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Mortgages Ltd. Securities, LLC is a Licensed Broker Dealer and member of FINRA. Contents Issue 3 2008

6 13 21 29 Pete Bolton Tyler Anderson & Sean Cunningham Young Leaders Red Rock Business Plaza

6 Cover Story Executive Publisher Mandy McCullough Purcell Pete Bolton Publisher/Editor 10 People & Properties Christina O’Callaghan

Creative Director 13 Featured Brokers Samantha Ponce Tyler Anderson & Writers Sean Cunningham Dana Bos Christia Gibbons 18 Executive Q&A Photography with John Kross Kay & Co.

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© 2008 by MP Magazines LLC 26 Making Headlines All rights reserved. No part of this publication can be reprinted or reproduced without publishers permission. 29 Property Profile Opinions expressed are those of the authors or persons quoted and not necessarily those of CEM. Red Rock Business Plaza CEM is a monthly publication.

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Commercial 4 Commercial Executive magazine Publisher Subscribe at www.cem-az.com Letter from the the from Letter ave you ever noticed those people who are able to “do it all?” They able to “do people who are noticed those ave you ever make to run a successful business, stay healthy, somehow manage friends and give back to the community. time for family and Christina O’Callaghan H A Balanced Life A Balanced Maintaining the appropriate balance requires staying committed to the things balance requires Maintaining the appropriate Managing you. For Pete Bolton, former Senior most important to that are but it became always been the top priority, of CBRE, family has Director As impossible to maintain that balance. and sometimes difficult increasingly my job to fix it,” Pete Bolton “…when I’m not happy it’s a man who says, changes. decided to make some to Commercial home (and new office) Pete opens his For the first time ever, to page 6 to into his new life. Turn Executive magazine for a unique glimpse balance. life’s about this fascinating man and his quest for more read Anderson and Sean Cunningham this month, Tyler Brokers Our Featured beau- balance as well; both have success, to life’s obviously know the secret about an uplifting and story is more tiful families and good health, but their and Sean take us on a nostalgic Tyler look back on their careers. humorous that existed journey and the “runnership” program back to their beginnings men- gratitude for the people who sincere They express in the early 80’s. This will be a fun some of their fondest memories. them as they share tored real commercial has been in Arizona’s trip down memory lane for anyone who estate business for 20 years or more. story includes an element of cre- In this issue, you’ll find that each success With that in mind, I would community. ating balance in your life and in your developers of Red Rock if I did not mention Mark IV Capital, be remiss based in California, they Even though they are Business Plaza in Chandler. “building beyond standards.” for have a vision for Chandler and a reputation I’m told they have also been gener- not mentioned in the story, Although it’s Community as well. ous with their contributions to the Chandler than being So, you’ll see in this issue that a life in balance is about more and successful, it is also about giving back and finding time for the things in this issue important to you. I hope you’ll enjoy the features people who are balance in your own lives. more and find some ways to create If you have any questions about Commercial to give me Executive magazine, please feel free to a call or send me an email. I look forward hearing your feedback! Sincerely, Christina O’Callaghan Publisher / Editor [email protected] Publisher/Editor Executive Publisher Christina O’Callaghan Mandy McCullough Purcell Cover Story Pete Bolton Better Business through Better Listening

The New Pete Bolton wears jeans and boots in favor of tailored suits. The new Pete Bolton prefers to grab a bite to eat at Safeway with his wife over lunching with clients at The Ritz Carlton.

The new Pete Bolton is a culmination of all the former Pete Boltons -- a senior managing director of CB Richard Ellis Inc., a senior vice president at Grubb and Ellis Co. (two stints), president and CEO of Sun Orchard Inc., president of Landiscor Aerial Photography, president and owner of his own aerial photography business (he was the one leaning out the hatch taking the photos), fast-tracker at Xerox Corp., and Arizona State University graduate.

And for today’s Pete Bolton, it all comes down to his thirst for time with his kids and his passion “to teach the world to listen.”

Much of last year was spent traveling as he taught leadership classes at the CBRE Leadership Center in Chicago while keeping tabs on the business of commercial real estate in the Valley. He missed half of his 14-year-old-son Alex’s football season. Unacceptable.

L to R: Pete with his wife Shellye, Son Alex and daughter Shay

6 Commercial Executive magazine by Christia Gibbons • Images by Amy Pileggi with Images by Kay

“I’ve always promised myself that when I’m not happy it’s my job to “I didn’t have an answer yet,” Bolton says. “It took years to figure fix it,” Bolton says. At age 59, happiness ended up being leaving the out there was a better system.” corporate world at the end of the year and starting his own consult- ing firm The Pete Bolton Company in the New Year. So taking the best off all systems and mixing in his own experience, observation and smarts, Bolton arrived at QLE. While informally Now Bolton is taking his years of experience in sales and running practicing it everywhere he went, it became a curriculum with a syl- his own successful companies and offering professional life coach- labus at CBRE. ing, culture creation, business planning and strategy and above all, QLE to such corporations as CBRE and private individuals. “I like being extremely That’s Question/Listen/Expand, Bolton’s own diagnostic method for identifying and solving problems. uncomfortable. I just know I get more done” As John Ollen, senior director of the CBRE Leadership Center in Chicago, says, “QLE is a clear path to questioning. It’s not about hammering a client with information. You have to engage the client more actively.” “The problem,” Bolton puts it, “is we don’t ask enough questions and we don’t listen. We miss key words that are clues.” For those Simply put, Ollen says, “Pete’s the best.” who know Bolton think about this a moment. What do you really know about him? Probably not as much as you think because he’s Bolton explains: “QLE is a definitive way to communicate with your busy listening to you. fellow human beings, not just a sales technique. It’s a way for the world to listen to each other.” “Most people don’t realize what a private person I am,” Bolton says. His is a world where books are read with pen in hand so he can More than 30 years ago when Bolton was a young pup at Xerox make notes, a world of dirt biking with his kids on weekends spent being fast-tracked from sales to management, he says he found in a motor home in Glamis, Calif., a world of coaching his son, lift- some supposedly tried and true methods for closing the deal ing weights and practicing bikram yoga, and now watching MXC, a “extremely offensive.” cult favorite Japanese game show with his 18-year-old daughter Shay when she comes home from Arcadia High School.” That, and witnessing a lack of effective communication at and between all levels in the workplace, sowed the seed that was to “Every book I read is a wealth of remembrance,” Bolton says. And, become QLE. As he became a trainer in Professional Selling Skills Bolton prefers things not come too easily to him. (Xerox was considered a leader in this field), Bolton said the 25 scripted closings just didn’t set right with him. It was all too “I like being extremely uncomfortable. I just know I get more done,” manipulative. he says.

“Today’s Pete Bolton has a thirst for Time with his Kids and his Passion to Teach the world to Listen”

Commercial Executive magazine 7 “The problem is we don’t ask enough questions and we don’t listen. We miss key words that are clues.

There are two speeds in which people function as Bolton sees it – zero and 100 percent. No surprise what end he comes out on. “Why not go through life at 100 percent?”

To Bolton it comes down to, “at the end of life if we can say we had a positive effect on one person, what a way to leave. But, I don’t want to have just one. … I feel responsible, I really do. More than anything I’m a culturist.”

He strives to create corporate cultures in which people enjoy coming to work. “I really want to have fun. I want to go to work and have fun and want every- one who works with me to have fun.”

“Listen,” he advises, and it will happen.

Bolton says the most exciting e-mail he ever received was several years ago from a CBRE broker in Houston who attended one of his QLE classes.

“She wrote me that since taking the class she has the best relationship ever with her 9-year-old son. You get stuff like that and it’s worth everything.”

