Buckeye LLC, was represented by Justin LeMaster and Mike Gilbert of Cushman & Wakefield.

“The retail exposure and increased operational efficiencies at Freeport Industrial Center will accommodate Elontec’s growth for the foreseeable future,” said Liles.

Elontec, LLC provides office furniture, installation and space design, as well as commercial relocation and cabling services. The tenant will be combining two locations into the class a distribution facility that will serve as the their new headquarters.

Cody Kollmann joins Cushman & Wakefield

Cody Kollmann, Cushman & Wakefield

Cody Kollmann, Cushman & Wakefield

Cody Kollmann has joined Cushman & Wakefield of Arizona, Inc. as an Associate in the Office Division of the Tenant Representation Group.

Kollmann, formerly an intern at Cushman & Wakefield this past summer, will be working with Senior Director Jay Hoselton and Senior Associate Chris Nord.  His intern experience included market research, updating tenant information, and working with the office and industrial teams.

Kollmann graduated from St. Gregory’s University in Shawnee, Okla., where he earned a Bachelor of Science degree in Business Administration. He also played two years of collegiate baseball at St. Gregory’s. He is a member of NAIOP and earned his Arizona real estate license in 2013.

Bob Kline joins Cushman & Wakefield capital markets group

Bob Kline, Cushman & Wakefield

Bob Kline, Cushman & Wakefield

Signaling a move to expand its Capital Markets platform, Cushman & Wakefield has added a capital markets and commercial real estate veteran to its leadership roster. Bob Kline of RW Kline Companies has joined the firm as Senior Managing Director of the Equity, Debt and Structured Finance Group (EDSF).

Kline was previously CEO of the No. 1 CMBS debt restructuring firm in the world and the leader of the equity/debt advisory team at RW Kline Capital, LLC.

With Cushman & Wakefield, Kline will spearhead a specialized national CMBS advisory practice focused on CMBS debt maturities, assumptions, restructurings and rescue capital. Blending his existing advisory team with C&W’s Capital Markets team, Kline will create the largest CMBS debt restructuring practice in North America. Additionally he will represent Equity, Debt, and Structured Finance clients with a primary focus on the West. He will work closely with the Phoenix, Los Angeles and Dallas offices, and will also assist in other regions where he has been active.

“Bob’s expertise in the analysis, planning and execution of equity, debt, restructuring and structured finance transactions is among the most impressive in our industry,” said Jim Underhill, CEO of the Americas for Cushman & Wakefield. “He brings strong client relationships and an outstanding track record of high-profile transactions in many of the top markets in the Americas, Europe and Asia. We look forward to the important role he’ll play in our EDSF group, including developing Cushman & Wakefield’s national CMBS advisory practice and assisting our loan sales platform group led by John Howley.”

Jay Quinn also joins Cushman & Wakefield as Managing Director – Capital Markets Equity, Debt, and Structured Finance Group. Quinn has more than 30 years of experience focused on commercial real estate debt and equity, diversified investments, portfolio management and structured finance. He was previously with RW Kline Capital, LLC.

“As a recognized commercial real estate leader and a top producer, Bob provides a breadth of experience and global coverage that will add tremendous value as we continue to strengthen our Capital Markets equity, debt and structured finance platform,” said Steven Kohn, President of the EDSF group.

As CEO of RW Kline Companies, Kline operated five vertical operations with 60 associates and 11 offices. He has facilitated more than 600 note sales, acquisitions and more than $8.7 billion in restructurings.  He and his Capital Markets team at RW Kline Capital placed more than $3.1 billion in capital in the commercial real estate markets in the past 18 months.

“Cushman & Wakefield has an excellent culture of collaboration and is recognized for both its strong brand and the talent of its Capital Markets professionals,” Kline said. “I’m very pleased to join Cushman & Wakefield and I look forward to expanding our practices. I see great opportunity in leading the firm’s specialized CMBS restructuring/turnaround practice while contributing to the growth of the overall Capital Markets business.”

Briarwood Apartments

126-unit Briarwood Apartments sell for $4.05M

Cushman & Wakefield of Arizona, Inc. negotiated the $4.05 million sale of the Briarwood Apartments, a multi-family property located at 3450 W. Missouri Ave., in Phoenix.

