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A R I Z O N A ’ S P U B L I C A T I O N F O R T H E C O M M E R C I A L R E A L E S T A T E I N D U S T R Y
MICHAEL A. POLLACKFrom the Beginning
Featured BrokersDave Cheatham & Darren PittsStaubach Retail
Company ProfileSundt Construction, Inc.Family-Owned and Founded on Integrity
MICHAEL A. POLLACKFrom the Beginning
Featured BrokersDave Cheatham & Darren PittsStaubach Retail
Company ProfileSundt Construction, Inc.Family-Owned and Founded on Integrity
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Contents August • 2008C
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6 Cover StoryMichael A. PollackFrom The Beginning
12 Making Headlines
15 Featured BrokersDave Cheatham and Darren Pitts Staubach Retail
20 People & Properties
24 Executive Q&AMark MinterArizona Builders’ Alliance
27 Company ProfileSundt Construction, Inc.
Industry News32 Show Me The Money!34 Formulating Land Values
36 On the Market
Executive PublisherMandy McCullough [email protected]
Publisher/EditorCarol [email protected]
Creative DirectorBob [email protected]
Graphics AssistantCaprice Perry
Contributing WritersKerry DuffWilliam French, Grubb & Ellis, BRE PhoenixChristia GibbonsRocco Mandala, CBRE Brian Rosella, Grubb & Ellis, BRE Phoenix
Photographyphotobyjl.comJoseph Saadeh, Final Vision PhotographyLinda Lee Story
© 2008 by MP Magazines LLC
All rights reserved. No part of this publication can bereprinted or reproduced without publishers permission.Opinions expressed are those of the authors or personsquoted and not necessarily those of CEM.
CEM is a monthly publication.
Annual Subscriptions $55
P.O. Box 10398Phoenix, AZ 85064-0398Phone: 480-946-0398fax: 480-946-1416www.cem-az.com
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Carol PerryPublisher/[email protected]
Mandy McCullough PurcellExecutive Publisher
Mandy Purcell
Subscribe atwww.cem-az.com
Three words aptly describe the man we feature on this month’s cover,Michael A. Pollack, founder and chief executive officer of PollackInvestments – a man who is honest, a man who has integrity and a manwho knows all about creating and maintaining stability.
When describing Michael, we would also add these words: determined, sin-cere, generous and passionate…just to name a few. His passion comesinto play not only in Pollack’s real estate dealings, but also his love of fami-ly, community and the arts…Yes, the arts. Michael is an accomplisheddrummer and a collector of antiques and fine art. Find out for yourselfmore about Michael by reading our Cover Story, starting on page 6.
There are many more examples of people and companies who possess thetraits of honesty, integrity and stability in our current issue including: DaveCheatham, Darren Pitts and Ed Beeh of Staubach Retail, our FeaturedBrokers (page 15); Sundt Construction, our Company Profile (page 27) andmany more. Each story offers a unique perspective on their success.
We would like to thank Christina O’Callaghan, as she enters a new chapterin her life. We are grateful for her contributions to the success of the mag-azine and wish her much future success.
We are pleased to announce the addition of Carol Perry as our newPublisher/Editor. Carol Perry is currently a partner and Publisher of oursister magazine - Residential Executive magazine, so we are thrilled tohave her join us here at Commercial Executive magazine, as well. Carol isa familiar face to many, as she has been involved in this real estate com-munity for more than twelve years. Carol brings her journalistic talentsand her advertising/sales expertise and we are fortunate to now have herskills at both magazines.
Sincerely yours,
Mandy PurcellExecutive [email protected]
Letter from the Publisher
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Pollack is the founder and chiefexecutive officer of Pollack RealEstate Investments in Mesa, a compa-ny that owns, operates, manages andleases its own portfolio of more than100 commercial and industrial prop-erties. He has been involved in over10 million square feet of real estateprojects over the course of his careerand now controls more than four mil-lion square feet of shopping centersand industrial parks throughoutArizona, California and Nevada. Sixtyof the projects are located in theValley of the Sun.
“Arizona is the land of opportunityand I’m an opportunistic buyer,”
MPMichael Pollack’sreal estate careeris a storied tale ofsuccess spanningnearly fourdecades. Hedeveloped his firstpiece of propertyin 1973 at age 18,and has sincebecome one ofArizona’s largestcommercialproperty owners.
By Kerry Duff
Cover Photo and this photo courtesy ofJoseph Saadeh of Final Vision Photography
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Pollack says. “When opportu-nity knocks, I am there toanswer the door.”
Pollack’s passion for realestate was kindled early onby his father, RobertPollack, and grandfather,Sidney Gambord. Theyowned Pollack & GambordDevelopment Company in San Jose,one of the leading development firmsin the area. Young Pollack remem-bers visiting his first jobsite with hisdad when he was in kindergarten. “Iremember getting stuck in the mudat the first jobsite my dad took meto,” he says. “They were digging apool and I had to see how it wasdone so I cut across a muddy court-yard and got stuck in the mud. Mydad was my biggest hero that daybecause he pulled me out.”
In third grade Pollackpresented a reportto his class onhow to read work-ing drawings andblueprints. In jun-ior high and highschool, he workedweekends for his dadand granddad. As amember of the con-struction crew helearned to do every-thing from carpentry
work to sheet rock to pouring con-crete. At 18, the young constructionworker found himself at a cross-roads in life - should he join amusical band or go into realestate. Although Pollack lovedmusic, and was even the winnerof the John Phillip Sousa Awardfor percussion in high school, hedecided on a career in real estate.Later that year, he bought his first
piece of propertyand started build-ing single-familyhomes. Duringhis early 20s, heearned a generalcontractor’slicense andstarted design-ing, buildingand renovat-ing multi-family proj-ects inCalifornia
and Texas. A decadelater he had either built or redevel-oped more than 10,000 single familyhomes and apartments.
“I was a trapeze artist without anet when I started in real estatebecause I believed in a lot of debt,”says 53-year-old Pollack. “But todayI’m smart enough to know that if I’mgoing to get up on a trapeze, I need agood net under me. When the stormhits, and it will, you have to be ableto cover your assets.”
Pollack moved his developmentcompany to Arizona in 1991 afterbuying a 23,623 square-foot shoppingcenter. Since then his company has
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focused on buying and redevelopingexisting retail centers around the Valley.
“When Michael redevelops a center,he revitalizes a community,” saysPatrick Cassidy, leasing and marketingdirector for Pollack Real EstateInvestments. “He turns eyesores intobeautiful vibrant places where peoplemeet, shop and work.”
Over the past couple years, PollackInvestments has taken a break fromacquiring shopping centers and isconcentrating on redeveloping someof its existing centers. While renovat-ing Royal Palm Plaza in Tempe, astrip mall on McClintock and EastElliot Roads, Pollack decided to takeover an existing discount movie the-ater. Although the theater was losingaround $400,000 a year, he invested$350,000 on new screens, new soundwalls and an entertainment area forthe lobby that has games and life-sizewax figures of the last six Presidents.The theater is called Pollack TempeCinema and about 300,000 patronspass through a year.
“I received around 3,000 phonecalls and emails from the communityabout not closing the theater,” hesaid. “The community likes this the-ater and appreciates the discounttickets, so I decided if I can run a realestate business, I can run a theater.Although it doesn’t make money, itdoes pay the rent.”
While Pollack’s redevelopmentefforts give back to local communi-ties, he is also a big supporter of localcharities. His 12-piece band,Corporate Affair, plays free for localcharity events and parades. The bandhas been playing together since 2003.
“When I was at a crossroads in1973 about whether to join a band orgo into real estate, I promised myselfI would go back to music someday,”he said. “I love music and I enjoymaking a positive difference in our
community. You can see the differ-ence these organizations make in oursociety and that’s important to me.”
Pollack has also amassed whatmany consider to be the world’slargest collection of 3D advertisingpieces. The entire 8,000-piece collec-tion is on display in the PollackAdvertising Museum, an expansive
7,000-square-foot museum he hadbuilt in 2000 next to his companyheadquarters. Although the museumis closed to the public, Pollack givesprivate tours twice a month to localorganizations. He also welcomes col-lectors from around the globe whocome specifically to meet him andexplore the museum.
© 2008 by MP Magazines LLC
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With a passion for collecting advertisingmemorabilia starting some 35 years ago,Michael Pollack has been asked many times“which one of over 8,000 pieces that you havecollected over the years, is your favorite?”
