Tag Archives: Greg Vogel

AZRE Source

AZRE Source: The private land grab

It is obvious the Valley is landlocked, but not all of that land is up for grabs.

Only 17 percent of land in Arizona is private land available for development. The public state trust owns a majority of the undeveloped land in the state.

“I felt this is a well-kept secret,” said Kuldip Verma, CEO of Vermaland, one of the largest landowners in Arizona.

This will cause a scramble for land as developers try to tie up the remaining land and, once those are spoken for, developers will have a difficult time to find land for their projects, Verma said.

“As Phoenix grows, it will eventually become landlocked. You just cannot make any more land, and everything requires land,” Verma said.

As the population grows land development will be forced around the state parcels that are not up for auction. The State Trust determines what land goes up for sale with the goal of maximizing profits for the state.

“You need to pay attention to the State Land Department,” said Nate Nathan, president and broker of Nathan & Associates.

About 200,000 acres a year are auctioned statewide and there is no way to predict what land will go to auction, Nathan said.

Much of the Valley is backed up against state-owned land. However, there is land in the path of growth in the West Valley that can accommodate the growth, said Greg Vogel, CEO and founder of Land Advisors, the nation’s largest brokerage company focused exclusively on land.

The West Valley is the only area in the Valley that isn’t landlocked, and experts believe we will see a majority of future development in this area.

“It is estimated the West Valley will capture about 42 percent of permits over the next few years,” Nathan said.

The population of Phoenix is expected to add one million people every 10 years. The general consumption of land as the population grows is one acre for land for every six people, Vogel said.

Vermaland’s strategy is to buy land about 10 to 15 miles outside of existing development that is strategically located and has characteristic that will appeal to developers, Verma said.  Most of its land is raw and undeveloped, Verma said.

“You can buy land at an extremely low per acre price and then develop it and sell it for a very high return,” Verma said.

As the Valley grows, development pushes outward and these raw areas become prime real estate.

When buying and selling land, developers consider availability to utilities, transportation and access, Vogel said. New freeways are dissecting the Valley and we can expect new development to occur at these off ramps.

Development will follow these freeways, job listings and a cooperative government that supports economic development, Vogel said.

Arizona can also expect to see growth up as it grows out, getting denser in downtown Phoenix, Tempe and Scottsdale.

Land Advisors, WEB

Metro Phoenix Land and Housing Forecast examines ‘refined opportunity’

While the industry has experienced sub-par housing activity over the past 11 months, the anticipated pace of growth going forward depends on a few factors, not the least of which is credit and qualification conditions, household formation, employment growth, the cost of new construction and outsiders’ perceptions of the local market. What are the expectations for growth in the nation’s economy, real estate capital markets, and residential real estate? Will these perceptions of a “refined opportunity” in real estate change how you operate your business now and in the future?

On Wednesday, December 10, 2014 the Land Advisors Organization will bring together a distinguished group of industry experts including Tim Sullivan (Meyers LLC), Nick Taratsas (DMB), Joel Shine (Woodside Homes), Mike Orr (Arizona State University, W. P. Carey School of Business), Don Garner (Alliance Bank of Arizona) and Matt Cody (Cachet Homes), to provide their considerable insight. Greg Vogel, CEO of Land Advisors Organization will moderate the panel.

Event Information:
DATE:        Wednesday, December 10, 2014
TIME:        2:30 Registration, 3:00 Program, 5:00 Networking Reception
LOCATION:    Sheraton Downtown Phoenix
COST:        $100 per person; $75 for public agencies and officials ($25 increase after Dec. 3)
REGISTER:    www.landadvisorsevents.com

All net proceeds benefit New Pathways for Youth and Arizona State University Real Estate Programs.

Since 1989, New Pathways for Youth has transformed the lives of more than 2,600 at-risk youth through mentoring. Their programs are designed to build self-esteem and leadership skills, increase school attendance and performance, end gang activity and violence and decrease substance abuse.

The Division of Real Estate at the W. P. Carey School of Business at Arizona State University provides the research and experience-based expertise necessary to address challenges in the contemporary real estate industry. Real estate faculty members bring real-world expertise into the classroom. Their collaboration and vision have contributed to an international real estate projects emphasizing ethical and responsible development that enhances community value and vibrancy and is sustainable and financially successful.

