Tag Archives: Marina Heights

Marina Heights is a development partnership between Ryan Companies and Sunbelt Holdings. Fellow Valley Partnership member Cushman & Wakefield was awarded the leasing assignment.

A valley of partners

Partner-to-partner transactions building up the valley
one project at a time

When Valley Partnership was founded 27 years ago, it was on the principles of responsible development. It has since grown to thousands of members throughout the commercial real estate community — from subcontractors to some of the largest developers in Arizona.

Eastmark includes a partnership between DMB Associates and Marham COntracting Co.

Eastmark includes a partnership between DMB Associates and Markham Contracting Co.

“In 2014 and beyond, Valley Partnership developer companies are the leaders of almost every major commercial real estate project announced, including Marina Heights, the numerous announcements of deals at Eastmark, and Liberty Center at Rio Salado,” says Valley Partnership President and CEO Richard Hubbard.

The members have rallied behind the idea of partnership, Hubbard says.

“These developers use Valley Partnership partners for all construction disciplines related to the project including planning, design, architecture, general contracting, engineering and even law and accounting,” Hubbard says. “Many of those ‘partner-to-partner’ transactions have come from long-standing relationships created through Valley Partnership. I would say that every level of partner in Valley Partnership, from board member to sole proprietor, is participating in the current commercial real estate building activity in the Valley.”

Some companies, such as Evergreen Devco, take the partner-to-partner very seriously.

Valley Partnership Chair of the Board Doug Leventhal is the principal and COO of Evergreen Devco. Though Evergreen has focused much of its recent work in Denver, the company finds exclusive value in partnership with fellow VP members for Arizona projects.

“I can say that for all our Arizona work, we tend to work exclusively with the companies that see the value in Valley Partnership and either are active members or active sponsors,” Leventhal says. “Our general contractors, for example, need to be members or sponsors almost as a prerequisite to getting our business. Our architects, engineers, attorneys and title companies need to be members of Valley Partnership — or have a good reason why they are not! It’s important to Evergreen that we collectively support Valley Partnership since we all benefit from its mission to promote responsible development in the Valley. We are all connected in this unique way.”

Liberty Center at Rio Salado is a partnership between Liberty Property Trust and Markham Contracting Co.

Liberty Center at Rio Salado is a partnership between Liberty Property Trust and Markham Contracting Co.

That unique connection, as DMB Associates President Charley Freericks sees it involves Valley Partnership’s advocacy role for developers as well as a genuine passion for making Arizona a great place to live.

“Valley Partnership understands that real estate isn’t the only driver of the economy,” says Freericks. “We are the beneficiaries of a strong and growing economy and it’s in our interest to make this a great place to live.”

Freericks, who has been a member for 10 years, served on the board of directors, was chairman in 2009, and has sat on multiple committees.

Most of DMB Associates’ partners at the developers’ 6,000-acre masterplanned community of Eastmark – and around the Valley – are Valley Partnership members, Freericks says.

“Over the years, we have worked with so many contractors, consultants and service providers who are members it would be hard to name them all,” he says. “In fact it might be difficult to find any that aren’t members.”

Valley Partnership has multiple avenues for paving those partnerships. There are 10 committees, including one for an annual golf tournament and a community building project. One of the most popular and frequent member events, is the Friday Morning Breakfasts — a monthly morning panel discussion about an industry trend featuring local experts.

Freericks reflected on a breakfast about the impact and trade partnership Arizona has with Canada as a particularly helpful one for his masterplanned communities of Eastmark and Victory at Verrado, which target Canadian homebuyers.

“Valley Partnership attracts important speakers and hosts debates of candidates for state and local offices which helps me make better informed decisions,” he says. “The Valley Partnership advocacy team was a huge help to the Fighter Country Partnership efforts to bring the F-35 mission to Luke. This will impact our economy for generations to come. Valley Partnership’s role as the champion for moderate regulation has impacted all of our properties over the years and will continue to do so.”

Heather Markham, vice president of Markham Contracting Co., says her company has been a member of Valley Partnership since 1992 and is also a Stewardship Sponsor. Markham has attended breakfasts for the last five years and is one of the students in Valley Partnership’s inaugural Young Advocates Program. As a co-chair of the Community Project Committee, Markham says she also appreciate’s Valley Partnership’s commitment to networking and giving back to the community.

