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AZRE magazine is published bi-monthly with its in-depth coverage, projects news, economic development issues and other compelling CRE articles that our readers have come to expect.
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Will Hensel Phelps' solar power project reach for the sky in western Arizona?
Sophisticated Senior Living p. 6
Kitchell: Innovative Healthcare
Builder p. 16
Valley Partnership Celebrates
25 Years p. 41
INSIDE
AZRE_MJ12_C1.indd 1 4/27/12 5:38 PM
T E A M W O R K
Success depends on
pu l l i ng toge the r.
At Sundt, our team goes the
extra mile, working with you
to make your project a success.
We combine innovation with
hands-on construction experience
and management expertise
to ensure a winning project
every time.
Arizona Contractor License Nos.:ROC068012-A; ROC068013-B01
Contact: Jeff Fairman(480) 293-30002620 S. 55th StreetTempe, Arizona 85282www.sundt.com
AZRE_MJ12_C2.indd 1 4/27/12 2:25 PM
PHOENIX TUCSON ALBUQUERQUE LAS VEGAS RENO SILICON VALLEy LRLAW.COM
Re: Reinvent Real Estate InvestmentFrom: Island To: International
Holualoa® Companies have changed the landscape of portfolio diversification by retooling real estate investment and holding a fast-paced, strategically unique portfolio of assets in the United States, Mexico and Europe. The partnership between Lewis and Roca and Holualoa creates the right combination of business acumen and legal focus to take a complex deal from negotiation to completion.
Kailua Vil lageTM is a trademark of Kailua Vil lage Business Improvement District and Holualoa® is a registered trademark of Holualoa Arizona, Inc. Al l marks are used with permission.
2 | May-June 2012
AZRE: Arizona Commercial Real Estate is published bi-monthly by AZ BIG Media, 3101 N. Central Ave., Suite 1070, Phoenix, Arizona 85012, (602) 277-6045. The publisher accepts no responsibility for unsolicited manuscripts, photographs or artwork. Submissions will not be returned unless accompanied by a SASE. Single copy price $3.95. Bulk rates available. ©2012 by AZ BIG Media. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without permission in writing from AZ BIG Media.
President & CEO Michael Atkinson
Publisher Cheryl Green
Vice President of Operations Audrey Webb
AZRE: ARIZONA COMMERCIAL REAL ESTATE
EDITORIAL
Managing Editor Michael Gossie
Editor Peter Madrid
Associate Editor Kristine Cannon
Interns
Stephanie Gonzalez | Michelle Lauer | Kevin Ngai
Maria Thompson
ART
Senior Graphic Designer Christin Gangi
Senior Graphic Designer Mike Mertes
Contributing Photographer Cory Bergquist
Intern Mohammed T. Munir
DIGITAL MEDIA
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OFFICE
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ARIZONA BUSINESS MAGAZINE
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Account Managers Michelle McBay | Shannon Spigelman
RANKING ARIZONA
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EXPERIENCE ARIZONA | PLAY BALL
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Account Manager Anita Weldon
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Editor(602) [email protected]
MAGAZINE.COM
Time fl ies when you're having fun
A s I celebrate my second year as Editor of AZRE magazine in June, I ask myself … “Where did the time go?”
It seems as if it was just yesterday that I was trying to learn all I could about vacancy rates, foreign trade zones, REITs, BIM and CMARs … and then write about it.
After almost two years of attending at least 50 commercial real estate-related conferences, fi nancial outlooks, breakfasts, lunches, discussions, you name it … I can honestly say I feel right at home among the many knowledg-able professionals in attendance.
I guess you can teach an old dog new tricks.Speaking of anniversaries, this issue features coverage of a well-respected
advocacy organization (Valley Partnership) and a well-known general con-tractor (Hensel Phelps), which are both celebrating notable milestones.
» Valley Partnership, which proudly calls itself “Th e Valley of the Sun’s Premier Advocacy Group for Responsible Development,” is celebrating its Silver Anniversary — 25 years. Our coverage includes a roundtable discus-sion with six past chairmen and a Q&A with the new chairman.
» Hensel Phelps, a Colorado-based GC with major projects in Arizona, is celebrating its 75th anniversary (more than 30 years in our state). HP is wrap-ping up work on Stage I of the PHX Sky Train at Sky Harbor International Airport. It also has been selected to build a proposed 2,800-foot Solar Tower power station in La Paz County for EnviroMission of Australia.
As for my two-year anniversary celebration … I think I’ll just read up some more on cap rates, GPLETs, permitting regulations …
3101 North Central Avenue, Suite 1070
Phoenix, Arizona 85012
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TOWER OF POWER
May-June 2012TABLE OF CONTENTS
COMING NEXT ISSUE » Statewide real estate update
» Women in commercial real estate
» ABA: Arizona Builders’ Alliance
0604
FEATURES
2 Editor’s Letter Time fl ies when you're having fun
4 New to Market Projects in the pipeline
6 Development Senior and assisted care facilities
take on feel of a resort
14 Project News TI’s keep LGE Design Build busy; work at Cub’s facility set to begin
16 Kitchell A leader in state-of-the-art
healthcare construction
21 Brokerage Th e top sales and leasing transactions in the books
22 Events Who, what & when
23 Newsmakers People & promotions
24 After Hours JLL’s Dennis Desmond
25 Hensel Phelps Celebrating 75 years of building a better world
SPECIAL SECTION
VALLEY PARTNERSHIP 25TH ANNIVERSARY
46 Chairmen's RoundtableSix past chairmen lookback to the future
62 25 Years of LeadershipTh e faces and voices of those who helped guide Valley Partnership
68 Partner Profi les
VP members share thoughts on what makes organization important
� Hensel Phelps is general contractor for a proposed 2,800-foot Solar Tower to be built in La Paz County in western Arizona starting in 2013. Hensel Phelps is celebrating 75 years of innovative construction projects — including many in Arizona. (Renderings: EnviroMission)
16
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3
4 ARIZONA STADIUM — NORTH END ZONE EXPANSIONDeveloper/Owner: University of ArizonaGeneral Contractor: Mortenson ConstructionArchitect: Heery InternationalLocation: 640 N. Vine Ave., TucsonSize: 189,000 SFTh e $56M project includes construction of the new north end zone facility at Arizona Stadium, which will provide upgraded premium seating and fan amenities. Th e work will also provide new facilities for the football program and provide new concourses cross-connect-ing access to the east and west seating section. Expected completion is 3Q 2013.
1 HAYDEN FERRY LAKESIDE PHASE IIIDeveloper: Ryan Companies US, Inc.General Contractor: Ryan Companies US, Inc.Architect: DAVISBroker: CBRELocation: NEC Mill, Ave., and Rio Salado Parkway, TempeSize: 250,000 SFTh e fi nal phase of Hayden Ferry Lakeside will be a 10-story, Class A offi ce tower in Tempe. Th e building design will maintain the same nautical theme as its predecessors, Hayden Ferry Lakeside I and II. It will be the fi rst high-rise to break ground in Downtown Tempe since 2007. Construction is expected to begin in 4Q 2012.
2 BANNER HEALTH VERRADODeveloper: Banner HealthGeneral Contractor: McCarthy Building CompaniesArchitect: SmithGroupJJRLocation: NWC of I-10 and Verrado Way, BuckeyeSize: 12,566 SFTh e $4.5M freestanding outpatient clinic is the fi rst project of a mas-ter plan for an acute care campus on the Greenfi eld site in Buckeye. Subcontractors include Midstate Mechanical, S&H Steel, Echo Can-yon Electrical, Iron Tree Plumbing and Brothers Masonry. Expected completion is 3Q 2012.
3 IRONWOOD CANCER & RESEARCH CENTERGeneral Contractor: TBDArchitect: SmithGroupJJRLocation: 3600 block of S. Rome St., GilbertSize: 25,000Th e $10M project is an expansion of Ironwood Cancer & Research Center’s clinical operations. Th e new facility will be patient-centered and will include multiple modalities, such as medical oncology, ra-diation oncology, surgical urology and clinical trials. Th e facility will have state-of-the-art patient areas, exam rooms, full-service che-motherapy suite, pharmacy and radiation therapy vaults. Expected completion is 4Q 2012.
OFFICE
MEDICAL
1
2
NEW TO MARKET
4 | May-June 2012
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PUBLIC
MULTI-FAMILY
INDUSTRIAL
8 TANGER OUTLET CENTER WESTGATEDeveloper: Tanger OutletsGeneral Contractor: C70 Builders (Minneapolis)Architect: Adams & Associates (Mooresville, N.C.)Location: Loop 101 and Glendale Ave., GlendaleSize: 368,043 GBATh e $100M project will feature more than 80 brand-name retail outlets in an open-air mall setting. Th e building architecture will be based on a modern Southwestern theme of intersecting forms and clean lines. Subcontractors include Markham Contracting, Speedie & Associates, Stormwater Plans, PTR Mechanical, Parsons Electric, Apel Steel and E&K of Phoenix. Expected completion is 4Q 2012.
6 DOWNTOWN PHOENIX HOUSING PROJECTDeveloper: Concord EastridgeGeneral Contractor: hardison/downeyArchitect: Ayers Saint GrossLocation: Roosevelt St. to the north; McKin-ley St. to the south; Fourth St. to the east; Th ird St. to the westSize: 2.9-acre site com-prising 2 parcelsTh e $52M, 2-building, mixed-use project is the fi rst private invest-ing supporting Down-town Phoenix student housing. Plans call for 325 apartment units and 5,000 SF of retail space. Subcontractors include Spectrum En-gineers, Dibble Engi-neering, PK Associates and SmithGroupJJR (landscape architect). Expected completion is 3Q 2013.
5 COLDWATER DEPOT LOGISTICS CENTERDeveloper: Trammell Crow Company General Contractor: TBDArchitect: Butler Design GroupLocation: 1110 N. 127th Ave., AvondaleSize: Phase 1 — 603,863 SFTh e $27M (Phase 1) industrial building will consist of state-of-the-art warehouse design with ample trailer parking and truck maneuverability. Th e 56-acre can accommodate up to 1MSF of cross-dock distribution warehouse space. Expected completion is 4Q 2012.
7 ROOSEVELT CHILD NUTRITION WAREHOUSE & EDUCATION CENTERDeveloper: Roosevelt Elementary School District General Contractor: D.L. Withers ConstructionArchitect: Orcutt|WinslowLocation: NEC 10th St. and Baseline Rd., PhoenixSize: 27,000 SFTh e $4.6M project will include a hydroponic growing area for vegetables and spices, a Tilapia farm and outdoor fruit-bearing trees. Th e multi-purpose facility is designed to not only serve as the hub for the district’s Child Nutrition Department but also serve as an instructional resource to enhance and support Wellness and Nutrition Education within the school district. Food preparation classes will be off ered to RSD stu-dents as well. Subcontractors include CSI, MJ Schneider Plumbing, EF Charles, Th underbird Masonry, Swisher AC, Western Underground, Gunsight and Schuff Steel. Expected completion is 2Q 2012.
RETAIL
5
NEW TO MARKET
EDUCATION
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HEALTHCARE DEVELOPMENT
6 | May-June 2012
BY MICHELLE LAUER
Swanky Seniors
Sophisticated a ssisted l iving a nd s enior c are d evelopments
The indoor common area at Sagewood, 4555 E. Mayo Blvd., in Phoenix, includes high ceilings, fireplaces and the expansive use of natural lighting.
A rendering of Orchard Pointe which broke ground in March in Surprise.
7
a look more like resorts than the traditional ‘old folks home’
As America’s senior population swells to an unprecedented volume — 62 million seniors, almost double the number of seniors at the turn of the century — luxury senior care and assisted living development is on the rise in Arizona.
Th ankfully, assisted living no longer means sending Mom where bingo is all she looks forward to. Many developers in the assisted living fi eld are building contemporary, sophisticated senior care facilities to accommodate expensive tastes and active lifestyles. Th ese residencies are opulent and lavish, more like resorts than the gloomy, industrialized “old folks homes” of decades past.
When considering livability factors, such as decreased mobility or heightened sensitivity to cold, Arizona’s fl at terrain and temper-ate climate are a natural draw for seniors. In the past several years, senior housing has been the most active type of development in Scottsdale.
Anticipating the infl ux of a mammoth demographic, several senior care facilities are in the planning and developmental stages.
Orchard Pointe, a 104-unit assisted living apartment facil-ity in Surprise, broke ground in March. Developed by Heritage Management Services and Telis Commercial Real Estate, Orchard Pointe will open in spring 2013.
Mark Huey, president of Telis Commercial Real Estate, says Orchard Pointe will “bring a Midwestern ethic of care and concern to the Valley, packaged in a high-luxury lifestyle.”
Mountain West Contracting is general contractor and RAR
Architects is the architect. In Tucson, Th e Freshwater Group is building a new assisted living
community called Hacienda at the River. Hacienda at the River will provide remarkable taste and services,
from greenhouses on site to serve organic foods in dining facilities to an all-pets-welcome policy.
Hacienda will also raise horses on site for equine therapy for resi-dents with memory affl iction, dementia, and other animal therapy aids.
David Freshwater, president of the Freshwater Group, says the revolution in senior care is palpable.
“Our spas, workout rooms, and cafes look more like Starbucks and LA Fitness rather than the traditional old folks homes,” he says. “Th ey really, truly have changed in design to refl ect the diff erent clientele than who we’ve been serving the last 25 years.”
Hacienda at the River is still in the design phase. “It will be assisted living, Alzheimer’s or what we call ‘memory care,’ as well as skilled nursing and rehabilitation,” Freshwater says.
Maravilla Scottsdale, which was scheduled to open in May, will also cater to epicurean tastes. Boasting multiple landscaped court-yards, a cinema, Internet lounge, chip-and-putt golf course, spa, and multiple dining venues, Maravilla Scottsdale is indisputably of the new generation of assisted living.
Th e 120,000 SF facility off ers 178 apartment-style living units and 39 villa-type living units, plus common areas such as the lodge,
8 | May-June 2012
HEALTHCARE DEVELOPMENT
“People have all kinds of choices in terms of size and location, and they really can customize what they would like. There’s a vibrancy embedded in the neighborhood and the greater community and that creates excitement and the opportunity to continue to be educated. We offer innovation, fi tness and overall wellness.” — Sharon Harper, The Plaza Companies
9
Vi at Silverstone in Scottsdale is a 2011 RED Award winner.
HEALTHCARE DEVELOPMENT
The indoor swimming pool at Sagewood in Phoenix is one of numerous amenities at the 878,559 SF community, built in 2010 by The Weitz Company.
Building Successful Arizona Projects for 26 Years480.497.2300 • fax: 480.497.9610 • www.bjerkbuilders.com
License B1-088897
FortitudeA contractor’s reputation for excellence grows by completing projects on time, within budget, and by continually exceeding expectations.
Fortitude-HalfPg_Layout 1 12/13/11 7:40 AM Page 1
10 | May-June 2012
fi tness center, commercial kitchens, and an indoor swimming pool. Th e Weitz Company is building Maravilla Scottsdale. It’s also the
general contractor for Sagewood, a multi-phase retirement commu-nity comprised of 12 casitas, four villas and eight buildings hous-ing independent living, assisted living and skilled nursing units in North Phoenix.
Sagewood off ers diversity in the levels of care provided, often eas-ing the transition from minimal to increased living assistance.
Future phase expansions are planned to complete this site’s devel-opment. Once completed, the community in its entirety will carry the promise of progressive living in an environment that empha-sizes choice, fl exibility and independence for its residents, says Kelly Billings of Th e Weitz Company.
Scottsdale’s Th e Colonnade, another resort-style assisted living facility, opened in 2004. Now, Th e Colonnade will break ground later this year on the second phase of construction, adding villa type housing units to its existing residencies.
Th e developer behind Th e Colonnade is Sun Health, an up-and-coming player in the healthcare industry.
“Our standard fi nishes are high end, including full GE appli-ance packages, wood line window covering, and ceramic tile fl oor-ing,” says Sharon Grambow, Sun Health’s senior living coordinator. “Residents can select premium package upgrades, including quartz-
The common dining area at Vi at Silverstone. Summit Builders was the general contractor and DAVIS
was the architect.