Daughter Shay says she’s not at all surprised that dad has opened his own consulting business.

“I knew he would end up doing this,” she says. “He’s always given me the best life advice.”

Wife Shellye saw it from the very beginning, “He’s always when electricity, she says, actually sparked given me the between them on a water-skiing date 22 years ago. “I knew he would obtain any goal Best life advice.” he set, and I can tell you he has.” –Shay Bolton Today, Bolton might be puttering around in his garden while at the same time talking to clients via phone headset. Now he relishes the moments when Alex plops down on the comfy couch in his dad’s home office, nes- %GNG tles under the afghan, and just hangs out. [GC Now, he shoots the breeze with Shay, as FKUV fresh from a shower she moseys into his VKVNG office while combing out her wet hair. UGTX ENKG “Those two events are more significant than anything I’ve done since I quit,” Bolton says. ■

Contact Pete Bolton: %Q Pete with his kids, 480-219-9330 or $T Alex and Shay in email [email protected]  Glamis, California  5WKV 2JQ 8 © Copyright Commercial Executive magazine “Land Title... Distinctively %1//'4%+#.Commercial 5'48+%'5 Better Service” (CUV4GNKCDNG(NGZKDNG6KVNG%NQUKPI5GTXKEGU YYY.6##EQO

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LGE DESIGN BUILD COMPLETES RECORD YEAR FOR NEW PROJECTS WITH 33 DEALS WORTH $327.2 MILLION COVERING 3.3 MILLION SQUARE FEET

LGE Design Build completed a record year in 2007, signing a total of 33 new projects worth a combined total of $327.2 million and covering a total of 3,308,842 square feet. The totals eclipsed the firm’s previous best year, 2006, when it signed 50 projects cover- ing 2,768,237 square feet with a value of $288.9 million. It also marked the sixth consecutive record year for LGE in terms of both the value of the projects it signed and the total square footage.

According to David E Sellers, Jon Knudson, Vice President Mark Bauer, Senior VP president of LGE Design Build, 2007 was the year that a change With 20 years of commercial real estate experience, Bauer is a in focus at the company truly leader in CBRE’s Technology Practice Group, a specialty that began to pay dividends. The focuses exclusively on representing technology, financial and company began developing more insurance firms with real estate planning and the execution for of its own projects, and also has corporate data center and critical facilities relocations and expan- started to take on larger projects sions. His notable clients include Arizona State University, as well, as evidenced by three Washington Mutual, GoDaddy Group Inc., eBay, IndyMac Bank, 2007 projects in particular. Starwood Hotel and Resorts, American Express, Digital Realty Trust, Toyota Motors USA and Verizon Communications. The first is the Chandler/101 office project at Chandler Blvd. and the David E. Sellers, President A resident of Paradise Valley, Bauer has a bachelor’s degree in Loop 101, a 468,840 square foot, of LGE Design Build business and communications from the University of Minnesota. 5-story Class A office project scheduled for completion in December 2008 and valued at A CBRE employee since 1996, Knudson provides comprehensive $49,375,749. The second, the Price/Queen Creek office/ ware- transaction services to buyers, sellers and developers of golf house project, is valued at $38,443,287 and covers 374,000 courses, resorts and golf communities. His significant clients square feet at Price and Queen Creek Roads. It is slated for com- include Bank of America, Goldman Sachs, National Golf pletion in February 2009. Finally, the 231,000 square foot Park Properties and Westcor Properties. Place Offices complex at Price and Willis in Chandler is valued at $32.9 million. In all, LGE signed 10 projects in 2007 that were val- A resident of Scottsdale, Knudson has a bachelor’s degree from ued at more than $10 million. LGE Design Build is located at 740 the University of Wisconsin-Milwaukee. For more information, N. 52nd Street, Phoenix, AZ 85008. Contact the company by visit www. cbre.com. phone at (480) 966-4001, or by visiting its website at www.lgedesignbuild.com. DEVELOPER MAKES $25,000 DONATION TO BOYS & GIRLS CLUB OF THE EAST VALLEY DURING GROUND- CB RICHARD ELLIS PROMOTES MARK BAUER TO BREAKING CEREMONY FOR ALLRED PARK PLACE SENIOR VICE PRESIDENT AND JON KNUDSON TO VICE PRESIDENT To thank the community of Chandler for its warm welcome, the developers of Allred Park Place, Douglas and David Allred, of the The Phoenix office of CB Richard Ellis (CBRE) announced the pro- Douglas Allred Company, presented a $25,000 check to Dawn motion of Mark Bauer and Jon Knudson to the positions of sen- Jones, board president, of the Boys & Girls Club of the East Valley magazine ior vice president and vice president, respectively. – Chandler Compadre Branch.

Diana Michelle Donna Derek Executive Grant Lavikka Cathey Parker 480.560.6079 602.850.2126 602.850.2193 602.381.3600

Commercial 10 Presented by People & Properties

Allred Park Place is a new 516,000-square-foot, class A office Quintero stated, “Reclaimed materials and antiques are the ulti- development in Chandler, AZ. Allred Park Place is located east of mate green recycling opportunity because they bypass the need the northeast corner of Price and Willis roads in Chandler. For for manufacturing new materials.” Just inside the doors, visitors more information about Douglas Allred Company, visit www.dou- are greeted with a creative display of sophisticated “eco chic” glasallredco.com. For more information about Allred Park Place, products and materials, including wall and floor coverings, paint, contact Bob Crum at (602) 735-5522. surface materials and upholstery fabric.

ELEMENTS OF DESIGN LAUNCHES NATIONWIDE COM- For more information, visit www.eodinteriordesigners.com. MERCIAL INTERIOR DESIGN SERVICES AND EXPANDS SCOTTSDALE SHOWROOM BY 20% BLOOMINGDALE'S TO OPEN FIRST ARIZONA STORE AT HIGHLY ANTICIPATED CITYNORTH DEVELOPMENT Elements of Design, full-service interior design studio based in Scottsdale, AZ, announced the launch of nationwide commercial Related Companies and Thomas J. Klutznick Company recently interior design services, spearheaded by owner and lead design- announced that the first Bloomingdale's store in Arizona will open er Lina Quintero. The commercial services will target hotels, at CityNorth, the 144-acre mixed-use development in Phoenix's restaurants, private medical/dental offices, professional service Northeast Valley. Bloomingdale's will join Nordstrom as one of the offices and commercial businesses. To accommodate the growth, retail cornerstones of CityNorth's Phase Two, The Boulevard, Elements of Design has added almost 20 percent of additional opening in fall 2009. square footage to their showroom, which was already one of the largest product showrooms in Arizona.

“By expanding to almost 7,500 square feet, we have increased our inventory of furniture and décor items, and our warehouse space,” said Lina Quintero. “We offer a significant trade discount to interior designers, who love to shop here for truly unique items, and having such a large showroom simplifies and accelerates the design timeline because appropriate materials are immediately accessible to our in-house design staff.”

In support of their environmentally friendly practices, the entrance Bloomingdale's store rendering to the new space is a set of reclaimed European double-doors. Image courtesy of David Enders at Bloomingdale's The hand-painted minute details on the nine-foot-tall doors are extraordinary; lending a unique charm and beauty to the show- Phase One of CityNorth, High Street, is currently under construc- room. The doors were recently rescued from a 100-year-old tion and slated to open in October. High Street's retail space is apartment in Paris, France, and brought to the United States. currently 85 percent committed.

The Northeast Valley of Phoenix has experienced rapid growth in recent years because of new infrastructure and demographic changes. CityNorth, situated along the highly visible intersection of Loop 101 and 56th Street, is accessible to some one million metro area residents in 30 minutes or less, and will serve as the urban core for the Desert Ridge master-planned community, which has been a catalyst for attracting an increasingly affluent population to the Northeast Valley.