For companies interested in supporting this event and its chosen charity, they can review the sponsorship opportunities.


AFI-USA sells downtown Phoenix development site for $12.75M

Real estate developer Africa-Israel USA (AFI-USA) announces the sale of a five-acre downtown Phoenix development site at the corner of Central Avenue and McDowell Road for $12.75 million. AFI-USA had owned the property since 2004. Lennar Multifamily Communities is the purchaser and plans to transform what is currently an empty lot into a 288,000-square-foot luxury residential mixed-use community. Randy Titzck, Greg Vogel and Chad Russell of the Scottsdale, Ariz.-based Land Advisors Organization represented AFI-USA in the transaction.

Lennar’s plans for the site include 368 luxury rental apartments along with 13,000 square feet of commercial and retail space, which is planned to accommodate collaborative co-working space, neighborhood retailers and a restaurant or café. The project is slated to start construction in the second quarter of 2015.

“Chagit Sofiev Leviev, CEO of AFI-USA, worked closely with the Lennar executive team to achieve this remarkable deal. The project will be a boon to the local economy, which is still recovering from the last recession,” said Damien Stein, Chief Operating Officer of AFI-USA. “Lennar builds high quality communities that positively impact the areas in which it develops. We expect that this development will contribute significantly to the positive growth and urbanization that is occurring in Downtown Phoenix.”

This successful sale comes on the heels of a spate of noteworthy lease signings at AFI-USA’s Times Square Building in New York City where marquee tenants include Haru Sushi, Guitar Center, Discovery Times Square Exhibition and Bowlmor Times Square.

Rancho Vistoso

Land Advisors reports recent transactions

RANCHO VISTOSO | Oro Valley, Arizona

Offering: 140 gross acres (2 closings – 48 acres and 92 acres)
Location: Rancho Vistoso Blvd, in Oro Valley, Arizona
Sales Price: $13,600,000 total
Seller: Vistoso Partners
Buyer: Mattamy Homes Arizona
Agents: Will White and Greg Vogel

Offering: 12.79 acres
Location: E/SEC of Alma School Road and Loop 202 in Mesa, Arizona
Sales Price: $3,510,000
Seller: Equity National Real Property Investments
Buyer: D.R. Horton
Agents: Bret Rinehart, Ryan Semro and Ben Heglie


PASEO RIDGE PHASE I & II | Goodyear, Arizona

Offering: 122 acres
Location: NE/SE of Yuma Road and Perryville Road in Goodyear, Arizona
Sales Price: $6,511,050
Seller: Van Leeuween Farms LLC
Buyer: Melcor Developments Arizona
Agent: Greg Vogel, Bret Rinehart, Ryan Semro and Ben Heglie
CRYSTAL VISTA PHASE I | Buckeye, Arizona

Offering: Phase I Improved Lots – 83 (53′ x 115′) & 38 (58′ x 115′)
Location: S/SWC of Broadway Road and Apache Road in Buckeye, Arizona
Sales Price: $3,630,000
Seller: Metro CV 300
Buyer: LGI Homes-Arizona
Agent: Bret Rinehart, Ryan Semro and Ben Heglie

The Land Advisors Organization reports recent deals


Offering: 795.69 acres
Location: East side of Highway 90, south of Interstate 10 in Benson, Cochise County, Arizona
Sales Price: not disclosed
Seller: National Bank of Arizona
Buyer: El Dorado Benson, LLC
Agents: Greg Vogel, Will White, Waseem Hamadeh and John Carroll
801 NORTH ARIZONA AVENUE | Chandler, Arizona

Offering: ±2,660 sq. ft. retail building on ±0.41 acres
Location: 801 N. Arizona Avenue, in Chandler, Arizona
Sales Price: $312,000
Seller: Bear Family Trust
Buyer: Matthew Mooneyham
Agents: Randolph C. Titzck and Chad Russell
901 EAST ROSSER | Prescott, Arizona