The Alter Group thinks the moment is now. When corporations can access debt for 1%; when operating efficiencies and rental rates are driving relocation; when manufacturing and exports are picking up; when small businesses are hiring at a rate of 250,000 new jobs a month. This is the time for a developer with a 55-year track record and a balance sheet that hasn’t wavered over five recessions. The time for new Class A office at the intersection of opportunity and operational excellence. Like our new 1,000-acre Algodon Center in Phoenix, AZ, which brings premier corporate office space to the Loop 101.
Contact Kurt Rosene at 480.302.6630 or visit alterwestvalley.com.
THE POWER OF
NOW
11
HEALTHCARE DEVELOPMENT
12 | May-June 2012
ite countertops and cherry cabinetry tile with diamond metal deco-rative inserts.”
Belmont Village Scottsdale, a three-story assisted living apart-ment building, contains of 136 units — 111 independent living apartments and 25 dementia care units — at the 100,000 SF facil-ity. It sits on a 4.17-acre site with a courtyard pool and walking path.
Houston-based Belmont Village AP has 20 assisted living facili-ties in seven states, and opened its Scottsdale location in February. Th is project cost more than $30M, says Belmont CEO Patricia Will. Located southeast of 100th St. and Frank Lloyd Wright Blvd., the community was built by W.E. O’Neil Construction.
Vi at Silverstone also opened in 2010 on 32 acres and off ers 270 independent-living units to Northeast Valley seniors. Developed by Th e Plaza Companies, built by Summit Builders and designed by DAVIS, the $195M project is all about individual preferences.
More importantly, says Sharon Harper of Th e Plaza Companies, it off ers seniors an abundance of choices.
“People have all kinds of choices in terms of size and location, and they really can customize what they would like,” Harper says. “Th ere’s a vibrancy embedded in the neighborhood and the greater commu-nity and that creates excitement and the opportunity to continue to be educated. We off er innovation, fi tness and overall wellness.”
Sagewood is a prime example that senior and assisted living facilities no longer resemble the gloomy and drab 'old folks homes' built years ago.
A MASS SCALE EARTHWORK CONTRACTOR LEADING THE INDUSTRY IN:
EXCAVATION • BACKFILL
SHORING • SHOTCRETE• TRUCKING
RENEWABLE ENERGY INSTALLATIONS
CONCRETE & ASPHALT RECYCLING
3045 S. 7TH STREET /// PHOENIX, AZ 85040
(602) 233-3339 /// ROC 200645 CLASS A
WWW.BUESINGCORP.COM
MOVING THE EARTH FOR OUR CLIENTS
“Simply the Best”
JUNE LUNCHEONFriday, June 22nd
www.ArizonaCrew.org
Arizona Biltmore Resort, 2400 E. Missouri Avenue
Registration
Deadline
Friday, June 15, 2012
602.712.9822
AZCREW Joins the State Bar of Arizona’s
State Bar of Arizona’s 2012 Convention keynote guest speaker Alison Levine is no stranger to risk taking. She has survived sub-zero temperatures, hurricane-force winds, sudden avalanches, and a career on Wall Street.
In January 2008, she made history as the first American to complete a 600-mile traverse from west Antarctica to the South Pole following the route of legendary explorer Reinhold Messner.
Her professional career has encompassed health care, technology and finance. After earning her MBA from Duke University she moved to New York to work for investment banking firm Goldmans Sachs. In 2003, she left Wall Street to serve as Deputy Finance Director for Arnold Schwarzenegger in his successful bid to become Governor of California.
Levine currently service as an adjunct professor at the United States Military Academy at West Point in the Department of Behavioral Science & Leadership. She also has her own consulting firm,
Daredevil Strategies, which specializes in organizational effectiveness, leadership development and team dynamics.
$55 per Member | $55 per Non-member
BUSINESS LESSONS FROM THE LEDGE
finance. After earning her MBA from Duke University she moved to New York to work for investment
13
14 | May-June 2012
CONSTRUCTION: PROJECT NEWS
LGE BEGINS WORK ON QUARTET OF TI PROJECTSLGE Design Build has begun work on four tenant improvement
projects, including a renovation of the popular Valley eatery Lolo’s Chicken & Waffl es. LGE’s projects include: construction on a 35,200 SF offi ce TI for Integrated Device Technology in Tempe; construc-tion on a 23,643 SF offi ce TI for Child & Family Support Services in Phoenix; a 17,607 SF major manufacturing expansion for Galco International in Phoenix; and a 4,200 SF restaurant renovation for Lolo’s Chicken & Waffl es in Phoenix.
HARDISON/DOWNEY DONATES SERVICES TO GALLERY@CITY HALL hardison/downey construction inc. played a signifi cant role in
building out the new Gallery@City Hall, an art gallery that features rotating exhibitions at Phoenix City Hall. As a nearly pro-bono proj-ect, hardison/downey donated its services to ensure the space was ready for its inaugural exhibit, which celebrates the cultural legacy that Phoenix residents began building nearly a century ago. Th e space features rotating exhibitions from the city’s historic and con-temporary art collection, and is free and open to the public from 10 a.m. to 2 p.m. Monday through Friday. hardison/downey is one of approximately 40 businesses and residents that contributed to the privately funded eff ort.
WORK BEGINS IN EARNEST AT CUBS NEW SPRING FACILITYRiverview Golf Course closed its doors in March as work began
for the Chicago Cubs new spring training complex in Mesa. Initial work will include the salvaging and relocation of about 300 trees. Riverview Park closed on April 2, and the softball fi elds are sched-uled to close June 28. Once that is done, major construction work at the $99M will commence. Hunt Construction is the general contrac-tor; Populous is the architect.
MCCARTHY BUILDING CHANDLER’S 30TH ELEMENTARY SCHOOLMcCarthy Building Companies is in the process of completing the
Chandler Unifi ed School District’s 30th elementary school, Carlson Elementary School, in southeast Chandler. Th e $12.4M, K-6 school will have room for 950 students. Th e 80,000 SF building will include a gym/multipurpose room, media center, classrooms and offi ce space. HDA Architects Inc. is the architect and subcontractors include Midstate Mechanical, Suntec Concrete Inc. and Hawkeye Electric. Two other projects of note: McCarthy recently completed a new mul-tipurpose room and kitchen facilities at the Arcadia Neighborhood Learning Center that is undergoing a complete remodel. When com-pleted next fall, the $14.8M project will include a 62,000 SF, 2-story building. McCarthy and DLR Group are combining their eff orts on the West-MEC Phase II maintenance building. Th e $3M, 18,900 SF project is the addition of a pre-engineered building at the school in Glendale.
DPR PROJECTS INCLUDE WORK WITH BANNER, EBAYDPR Construction has been awarded the Banner Boswell Chiller
Replacement project in Sun City and the eBay Quicksilver project in S. Jordan, Utah. DPR is working with Affi liated Engineers on the $1.2M installation of a new, 750-ton chiller and 750-ton heat exchanger, new plumbing and new electrical service for the chiller and support equipment at Banner Boswell. Expected completion is 2Q 2012. DPR is working with Winter Street Architects/AHA Consulting Services on the high-density data center that includes a 130,000 SF shell and 10,000 SF of whitespace built out in the fi rst phase. Expected completion is 2Q 2013.
KITCHELL BREAKS GROUND AT PREMIUM OUTLET MALLKitchell broke ground as general contractor of the $70M, 360,000
LGE Design Build's 3,643 SF offi ce tenant improvement project for Child &
Family Support Services in Phoenix.
CONSTRUCTION
15
SF Phoenix Premium Outlet adjacent to the Wild Horse Pass Hotel and Casino on the Gila River Indian Community. Th e single-level village style setting will feature 90 store fronts in 9 buildings. It will include outdoor pedestrian courtyards, but there will also be suf-fi cient coverage for all-weather shopping. Th e project is expected to create more than 300 construction jobs over the next year. Expected completion is 2Q 2013. Architects Orange is architect of the project.
AIID MOVES INTO NEW FOUNTAIN HILLS FACILITYTh e American Institute of Interior Design recently relocated from
an outdated space it occupied for the past 23 years and is now in a new facility in Fountain Hills. Th e $1M (suite value and tenant improvement) 4,400 SF project was developed by GMK Building and Development. General contractor was George Kasnoff and architect was Colin Edward Slais. Th e school design merges classical with contemporary styling in an open fl oor plan that includes cement fl ooring, a refl ected ceiling plan sculpted at four heights and 37 pan-orama view windows.
PHOENIX ARCHITECTURAL FIRM HELPS DESIGN MOB MUSEUMPhoenix architectural fi rm Westlake Reed Leskosky was the
lead design team behind the $42M Mob Museum in Las Vegas. Th e 40,000 SF historic 1933 U.S. Post Offi ce and Federal Courthouse includes 17,000 SF of exhibit galleries on three fl oors, including the restoration of a historic courtroom, famous as the site of the Kefauver Committee hearings that marked the exposure of orga-nized crime and the beginnings of federal prosecution in the early 1950s.
BILTMORE ON THE LAKE UNDERGOES $1M RENOVATIONBiltmore on the Lake, 11050 N. Biltmore Dr. in Phoenix, under-
went a $1M renovation with J&L Construction serving as the gen-eral contractor. Biltmore on the Lake is a 420-unit multi-family property developed by B.H. Properties.
ON THE DRAWING BOARDLandmark Properties of Athens, Ga. and Chicago-based Harrison
Street Real Estate Capital LLC plan to develop the Retreat, a 774-
bed luxury, student cottage project near 22nd St. and Park Ave. in Tucson. It will serve University of Arizona students and is expected to open in time for the 2012 fall semester. ... Zaremba Residential of Ohio plans to develop a 420-unit luxury apartment complex near Indian School Rd. and Goldwater Blvd. in Scottsdale. Plans call for a 5-story complex. ... JLB Partners of Dallas purchased ±9.7 acres in Scottsdale and plans to build a 369-unit luxury apartment commu-nity of the former Portales Place property. Sale price was $13.87M. ... Alliance Residential Co. plans to build a 259-unit apartment commu-nity behind the Scottsdale Waterfront mixed-use project at the SWC of Scottsdale and Camelback roads. Broadstone Scottsdale Waterfront LLC paid $13.5M for the 3.35-acre parcel. ... A Charleston, S.C. compa-ny plans to develop a 370-unit apartment complex within the Desert Ridge community in northeast Phoenix.
CONSTRUCTION: P&Z
TOWN OF BUCKEYETh e Town of Buckeye is requiring new or increased develop-
ment fees related to the Development User Fee Schedule. Th e new fee schedule is to be presented to the Town Council May 15. For more information, visit the Town Development Services website at buckeyeaz.gov or call (623) 349-6211.
MARICOPA COUNTYMaricopa County is proposing a Text Amendment (CPA2011010)
that will redefi ne a “Major” Comprehensive Plan Amendment by raising the acreage threshold from 100 acres or less to more than 640 acres. For more information, contact Robert H. Kuhfuss at (602) 506-3301. Th e proposed Text Amendment was tentatively scheduled for the April 11 Board of Supervisors hearing.
CITY OF AVONDALETh e City of Avondale is completing an updated version of its
General Plan. Th e Avondale General Plan 2030 was to be pre-sented to the City Council on April 2 for possible approval. Th e General Plan 2030 update is scheduled for a citywide vote for adoption on Aug. 28. For more information, visit the City website at ci.avondale.az.us.
CITY OF PEORIATh e City of Peoria secured a new long-term lease agreement with
the Seattle Mariners and San Diego Padres, keeping the Peoria Sports Complex as the teams’ spring training site up to 2034. Th e Peoria Eighty Th ree Arrowhead Entertainment District, where the Peoria Sports Complex is located, may positively benefi t from the lease renewal. For more information about the Entertainment District, visit p83az.com.
P&Z column compiled by Dave Coble and Karl Woodard, MEUP, with Coe & Van Loo Consultants Inc. cvlci.com
The AIID's recent relocation in Fountain Hills included $1M in tenant
improvements.
16 | May-June 2012
With apologies to the sage Buckminster Fuller, the technology that is being developed for construction is being done so for all the right reasons: to enhance quality, increase speed, decrease waste, save money and boost safety.
On the current, and extensive, renovation of Chandler Regional Medical Center, which features 180,000 SF of new construction anchored by a 5-story tower, Kitchell is harnessing the latest technol-ogies, and refi ning new ones, that will continue to evolve as construc-tion unfolds until the opening in spring 2014. Th e project began with evidence-based design of the re-envisioned hospital featuring a tri-angle-shaped bed tower and a complete reorientation of the entrance.
Some of the challenges facing the construction team include reori-enting the main entrance, extensive infrastructure work, upgrading the central plant, doubling the emergency room and an intricate kitchen renovation — all while patients continue to receive unin-terrupted care with no risk of infection. Fortunately, Kitchell has teamed with other professionals eager to utilize the latest technol-ogy to streamline the building process while enhancing quality and preserving safety. And it certainly helps that the entire team is com-mitted to tearing down the traditional “wall” between the design and construction sides, which is a win-win-win (owner, designer, con-struction fi rm — not to mention the building’s inhabitants) for all.
An integrated team was established from the start that includes
owners, architects, engineers, facility users, subcontractors and sup-pliers. Here are some tactics the team is deploying to achieve success:
Virtual model created three years outFrom the beginning, Kitchell, architect Orcutt | Winslow, Van
Borem and Frank, Paragon and LEA Engineers designed and coor-dinated the project utilizing the most up-to-date BIM software. Integrating Archicad and REVIT into a federated model of the building (include an accompanying image) yielded a virtually con-structed facility three-plus years in advance of the tower receiving its fi rst patient.
Continuous collaboration courtesy of the Human Factor
At the job site, a free-fl owing workspace complete with design stu-dios and interactive spaces facilitates innovation and consolidates the creation of intellectual property and management of construction. All of the project’s principal players are empowered to make decisions and to commit resources on the spot, all in the same room, to keep momentum moving forward. Work studios are defi ned by activities to be tackled, not disciplines. Th is co-location “no silos” approach breaks down traditional barriers between engineers, designers and construction personnel while stimulating dialogue and innovation.
A Lean, Mean Construction MachineTransformative technology revolutionizes hospital construction
Examples of Kitchell’s use of cutting edge Building Information Modeling (BIM)
software include the Banner Heart Hospital cath lab wireframe (above) and Phoenix
Children’s Hospital (right).
COMPANY PROFILE: KITCHELL
“Humanity is acquiring all the right technology for all the wrong reasons.” — R. Buckminster Fuller
17
Lean and streamlinedEach step of the building process is analyzed to promote continu-
ous and reliable workfl ow throughout and identify ways to avert pos-sible clogs in the project stream. As the project moves from design to construction, Kitchell is using the earlier planning and knowledge of technology to make the construction process as lean as possible. Pull planning, bringing subcontractors into the scheduling process, has been critical.
Early BIM planning is setting the stage for prefabrication of interior corridors, systems and bathrooms. Th is is not your grand-father’s prefabrication — this is highly sophisticated off -site, con-trolled building of highly complex and technical components which, once built, are literally “plug and play.”
The phi losophy behind this strateg y is to maintain qual-ity and increase speed of construction whi le decreasing waste.
Full-scale (foam or wood) mock-upsKitchell will construct a full-scale mock-up of the prefabrication
areas to demonstrate not only what the fi nished rooms will look like but also what it will feel like to physically experience the spaces. Even the smallest details were designed in REVIT to enhance the authenticity of the fi nal mock-up.
In the fi eldVela Systems enables real time data to be gathered and tasks
assigned and transmitted right from where the work is happening via Kitchell’s mobile application on iPads. Th ere is no distinction between in-the-offi ce and in-the-fi eld. RFIs, submittals, project specifi cations, drawings, etc. are available to everyone — including owners and subcontractors — for immediate, actionable informa-tion. Being able to identify and communicate potential issues saves time- and labor-intensive, costly rework caused by incomplete or old information.
BIM kiosks — 24/7 access to information without a computer
Once the construction of the new patient tower is in full swing, several BIM kiosks will be activated so subcontractors will be able to pull up documents and the latest coordinated models throughout construction. Th ese are all housed in a digital archive.
Decades ago, even just a few years ago, the type of technologies deployed to make design and construction a seamless, fl awless pro-cess were virtually unheard of. But without these advancements, the world of commercial design and construction would involve much more guesswork and risk. In today’s building world, the right tech-nologies are being deployed for the right reasons.
