Tag Archives: David Krumwiede

The Grand Conceptual Rendering Final

LPC will develop 3.2M SF The Grand at Papago Park Center

Papago Park Center, Inc. announced today that Lincoln Property Company (LPC) has been selected to develop the first phase of Class A and mixed-use office space for The Grand at Papago Park Center. The total project is a 60-acre, high-profile, urban mixed-use property on the last developable parcel within the 350-acre Papago Park Center.

The Grand project will serve as the final phase of one of the largest business parks in Arizona. Papago Park Center, Inc., The Grand project’s master developer, selected LPC after an extensive RFP process that included local, regional and national development candidates.

The Grand at Papago Park Center is located along the Loop 202/Red Mountain Freeway between Priest Road and Center Parkway, and is named after the adjacent Grand Canal. The Grand Canal is a waterway developed in the 1870s to bring water from the Salt and Verde rivers to Metropolitan Phoenix. It was recently relocated to run through The Grand project, creating a water feature for the development. The completion of the canal relocation project will be celebrated with an upcoming event in March.

The Grand is part of Papago Park Center, home to the corporate offices of Salt River Project (SRP) as well as First Solar, Wells Fargo Home Mortgage, DHL, Union Bank, Sonora Quest Labs, State Farm Insurance, Western Refining and Parsons Brinckerhoff. At build-out, The Grand will total more than 3.2 million square feet of mixed-use office, multifamily, hotel, retail and restaurant space, including up to six 10-story, Class A office buildings surrounding a central water feature. When combined with Papago Park Center’s existing 3.3 million square feet of mixed-use projects, there will be more than 6.5 million square feet of urban development and approximately 20,000 employees and residents. More about The Grand at Papago Park Center is available at the project’s website: www.thegrandatpapagoparkcenter.com.

Tempe Mayor Mark Mitchell said development of The Grand at Papago Park Center further adds to the positive momentum of Tempe’s economy. “This is a boon to Tempe. The Grand will have impressive spaces rivaled by few in the region,” he said. “I am excited the site will feature pedestrian and bike paths connected to Tempe Town Lake that will be enjoyed by employees and the public.”

LPC is rolling out plans this month for its first office buildings. At build-out, The Grand will have a total of 1.8 million square feet of Class A space in six buildings. Construction on three parking garages will coincide with the buildings’ development.

“Being selected for this project evokes a sense of history, partnership and environmental stewardship,” said Lincoln Property Company’s Executive Vice President David Krumwiede. “We are extremely excited to work with Papago Park Center and to have the opportunity to pay tribute to the historic Grand Canal as the focal point of the development. We also recognize the all-time high demand for Tempe’s live-work-play environment, and believe now is an ideal time to build something very unique and lasting.”

The Grand is being developed through Planned Area Development (PAD) zoning and offers superior visibility, with approximately one-half mile of freeway frontage and two freeway off-ramps on Loop 202, just across from Tempe Town Lake. With two light rail stops serving the property, the site serves as the first stop on the light rail or by car coming out of Phoenix Sky Harbor International Airport and has almost immediate access to Arizona State University and the Loop 202 Freeway. It is also minutes from Interstate 10, the Loop 101 and the 51 Freeway, offering easy access to all major Valley thoroughfares as well as executive and employee housing in Paradise Valley, Scottsdale, Tempe, Chandler and Phoenix.

The project will include pedestrian-friendly multi-use paths along the Grand Canal and throughout the campus. Other nearby amenities include Papago Park, Papago Golf Course, Phoenix Zoo, Desert Botanical Garden, Tempe Town Lake, Arizona State University, Phoenix Municipal Stadium and the restaurants, shopping and entertainment within downtown Tempe’s Mill Avenue District.

“The Grand signifies the innovation and importance of the Grand Canal and the natural history of Papago Park,” said Nina Mullins, Senior Director of Papago Park Center, Inc. “It exemplifies the need to both further advance the economic vitality of our Valley and to protect the resources that sustain our more than 4 million residents.”

Jerry Roberts, Corey Hawley and Patrick Boyle with CBRE will lead the marketing and leasing efforts for The Grand’s office development. HKS Architects/Kendle Design Collaborative both serve as the office project architects and JEDunn will serve as the general contractor.

ATS at Waypoint, LPC, WEB

Groundbreaking marks start of Waypoint office campus

Officials from Harvard Investments, Lincoln Property Company (LPC), the City of Mesa and anchor tenant American Traffic Solutions (ATS) were on hand yesterday for the groundbreaking of Waypoint, a two-building, 258-square-foot Class A office campus in Mesa, Ariz., that is nearly 50 percent pre-leased to ATS.