Briarwood was built in 1983 and contains seven buildings and 126 units. The property was 90 percent occupied at the time of the sale.

Edward Sibley of Phoenix sold the property to David Barnes of Vancouver, B.C., Canada.  The sale price brought $32,143 per unit, which equates to $59 per square foot.

“Briarwood should benefit from the expansion taking place at Grand Canyon University,” said Brett Polachek. “The buyer plans to spend additional capital upgrading both the interior and the exterior of the property.”

Polachek and Jim Crews of Cushman & Wakefield represented the buyer in the transaction.

 

ML-Daytime-Testing_10_10_2013-(4)

Reconnecting Tucson

While Phoenix is in the throes of commercial recovery, Tucson is, comparably, about 18 to 24 months behind. The city’s proximity to the border is touted as a draw for investors, but the player with the best hand remains the University of Arizona (UA), which is not only the largest employer in southern Arizona but also the nucleus to an otherwise stagnant city.

As development stands, experts point out Tucson has added 1,900 student housing units in the last year and the retail and office sectors in proximity to UA and Pima Community College show promise. In April, Colliers closed the largest office sale in Tucson since 2008.

“Multifamily has led the recovery in almost all markets,” says Cindy Cooke, who heads the Cooke Multifamily Investment Team at Colliers. “Since so much of Tucson is UA and the medical school, I think you only see that continue to be strong. The growth will be fantastic.” The first sign in recovery, she says, is when vacancy increases. Right now, Tucson’s multifamily vacancy is at 7.9 percent. In 2009, it exceeded 11 percent.

The UA is working to spin its innovation to the private sector and create small firms offering high-paying jobs in many areas of core competency, says President and Managing Shareholder of Cushman & Wakefield | PICOR, Mike Hammond. “The UA more than ever drives our community in a positive direction,” he says.

Kurt Wadington, Sundt Construction’s Tucson building group leader agrees. He adds that “apart from downtown and other isolated projects, Tucson’s market continues its softness in the shadow of a very slow economic recovery.”

Tucson’s streetcar project, Sun Link, aims to strengthen those existing assets and ignite future development. “With the recent infusion of student housing and corporate offices, downtown has become a desirable location for restaurants and bars as more people live and work in the area,” says Wadington. “This increased day and nighttime activity, that is expected to increase when Tucson’s new streetcar becomes operational on July 25, has numerous developers considering additional retail, office and housing projects.”

Though pens are to drawing boards, and the Sun Link has generated a “flurry of land sales,” there is some hesitation in development. Cushman & Wakefield | PICOR called Tucson a market in search of demand in its Q1 2014 reports. “One-liners are always a little true and at the same time false,” says Hammond. “Tucson says it wants good jobs but it acts differently when they appear.

Tucsonans tend to like the environment and object to nearly any attempt to develop on the land. This depresses demand as the process to develop anything is cumbersome and expensive with very little certainty of success, so we grow slower and some would say that is good. The right balance is tough to achieve.

“As government indebtedness drops, it is anticipated Pima County, followed by other jurisdictions, will pursue bonding authorizations for badly needed capital projects. Other needs may be met through public-private partnerships as public infrastructure needs continue to mount.”

UA is closely followed by Raytheon Missile Systems, Davis-Monthan Air Force Base and the State of Arizona as top employers. Simply, southern Arizona relies on government funding.“I think the big rock the southern Arizona market is waiting for is some resolution at the national level on debt and how government goes forward at the federal spending level,” says Hammond.

“Much of our area is dependent of spending at the federal level and that has been decreasing, whether for infrastructure, military in general — the A10 fighter specifically — and Raytheon. No one expects funding to increase in these areas and these are very good jobs that bring new money into the area. The multiplier effect is real in the creation of jobs or the loss of jobs as the case may be.”

Jerry Noble and Jackie Orcutt

Noble, Orcutt named market leaders for Cushman & Wakefield

Cushman & Wakefield Inc. has named Jerry Noble and Jackie Orcutt as Market Leaders of its Arizona operations in Phoenix. Noble and Orcutt have previously served as leading commercial real estate professionals for C&W in Phoenix.

