Tag Archives: cushman wakefield

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.

Stephanie Sandro named director of operations for Cushman & Wakefield

Stephanie Sandro, Cushman & Wakefield

Stephanie Sandro, Cushman & Wakefield

Stephanie Sandro has been named Director of Operations for Cushman & Wakefield of Arizona.  A proven administrative leader in a variety of industries, Sandro will oversee the financial, administrative and human resources operations for the company in Arizona.

Sandro brings to Cushman & Wakefield more than 12 years of operational leadership, having most recently served as Director of Operations with Syn-Apps LLC of Mesa, a multi-million dollar software development company.  In addition to her expertise in the technology field, Sandro has served in the commercial finance and medical management industries.

“Stephanie’s successful track record in leading fast-paced professional organizations makes her an excellent fit for our Phoenix office,” noted Joe Cook, C&W’s COO, U.S. Markets.  “She will be instrumental in helping to drive and support C&W’s expansion of all its service lines in the market,” Cook added.

The Phoenix office of Cushman & Wakefield represents one of the company’s most dynamic and growth-oriented operations.  Cushman & Wakefield offers commercial real estate brokerage, property management, valuation advisory services, project management and tax advisory services in Phoenix and throughout Arizona.

Sandro, a resident of Chandler and native of Arizona, holds a Bachelor of Science degree from the W.P. Carey School of Business at Arizona State University.

22102162_xxl

Why more companies are coming to the Valley

When it comes to recruiting new companies to relocate, expand or begin operations in Arizona, it’s all about “getting in the game and the closing the deal.”

That was the message delivered at Valley Partnership’s June breakfast before a robust audience at the Phoenix Country Club.

Christine Mackay, Economic Development Director for the City of Chandler served as moderator. The panel featured Justin Meritt, Senior Investment Professional, Southwest Valley Partners; Auguste Goldman, Chief People Office, Go Daddy; and John Lenio, Economist and Managing Director, CBRE.

As the Arizona economy improves, Valley communities are successfully recruiting new companies to bring their business here. CBRE’s Lenio said favorable economic conditions nationally are a key: leading indicators such as the stock market are up, consumer debt is down, net worth is up, and although housing prices have increased they have also leveled off.
How is Arizona doing it?

“It’s all about jobs,” Lenio said. “Real estate is an enabler in the site selection process. In the end it’s all about getting in the game and closing the deal.”

Meritt cited the Continuum development along the Price Corridor in Chandler as a project in which several entities joined forces and talents. In her opening remarks, Mackay spoke of a “pipeline of quality developments” in Chandler. Continuum, Meritt said, fit the bill.

“It’s a quality business park in one of the top office markets in the Valley,” he said.

Goldman shared the success of local company Go Daddy and showed why “we win in Arizona. Talent, impact, culture, and quality of life.”

Goldman said Go Daddy works with instate institutions of learning including ASU, UA, NAU and Thunderbird. When it comes to company culture, the thought is to change the global economy to small business.

“It’s something we should all invest in,” Goldman said.

>> Community Project update



In lieu of the Mayor’s Minute, the Community Project Committee shared two presentations with the audience. Robyn Ratcliff, director at 2014 Community Project recipient Arizona Foundation for the Handicapped addressed the partners. She was followed by a heartwarming rendition of “Good Night Irene” by Bill, one of the clients that AFH serves. Bill received a standing ovation and moved many of the partners. This was the perfect way to introduce the sponsorship opportunities available for the 27th annual community project.
Several partners have already generously signed on to sponsor this year’s project including Norris Design, Rick Engineering, Shift Redevelopment, Small Giants and Cushman & Wakefield of Arizona.

“I received several calls and emails after the breakfast from partners who wanted to support this year’s project and enhance the quality of life for those served by AFH,” said committee co-chair Dena Jones. “I feel so fortunate to work with partners who are committed to giving back to the community and leaving a legacy.”

The 50/50 raffle included four prime tickets to a Dbacks game courtesy of CBRE. The winner donated the cash back to the community project. Another partner came forward after the raffle winner was announced and pledged his company’s Dbacks tickets for the July raffle.

Photo provided by 123RF.com

City 15 A, WEB

City 15 sells for $10.85M

Cushman & Wakefield of Arizona, Inc. negotiated the $10.85 million sale of City 15, a multi-family property located at 4728 N. 15th St.

City 15 was built in 1969 and contains 26 buildings with 161 units. The property was 96 percent occupied at the time of the sale.

Mica Creek-Sagamore Capital Partners of Phoenix sold the property to Retirement Concepts of Vancouver, B.C., Canada.  The sale price brought $67,391 per unit, which equates to $102 per square foot.

“The property attracted a lot of attention given its location,” said Brett Polachek. “City 15 has undergone interior and exterior renovations and has captured the demand for urban living.”

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

4141 N. Scottsdale Rd.

Cushman & Wakefield negotiates two leases at Scottsdale office building

Cushman & Wakefield of Arizona, Inc. negotiated leases totaling 24,486 square feet for a commercial real estate advisory firm and a medical care company at 4141 N. Scottsdale Rd.