ATS, a leader in road safety and toll management, will relocate more than 600 workers to fully occupy Waypoint’s 108,000-square-foot Building One. A 152,000-square-foot Building Two will accommodate single- and multiple-occupancy users. Completion of Building One is scheduled for late 2015, at which time ATS will officially move its headquarters operations into the two-story accommodations.

Waypoint sits on a prime 19.55 acres along the Loop 202 freeway, adjacent to the 1.3 million-square-foot Mesa Riverview mixed-use project and less than one mile from the Loop 101, the new Cubs Spring Training Facility and the newly reconfigured Riverview Park.

“Waypoint will be an excellent addition to the Riverview employment district,” said Mesa Mayor John Giles. “It is a great location next to two busy freeways, shopping center and parks. I look forward to welcoming more projects like Waypoint to Mesa.”

“This is an exciting time to build in the Southeast Valley and ATS is a wonderful client to build for,” added Craig Krumwiede, President of Harvard Investments. “We’re excited to bring their new home to fruition – a truly dynamic place to work within a very high energy, high amenity environment.”

“Waypoint sits in a buzzing, contemporary office corridor that continues to earn great demand from both employers and employees,” said Lincoln Property Company’s Executive Vice President David Krumwiede. “People want to be here, and that has allowed us to break ground on one building that is already 100 percent leased, and a second building that will soon round out this very valuable infill site.”

Just six miles east of Phoenix Sky Harbor International Airport, Waypoint is conveniently accessed via Loop 101 at Rio Salado Parkway, and the Loop 202 at Dobson and Alma School roads. It is directly east of Mesa Riverview, a retail, hospitality and entertainment complex. It is also less than one mile from the new Cubs Spring Training Facility and the new Riverview Park, and within a few minutes’ drive to Arizona State University.

When completed, Waypoint will join an existing Hyatt Place Hotel, two existing, two-story office buildings and a 180-room, upscale brand Sheraton Hotel that is under construction now and scheduled to open in March 2015. The hospitality site amenities will include full-service restaurants, bars, swimming pool, fitness facility and more than 30,000 square feet of meeting and event space.

“This facility offers all of the things we looked for when choosing where to place our headquarters,” said James Tuton, CEO of American Traffic Solutions. “The opportunity to have a state-of-the-art facility built to our specifications, along with the easy access to major highways and the variety of restaurants, hotels and other shops, made this the perfect location for our new headquarters.”

“I’m thrilled to see the continued development of Riverview with the new Waypoint development,” said Mesa District 1 Councilmember Dave Richins. “I am pleased to welcome new corporate partners and employers to Mesa.”

Created by project architect The Davis Experience, Waypoint reflects a “high-tech” aesthetic that extends from the buildings’ exteriors to its two-story lobbies. Façades will feature a multi-layered envelope of architectural cast concrete panels and high performance dual-pane aquamarine glazing. Interior entries will showcase clean lines, timeless materials, simple detailing and the focal point – an open “floating” grand stair. Waypoint will offer abundant parking, shaded amenity areas located around the office campus and the built-in amenity of Tempe Canal’s multi-use path.

Dave Carder, Luke Walker and Eric Schultz, from the Phoenix office of CBRE, lead the project’s marketing and leasing efforts.

Waypoint at Riverview

American Traffic Solutions relocates 600 employees to Waypoint

Harvard Investments, Lincoln Property Company (LPC) and American Traffic Solutions (ATS) announced today that ATS will be relocating more than 600 employees to Waypoint, a new Class-A office campus located in Mesa, Ariz. ATS’s lease includes total occupancy of one of two new buildings planned by owner Harvard Investments and development partner LPC.

“We welcome American Traffic Solutions, the national leader in its industry, to Waypoint and are thrilled the corporate environment we are creating resonates with their leadership team.” said Craig Krumwiede, president of Harvard Investments. “We anticipate a great fit for their employees who will be within walking distance of the shopping center, restaurants, theater, park and Cubs stadium. The proximity to Arizona State University and Tempe Town Lake also add to the location’s attraction.”

The Waypoint project encompasses 19.5 acres directly east of Mesa Riverview, a 1.3 million- square-foot retail, hospitality and entertainment complex featuring over 20 dining options, 40 storefronts and a 24-Hour Fitness. Within the development, ATS will completely occupy Building One, a 108,000-square-foot space, while Building Two, a 150,000-square-foot space, is currently available for single- or multiple-occupancy lease.