“We could not be more pleased with our decision to entrust our Phoenix operations to Jerry and Jackie,” says Joe Cook, chief operating officer, US Markets for Cushman & Wakefield. “They each possess extensive knowledge of the local market and have demonstrated the highest degree of professionalism within the industry.  Their commitment to the success of Cushman & Wakefield in Arizona positions our company for dynamic growth in the market as we align and expand our services around our Investor and Occupier clients.”

Noble, market leader and managing broker, is a recognized leader in office properties brokerage with more than 17 years experience in the Phoenix market. He joined Cushman & Wakefield in 2013 after having served as First Vice President at CBRE and as Vice President with Trammell Crow Company. Recognized as one of the city’s leading office properties experts, Noble has experience with sales, leasing, valuation, and buyer representation. He is a board member of the Arizona SIOR Chapter, and is a member of local NAIOP and CCIM Chapters. In his new capacity, Noble will manage the brokerage divisions of Cushman & Wakefield of Arizona.

Jackie Orcutt, market leader, investor services, one of Cushman & Wakefield’s leading industrial properties specialists, worked at CBRE for five years before joining the company in 2011.  The company recognized her nationally in 2013 with receipt of the Rising Star award. She has been named as one of the “40 under 40” most influential people in commercial real estate, and recognized as one of the 20 most influential women in the industry. During her career, Jackie has represented leading owners of institutional industrial product in sales and leasing transactions. Orcutt is a board member of AZCREW, serves in leadership for NAIOP and has worked on the ULI Partnership Forum. In her new capacity, Orcutt will manage the company’s property management division and have responsibility for integrating and delivering management, agency leasing, and capital markets services to property owners and investors.

Noble and Orcutt will continue their work in office properties and industrial properties brokerage in addition to their management roles. The two leaders will serve as the senior management team for the company, along with recently hired director of operations, Stephanie Sandro.

5341 W. Luke, WEB

Roof Products Inc buys Phoenix manufacturing facility

Cushman & Wakefield of Arizona, Inc. negotiated the $1.45 million sale of a manufacturing facility at 5341 W. Luke Ave.

The 35,000-square-foot property was built in 1985, and sits on two acres. The property was not on the market at the time of the sale. However, when discovered, it turned out to be the ideal building for Roof Products Inc. (RPI), which is based in Chattanooga, Tenn.

RPI has been in Arizona for 13 years. The new building will serve as its Western regional headquarters. RPI is a manufacturer of roof curbs and also furnishes sky lights for its customers.

Justin LeMaster and Mike Gilbert of Cushman & Wakefield’s industrial division represented RPI.

“Due to the lack of supply of functional, freestanding buildings in the marketplace, we searched high and low to uncover the right facility for our client,” LeMaster said. “This facility gives Roof Products the ability to expand its business and its presence in the Western U.S.”

“The industrial team of Justin LeMaster and Mike Gilbert exceeded our expectations throughout the entire process,” said Robert Banicki, President of RPI. “Due to our growing business, customer demand and need for a specialized facility, we wanted to own our next building. Justin and Mike used their market knowledge and relationships in the brokerage community to identify the perfect facility for our company.”

The sale price commanded $41.50 per square foot.  Peter Batschelet of Lee & Associates represented the seller, Wynn Properties LLC.

Granite Commerce Center

Laminate company renews 16KSF lease at Granite Commerce Center

Cushman & Wakefield of Arizona, Inc. negotiated a long-term lease renewal at Granite Commerce Center, 405 N. 75th Ave., Suite 180, for a lamination distribution company.

The lease renewal of 15,988 square feet is for USI Inc. of Madison, Conn. USI  markets roll and pouch laminating machines and films, binding equipment and supplies and many other office accessories including photo ID systems and mounting and display boards.

“The Southwest Valley industrial submarket is one of the most desirable in Metro Phoenix for USI’s business,” said Keri Scott. “USI decided to continue its operations at Granite Commerce Center because of its proximity to major freeways so it can service clients in adjacent states.”