As the first Bloomingdale's in Arizona, the CityNorth store Commercial will encompass approximately 180,000 square feet on three lev- els and will feature distinctive, upscale apparel and home mer- Lina Quintero, Owner & Lead Elements of Design Showroom chandise with a focus on contemporary designer, bridge and Designer of Elements of Design luxury brands. continued on page 12 Executive Frank Rick Carol Ken Buvala Simpson Holman Perry 602.850.2194 602.850.2123 480.285.2228 602.621.3530 magazine

11 People & Properties

continued from page 11 “Our broad expertise across product types allows Opus to deliver custom "With the opening of the first Bloomingdale's in the state along combinations of retail, office, industri- with Nordstrom, CityNorth will become a true destination for liv- al and multifamily space according to ing, working and shopping," said Peggy Neely, Phoenix Vice the needs of individual communities,” Mayor. "This announcement is great news for CityNorth, my said Opus West President and CEO Council District, the City of Phoenix and our entire region." For Thomas W. Roberts. “By monitoring more information about CityNorth, visit www.CityNorthAZ.com. market demand and industry trends, Other related sites: www.related.com and www.tjkcompany.com. Greg will even further enhance our ability to deliver unique retail proper- OPUS WEST HIRES GREG WATTSON AS VICE PRESIDENT ties to the diverse markets that make OF RETAIL DEVELOPMENT up the Southwest and West Coast.” Greg Wattson, Vice President Opus West Corp has named Greg Wattson vice president of retail Opus West has developed 39 retail of Retail Development development for the firm’s six-state western region. In his new projects totaling more than role, Wattson will oversee all retail development opportunities in 6,687,939 square feet, and has 13 projects totaling 3,875,166 Arizona, California, Nevada, New Mexico, Texas and Utah, and square feet planned or under development. Opus West’s retail coordinate with Minnesota-based parent company Opus development projects encompass lifestyle/town centers, grocery- Corporation on national retail development strategy. anchored centers, power centers and mixed-use projects.

Wattson brings 20 years of experience in retail development to his In Arizona, Opus has delivered more than 2.3 million square feet of new position. Most recently, he was senior vice president of retail retail space and is underway on additional projects including the for Trammel Crow, where he was responsible for retail develop- 260,000-square-foot Tempe Gateway retail and office develop- ment activities in the western United States. His background also ment in downtown Tempe, AZ and the 170,000-square-foot Mill includes 18 years at Wattson Brevast, where he developed and Crossing retail project in Gilbert, AZ. For more information about re-positioned retail projects throughout the West Coast. Opus West Corporation, visit www.opuscorp.com. magazine Executive

Commercial 12 Featured Brokers

Sean Cunningham &Tyler Anderson Two Industry Veterans Look Back

by Dana Bos • Images by: Kay & Co.

Since the early 80s, Tyler Anderson and Sean Cunningham of CB Richard Ellis have been mem- bers of the Phoenix commercial real estate com- munity. With over 50 years of combined experience, the pair and their team specialize in the sale of multifamily properties.

Commercial Executive sat down with this duo to learn about their early days in the business and the evolution they’ve observed since then. One Big Family In 1980, when Cunningham had just graduated from Northern Arizona University, Coldwell Banker (which eventually became CB Richard Ellis) and Grubb & Ellis were the two established companies in town, he recalls. An attorney associate of Cunningham’s father, Mike Tiffany, represented L to R: Sean Cunningham Peter Pocklington who owned the Edmonton and Tyler Anderson Oilers hockey team at the time and was purchas- ing apartments through Hank Ragland at Coldwell

Commercial Executive magazine 13 L to R: Sean Cunningham and Tyler Anderson

Banker. Tiffany encouraged Cunningham to consider the opportunities in commercial real estate. “It was like one big Sean “After Hours” family in those days!” notes Cunningham. “I started as a • Married to Marla for 16 years runner for Bob Bruno, and Bruno started as a runner for Hank. There was definitely a hierarchy, and you had to • Three children, 12, 10, and 7 years prove yourself. No one wanted to fail.” old, all involved in sports - he Anderson joined Coldwell Banker in 1983 after a success- never misses a game ful career in professional sales. “Interestingly, Jerry Tenge, • Wakes at 5:00 am to work out the broker I first worked for, began as a runner for Bob Bruno also. I worked with Bruno as well and enjoyed it.” • For a getaway, the family loves San Diego, visiting their home in “We want to acknowledge these guys,” emphasizes Cunningham. “They went to bat for us. Bruno was a colorful Coronado often guy and very generous. He pointed us in the right direction.” You Went Where They Told You – Usually Tyler “After Hours” Since there were only two main companies in town, the competition to get hired was fairly intense. “I went through • Married to Nancy for 23 years many interviews and rounds of personality testing,” shares • Three children, 25, 21, and 16 years Anderson. “It took nine months before I got an offer.” He arrived on his first day in Coldwell Banker’s new Mesa office • For vacations, they visit their homes expecting to work in retail. “Instead, when I walked in, they in Rocky Point and Wisconsin told me that my tests indicated I’d be good for investment sales, and they introduced me to Jerry. It was quite the sur- • An exercise fan, he loves a good prise to me! A fortunate one.” game of golf Cunningham managed to avoid Coldwell Banker’s original

14 Commercial Executive magazine plans for him. “My first position was in research. At the time, the business, and foreclosures were common. Lots of people really company hired two researchers a year to keep track of the proper- got hurt.” ty database – this was pre-computers. Coldwell Banker had prima- rily a West Coast presence at that time, and the company had plans Anderson and Cunningham continued to work for Coldwell Banker to expand into the Midwest. Often, the researchers were tapped to through that time and would work together occasionally. They had go staff those new offices, but instead I became a runner for Bruno. yet to team up though – that would come as new dynamics and We’d gotten to know each other, and he requested me as his run- radical change reshaped the business. The roots of the teaming ner, which was great because it allowed me to stay in Phoenix.” concept however started during the S&L days. “When dealing with the RTC [the Resolution Trust Corporation, a governmental entity Life As a Runner created to resolve the S&L crisis], we realized it was better to pres- The runnership position no longer exists, but at the time it served as ent together rather than solo,” says Anderson. “Brokers would often the entry level sales job. For 12 months, the runner supported a attend RTC meetings together.” senior broker in all capacities. “It worked for both parties because the runner learned the business, and the broker got free labor,” says The Rise of Teaming Cunningham. “I learned everything through Bruno.” In the 90s, Mike Fitzgerald led the Coldwell Banker office. “In 1993, I was recruited into management and worked in that capacity A runner’s salary was menial, notes Cunningham, but it was just through 99,” says Cunningham. “I saw a lot changes during that enough to make the transition into the industry. “This isn’t a com- time. Mike focused on future trends and was one of the first to start plicated business, but it takes a while to build. Many would use up pushing technology and the team concept.” As is often the case their life savings trying to become a broker. The runner program with major change, some resisted these shifts, and Fitzgerald allowed people an easier switch.” and Cunningham often faced an uphill battle trying to implement new ideas. Runners did all kinds of things, says Anderson. “I remember once we realized the car was dirty and a client was due to arrive in town. So I rushed out of the office to get it cleaned. You did whatever “Teaming evolved out of was needed.” Runners often served as couriers, making deliveries the need to support brokers” far and wide. They were also responsible for assembling all meeting materials – comps, aerials, maps, and so on – and arrang- ing site photos. Cunningham recalls a time when he picked up Still, the team concept caught on and thrives today. “Teaming dry cleaning. evolved out of the need to support brokers,” recalls Cunningham. “Historically, companies would send a lot of individual brokers to the Anderson remembers how different the 80s office environment was market and let them all vie for business. That changed to focusing from today. “15 people opened up the Mesa office. Coldwell on the productive individuals and giving them better support, so Banker had the ability to attract high caliber people, and many of they could gain market share and provide greater client service. We those guys are still in the business as top brokers. All of us sat wanted to leverage people’s strengths. For example, we created together in a bullpen area. Some smoked cigars as they worked. Those days were a lot of fun.”