“I believe this involvement in the community is critical personally as well as professionally for everyone,” she says.

Markham has been self performing grading, paving and wet utilities civil infrastructure in the Southwest since 1977. Though Valley Partnership has only been around since 1987, Markham says the company has worked with many current Valley Partnership companies for nearly four decades. Partners include DMB Associates (Verrado and Eastmark), Macerich (Sonoran Crossing), Sunbelt Holdings (Vistancia), APS, Grayhawk Development, Lennar, Vintage Partners, MT Builders, HilgartWilson, Pulte, Atwell, Dibble Engineering, Wood Patel & Associates, Hoskin & Ryan, Siteworks, Speedie & Associates, Trench Shore Rentals, Alliance Bank of Arizona and Cemex.

“Valley Partnership plays a very strong role in responsible development of the commercial real estate community and provides an excellent venue for all the stakeholders in the process to come together and discuss issues and concerns as well as success stories,” she says. “This promotes strong partnerships between cities, counties, towns, state, land owners, developers, contractors, architects, engineers and every trade partner involved in making Arizona a great place to live and work.”

ryan

Marina Heights hosts National Fall Prevention Stand Down

Ryan Companies US, Inc., co-developer with Sunbelt Holdings and builder of Marina Heights at Tempe Town Lake, hosted Occupational Safety and Health Administration (OSHA) federal officials and Arizona Division of Occupational Safety and Health (ADOSH) state officials this week to honor the National Fall Prevention Stand Down. The purpose of the “Safety Stand Down” is to raise awareness of preventing fall hazards in
construction
.

ADOSH Assistant Director, Jessie Atencio was on hand to present Ryan Companies with a plaque commemorating the voluntary event. And after other presentations, Ryan Companies Safety Superintendent, Kyle Schoenberger invited all Ryan employees and Marina Heights’ 20 subcontractors to attend fall protection demos and view fall protection products, available for viewing at the site.

“We were happy to welcome OSHA and ADOSH representatives to Marina Heights on this important day. Safety is our number one priority and greater education, such as that being presented at the Safety Stand Down will help avoid accidents in the future,” said Schoenberger.

Recently, Ryan Companies also hosted Tempe and other local fire departments at the Marina Heights site to conduct high-rise building and crane rescue training exercises. Scenarios that were practiced included proper techniques for rescuing a person from a structure under construction, crane rescue procedures and using specialized equipment needed for these types of rescue.

Marina Heights is a 20-acre, $600 million mixed-use development that will include five office buildings leased by State Farm, retail amenities and a 10-acre plaza to be constructed during the next four years. The 2 million square foot project has been under construction for nine months, accumulating more than 250,000 safe man-hours with no loss time to date.

USA Place, the new headquarters in Tempe for USA Basketball, will feature 180,000 SF of retail – including a grocery store on this corner. Cushman & Wakefield of Arizona has the retail leasing assignment.

RECon 2014 to address retail market trends

Courtney Auther Van Loo is Associate Director | Retail Properties at Cushman & Wakefield of Arizona, Inc.

Courtney Auther Van Loo is Associate Director | Retail Properties at Cushman & Wakefield of Arizona, Inc.

The good news for the Metro Phoenix retail market as 2013 ended was that net absorption topped 3 million square feet, up from 2.7 MSF in 2012.

Some of that momentum has carried over as vacancy in the Valley in 1Q 2014 declined 70 basis points over the same period last year to 10.3 percent. There has been more than 53,000 square feet of net absorption year to date with the North Phoenix market leading the way.

What lies ahead for the rest of the year?

Next week’s ICSC RECon 2014 will discuss trends, issues and even provide a look into the crystal ball as more than 32,000 retail real estate professionals converge on Las Vegas. RECon is the global convention for the shopping center industry. Trends and issues to be discussed:

>> The New Math: Online shopping has changed the modern shopper’s habits in adding another avenue to products. The Internet has allowed already time-constrained consumers to shop at all hours of the day with product sometimes arriving at their front door the next day. Many retailers have found ways to market themselves apart from other retailers by offering free shipping, online only offers and more.