Scott, Jackie Orcutt and John Grady of Cushman & Wakefield represented the tenant, USI. Kyle Westfall of JLL represented the landlord, Crow Holdings of Dallas.

camelhead

Leading used vehicle retailer signs lease at Camelhead Square

Cushman & Wakefield of Arizona, Inc. negotiated a 14,278 square foot lease at Camelhead Square, 3033 N. 44th St., bringing the property to 80 percent capacity.

This is a new lease for DriveTime Automotive Group, Inc., the leading used vehicle retailer in the United States, providing additional office space for their expanding business.  Other tenants include Hill & Usher and Sovereign Healthcare.

“The deal involved a local company (DriveTime) in close proximity to Camelhead Square. We were able to accommodate their short-term expansion needs and fill a big block of space,” said Chris Latvaaho.

Latvaaho, Chris Nord and Michael White of Cushman &Wakefield represented the landlord, Sun Life Assurance Company of Phoenix. Tom Adelson of CBRE represented the tenant.

Luhrs, WEB

The Luhrs endures: Adaptive reuse, retail breathe life into iconic downtown building

Nestled among the steel and glass high rises in downtown Phoenix, the Luhrs Building stands as a symbol of the iconic brick-and-mortar structures that once graced the inner city.

As the City of Phoenix embraces the concept of adaptive reuse, the Luhrs Building, constructed in 1924 at a cost of $553,000, is part of this trend to repurpose existing buildings with retail or office additions.

According to the City of Phoenix website, the number of adaptive reuse projects – renovating buildings and turning them into new spaces – has increased since it started its adaptive reuse program in 2008. There were 17 projects in the first year. That number jumped to 48 in 2013.

“Historic, unique buildings are excellent prospects for adaptive reuse,” says Summer Jackson, associate director with the retail services division at Cushman & Wakefield of Arizona, the brokerage firm handling the retail leasing assignment for the Luhrs Building.

“Many restaurateurs are taking advantage of these spaces to create new concepts that cater to the demand in the area. It’s an opportunity to do something innovative – something different,” Jackson adds.

Bitter & Twisted

Bitter & Twisted

One such establishment that has taken advantage of the opportunity is the Bitter & Twisted Cocktail Parlour, 1 W. Jefferson. Owner Ross Simon says he was looking for a space with a great history and some genuine “wow factor.” A space, he says, that had a real city feel for a concept that would be at home in any major city around the world.

“Also something that could lend itself well to the cocktail-centric concept,” Simon adds.

Adaptive reuse is evident elsewhere around Phoenix. Some of the more notable examples include:
>> Culinary Dropout at the Yard, a former motorcycle dealership built in the 1950s on 7th Street;

>> Taco Guild at Old School O7, the former Bethel Methodist church on Osborn Road;

>> Southern Rail and Changing Hands bookstore at the Newtown Phx, the former Beef Eaters restaurant built in 1961 on Camelback Road;

>> Windsor and Churn, which share a restored 1940s building on Central Ave.

“Consumers are looking for an experience,” says Courtney Auther Van Loo, Associate Director with the Retail Services Division at Cushman & Wakefield. “While maintaining historical architecture styles and a building’s unique iconography, developers and tenants have created one-of-a-kind experiences and breathed new life into these landmarks. This style of reuse combines a contemporary feel with a touch of the classic.”

When he was selecting a site, Simon says he wasn’t necessarily looking for a space in an adaptive reuse project. “But after I revisited the space and thought about the layout a bit more to know it would work, I was sold on it,” he says.

Bitter & Twisted, as well as Subway sandwich shop have become retail tenants at the Luhrs Building.

“I had a real idea of what I wanted the overall place to look and feel like from an operational standpoint and from a guest experience point of view,” says Simon, who adds that Bar Napkins Production worked on the initial layout and all the architectural plans. Southwest Architectural Builders was the general contractor.

As the light rail whizzes by the Luhrs Building on Jefferson, it’s evident a sense of “newness” is also being felt downtown. An $80 million, 19-story hotel – the 320-room Luhrs City Center Marriott – breaks ground later this year at the northwest corner of Madison Street and Central Avenue.

The project is being developed by the Hansji Corporation of Anaheim, Calif. It’s the same family-owned company that purchased the “Luhrs Block” in 2007.  For the past 38 years, Hansji Corp. has developed more than 2MSF of office, retail and hotel space.