“Humanity is acquiring all the right technology for all the wrong reasons.” — R. Buckminster Fuller
18 | May-June 2012
1. BANNER DESERT MEDICAL CENTER ENDOVASCULAR/HYBRID ORDeveloper: Banner HealthArchitect: HKS, Inc.Location: 1400 S. Dobson Rd., MesaSize: 3,442Construction includes a new business cen-ter and offi ce area for the cathlab, upgrad-ing three cardiac catherization recovery units to fi ll PACU bays, and renovation of the CVICU waiting area to create a new bathroom, conference room and offi ce. Th e Hybrid OR is equipped with new Siemens Artis Zeego Endovascular Imaging Equipment. Subcontractors include Comfort Systems, Parsons Electric, NKW, ISEC, Spectra Flooring, JMH, DH Pace and Barrett Homes. Expected completion is 2Q 2012.
2. PHOENIX CHILDREN’S HOSPITALDeveloper: Phoenix Children’s HospitalArchitect: HKS Inc.Location: 20th St. and Th omas, PhoenixSize: 750,000 SFTh e Phoenix Children’s Hospital’s new 11-story pediatric tower enables it to serve
its patients with 168 new beds, as well as high-quality outpatient care in a new clin-ics houses on site. PCH is Kitchell’s largest project in the healthcare market at a cost of $538M. It was completed four months ahead of schedule and $48M under budget. Opened in October 2011.
3. CHANDLER REGIONAL MEDICAL CENTER PATIENT TOWERDeveloper: Dignity HealthArchitect: Orcutt | WinslowLocation: 475 S. Dobson Rd., ChandlerSize: 180,000 SFWith the Chandler Regional Medical Center reaching a critical level of high occupancy that demands future growth, CRMC is proposing a $125M expansion of Tower C to increase the number of acute care beds, modernize 1980s era support areas, and resolve parking needs. Expected completion is 4Q 2014.
4. DIAMOND CHILDREN’S MEDICAL CENTERDeveloper: University of ArizonaArchitect: NTD ArchitectureLocation: 1501 N. Campbell Ave., TucsonSize: 315,000 SF
Kitchell had previously completed a 5-year remodel and expansion at the UMC campus in Tucson. It included numer-ous updates to the existing space as well as more than 223,500 SF of new space. Improvements totaling $124M included a 215,000 SF, 6-story bed tower vertical addition. Th ree fl oors of the new tower were built out in Phase I, and three were initially shell space before becoming southern Arizona’s fi rst children’s hospital, which opened in September 2010.
5. PHOENIX CHILDREN’S SOUTHWEST VALLEY CENTERDeveloper: Ensemble/DevmanArchitect: HKS Inc.Location: Avondale Blvd. and McDowell Rd., Avondale Size: 35,344 SFTh is $8.5M project will complement chil-dren’s health services already in the com-munity. Th e clinic will feature 25 patient rooms, two treatment rooms, X-ray, ultra-sound, MRI, 6-bed triage, and on site lab services. Expected completion is 1Q 2013.
Prescription for Success: Healthcare Projects
Kitchell, winner of the 2012 RED Award as General Contractor of the Year, is one of the premier construction companies when it comes to building healthcare facilities. A look at some of Kitchell’s top healthcare projects in use or under construction:
1
2
3
4
5
COMPANY PROFILE: KITCHELL
DELTA DIVERSIFIED
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Electrical Contractors
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20 | May-June 2012
QTechnology is playing an important role in today’s construction market. What are some of the latest advancements you’re seeing utilized to make building better?
A: We’ve seen remarkable advances with respect to building information model-ing (BIM) technologies. Th e capacity to share information effi ciently has enhanced our abil-ity to collaborate with owners and architects. Tablets, iPads, laptops and smartphones are commonplace — the line between design and construction has blurred. And I’ve been very impressed with the caliber of the young people who have chosen construction as a career. Th eir aptitude in leveraging the various technologies are enhancing our capacity to service our customers.
QHow has Kitchell developed such a strong presence in healthcare? A: I think that we’ve managed to develop strong relationships with our customers
over the years. For example, we have worked on the hospital campuses that are now part of Banner Health since 1962. Th ose types of relationships have helped us anticipate many of the challenges that face healthcare providers in our marketplace. We see ourselves as strategic partners.
QAre you seeing signs of promise in Arizona’s commercial construction industry?A: Despite Arizona’s oversupply in most market sectors of the built environment
and the fact that we will likely be lagging most areas of the country in terms of eco-nomic recovery, we are seeing more activity in 2012 with a number of our design partners. Our development company is also seeing more activity. I see that as a very positive sign and I am optimistic.
QHow has Kitchell managed to stay successful during the past fi ve years?A: Because of our diversity, we have been able to remain nimble and adaptive to
the marketplace. Th is is what makes us unique. Th e size of our company — and the fact we’re employee-owned — is perfectly suited to be fl uid and fl exible, to be able to adjust workloads to exactly where we need to be at any given moment.
Dan Pierce has had a hand in the construction of numerous commercial projects through-out the Southwest, and has been with Kitchell for more than 30 years, having joined the company right out of college. As President of Kitchell Contractors, Pierce oversees divisions, including everything from renewable energy and healthcare to custom homes and medical technology planning.
Pierce has a bachelor’s degree in construction from Arizona State University. He served on the Accreditation Review Board and the Department Advisory Council when the con-struction management program was established at Northern Arizona University. An ASHE-Certifi ed Healthcare Builder, he is on the Board of Barrow Neurological Foundation, has served on the Board of the Foundation for Blind Children and is involved in the American Society for Healthcare Engineering.
Q&A: President Dan Pierce
COMPANY PROFILE: KITCHELL
21
BROKERAGE
SALES
PHX INDUSTRIAL
�� Cassidy Turley BRE Commercial complet-ed the sale of a ±15,570 SF warehouse at 15270 N. 83rd Place. NAKD Holdings, LLC purchased the property for $1.3M. Paul Boyle and Rick Danis with Cassidy Turley’s Capital Markets Group executed the sale on behalf of the seller, BOKF, N.A. Bill Bay-less with CBRE represented the buyers.
PHX MULTI-FAMILY
�� CBRE negotiated the sale of San Portella Apartments, a 308-unit luxury community at 2155 S. 55th St., Tempe. CBRE’s Tyler Anderson, Sean Cunningham and Asher Gunter represented the seller, Apartments at Fountainhead LLC of Des Moines, Iowa, a joint venture between Principal Real Es-tate Investors and Mark-Taylor Inc., in ne-gotiating the $45.1M sale.
�� Pathfinder Partners LLC of San Diego bought the Academy Apartments, a 96-unit property at 3626 N. Fifth Ave. Brian Smuckler and Jeff Seaman of CBRE rep-resented the buyer and the seller, Janna Holdings LP of Santa Monica, Calif., in ne-gotiating the $4.07M sale.
PHX OFFICE
�� CBRE completed the $86M sale of Hayden Ferry Lakeside II, a 12-story Class A multi-tenant office building at 60. E. Rio Salado Parkway in Tempe. CBRE’s Brad Anderson and Bryan Taute, along with Kevin Shan-non, Todd Tydlaska and Ken White in the firm’s El Segundo, Calif. office, represented the undisclosed seller. Jim Fijan in CBRE’s Phoenix office represented the buyer, an affiliate of Parkway Properties, Inc.
�� BPG Properties, Ltd. acquired Lincoln Towne Centre, a 223,605 SF, Class A office complex in Scottsdale for $34.25M from Lincoln National Life Insurance Company. The acquisition is the first that BPG has made on behalf of BPG Investment Part-nership IX, L.P., its newly formed, value-add real estate fund.
PHX RETAIL
�� Westwood Financial Corp. sold Olive
Square, an 86,225 SF retail center in Glen-dale, to North American Realty Acquisition Corporation for $6.3M. Westwood Finan-cial was represented by Jan Fincham and Patrick Dempsey of Lee & Associates.
PHX LAND
�� Mike Schwab of Land Advisors Organiza-tion the buyer and the seller in a 180.22-acre, $3.063M transaction for property on the W/SWC of Reems Rd., and Peoria Ave., Litchfield Park, Ariz. The buyer was Virgin Farm V, LLC; the seller was Peoria 180 De-velopment, LLC.
TUC OFFICE
�� Walter Hoge purchased 17,331 SF at 205-215 W. Giaconda Way from Giaconda Tuc-son, LLC for $1.015M. Tom Nieman and Bob Kaplan with PICOR represented the buyer; Mark Biery with Prudential Foot-hills Real Estate represented the seller.
TUC INDUSTRIAL
�� 20th Street 691, LLC purchased the 31,962 SF building at 1440 S. Euclid from Cham-pion Shuffle Board LTD. Patrick Welchert, Russ Hall and Rob Glaser with PICOR han-dled the deal.
�� 3455 S. Palo Verde LLC bought a 20,552 SF building, 4725-4755 S. Coach Dr., from Forell LLC for $900,000. PICOR’s Rob Gla-ser represented the seller; Tim Healy and Bob Delaney, CBRE, represented the buyer.
LEASING
PHX LEASING
�� MiTek Industries, Inc. leased 259,200 SF at 7890 W. Lincoln St. in Phoenix. The 10-year deal was signed the beginning of February with a tentative move-in date of May. The build-to-suit manufacturing building broke ground in January on a 15-acre parcel in the Tolleson industrial sub-market. The structure will be the inaugural building for the planned 149-acre Tolleson Corporate Park, which will continue to be developed with industrial mixed-use structures. Payson MacWilliam and Don MacWilliam of Colliers International rep-resented both the tenant and the landlord.
�� Sealy, Inc. leased 120,801 SF at the 5-Star distribution center in Phoenix. The ten-ant will occupy a portion of the 251,668 SF industrial building at 125 S. 67th Ave. The lessee was represented by Dev Gupta of UGL Services, Inc. The landlord, F-Star 67th Avenue LLC, was represented by An-thony Lydon and Mark Hertzberg of Jones Lang LaSalle. JLL also handled the sale of the building for $1.8M.
�� Cushman & Wakefield negotiated a 114,000 SF industrial lease at Clarion Partners’ Central Arizona Distribution Center in Casa Grande, one of the larg-est lease commitments in years for Pinal County. Mid-States Services, a wholesale/retail distributor, will relocate its regional operation.
�� Cushman & Wakefield’s Mark Detmer, Bo Mills, Will Strong and Jackie Orcutt serve as exclusive leasing agents for the 581,038 SF property. Josh Wyss of Cassidy Turley BRE Commercial served as tenant broker in the long-term lease, which carries an ag-gregate value of nearly $2.6M.
�� Newmark Grubb Knight Frank represent-ed Mitel in a 10-year lease for 83,264 SF of office space at Riverview Point in Mesa for its U.S. Headquarters. Robert Ste-phens, Kurt Saulnier and Tricia Gumulka of the Industrial Group represented Mitel in conjunction with Steven Morgan of the Atlanta office.
�� CBRE negotiated a 25,297 SF lease at San Tan Tech Center, 145 S. 79th St., Chan-dler. Innovations, Chandler’s biotechnol-ogy incubator site, expands to more than 63,000 total SF. Luke Walker, David Carder and Nick DiPaolo of CBRE represented the landlord, Texas-based Capital Commercial Investments Inc. in the 12-year deal. Ten-ant is the City of Chandler, which was rep-resented by Mark Detmer and Bo Mills of Cushman & Wakefield. TUC LEASING
�� TPS Builders, LLC leased 12,664 SF at 2699 E. Valencia from Palice Investments 2699, LLC. Rob Glaser, Industrial Special-ist with PICOR Commercial Real Estate Services, represented the landlord. Paul Hooker, also of PICOR, represented the tenant.
22 | May-June 2012
EVENTS & SEMINARS TRADE ORGANIZATIONS
ABA Arizona Builders’ Alliance Phx: 602-274-8222 Tuc: 520-881-7930 · azbuilders.org
ACA Arizona Commerce Authority602-771-1100 · azcommerce.com
ACA Arizona Contractors Association602-246-8627 · azca.com
ACT Alliance of Construction Trades 520-624-3002 · actaz.net
AGC Associated General Contractors of America602-252-3926 · agc.org
AIA American Institute of Architects 602-252-4200 · aia-arizona.org
AMA Arizona Multi-Housing Association 602-224-0135 · azama.org
APA Arizona Planning Association602-866-7188 · azplanning.org
ASA American Subcontractors Association of Arizona 602-274-8979 · asa-az.org
AAED Arizona Association for Economic Development 602-240-2233 · aaed.com
AZCREW Arizona Commercial Real Estate Women arizonacrew.org
BOMA Building Owners & Managers Association 602-200-3898 · bomaphoenix.org
CORE CoreNet Global Desert Mountain623-581-3597 · corenetdesertmtn.org
DPP Downtown Phoenix Partnership 602-254-8696 · coppersquare.com
EVP East Valley Partnership 480-834-8335 · evp-az.org
GPEC Greater Phoenix Economic Council 602-256-7700 · gpec.org
ICSC International Council of Shopping Centers646-728-3800 · icsc.org
IFMA International Facility Management Associationifmaphoenix.org
IREM Institute Of Real Estate Management602-253-1852 · iremphx.org
LAI Lambda Alpha International lai-phx.org
MPA Metropolitan Pima Alliance520-878-8811 · mpaaz.org
NAIOP National Association of Industrial & Offi ce Properties 602-230-1645 · naiop-az.org
PCA Phoenix Community Alliance 602-254-7477 · phoenixcommunityalliance.com
SMPS Society for Marketing Professional Servicessmpsarizona.org
TREO Tucson Regional Economic Opportunity 866-600-0331 · treoaz.org
ULI Urban Land Institute 480-449-7920 · arizona.uli.org
VF Valley Forward 602-240-2408 · valleyforward.org
VP Valley Partnership602-266-7844 · valleypartnership.org
WEST WESTMARC623-435-0431 · westmarc.org
AZRE PEOPLE TO KNOW NOMINATIONS ARE NOW OPEN FOR PEOPLE TO KNOW 2012-2013. GO TO AZREMAGAZINE.COM
I N C O M M E R C I A L R E A L E S T A T E
AMA EDUCATION CONFERENCE AND TRADE SHOWMAY 9-10PHOENIX CONVENTION CENTER
TRIBUTE AWARDSMAY 10PHOENIX CONVENTION CENTER
BOMAREVERSE TRADE SHOWMAY 3RENAISSANCE PHOENIX DOWNTOWN MONTHLY LUNCHEON MAY 16, JUNE 20RENAISSANCE PHOENIX DOWNTOWN
CORENET GLOBALPHOENIX RISINGMAY 17, 11:30AMPHOENIX COUNTRY CLUB
ICSCRECON 2012MAY 20-23LAS VEGAS CONVENTION CENTER
NAIOPNIGHT AT THE FIGHTSJUNE 7CAMELBACK INN
ULINATIONAL REAL ESTATE SUMMIT AT THE SPRING FORUMMAY 8CHARLOTTE, N.C.