Although many retailers continue to see an increase in productivity because of the ease and added shopping hours online shopping presents, we’ve also seen online shopping adversely affect retailers and the bricks-and-mortar developments. The adverse side has been the downsizing, consolidation and retailers closing the once-needed space or being unable to compete with online retailer pricing, thus affecting the way developers move forward with future development size.

>> Revitalizing a Challenged Center: A common trend in Metro Phoenix has been the revitalization of shopping centers and older buildings within our core markets. A number of local developers have found it fortuitous to purchase older buildings. It has become a hobby of sorts to purchase and peel the buildings back to their original state in order to expose the brick and wood tresses the buildings have to offer. By then adding some modern fixtures and anchoring the building with a local restaurant operator, the landlord has increased the rents and property values in the surrounding neighborhoods.

Additionally, landlords have taken advantage of purchasing mid- to high-vacancy shopping centers during the down market in order to reposition them with a new tenant mix and create cash flow. Others have been successful in giving their existing shopping centers a simple facelift and adding a restaurant or two to their tenant mix, thus increasing the rents, demand and property values in the surrounding areas. The tenant emphasis is on local restaurant operators with a mix of some regional and national flair.

>> Outlet retailing … Past, Present and Future: Metro Phoenix has seen the opening of two new outlet malls within the past two years – one in Glendale and one in Chandler. Additional outlets are planned. We can relate this trend locally and in the U.S. to shoppers being cash conscious while still wanting access to the brand names.

In turn, retailers see their sales increase as they’re not only able to access the full price shopper, but the outlet shopper as well while having less rent overhead in their locations. Outlet merchandise prices seem lower than what they are, thus driving shoppers to spend more than they normally would at a full-price store; a win for the retailer.

The outlet trend in Metro Phoenix has begun to affect national retailer’s expansion plans in Arizona. Retailers are beginning to see their outlet locations as competition to their full-priced store options. Consequently retailers are not only paying attention to the distance between their full-price stores, but their outlet locations as well.

>> The New Frontiers … A Look Back, and Forward: We will continue to see operators using social media to increase their sales. Operators see social media as a great resource to let their customers (followers) know of upcoming sales, special offers such as free shipping as well as marketing their merchandise by showing their customers who’s buying their products. We have a handful of local businesses that have seen their sales drastically increase over the past couple of years by using social media to market their products.

Loop 202 - AZ Business Magazine Oct/Nov 2006

Wood Partners to Break Ground on Alta Tempe, 296-Unit Luxury Apartment Building in Tempe

Wood Partners will break ground in early 2014 on Alta Tempe, a 296-unit luxury apartment complex at University Drive and Dorsey Lane near the new Marina Heights, which will be the state’s largest office park when it is completed. Construction of the 270,000-square-foot apartment building, situated on 7.1 acres, should be complete by June 2015. Alta Tempe will begin pre-leasing in third quarter 2014.

The contemporary four-story apartment complex, designed by Womack and Hampton, will be built by Wood Partners. It will include 180 one-bedroom units, 104 two-bedroom units and 12 three-bedroom apartments averaging 892 square feet. The units will have granite countertops, upgraded appliances and vinyl plank flooring; entrances will be buffered by conditioned corridors for energy efficiency. Residents will have access to cutting-edge amenities, including a fitness center, resort-style pool, 8,000-square-foot hospitality-style clubhouse with a living wall system (vertical garden), a four-story observation deck with views of Camelback Mountain and all of northern Phoenix, as well as a few other amenities that cannot be disclosed at this time.

“Other projects in the area are being constructed at bases 40-60% higher than this development and the rents will reflect this disparity as the value proposition at Alta Tempe will be off the charts,” said Todd Taylor, Phoenix developer for Wood Partners. “Its location near downtown, Arizona State University and the new Marina Heights office development—a big game changer in Tempe—is certainly an important part of the story, and residents will be within walking or biking distance to two metro transit stations.”

According to the National Association of Home Builders’ formula to determine the local impact of multifamily housing in typical metro areas, adding nearly 300 rental apartments will generate $23.7 million in local income, $2.5 million in taxes and other revenue for local governments, and 366 local jobs in Tempe.

When it is complete in 2017, Marina Heights will include two million square feet of office space and 40,000 square feet of service retail. State Farm Insurance will locate one of its four nationwide operation centers there. Project developers expect the first buildings to be occupied in mid to late 2015.