“We’re excited about this move and all of the amenities this location has to offer,” said James Tuton, president and CEO of American Traffic Solutions. “This facility will not only be designed to meet the needs of both our Fleet Services and State and Local Government Solutions Business Units but allow us to do so under one roof.”

ATS is the leading provider of traffic safety, mobility and compliance solutions for state and local governments, fleets, and rental car companies. ATS expects to move into the Waypoint project in November 2015 with more than 600 employees. ATS is relocating from its existing offices in Tempe and Scottsdale, Arizona with plans to add as many as 150 additional employees by 2017. A privately held company, ATS has grown significantly each of the past several years and forecasts continued growth for the future.

“Waypoint represents the new era of creative office building design,” said David Krumwiede, executive vice president for Lincoln Property Company. “With large, open floor plans and high ceiling lines, the building will allow ATS employees to occupy their space in a myriad of ways –  from expansive indoor workspace landscapes and more intimate “huddle rooms” – to shaded outdoor collaborative spaces.”

Waypoint developer Lincoln Property Company is collaborating with The Davis Experience to create a “high-tech” aesthetic that extends from the buildings’ exterior to the two-story lobbies.  The façade will feature a multi-layered envelope of architectural cast concrete panels and high performance dual-pane aquamarine glazing. The interior entries will showcase clean lines, timeless materials, simple detailing, and the focal point – an open “floating” grand stair. Additionally, Waypoint features abundant parking, shaded amenity areas located around the office campus and the built-in amenity of Tempe Canal’s multi-use path.

“This is exactly the type of development we want in Mesa,” Mayor John Giles said. “High quality jobs, next to two freeways and lots of restaurants and shopping make Riverview an ideal location for employment centers like Waypoint. We hope to keep the momentum moving and see more well-planned developments like this throughout Mesa.”

Just six miles east of Phoenix Sky Harbor International Airport, Waypoint is conveniently accessed via a half-diamond off Loop 101 at Rio Salado Parkway, as well as two full-diamond interchanges along the Loop 202 at Dobson and Alma School roads.  Such accessibility makes the project one of the most desirable new office developments in the region.

“We anticipate additional interest from businesses looking to move to Waypoint and are thrilled for the nearly 1,700 jobs the project accommodates,” said District 1 Councilmember Dave Richins. “The ongoing positive impacts this creates for nearby residents and business owners is especially exciting.”

When completed, Waypoint will join an existing Hyatt Place Hotel and a 180-room, upscale brand Sheraton Hotel scheduled to open in March 2015. The hotels will include amenities such as full-service restaurants, bars, a swimming pool, a fitness facility and more than 30,000 square feet of meeting and event space.

Freeport Distribution Center, WEB

Lincoln Property Co. acquires Freeport Distribution Center

Lincoln Property Company (LPC) has acquired the two-building, 219,240-square-foot Freeport Distribution Center industrial project in southwest Phoenix. Freeport Distribution Center is located at the northwest corner of Buckeye Road and 51st Avenue, just minutes from the Phoenix Sky Harbor International Airport.

The project is a close-in infill site offering immediate connectivity to the I-10, I-17 and Loop 303 freeway. It boasts a strong tenant roster that includes Nestle North America and two Canadian-based, construction industry credit tenants: Moulding & Millwork (a subsidiary of Metrie) and Hardwoods Specialty (a subsidiary of Hardwoods Distribution, Inc.)

LPC purchased Freeport Distribution Center from Atlanta-based IDI Gazeley Brookfield Logistics Properties and California-based BlackRidge Real Estate Group. Brett Tremaine, Anthony Brent, Ryan Martin and Tom Simmons from HFF represented the seller. LPC will provide exclusive property management services for the new acquisition.

“Phoenix’s southwest Valley is an extremely sought-after industrial real estate submarket,” said Lincoln Property Company’s Executive Vice President David Krumwiede. “Freeport Distribution Center is a great example of the submarket’s strength and its potential to become even stronger as its key assets continue to stabilize.”

Krumwiede quickly engaged LPC’s property management team to capitalize on the project’s potential, and is looking for additional opportunities across the Southwest to do the same. “As a medium-size bay project, Freeport provides a nice balance to our regional portfolio. It is a welcome part of our company’s continued growth.”

“Freeport Distribution Center allows LPC to do what we do best, which is to bring a good asset up to its maximum value,” added Lincoln Property Company’s Director of Management Services Alisa Timm, who oversees a more than 6.5 million-square-foot management portfolio for the company’s Desert West Region. “We do this by providing the services that today’s owners need most: financial savvy, positive relationships and creative ideas that keep tenants and buildings at the top of their game.”