“That’s like trying to pick which one of your children is your favorite.Every piece in my collection is truly unique and have a special meaningto me”, stated Pollack.
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His appreciation for advertisingmemorabilia started when he was 14.He bought electric beer signs onSaturdays at a flea market near hishome in San Jose and on Sundayssold them to local antique dealers around the Bay area.Eventually, he stopped sellingthe signs and started collect-ing beer and larger relatedproducts, such as statuesand signs. A short time later,he added all types of 3Dadvertising pieces to his col-
lection – lunch boxes, banks, motiondisplays and more, ranging from$100 to $25,000 each. The collector’sfavorite pieces are mechanicalBaranger displays created between
1935 and 1955 at BarangerStudios in Pasadena,
Calif. Baranger’s made130 of the displaysand Pollack owns 107.
Pollack’s 28-year-old son, Daniel, vicepresident of PollackInvestments, said heused to travel to tradeshows all over theworld with his fatherto buy rare col-
lectibles and advertising pieces. “I’m not a collector myself, but I
found the thrill of the hunt a goodtime while I was growing up,” hesays. “People didn’t list things inter-nationally back then, so we had to goto different countries to find what wewere looking for. That’s how we spentour vacations.”
When Michael was asked about thefuture, he was quick to point out thateven though he is very involved inthe community with his band andmuseum, his first order of businessis……business!! ●
www.pollackinvestments.com
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Promenade Branch16435 N. Scottsdale Road, Suite 140Scottsdale, AZ 85254Ph. 480.612.6500
Esplanade Branch2525 E. Camelback Road, Suite 100Phoenix, AZ 85016Ph. 602.553.7444
Lincoln Branch6500 N. Scottsdale RoadScottsdale, AZ 85253Ph. 480.374.6800
WESTERNNATIONAL BANKC O O L C L E A R B A N K I N G
www.wnbank.com
NOW 3 Locations –
Local Knowledge.
And a Track Record to Prove it:Named one of Arizona’s 2007 “Companies to Watch” by the Arizona Small Business Association (only bank)
Named one of Arizona’s 2007 “Best Places to Work” by the Business Journal
Named 2007 “Bank of the Year” by Southwestern Business Financing Corporation
Named one of Arizona’s 2008 “Hot Growth Companies” by BizAz (only bank)
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WESTERN NATIONAL BANK
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Greg DiDonnaReal Estate Lending Services602-553-7445 – [email protected]
CB Richard Ellis Negotiates76,625-Square-Foot Leaseat Northwest PhoenixOffice Complex
Grubb & Ellis|BRE Commercial,LLCB Richard Ellis has negotiatedthe lease of 76,625 square feet ofoffice space at Pinnacle PeakCommerce Center, located on thenortheast corner of Pinnacle PeakRoad and 23rd Avenue in Phoenix,Ariz.
Brad Anderson and Bryan Taute ofCBRE’s Phoenix office representedthe tenant, Redflex Traffic SystemsInc. of Scottsdale, in negotiation itsseven-year lease. The landlord,Orsett Properties of Phoenix, wasrepresented by Tim Whittemore ofCushman & Wakefield in Phoenix.The exact financial terms of thetransaction were not disclosed.
Redflex Traffic Systems Inc. is thelargest provider of digital red light
and speed enforcement services in North America, withphoto speed programs in nine states and photo red lightprograms across 20 states. In order to expand its currentoperations, the company plans to relocate from NorthScottsdale into its new office at Pinnacle Peak CommerceCenter in September 2008.
For more information, visit www.cbre.com
Land Advisors Organization NegotiatesLand Deal Totaling Approximately $77Million.
The buyer was Najafi Cos., a Phoenix, Ariz.-based pri-vate investment firm and the seller was Trend Homes.
Steve LaTerra, of the Land Advisors Organizationadvised both parties independently on their disparateobjectives during the transaction. "Bankruptcy is neverreally a win/win for everyone, but in this case, it's about asclose as it gets," said LaTerra.
"We were working with Trend tofind an effective way to recapitalize,and we were working with the Najafisto invest in home building," saidLaTerra. "Now Trend is open for busi-ness and probably one of the bestcapitalized builders in our market-place."
For more information, visit www.lan-dadvisors.com
CB Richard Ellis Negotiates 72,597-Square-Foot Lease at Ryan West BusinessPark in Tolleson, Ariz.; QuietFlex ExpandsValley Manufacturing Facility
CB Richard Ellis has negotiated the lease of 72,597square feet of manufacturing space in a multi-tenantindustrial building at Ryan West Business Park, located inthe Southwest Valley.
Joe Porter, Pat Feeney and Dan Calihan of CBRE’sPhoenix office represented the landlord, Liberty PropertyTrust of Malvern, Penn., in negotiating the eight-yearlease. The tenant, Houston, Texas-based QuietFlexManufacturing Company, was represented by MarcHertzberg of Grubb & Ellis|BRE Commercial in Phoenix.The exact financial terms of the transaction were not dis-closed.
Located at 8313 W. Pierce St. in Tolleson, Ariz., the228,239-square-foot industrial building was completed in
Kyler KienholzReal Estate Lending Services602.553.7475 [email protected]
Josh CookMortgage Banking Manager602-553-7467 – [email protected]
MakingHeadlines
The Big Deals and the Brokers Who Made Them Happen
Brad Anderson
Bryan Taute
Steve LaTerra
Joe Porter Pat Feeney Dan Calihan
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Promenade Branch16435 N. Scottsdale Road, Suite 140Scottsdale, AZ 85254480-612-6500 Phone • 480-612-6510 Fax
Esplanade Branch2525 E. Camelback Road, Suite 100Phoenix, AZ 85016602.553.7444 Phone • 602.553.7449 Fax
Lincoln Branch6500 N. Scottsdale RoadScottsdale, AZ 85253480-374-6800 Phone • 480-374-6818 Fax
Kevin WildeDeposit Services – Esplanade/Phoenix602-553-7468 – [email protected]
Kathy CamachoDeposit Services – Scottsdale Branches480.612.6525 – [email protected]
Presented by Making Headlines
April 2007. Its best of class features, which include 30-foot clear height, ESFR fire protection and a 170-foottruck maneuverability area, make the project attractive tomanufacturing and distribution companies. The additionof QuietFlex brings the building’s occupancy to 68 percent.
QuietFlex Manufacturing provides high-quality, afford-able flexible air duct to the HVAC industry. In order toexpand its current operations, the company will relocatefrom a 25,000-square-foot manufacturing facility inPhoenix to its new space at Ryan West Business Park thismonth. In addition to the new Tolleson facility, QuietFlexoperates other manufacturing facilities in Houston, Texas;Dayton, Tenn.and Groveland, Fla.
For more information, visit www.cbre.com
Grubb & Ellis|BRECommercial, LLCCompletes Sale ofGlendale IndustrialBuilding
Grubb & Ellis|BRE Commercial,LLC, one of the leading providers ofintegrated real estate servicesannounced it has completed the saleof a 25,129-square-foot generalindustrial complex at 5213 W. LamarRoad. Tin Cup Properties, LLC, aninvestment buyer from Tucson, pur-chased the property for $1.65 mil-lion. Built in 1982, the complex was100 percent leased at the time of sale.
Paul Boyle and Rick Danis withGrubb & Ellis|BRE Commercial, LLCrepresented both the buyer and theseller, 5213 West Lamar RoadIndustrial Complex, LLC, during thetransaction.
For more information, visit www.brephoenix.com
Grubb & Ellis|BRE Commercial, LLCCompletes Sale of Three Parcels at 25thAvenue and Mcdowell Road
Grubb & Ellis|BRE Commercial, LLC, announced it has
completed the sale of three separateparcels located on the southwest cor-ner of 25th Avenue and McDowellRoad. JLB Ventures, LLC, a PhoenixInvestment company, recently closedon land located at 1402 and 1428 N.24th Ave., 2401 W. McDowell and2503 W. McDowell.
The contiguous land assemblage,which includes a parcel alreadyowned by JLV Ventures, totalsapproximately 10 acres. The totalconsideration of the three parcelspurchased was $3.2 million.
Louis G. Finocchiaro, SIOR andJohn Pompay with Grubb &Ellis|BRE Commercial, LLC repre-sented JLB Ventures during thetransactions.
For more information, visitwww.brephoenix.com
Old Town Chandler Building Sells for $4Million
The office/retail building at 8 S. San Marcos Pl. in his-toric downtown Chandler has sold to a Montana investorfor $4,030,000.