RENTAL HOUSING IN THE NEW ECONOMYMay 16Scottsdale Hilton
VPFRIDAY MORNING BREAKFASTMAY 18, JUNE 29, 7:30-9 A.M.PHOENIX COUNTRY CLUB
OTHERARIZONA COMMERCE AUTHORITYAZREC ANNUAL MEETINGMAY 3TUCSON
BOARD MEETINGMAY 22, 10 A.M.PHOENIX
ABA Arizona Builders’ Alliance Phx: 602-274-8222 Tuc: 520-881-7930 · azbuilders.org
ACA Arizona Commerce Authority602-771-1100 · azcommerce.com
ACA Arizona Contractors Association602-246-8627 · azca.com
ACT Alliance of Construction Trades 520-624-3002 · actaz.net
AGC Associated General Contractors of America602-252-3926 · agc.org
AIA American Institute of Architects 602-252-4200 · aia-arizona.org
AMA Arizona Multi-Housing Association 602-224-0135 · azama.org
APA Arizona Planning Association602-866-7188 · azplanning.org
ASA American Subcontractors Association of Arizona 602-274-8979 · asa-az.org
AAED Arizona Association for Economic Development 602-240-2233 · aaed.com
AZCREW Arizona Commercial Real Estate Women arizonacrew.org
BOMA Building Owners & Managers Association 602-200-3898 · bomaphoenix.org
CORE CoreNet Global Desert Mountain623-581-3597 · corenetdesertmtn.org
DPP Downtown Phoenix Partnership 602-254-8696 · coppersquare.com
EVP East Valley Partnership 480-834-8335 · evp-az.org
GPEC Greater Phoenix Economic Council 602-256-7700 · gpec.org
ICSC International Council of Shopping Centers646-728-3800 · icsc.org
IFMA International Facility Management Associationifmaphoenix.org
IREM Institute Of Real Estate Management602-253-1852 · iremphx.org
LAI Lambda Alpha International lai-phx.org
MPA Metropolitan Pima Alliance520-878-8811 · mpaaz.org
NAIOP National Association of Industrial & Office Properties 602-230-1645 · naiop-az.org
PCA Phoenix Community Alliance 602-254-7477 · phoenixcommunityalliance.com
SMPS Society for Marketing Professional Servicessmpsarizona.org
TREO Tucson Regional Economic Opportunity 866-600-0331 · treoaz.org
ULI Urban Land Institute 480-449-7920 · arizona.uli.org
VF Valley Forward 602-240-2408 · valleyforward.org
VP Valley Partnership602-266-7844 · valleypartnership.org
WEST WESTMARC623-435-0431 · westmarc.org
23
NEWSMAKERS
» McCarthy Building Companies has appointed Scott Canada to the merit review committee for the SunShot Concentrating Solar Power R&D funding opportunity solicitation in Phoenix. The initia-tive is an aggressive research and development plan led by the U.S. Department of Energy and aimed at developing solar technologies to meet a levelized cost of energy target of 6 cents/kWh without subsidy by 2020. McCarthy also promoted two associates to proj-ect directors. They are Lee O’Connell in Albuquerque and Steve Poulin in Tempe.
» Voit Real Estate Services appointed Donald Morrow as managing director of the firm’s Phoenix operations. Morrow will oversee all aspects of Voit’s operations in the Phoenix market, including brokerage, asset and property management. Prior to joining Voit, Morrow served as a partner at Biltmore Holdings.
» Sundt Construction chairman and former CEO J. Doug Pruitt was named among the recipients of the prestigious 2012 Golden Beaver Award. Pruitt received the Management Award from The Beavers, a heavy civil engineering construction association. He retired as CEO of Sundt in September 2011, but remains involved with the company serving as chairman. Sundt also added Tom Auay-Fuay to serve as project manager in the Southwest. He will concentrate his efforts on preconstruction activities relating to min-ing and industrial construction projects.
» Commercial Properties Inc. (CPI) hired John B. Daley, who brings 30 years of commercial, retail, office and industrial real estate experience. Daley has coordinated some of the largest com-mercial real estate deals in Arizona. CPI also was selected by CoStar Group as recipient of a CoStar Power Broker Award. In addition, four brokers won individual awards as Top Industrial Leasing Brokers. They include Leroy Breinholt, Darin Edwards, Cal Johnson and Eric Jones.
» The Arizona Builders’ Alliance was honored by the Associated General Contractors of America as a 2011 Community Award recipi-ent, one of 13 organizations recognized as the construction indus-try’s best charitable work. The ABA Community Board supported four projects in 2011.
» Lincoln Property Company hired Tina Byrd as property manager in the Desert West Region office in Phoenix. Byrd is responsible for managing the newly renamed and remodeled Camelback Square.
» CBRE announced that Ike Isaacson
has been named the new leader for its Tucson office and the Southern Arizona market. Isaacson has nearly 15 years of commercial real estate experience in the Tucson market, specializing in the leasing and sale of office, medical and R&D buildings.
» Erin Harper joined Alliance Project Advisors as senior proj-ect manager in Phoenix. Prior to joining Alliance Project Advisors, Harper worked with CBRE Global Corporate Services on site at American Express’ TRS Division since 1996. She has more than 20 years of project management experience.
» Jennings, Haug & Cunningham expanded its legal services with the addition of a prominent Arizona environmental law practice group. The three attorneys include senior partner Karen Gaylord, Ronnie Hawks and Janis Bladine. They have been representing clients in environmental law.
» Scottsdale-based MC Companies has announced the new joint venture with Phoenix-based Clark-Wayland Construction. This ven-ture will focus mainly on development and construction of new multi-family projects in Phoenix and Tucson. The combined com-pany has more than 75 years construction experience and has built more than 25,000 units in Arizona.
» Colliers International announced that senior associate Danny Plapp joined the office properties team of Charles Miscio, Greg McMillian and Niki Ward. Plapp will focus on procuring new tenants for property owners, while working with the specific needs of users. He joins Colliers from LevRose Commercial Real Estate in
Scottsdale. Plapp has more than four years of commercial real estate experience, specializing in office properties.
» Carlyle Development Group announced a leasing and manage-ment team for the newly acquired Metrocenter in Phoenix. This team includes the addition of Brent Meszaros as general manager, real estate veteran Anita Blackford as senior VP of leasing, and locally based Phoenix Commercial Advisors as Metrocenter’s exclu-sive retail broker representative.
» Gensler added three new associates to its Phoenix staff. They include Jennifer Gozzi, interior designer; Lori Stenguist Johnson, project coordinator; and Stephanie Gomez, marketing manager.
Morrow
Plapp
Canada PoulinO'Connell
BladineHawksGaylord
Byrd
COMPILED BY STEPHANIE GONZALEZ
Dennis Desmond
Responsibilities
Favorites
What did you think you’d be
when you were growing up?:
What accomplishment
are you especiallyproud of?:
What would people be surprised to know
about you?
Managing director, Jones Lang LasalleBorn in ChicagoAttended Loyola Marymount University (Los Angeles), where he received a BS in personal and industrial relationsMarried to wife, Kathleen, for 38 yearsHas been with JLL for 2 years; has been in commercial real estate for more than 30 years
Desmond leads the investment sales practice within the Capital Markets Group of Jones Lang LaSalle’s Phoenix office, special-izing in office investment sales for institutional clients and private owners of real estate.
SPORTS TEAM: Arizona Diamondbacks, Chicago Cubs and Chicago White Sox ACTIVITIES: Baseball games and time with my grand kids.DESTINATIONS: I’m Irish, so Ireland tops my list. My favorite spots are Kinsale and Dingle. Both are small, picturesque coastal seaport cities.
A major league center fi elder. My goal was to play in Yankee Stadium. I fell a little short — played minor league ball for two years for the Coos Bay/North Bend A’s.
Our children (son, Ryan, 34; daughter, Megan, 32). � ey are wonderful people.
I'm a two-time cancer survivor of Non-Hodgkin’s lymphoma. I was diagnosed 15 years ago and told there was no cure. My advice to others: “Enjoy every day.” Desmond also served 8 years as a special agent in the U.S. Secret Service. In between protection assignments, he investigated forged U.S. Savings Bonds and worked in Washington, D.C., dur-ing Watergate.
24 | May-June 2012
AFTER HOURS
PHOTOGRAPHY CORY BERGQUIST
Knowing more about the people we work with is the fun side of the business. It helps start conversations and strengthens business relation-ships. To nominate a colleague, request an After Hours form from Peter Madrid, [email protected].
75Years of
Performance
2012 SPECIAL SECTION:
Solar Tower to rise from the desert 28All aboard! PHX Sky Train on track 30A green schoolhouse that rocks 34Projects defi ne Western District 36Q&A with VP/District Manager 38
28 30 34 36
Hensel Phelps Construction Co., celebrating their 75th anniversary, is
proud to be a construction partner with Arizona communities
University of Arizona Chemistry Building, Tucson
Sky Train - Sky Harbor International Airport, Phoenix
Arizona Cancer Center, Phoenix
University of Arizona Law Commons, Tucson
Yuma Municipal Government Complex, Yuma Mariposa Land Port of Entry, Nogales
City North Phoenix Phase I, PhoenixUniversity of Arizona McClelland Park, Tucson
PHOENIX OFFICE444 North 44th StreetPhoenix, AZ 85008
480.383.8480
TUCSON OFFICE
2701 East Speedway BoulevardTucson, AZ 85716
520.624.2216
www.henselphelps.com
Retool your business…
azBIGmedia.com
28 | May-June 2012
BY PETER MADRID
‘Look, Up in the F
or 75 years, Hensel Phelps Construction Co. has made a name for itself around the world with innovative building projects. However, the best is yet to come.
In 2013, the Western District Hensel Phelps offi ce in Phoenix is to begin construction on a proposed $740M,
2,800-foot Solar Tower in La Paz County in western Arizona.“Th e project is fantastic on several fronts,” says Mark Watson, chief
estimator for the Phoenix offi ce, “from its size to the simplicity behind its great power generation capabilities and we are extremely excited to be part of this renewable energy solution that will change the way the world looks at alternate power generation.”
To appreciate the height of the Solar Tower, which is being built for EnviroMission of Australia, consider that the tallest building in Arizona is the Chase Tower in Downtown Phoenix at 483 feet. Now picture six Chase Towers stacked atop each other and you have the Solar Tower — which also has a diameter of 450 feet.
To appreciate its simplicity, here’s how it works. A 4-square-mile greenhouse will heat air and direct it up through the con-crete chimney. Th e hot air will turn turbines to produce 200 MW of electricity, enough to power 50,000 homes.
Despite its simplicity, the project is chal-lenging. And that’s why Hensel Phelps was chosen. Hensel Phelps has built other chal-lenging projects that included specialized infrastructure components such as rocket launch facilities for NASA in Florida and California, aviation infrastructure at airports around the country (including the PHX Sky Train at Sky Harbor International Airport), military bases, and U.S. ports of entry.
When asked why Hensel Phelps was the right fi t for the project, Chris Davey, presi-dent of EnviroMission, says the decision was twofold.
“One, their internal culture is second to none,” Davey says. “Th ey tend to recruit people young out of college and train them the Hensel Phelps way. Th ey stay there for extended periods of time. Th at refl ects the kind of work they do.
“And two, Hensel Phelps takes on projects that are the fi rst of their kind — and not just high-rises or hospitals. Th ey build launch pads, sky trains … and solar towers.”
Th e pricing approach for a project of this scale requires the com-ponents to be broken down into manageable subsystems that can be supported by the local, state, national and world market, Watson says. Solar Tower’s components consist of a concrete tower, collector system, foundation systems, turbines, transmission and electrical infrastruc-ture. Each of these components has been built in other applications throughout the world and are easily quantifi able. Th e real challenge
for this project, Watson adds, is not the uniqueness of the components or design, but the logistics of corralling the various stakeholders.
“Th e exceptional development team assembled by EnviroMission draws experts from all over the world that in itself requires a high level of collaboration that is not always apparent on many projects,” Watson says. “On one hand, effi ciencies and cost savings are achieved through commoditizing the relatively few but high quantity materials. On the other hand, given the size and location of the project, consideration is given to the transport of men and materials to the point of installa-tion. Whether it is getting the resources to the project site or 2,800 feet in the air, logistical challenges exist due to the project scale.”
A company and its capabilities are defi ned by the people who work there. And it is those people within the orga-nization that bring the necessary experience for any project.
“Hensel Phelps has the best profes-sional builders in the industry,” Watson says proudly. “Th ey are a diverse team of determined, can do, problem solvers with a culture that continuously challenges its people to think outside the box and devel-op creative solutions for the most chal-lenging problems.”
Hensel Phelps also understands the importance of collaborative planning and analysis during the early stages of this challenging project, Watson says.
“We utilize proven pre-construction pro-cesses to ensure that the project will receive accurate and reliable data with regard to cost, constructability, and key systems selections to ensure EnviroMission’s is a facility that exceeds the expectations for functionality, effi ciency, maintainability, and cost eff ec-tiveness for the life of the structure.”
Davey says Hensel Phelps’ experience is a key component to the Solar Tower, which will generate electricity to 10 municipal utility companies in the Southern California Public Power Authority.
“So many things have to happen for a project like this to succeed,” Davey says. “You need to have the right partners on board.”
Th e EnviroMission Solar Tower is a signifi cant project. Hensel Phelps builds unique projects regularly throughout the country that require construction innovation and an adaptable approach in order to be successful. From those experiences, Watson says, the company has created a solutions orientated team of construction professionals.
Th e project’s signifi cance likely will also be felt in the state’s fragile commercial real estate industry.
Adds Watson: “Part of the signifi cance of this project is the positive impact it will have on the Arizona construction industry by maximiz-ing the use of local subcontractors and vendors.”
The Solar Tower will produce 200MW of electricity.
‘Look, Up in the
29
Super Solar Tower to rise 2,800 feet from the desert fl oor in Arizona’s La Paz County
An aerial rendering shows the 4-square-mile greenhouse that will encircle
EnviroMission’s Solar Tower, which is scheduled to be built by Hensel
Phelps starting in 2013. (Renderings: EnviroMission)
Sky!’
29
30 | May-June 2012
All AboardPHX Sky Train Stage 1 at Sky Harbor is a moving exampleof Hensel Phelps’ grand presence and reputation in Arizona
Ask Allan Bliesmer what’s most special about the $644M PHX Sky Train project, and his answer isn’t that surprising.
“Th e team eff ort toward a common goal,” responds Bliesmer, operations manager for Hensel Phelps Construction Co., general contractor for the Stage 1 fi xed
facilities of the massive project at Sky Harbor International Airport. “Th e city, designer, and Hensel Phelps addressed each challenge with a solutions-orientated approach.
“Th e people involved in the project refrained from developing or maintaining personal agendas, and worked together, utilizing each member’s expertise, to develop the best design and construction solutions for the project.”
Once Hensel Phelps was selected as construction manager for the fi rst phase of the train’s stations and elevated guide-way tracks, preliminary work began and lasted 20 months — from June 2008 to February 2010. (Bombardier Transportation was chosen as the system provider).
Stage 1 — a 1.7-mile stretch — will transport airport visitors and employees between METRO light rail, east economy parking and Terminal 4, which serves 80% of Sky Harbor’s passengers. Stage 1 is scheduled for completion in 2Q 2012.
What was it about the company that helped Hensel Phelps land such a historic project? Prior to the start of the PHX Sky Train proj-ect, Bliesmer says, Hensel Phelps had just completed the automated train proj-ect at the Dallas-Ft. Worth International Airport. Th e Dallas-Ft. Worth system was installed throughout the entire air-port and spanned a total of 5 miles in length with 8 stations.
In addition, Hensel Phelps has com-pleted billions of dollars of aviation work around the country including automat-ed train systems, terminals, hangars, administration facilities, rental car facil-ities, air traffi c control towers and park-ing structures at a number of airports.
But one feature that makes Sky Train diff erent from other projects is a 350-foot bridge that carries the train above an active taxiway that is large enough for a 747 to pass through. An article in a national construction magazine boasted that the project “features many inno-vative design elements,” including the bridge.
“Th e Taxiway R crossing is a unique item not generally featured at other air-
ports around the world,” Bliesmer says. “In order to maintain full use of the taxiway, the design had to accommodate a ‘bridge’ that would not encumber the use of the largest aircraft planned at the airport.
“To satisfy this, a 350-foot cast in-place concrete ‘bridge,’ at an elevation of 80 feet above grade, was incorporated to provide the necessary clearance. Another innovative approach was the use of precast tub girders in lieu of cast in-place concrete structural ele-ments for a majority of the guideway structure,” Bliesmer adds. “Th e use of precast allowed the construction team to minimize the real estate needed on the ground to install shoring required for a tradi-tional cast in-place concrete approach, resulting in minimization of issues associated with public access, airport operations and safety.”
Th e automated train was a necessity. Sky Harbor serves 42M pas-sengers a year, and the number is projected to rise to 40M to 50M in 2013. Th e goal is to remove about 20,000 cars and trucks — up to 20% of the traffi c circling Sky Harbor — from the airport area. Th e project is also a boon to the local economy. Stage 1 has created an estimated 6,000 jobs.