Then you were on your own. Teaming didn’t exist in those days, says Anderson. After 12 months as a runner, you became a solo broker, but with no clients and no deals. “You just made calls and started to build your own book of business bit by bit,” says Cunningham. Eventually, he and Anderson became senior mentors themselves. Grim Times Roll the clock forward to the Savings & Loan crisis of the late 80s/early 90s. Coldwell Banker had expanded to three offices in the Phoenix area by 1989 with 125 brokers. Then a significant decision was made which radically changed the company. The three offices were consolidated into one, and the number of brokers downsized to 80. Anderson recalls that era grimly. “Those L-R: John Gallegos, Sarah Tarlton, Tyler Anderson, Suzy Castleberg, were difficult times. Revenues declined for Brad Johnson, Sean Cunningham, Lisa Berry and Jack Hannum the whole industry. Many clients left the

Commercial Executive magazine 15 L-R(standing): Jack Hannum, Suzy Castleberg, Sarah Tarlton, John Gallegos, Sean Cunningham and Tyler Anderson. Seated: Brad Johnson

dedicated marketing coordinators by specialty. That person would Just days after giving his notice, Cunningham and Anderson joined support four to six brokers.” forces.

At first, some brokers felt like they were training their competitors, Their team grew over time. “Lisa Berry was part of the group in recalls Cunningham, though that wasn’t the intention. “The plan those days, and she’s still with us. Every year we’ve added some- was to provide assistance to a group. We initially focused on those one new,” says Cunningham. “As we saw ways to provide better who were open to the idea. With our consistent push, the move to service to the client, we’d add to the team. Then, we’d see our teaming became a gradual shift.” sales volume increase.” Now, the Anderson/Cunningham team consists of eight people: first vice president Jack Hannum, Suzy The team concept turned out to be the beginning of the end for the Castleberg as financial analyst, Brad Johnson and John Gallegos, runner. The position was no longer needed. “Teaming really caught research analysts, Sarah Tarlton as administrative assistant, and on because you could be more responsive to clients,” says Berry as senior marketing specialist. Cunningham. “The brokers could do more deals and earn more commissions. As people embraced the concept, they’d gain mar- “As we saw ways to provide ket share, and that got attention.” Eventually, Anderson notes, bro- kers started to enjoy creating their own business within a business. better service to the client, Two Industry Veterans Unite we’d add to the team” In 1999, Cunningham was ready to leave management for a new role, though he wasn’t sure what that might be. Still, he gave his “Those early days we recall with many fun memories,” says notice, confident a new opportunity would emerge. “I’m the only Cunningham. “All those guys were great to work with. Many of one who’s worked the whole time,” says Anderson, ribbing his part- them are still with the company. This has been a great industry to ner. “Sean even beat his dad into retirement!” For a week that is. be a part of.” ■

16 © Copyright Commercial Executive magazine

Executive Q & A

A Conversation with John Kross Queen Creek’s Town Manager

According to lore, the Town ed Town Council. I serve at their pleasure and have a 2-year of Queen Creek's name orig- contract. I am about at the mid-point of that contract. I real- inated more than 100 hun- ly enjoy Queen Creek and as you have noticed, I have been dred miles away. Up in the with the community for more than 12 years and would love eastern mountains surround- to continue serving as long as they will have me. ing the Town of Superior, the land is rich with supplies of How does your current position as Town Manager differ ore. One of the many mines Qfrom your other positions that you have had in the past that opened up in those in Queen Creek? mountains was the Silver Queen. At the base of the The primary difference in my role as Town Manager is that the Silver Queen mine there was Adegree and scope of responsibility is significantly greater. a creek called Picket Post Also, I have seven bosses rather than one when I was either Creek. It was named after the Community Development Director or Assistant Town oddly shaped mountain Manager. The Town Manager position is comparable to a above it (the one you can see CEO position in the private sector where the CEO reports to today above the State a board of directors, I report to an elected seven-member John Kross Arboretum). council. In this form of government, I am responsible for the implementation of all the council policies, ordinances, budg- When the Silver Queen Mine opened for production, the et authority and the hiring and firing of staff. I have 10 depart- Picket Post Creek was changed to Queen Creek. That creek ment heads that help me implement the council’s vision for runs down from the mountains, past the mine, through the the community and that group constitutes my executive Queen Creek Canyon, into the area surrounding the present management team. Queen Creek now has more than 200 day Town of Queen Creek. employees and in about a month, we will be purchasing the Queen Creek Water Co. and bringing on an additional 30 And it is a community that is changing for the good employees. thanks to its residents, council members and Town Manager John Kross. QWhat is a typical day like for you as Town Manager? Kross has been in planning and community development in It is quite varied and dynamic; no two days are the same. I Wisconsin and Arizona since 1989. In Wisconsin, he worked Ahave a lot of meetings, dealing with a variety of issues from for a private downtown redevelopment firm, and in Arizona regular communications with the Town Council on issues he has worked for the Town of Gilbert, the cities of Phoenix they may bring to my attention, our budget, personnel mat- and Wickenburg, and Queen Creek, where he has been ters to oversight and implementation of our new fire/EMS since 1996. department.

His first 8 years in Queen Creek were as the Community You've been serving Queen Creek since 1996, how has it Development Director, followed by 2 years as Assistant Town Qchanged? Manager and nine months as Interim Town Manager. On March 26, 2007, the Queen Creek Town Council voted unan- have been so fortunate to work for such a tremendous com- imously to appoint Kross to fill the position of Town Manager. Amunity and several mayors and councils that have always taken the long-view of what is in the best interest of the com- He has a Bachelor of Arts in Business Management and munity’s future. They have always asked the question: ‘Will Leadership Studies/Public Policy from Ripon College in this question or proposal we are presented with get us clos- magazine Wisconsin and a Master’s in Public Administration from er or farther away from our goal?’ When I first started in Arizona State University. He recently talked to Commercial Queen Creek, the community was a population of about Executive about the Town of Queen Creek, and what lies 3,200. We issued about six housing starts, all custom homes ahead for this quickly growing community. on septic ? Queen Creek installed its first sewer system in March 1998 and the following year, saw extraordinary Executive Are you an elected official? change in residential and non-residential permitting. Q Beginning in 1999, our annual growth rate was around 14 AI am not elected but appointed by the seven-member elect- percent and today we have a population of about 23,000.