The building, which was construct-ed in 1954, is fully occupied with SanTan Brewery as its major tenant.
Desert Viking Properties LLC ofChandler sold the property toMontana-based Highland Properties2308 LLC. The 12,776-square-footbuilding is located in the heart of his-toric Chandler and was significantlyrenovated in February 2007.
“The buyer was drawn to this assetby its very strong occupancy level andthe dynamic rejuvenation of old town Chandler,” saysBrian Ackerman, a director with Cushman & Wakefield ofArizona, Inc. “This area of Chandler has recently increasedin popularity with an influx of unique retail tenants and
Paul Boyle
Rick Danis
Louis Finocchiaro
John Pompay
Brian Ackerman
continued on page 38
LeasingBrett K. SheetsVice President of [email protected]
AcquisitionsJohn J. ConaDirector of [email protected] 602.778.8762
DevelopmentJeff Simpson Senior Vice President of [email protected]
F For nearly three decades, Cole has been acquiring, improving and managinghigh-quality, retail real estate across the United States. Cole related entitiescurrently own approximately $3.2 billion in assets in 45 states.
Call us today if you are selling, interested in leasing or developing retail properties.
© 2008 Cole Capital Advisors, Inc. All rights reserved. The tenants and properties pictured, which may contain illustrativerenderings of properties, are illustrative of the types of tenantsand properties that have been acquired by Cole Companies.Cole is not affiliated or associated with, is not endorsed by,does not endorse, and is not sponsored by or a sponsor of thetenants or of their products or services pictured or mentioned.The names, logos and all related product and service names,design marks, and slogans are the trademarks or service marksof their respective companies.
2555 East Camelback Road Suite 400Phoenix, Arizona 85016www.ColeCapital.com888.677.2653
A Trusted Name ForR e a l E s t a t e I n v e s t m e n t F u n d s
� Acquisitions
� Leasing
� Property
Management
� Development
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Featured BrokersPresented by
“We strive to do a good job for ourclients and help them succeed,” says48-year-old Cheatham. “When theysucceed, our team succeeds.”
Cheatham and Pitts and Ed Beeh, a20-year industry veteran that special-izes in landlord representation, areprincipals of Staubach Retail inPhoenix. They started the company in2005 after leaving CB Richard Ellis(CBRE) where they worked for a
number of years on the same retailteam. Other members of the CBREretail team also made the move toStaubach. Since then the team hasgrown to 26 members.
“CB is an incredible company buttheir focus was not on retail,” saysCheatham. “Staubach is truly anational retail company that focuseson retail and allows us to put ourclient’s needs first. Now we eat drink
We strive to do a good job for our clients and help themsucceed. Whenthey succeed, our team succeeds.
Dave Cheatham and Darren Pitts arelongtime friends, business partners and dealjunkies. They thrive on competition andnegotiation and helping their clients succeed.
Cheatham and Pitts lead the tenant representation teamat Staubach Retail in Phoenix. Last year they conducted 115transactions and leased 2.7 million square feet of space. Thetransactions were valued at $361 million.
DDarren Pitts, Dave Cheatham and Ed Beeh
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and sleep retail.”Although the partners agree that
the company’s success is based onteamwork, Beeh pays tribute to theworking relationship among the part-ners and their differing personalitiesand opinions. “Our diverse strengthsand weaknesses help us run the com-pany the way it should be run,” saysBeeh. “It also helps us make goodbusiness decisions.”
Staubach Retail is a division of TheStaubach Company in Texas. Thelocal firm provides retail users andretail property owners with a fullrange of services including broker-
age, development, capital solutions,consulting and managed services.Their specialty areas are automotive,service and convenience, restaurantand entertainment, anchor and jun-ior anchor, food and drug and fash-ion and lifestyle retailers.
Cheatham and Pitts have beenretail partners for over a decade.They both enjoy the constantchanges in the industry as well as thenew opportunities and concepts thatensue from change. Pitts contendsthat retail also has more personalityand is a lot more exciting than thevanilla industrial side of commercialreal estate.
“There is continuous birth anddecline in retail,” Pitts explains.“Stores like Montgomery Ward’s andHome Base may no longer exist, butthey’re replaced with new stores likeKohl’s, Old Navy and Whole Foods.Change creates opportunities andthat’s exciting.”
Staubach Retail’s comprehensiveknowledge of the market, winningreputation and focus on building
Dave Cheatham
Darren Pitts
There is continuousbirth and decline inretail. Stores likeMontgomery Ward’sand Home Base mayno longer exist, butthey’re replaced withnew stores likeKohl’s, Old Navy andWhole Foods. Changecreates opportunitiesand that’s exciting.
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long-term client relationships hashelped the firm land big name retail-ers such as JC Penney’s, the Gap andCVS Pharmacy. Cheatham and Pittshave also been working with Mimi’sCafé since the early 1990s when theyopened their first store in Scottsdale.Mimi’s now has 11 Arizona locationsand they were responsible for findingeach site and negotiating the deals.The dynamic duo has also been rep-resenting Lowe’s Home ImprovementWarehouse since 1998 when theyfirst came to Arizona. Pitts, who was27 at the time, considered it atremendous victory to land a majoraccount and at such a young age.
“Dave and Darren are really greatguys and extremely knowledgeable
about the retail market,” says DaniMayer, vice president of developmentfor Mimi’s Café. “They also haveestablished relationships with majordevelopers and that’s incrediblyimportant when you need to get infront of someone early on and no oneknows you or your company.”
Cheatham’s career in commercialreal estate spans more than twodecades. He started working forCBRE in 1984 after earning a busi-ness degree from Biola University in
LaMirada, Calif. Although he initiallywanted to be an attorney, he wascoaxed by the father of his girlfriendat the time to change the focus of hiscareer. “My girlfriend’s father wasadamant that I go into commercialreal estate and I listened to him,” hesaid. “And it was the right decision. Ilove this business!”
When Cheatham has time off fromwork he enjoys photography andtraveling around the world. Last yearhe spent several weeks in Icelandphotographing glaciers and geothermalanomalies. This year, for the fifthtime, he will travel to Africa with thenot-for-profit organization NorthriseInitiative to help build a Christianuniversity in Zambia. In past years he
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Darren & Denise Pitts, along with Ken Starr,dean of Pepperdine University's School of Law,at a Peppedine event in 2007.
African children in Zambia hold a bannerto thank Staubach and NorthriseInitiative, a not-for-profit organizationthat Cheatham is involved with.
Dave photographs a penguin inAntarctica.
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Lake Pleasant Crossing - Currently under construction at the northeast corner of Lake Pleasant and Happy Valley in Peoria.
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worked with children’s hospitals andrefugee camps and supplied resourcesto the African people. Cheatham andhis wife Laura have been married 23years and have two daughters.Courtney is a sophomore at BiolaUniversity and Allyson is a sophomoreat Scottsdale Christian Academy.
Pitts, 37, has been working in retailreal estate since the fall of 1995 whenhe graduated from PepperdineUniversity in Malibu, Calif. with anMBA in finance. He has been mar-
ried to wife Denise for 12 years andthey have two children. Davis is sixand daughter Denae is four. Pittsmaintains balance and perspective inhis life by staying actively involved inhis church, watching the DallasCowboys, Suns and Diamondbackson TV and spending as much time aspossible with family. He also driveshis son to school every day so thetwo of them can chat. “I’ve learnedover the last few years that balance isvery important in life,” he says. “Thisis a lucrative, competitive and per-formance-based business so a lot ofpeople start work at 6 a.m. and endtheir day at 7 p.m. For me it’s asimportant to go to my kids T-ballgame as it is for others to work 14
hours a day.” Although the commercial real
estate market is on a downward spi-ral, Cheatham, Pitts and Beeh are notdiscouraged. They plan to hire morebrokers over the next few years andexpand the Staubach brand intoNevada, New Mexico, Utah andCalifornia.
“This is our vision for the foresee-able future,” says Beeh. “We’re goingto ride out the tough times and keepdoing what we’re doing. Arizona is agreat place to live so once we getthrough this downturn people willcontinue to move here and we willcontinue to grow.” ●
www.staubach.com
This is our vision forthe foreseeablefuture... we’re goingto ride out the toughtimes and keep doingwhat we’re doing.Arizona is a greatplace to live so oncewe get through thisdownturn people willcontinue to movehere and we willcontinue to grow.