Tempe Town Lake July 4th Festival

Tempe lands state’s largest office development deal

The City of Tempe announced today that Ryan Companies US, Inc. and Sunbelt Holdings will develop a site owned by Arizona State University adjacent to Tempe Town Lake, subject to City Council approval of development agreement details in the coming month.

State Farm will lease office space and anchor the multi-use development.

“We are thrilled that Ryan Companies US, Inc. and Sunbelt Holdings have been selected to co-develop and construct the State Farm regional hub,” said John Strittmatter, President of Ryan Companies US, Inc., Southwest Division.

“With retail and recreational amenities on site for State Farm employees and the entire community to enjoy, Marina Heights will become an important icon of the Tempe Town Lake landscape and we are proud to be a part of it.”

The Marina Heights project in Tempe will be the largest office development deal in Arizona history, with more than 2 MSF to be constructed on more than 20 acres. Construction costs are estimated at $600M. Additionally, 40,000 SF to 60,000 SF of retail amenities will complement the transit-oriented development, including food service, coffee shops, restaurants, business services, and fitness facilities.

The site will also feature an approximately 10-acre lakeside plaza, which will be open to the public.

“This is a proud day for Tempe and everyone involved. We are tremendously excited about what the addition of State Farm will mean to our community over the decades to come,” said Tempe Mayor Mark Mitchell. “These employees, buildings, and amenities will further contribute to and showcase the vibrancy of Tempe Town Lake, Mill Avenue, and Arizona State University, and serve as a catalyst for more high-quality development.”

“We are thrilled that State Farm will be expanding in Arizona,” said Gov. Jan Brewer. “The jobs that will be created to make this project a reality will be a tremendous boon to our economy. This is a great example of how our plan to build an Arizona that is attractive to high value employers is hitting the mark.”

The five-building campus will be leased by State Farm and become a hub to include a combination of new hires and existing employees who will provide claims, service, and sales support to State Farm customers.

“State Farm selected Tempe because it has a growing population with skill sets that match our customers’ needs,” said Mary Crego, Senior Vice President, State Farm. “The site along Tempe Town Lake gives our employees access to nearby amenities as well as easy connections to public transportation.”

“We look forward to having State Farm as a neighbor and to working with the company on a variety of programs including employee recruitment and academic programs for their staff,” said ASU President Michael M. Crow.

“State Farm’s decision to lease the land owned by the university immediately adjacent to the ASU Athletic Facilities District is the first major step in the campaign to fund new and renovated sports facilities for the university. The Athletic Facilities District will be home to an exciting mixed-use development reflecting high quality and the best practices of sustainability. A high stature tenant such as State Farm will add to the luster of the district and validates its attractiveness.”

The project is being developed by Ryan Companies US, Inc. and Sunbelt Holdings. Tempe-based architectural firm DAVIS designed the project.

Tempe Town Lake July 4th Festival

Tempe lands state's largest office development deal

The City of Tempe announced today that Ryan Companies US, Inc. and Sunbelt Holdings will develop a site owned by Arizona State University adjacent to Tempe Town Lake, subject to City Council approval of development agreement details in the coming month.

State Farm will lease office space and anchor the multi-use development.

“We are thrilled that Ryan Companies US, Inc. and Sunbelt Holdings have been selected to co-develop and construct the State Farm regional hub,” said John Strittmatter, President of Ryan Companies US, Inc., Southwest Division.

“With retail and recreational amenities on site for State Farm employees and the entire community to enjoy, Marina Heights will become an important icon of the Tempe Town Lake landscape and we are proud to be a part of it.”

The Marina Heights project in Tempe will be the largest office development deal in Arizona history, with more than 2 MSF to be constructed on more than 20 acres. Construction costs are estimated at $600M. Additionally, 40,000 SF to 60,000 SF of retail amenities will complement the transit-oriented development, including food service, coffee shops, restaurants, business services, and fitness facilities.

The site will also feature an approximately 10-acre lakeside plaza, which will be open to the public.

“This is a proud day for Tempe and everyone involved. We are tremendously excited about what the addition of State Farm will mean to our community over the decades to come,” said Tempe Mayor Mark Mitchell. “These employees, buildings, and amenities will further contribute to and showcase the vibrancy of Tempe Town Lake, Mill Avenue, and Arizona State University, and serve as a catalyst for more high-quality development.”