“It (the Luhrs Block, which also includes the Luhrs Tower) was really our first historical building,” says company President Rajan Hansji. “We knew it was something special. You can’t recreate this. It’s history. It gave me a new appreciation (for historical properties).”

Hansji says he is pleased with the outcome of Bitter & Twisted and its historical feel, including exposed original walls and beams.

“That corner is going to define the block,” Hansji says. “It (Bitter & Twisted) will be the catalyst for the rest of the block. It’s an amazing and unique space. The hotel’s exterior will utilize different brick colors and utilize the Luhrs’ history.”

Craig Schrader joins Cushman & Wakefield

Craig Schrader, Cushman & Wakefield

Craig Schrader, Cushman & Wakefield

Craig Schrader has joined Cushman & Wakefield of Arizona, Inc. as a Project Manager in Corporate Occupier & Investor Services (CIS).

Schrader will be responsible for business development and project management, working with the Property Management team. He will also work in support of Cushman & Wakefield’s brokerage teams. Schrader joins the Phoenix office after spending three years with Cushman & Wakefield in San Francisco.

“I am very excited to add Craig to my team,” said C&W Senior Project Manager Sam Womer. “He brings a wealth of knowledge and experience that will be of great benefit in the growth of the Phoenix market.”

While with Cushman & Wakefield in San Francisco, Schrader worked on the Pacific Gas and Electric corporate account as project manager focusing on a wide range of commercial projects, including their regional corporate offices. Prior to joining C&W, Schrader provided project management services for both Opus West Sacramento, concentrating on industrial, logistics and distribution facilities; and SD Deacon, where he was responsible for the oversight of a variety of big box retail projects including Target and Best Buy.

Schrader received a Bachelor of Science degree from Arizona State University’s Del Webb School of Construction Management. He then earned a Masters degree from ASU’s Master of Real Estate Development (MRED) program.

Jabil Circuit, CushWake, WEB

Former Jabil warehouse sells for $11.4M

Cushman & Wakefield of Arizona, Inc. negotiated the $11.4 million sale of a former electronics manufacturing/warehouse building at 615 S. River Dr.

The 193,000-square-foot property was built in 1982, expanded in 1994 and expanded again in 1997. It includes 176,000 square feet of fully air-conditioned manufacturing and warehouse space and 17,000 square feet of office space. It sits on 16.5 acres with direct frontage on the Loop 101 and close proximity to the Scottsdale and Chandler submarkets.

“EverWest Real Estate Partners and CarVal Investors will reposition the property as creative office space and will fill the void felt by the many tech-related users in the market seeking modern, collaborative office environments with above-standard parking,” said Chad Littell.

“We are excited about the opportunity this building will bring to the market. Upon completion of the renovations, the property will offer high-tech creative office space with a 7:1 parking ratio in a thriving and high-demand large user market,” said Curt Kremer, Managing Director  – Acquisitions with EverWest Real Estate Partners.

Littell, Chris Toci, Jackie Orcutt and John Grady of Cushman & Wakefield of Arizona collaborated with John Boyd of Signature Associates in Michigan, a Cushman & Wakefield affiliate, and Tim Callahan of Cushman & Wakefield Florida, to represent Jabil.  The buyers are EverWest Real Estate Partners and CarVal Investors.  Jerry Noble, Ryan Bartos and Orcutt of Cushman & Wakefield will be retained to handle the leasing.

St. Petersburg, Fla.-based Jabil announced it would close the facility last September. Jabil moved into the building in 2005 when it took over an electronics manufacturing business.

Colonade Apartments, WEB

Colonnade Apartments sell for $25.5M

Cushman & Wakefield of Arizona’s Multifamily Advisory Group recently negotiated the $25.5 million sale of The Colonnade Apartments, a 415-unit multifamily property located at 1930 E. Camelback Road.

Built in 1968/1973, The Colonnade is an urban, garden-style apartment community located in the heart of the Camelback Corridor, providing a live-work-play experience for residents. The property is 257,648 square feet with 27 buildings and features well-designed, desirable studio, one- and two-bedroom floor plans.

