Tag Archives: fortune 500 company

Hayden Ferry Lakeside II Office Tower

CBRE Completes $86 Million Sale of Hayden Ferry Lakeside II Office Tower

The Fortune 500 and S&P 500 company, CBRE, has completed its $86 million sale of the Hayden Ferry Lakeside II property.

The property is located at 60 E. Rio Salado parkway in Tempe. The seller remains undisclosed and was represented by CBRE’s Brad Anderson and Bryan Taute, along with Kevin Shannon, Todd Tydlaska and Ken White from the firm’s California office.

CBRE’s Jim Fijan, of Phoenix, represented the buyer, who also owns the adjacent Hayden Ferry Lakeside I and is an affiliate of Parkway Properties.

The Hayden Ferry Lakeside II is a 12-story Class A multi-tenant office building and is located within a 1.6 million square feet project. This project includes offices, retail and residential condominium units. The building, built in 2007, was 95% occupied at the time of sale.

The location of the building creates for a vibrant environment for tenants, as it is set along Tempe Town Lake, and is surrounded by countless dinning and shopping venues on the Mill Avenue entertainment district.

“The Phoenix office leasing market has turned and is gaining momentum. It was one of only eight office markets nationally that absorbed over 1.8 million square feet in 2011, with much of that absorption focused in Class A office assets like Hayden Ferry Lakeside. This transaction again demonstrated capital’s continued desire for core office product.” said CBRE’s Shannon.

Taute added, “The significant lease up over the last 18 months and subsequent sale is a testament to the quality of the building. We anticipate leasing demand for this project to continue for the foreseeable future.”

For more information on the largest commercial real estate services firm (in terms of 2011 revenue), visit their website at www.cbre.com.

The company, with nearly, 34,000 employees, provides services for real estate owners, investors, and occupiers.

Who To Watch: Roy Vallee

Roy Vallee
Chairman of the Board and CEO
Avnet

“..we are seeing a bounce-back in IT spending.”

–Roy Vallee, Avnet

Although it believes its performance was pretty good under the circumstances, Phoenix-based Avnet Inc. chalks up 2009 as a harsh year. Now, Avnet is focused on an improving economy and the business it will bring.

Serving more than 100,000 customers in 70 countries, Avnet is one of the world’s largest technology distributors, linking end-user clients with more than 300 software developers and electronic component and computer product manufacturers.

“It’s fair to say we have been severely impacted by the global recession,” says Roy Vallee, chairman and CEO of the Fortune 500 company. “Sales (for calendar year 2009) will be down by a double-digit percentage and earnings per share will be down substantially more than that, probably by roughly 40 percent. It has, in fact, been a tough year.”

Avnet’s revenue for its July-to-June 2009 fiscal year declined 9.6 percent from fiscal 2008, to $16.23 billion.
Globally, Vallee says purchasing of information-technology (IT) equipment dropped “precipitously” in 2009 by 5 percent or 6 percent.

“There were only two years in history when IT spending was negative and that was 2001 and 2002,” he adds. “So there was a big cutback by businesses on IT in 2009.”

Because of the nature of the electronics supply chain, business spending on electronic components deteriorated more rapidly than IT. But Avnet held to its strategy of focusing on value-based management and return on capital, rather than earnings per share. As sales declined, it reduced investment in inventory and accounts receivable and generated $1.4 billion in cash flow from operations.

It also continued a tradition of acquisition, thus expanding its market. Avnet negotiated a controlling interest in Vanda Group in China, and acquired Abacus Group in the United Kingdom and Nippon Denso Industry Co. in Japan. It also formed a joint venture in Turkey with Sanko Holding Group. In India, it purchased a small firm to launch an IT distribution company.

Now Vallee thinks “we are past the trough.” The accordion-like behavior of the electronics supply chain is responding to the reviving global economy. What was once squeezed is now expanding. Vallee says IT spending is showing signs of improvement and that “components spending is increasing at a rapid rate.” That already is showing up in Avnet’s financials for fiscal 2010. And Vallee is hopeful that Avnet’s October-through-December second quarter revenue will top the same period a year ago.

“IT spending will grow in 2010, probably in the mid-single digits,” he says. “There is pent-up demand. Companies that needed to spend on IT put it off because they were uncertain about where the economy was headed. They were also uncertain about where they would get the money. But you can only delay that kind of spending so long. Now that the economy is turning and capital is more available, we are seeing a bounce-back in IT spending.”

That spending also is a result of renewed focus on business growth that follows a couple of years of emphasis on cash, balance sheets, profit and loss, Vallee notes.

www.avnet.com


Arizona Business Magazine

January 2010