Commercial 18 Executive Q & A

Fortunately, during the first couple of years after I came on board, Queen Creek’s demographic profile is relatively diverse the mayor and council supported very progressive growth man- Aand I do not think you can characterize the typical Queen agement policies by way of a new General Plan, Subdivision and Creek resident. One of our economic development mar- Zoning Ordinance. We were the first community in Arizona to keting slogans is ‘Cappuccino Cowboy’ with a picture of adopt an Adequate Public Facilities Ordinance that attempts to Council Member Jon Wootten in his cowboy hat, having time and sequence infrastructure concurrent with the develop- a latte at one of our coffee shops while working on his ment. The General Plan and its implementing ordinances estab- laptop. This image was coined years ago by a friend of lished the quality component and development style that has mine who was visiting and I was discussing this new made Queen Creek known for its uniqueness and progressive- development in the community called Will Rogers ness. In 1996, were considered not a full-service municipality, Equestrian Ranch where the lot sizes were of an urban meaning that we contracted out key services. Today, we are a full- nature, but the development allowed horses to be board- service municipality with the commencement of our first fire ed by its residents at a central location in the develop- department in January. ment off the Queen Creek Wash. Residents love their horses but did not want to live with them. Queen Creek Are these changes for the better? How so? still is the fifth wealthiest community in the valley in terms Q of annual household median income and about the fifth I believe these changes directly reflect the needs and desires of highest persons-per-household in the county as well. Our Aour residents. Queen Creek is building its parks, trails, library and educational attainment is comparable to other east valley investing in downtown with critical infrastructure allowing new and cities; we have a relatively high proportion number of high cutting-edge services to the community. Communities change, technology industry persons that reside in Queen Creek but it is how they change and how important their core values are but commute to Chandler to Intel or other high-tech to them that make change meaningful. I really think Queen Creek industries. Additionally, our ethnic diversity is higher than has stayed true to its General Plan, particularly in the area of other east valley communities. growth management. For example, Queen Creek is often criticized as turning into just another valley suburban community. However, “Queen Creek still is the fifth despite our growth rate, if you compare the last 12 years of growth to say Gilbert during the same time period, we grew at a substan- wealthiest community in the valley tially slower rate than our neighbor. The reason for this is our pro- in terms of annual household median gressive growth policies that attempt to preserve a balance of densities, create value and enhance opportunities for quality resi- income and about the fifth highest dential and non-residential investment in the community. Each persons-per-household in the county” community establishes its own growth philosophy, I am not cast- ing judgment on any other community, and it is just that Queen Creek elected to pursue a particular growth management philos- What major future projects are planned? ophy than that of other communities in the valley. Q Downtown is seeing a major transformation and we are Queen Creek is often said to be Arizona's best kept secret ... Avery excited about that. The council approved a poten- Qdo you still believe that? tially very creative project in the northern part of Town Center, tentatively named ‘Queen Creek Station’ this past I am not sure our economic development or marketing depart- year. This project is about 1,000 acres and encompass- Aments would agree with that statement, but the fact remains that es a mixed-use profile, with an entertainment, walkable Queen Creek is in a very competitive position, and challenging core that features ground floor retail with residential one, due to our proximity to the very large and well capitalized above (a neo-traditional anchor element). In the south- communities of Gilbert and Mesa (recent budget issues aside). We east quadrant of the community, there are plans for the are all competing for investment in our communities and in Queen next regional mall and full-service hospital by Catholic Creek; we believe our approach and emphasis on creating a fully Health Care West on approximately 500 acres of land. sustainable community, particularly with an emphasis on quality of life issues, will set us apart. Will Queen Creek ever become another Scottsdale? Commercial QChandler? Or is it the intent of the Town Manager and What makes Queen Creek such a great place to live in your the town, as well as the residents, to keep it status Qopinion? quo, with as few changes as possible?

I think there are many reasons, such as our very aggressive open Queen Creek residents really envision a community that Aspace and trails plan, the school system, our commitment to qual- Ais quite different from those communities you mention. Executive ity development, and the fact that it is still relatively small where While we will have many of the same services, including people feel like they can easily become involved with their commu- core elements that ensure the community is sustainable, nity and not get lost in the masses of burgeoning population. but the goal is to create a community that is economical- ly, socially and demographically diverse. The plan is not magazine Is it the type of place where anyone can feel comfortable or to become a bedroom community, particularly with our Qdo you have to be a certain type of person to live there? continued on page 20

19 Executive Q & A

continued from page 19 What lies ahead? proximity to Phoenix-Mesa Gateway Airport. Our northern tier Q of the community, which is our employment area, is where we As for what is left to accomplish, there is a lot. I am in the are striving for aerospace, high technology and other livable Aprocess of implementing with our management team, a per- wage employment opportunities for our existing and future formance based budget ? our first ever. I would like to see residents. At residential build-out, the population would be that through and work with refinements to that over the next about 85,000. year or so. We also have a lot to do on the public infrastruc- ture side of our budget, including building our first modern- In March, it will be 1 year since you took the position of ized fire station. QTown Manager, have you been successful so far in what you set out to do? How does living in Queen Creek compare to living back QEast for you? Success is often defined by others, but in this past year, I Abelieve extraordinary accomplishments have been made. In Totally different from many, many perspectives. The weather 12 short months, we will have started our own fire/EMS Ais the obvious difference, but the overall philosophy of local department and acquired and successfully transitioned water governance is very different out West than the Midwest and services into the organization. That alone involved transition- East. I was born in Ohio but went to college in Wisconsin and ing more than 60 new employees into the organization. We I can tell you that there is a very different expectation of gov- have maintained investment grade bond ratings from our rat- ernment from that region of the country to this one. Taxation ing agencies – a key barometer of sound financial manage- philosophy is fundamentally different in that in the Midwest ment. A significant milestone occurred last May with the voter they are heavily reliant on more stable sources of revenue approval of the community’s first-ever primary property tax to (i.e., property tax); in Arizona, we are much more reliant on fund public safety. This was absolutely critical for the long- consumption tax policy or sales tax ? a more volatile revenue term sustainability of this community. While I cannot take stream. Locally, however, Queen Creek has a lot of qualities credit for that specific accomplishment, I do take pride in the that you find in traditional small town environments that often fact that working with key staff, as a team, I believe we suc- are where a lot of us are from, many times in the Midwest; cessfully navigated that policy question over the last 2 years some of those values I see in our neighborhoods today and to the extent that I do believe our residents gave us the con- specifically, in the form of one of our development standards: fidence via this vote to implement the program successfully. tree-lined streets or our front porch standards. ■

20 Commercial Executive magazine Young Leaders Group

There is a global brotherhood of sorts that dates back to the Great Depression. Its worldwide membership is 40,000 strong and growing. Though it is an organization focused on land use and real estate development, its membership represents men and Young women, young and old from almost every sector imaginable. The organization is the Urban Land Institute (ULI) and today, the brother- and sisterhood is made up of developers, lenders and investors, advisors, architects, contractors, engineers, university professors and students, and the list goes on. Directly or indirect- Leaders ly, real estate plays a part in countless lines of work and ULI has Take the Land been the common denominator in a majority of them. Founded in 1936, ULI is a nonprofit research and education organization goaled at fostering leadership in responsible land by Storm use, and creating and sustaining thriving communities worldwide. Within the organization are local district councils. These councils by Beth Cochran champion community outreach programs, educational forums Images by Kay & Co. and trends conferences. They also spark important dialogues sur- rounding land use at the local and regional levels.

Commercial Executive magazine 21 Presently, there are more than 60 district councils internationally. The Arizona District Council is one of the most active and has been lauded as a leader in many respects. Last year alone, the council grew its membership by more than 300, and now has more than 1,500 members. “Some of the biggest successes “ULI is a preeminent organization, we don’t lobby and we are mis- sion driven,” said Michael Horst, ULI senior vice president, District we’ve seen have come from our Councils. “Membership in ULI is an opportunity for people to build themselves professionally through all of the organization’s activities. Partnership Forums, which pairs Also, we help build better communities by providing our members a more experienced member with the tools to make a difference in the communities in which they live and work. This is an important part of the value proposition. with a group of Young Leaders. Particularly for those who stay in the real estate industry. It’s an opportunity to be connected with the ULI culture, share best prac- It’s impactful for a Young Leader tices and lessons learned, and, perhaps most importantly, create to have a person who has been lifelong friendships.” around ULI to act as their advisor The Start of Something New and convene in small groups to In 2003, in an effort to urge more young people to join the organi- zation early in their careers, ULI created the Young Leaders Group share life stories and lessons (YLG) for those younger than 35. District Councils in Houston and learned.” Philadelphia were the first to form the YLG. The response was remarkable and soon more YLGs began to pop up across the –Michael Horst, nation. Membership rates among people younger than 35 have ULI Senior VP, steadily increased ever since.