The property benefits from drive-by exposure on Camelback Road with ease of access to the SR-51 and close proximity to the high-end office complexes at 24th Street and Camelback Road.  It is also within one-half mile of the Biltmore Fashion Park and the Biltmore Resort and Golf Course.

“This urban in-fill location with frontage on Camelback Road really got the attention of the investment community,” said Jim Crews. “We had significant interest from numerous groups with varying business plans that includes rehab/value add and redevelopment.”

Gelt Inc. of Tarzana, Calif., sold the property to MCS Capital Partners of Phoenix. The sale price brought $61,446 per unit, which equates to $98.97 per square foot, and was 94 percent occupied at the time of the sale.

Crews and Brett Polachek of Cushman & Wakefield, both Senior Directors, represented the seller in the transaction.

Paul Sweetland joins Cushman & Wakefield

Paul SweetlandPaul Sweetland has been named Senior Director in the Industrial Properties Division of Cushman & Wakefield of Arizona, Inc.

Sweetland leases and sells industrial properties with a specialization in freestanding owner/user buildings and multi-tenant developments. Clients served by Sweetland include Western Refining, Harsch Investment Properties, Westcore Properties, Washington Federal, MDI Capital, Panattoni Development, Equity Building Services, City National Bank and GE Capital.

Sweetland brings to Cushman & Wakefield more than 16 years of experience in the industrial real estate market.  He spent 13 years practicing in the Las Vegas market and has worked in the Metro Phoenix area for the past three years.

“We are thrilled to have Paul join us as we continue to grow our industrial presence in the greater Phoenix market,” commented Joe Cook, C&W’s COO, U.S. Markets.

Sweetland holds the designation of Society of Industrial and Office Realtors (SIOR). He earned real estate licenses from both the Arizona School of Real Estate and Business and the Nevada School of Real Estate and Business.

3401 W Papago - BBK, CushWake, WEB

Cushman & Wakefield: Phoenix industrial market hits healthy equilibrium

The Metro Phoenix industrial market has reached a point of healthy equilibrium with overall vacancy at 11.8 percent and steady absorption, according to a report released today by Cushman & Wakefield of Arizona, Inc.

“Transactions have become far more cooperative in this environment where landlords and tenants have reached a position of more equivalent expectations,” says Jim Wilson, executive director with Cushman & Wakefield.  “This stabilization has created an environment where neither landlord nor tenant has an advantage over the other in the marketplace.”

Following the overbuilt conditions of the recent recession, the Metro Phoenix market has steadily eroded its large vacancies with positive net absorption.  Year-to-date, approximately 1,663,750 square feet of net absorption has taken place across the valley.  The majority of that absorption took place in the area’s largest industrial submarket, Southwest Phoenix, where approximately 1,251,459 square feet of net absorption was achieved in the first half of this year.  Included in that net absorption is WinCo’s 800,000-square-foot distribution center and Living Spaces’ facility totaling 437,000 square feet.

“Trends today are for large, people-intensive operations that require substantial parking and strong amenity offerings.  Landlords that hold properties with great curb appeal, location and surrounding employee services will win the tenant every time in this market.”

Also according to Wilson, “We are not seeing many 300,000+ square foot tenants in the market.  Those sizable users help us eat up inventory quickly.  According to our experience, businesses are becoming healthier, but they are not expanding and taking on large amounts of expense.  Companies became very lean during the recession and are working to achieve as much productivity as possible while maintaining the more pared down size and expense.  Companies remain on the sidelines, hesitant to commit to increased space and overhead.”

Overall vacancy rates vary throughout the valley.  Chandler currently posts one of the highest vacancies at 18.1 percent.  This is due somewhat to the more than 2.4 million square feet of new product in that area that was completed earlier this year.  According to Wilson, the submarket is in high demand and the vacant space will be absorbed without difficulty.  Northwest Phoenix has the highest overall vacancy rate at 20.9 percent, but the submarket is relatively small, so a few leases will create a swift decline in that figure.  West Phoenix and Northeast Phoenix post the lowest vacancies with 6.2 percent and 6.6 percent.