Offering: 5.48 acres
Location: 901 East Rosser, Prescott, Arizona
Sales Price: $800,000
Seller: Brady Revocable Trust
Buyer: The Church of Jesus Christ of Latter-Day Saints
Agent: Capri Barney
RANCHO CORAN | Las Vegas, Nevada

Offering: 22.06 acres
Location: 1792 N. Ranch Drive, Las Vegas, Nevada
Sales Price: $2,300,000
Seller: MB REO-NV Land
Buyer: Precedent Properties
Agent: Rick Hildreth
WHETSTONE RANCH | Benson, Arizona

Offering: 11,650 acres
Location: State Route 90 in Benson, Arizona; beginning +/-1.5 miles south of Interstate 10
Sales Price: not disclosed
Seller: Whetstone Partners, Whetstone Development, Graves
Buyer: El Dorado Partners, III
Agent: Greg Vogel, Will White, Waseem Hamadeh and John Carroll

The Loop 303 interchange is under construction. Photo courtesy of ADOT.

Headed for a boom, the West Valley is ready to go

Clumps of curved freeway fragments balancing on massive pillars of concrete resemble a giant modern art sculpture greeting Interstate 10 travelers through the far West Valley of the Phoenix Metro.

Later this year, those “art” segments will gel into a multi-level interchange linking the I-10 and the Loop 303, and launch the area’s burgeoning commercial development into warp speed.

Kevin Czerwinski, Merit Partners

Kevin Czerwinski, Merit Partners

The new interchange “will be a game changer,” said Kevin Czerwinski, president of Merit Partners, broker for the 1,600-acre, master-planned business park PV303, which straddles the confluence of those roadways and stretches north along the Loop 303 to Camelback Road.

For nearly a decade, the West Valley, loosely defined as everything west of Interstate 17, has been quietly emerging as the metro area’s hotbed for commercial development. It has been fueled by dwindling East Valley land availability and affordability and better transportation access. After completion of the Loop 101, developers quickly gobbled up land along the freeway for homes, shops and businesses. Then they continued the westward expansion.

Now the Loop 303 is offering another close-in frontier and shovel-ready options for new and growing businesses to expand or set down roots in the metro area. The nearly completed semi-circle of highway linking the I-10 and the I-17 will provide a high-speed route to northern states, bypassing metro area traffic congestion — a boon to companies like Dick’s Sporting Goods, which recently completed a 720,000 SF distribution center in PV303 to service its Western U.S. stores, Czerwinski said. And to other retailers such as Macy’s, TJ Maxx/Marshall’s and Target, e-commerce giants such as Amazon, and high-end manufacturers such as Sub-Zero and Cookson Doors that ferry lots of merchandise intra- and inter-state.

It’s more than just big-box industrial sites popping up in the West Valley.

John Graham, Sunbelt Holdings

John Graham, Sunbelt Holdings

Acres of farm land or empty desert hide the fact that in the offices of forward-thinking developers and savvy city economic strategists, there are detailed plans for office, light industrial and retail centers, medical complexes and regional malls to be built on that un-shoveled land.

“The West Valley’s day is coming,” said John W. Graham, president of PV303 developer Sunbelt Holdings.

Sunbelt was a big player in the East Valley boom of the 1990s and early 2000s, developing residential communities from McDowell Mountain Ranch in Scottsdale to Power Ranch in Gilbert and mixed-use complexes such as Hayden Ferry Lakeside in Tempe. Graham says the same scenario is playing out west of Phoenix now. Land Advisors CEO Greg Vogel compares Goodyear today to Gilbert of a decade ago.

First came the houses
As available and affordable East Valley land dried up, a spate of residential building in well-designed West Valley communities such as Vistancia, Estrella and Verrado have attracted home buyers at all price points, Vogel said.

Greg Vogel, Land Advisors

Greg Vogel, Land Advisors

A whopping 35 to 40 percent of Phoenix metro area residents now live in the West Valley, Vogel said. And all those people need places to shop, bank, and find medical care.

“Residential drives everything,” he said.

Now supermarket-anchored shopping centers and big-box power centers are springing up, two regional malls are on the drawing board, and spec office buildings are breaking ground — despite Valleywide office vacancy rates topping 22 percent. The completion of the Loop 303 interchange will accelerate that trend as it eases drive time for those who work in Phoenix but live in the far West Valley — or want to, Vogel said.