District Councils “Membership for YLG represents 40 percent of the net new mem- ber growth for ULI,” Horst said. “In North America, we’ve gone from roughly 19,000 members in 2004 to more than 34,000 today. YLG has gone from 1,600 to 8,600. The shear number of people has increased, but more importantly the excitement and impact of ULI has been taken to new heights and that’s in large part because of the enthusiasm YLG brings to the district councils.”

Locally, the YLG has flourished. In January 2004, the Arizona Young Leaders Group formed and by June 2007 it was ranked as the “There are so many ways to second largest in the U.S. making it the fastest-growing ULI YLG in realize the value ULI has to the country. offer and YLG presents an Peter Spier, chair of YLG Arizona and vice president of development for The Plaza Companies, attributes the group’s success to its opportunity for young people strong history of programs and speakers, focus on educational to become involved...” content, and variety of events. “There are so many ways to realize the value ULI has to offer and –Peter Speir YLG presents an opportunity for young people to become involved in ULI for an incredibly reasonable price,” he said. The YLG mem- Chair of YLG Arizona & bership is $175, compared to the $375 for ULI membership. Vice President of Development for Spier joined the group four years ago and quickly realized he want- ed to deepen his involvement. He joined the mentoring committee The Plaza Companies and just last year was named chair.

“Initially, I joined because I wanted to expand my network within the real estate community, but I soon learned how much more ULI and YLG could offer,” he said. “Understanding the breadth and depth of the organization is what prompted me to get involved in more meaningful ways. I think the overall quality of the organization is incredibly compelling. Even now I consider myself to be a knowl-

22 Commercial Executive magazine edgeable member, but I am continually surprised about how much Arizona District Council) if I wasn’t a member. When you come from ULI offers.” another country, your access to education is limited. We don’t have organizations like ULI to get that key industry information and Spier also said his involvement with ULI has opened his eyes to education, so my family and I have kind of relied on the organiza- other sectors in real estate and has expanded his knowledge of tion for that.” the industry. Leaders of the Next Generation “In addition to expanding my professional and personal networks, Beyond the education and client-building benefits Dahdah has membership has increased my awareness of how an industry asso- experienced, he said he feels like he is a part of a group that repre- ciation interacts with the communities they serve,” he said. “In the sents Arizona’s next generation of leaders, and he has established case of ULI, this occurs on both the local, national and internation- a strong bond with his fellow members. al fronts. Working with such dedicated team members on the steer- ing committee has truly pushed me to become a better member and real estate developer. ULI provides an avenue for me to learn more about product types and issues that I do not work with in my specialized niche of real estate.” These are the people

Globalizing Relationships who are going to be For J.P. Dahdah, president of Entrust Arizona and treasurer of YLG Arizona, ULI’s global reach is what sparked his interest. Arizona’s future leaders

“I got involved because my family and I own a development com- pany in Guatemala and one of the first conferences we attended in “These are the people who are going to be Arizona’s future leaders,” Miami was about international development,” he said. “That’s one he said. “The biggest benefit I’ve gotten is the friendships. I think of the great things about ULI is that it’s global. So, if you’re looking that’s one of the main missions of YLG. You come in as a newbie to network and you’re building a golf course in Mexico, you can and you’re younger than everyone else, so it’s very hard to get into really leverage ULI’s membership and get to know those people. It’s some of those conversations. With YLG, we’re building those rela- the who’s who of real estate on a global basis. Those initial meet- tionships now. I have a lot more personal friends just by being a part ings spurred me to get more involved locally.” of it.”

Dahdah said though he is not directly involved in real estate, he is One educational and networking program YLG Arizona has imple- indirectly involved through his business, which provides services for mented is the Partnership Forum Program in which senior ULI mem- self-directed retirement plans. He not only meets clients through bers partner with a group of eight to twelve YLG members to help ULI, but has also aligned his current clients with potential real them gain industry insight. In addition to having been a ULI member estate-secured investments. for several years, the mentor also has to have deep industry experi- ence, which they then relay onto the group of Young Leaders. Aside from the global access ULI and YLG offer, Dahdah has also turned to the organization for its access to relationships “Some of the biggest successes we’ve seen have come from our and education. Partnership Forums, which pairs a more experienced member with a group of Young Leaders,” Horst said. “It’s impactful for a Young “Anytime you are part of an association or organization, it establish- Leader to have a person who has been around ULI to act as their es that common ground and gets you in the door,” he said. “Also, I advisor and convene in small groups to share life stories and les- opened up my business when I was very young, and on an educa- sons learned.” tional basis, ULI has given me access to other business leaders and the ability to see how they operate. I don’t think I would have Another program started by YLG is the community outreach pro- access to people like Charley Freericks (senior vice president, gram. Each year the group holds two events, one is the “Putt for organization and operations, for DMB Associates Inc.) and Steve Dough,” in which they raise funds for Youthbuild Phoenix, a com- Betts (president of SunCor Development Co. and treasurer of the munity development program that supports the construction or

Last fall, the group teamed with the city of Phoenix Graffiti Busters to repaint a wall half a mile long and pick up trash in a Phoenix neighborhood.

Commercial Executive magazine 23 L to R: J.P. Dahdah, Entrust Arizona, Shaun McCutcheon, Sullivan Group, Andrea Libey, Weitz Company, Peter Spier, The Plaza Companies, Luke Bethel, Cavan Commercial.

“Membership in ULI is an opportunity for people to build themselves profes- sionally through all of the organization’s activities. Also, we help build better communities by providing our members with the tools to make a difference in the communities in which they live and work.” –Michael Horst, ULI Senior VP, District Councils

“ULI has been the single biggest opportunity for our company and my career”

–Greg Vogel Founder & CEO rehabilitation of homes for low-income or homeless families. of Land Advisors The other event is typically focused around a community clean up. Organization Last fall, the group teamed with the city of Phoenix Graffiti Busters to repaint a wall half a mile long and pick up trash in a Phoenix neighborhood. It’s a great opportunity for people to be mentored and associated ULI has come a long way since its introduction and part of that has with ULI.” been with creation of the YLG. The YLG has not only provided an outlet for giving back to the community and mentorship, it has also Fifteen years ago, Vogel made the decision to join ULI following a provided young members an opportunity to be a part of Arizona’s national meeting he attended in Boston. Sitting in a room filled with next generation of leaders. who he thought were the next leaders and hearing the dialogue between them, he knew he had to be a part of the organization. He “When I started in ULI many years ago, there wasn’t a Young has since deepened his involvement and now credits much of his Leaders program,” said Greg Vogel, CEO of Land Advisors success to ULI. Organization and chair of the Arizona District Council. “In fact, there were very few young people in ULI because it is an expensive “I’ve been in the land business for 23 years, and when I ran across organization to be a part of. ULI, it just seemed to be the real organization that I had to be a part of,” he said. “ULI has been the single biggest opportunity for our “One reason YLG is so successful is the price and the ability to be company and my career. affiliated with a very prestigious organization such as ULI. It truly is a great investment. Another part is the leadership. It started with the “I’m proud of the Arizona Young Leaders, one, for what they have leaders who helped launch the group and has continued through to formed, and two, for being viewed as a model for other groups the group that operates it today. It’s a top notch group of leaders. across the country.” ■