Rental rates in the industrial market have stabilized and are beginning to rise at a steady, but limited pace.  Direct weighted average net rental rates now rest at $0.59 per square foot per month, with the Deer Valley area asking approximately $0.97 per square foot and Southwest Phoenix averaging an asking rate of $0.36 per square foot.  The differences in these rates are reflective of product type as well.  Southwest Phoenix is a hub for large box warehouse/distribution space, while Deer Valley contains more flex business park space that can be used for light storage and office uses.

As net absorption erodes the large inventory of space, some developers with deep pockets are building again.  Currently, approximately 3,040,828 square feet of new industrial space is under construction in Metro Phoenix.  Additionally, 3,946,387 square feet have already been delivered to market during 2014.  The majority of this space is located in Chandler and Southwest Phoenix.  Spectrum Ridge in Deer Valley will come online in November of this year.  In addition, American Furniture Warehouse’s 600,000-square-foot facility in the West Valley will be completed.  Of the nearly seven million square feet slated for delivery this year, more than one million of that represents build-to-suit facilities.

”Strategizing development of space is a game of significant risk,” says Wilson.  “Tenants are like consumer shoppers.  They want to enter the store and find bread on the shelf.  The lead-time to create industrial space requires developers to guess when the demand will be there.  At this point we are seeing a variety of developers assuming that 2015 and 2016 will be a time of high demand, so they have started work on new product.  If too many developers put bread in the oven at the same time, there will undoubtedly be an overabundance on the shelf and some will go stale or mold.  It is important that the development community not overbuild the market again so we can maintain the equilibrium we currently enjoy.  Fortunately, in this environment, only very strong developers with the ability to hold on to assets long-term are able to take part in the industry.

CoStar

NXP Semiconductors leases 33KSF at Chandler Midway

The ViaWest Group announced today that NXP Semiconductors has signed a 10-year lease for 32,988 SF of office space at Chandler Midway Corporate Center, 5670 W. Chandler Blvd. Built in 2007, the project is comprised of two class-A office buildings totaling 111,800 SF. ViaWest originally purchased Chandler Midway in December 2012. At the time of the acquisition the buildings were 34 percent leased and with the addition of the NXP, the project is now 75 percent leased with deal activity that could bring the project in excess of 90 percent in the very near future.

NXP relocated to Chandler Midway from another ViaWest-owned building in the ASU Research Park. “We developed a great relationship with NXP and were excited that we were able to find an opportunity within our portfolio of assets that fit NXP’s long-term needs,” said Danny Swancey of ViaWest Group. “We pride ourselves as a relationship-oriented owner who works closely with the brokerage community and tenants to facilitate smooth and fair transactions for all parties involved,” added Gary Linhart of ViaWest Group.

Located at the northeast corner of Chandler Blvd and Gila Springs, the project is centrally located between the I-10, Loop 101 and new Loop 202 Freeways and is in close proximity to Chandler Regional Hospital. Chandler Midway is within 3 miles of 3MSF of retail amenities and 15 minutes from Sky Harbor International Airport.

We’re excited to continue our relationship with ViaWest and keep our Arizona operations in the Southeast Valley.  The talent of the workforce, quality of life, and lack of extreme weather and natural disasters are all factors that we consider when selecting sites, and Chandler has all of these key ingredients,” stated Greg Stuck, Sr. Director of Global Real Estate for NXP Semiconductors.

“The Chandler area has consistently outperformed the overall Phoenix market in attracting technology-related companies and is one of the top job-creating economies in the U.S. NXP continues this trend by bringing another a great global corporate name and quality workforce to Chandler Midway,” said Cassidy’s Scott Baumgarten. These properties are surrounded by first-class amenities, high-end executive housing and the I-10, Loop 101 & 202 Freeways making them very attractive to prospective tenants. Mark Stratz added, “NXP’s move to Chandler Midway solidifies their commitment to Arizona and further ratifies the Southeast Valley as one of the nation’s premier technology corridors.”

Vice Presidents Stratz and Baumgarten of Cassidy Turley’s Phoenix office represented the landlord and are currently marketing the remaining vacancy consisting of 23,117 SF in the 5670 building, as well as, a state-of-the-art 5,066 SF spec suite prominently located on the first floor lobby of the 5710 building. Don Rodie of Cushman & Wakefield’s Phoenix office represented the Tenant.