Goodyear, which is in the enviable location at the foot of the new interchange, has been proactive pitching its bounty. That includes PV303 and Goodyear AirPark, a 267-acre, shovel-ready business park at Litchfield Road and Highway 85, said Sheri Wakefield-Saenz, the city’s development services director. And Wakefield-Saenz expects Westcor’s long-planned 1.1 MSF Estrella Falls regional mall to start ringing up sales — and sales tax — in 2016.

Sheri Wakefield-Saenz, Goodyear

Sheri Wakefield-Saenz, Goodyear

Wakefield-Saenz predicts that even more executive offices, high-end retail and high-quality manufacturing businesses will clamor for space in Goodyear during the next decade because of the in-place infrastructure and the educated workforce already living there.

Farther north in Surprise, the story is similar. In 2008, Sands Chevrolet built the first dealership in Prasada, a 4-square-mile, mixed-use development straddling the Loop 303. Now car buyers can shop at eight different dealerships at 303 AutoShow. And more are coming, said Jeff Mihelich, Surprise’s assistant city manager in charge of the Community and Economic Development Department. Neighborhood shopping centers are in the ground or on the drawing board as well, and another regional mall is pegged to land in Prasada, although no date has been announced.

Jeff Mihelich, Surprise

Jeff Mihelich, Surprise

But Mihelich doesn’t want to just provide shops and services and ease the daily commute for Surprise residents. He wants to lure more quality office and industrial employers so that residents can live, work and play in their hometown. Five years ago, Surprise reorganized its economic development department and goals to focus on becoming a major employment base, “concentrating on head-of-household jobs — people who will buy homes, go to restaurants,” he said. Major strategies included streamlining approval processes, persuading developers to pre-plan projects and build infrastructure before target tenants showed up, encouraging spec building, and aggressively marketing all those attributes, Mihelich said. That positions Surprise to take advantage of pent-up business expansion plans as the recent recession wanes, he said.

“When companies are expanding, they often have contracts in hand,” he said. Having property ready to build on can mean the difference between landing or losing a major employer, he said.

Optimistm Abounds
That optimism and pre-planning is not just happening in Goodyear and Surprise. Thanks to a wealth of available and affordable land, developers are eyeing West Valley cities from Avondale and Buckeye to Peoria and Glendale as future business hubs.

Justin Miller, Alter Group

Justin Miller, Alter Group

The Alter Group teamed up with property owner John F. Long to take advantage of the area’s growing popularity among home builders and buyers by developing three major business parks to attract employers. Algodon Center is a 1,000-acre mixed-use campus in Avondale and west Phoenix, Aldea Centre is a 150-acre business park at 99th Avenue and Bethany Home Road, and the 229-acre Copperwing Business Park is adjacent to Glendale Airport. All three have infrastructure and zoning in place and the flexibility to accommodate Class-A, back-office and light manufacturing operations, said Justin Miller, Alter Group vice president.

“The West Valley is a big component of our future,” Miller said. “It’s an area that Corporate America can use and expand because of the abundance of land.”

He’s not concerned about high office vacancies in the metro area. The easy commute for all those road-weary West Valley residents and shovel-ready land are compelling draws for big and small employers as they ramp up their businesses, he said. Valley dwellers who haven’t ventured west of the I-17 for years might be surprised to see the explosive growth.

“If people have not been to the West Valley in a while, they should come and take a look at us,” Mihelich said. “It’s truly a robust market. People outside of Arizona are noticing.”

Loop 202 - AZ Business Magazine Oct/Nov 2006

Plannings Pays Off For 202 South Mountain Freeway

The New 202

Plannings pays off for 202 South Mountain Freeway

By David Schwartz

Tom Tait Jr. just chuckles when quizzed about the future of his family’s land holdings in the West Valley, a large expanse of property that has been in the portfolio since the 1970s. Are there any great plans for development? Are there plans to flip the property and pocket the proceeds?