“We are thrilled that State Farm will be expanding in Arizona,” said Gov. Jan Brewer. “The jobs that will be created to make this project a reality will be a tremendous boon to our economy. This is a great example of how our plan to build an Arizona that is attractive to high value employers is hitting the mark.”

The five-building campus will be leased by State Farm and become a hub to include a combination of new hires and existing employees who will provide claims, service, and sales support to State Farm customers.

“State Farm selected Tempe because it has a growing population with skill sets that match our customers’ needs,” said Mary Crego, Senior Vice President, State Farm. “The site along Tempe Town Lake gives our employees access to nearby amenities as well as easy connections to public transportation.”

“We look forward to having State Farm as a neighbor and to working with the company on a variety of programs including employee recruitment and academic programs for their staff,” said ASU President Michael M. Crow.

“State Farm’s decision to lease the land owned by the university immediately adjacent to the ASU Athletic Facilities District is the first major step in the campaign to fund new and renovated sports facilities for the university. The Athletic Facilities District will be home to an exciting mixed-use development reflecting high quality and the best practices of sustainability. A high stature tenant such as State Farm will add to the luster of the district and validates its attractiveness.”

The project is being developed by Ryan Companies US, Inc. and Sunbelt Holdings. Tempe-based architectural firm DAVIS designed the project.

tempe

Ryan Companies US, Sunbelt Holdings To Co-Develop 2 MSF Multi-Use Office Development In Tempe

The City of Tempe announced today that Ryan Companies US, Inc. and Sunbelt Holdings will develop a site owned by Arizona State University adjacent to Tempe Town Lake, subject to City Council approval of development agreement details in the coming month.

State Farm will lease office space and anchor the multi-use development.

“We are thrilled that Ryan Companies US, Inc. and Sunbelt Holdings have been selected to co-develop and construct the State Farm regional hub,” said John Strittmatter, President of Ryan Companies US, Inc., Southwest Division.

“With retail and recreational amenities on site for State Farm employees and the entire community to enjoy, Marina Heights will become an important icon of the Tempe Town Lake landscape and we are proud to be a part of it.”

The Marina Heights project in Tempe will be the largest office development deal in Arizona history, with more than 2 MSF to be constructed on more than 20 acres. Construction costs are estimated at $600M. Additionally, 40,000 SF to 60,000 SF of retail amenities will complement the transit-oriented development, including food service, coffee shops, restaurants, business services, and fitness facilities.

The site will also feature an approximately 10-acre lakeside plaza, which will be open to the public.

“This is a proud day for Tempe and everyone involved. We are tremendously excited about what the addition of State Farm will mean to our community over the decades to come,” said Tempe Mayor Mark Mitchell. “These employees, buildings, and amenities will further contribute to and showcase the vibrancy of Tempe Town Lake, Mill Avenue, and Arizona State University, and serve as a catalyst for more high-quality development.”

“We are thrilled that State Farm will be expanding in Arizona,” said Gov. Jan Brewer. “The jobs that will be created to make this project a reality will be a tremendous boon to our economy. This is a great example of how our plan to build an Arizona that is attractive to high value employers is hitting the mark.”

The five-building campus will be leased by State Farm and become a hub to include a combination of new hires and existing employees who will provide claims, service, and sales support to State Farm customers.

“State Farm selected Tempe because it has a growing population with skill sets that match our customers’ needs,” said Mary Crego, Senior Vice President, State Farm. “The site along Tempe Town Lake gives our employees access to nearby amenities as well as easy connections to public transportation.”

“We look forward to having State Farm as a neighbor and to working with the company on a variety of programs including employee recruitment and academic programs for their staff,” said ASU President Michael M. Crow.

“State Farm’s decision to lease the land owned by the university immediately adjacent to the ASU Athletic Facilities District is the first major step in the campaign to fund new and renovated sports facilities for the university. The Athletic Facilities District will be home to an exciting mixed-use development reflecting high quality and the best practices of sustainability. A high stature tenant such as State Farm will add to the luster of the district and validates its attractiveness.”

The project is being developed by Ryan Companies US, Inc. and Sunbelt Holdings. Tempe-based architectural firm DAVIS designed the project.