24 © Copyright Commercial Executive magazine

The Big Deals and the Brokers Who Made Them Happen

Making Headlines

BADE COMPANIES PURCHASES MORE THAN 35 ACRES foot specialty retail center, set to open in 2009, will be located at the OF COMMERCIAL PROPERTY IN ESTRELLA northwest corner of Estrella Parkway and Elliot Road in Goodyear, and a 50,000-square-foot Bashas’ Supermarket will be the anchor Estrella by Newland Communities, located in Goodyear, Ariz., tenant. In addition to Bashas’, a number of retailers have a strong recently announced the sale of three commercially-zoned interest in Mountain Ranch Marketplace including Walgreens, Chase parcels located within Estrella. More than 35 acres were pur- Bank, Mini Skool, various restaurants, coffee shop, hardware store, chased by Peoria-based, commercial developer Bade dental office, hair and nail salons, realty office and many others. Companies with plans to develop retail amenities for Estrella and Goodyear residents. For more information, please visit www.estrella.com or www.new- landcommunities.com. “Bade Companies is built upon integrity and has a strong repu- tation for its commitment to quality service,” said Greg Bielli, GRUBB & ELLIS|BRE COMMERCIAL, LLC COMPLETES TWO president of the Western Region of Newland Communities, the LEASES AT ROOSEVELT BUSINESS PARK developers of Estrella. “Newland has aggressively pursued com- mercial opportunities over the past year and we are extremely Grubb & Ellis|BRE Commercial, LLC, one of the leading providers of confident that Bade will bring outstanding new retail amenities to integrated real estate services, recently announced it has complet- the community of Estrella.” ed two leases at Roosevelt Business Park, 7150 W. Roosevelt St. Liberty Motor Sports leased 10,019 square feet in the C building of One 5.9-acre parcel is located on Elliot Road, west of the Estrella the multi-tenant industrial development. Excel Construction Starpointe Residents Club and across the street from Estrella Services leased 3,804 square feet in the B building. Mountain Elementary School. Bade Companies is developing a 30,000-square-foot retail center boasting restaurants, retail shops and after school services. Planning and earth work has com- menced and the center is expected to open in summer 2009.

Bade Companies also purchased two adjoining parcels, totaling 29.48 acres, located on Willis Rd. near Estrella’s newest com- munity Montecito and across the street from Estrella’s future active adult community, Province. These adjacent parcels are light industrial zoned, allowing Bade the opportunity to build a Gary Anderson Marc Tuite Tony Lydon mixed-use development comprised of office space, storage facilities, retail services, a nursery and possibly a convenient car Gary Anderson, Marc Tuite and Tony Lydon with Grubb & Ellis|BRE wash and automobile zone for nearby residents. Commercial, LLC represented the landlord, David Himy Joint Venture during both transactions and Liberty Motor Sports. Marcus “We are extremely enthusiastic about our recent purchases in Hart with DKS Brokerage represented Excel Construction. For more Estrella,” said Roy Bade, designated Broker and president of information about BRE Commercial, please visit www.brecommer- Bade Commercial Services, Inc. “We are third generation devel- cial.com. opers and live, work and play in the West Valley. Estrella is a magazine strong, growing community and we are honored to be able to GRUBB & ELLIS|BRE COMMERCIAL, LLC COMPLETES SALE increase its retail offerings.” OF BROADWAY COURT IN PHOENIX Grubb & Ellis|BRE Commercial, LLC, has completed the sale of a In 2007, Newland Communities formed a partnership with 38,841-square-foot office development at 3230 E. Broadway Road.

Executive Kitchell Development Company for developing and building Sieroty Company purchased the three-building, two-story office Mountain Ranch Marketplace in Estrella. The 170,000-square- development located in the Phoenix Sky Harbor submarket for $5.2

Commercial 26 Making Headlines

million. The seller, Crown West Realty, acquired the property in al industrial buildings are located on 4.6 acres and were built in 2003 when it was fully vacant. Crown West resurfaced the build- 1985 and 1997. ing’s exteriors and built-out all of the shell space. The property was 95 percent leased when it was sold to Sieroty Company. Pete Klees and Rick Foss with Grubb & Ellis|BRE Commercial, LLC represented the landlord PCCP BAR I, LLC during the transaction. Richard Sica of DAUM Commercial represented Armor Designs Inc.

For more information about BRE Commercial, please visit www.brecommercial.com.

CB RICHARD ELLIS NEGOTIATES $81.6 MILLION SALE OF Bob Buckley Tracy Cartledge Steve Lindley MIXED-USE DESERT RIDGE CORPORATE CENTER IN Bob Buckley, Tracy Cartledge and Steve Lindley with Grubb & PHOENIX, ARIZ. Ellis|BRE Commercial, LLC represented both the buyers and the sellers during the transaction. For more information about BRE CB Richard Ellis (CBRE) has negotiated the sale of Desert Ridge Commercial, please visit www.brecommercial.com. Corporate Center, a mixed-use development consisting of two, multi-tenant office buildings and an adjacent retail center, located GRUBB & ELLIS|BRE COMMERCIAL, LLC COMPLETES in Phoenix, Ariz. LEASE FOR PORTABLE HEALTH RECORDS SERVICES

Grubb & Ellis|BRE Commercial, LLC, has completed a 1,579- square-foot lease at Mesa Springs, 1234 S. Power Road in Mesa. Portable Health Records Services signed a 2 year lease in the 2- story garden office building. Portable Health Records Services is a new venture formed by industry veterans.

Ray Harris, office and medical office special- Barry Gabel Mindy Korth Mark Dancer ist, with Grubb & Ellis|BRE Commercial, LLC, represented the tenant during the transaction. Barry Gabel, Mindy Korth and Mark Dancer from CBRE’s Phoenix Trisha Talbot, with Greater Phoenix office and Kevin Shannon, Ken White and Todd Tydlaska from Enterprises represented the landlord, Mesa CBRE’s Torrance, Calif. office represented the seller, the Springs. Southwestern Division of Ryan Companies US, Inc. in Phoenix, a division of the Minneapolis, Minn.-based company, in structuring For more information about BRE Commercial, the $81.6 million transaction. Ryan Companies US, Inc. is the please visit www.brecommercial.com. Ray Harris National Association of Industrial and Office Properties’ (NAIOP) 2007 National Developer of the Year. The buyer was Parkway GRUBB & ELLIS|BRE COMMERCIAL, LLC COMPLETES Properties Office Fund LP of Jackson, Miss. LEASE FOR RELOCATION OF COMPANY HEADQUARTERS Situated on a 14.8-acre parcel, with an 85-year remaining ground Grubb & Ellis|BRE Commercial, LLC, has lease, the project consists of the following: completed a five-year lease for 71,345 square Desert Ridge Corporate Center I and II is located at 20830 and Commercial feet in two buildings at 20860 N. Tatum Blvd., Corporate Center I and II are four-story, mir- 4645 S. 35th St. Armor ror-image office buildings totaling 274,958 square feet. The build- Designs Inc. is relocating ings have surface parking and share a parking garage. Completed their corporate head- in 2006 and 2007, the buildings were 79 and 98 percent leased at

quarters to the two build- the time of sale, respectively. Executive ings near the Sky Harbor Airport that they will fully The Shops at Desert Ridge Corporate Center is located at 4545 occupy. The two gener- Pete Klees Rick Foss continued on page 28 magazine

27 Making Headlines continued

continued from page 27 Irma Lane, The Shops at Desert Ridge Corporate Center is a Neil Sherman and Danny 18,149-square-foot building that offers retail and restaurant Lee with Axxiom repre- amenities to the entire center. Constructed in 2007, the building sented both the buyer and was 92 percent leased at the time of sale. seller in the transaction.