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Laura Cheatham with daughters Allysonand Courtney
Traditional early morning Antarctic swimin 33 degree water. Deception Island,Antarctica▲
▲
© 2008 by MP Magazines LLC
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Featured Broker Nomination Form
Criteria for Nomination:● Active commercial real estate broker● Minimum of five years in the industry● A top producer who is in the top 15 percent of
the company or area● Respected by peers in the industry● Active in the real estate community● Dedicated to the industry and involved in
professional activities such as committees,associations or boards
Nominee Name:
Company: Address:
Phone:
Fax:
Email:
Submitted by (required):
Name:
Company:
Phone:
Email:
Reason for Nomination: (You may attach a separate sheet to submit more information)
Please fax or email to:480-946-1416 • [email protected]
Who Will Be
The Next
Featured
Broker?
Arizona’s Publication for the Commercial Real Estate industry
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Announcements • Press Releases • Promotions • Awards • Community Info
Denise Hart Joins Vestar Development Co.as Vice President of Marketing
Denise Hart joins Vestar as the Vice President ofMarketing, and will oversee the public relations, advertis-ing, promotions and sponsorship activities for the compa-ny’s retail destinations, including both properties Vestarowns and those it manages. She boasts more than 20 yearsexperience in retail, tourism and sponsorships.
She was most recently the Director of Marketing forArizona Mills, where she directed advertising and promo-tional activities for the super regional shopping destina-tion. Previously she held posts with Nike, Marriott andHost Communications in Oregon, Texas and Arizona.
“Denise brings an incredibly strong foundation of lead-ership and experience to the table,”said Pat McGinlen, Vice Presidentof Property Management. “We’rethrilled she’s joined the team.”
In Hart’s new position, she willoversee the marketing staff andprograms for Tempe Marketplace,Desert Ridge Marketplace, CanyonTrails Marketplace, Happy ValleyTowne Center, Sundance TowneCenter, Lake Pleasant TowneCenter and numerous other region-al retail destinations.
For more information, visit www.Vestar.com.
The Plaza Companies Announced theOpening of Paradise Valley Medical Plaza
The Paradise ValleyMedical Plaza is a five-story, 110,000-squarefoot, ‘class-A’ medicalproject and multi-levelparking structure. Thebuilding is located onthe northwest corner ofthe hospital campus,located at Bell Roadand 40th Street.
The design integrates “class-A” design elements typical-ly found in conventional office buildings and resorts withfundamental requirements for a medical office environ-ment. Plaza’s project goal of delivering a unique ‘healing’environment was achieved by creating an inviting lobbywith a plasma television, custom artwork and comfortable
seating areas throughout the project. Other project ameni-ties include oversized elevators, a shaded break pavilion,and an electronic touch screen directory in the building’slobby which complements a hospital-wide way-findingprogram that includes vehicular and pedestrian signageand a new monument which identifies building tenants.
Butler Design Group served as the principal architectand the Weitz Company served as the general contractor.The Plaza Companies partnered with USAA to finance theproject.
For more information, visit www.theplazaco.com or call623-972-1184.
Ryan Companies US, Inc. to Build ChandlerFreeways Spec Warehouse
Ryan Companies US, Inc., one of the Valley’s largestdevelopers of commercial and office properties, announcedplans to build a 130,708 SF spec warehouse facility at theChandler Freeways Business Park off the Loop 202 SantanFreeway and 56th Street in Chandler. It will be the fifthbuilding in Ryan’s 58-acre master-planned business park,which is designed to provide back office, research anddevelopment, general industrial, high-tech manufacturingand distribution space.
“This location is ideally suited for a variety of industrialclients due to the extremely easy access to both theInterstate 10 and 202 freeways, with exceptional visibilityfrom the Loop 202,” notes Todd Holzer, Vice President ofDevelopment for Ryan Companies Southwest Division.“The South East Valley continues to be a growing marketfor industrial development.”
Balmer Architectural Group, the architect for the Park,has designed the building to best respond to the market
Denise Hart
Paradise Valley Medical Plaza
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with a 28’ clear height, cross docks, ESFR capabilities anda floor plate that can easily be divided into eight tenantsuites. Construction will take seven months, with comple-tion date slated for May 2009.
Tom Louer and Allen Lowe of Lee & Associates are thelisting brokers ([email protected]; [email protected]).
For more information, visit www.ryancompanies.com
McCarthy EnhancesEducation Sector withMarket Specialist
After serving as the associatedean of administrative services forthe largest community college dis-trict in the country, Jaime Garridohas joined McCarthy BuildingCompany’s Education ServicesGroup to help the company pene-trate the higher education market.
“Jaime understands the needs of the market to accom-modate tight budgets and diverse needs – we see a realvalue in what he brings to our expanding educational servicesportfolio,” said Rob Langhoff, vice president of McCarthyand leader of the educational services business unit.
Garrido joins the company as director of EducationServices. He will work toward building McCarthy’s capa-bilities in higher education with his unique understandingof the sensitivities in this market, and will work collabora-tively with the company’s clients on ensuring efficienciesand minimizing student disruption at the outset of projects.
Garrido is a resident of Gilbert and is a director-at-largefor the Society for College and University Planning(SCUP).
For more information, visit www.mccarthy.com
UTAZ™ Development Names Steve SeegerVice President of Sales and Marketing
Steve Seeger has been named Vice President of Salesand Marketing for UTAZ™ Development Corporation.
Headquartered in Gilbert, Arizona,UTAZ™ is considered one of thefinest developers of professionaloffice space in the country.
Seeger has more than 14 years ofexperience in real estate sales.Most recently, he served as VicePresident of Sales and Marketing/Designated Broker for D.R. Hortonin Phoenix which led the metroPhoenix market in both closingsand sales in 2007. His real estate
career began in 1995 with Monterey Homes, the luxurydivision of Meritage Homes.
In his new role at UTAZ™ Development, Seeger overseessales and marketing for the company’s portfolio ofProfessional Office Villages (currently 36) and for MyExtra Garage™, a new division that is developing luxurygarage villages throughout the Valley. Seeger and his wife,Trish, reside in Scottsdale.
For more information, visit www.utaz.com
Edge Commercial Real Estate PromotesMelynn Wakeman to Director
Melynn Wakeman, formerly Associate Director, EdgeCommercial Real Estate Advisors, Scottsdale, has beenpromoted to Director.
William F. Becker, Chief Executive Officer of Edge says“Ms. Wakeman brings to Edge not only a phenomenalwork ethic, but also an invaluableknowledge base within the medicalfield. This combination of medicaland real estate expertise has beenextremely well received in the mar-ketplace and has established Ms.Wakeman as a trusted advisor tomany clients and prospects in avery short time. Melynn will bemoving to an expanded role whereshe will be actively marketing con-sulting services as well as realestate transactional work. We have high hopes and expec-tations for Melynn in the coming months and years!”
Ms. Wakeman has been actively involved in the healthcare profession since l987 as both a clinician and a man-ager. She holds credentials in the field of respiratory med-icine as a Registered Respiratory Therapist and RegisteredPulmonary Function Technologist.
Melynn’s impressive educational and applied experiencein the healthcare and business management fields adds awealth of talent and valuable expertise to the Edge team.
For more information, visit www.edgerea.com
CRES Appraisal Services Announces MajorExpansion
Five commercial real estate appraisers formerly withColliers International in Phoenix have joined CRESAppraisal Services. They have joined Dan Paulus, MAI,who is founder and president of CRES Appraisal Services.Paulus was the former president of Colliers’ North Americanappraisal operation.
Newly arriving at CRES Appraisal Services are DennisFarr, MAI, Arizona managing director; David B. Sakas,
People & Properties
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senior appraiser/consultant; Katie Zeibig, appraisal ana-lyst; Kimberly Ryan, appraisal analyst; and KenSchonauer, appraisal analyst.
Paulus, Farr and Sakas have worked together in com-mercial real estate appraisal for more than 22 years, andtogether they are the core team at CRES AppraisalServices. “Having this professional team together onceagain will create a tremendous competitive advantage forCRES Appraisal Services and our clients,” said Farr.
For more information, visit www.prucres.com.
Mitchell Stravitz has joinedColliers as a senior associate work-ing with Bob Lundstedt andDarren Tappen in the ScottsdaleOffice. He brings five years ofindustry experience to the teamand will be focused on industrialsales and leasing for the team’sdevelopments. Mitchell comes toColliers from CB Richard Ellis.