Located on approximately 11 acres at 5240 and 5302 W. Buckeye Road in Phoenix, Freeport Distribution Center includes one 135,114-square-foot industrial building and one 84,126-square-foot industrial building. The project features 25 – 28-foot clear heights, ESFR sprinkler system, front-load configuration and 240 – 260-foot shared truck court.

Dick's Sporting Goods distribution warehouse, Goodyear

Industrial Evolution: West Valley poised for land grab

Dick’s Sporting Goods built a 720KSF distribution center in Goodyear to service its West Coast stores.

A California-based investor erected a 400KSF spec shell in Surprise’s Southwest Railplex business park.

Corporate giants, Macy’s, Amazon, Sub-Zero, Marshall’s/TJ Maxx, Southwest Products and WinCo have landed or expanded their vast West Valley industrial operations within the last two years.

Even more companies are eyeing potential stakes in the burgeoning industrial parks springing up in once sleepy bedroom communities west of Phoenix.

With the recession in their rear-view mirrors, local, national and international companies are revving up manufacturing and distribution operations, and the West Valley is poised to be a big beneficiary of their expansion plans.

Justin LeMaster, Cushman & Wakefield

Justin LeMaster, Cushman & Wakefield

Available and affordable land, a deep labor pool, business-friendly state and local governments and top-notch transportation corridors contribute to the West Valley’s desirability, said Justin LeMaster, Cushman & Wakefield’s director for industrial properties.

Farsighted developers are already master-planning vast spreads of land, setting up infrastructure and even building large-scale spec structures that can accommodate another industrial giant or get sliced and diced to accommodate several smaller operations.

The developers — along with city and state economic development specialists — want their properties primed to snag the business when the lookers become movers, LeMaster said.

“Smart, creative developers will make the West Valley a successful high-growth market for years to come,” he said.

The numbers confirm the trend.

An impressive 4.5 MSF — nearly 94 percent of the metro area industrial construction started or completed in 2013 — is in the West Valley, according to Jones Lang LaSalle’s Q4 Industrial Report.

Q4 absorption was 1.96 MSF, and only 15.3 MSF of the West Valley’s 90.7 MSF total industrial inventory was still available at year’s end.

Nevertheless, 4.5 MSF is a significant amount of new inventory for a post-recession market, and, in fact, it boosted Valleywide industrial vacancy rates above 12 percent.

Anthony Lydon, Jones Lang LaSalle

Anthony Lydon, Jones Lang LaSalle

Industry experts aren’t worried.

“The new, grown-up, industrial tenants coming to market right now are looking for 300KSF, 400KSF and above,” said Anthony Lydon, Jones Lang LaSalle managing director for Supply Chain & Logistics Solutions.

Less than half of the West Valley’s available space meets that criteria, and a few big employers could snatch that up in a flash, he said.

Like LeMaster, Lydon expects that to happen sooner rather than later.

“Over the next 24 to 36 months, the Valley, and the West Valley in particular, will see significant new job creation,” he said.

So what makes the West Valley suddenly so attractive to the industrial users?

“Economics and location,” said Pat Feeney, CBRE senior vice president for industrial services.

Cost is key
Of the metro area’s three major industrial hubs ­— the airport area, the Tempe/Chandler corridor and the West Valley — the first two are nearly out of developable land, Feeney said. And scarcity makes that land pricey, especially for a large user.

Pat Feeney, CBRE

Pat Feeney, CBRE

A skilled and diverse labor force that moved west when the home builders did is another major factor, he said.

“Nearly 70,000 people live in Goodyear, but only 14,000 or 15,000 work in Goodyear,” Feeney said.

When big employers like Sub-Zero, Amazon and Macy’s held job fairs for their new West Valley digs, they typically attracted eight to 10 qualified applicants for every position, he said.

“They all shared that they were so happy they could pick the cream of the crop,” Feeney said. “It’s a really big draw.”

David Krumwiede, Lincoln Property Company

David Krumwiede, Lincoln Property Company

Staffing a large warehouse is a major economic concern, especially for companies with labor-intensive, e-commerce picking systems, said David Krumwiede, executive vice president for Lincoln Property Company, which owns 6 MSF in its four-state Desert West Region, 2.4 MSF of that in the West Valley, including Goodyear AirPark and 10 Lincoln.

Arizona’s main competition for the big industrial users looking to establish or expand operations in the West is California’s Inland Empire, Krumwiede said.