What are some of the challenges Hensel Phelps faced? “Th e primary challenge with the integration of such a large con-
struction project into an active airport,” Bliesmer explains, “is com-pleting the work without causing interruption to the airport and airline operations, as well as maintaining safe access by public and
airport employees.”In order to accomplish public safety
and minimize any impact to the airport operations and airline operations, much of the work activity is conducted during night-time hours when fl ight activity and public access at the airport is at a minimum, Bliesmer adds.
Stage 2, which will continue through the airport to the rental car center, was scheduled for completion in 2020. But last June, the Phoenix City Council voted to move up completion of a .6-mile section to connect Terminal 4 with Terminal 3, along with a walkway for passengers to access Terminal 2, to early 2015. Final cost of the project: $1.5B.
“Th e state-of-the-art system installed at Sky Harbor is the latest and greatest in the industry,” Bliesmer says proudly. “Having the opportunity to work with the City of Phoenix and the aviation team at Sky Harbor has furthered Hensel Phelps’ experience and recognition throughout the industry.”
BY PETER MADRID
PHX SKY TRAIN BY THE NUMBERS14M: Pounds of precast concrete12M: Pounds of structural steel5,000: Drawings issued for construction340: Subcontracts issued40: Miles of wiring (power cabling)
3131
Experience with automated train systems at other U.S. airports made Hensel Phelps the perfect general contractor to undertake PHX Sky Train at Sky Harbor International Airport.
I N C O M M E R C I A L R E A L E S T A T E
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34 | May-June 2012
This Green Schoolhouse RocksPhoenix’s Roadrunner Elementary School is going green thanks to Hensel Phelps and a California-based organization
Investment in a child’s education takes on an entirely new mean-ing with the Green Schoolhouse Series project. Started in 2008, the Green Schoolhouse Series is in the process of creating the world’s fi rst LEED Platinum design schoolhouse.
In Arizona, it’s happening at Roadrunner Elementary School in Phoenix. Hensel Phelps Construction Co. is the general contractor and one of the fi rst companies to reach out to the project.
“Hensel Phelps’ participation is all about giving back to the com-munity where our employees and their families live and work,” says project manager Alex Bertolini.
“Hensel Phelps’ teamwork, drive and passion for the project con-tinues to amaze the (Cause and Eff ect Evolutions) team as well as the other partners that have signed onto the project,” says Stefanie Valles, public relations coordinator for San Diego-based Cause and Eff ect Evolutions, a cause marketing/business development organization.
Th e Green Schoolhouse Series is a collaboration bringing togeth-er corporations, foundations, school districts, communities, media outlets, and volunteers to build high-performance, environmentally-sustainable, LEED-Platinum designed Green Schoolhouses at Title I, low-income, public schools. Hensel Phelps was the right pick for the project because of its reputation in the school-building market as well as being a leader in sustainability, Valles says.
Th e work at Roadrunner Elementary, 7702 N. 39th Ave., will pro-vide students the opportunity to learn the importance of sustainabil-ity and its relevance. Construction began in May and is expected to be complete in July.
Green Schoolhouse Series projects are not just rewarded “Platinum” because of sustainability features, but also for being an infl uence that ultimately increases students’ performance in school. More than 300,000 trailers are used as classrooms across the country. A quarter of U.S. classrooms are considered dangerous and cause health prob-lems in students, leading to their absence and overall neglect of edu-cational benefi ts.
According to Greening America’s Schools Reports, the American Federation of Teachers and National Clearinghouse for Educational Facilities, there is a signifi cant improvement in the following areas:
» Improved learning: 26% progression in math and 20% progres-
sion in reading;» Healthier students: 5% increase in attendance and 9% decrease in
asthma-related absences;» Cost savings: 33% reduction in energy usage and 30% reduction
in water usage. Th e founders of the Green Schoolhouse Series project, Marshall
and Jeff Zotara, began school makeovers long before the company formed. In 2001 they infl uenced the growth of elementary school sus-tainability by implementing energy conservation and gardens.
Th e Green Schoolhouse Series focuses on students in K-12. Th e Safari model, which is being built at Roadrunner Elementary, will be completed for grades K-5. Th e Studio is for grades 6-8 and the Loft is for high school students. Th e project’s purpose at Roadrunner will lead the students and community through a journey of discovery of sustainability through the plan’s technology and education.
While the school is intended for students to move forward in edu-cation, the architectural plan, produced by architectural fi rm Stantec, was designed entirely backwards. All the components were donated before the building process began; therefore the design had to revolve around the various materials that were provided.
If the features mentioned weren’t fascinating enough, the school-house construction would not be built by contractors but by at least 1,000 volunteers. Now that’s an investment in education.
Cause and Eff ect Evolutions “looks and asks for any skilled volun-teers that would like to give back (to the community),” Valles says, as well as the corporate sponsors of the project. More than 1,000 vol-unteers have donated their time and eff ort into producing the LEED Platinum design schoolhouse. Th e volunteers were presented with an “accelerated extreme home-makeover schedule, which is unlike any other building project,” Bertolini says.
Th e Safari model was also rewarded the Edward E. Kirkbride award in May 2011 for excellence in educational and innovative planning and design. Roadrunner’s added on, versatile space will aff ect stu-dents, parent groups and the community.
“Th e Green Schoolhouse is geared toward a modern learning environment and provides students with a green mode of thinking,” Bertolini says.
BY MARIA THOMPSON
Th e Green Schoolhouse Series Safari model was selected for Roadrunner Elementary. (Renderings: Cause and Eff ect Evolutions)
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36 | May-June 2012
Best of the WestA look at some of the notable construction projects managed by the Western District Hensel Phelps offi ce over the years:
PROJECT OWNER ARCHITECT CITY SIZE VALUE COMPLETION DATE
University of Arizona Medical Research Building
UA Zimmer Gunsul Frasca Partnership
Tucson 152,000 SF $44.6M 06/30/06
UA Chemistry Building expansion
UA Zimmer Gunsul Frasca Partnership
Tucson 65,624 SF $35.459M 06/14/07
UA McClelland Park UA SmithGroup Tucson 71,746 SF $18.8M 05/01/08
UA Law Commons UA Gould Evans Associates Tucson 112,896 SF $13.4M 07/25/08
City North Phoenix Phase I
Thomas J. Klutznick/Related Midwest Corp.
Nelsen Partners Phoenix 1.207 MSF $148.3M 11/30/08
City North Phoenix Phase II
Thomas J. Klutznick/Related Midwest Corp.
JACOBS Phoenix 30,000 SF $93.78M 12/31/09
Military Training Simulation Lab
Scottsdale Healthcare Devenney Group Scottsdale 8,300 SF $1.05M 10/15/10
Mariposa Land Port of Entry
General Services Administration
Jones Studios Nogales 53 acres $23.343M 11/15/10
PHX Sky Train City of Phoenix Gannett Fleming Engineers
Phoenix 160,053 SF $343M 03/31/12
ADOT Truck Weigh & Credential Processing Facility
U.S. Dept. of Energy Burns & Roe Nogales 3,800 SF $7.13M 04/24/12
P573 Intermediate Maintenance Activity Facility
NAVFAC FEC Southwest NAVFAC Mid-Atlantic Yuma 45,000 SF $13.86M 09/25/12
Banner Alzheimer Institute
Banner Health RTK Associates Phoenix 17,921 SF $4.638M 10/03/12
UA Environment and Natural Resources Phase II
UA Richard+Bauer Tucson 150,000 SF $49M 08/01/14
Arizona Cancer Center UA Zimmer Gunsul Frasca Partnership
Phoenix 250,000 SF $101M 06/01/14
Commissary at Twentynine Palms
U.S. Air Force The Jenkins Group Twentynine Palms, Calif. 52,000 SF $10.948M 11/12/03
Commissary Tinker AFB DECA CTA Architects and Engineers
Midwest City, Okla. 88,000 SF $14.241M 09/12/05
Consulate Compound U.S. Dept. of State Zimmer Gunsul Frasca Partnership
Cape Town, South Africa 97,952 SF $36.4M 11/15/05
U.S. Embassy U.S. Dept. of State Moore Ruble Yudell Architects & Planners
Berlin, Germany 163,000 SF $93.993M 05/21/08
MRO Transformation Program – F100
Tinker AFB Frankfurt Short & Bruza Oklahoma City, Okla. 217,000 SF $62.277M 06/13/08
SOF C0130 Fuel Cell & Corrosion Hangar
U.S. Army Corps of Engineers
Michael Baker Jr. Inc. Cannon AFB, N.M. 88,802 SF $32.766M 02/26/12
NMSSUP II South PIDADS
U.S. Dept. of Energy Burns & Roe Los Alamos, N.M. 10,124 SF $3.506M 04/20/12
Twentynine Palms – North Mainside Expansion
NAVFAC Parsons Brickerhoff – RBF Consulting
Twentynine Palms, Calif. 26 acres $102.799M 03/28/12
UAS Maintenance Hangar U.S. Air Force JACOBS Holloman AFB, N.M. 59,997 SF $19.487M 05/30/13
ELSEWHERE
ARIZONA
SOUR
CE: H
ENSE
L PH
ELPS
37
Proud supporter and the preferred HVAC & Plumbing Contractor chosen for the University of Arizona Cancer Center in downtown Phoenix.
Congratulations Hensel Phelps on 75 years
www.belairemechanical.com
Bel-Aire.indd 1 4/27/12 10:22 AM
NOVEMBER-DECEMBER 2011
NOVEMBER-DECEMBER 2011
ACA: Has it made an impact? p. 8
'Stealth' healthcare construction p. 16
AIA-Arizona: The best and brightest p. 30
Grand
INSIDE
100 Years of Arizona's Architectural Achievements
The University of Arizona
Stevie Eller Dance Theatre was designed
by Gould Evans and built in 2003.
Grand Grand Grand Grand Grand Grand Designs
DesignsDesignsDesignsDesignsDesignsDesignsDesignsDesignsDesignsDesignsDesignsDesignsDesignsDesignsDesignsDesignsDesignsDesignsDesignsDesignsDesignsDesignsDesignsDesignsDesignsDesigns100 Years
100 Years 100 Years 100 Years 100 Years 100 Years 100 Years 100 Years 100 Years
JANUARY - FEBRUARY 2012
MARCH-APRIL 2012
2012 Outlook by Industry p. 8Valley Partnership Roundtable p. 28AZRE's 7th Annual RED Awards p. 40
INSIDE
The Valley's multi-family market will be brisk in 2012 with projects such as Optima Sonoran Village in Scottsdale.
Coming next issue: � Arizona Builders’ Alliance yearly update. � Mid-year report on the Valley’s industrial and offi ce markets.� Women in commercial real estate: It’s not a ‘good old boy’ network anymore. � Statewide update: How has the commercial real estate industry fared outside the Valley.
For advertising information call
602-277-6045AZRE Coming next MJ12.indd 1 4/27/12 9:27 AM
38 | May-June 2012
QHow did you get your start in the construction industry?A: As a young boy, I was constantly around the construc-
tion business. My father was a vice president of an interior subcontractor in the Northwest. During high school, my brother and I worked part time on residential projects doing laborer work and light carpentry. While attending college (University of Washington), I continued to work on commercial projects as well. I knew from an early age that construction was an industry that I wanted to be part of and that would provide a challenging career. Construction has certainly done that for me.
QHensel Phelps has made its mark in Arizona for more than 30 years, with 30 projects worth an estimated $1.8B. How proud are you of that mark?
A: I am extremely proud to continue the legacy whose founda-tion was set in 1979. A repeat corporate client, IBM, brought us to Tucson from Colorado. Our continued success with IBM on their projects in Tucson created the opportunity to continue to work together and took us further West to California, where today we have two district offi ces. Th e construction market has changed greatly in Arizona since then. With the approval of Alternate Project Delivery Methods in the early 2000’s, the diverse portfo-lio of project types that Hensel Phelps undertakes, as well as the experience of our people on those projects, has allowed for growth and opportunities with many new owners. Regionalization and establishing a permanent presence here is key to developing long-term relationships with owners, subcontractors, designers, trade associations and the communities our people live in. We are proud to live and work in a community and state as great as Arizona.
QHow did Hensel Phelps weather the Great Recession, which took its toll in Arizona on the commercial real estate indus-try?
A: Th is year marks Hensel Phelps’ 75th anniversary in business. From that fi rst farmhouse in Northern Colorado that Hensel built, we have come a long way and seen many tough and challenging times. Th e Hensel Phelps organization and the Western District each had their 3 best years in our 75-year history during the Great Recession. We attribute this to our repeat clients that continue to entrust their projects to us, relationships in the Industry as a whole and the unparalleled performance of our people. We are grateful for all of them.
QHensel Phelps is completing its portion of PHX Sky Train this year and embarking on another major project – the Solar Tower in La Paz County. How optimistic are you about Hensel Phelps’ presence
in Arizona the next 10, 20 or even 30 years?A: I am extremely optimistic and confi dent about our continued
presence in Arizona in the future. In the construction industry, change is constant. Market sectors and economic conditions are always providing challenges to change. It is a matter of survival. While we may not look exactly the same 30 years from now, we will be here.
QYou went to college in Washington and now live in Arizona. How important is the Western Division to the overall picture at Hensel Phelps?
A: Th e Western District, covering Arizona, Southern Nevada, New Mexico and Oklahoma, is extremely important to Hensel Phelps. Establishing a local presence, committing to the communi-ties in which our families live and developing relationships is criti-cal to our continued success. Prior to our corporate commitment of establishing a district offi ce in Arizona, these states where covered by other district offi ces. Our CEO and President, Jeff Wenaas, is from Tucson and attended both UA and ASU. Th ere is a strong com-mitment from the top. Arizona and the Southwest have been and will continue to be very important to us. We are the local contrac-tor with the national reach!
QAs Vice President and Western District Manager, what project (or projects) are you most proud of?
A: As a district manager, I am proud of all of our projects, but most importantly our people and performance on those proj-ects. We are fortunate to get the opportunity to perform a wide range of project types for both public and private owners, utiliz-ing a wide variety of project delivery methods. Th e depth of expe-rience of our people allows them to seamlessly operate on these
diff erent projects and exceed our owner’s expectations in the overall construction experience.
Number of years with HP: 22, with stints in Washington, California, Nevada, Utah and Colorado. Number of years as Vice President/Western District Manager: 4
Family: Wife Stephanie and daughters Morgan and Skyla; and two Labrador Retrievers, Dakota and Mocha. Hobbies: Traveling, fi shing, hunting and shooting.Favorite sports teams: Denver Broncos – and of course the Arizona Cardinals.
Vice President/Western District Manager Steve Grauer
Q&A
Grauer
3939
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Celebrating25 Years of
ResponsibleDevelopment
2012 Special Section:
President’s Letter 44Past Chairmen Roundtable 462012 Chairman Q&A 6025 Years of Leadership 62Partner Profi les 68Community Project 71
04/12
A division of Western Alliance Bank. Member FDIC.Western Alliance Bank is an affi liate of Western Alliance Bancorporation
alliancebankofarizona.com602.386.5500
Building Alliances for Growth —
Ericka LeMaster, Vice President, Commercial Real Estate Lending, Alliance Bank with Santé Owner Mark Hansen. Alliance Bank provided the construction and permanent fi nancing of Santé of North Scottsdale, a resort style, short-term rehabilitation facility. The new center will employ 150 full and part-time staff and include a full range of amenities. The North Scottsdale location is one of four facilities in Arizona.
“Having Alliance Bank’s deep knowledge of commercial real estate in this market was a great benefi t to us. They take the time to listen and are truly solutions-driven.” — Mark Hansen, Owner, Santé of North Scottsdale
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04/12
A division of Western Alliance Bank. Member FDIC.Western Alliance Bank is an affi liate of Western Alliance Bancorporation
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Building Alliances for Growth —
Ericka LeMaster, Vice President, Commercial Real Estate Lending, Alliance Bank with Santé Owner Mark Hansen. Alliance Bank provided the construction and permanent fi nancing of Santé of North Scottsdale, a resort style, short-term rehabilitation facility. The new center will employ 150 full and part-time staff and include a full range of amenities. The North Scottsdale location is one of four facilities in Arizona.
“Having Alliance Bank’s deep knowledge of commercial real estate in this market was a great benefi t to us. They take the time to listen and are truly solutions-driven.” — Mark Hansen, Owner, Santé of North Scottsdale
25 Years of Commitment
Beginning at the end of 2011, I was charged with the responsibility of review-ing the 25-year history of Valley Partnership in anticipation of the yearlong celebration of our Silver Anniversary.