For more information, visit www.colliers.com
Leading Commercial Real Estate FirmSpecializing in Industrial and Office Salesand Leasing Appoints New Director ofMarketing and Research
Commercial Properties, Incorporated (CPI) announcedthe appointment of Jeff Bassett as its new Director ofMarketing and Research. A recent graduate of ArizonaState University’s, W. P. Carey School of Business –
Marketing, Jeff Bassett brings aunique mix of technology, leader-ship and service excellence to CPI.Stepping into the position at theend of June, Jeff Bassett is “excitedand looking forward to buildingupon a successful brand in aneffort to expand CPI’s currentrecognition and previous success.”
Leveraging his experience in thefields of technology, architectureand real estate, Jeff Bassett sees
the new appointment as an opportunity to refocus andstreamline the department. “By revisiting the fundamen-tals of marketing and service excellence we will not onlybe able to continue to provide the exceptional service thatour clients and the brokerage community have come toexpect, we can also shape a new version of CPI that is ded-icated to and embraces the ideals behind our mission of
being ‘Business Partners’ and ‘Trusted Experts’” says Jeff.
For more information, visit www.cpiaz.com
Opus West Promotes Jason Meszaros ToDirector, Real Estate Development
Leading developer Opus West Corp. has promoted JasonMeszaros to the position of director, real estate develop-ment in the company’s Phoenix headquarters office. In hisnew position, Meszaros will play a more active role in pur-suing and conceptualizing new opportunities, as well asexecuting committed development projects in the Phoenixmarket. In the past 28 years, Opus West has developedmore than 49 million square feetand has approximately 11 millionsquare feet of new space underwayacross the West.
Since joining Opus West in 2006as a senior manager, Meszaros hasassisted in leasing existing proj-ects such as the high-profileCollier Center mixed-use develop-ment in downtown Phoenix, theCotton Center flex project inPhoenix’s Sky Harbor Airport mar-ket and the Black Canyon Center office project on PeoriaAvenue at I-17 in Phoenix.
Meszaros also has been directly involved in the develop-ment of the new Glendale Corporate Center in Glendale,Ariz.; North Scottsdale Corporate Center in Scottsdale,Ariz.; and Chandler Airport Center Phase I in Chandler,Ariz., which was recently named the Spec Office Buildingof the Year by the Arizona Chapter of the NationalAssociation of Industrial and Office Properties.
Meszaros has 11 years of industry experience, includingemployment as vice president with Hewson DevelopmentCorporation. He is a member of the National Associationof Office and Industrial Properties (NAIOP) and the UrbanLand Institute (ULI).
For more information, visit www.opuscorp.com
To have an item of interest included in anupcoming edition of People and Properties, email all submissions to [email protected]
Mitchell Stravitz
Jeff Bassett
Jason Meszaros
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*Mor tgages Ltd. is the parent company of Mor tgages Ltd. Secur it ies (MLS). Secur it ies of fered through MLS , a registered broker-dealer and member of FINRA .
4455 E. Camelback Rd. Phone: 602.277.5626Phoenix, Arizona 85018 www.mtgltd.com
Scott M. Coles: A Man of Great PassionFebruary 28, 1960 – June 2, 2008
If in everyone there is a work of art, then Scott M. Coles was a masterpiece.
He appreciated beautiful things and was passionate about his family, his
business and our community. Scott was kind, sensitive and cared deeply
about those who were part of his life. His passion and integrity for his
business and commitment to his investors and clients was legendary. While
he may have been most comfortable talking about business, the private side
of Scott reveled in spending time with his three children and wife, Ashley.
The Scott & Ashley Coles Charitable Foundation is respected throughout the
community and many have benefited from their generosity through the years.
Scott and Ashley gave not as a duty, but as a privilege.
The family of Mortgages Ltd. Securities will profoundly miss Scott, his energy,
vision and capacity to see things differently. The managing directors and our
employees are committed to carrying forward the legacy of Charles and
Scott Coles, and the tradition of 45 years of performance and client service.
Managing DirectorsLaura Martini, Acting President
Christopher J. Olson, CPA, VP & Chief Financial Officer
George Everette, VP & Chief Information Officer
The Arizona Builders’ Alliance (ABA) is a not-for-profit tradeorganization with over 350 member-companies that supportcommercial construction. Members have access to a nationwidenetwork of construction industry professionals, owners, buildersand publications and services that help boost a company'svisibility and success.
ABA has been serving the construction industry since 1994.The association was formed following a
merger between the Arizona chaptersof the Associated General Contractors
and Associated Builders &Contractors.
Mark Minter, ABA’s executivedirector, talks about theorganization and Arizona’s
commercial construction industry.
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Q: How does ABA assistcompanies in the commercialconstruction industry?A: The purpose of a professional tradeassociation is to do for members whatthey cannot do for themselves. A goodexample in our case is the shortage ofcraft workers that has plagued ourindustry for decades. Most constructioncompanies cannot devote resources tothe task of recruiting from non-traditional sources, whereas ABAemploys a high school recruiter whosefulltime job is to talk to students invocational classes. No one companycould afford a person like that, but asan association we can afford it and ithelps all the businesses in ourorganization find craft workers.
Q: How would you describe thecurrent state of the commercialconstruction industry?A: The industry right now is still prettygood. But we are experiencing thebeginning of a slowdown as we comeoff the boom of the last few years interms of work opportunities. Projectowners are also becoming concernedabout the economy and financing andmany are delaying projects.
By Kerry Duff
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Q: How many people areemployed in this industry inArizona?A: Approximately 250,000 people areemployed at the trade level.
Q: What is the average wage fora skilled construction worker? A: The average hourly wage is$18.21, according to a reportpublished October 2007 by theUniversity of Arizona’s Eller Schoolof Management.
Q: Is the downturn of theresidential market having aneffect on commercialconstruction? A: Commercial construction is seeingsome slowdown as a result of thedownturn in the residential market.However, there are many projectsthat have nothing do to withresidential such as downtown officebuildings, the light rail and buildingexpansions.
Q: A couple years ago the statewas behind on building churches,public buildings, fire stations,etc., for the growing population.
Is this still the case? A: Arizona is stillbehind the curve on alot of public facilities,but the one we are way behind on isschools. Freshman enrollment atArizona State University has gone upby a third over the last five years dueto population growth. As a result thegovernor is proposing an aggressiveprogram of expanding and moderniz-ing current facilities as well as buildingnew university facilities.
We also are building dozens of K-12 schools all across the state. Abouta year ago one of our largecontractor members had 14 schoolsunder contract ($150-$200 million) atone time on top of office buildingsand other work they normally do.
Q: What are the Valley’s stronggrowth areas? A: Right now it’s the northwest sideof the Valley which includes Goodyearand Surprise. Surprise went from7,000 to 100,000 people in the last 10years, so it’s a booming suburb. Thesame thing is happening on thesoutheast side in Queen Creek andother former rural agricultural areas.
Further out its Casa Grande andFlorence which are experiencing a lotof population growth due toaffordable housing.
Q: Increasing energy prices arehaving a direct and oftentimesnegative effect on many marketsegments today. How is itaffecting the commercialconstruction industry?A: Commercial construction is takingboth direct and indirect hits andthere are no signs of it letting up.Over the last couple years productscosts have risen dramatically andtransportation surcharges have beenadded to the price of steel andconcrete. The cost of operating on-site equipment is also affectedespecially when you consider that amedium-sized front-end loaderconsumes eight to 10 gallons of dieselfuel an hour. Increasing energy priceseven impact contractors and employeesbecause many of them they have todrive long distances to work.
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Q: How much have commodityprices increased over the last fewyears?A: We have seen huge run-ups ofmaterial prices in the last 10 years. Inthe late 1990’s and early part of thiscentury commodity prices were verystable. We did not see price increasesfor steel, glass, drywall, asphalt andconcrete – basically all the productswe use. But in 2005 prices started totake off. According to the ProducerPrice Index (the official measure ofproducer prices in the United States)cement climbed 32 percent between1998 and 2007. The cost of copper andcopper alloys doubled and steel wentfrom $100 to $300 a ton. At the timeit was being blamed on China becausethey were buying up all the scrap steelavailable. But now India is taking upthe pace. A lot of commodity pricing isbased on international demand.
Q: For many years laborshortages have been a hugeproblem for this industry. Is thisstill the case? A: Labor shortages are not as bad asthey were a couple years ago due tothe slowdown in the constructionindustry. Companies are still hiringskilled workers even though theymight not need them because they doknow they will need them down theroad. Overall the entire industry has ahard time attracting skilled peoplethat want a career in this field. At thetrade level it’s hard to find peoplewith journeyman-level skills. The state’s demographics are anotherreason for construction laborshortages. Arizona’s existing laborforce is aging and starting to retireand 27 percent of the currentpopulation is under the age of 18 andnot yet in the workforce.