Fresenius Medical Care of Waltham, Mass., signed a 12-year lease for 15,317 square feet. Fresenius provides dialysis treatment through a network of more than 1,800 facilities nationwide. Keyser signed a 6-year lease for 9,169 square feet. It is relocating from 1048 N. 48th St. in Phoenix.

“Both tenants saw an opportunity to plant a flag in the heart of Old Town Scottsdale,” said Chris Latvaaho. “Scottsdale continues to attract innovative companies that see the value of locating their business in what has been branded as the live-work-play that is unique to Scottsdale and not easy to replicate anywhere else in the Valley.”

The anchor tenant is Aetna Life Insurance. With the two leases, occupancy will be 89 percent.

Latvaaho and Tim Whittemore of Cushman & Wakefield represented the landlord, an entity owned by certain affiliates of Westport Capital Partners LLC. Keyser was represented by company owner Jonathan Keyser. Fresenius was represented by Pete Wentis and Jim Greene of CBRE.

Riley joins Capital Markets Group at Cushman & Wakefield

Matthew Riley has joined the Capital Markets Group at Cushman & Wakefield of Arizona, Inc. as a Retail Capital Markets Analyst.

Matthew Riley, Cushman & Wakefield of Arizona

Matthew Riley, Cushman & Wakefield of Arizona

Riley transferred to Cushman & Wakefield of Arizona from C&W’s Los Angeles office where he was an analyst in the Global Hospitality Group that specialized in sale, debt, equity and structured finance transactions for the hospitality industry.

Prior to joining C&W in 2013, Riley held various roles in real estate acquisition, finance and research primarily with San Diego-based Pacifca Companies. There Riley specialized in the financial analysis and cash flow projections for a $2.5 billion portfolio of real estate assets. He also participated in the underwriting and placement of more than $270 million of debt for new acquisitions and the refinancing of existing loans.

His new focus will be working with Greg Valladao in the underwriting and dispositions of retail assets throughout the Southwest.

“I am very excited to be continuing my career with Cushman & Wakefield and transitioning to the firm’s Phoenix office,” Riley said. “I look forward to working with Greg and helping to expand the group’s capital markets footprint within the dynamic retail market here in the Southwest.”

A native of Phoenix, Riley graduated from the University of San Diego with a Bachelor of Business Administration. He majored in Finance and minored in Real Estate.

4127 E. Van Buren

Prosper Marketplace expands into Phoenix

Cushman & Wakefield of Arizona, Inc. negotiated a 17,998-square-foot lease for Prosper Marketplace, a peer-to-peer lending company that opened a new office at Airport Tech Center, 4127 E. Van Buren St.

It is the first office outside the company’s San Francisco headquarters. The Prosper platform connects people who want to borrow money with people who want to invest money, offering an alternative to traditional banking institutions.

“They initially toured over 20 locations and buildings,” said Larry Downey, Vice Chairman for Cushman & Wakefield of Arizona. “Airport Tech Center gave Prosper Marketplace a central location within the city and great access to the transportation freeway corridors. This is a very functional building for them and gives them the flexibility and room to expand within the project.”

Located minutes from Phoenix Sky Harbor International Airport, the new location is currently recruiting, with plans to expand to 40 employees in its first year. The office will eventually employ about 150 people.

“The Prosper platform has grown more than 400 percent over the past year, and we expect continued growth in 2014. Prosper Marketplace is excited to open a new office in Phoenix to support our growth, and we are looking forward to being part of the local business community,” said Josh Tonderys, Chief Risk Officer, Prosper Marketplace.

“We are encouraged by the expansion of companies like Prosper Marketplace,” said Barry Broome, president and CEO of the Greater Phoenix Economic Council. “The new jobs that will be available at the Phoenix office show a transformative shift from traditional back office jobs, providing exciting new opportunities for the existing technical talent in the region.”

Downey and Curtis Chickerneo of Cushman & Wakefield represented the tenant. The landlord, Arden Realty Limited Partnership, was represented by Jerry Roberts and Corey Hawley of CBRE. Occupancy is in late July.

Galleria Corporate Center 1, WEB

Weebly expands to Arizona, signs 25KSF Scottsdale lease

Weebly, a website creation service based in San Francisco, has signed a 25,000-square-foot office lease at the Galleria Corporate Centre, 4301 N. Scottsdale Rd. The office space will serve as the company’s North American customer operations headquarters to support its growing customer base.

Weebly’s expansion to Scottsdale will have a significant impact on the city’s economy. T The total economic impact over the course of the five-year lease term is estimated to be $256 million, according to an economic impact analysis provided by the City of Scottsdale. The company plans to bring more than 250 new positions to the city over the next three years, and will support more than two million customers from its Scottsdale office location.

“We’re extremely excited to open our new customer operations headquarters in Scottsdale. There is an amazing pool of quality talent in the area,” said David Rusenko, co-founder of Weebly. “With support from the city and the Arizona Commerce Authority, we’re looking forward to building a world-class team to support the success of our customers globally.”