Th e only records kept by a small organization with a historically small staff were the binders of corporate minutes (required by law) and some photo-graphs — not pictures on websites, CDs, JPEGs or TIFFs — of events and Community Projects. I dreaded the thought of combing through tedious
legalese and staged pictures of people holding shovels pretending to do heavy lifting at some children’s facility one day a year.
I was wrong.Reading the corporate minutes from 1987 through 2011, each year came alive with the
personalities of the Chairs of the Board of Valley Partnership. Th ey were business people who led the organization and the commercial real estate industry in some of the direst times and in some of the most successful. I read of the dedication of the Partners who served on Valley Partnership committees with missions ranging from Government Advocacy to Business Development to our Community Projects.
Although 25 years have passed and the Valley has grown beyond the boundaries that existed in 1987, one thing has been consistent: Valley Partnership is a partnership among strong individuals who are dedicated to the four corners of the Valley Partnership Mission:AdvocacyEducationNetworkingCommunity Service I hope you enjoy this look back over the past 25 years, particularly the comments of the
past Chairs of the Board of Directors, a collection of prestigious commercial real estate profes-sionals who committed a signifi cant amount of their career and time to Valley Partnership.
I invite you to join Valley Partnership for the next 25 years and become a part of the Valley of the Sun’s Premier Advocacy Group for Responsible Development.
Richard R. HubbardPresident & CEO
Valley Partnership
44 | May-June 2012
VALLEY PARTNERSHIP: PRESIDENT’S MESSAGE
Congratulations to
ValleyPartnership
on their 25thAnniversary!
Vestar ishonored to
have been apart of ValleyPartnership’sleadership
for more than20 years.
2425 East Camelback Road, Suite 750 | Phoenix, Arizona 85016602.866.0900 | www.vestar.com
Lee Hanley1987-1995
Pat McGinley1999-2003
Rick Hearn2006-2012
ACQUISITIONS MANAGEMENT DEVELOPMENT
P H O E N I X L O S A N G E L E S S A N D I E G O L A S V E G A S
Back to the Future
46 | May-June 2012
VALLEY PARTNERSHIP: ROUNDTABLE
BY PETER MADRID · PHOTOGRAPHY BY CORY BERGQUIST
Valley Partnership is celebrating 25 years as Metro Phoenix’s premier advocacy group for responsible development. In looking back – and
also looking ahead – AZRE magazine brought together six former chairmen to discuss goals the group has successfully achieved and challenges that lie ahead.
Past and present: (L to R) Valley Partnership chairman Rick Hearn and past chairs John Graham, Pete Bolton, Clesson Hill, Dave Scholl, Charley Freericks and Jim Pederson.
Six past chairmen reminisce about the past, discuss what lies ahead for Metro Phoenix development
With the commercial real estate industry making a slow recovery from the Great Recession, the advocacy role undertaken by a group such as Valley Partnership is magnifi ed. “Th e surge in commercial real estate is evident,” says Richard Hubbard, president and CEO of Valley Partnership. “Th e comments from our past chairs provide great direction to Valley Partnership for the next several years.
“With the increasing activity, it is imperative we re-energize our advocacy eff orts with particular focus on the local communities while always monitoring our state and federal governments for any issue that aff ects our industry.”
Participating were John Graham (JG), Sunbelt Holdings, chair-man in 1989; Dave Scholl (DS), Westcor-Vintage Partners, chairman in 1990; Clesson Hill (CH), Grayhawk Development, chairman in
1997 and 1998; Jim Pederson (JP), Th e Pederson Group, chairman in 1999; Pete Bolton (PB), CBRE/Grubb & Ellis (Newmark Grubb Knight Frank), chairman in 2004; and Charley Freericks (CF), DMB Associates, chairman in 2006. Rick Hearn (RH) of Vestar, the cur-rent chairman, served as moderator.
RH: During the past 25 years, has the level of economic development undertaken by local governments and the state been inadequate,
adequate or exceptional?
PB: Frankly it’s all three. Over the years, it’s been inadequate, and it’s gone to adequate, and then I think in some cases it’s been
exceptional. It also depends on which state we compare ourselves with because some states are exceptional and then some states are just barely adequate. And then you can go in the opposite direction, say inadequate, compared to Texas, and some of the other big ones across the country. Overall, we are doing a better job today.
CH: I would agree. I think there is lack of funding these days and I think that education has suff ered greatly and that is a major
infrastructure that needs to be rebuilt. Not just here but everywhere, and as we move forward and embrace new technology, it is a new way of life as we look toward the future.
DS: When I looked at this question, I really focused on the side of economic development and “are cities making investments?” I
47
think that a lot of ways the cities have been trying to operate with their arm tied behind their backs. Th e constitution and our leg-islators have never really given our local government a whole lot of choices in their tool boxes. With the limited tools they have in there, they have done a pretty good job. I think that the industry I have been in has had a lot of city participation in economic devel-opment, and I think that they have been pretty aggressive about getting the most out of what limited tools the state’s constitutional statues have given.
RH: Charley, your company was impacted by this exact thing oat Eastmark (in Mesa) in regard to Apple. What are your
thoughts?
CF: Well it was not just Apple. It happened to us positively with First Solar. We were able to compete and win there. And with
Apple, to be in the mix, I’m where Pete was. It is an evolution where economic development has come a long way since 1987. I had to think about 25 years, and I didn’t know I had been in the business that long. I look at what has happened now as the communication level of real prospects is very high and people know they’re com-ing and looking, which in the old days you would hear about it and it was here and gone. I’ve been in that side of the business almost my entire career chasing prospects from out of state. We come in second place to states that want to write checks. When we lose, we lose because somebody wrote a check and throws money at it to the prospect. I’ve never been a huge advocate at writing big checks. It’s a
complicated business. I think we are doing a lot better chasing these deals and being in the running and again the tool kit is very limited.
JG: I’m actually optimistic about many things and this is actually one of them. My view is that being a young state one of the
things that we did probably an amateurish job in early on was in economic development. I think that was a maturity problem not a “we didn’t quite get it problem.” With what we have now with GPEC and ACA and trying to address some of our structural and political and legislative problems, we got a really good pipeline of stuff that is being looked at and is being professionally handled.
JP: Certainly economic development depends on how you defi ne it. A lot of people think that dangling a check in front of a major
company is going to bring jobs into the state. But as Clesson men-tioned, it’s more than that. It is infrastructure investment; it’s edu-cation and venture capital.
RH: Has Valley Partnership had a positive e� ect of creating a better image for developers?
JP: Th ere is a word that has been overused but I think that it is applicable. In this case, that is sustainability — the sus-
tainability of our communities. It directly relates to our industry because we plunk down projects, neighborhoods or communities, and we depend upon a standard of living that is directly dependent on the rents that we get for our properties. During recession times,
48 | May-June 2012
VALLEY PARTNERSHIP: ROUNDTABLE
49
construction prices go down, land prices go down, but you have to achieve the rents if you are going to be successful at the end of the day. What Valley Partnership has done, by emphasizing how development relates to a sustainable lifestyle in the various com-munities where we live, is to look more beyond the block of where you are developing. It’s looking at your community, looking at your
neighborhood. Looking at the various infrastructure investments that are critical to the kinds of things we do. We manufacture a product. And to manufacture the product, you need certain things, at least in the shopping center business. You need good tools. You need quality neighborhoods. You need good infrastructure invest-ments. All of those things that directly relate to the level of rents we are going to get. In that regard I think Valley Partnership over the past 20 years has been excellent. I think it’s an organization that has emphasized the sustainability concept.
JG: I think the short answer is yes, that is has improved the repu-tation of how people view the development industry. Th e other
part of that is the role that Valley Partnership will never go away because inherently we are in a confl ict relationship with neighbor-hoods and other people. No matter how good of a job we did, it’s always going to be viewed that way. I think we have changed the conversation from one that was always in essence an adversarial, to at least everyone understanding that it is a two- or three-legged stool at a minimum, and that things have to be done by more than consensus. It has to be more by partnership and good conversation. Th at is why Valley Partnership will always have a role to the extent of how we want to have it because no matter how good a job we do, we will have diff erent rubs with diff erent constituency groups. But I think the role we need to continue to take is being the group that is not adversarial, rather constructive in those conversations for solutions.
John Graham and Charlie FreericksJohn Graham and Charlie Freericks
CF: I was more optimistic on this one. My immediate reaction was absolutely that my focus was on the government. As an
industry dealing with all of the city, town and county issues for reg-ulations of our industries locally, I think Valley Partnership’s repu-tation really had a big impact because we have rational and moder-ate voices coming through consistently saying, “Gee, your regula-tion here is either irresponsible or maybe needs a little tune-up or maybe you missed a big idea here.” So from the professionals within our industry that we deal with, staff level government in particular, I think our reputation over the past 20 years has improved radically. I’m with the other guys here. Th e challenge we face will always be in confl ict with residents and neighborhoods, and we need to keep doing our jobs well to keep doing that and not be controversial.
DS: I agree. I think that whenever you look at an image, you have to talk about which audience you are talking about. I think
among consumers or neighborhood groups and homeowners, I don’t know if they have enough regular engagement to really under-stand who Valley Partnership is. I don’t know if the developers’ image among the average fellow on the street has improved that much. I agree with Charley. I think we are front of mind when a city or a local government says, “We need input, or we are thinking about changing this part of our code.” I think we are one of the fi rst people they think of to come to the table and have the dialogue; whereas before Valley Partnership, it was a very splintered industry, and I don’t think there was a common voice and more importantly a common set of ears that listened to cities when they needed have that dialogue, too. So I think it has been vastly improved.
PB: What Valley Partnership has really accomplished with the local municipalities is to provide them with a dependable,
educated voice. I remember sitting on a board and something would
come up and a local municipality would ask, “Can you guys put something together on this billboard issue?”, and we would have six very educated voices at the table later that afternoon. Th at just doesn’t happen in any other organization. From my side of the busi-ness (brokerage), that has been extremely positive. As soon as we get the local municipalities on board, which they are, the neighbor-hoods rarely follow, but they don’t have much depth of voice any-more because if the politicos are truly believing the intelligent voic-es of the marketplace, they have a tendency to be more objective.
CH: I think part of the sustainability of 25 years of leadership is that Valley Partnership has been able to maintain front-
line guys and women who are involved in development and kept them passionate about Valley Partnership. It has never faded away or lost its image in the cities to know that if we come, we will get quality people stepping up and get engaged and deliver some kind of end product. I think it’s a tribute to the leadership inside Valley Partnership to maintain that constant level of quality people.
RH: We asked this question more than 20 years ago: Do you feel the local and state government o� cials have a good understanding
of the current real estate and banking problems in Arizona? Can that same question be asked today?
JP: I think they understand it because it is aff ecting their revenue signifi cantly. Development to cities is a mixed blessing. Th ey
appreciate all of the sales taxes and the fees paid by the develop-ers, but they have to contend with all of the complaints. Charley made an interesting point dealing with cities. Sometimes what I call the newer cities, the ones on the outskirts, don’t have the staff , the continuity or the maturity that some of the older cities have, so it’s sometimes more diffi cult to deal with the smaller cities. But most governments are strapped right now. Th at’s due to the economy and a city that is accustomed to the fees and the taxes that are derived from development. I don’t think we are ever going to have the kind of economy we did between 1994 and 2006-2007. We all have to make adjustments. Our industry has to make adjustments in terms of what we do and how we do it. We have a product to produce. Cities are going to have to make adjustments. Should cities be totally sales tax dependent? Shopping centers produce a lot of sales tax, and they welcome us with open arms. Car dealerships produce a lot of sales taxes. Shouldn’t we have a more level playing fi eld in regards to tax generation? Just because Scottsdale has more commercial than an adjoining city, does that mean that they are going to have more revenue to support their services? I think that it is a global approach, and our cities are going to come together and address some of those concerns.
JG: I don’t think there is any question that they understand the depth of our problems. It’s all the way from their fi scal problems
to the operational issues of not seeing zoning cases and their staff being cut down to skeleton-type levels. I think it is obvious that they understand that part of it. I think that when something bad or negative happens, something good comes out of it. One of the things that we are all going to benefi t from in the future is that the cities are more reticent to restaff and go back to business as usual. I think from the standpoint of processing procedures, processing costs, processing time frames, and some of our worst enemies over
50 | May-June 2012
VALLEY PARTNERSHIP: ROUNDTABLE
Rick Hearn
602.735.5555 cbre.com/phoenix#1 IN REAL ESTATE SERVICES WORLDWIDE
CBRE would like to congratulate VALLEY PARTNERSHIPfor 25 years of leadership in the commercial real estate industry and for advocating responsible development throughout metropolitan Phoenix.
© 2012 CBRE, Inc.
CBRE IS A PROUD SPONSOR OF VALLEY PARTNERSHIP.
3101 N. Central Ave., Suite 1070 | Phoenix, Arizona | (602) 277-6045 | www.azBIGmedia.com
would like to congratulate VALLEY PARTNERSHIP on 25 YEARS of responsible development in Arizona.
We look forward to the next 25 years of outstanding leadershipas the Valley braces for 2 million more residents.
51
the last decades, some of those will see some level or relief. We are also seeing some of the cities are courting us to do something in their communities. Not that they have much to give us, other than a friendly hand and encouragement to do something. But it is nice to see that they are reacting to fi gure out how to jump-start their own economies and their own development of their communities.
CF: I gave this question a lot of thought. We are in these long-lived projects; 20-plus years projects so you are guaranteed to
have cycles. It was early in my career somebody gave me the analogy of real estate cycles. When you’re on the downhill slide, no one ever believes that there will ever be an uphill again. So the reaction is that when I talk to most of my peers, like you guys, we are starting to observe that our days are spent on positive activities or improving activities, whereas a year ago we were slugging through tenant fail-ures, defaults and bank loans and all of that stuff . Th e cities are still in that downhill-looking position, so their reaction time is slower, which is frustrating. At the other end of it nobody ever thinks there is going to be a downhill again. So I love the industry. We have a balancing act; you want to take advantage of those mood swings when they work for you. But when you step back as a responsible player in this industry, you’d like to see a little more perspective and a little less reaction on the staff level. We have been fortunate. We have been in very diffi cult cities to deal with, which is a bless-ing because their staff level thinking is very good. Mesa has been through an amazing evolution with its entire team — from mayor down through the ranks. Scottsdale is a very challenging city, but it is very sophisticated and a lot of time they have a really good point. I like being held to that higher standard, even on the days I’m com-plaining about it. It’s nice to have lots of examples to refer diff er-ent towns and cities to, and it’s nice to have Valley Partnership as a sounding board for some of those revolving towns, too.
DS: I think when the savings and loans crisis hit, maybe because it was my fi rst downhill cycle, it seemed that more people were
52 | May-June 2012
5 Most Important Advocacy Issues
1. Passage of Proposition 303 in 1998, which created the Growing
Smarter Act and allowed for munici-palities to purchase Arizona State Trust Land for Conservation. Th is com-bined with the all-out eff ort to defeat a Portland-Style Growth Boundary Proposal, Proposition 202, which was on the ballot at the same time.
2. Collaborated with the City of Phoenix to draft the “Big Box
Ordinance,” which protected the ability of retailers to operate facilities larger than 100,000 square feet.
3. Revised the Arizona State Statutes, which regulate munici-
pality’s ability to use sales tax revenue to reimburse commercial real estate developers for the installation of public infrastructure.
4. Revised the Arizona State Statutes to preserve the Government
Property Lease Excise Tax (GPLET) to promote redevelopment in blighted areas of municipalities.
5. Supported the City of Phoenix at the Arizona Supreme Court
by fi ling an Amicus Brief in Turken v. Gordon. Th e Amicus Brief helped per-suade the Supreme Court that a munici-pality’s use of sales tax to reimburse developers for the cost of public infra-structure was not in violation of the Arizona Constitution.
Source: Valley Partnership
VALLEY PARTNERSHIP: ROUNDTABLE
Pete Bolton
As we approach the fi fth year of the downward part of the real estate state cycle that has included the “Great Recession” and the bust of the Phoenix metropolitan housing and commercial real estate markets, we have
identifi ed a number of trends in commercial property manage-ment that have and will continue to impact our industry.