Q: Has the new labor law had anyeffect on commercialconstruction?A: Not so far. Contractors havebecome more diligent in their effortsat screening people. All employers inArizona have to use the E-verifysystem, so it weeds people out.
Q: Will the commercial marketcontinue to grow?A: I think the market will continueslowing down this year and next year,but long-term I believe growth willcontinue in Arizona. The populationwill continue to grow and the housingmarket will return, which will createdemand for commercial facilities thatour members build. ●
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Company Profile
Sundt has built somemighty impressiveedifices. Take for instancethe Westin KierlandResort, ASU’s LattieCoor Hall, or its own67,400-square-foot,three-story corporateoffice building inTempe.
This is the company thatorganized, categorizedand reassembled the3,000 ton of stones so theLondon Bridge couldgrace Lake Havasu andhelped put a man on themoon with the buildingof Launch Pad 39-A atCape Canaveral, Fla.Sundt has offices in
Tucson, Dallas, Reno,Sacramento, San Diegoand Novato, Calif.
Perhaps the moststriking project,however, is the companyitself. It’s 118 years oldand has 1,600 employees,some who have workedat Sundt for more than 40years and others recentlyon board because it’s acompany that appeals tothe up-and-cominggeneration that seeks outcompanies that make adifference.
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This is a company where one exec-utive calls it a “privilege” to haveworked with the recently deceasedWilson Sundt, a third-general Sundt,and a CEO who makes sure there’ssomething called a Reflection Room inthe new corporate so religious employ-ees have a place to pray and others aquiet room to be with their thoughts.
Eric Hedland, senior vice president,puts it simply: “I like it a lot. I likethe culture here.”
Hedland has worked for the com-pany for 21 years, and brother Marty,a senior project director, is both
immediate and business family.“One of the key things that keeps
me here is the feeling of family,” EricHedlund says. “We’re generations deep.”
And talk about a family that takescare of each other.
Sundt started an employee stockownership plan in 1972 and has beenfully employee owned since 2000.That, Hedlund says, ups the ante onhow people interact with each other.
“You need to carry your weightwhen you’re all business partners,” hesays. “The quality of people who areyour business partners matters quite
a bit. Non performers won’t bearound long.”
Carol Peabody, vice president/treas-urer out of the Tucson office, hasbeen with the company for 36 yearsstarting off as a clerk in the account-ing department. She says now shecan’t imagine not working for anemployee-owned company, or what iscalled an ESOP (Employee StockOwnership Plan). “Here it’s morethan teamwork, we’re all accountable.The person next to me is an owner.”
“Everyone,” she says, “has sharesfrom the CEO to the craft people
Back Row from left - right: Eric Hedlund, senior vice president, J .Doug Pruitt, chairman & CEO, Raymond C. Bargull,executive vice president & CFO. Front Row from left - right: Randy Nye, senior vice president & general counsel, David S. Crawford, president & COO, Mike Hoover, senior vice president.
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pouring concrete.”And that CEO, Doug Pruitt, who
also is chairman, said the largestshareholder has 2 percent of thestock, and it’s not him.
“We do employee certificates andI’m always signing a ton for employ-ees of 10, 20, 35 years,” Pruitt says.Peabody points out that one employ-ee has been with Sundt for 44 years,two for 40 years and some 25employees have been with the com-pany 30 to 40 years.
Pruitt said Sundt’s reputation forintegrity lured him in 1966 to the
family-owned company when hejoined the Tucson office. He wastransferred to Phoenix in 1968.(Pruitt was named president andCOO in 1992, becoming chairmanand CEO in 1998).
That integrity holds true today, hesays.
“People migrate to where they’recomfortable,” Pruitt notes. “So peoplewho want to live by these values wantto work here. Those in the mid-20sgroup want to work and be part of acompany that makes a difference.”
Hedlund says studies done internal-ly and externally show that Sundt isperceived as a company of highintegrity.
That means, he says, that the com-pany keeps its promises, is steadfast
and treats people well. A cover storyseveral years ago in an industry mag-azine, Engineering News-Recordlauded Sundt as a company that doesjust those things as viewed by con-tractors, competitors and otherindustry observers.
“Integrity means playing fair withemployees, subcontractors and con-tractors,” Hedlund says. “Our visionis to go beyond what people expect.”
As Peabody says, “I am proud towork for this company. Everyone’sinput is welcome, Everyone’s opinionis valued.”
She points out that when WilsonSundt died in May of this year,numerous newspaper articles werewritten about the family’s contribu-tion to the industry and an editorialcartoon in Tucson’s Arizona DailyStar depicted construction activity inheavenly clouds with the caption:“Mister Sundt always loved taking onthe big construction projects.”
“The family laid such a foundationof integrity and making everyemployee feel valued,” Peabody says.“I worked with Wilson for 25 plusyears and it was a privilege to havethat experience.”
To be a Sundt employee not only
Integrity meansplaying fair withemployees,subcontractorsand contractors.
Our vision is togo beyond whatpeople expect.
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Sundt Corporate Headquarters
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Apollo launch pad
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means owningthe company,it means hav-ing flexibletime and man-aging one’sown time off,
it means having a country clubatmosphere with pool table in themen’s’ lounge, a ladies’ exerciseroom, an atrium in the Tucson officeand a 24/7 fitness center in theTempe headquarters. A legacy roomoffers up a history of the company.
The company owns its own barbe-cue wagon, rolling it out toconstruction sites for topping off cel-ebrations to company picnics and tothe many open houses given forindustry associates. There are groupfishing tournaments and golf andbowling leagues.
Then there’s the Reflection Roomin the new headquarters. It’s Pruitt’sbrainchild and he says when he takespeople on tours of the building hehas learned to open the door gingerlyand not barge in because it’s so oftenin use.
Hedlund says he strolled in thereonce. “I needed to sit and relax. I sat10 or 15 minutes and thought a prob-lem through.”
Also important andwhat makes Sundt thecompany it is, Hedlundsaid, is its dedication tobeing cutting edge.
“In the last five to seven years weasked ourselves how we can stay sep-arate from others and how do westay best in class nationally,” he says,pointing out that Sundt uses 3-D mod-eling and lean construction practices,which brings all subcontractors tothe table with the contractor to worktogether on scheduling decisions andsuch.
“The group tracks weekly the per-centage of promises kept,” Hedlundsays. “It’s about making collaborationroutine. We pressure each other todo well.”
“We have a history of nearly 120years, but I think one of the thingsadding to our longevity is we’re con-tinually trying to reinvent ourselvesby bringing the values of ourfounders and driving forward withinnovation,” he says.
Hedlund and Pruitt both point tothe Sundt Foundation as a pinnacleof employee caring.
While the company has always hada corporate culture of giving, thefoundation was established in 1998and began operations in 1999, withthe company paying all administra-tive costs so that the $2.7 million thefoundation has raised so far goesdirectly to charity.
The company matches employeecontributions dollar to dollar.
“It’s important that a companyand the people in the company giveback to the community where theywork,” Hedlund says. Each office hasits own employee committee decidingwhere the money goes. Hedlund says75 percent of his group gives to thefoundation and he figures the percent-age is likely the same companywide.
Pruitt explains that 65 percent ofthe money goes toward children’s’issues and when grants are handedout, “they can’t be less than $1,000,less than that can’t do that much good.”
“As a CEO, I’m extremely pleasedseeing people volunteer and writechecks,” he says, adding, “I like work-ing with these people every day.”●
www.sundt.com
© 2008 by MP Magazines LLC
Westin-Kierland Resort
ASU-Lattie Coor Hall
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Making Headlines
the development of apartment prop-erties. This historic area is develop-ing an energy level and charactersimilar to Old Town Scottsdale.”
Ackerman and Karsten Peterson ofCushman & Wakefield of Arizona,Inc. served as exclusive sales agentsfor the Chandler property, represent-ing the seller in the negotiations.Steve Julius, Eric Wolfe and JesseGoldsmith of Marcus & Millichap inPhoenix represented the buyer.
For information, visit www.cushmanwakefield.com
New York Investment Group Inks Deal toBuy Iconic Hayden Ferry Lakeside OfficeTower. SunCor Development Company SellsRecently Constructed 12-Story CommercialOffice Tower to HF Lakeside II, LLC, aSubsidiary of Sumitomo Corporation ofAmerica
SunCor Development Company charts another majormilestone at Hayden Ferry Lakeside, the company’saward-winning mixed-used development, with the sale of a12-story commercial office tower to HF Lakeside II, LLC.