The New 202Not even close. Indeed, the past few years have raised the property’s worth, but that’s apparently where it ends. At least, he claims, that’s the thinking for now. “We are long-term owners of properties and really don’t bother much with any short-term benefits that there might be,” Tait says. “At the present time, we’re just farming the property. That’s what we’ve been doing and I don’t see that changing much. No matter what happens.” And apparently no matter what transportation planners have in store for the acreage.

The Tait family are among the owners of property in the vicinity of the Loop 202 South Mountain Freeway, a long-charted, controversial thoroughfare that eventually will span 22 miles and link Interstate 10 in the southeast and West valleys.

But it’s the stretch of the freeway that cuts through the burgeoning southwest Valley that recently was brought into sharper focus by the Arizona Department of Transportation. In late June, officials ended any uncertainty and revealed that the freeway would connect at 55th Avenue in Laveen—an old favorite seen on the map for at least the last two decades.

The route was a popular choice of the three options presented for review. Better than 71st Avenue. Better than 99th Avenue, south of Loop 101. It was hailed as the right choice by officials in Phoenix and several area municipalities. It too was welcomed by several landowners in the area. But it was neither a surprise, nor unexpected.

Land experts say that the decision by the state was important because it serves to cement the value for the land in the area to be affected by the proposed freeway. There is now a line drawn in pen that can’t be easily erased and sent back to the drawing board.

But experts are quick to add that property in the area has been soaring in value anyway during the last two years, as the real estate market careened through its boom times and those familiar red tile rooftops became a more frequent sight with each passing day.

There likely will be no land rush, they predict, unlike what occurred when other segments of the Valley’s freeway system were put into place in years past. “They are putting it where I think most people thought it was going to be,” says Greg Vogel, chief executive of Land Advisors Organization, which has offices in Arizona, Texas and Colorado. “I don’t think there was a drop in values while they were considering other options. It’s already been priced into the market and it’s been a long time coming.”

Besides, Vogel says, there is not a huge amount of land to be had in the area that will be directly affected by proposed freeway as it sweeps its way through the area. He said land costs now in the fast-growing Laveen area already are between $175,000 to $350,000 an acre, a dramatic increase from more than a decade ago. “This isn’t a case where there are 25 pieces (of land) with 30 different buyers and all kinds of things going on,” he says. “It has been thought through and organized, so you’re not going to see anything like you may have with other freeways.”

Pat Feeney, senior vice president of CB Richard Ellis in Phoenix, says he has watched a surge in valuation of available industrial land that began in summer 2004 and pushed prices to about $4 per square feet. That’s more than a five-fold increase from the early 1990s. “The net result is that almost every piece of land in the submarket is owned by a developer who will be building on their property,” says Feeney, who has been tracking industrial properties for about 20 years. “No one out there is a seller right now.”

He says he sees no revaluing of land in wake of the transportation department putting its official stamp on the freeway alignment in the southwest Valley. Officials say that’s because the proposed freeway has been on the books since 1985, when Maricopa County voters approved a Regional Freeway System that was supposed to take care of the Valley’s transportation needs. But a funding shortfall meant that this segment fell down the priority list of projects. At one point, it was seen as a potential toll road.

AZ Business Magazine October November 2006Fast forward to 2004. Voters approved Proposition 400 that provides money to pay for a Regional Transportation Plan that includes the South Mountain Freeway. Transportation officials say plans call for the freeway to cost an estimated $1.7 billion, with construction expected to be completed and ready for motorists in 2015. “It’s the future for that part of the West Valley,” says Debra Stark, Phoenix planning director. “We think we have done a good job planning and making sure land has been set aside.”

She says one needs only to look at an aerial map as proof. In one picture, a clear path for the freeway already has been set aside along 59th Avenue and Broadway Road. Houses can be seen on both sides. “What has helped is that unlike other areas, we’re not seeing as much housing or commercial development,” Stark says. “And as we’ve done zoning there, we’ve asked developers to set aside land for the 55th Avenue alignment. So we’re more prepared for when the freeway is built.”

As for Tait, there are no great preparations just yet for his family’s property. Asked about his time frame for development now that the freeway route has been picked, he says, “What, so now instead of 30 years, it’s 20 years? That’s still a long way away.”


Arizona Business Magazine Oct/Nov 2006