Value ProtectionThe old mantra, of maximizing revenues, minimizing ex-
penses and thereby maximizing cash fl ows and values has now been replaced with managing to protect the investment and cash fl ows until the economy and markets recover. For the well-capitalized institutional owner, today’s depressed values are irrelevant as they are fortunate to be in the position that they do not have to sell. Their current strategy is two-fold, fi rst, reduc-ing costs through real estate tax appeals, vendor rebidding and scope modifi cations (i.e. going from janitorial service 5 days a week to 3 days a week), and second, focusing on obtaining and retaining tenants by agreeing to shorter term leases and lease restructures at today’s lower market rates.
Non-Traditional Asset / Property ManagersIn an effort to keep key staff in related fi elds where there is
little activity, owners are now having their acquisitions, devel-opment project managers and fi nance personnel act as asset managers. Additionally, they are taking on signifi cantly more assets which results in substantially less time to understand and
provide clear direction on the management strategy for each asset. This leads to down-sourcing many tasks to the property managers as a way to get it all done without hiring an army of consultants. Today’s property managers are assisting with loan restructuring, lease restructuring, tenant’s bankruptcy, collection and liquidation situations which is at levels not previously seen by traditional property managers.
Green Buildings/Energy Effi ciency InitiativesBeginning in the early 2000’s, there began a growing aware-
ness of green buildings and energy effi ciency initiatives which would lead to operational costs saving and therefore increased values. However, due to the economic downturn, owners’ focus was drawn away from these initiatives as they dealt with much bigger issues. President Obama is seeking to re-focus commer-cial building owners with his Better Buildings Initiative, which will reward those owners who invest in retrofi ts and energy effi ciency initiatives with generous tax credits and loan guaran-tees. The goal of improving the energy effi ciency of commer-cial buildings by 20% by 2020 would take green building to an unprecedented level.
Michael Mathews, President, and Leslie Sherrod, Vice President, of Main Street Real Estate Advisors, a commercial property management company in the Phoenix metropolitan market that specializes in institutional quality offi ce, retail and mixed-use projects, including the commercial associations affi liated with the management of those projects. For more information, visit www.msrea.net
Trends in Commercial Property Management
MainStreet.indd 1 2/18/11 8:55:23 AM
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54 | May-June 2012
VALLEY PARTNERSHIP: ROUNDTABLE
sort of “deer-in-the-headlights-look” than when this crisis hit. A lot of people said, “I know what mode to go into,” and even the cities knew that it was going to be a tough 4-5 years to get through. At least for me the memories of the late ‘80s early ‘90s, those that are veterans knew what you had to do and what was required at that point in the cycle.
CH: I’m going to go on a little twist. I thought Pete was going to go there fi rst, but I’m going to the fi rst one to throw a ques-
tion back. Th e question is good. We talked about local and state, but what about the Feds? Is it diff erent now than 20 years ago with the Fed? I know that for the homebuilders and mortgage regulation, it has been a lot harder on them.
PB: John made a comment about the municipalities understand-ing current real estate. Th at hit pretty solid. I don’t think what
anybody understood is the way the banking system has changed and how many assets that were initially were held under the CMBS, and it is daunting to look at the RTC days and look at the special servicers of today. Th e banks play a role in the recovery in the downturn, and the bank’s FDIC, but the real power is coming out of Wall Street. You know what, the fascinating part of this is that they are just rebranding and heading back into something else. I mean it really is amazing to watch that place operate. And 90% of the population does not even know what is even going on in those four city blocks.
RH: What are the greatest challenges that lie ahead for Valley Partnership?
PB: Wall Street fi nancing and the infl uence they have on our businesses. I think it would be a great seminar sometime.
Bring in people who know how to chat about it. It’s something that
Clesson Hill and Dave Scholl
VALLEY PARTNERSHIP: ROUNDTABLE
55
we all need to get educated on. I’m getting a severe education right now. As far as greatest challenges, I think nimbyism is right up there. We got to go vertical. The density is an issue. The econom-ics of density is an issue. What Scottsdale has been doing lately is almost unbelievable with the 6-, 7- and 8-story apartment build-ings. I thought I’d never see this. I think the downturn has some fascinating outcomes much to so many people’s dismay. But from the standpoint of Valley Partnership, how do we start switching that mentality? I don’t know if all of you agree with this, but I think that horizontal development has got to take a leap vertically, for-ward. And we need the politicos to support us with that.
CH: I agree with that sentiment. What you’ll find is that you’ll get a number approved and then they’ll shut the door. I think
it is erratic. I don’t think that they will be consistent necessarily when they determine density. I’ve already seen just in Scottsdale, with apartments, it’s a four-letter world. Even though they have enough planned, everybody is getting afraid of what’s planned, even though they won’t all show up. I think that when you have erratic behavior in a city, it’s impossible which direction. It is an opportunity to keep them educated and keep in front of them as it relates to what are the benefits.
DS: Most of the built environment that you see every day in this town has happened in the past 60 to 65 years. One of the
biggest challenges that Valley Partnership has is that its member-ship must go forward, make a change and start addressing vertical construction. Our industry will have to start becoming better at harvesting tougher deals. I think that the days of “blow and go” at the surface is coming to a stop. In 1985, we all decided to pass a bill that we invest billions and billions into a freeway system and I don’t see a next super giant equivalent economic development dump of money like that was. I do think one of the biggest challenges for our membership, and therefore for us, is this change that is going to have to take place and really look into more sophisticated ways to do a better job.
CF: John and I were talking at a ULI gathering, saying we have a foot in each camp because we are both in very urban projects
in Downtown Tempe. Pete’s right that vertical development is here to stay and it is the wave of the future. It’s complicated because the infrastructure in the cities was not sized to take on big vertical proj-ects, so it really drives a complicated bargain for the cities and the municipalities. It has been really fun the past 5 to 6 years watch-ing Phoenix, Scottsdale, Tempe and Mesa. When when they get into that infill, they have to throw their zoning codes out and go to form-based management or some type of regulatory procedure. It is really fascinating to watch because some of these old style, stodgy cities have brought in these new-style thinkers and they’re throw-ing the books out and starting over. It’s really what it requires. They are going to have address the infrastructure because most of it is not sized right to go that dense.
JG: I have a general answer that I give to any organization to start with. I think that anybody that doesn’t continually evaluate
purpose, value and leadership will go the way of a dinosaur at some point. The thing that Valley Partnership has actually done a good job over the past 25 years is constantly asking those questions and
56 | May-June 2012
VALLEY PARTNERSHIP: ROUNDTABLE
generating legacy-type leadership. First and foremost my hope is that we continue to adapt – as an organization. I do think, and Charley is right, that we have talked about it a lot. One of the inter-esting things that we can and should weigh in on is this more den-sifi cation of the city and change the urban form. I think it is going to happen and if it is not done thoughtfully, the result is going to be much less fulfi lling and rewarding.
JP: Maybe we are using the wrong words. I have heard vertical. What about the context of urban? Urban applies to a lot more
things than verticality. It applies to design. It applies to use. It’s a small example, but look what has happened on 7th Avenue and McDowell. By converting the property, it’s jobs. It’s a planners dream. Jobs, housing, entertainment, and shopping in one spot. I don’t think that if you have a well-conceived project like that, then maybe they (cities) will have to redo their codes and maybe they might have to redo their outlook. But they get it. It’s what they were taught in school and if you can generate that excitement not only on the city level but on the community level, I think most people would get it instead of being absolutely terrifi ed.
RH: What are the greatest opportunities that lie ahead for Valley Partnership?
JP: We are going to have to understand that our industry is going to change, I think, drastically. I don’t think we are
going to Buckeye or Queen Creek anytime soon. We are neces-sarily talking about infill development; we are talking about the more urban concepts. That is going to involve a transformation of thinking and that is going to involve everyone in our indus-try. I’m excited about it. I can see opportunities within 4 or 5 miles from where we are sitting now. Same thing in Downtown Tempe. Same thing in Downtown Glendale. The same thing in any area that has a great mass of density. Hopefully an income level that would sustain a good quality development that needs
the services that I provide; the need for services that all of us provide. That is the exciting challenge. It was pretty easy back in the day. You go out and buy 20 acres and put down a grocery store, some shops, and a couple of paths and you go on your way. But 6 months later you have Walmart pouring footings across the street. Our experience with infill, once is happens, it is tougher to do. You’re dealing with land assembly. You’re dealing with environmental remediation. You’re dealing with high-priced land. If you can get it done, your competition is limited.
JG: The issue is – and I have seen this a lot recently – is who is waiting for the momentum play versus things just get-
ting better regardless of what you do? Prosperity versus the creativity play. I do think that this urbanism issue is one that will give us more lengths to recovery; a better place to live. It isn’t the only thing that Valley Partnership should focus on, but I think it is uniquely qualified to do a lot in that discussion just because of the cross section and the diversity it has in its membership.
CF: There is another dimension of redevelopment that we haven’t really touched on. Our first big project as a compa-
ny was Centerpoint in Downtown Tempe. When I was going to ASU there was a lot of old, rundown stuff there. It is immensely rewarding to just go see a re-creation of things that have dete-riorated and were once rundown. My personal experience, I was on the front of what was the old Caterpillar Tractor Desert Proving Grounds, and now we are doing Eastmark. We are tak-ing these vast pieces of really underused infilled properties.
CH: There may be the need to guide the committee structure and leadership toward urban redevelopment and higher
density issues. How do you back fill for infrastructure? Water lines need to be this big. There needs to be more priority put on the types of issues that Valley Partnership needs to focus on. Valley Partnership has never been a self-policing type of situation. If there was a way to get a grassroots raising of the bar in our industry, have a position and a dialogue that causes the membership to say that they want to operate at a higher bar than they are used to, a lot of good leadership could come out of it. Valley Partnership could drive the message of its own.
DS: When I look at the greatest opportunity or challenges, I have two thoughts. One is I continue to believe that the
best work that Valley Partnership does is at the grassroots lev-els and what it does with all of its cities and towns and educat-ing the staff and working with them to write new ordinances. Urban infill is a green field. They are going to have a lot of homework to do. In the job of being the communicator and sharer of great ideas, Valley Partnership can really play a great leadership role. I think that the challenge and opportunity is to make sure that you have the right staff and have the right committees and have people who are committed and engaged to get in there. I have been blessed to see the impact we have on city managers and planning directors and staff people by just having a dialogue and saying this doesn’t work and let me tell you why. I think that there is great opportunity.
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QWHAT DOES IT MEAN TO BE AN ADVOCATE FOR THE COMMERCIAL REAL ESTATE INDUSTRY?
A: One word, “important.” As a Metro Phoenix-based organization advocating for the industry, our focus is precise yet fl exible, and extends throughout the entire “Valley of the Sun.” Th e importance and responsibility of being the only real estate-based organization, not a chapter or division of a regional or national entity, but native to the Valley … “invaluable.” We are sought after and respected for our responsible positions on industry-related issues whether local, regional, statewide or federal.
QHOW IMPORTANT IS THAT ADVOCACY DURING THESE TOUGH ECONOMIC TIMES?
A: Advocacy is important all of the time. Each economic cycle cre-ates diff ering challenges for our industry, and, bad policy decisions, regardless of timing, impact subsequent cycles. A balanced advo-cacy approach minimizes potential negative outcomes, while fos-tering prosperity for all stakeholders, both public and private.
QWHAT ARE VALLEY PARTNERSHIP’S GOALS FOR 2012?
A: Continued application of our founding principles — advocacy, networking, education and community projects. Th is past October, bolstered by our board retreat, one facilitated by Todd Hornback, a respected non-profi t professional; we developed four centric goals for our 2012 focus — board development and leadership, organiza-tional communication, development and enhancement of strategic alliances and organizational fi scal policies.
QHOW WILL VALLEY PARTNERSHIP ACHIEVE THESE GOALS?
A: Each element of the organization has specifi c objectives or goals developed at the retreat. Measurable action items are continually evaluated, whether at the organizational, board, staff or committee
level. Th e organization’s biggest direction and eff orts come from the 10 standing committees, comprised of volunteer executives (part-ners) that execute on those goals and objectives. Our partners are our biggest assets. For the organization to continually evolve, and pursue its mission objectives, we must develop future leadership from these committees, thus fostering partner involvement.
QWHAT ARE THE BIGGEST CHALLENGES IN 2012?
A: Preparing for the eventual turnaround of our industry and that of the “Valley of the Sun” we all call home, while working with our partners through this still very challenging economic cycle. Valley Partnership’s mission remains constant, continual support for all of our partners and to help their organizations prosper.
QAS VALLEY PARTNERSHIP CELEBRATES ITS 25TH ANNIVERSARY, WHAT LIES AHEAD?
A: Th e road ahead includes a refl ection of our past, a continual focus on the present mission, and a strategic look at how our industry will manage the next two decades of Valley growth, which could include more than two million new Phoenicians. Th is refl ection has allowed us to touch our past 21 chairs so as to re-engage and respect our heritage, including the “founding” chair-man, Ron Haarer Sr. (1987). And, we said a fi nal farewell to a trust-ed leader and past chair in Gregg Alpert. We’ve catalogued our past accomplishments (municipal and legislative successes) or the more than 25 community projects completed, with more than $3.5M in charitable dollars raised and countless man-hours volunteered.As to our near-term future, continued organizational governance, growth of new partners and/or new partner fi rms, adding emerging business sectors to our already diverse business base and strength-ening our alliances. And, through our actions always declaring “Valley Partnership is the Valley of the Sun’s premier advocacy group for responsible development.”
Rick Hearn joined the Valley Partnership Board of Directors in 2005 and has been an integral part of its leadership team, culminating with the chairmanship in this, the 25th anniversary of the organization. A 25-year veteran of the commercial real estate industry, Hearn joined Vestar in 1994 as its director of leas-ing, overseeing much of the leasing, marketing and broker management of Vestar’s retail portfolio in the Southwest, complementing his duties and capacities as its designated broker.
Over the years, Vestar and Valley Partnership have enjoyed a rich heritage. Th ree of Valley Partnership’s chairmen — Lee Hanley (chairman/CEO), who participated in the original framework and served in 1995; and Pat McGinley (VP of property management), who guided the board in the 2003; and now Hearn — are affi liated with Vestar.
60 | May-June 2012
VALLEY PARTNERSHIP: CHAIRMAN Q&A
BY STEPHANIE GONZALEZ
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62 | May-June 2012
VALLEY PARTNERSHIP: PAST CHAIRMEN
BY MARIA THOMPSON
25Behind every great organization are great leaders. And Valley Partnership is no exception.
With the Valley-based development group celebrating its 25th anniversary, AZRE magazine posed the following question to its past chairmen: What was Valley Partnership’s most
signifi cant or greatest accomplishment while you were chairman?
Years of Exemplary Leadership
John Ogden, Suncor Development "Staying alive — I served for two years and it was clearly, 'staying alive.' We were just coming out of the RTC era and everybody was broke or being sued."
Meyer Turken, Turken Industrial Properties“We hired qualifi ed executive directors and became more politically and legisla-tively active. Our industry can be proud of the way we led the charge and have made Phoenix and Maricopa County the great metropolis it is today.”
1992-93 1994
Ron Haarer, Sr., Westwind Aviation“Valley Partnership’s fi rst Board of Directors was comprised of members of the development community, city offi cials and community activists. Watching these diverse groups working together was the ultimate reward for months of soul-searching and persistence and 25 years of continual existence.”
John Graham, Sunbelt Holdings“I’m proud that a new organization was able to survive a diffi cult real estate downturn and was a positive participant in working through the RTC era. A large number of people have contributed to (V.P.’s 25-year) success.”
David Scholl, Westcor/Vintage Partners“Valley Partnership’s participation in a yearlong discussion with the Regional Transportation Commission, and making eff orts in communication and partner-ship was a success.”
1987-88 1989 1990
Haarer
Graham
Scholl
Ogden
Turken
Charlie Byxbee, Byxbee Development Partners “Sustaining the organization through such a harsh real estate environment. In addition, we were actively involved with the policies of the Resolution Trust Cor-poration, and Valley Partnership was able to provide input to the RTC, including off ering testimony during oversight hearings that were held in Phoenix.”