A subsidiary of Sumitomo Corporation of America , HFLakeside II took ownership of the recently constructed,class “A” office tower on June 26, 2008. The building fea-tures 299,540 square feet of space, underground parkingand a prime waterfront location on Tempe Town Lake.
The commercial office tower, already 83 percent leasedby companies, including KPMG, MetLife and Fidelity
National Title Insurance, is the sec-ond commercial office tower to bedeveloped and sold by SunCor atHayden Ferry Lakeside. The buildingwill be purchased by HF Lakeside IIfor $92.5 million.
“Hayden Ferry Lakeside is well onits way to achieving the ultimatevision created by SunCor,” saidRandy Levin, vice president of com-mercial/urban development & designfor SunCor. “Vibrant commercial andresidential aspects of the develop-ment are flourishing. Clearly, thecentral live-work-play theme ofHayden Ferry Lakeside is striking achord in this market.”
Hayden Ferry Lakeside is a 43-acre, five million square-foot devel-opment of office, commercial, retailand residential space along one mileof the south shore of Tempe TownLake in Tempe, Ariz.
The sale transaction was negotiat-ed by Executive Director Chris Toci and Director TedHarrison of Cushman & Wakefield of Arizona, Inc., in
cooperation with R.Craig Coppola, Mark Seale, ChrisKrewson and Andrew Cheney of Lee & Associates,Arizona, Inc.
For information about Hayden Ferry Lakeside, call 480.966.LAKE (5253) or visit www.HaydenFerryLakeside.com.
For more information about Cushman & Wakefield, visitwww.cushmanwakefield.com
Grubb & Ellis|BRE Commercial, LLCCompletes Sale of Nearly 17 Acres in Mesa
Grubb & Ellis|BRE Commercial, LLC announced it hascompleted the sale of nearly 17 acres on the northeast cor-
ner of Ellsworth and Elliot Roads. ElCoyote LLC, a retailer/developerfrom Seattle purchased the propertyfor approximately $6.3 million fromFR/CAL Ellsworth, LLC a subsidiaryof First Industrial Realty Trust.
The buyer intends to start con-struction late in 2010 on a boutiqueretail center. The project will com-plement the 3,300-acre masterplanned community DMB &Associates is planning across the
street from the site. DMB plans to break ground in thesecond quarter of 2009.
Brent R. Moser III, Mike Sutton, Mike Haenel and AndyMarkham with Grubb & Ellis|BRE Commercial, LLC rep-resented both the buyer and seller during the transaction.
For more information, visit www.brephoenix.com
Marcus & Millichap Negotiates $10.3Million Sale of Brookside Apartments
Marcus & Millichap has negotiated the sale of a 203 unitapartment complex located at 6131 W. Thomas Road inPhoenix, AZ. Brookside Apartments were built in 1984.Alon Shnitzer with Marcus & Millichap in Phoenix repre-sented the seller, Brookside Premier, LLC of Logan, UT.Richard Butler, also with Marcus Millichap in Phoenix,represented the buyer Brookside Properties LLC ofScottsdale, AZ.
For more information, visit www.marcusmillichap.com
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Karsten Peterson
Chris Toci
Ted Harrison
Brent Moser Mike Sutton Mike Haenel
Andrew Markham
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Show Me The
Money!Commercial real estatebuyers these days haveevery reason to feel likeCuba Gooding Jr.’scharacter in the hitmovie Jerry McGuire.Evaporating debt capitalsources and tighterlending regulations areenough to make eventhe most level-headedexecutive want to shout,“Show me the money!”
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But, don’t despair.While today’s availability of debt
capital definitely relies on muchmore conservative underwritingstandards than a year ago, fundingis still obtainable for select projects.In fact, many people might be sur-prised to learn that the so-calledcredit crunch has less to do withthe amount of money that exists inthe lending machine than the factthat lenders have become moreconservative in the way theyunderwrite and estimate projectincome. Additionally, overbuildingand previously inflated values haveleft lenders scratching their headsas they struggle to reconcile projectvalues with the amount of moneythey feel comfortable lending.
The loss of commercial mort-gage-backed securities also contin-ues to have an enormous impacton commercial real estate lending.CMBS financing for CBRE|Melodyaccounted for 62 percent of thefunding for commercial real estatepurchases in the first quarter of2007. Just one year later, only 5percent of deals requiring financ-ing were covered by CMBS loans.
Concurrently, financing volumefor CBRE|Melody dropped to $2.5billion in the first quarter of thisyear, down from $6.2 billion theprevious year. This volume down-turn witnessed by CBRE|Melody isindicative of the pain being feltthroughout the industry.
The good news is that financingcan still be found in many casesfrom traditional sources, includingportfolio lenders such as banks,life insurance companies and pen-sion funds, as well as from FreddieMac and Fannie Mae for multi-family and senior housing, and to alesser extent, private equity funds.
Here are a few tips to helpyou secure debt capital foryour next project:
● Start by working with a professionalwho understands the complexities oftoday’s ever-changing financial marketinstead of trying to do the legworkyourself. Even someone who has beenin the commercial real estate debt andequity business for 20 years will findthat the old ways of doing business –as well as the standard go-to financingvehicles – often times no longerapply to current market conditions.
● Do whatever is necessary to achievecertainty of execution. In other words,start the process early as you attemptto assess the market. Try to securefinancing right away so that you willbe aware of the amount and type offinancing that is available for yourproject.
● Be realistic in your expectations ofthe type of financing you will be ableto secure.
● Be willing to put more equitytoward the project. Traditionalunderwriters tend to have stricterlending standards than the aggressiveCMBS loans. In addition, commercialreal estate interest rates are highernow than they were a year ago – 6.5-6.75 percent currently compared to5.75-6.25 percent last summer for a10-year loan term. Evaluate financingbased on 1.25 debt service coverageand 30-year amortization on in-placenet operating income, which likelywill result in an additional equitycontribution.
● Be willing to provide personalrecourse in order to secure projectfinancing. Volunteering to put per-sonal assets on the line will open upadditional sources of financing offer-ing more aggressive loan amounts.
How long the current creditpause will linger is anybody’sguess. The market’s ability to stabi-lize, as well as the Valley’s job andpopulation growth, all play impor-tant roles as we head into the nextseveral years. But, one thing is forsure. If you utilize these tips, youlikely will have better-than-averageodds the next time you ask alender to “Show me the money!”
Rocco Mandala is an executive vice president in the Phoenix office of CBRE|Melody Debt & Equity Financing. He can be reached at 602-735-1775 or [email protected].
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With economic uncertainty comesthe question as to what currentmarket values should be. Sellers clingto the hope that the market hasreached its bottom, while buyers waitit out hoping that prices are stillmoving downward. Eric Anderes, acommercial loan officer with SilverState Bank says that as long asmarket values remain a “movingtarget” you will continue to seeproblems. “Since no one knowswhere the bottom of the market is,no one feels they are getting a deal.As a result, buyers do not want tooffer market numbers. Add to thatmotivated sellers and banks withdistressed properties, whosewillingness to drop prices acts like aweight pulling values down more.”
So who has a better pulse on whatland values should be? In today’smarket, the answer seems to be both.The key is leverage. For sellers thekey is how long they have owned
their land. If the land is the familyfarm or the owner purchased the dirtbefore the last market upswing, theyare in the best position to wait outthe current downturn in values.However, owners who have debt, or
financial institutions that have booksfilled with property they have takenback will jump at the chance to sellproperty fast, even if it means sellingfor less than they paid or are owed.These short sales or foreclosures arebringing market values down.Industry experts caution this rush tosell, and point out that if sellerswould be more patient and findbuyers with more knowledge of theproperty they would not have tosettle for “fire sale” prices. Anderessuggests sellers get updatedappraisals, talk to commercial realestate brokers who are involved incurrent transactions, and then be “aspatient as your balance sheet willallow.” A local bank was faced withthis challenge when forced to takeback an unentitled residential parcelin the West Valley. Instead of settlingfor a low value offer, we were able towork with the bank to evaluate theparcel’s value by looking at
Formulating Land ValuesChallenges in the current housing market have filtered downfrom the rooftops to the dirt. Over the past 18 to 24 months,the value of land in Metro Phoenix has declined, as much as 75percent for speculative unimproved residential land and 50 to60 percent for improved residential parcels. Hardest hit have been the
peripheral markets. In Pinal County that includes Florence, Eloy, Coolidge, Casa Grande and
Maricopa, and in the West Valley that includes the town of Buckeye and parts of northwest
Surprise. On the other hand, infill land has faired better, with values holding fairly steady.