The location, in the heart of Old Town Scottsdale, will allow Weebly to hire local talent to lead customer sales and support operations. Roles will include: customer sales and support specialists, team leaders, trainers, quality assurance and additional roles to be added in the future. Each new employee will become part of the company’s larger mission to help anyone start their something and easily build a business, website, blog or online store.

“The expansion of Weebly to Scottsdale was a collective effort by the city and our regional economic development partners to continue building Scottsdale’s software and technology sector,” said Scottsdale Mayor Jim Lane. “I am very pleased to welcome Weebly to Arizona and to Scottsdale.”

“It’s very fulfilling watching innovative clients like Weebly expand beyond their headquarters to new locations throughout the country,” said Cushman & Wakefield Senior Director Jon Dishotsky of San Francisco, who leads Weebly’s brokerage team along with Ryan Bartos and Matt Coxhead of Cushman & Wakefield of Arizona, Inc.
“After scouting several markets, including Denver and Austin, we were thrilled to partner with our Arizona colleagues to secure a great expansion location at Galleria Corporate Centre. The space is not only centrally located in Scottsdale, but also part of a bustling 24-7 lifestyle center, a feature important to Weebly’s unique culture,” Dishotsky said.

“This is a huge win for Scottsdale,” Bartos said. “It is exciting to see a company like Weebly expand into the Arizona market and bring some vibrancy to an already strong and growing technology tenant base. We believe this trend will continue and we look forward to witnessing their future success.”

Weebly was represented by Dishotsky and Cutter MacLeod of Cushman & Wakefield’s San Francisco office and Bartos and Coxhead of the Phoenix office. The landlord, Stockdale Capital Partners, was represented by Bryan Taute of CBRE.
“Weebly was also fortunate to have the support and guidance of the Arizona Commerce Authority (ACA), Greater Phoenix Economic Council (GPEC) and Scottsdale Economic Development Department to assist in this expansion,” Dishotsky said.

Each month, 175 million people visit more than 20 million Weebly sites worldwide. In the U.S., 33 percent of the total Internet population visits a Weebly site each month, up from 25 percent in 2013. As more people embrace the concept of the personal economy and starting a business of their own, Weebly is seeing tremendous demand for its technology which enables anyone to easily and affordably create a high-quality website, blog or online store to bring their unique idea to the world.

“Globally-focused companies continue to choose Arizona to achieve their goals for growth, and our highly skilled and available workforce is among our key advantages attracting corporate investment and expansions to the state,” said Sandra Watson, President and CEO, Arizona Commerce Authority. “We thank Weebly for selecting Scottsdale to expand its operations, and are excited to see the company help more businesses across the U.S. connect with their customers and grow through Weebly’s innovative web and e-commerce platform.”

RMRM, LLC has leased 7,910 square feet of industrial space at Antigua Corporate Center located at 16681 84th Ave. in Peoria, Ariz.

CBRE releases recent lease transactions

CBRE’s Phoenix office has released the following recent leasing transactions for the metropolitan area:

Wells Fargo Tenant Advisors has renewed a 5,000-square-foot lease for office space at 12515 W. Bell Rd. in Surprise, Ariz. Kevin Calihan with CBRE’s Phoenix office represented the tenant. The landlord, Nellis Family Investments, LLC, was represented by Alan Davidson with Eagle Commercial Realty Services.

DNB Engineering, Inc. has leased 5,435 square feet of industrial space at 10 Chandler Business Park located at 580 N. 54th St. in Chandler, Ariz. Mike Parker, Evan Koplan and Mark Krison with CBRE’s Phoenix office represented the tenant. The landlord, North 54th Street Venture, LLC, was represented by James Harper with Cassidy Turley.

Cumming Construction Management, Inc. has leased 4,876 square feet of office space at14350 N. 87th St. in Scottsdale, Ariz. CBRE’s Kevin Calihan represented the tenant. The landlord, Miref Northsight, LLC, was represented by Sean Spellman with Cushman & Wakefield. This marks an expansion for the international project and cost consulting firm.

Dell, Inc. has renewed an existing 12,303-square-foot lease at 4747 N. 22nd St. in Phoenix, Ariz. CBRE’s Kevin Calihan represented the tenant. The landlord, Anchor Center II, LLC, was represented by Judy Tucker with Camroad Properties.

RMRM, LLC has leased 7,910 square feet of industrial space at Antigua Corporate Center located at 16681 84th Ave. in Peoria, Ariz. Mitch Stravitz, Cooper Fratt, John Werstler and Jerry McCormick represented the landlord, First Arrowhead Commerce Center, LLC. The tenant was represented by Tom Keck with West USA Realty.

Pathlight Investors has leased 4,067 square feet at 3131 E. Camelback Rd. in Pheonix, Ariz. Kevin Calihan with CBRE’s Phoenix office represented the tenant. Ray Harris with Cassidy Turley represented the landlord, Lincoln Property Company. The lease marks an expansion for the investment advisory firm.