1991Byxbee
63
Pat McGinley, Vestar“Created the framework for the Annual Sponsorship Program that was instituted for the following calendar year. Also, organized the first Flat Tire Tour and increased financial reserves for Valley Partnership to more than $200,000.”
2003
Lee Hanley, Vestar “Our objectives for 1995 were influencing government positions on real estate, expanding our membership, and providing networking opportunities. V.P. created a new category of membership for government agencies. Perhaps our greatest achievement was to retire a promissory note created in 1987 to finance Valley Partnership operations in the early years. We became self supporting.”Tim Terrill, Sella Barr/Walton“Substantially expanding our public sector membership and broadening out pri-vate sector reach. Advocating responsible development and input on real estate and growth policies at the state and local level.”
Clesson Hill, Grayhawk Development“Focusing on the growth of the community project and making it into an integral part of Valley Partnership’s membership and the efforts of our active committees.”
Jim Pederson, The Pederson Group“During my tenure, I was most proud of our progress in promoting quality devel-opment in Arizona. Such initiatives as ‘Growing Smarter’ provided a set of guid-ing principles to help Arizona not just grow, but reach for the next level in devel-oping quality growth.”
Gregg Alpert, Evergreen DevelopmentValley Partnership and the commercial real estate community lost a leader and a friend on Sept. 25, 2010, when Gregg Alpert unexpectedly passed away. He was 45.
Ken Roth, Roth Development“Valley Partnership’s greatest and most challenging accomplishment was trying to make sense of the events of Sept. 11 and assessing the relationship between the attacks and the real estate business.”
Heidi Kimball, Sunbelt Holdings“Valley Partnership assumed a leadership position in formulating the Outreach Task Force that was challenged with creating a coalition to work proactively on issues confronting business and the real estate development industry, thereby leveraging the industry’s influence at the local and state levels.”
19951996 1997-98 1999 2000 2001
2002
Hanley
Terrill
Hill
Pederson
Alpert
Roth
Kimball
McGinley
CONGRATULATES Valley Partnership
on advocating responsible development for 25 years.
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64 | May-June 2012
TiTle & Job PosiTions:37% . . . . . . . . . .owners/Partners/Presidents13% . . . . . . . . . . . . . . . . . . . . . Vice President25% . . . . . . . . . . . . . . . . Middle Management17% . . . . . . . . . . . . . . . . . . . . . sales/Marketing5% . . . . . . . . . . . . . . . . . . . . . . . . . . . brokers3% . . . . . . . . . . . . . . . . . . . . . . . . . . . . .other
79% of readers utilize AZRE Magazine as their primary
media source for information on all aspects of commercial real estate .
Circulation: . . . . . . . . . . . . . . . 25,000Readership: . . . . . . . . . . . . . . . 122,000
HERE’S WHAT WE ARE MADE OF:
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66 | May-June 2012
VALLEY PARTNERSHIP: PAST CHAIRMEN
Pete Bolton, CBRE/Grubb & Ellis“We needed someone well connected with the Legislature and Governor’s Of-fi ce and were fortunate to get Maria Baier (as President and CEO). She was considered one of the true experts on the subject (of development). We also put together the Cross Association Collaboration, which included Valley Partnership, NAIOP, ICSC, BOMA and almost every development association.”Jay Tubbs, Ryan/Monte Vista Consulting“Th e biggest accomplishments during my tenure were the growth in our mem-bership, Valley Partnership’s leadership role in the eff ort to achieve reform at the State Land Department and the continued focus and growth of the annual community project, which I consider one of the most important works of Valley Partnership each year.”Charley Freericks, DMB Associates“Working closely with State Land Commissioner Mark Winkleman to draft Proposition 106 and staff the lobbying eff ort. V.P. formed task forces under the county committees, providing prompt review of the proposition.”
Keith Ernest, RED Development“Collaborating with our membership to assist suburban municipalities in their eff orts to streamline the development processes. V.P. preserved the practice of al-locating sales tax revenues toward infrastructure reimbursement.”
Steve Betts, Suncor Development“Bringing together a coalition of business groups, cities and legislative leaders to pass innovative authority for local economic incentive development agreements with the appropriate protections of public interests.”
Sean Walters, Sunbelt Holdings“Th e board worked quickly and diligently with CEO Richard Hubbard to cut costs and increase benefi ts to our partners. We increased our focus on networking and helping unemployed members fi nd jobs with new enterprises. Valley Partnership additionally made adjustments to create a balanced budget for 2010.”
Mark Winkleman, ML Manager“Valley Partnership’s greatest accomplishment was holding together the primary voice for the real estate community during the toughest economy any of us have ever endured.”
Mindy Korth, CBRE“Valley Partnership members re-energized the commitment and focus of the organization and then getting the word out about our accomplishments through a thoughtful and branded communication plan.”
Bolton
Tubbs
Freericks
Ernest
Betts
Walters
Winkleman
Korth
2004 2005 2006 2007 2008 2009 2010 2011
mccarthy.com
McCarthy. Our Difference is Building.®
Redefi ning the Community Builder
BY MICHELLE LAUER
Mike Markham Jr., vice president and chief operating offi cer at Markham Contracting, isn’t involved in many trade organizations.
“But I’ve chosen to stay in Valley Partnership because of the value it brings,” Markham says. “It goes beyond just the business connections, it’s about to the community service we do. Th at’s why we stay involved — Valley Partnership is moving forward and trying to be infl uential in the Phoenix area while remembering it’s important to give back to the community.”
Th e fi fth-generation Arizonan established membership with Valley Partnership through the community project committee. Eight years later, he’s still involved with both Valley Partnership and the committee, which manages annual donations to local nonprofi ts to enhance facilities for children and those in need.
Markham began working in the construction industry in 1995, receiving his bachelor’s degree in construction engineering from Arizona State University in 1999. After several years at another company, he went to work for his father’s business, Markham Contracting, in 2001.
“We’re a family business my father started in 1977, so I grew up around Markham Contracting,” he says. “My dad founded it, and now we’re moving into our second generation — my sister and I are taking over the day-to-day operations, transitioning to the second generation.”
68 | May-June 2012
VALLEY PARTNERSHIP: PARTNERS
Heidi Kimball, vice president and designated broker at Sunbelt Holdings, exemplifi es the American Dream. She started working at the commercial real estate fi rm in 1982 as the receptionist, and worked her way up through decades of loyalty and dedication.
Kimball became involved with Valley Partnership in 1994, fi rst participating in the state leg-islation committee. Her fi rst year on the Board of Directors was in 1998, and, after several terms, she served as Valley Partnership president in 2002. Still active in the organization, she foresees Valley Partnership will continue its work as a channel between the public and private sectors.
“I think V.P. will carry on as the single point of contact for parties seeking resolution of a vari-ety of development issues,” she says. “From a public policy standpoints, we provide the resources, the contact to the development community, as well as a bridge to municipalities and government to the citizens through village planning committees and neighborhood associations.”
Kimball, who says she’s proud to see more women entering the construction industry and earning leadership roles, notes that Valley Partnership’s diversity serves in its favor.
“I think Valley Partnership serves a unique role in being able to speak to, really, all sides of an issue by virtue of our diverse membership,” Kimball says. “We can address governmental, citizen and developmental concerns.”
Jeff Chaves joined Valley Partnership four years ago because he shares common values with the organization — action and advancement.
“Valley Partnership has a very strong reputation for being the premier advocacy group in the Valley of the Sun, and I wanted to be part of that,” Chaves says.
Chaves spent the fi rst 15 years of his career as a consulting hydrogeologist, and then ventured into business development with civil engineering fi rm Olsson Associates. After serving as director of business development at Kitchell, he accepted a position at Abacus-Abengoa as market sector leader and where he currently serves in a consulting and advisory capacity. Abacus-Abengoa is an international company applying innovative technology solutions for sustainable development.
Th e father of four, baseball coach and California native serves as a member of Valley Partnership’s Board of Directors. Chaves was enthusiastic when asked to join the board last year because Valley Partnership’s impact is a tangible, infl uential force, he says.
“When you look back 25 years ago, when Valley Partnership fi rst started and industry profes-sionals were trying to get an audience with legislators, for example, it was diffi cult,” Chaves says. “Now, they come to us. Th at, as much as anything, is a good indication of the powerful impact of Valley Partnership in the Valley.”
Chaves foresees real estate developers will emphasize sustainability in the future, both econom-ic and environmental. Valley Partnership, he says, will remain a pivotal player in Arizona.
Mike Markham Jr. Markham Contracting
Heidi Kimball Sunbelt Holdings
Jeff Chaves Abacus-Abengoa
COMING NOV/DEC 2012
Refl ecting back on 25 years of Valley Partnership’s community projects
Looking forward to the next 25 years
RESERVE YOUR SPACEIN THIS SPECIAL SECTION TODAY!
Call 602.277.6045AZREmagazine.com
JANUARY - FEBRUARY 2012
NOVEMBER-DECEMBER 2011
NOVEMBER-DECEMBER 2011
ACA: Has it made an impact? p. 8
'Stealth' healthcare construction p. 16
AIA-Arizona: The best and brightest p. 30
Grand Designs
INSIDE
100 Years
of Arizona's
Architectural
Achievements
The University of Arizona's
Stevie Eller Dance Theatre was designed
by Gould Evans and built in 2003.
MARCH-APRIL 2012
2012 Outlook by Industry p. 8Valley Partnership Roundtable p. 28AZRE's 7th Annual RED Awards p. 40
INSIDE
The Valley's multi-family market will be brisk in 2012 with projects such as Optima Sonoran Village in Scottsdale.
To discover how Ryan can bring value to your next project, contact Molly Carson at 602-322-6140 or [email protected]
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69
70 | May-June 2012
VALLEY PARTNERSHIP: PARTNERS
Debra Stark, planning director for the City of Phoenix, joined Valley Partnership in the mid-1990s when the organization was fi rst forming and establishing professional ties throughout the Valley. She was working for Maricopa County at the time and recalls
being pleasantly surprised when Valley Partnership representatives appeared at the county’s Department of Transportation meeting, hoping to collaborate.
“I thought, ‘Th at’s refreshing!’ ” Stark recalls. “Th ey want to partner with us instead of us writing some legislation or ordinance and then them reacting negatively, and it’s better to partner than continue to fi ght. Th e next thing you know, I was drawn into the organization.”
Stark, who earned her master’s in planning from Arizona State, is on the city/county com-mittee. Th e Wisconsin native says she’s remained loyal to the organization for so many years because of Valley Partnership’s tangible, constructive impact on the Valley.
“Valley Partnership brings a reputation of quality, and I think any Arizonan wants a quality city, so this organization knows how to reach out and promote that level of excellence,” Stark says. “Th ey’re a voice in Arizona; they’re certainly a voice in Maricopa County and Phoenix, and they get involved for the right reasons, and that’s to improve the quality of life.”
After graduating from the University of New Haven with a degree in civil engineering, Dick Crowley entered the general contracting industry in 1980. Deciding he found his niche, he stuck with the fi eld. “I’ve been involved in projects in 20 states, including retail,
commercial, healthcare, parking structures — a vast array of various projects,” he says.Crowley has since spent his entire career in commercial construction, both in operational
functions and in marketing and development. Crowley is eight years into a fl ourishing career at Kitchell, an employee-owned construction, real estate and contracting company operating primarily in the Southwest, where he serves as vice president of marketing.
Crowley is also an avid pilot, father to 4-year-old Grace, and a strong believer in sustainable expansion. He joined Valley Partnership two years ago.
“Both Kitchell and myself, personally, have a vested interest in our community, particularly in Maricopa County,” Crowley says. “Valley Partnership really has become the premier advo-cacy group for real estate development, and as such it has created an opportunity for its mem-bers to have unique access to the policy makers that infl uence development in our community.”
Crowley serves on the sponsorship and events committees, and particularly enjoys Valley Partnership’s Friday breakfasts. “Th ere’s a networking function that people enjoy, but what keeps people coming back is that education component where they learn something.”
Molly Ryan-Carson is a legacy at Ryan Companies US, Inc., a national developer and commercial real estate fi rm. Her grandfather founded the company in 1938, blazing a trail for a family business that would eventually span three generations.
Ryan-Carson has been with Ryan Companies for 11 years. She served as retail development director for eight years, then earned a promotion to vice president of development in 2010.
She joined Valley Partnership at the recommendation of a colleague two years ago, when the commercial real estate market wasn’t exactly prospering.
“Th ough the last two years have been no picnic, it’s been very interesting to see Valley Partnership focus to maintain relevance and importance for individuals who are now look-ing for jobs, thereby strengthening the community,” Ryan-Carson says. “Th ey really put their money where their mouth is, and they work hard to achieve important goals. Both myself and Ryan Companies are certainly active supporters; we believe in V.P.”
Ryan-Carson sits on Valley Partnership’s Board of Directors, where she says she’s estab-lished relationships and connections that have positively impacted her career. She also serves on the events committee and often frequents the Friday morning breakfasts.
“I remain involved because I feel Valley Partnership is out to make a diff erence for individu-als at every level of commercial real estate and development,” she says.
Debra Stark City of Phoenix
Dick Crowley Kitchell
Molly Ryan-Carson Ryan Companies US, Inc.
COMMUNITY PROJECT
71
Extreme Backyard MakeoverValley Partnership's annual community project transforms a Maggie's Place facility
If there is one thing that every house should have it’s a dream backyard.
Even on a rainy November morning, Valley Partnership volunteers came together for their annual community proj-ect to bring the potential for an ideal backyard to fruition.
The mission was to refurbish the yard of one of the community facilities for Maggie’s Place, a home for expectant mothers who wish to achieve their goals in a dignified atmosphere.
The only significant feature of the backyard at Magdalene House’s in Phoenix, one of Maggie’s Places, was an old gazebo that was removed as part of the project’s construction. Additionally, there wasn’t much functionality with the lack of grass and a play structure.
The 2011 project brought in more than 150 volunteers — more than last year’s event — with the chance for each helper to contrib-ute. The volunteers could participate in any of the activities:Scraping the ground to level it out for the incoming playground;Filling the removed gazebo space with personalized bricks
used from donations;Building a small play area, including equipment for mothers to
have meetings while also watching their children; Planting, painting and ornamenting the yard to add decoration.The new backyard, completed in a day’s work, was a combination
of the volunteers’ vision and the residents’ excitement.Selecting a project each year is a collaborative effort usually by a
core group of volunteers on the Valley Partnership project committee. Project chairperson, Terri Martin-Denning of NAI Horizon,
says the group decided on Maggie’s Place because “it fit Valley Partnership’s mission; their needs aligned with our (Valley Partnership) goals.”
Once the project is chosen, a development team is assembled to plan the construction process. The committee members then look
for those with skilled labor to complete the heavy building; remov-ing the worn gazebo was one of those arduous tasks. Finally, the volunteers are recruited and the renovations can commence.
Those behind Maggie’s Place founded the first house on Mother’s Day of 2000 — a suitable day to express gratitude for current and future moms. Magdalene’s House in Phoenix began with five preg-nant women in need of a home. It has since expanded to five houses located in Tempe, Glendale and Cleveland, Ohio.
The mission of Maggie’s Place is to:Provide hospitality for pregnant women alone or on the streets;Connect expectant and new mothers to resources involving
prenatal care, health insurance and education;Inform and encourage the use of savings programs to prepare
mothers for life after Maggie’s Place.Valley Partnership is the only grass-root organization in Arizona
dedicated to promote responsible development. Its commitment was particularly revealed in the restoration of Maggie’s Place and the enthusiasm of both the volunteers and the recipients.
Director of facilities at Maggie’s Place, Dave Kriegl, says they are always looking for outreach from volunteers and organizations. He also says that despite the rain that November day, there was “quite a transformation and a remarkable change” after the volunteers fin-ished the job.
Both Martin-Denning and Kriegl say they believe the expecta-tions of the committee and the women residing in Maggie’s Place were fully met.
Through the laborious work of the volun-teers, the residents of the Magdalene House are able to relish in a renewed and kid-friend-ly backyard, host events and enjoy all the benefits that Maggie’s Place has to offer.
More than 150 Valley Partnership volunteers helped transform the grounds of the Magdalene House into a suitable environment for future moms and their kids.
BY MARIA THOMPSON