Landowners who have the financial stability to weather this downturn have elected to hold-on
to current properties in hopes of seeing their values rise in the not too distant future.
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7,000
6,000
5,000
4,000
3,000
2,000
1,000
0Jan06
Feb06
Mar06
Apr06
May06
Jun06
Jul06
Aug06
Sep06
Oct06
Nov06
Source: The Information Market
Dec06
Jan07
Feb07
Mar07
Apr07
May07
Jun07
Jul07
Aug07
Sep07
Oct07
Nov07
Dec07
Jan08
Feb08
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May08
Notice of trustee sale, precursor to foreclosure
Metro Phoenix Monthly Foreclosures
Trust Deed Sales
competing parcels and recent landsales. We assisted them in obtainingestimates for costs to complete theimprovements the parcel needed andare now better equipped to formulatean actual market value and workwith potential buyers.
On the other end of the spectrum,the buyer’s ability to set pricesdepends primarily on one thing --cash. In today’s market “cash is king”since banks and other lendingsources have put very stringentrequirements for lending money. Theupside of the current market is thatthere are more buyers in today’smarket with money, which was notthe case during the market’s previousdownswing in the late 80’s and early90’s. Arizona continues to attractinterest from buyers looking atWestern US markets, includinginternational, private andinstitutional buyers. Where we havelost buyers is with residentialbuilders. Current market conditionshave forced this group, along with
supporting residential real estateindustries, to drop out of the buyingpool. We expect that to changetowards the end of the year amongmost pubic builders who will neednew inventory as we move into 2009.
The question of when current landvalues will start to move upwardagain depends primarily on onething, a drop in the number ofresidential foreclosures. Until we seeat least one full quarter of declininghome foreclosures prices will notstart to rise. Sellers can’t completeagainst the “fire sale” prices and mostdo not want to. We are optimisticthat we will see the bottom of themarket by year-end or the firstquarter of 2009, and hopeful thatthere will be some upward movementin values during the second quarter2009. In order for this to happen webelieve that the public needs to hearsome encouraging news, so themedia will be a primary catalyst forany positive change.
Industry News
Grubb & Ellis | BRE Commercial, LLC Land Groupwww.ge-breland.com
602.954.9000
William FrenchSenior Associate
Brian RosellaVice President
OnThe Market
OnThe Market
Available for Sale or Lease■ Eight Buildings totaling +/-
45,584 sf currently underconstruction
■ Near numerous amentiesincluding Banner EstrellaHospital, Garden LakesCenter, Estrella MountainCommunity College andPalm Valley
■ Suite sizes from +/- 1,200 to+/- 5,771 sf
■ Parking Ratio: 5:1000■ Close proximity to I-10 and
Loop 101
Contacts:Tyler Smith 480-776-0605Drew Price 480-776-0636Eric Butler 480-776-0603Bret Isbell 480-776-0604
CORONADO PROFESSIONAL PLAZASWC Dysart and Osborn Road, Avondale, AZ
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Available Size: Buildings 1 and 2(±1,120 SF to ±4,588 SF)Lease Rate: Sale - $249/SF or Lease - $23.00 NNNParking Ratio: 5:1,000 SFConstruction Status: Ready July 1, 2007
• READY NOW - Purchase or Lease• Building and monument signage• Covered reserved parking available• Prime frontage on Union Hills
UNION HILLS OFFICE CENTER91st Avenue & Union Hills Drive Peoria, Arizona
Bret Isbell-Vice [email protected] Butler-Vice [email protected]
Available for Lease or SalePhase I Completion in the 4th Quarter 2008 providing +/-258,000 SF of Class AOffice SpaceAdditional Land Available forBuild-to-Suit5/1,000 Parking;Covered Parking Available
R-30 Roof InsulationUpscale Lobby withRestroom Core IncludedExcellent Visibility from Loop202 and Price RoadLocated at a Major Two-Freeway InterchangeWithin One Mile fromChandler Fashion Center Mall
ALLRED PARK PLACESECof Loop 202 & Price Road, Chandler AZ
Mark Krison(602) 735-5670
Scott German(602) 735-5538
© 2008 CB Richard Ellis, Inc. The information herein has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or rep-resentation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not representthe current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and youradvisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.
Carole Uhrig(602) 735-5260
Available for Lease
■ Savers Anchored
■ 1 block west of hwy 51
■ Free standing building available
■ Co-tenancy include: Savers, Chase Bank, What-A-Burger,Aqua Touch, Curves forWomen, DiamondbackLaundry
■ Good parking■ Space sizes range from
2,544 to 20,000 sq.ft.■ Rates start at $7.20 + nnn
Contacts:Patrick CassidyDaniel Pollack Michael Pollack 480-888-0888
CACTUS VILLAGESWC Cactus & 32nd St., Phoenix AZ
Available for Lease■ Fry’s anchored center■ Beautifully maintained center■ Co-tenancy include: What-A-
Burger, Taco Bell, Shepler’sWestern Wear, WashingtonMutual Bank, Ashlee’s, PizzaHut, UPS Store,
■ Plenty of parking■ One mile north of hwy 60
■ High density area■ Space sizes range from
5,100 to 25,000 sq.ft.■ Rates start at $9.00 psf + nnn
Contacts:Patrick CassidyDaniel Pollack Michael Pollack 480-888-0888
LINDSAY MARKETPLACESWC of Lindsay & Broadway, Mesa AZ
Available for Lease
■ Free Standing BuildingAvailable
■ Good Parking■ Circle K on pad site■ Health Club■ Woodcraft■ 4 Star Asian Restaurant■ Office Buildout Space
■ Space sizes range from2,880 to 7,200 sq.ft.
■ Rents starting at $7.80 psf + nnn
Contacts:Patrick CassidyDaniel Pollack Michael Pollack 480-888-0888
POLLACK PLAZANWC of Elliot Rd. and Arizona Ave
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On The MarketFor Sale • For Lease • Wanted
To place an ad, please contact: Mandy Purcell, Publisher
Commercial Executive magazine. Direct: 480-946-0398 • Email: [email protected]
Advertise In
Call us for more information:(480) 946-0398 • Email: [email protected]
Arizona’s Publication for the Commercial Real Estate IndustryArizona’s Publication for the Commercial Real Estate Industry
• Great Audience
• Great Editorial Coverage
• Great Advertising Value
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Why risk navigating today’s troubled real estate market without expert guidance?
Let Summit Asset Resolution Services keep you safely on course and out of harm’s way.
Summit is a masterful collaboration of three highly respected and experienced organizations that have joined together into one synergistic, new company. Summit is focused on helping investors, lenders and borrowers in the residential, resort and hospitality business. The Summit Team has an enviable track record working on numerous properties, both successful and distressed, throughout the continental United States and the Caribbean. Summit’s cross-disciplinary approach delivers consistent cost effective and strategic advice and services to help achieve success for their clients. To learn more about how Summit can guide you to success, call Robert Shiels at (602) 478-1372, email [email protected], or online at SARSLLC.com
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ChandlerAlma/Ray Central Ctr.Alma School Village IAlma School Village II
Chandler Business PlazaChandler Crossing
Dobson PlazaGoodyear PlazaMervyns Plaza
North Park PlazaPaseo Del OroPecos VillagePecos Square
Pollack Business ParkPollack Business
Park NorthPollack Business
Park SouthPollack Chandler Mer-
cadoPollack Professional Plaza
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Main Street PlazaSafeway Marketplace
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Trailside CenterVillage Grove Plaza
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Grocery Anchored Spaces • Free Standing Buildings Pad Sites • Restaurant Spaces • Office Spaces
Furnished Hair/Nail Salons • Large Boxes • End Caps
Excellent Rates and Locations!
Whether you are Leasing, Buying orSelling, we are Ready to Deal!
Brokers Always Welcome.For Leasing Information:
(480) 888-0888Corporate Office: 1136 W. Baseline Road • Mesa, Arizona 85210 • www.pollackinvestments.com
Lindsay Marketplace • SWC Broadway & Lindsay Rds. • Mesa
From 5,000 to 25,000 SF Available
Cactus Village • SWC 32nd St. & Cactus Rd. • Phoenix
20,000 SF Available