While the Inland Empire’s construction costs are comparable to Arizona’s, labor costs in Arizona, a right-to-work state, are much lower, he said.

“We are extremely competitive with California’s Inland Empire if a user has more people than trucks,” Krumwiede said.

And big energy consumers, such as companies employing sophisticated e-commerce logistics technology, can save as much as 30 percent to 40 percent in operating costs by locating in Arizona instead of California, Lydon said.

But possibly the biggest economic incentive for many industrial users is Arizona’s much more favorable tax basis, Krumwiede said.

All of the West Valley’s large planned business hubs have designated areas that are Foreign Trade Zone capable, and that’s a big selling point for companies that do significant international business in parts or products, Krumwiede said.

“If a company qualifies, it can see a 72 percent reduction in property taxes,” Feeney said. “It’s a tremendous benefit.”

And a benefit none of the nearby states can offer, he said.

Such issues make Arizona, especially the West Valley, where land is available and affordable, a clear economic winner over California.

Location, location, location
Second only to the West Valley’s attractive economics, is its advantageous location, less than half-a-day’s drive from the southern California ports — a major consideration for retailers and e-commerce leaders like Amazon, as well as manufacturers like Sub-Zero, according to the experts.

Rob Martensen, Colliers International

Rob Martensen, Colliers International

“If you can get out of traffic and get closer to the ports in Los Angeles and Long Beach, you can make that in six hours,” said Rob Martensen, Colliers International vice president.

That means truck drivers can log a round trip and still stay within federal guidelines regarding length of time on the road, a feat not so easy to accomplish from the East Valley.

And for companies distributing products regionally — Macy’s or Dick’s Sporting Goods, for example — the completion of the Loop 303 will forge the final freeway link that can speed trucks to and around cities and states north and west of Phoenix.

“It will open the gateway,” LeMaster said. “Companies want to be in Phoenix, and the West Valley will be the industrial hub of Phoenix with the (Loop 303/I-10) interchange.”

Overall, the combo of favorable attributes will ensure the West Valley lands on the short list for large and small industrial users for the next decade or so, Krumwiede said.

“The companies that are already out there — Amazon, Target, Costco, PetSmart, Staples, Macy’s — are all household names. It’s a great start. We’ll see more of those,” he said.

“My vision is that a lot of that vacant land will be put into production in the next five to 10 years.”

M

Lincoln Property Company Sells Project Near Sky Harbor Airport

Lincoln Property Company announced the sale of Lincoln Sky Harbor to LTJ Skyline/Grand Stable and Carriage.  Lincoln Sky Harbor is situated on 7.57 acres and consists of three buildings totaling approximately 130,000 SF.  The property is located at the northwest corner of 16th Street and Interstate 17, in Phoenix, and neighbors Phoenix Sky Harbor International Airport.

Phoenix Sky Harbor International Airport is ranked as one of the nation’s top 10 busiest airports for passenger traffic with a $79M daily economic impact. “Being adjacent to one of the nation’s top ten busiest airports has been a key factor to the success of the development,” said David Krumwiede, Executive Vice President, Lincoln Property Company.

Noted as a successful in-fill project, the industrial project was developed by Lincoln Property Company in partnership with INVESCO, a leading independent global investment management firm operating in more than 20 countries.

“Lincoln Sky Harbor is an attractive investment for many reasons, including the stable tenant base, the freeway exposure and proximity to Phoenix Sky Harbor International Airport,” continued Krumwiede.  “This infill project is one of many Lincoln projects that have capitalized on under-utilized properties.”

Lincoln Property Company was awarded the “Spec Industrial Development of the Year – 100,000 to 250,000 SF” for the Lincoln Sky Harbor project by the Arizona Chapter of the National Association of Industrial and Office Properties (NAIOP).

The property is 93.4% occupied with tenants such as GardaWorld, one of the top 10, fastest-growing security companies globally. GardaWorld is headquartered in Montreal, Canada, and provides business solutions and security services around the world.  Other tenants include Premier Lighting, 1-800-Flowers and The Synthetic Grass Store. Lincoln Property Company will continue to manage the property under the new ownership.

“LPC is pleased to continue serving as the property manager,” said Alisa Timm, CPM, Director of Management Services, Lincoln Property Company.  “Lincoln is known for managing properties with the philosophy of making decisions as if the asset was our own.  LPC will continue to provide the highest level of management service to the new ownership.”

Lincoln Property Company was represented by Daniel P. Calihan, Pat Feeney, Joe Porter III, and Rusty Kennedy of CBRE.  LTJ Skyline/Grand Stable and Carriage negotiated on their own behalf.