Parkway Properties is a national properties operator that special- izes in owning and operating high-quality, well-located, multi- For more information tenanted office buildings. The company intends to finish the about AXXIOM Partners, leasing and retain the assets as long-term investments. LLC., visit www.axxiom- Neil Sherman Danny Lee partners.com. AXXIOM PARTNERS NEGOTIATES $31.5 MILLION SALE OF SUN VALLEY RANCH LUXURY APARTMENTS IN MESA, AZ. Axxiom Partners, LLC has negotiated the sale of a 308 unit luxu- ry apartment complex located at 7353 E. University Drive in Mesa, AZ. Sun Valley Ranch was built in 2002 and consists of (29) two- story, garden style apartment buildings, along with a stand-alone rental office, clubhouse and fitness center. Sun Valley Ranch 308 Limited Partnership, which included Scott Homes (Steve Robson) and Kohlhase & Associates (Chuck Kohlhase) developed the property on land that had been held by Kohlhase for many years. The property was 93% leased when it was sold to Tidan USA/Sun Valley Ranch, LLC, a group that has been actively acquiring prop- erties Valleywide for the past few years. Sun Valley Ranch Apartments magazine Executive

Commercial 28 Property Profile Red Rock Business Plaza

by Dana Bos • Images by Kay & Co.

hen the developers of Red Rock Business Plaza in Bob Crum of the Crum/Krison team at CB Richard Ellis. Patrick the Chandler Airport Center first viewed the location, Jones, Vice President – Real Estate at Mark IV, considers the cen- Wall that existed was a small stop sign intersection ter a superlative site. “If you wrote down your wish list of all the and a vast amount of dirt. “It was love at first sight,” says Paul amenities and features your ideal business center would offer, Red Cate, president of Mark IV Capital, an Orange County-based Rock has all of it.” privately held real estate development firm. “We wanted in on the vision.” The growth planned for Chandler at that time excit- A Propitious Meeting ed Cate and his colleagues – growth that has now come to Mark IV’s interest in Chandler began at the ICSC conference in Las fruition. Two diamond freeway interchanges exist within a mile Vegas in 2004. “The city had a booth there, and we met Christine of the site. Crossroads Towne Center, Vestar’s newly complet- Mackay,” recalls Cate. “As we talked with her, we became intrigued ed 1.3 million square foot retail development, is situated next by the dynamics and growth in Chandler and the city’s vision for the door. “The user who locates in Red Rock will have so much future. We were interested in more product, so we came out and convenience, more than anywhere in the Valley,” says broker explored the market.”

Commercial Executive magazine 29 Mackay, a Senior Economic Development Specialist with the city of Chandler, couldn’t be happier with Mark IV’s involvement in the community. “We knew from the beginning that Mark IV Capital had a great reputation in the real estate market, but they have proven to be exceptional! Their unique vision and attention to detail has brought our community an outstanding project that will fill a niche that has long been missing. Paul and Pat are truly some of the best in the business for any city to work with.”

“Christine is wonderful,” observes Cate. “I wish she was in every city in which we developed. The City of Chandler has a strong vision for its growth, and the city takes a lot of pride in what it’s doing. That commitment assured us the community will have strong footing well into the future.”

A Values Match Mark IV hit it off immediately with the owners and horizontal devel- opers of Chandler Airport Center, Bill Lund and the Disney Family Trust. “Bill was particular about the developers,” recalls Cate. “He wanted to build the appropriate product and retain architectural integrity throughout the center. We went through a screening process with a number of other developers.” Bill Lund’s vision, notes Crum, required finding the highest quality development firms. “Lund and Mark IV had much in common in terms of outlook, the vision and business orientation,” he says. “It was like a duck to water. Working with Mark IV was one of Lund’s easiest decisions.”

Mark IV was one of eight developers chosen out of 15 to 20 firms to develop within the Chandler Airport Center. “Our values matched up very well with Bill’s,” says Cate. Mark IV tends to build beyond standards, explains Jones. “We purposely overbuild to our person- al requirements. These are long-term holds for us, and we keep the long-term returns in mind.”

“Their command of the market Mark IV’s partnership with the Crum/Krison team clicked easily as well. Crum and Krison, both in the business for over 25 years each, joined forces in 1993, and they have long worked in the Southeast and their ability to add value to Valley. Their familiarity with the area and its nuances are vast. “Their command of the market and their ability to add value to the devel- the development process by opment process by knowing what tenants want made them the brokers for us,” says Cate. “We also liked their willingness to be knowing what tenants want active in the planning process for the product type.” A Multi-Tenant Hybrid made them the brokers for us” Mark IV took over the multi-tenant aspect of the park, which came to be known as Red Rock Business Plaza. Traditional multi-tenant industrial development has more than one tenant in a particular –Paul Cate building or project, and typically many smaller tenants. That wasn’t President of the sole vision for Red Rock however. “Mark IV has designed a Mark IV Capital very flexible product,” states Krison. “Nothing requires us to accept

30 Commercial Executive magazine Standing, from Left to Right: Mark Krison, Robert Crum, Carole Uhrig, Scott German Sitting, from Left to Right: Patrick Jones, Paul Cate, Wren Martin

smaller tenants only. We aim to provide the curb appeal and com- years, was retained by Mark IV Capital to design Red Rock fort for tenants who start as small entity but may perhaps grow to Business Plaza. occupy an entire building. Red Rock could easily accommodate a 30,000 square foot tenant.” Plentiful, Distinctive Amenities Tenants of Red Rock Business Plaza will have access to a 30,000 Essentially, Red Rock Business Plaza embodies “a hybrid product, square foot conference facility within Chandler Airport Center. one that’s not offered anywhere else,” says Crum. The project pro- Users who desire a large meeting room for a teleconference or a vides opportunity for retail users, offering signage as well as walk up training session can simply reserve space. “There are different parking. “Red Rock is unique in that it’s the only multi-tenant proj- rooms for seminars and other kinds of events,” says Crum. “It even ect that offers street frontage to every tenant,” he adds. The cen- has a volleyball court. This building will be a great benefit to our ter’s overall parking ratio is a generous 4/1000 square feet. From a smaller tenants.” design perspective, Mark IV invested in finishes that raise the level of the project above those with generic facades. For instance, the Regarding retail, a plethora of alternatives are available. In Chandler use of natural stone throughout enhances the quality of the Airport Center, there are two banks, two convenience stores, gas development. Balmer Architectural Group, known for designing stations, Starbucks, and restaurants, among other retail offerings. award-winning projects throughout Metro Phoenix over the past 30 Situated next door, Crossroads Towne Center will offer extensive

Commercial Executive magazine 31 From Left to Right: Patrick Jones, Paul Cate, Wren Martin

“We’ve been working on a vision to create something that will benefit the community for years to come. We’re excited to make a positive impact.” –Paul Cate President of Mark IV Capital

shopping and entertainment options. The Chandler Airpark is a stock. “It’s amazing to see how rapidly the growth has taken place,” short drive away as well as two hotels. “It’s really unique to have he says. “It’s exciting to be a part of that.” Krison particularly such plentiful amenities,” says Krison. “We’re seeing plenty of admires the quality of the buildings. “This structure is over the top. demand.” Red Rock Business Plaza will be complete in April It’s magnificent. The fit, the finishes, the design – every detail has 2008. Seven spec suites will be available at that time ranging from been thought out, down to the parking and the loading. We’ve 1800 – 3200 square feet. never seen anything like the time, effort and attention to detail that has been invested in Red Rock Business Plaza.” ■ A Lasting Impact “We’ve been working on a vision to create something that will ben- efit the community for years to come,” says Cate. “We’re excited to make a positive impact. The entire process of developing Red For more information about Red Rock Business Plaza, Rock Business Plaza has been enjoyable.” Jones recalls that just a please visit www.cbre.com/redrock few short years ago the area was basically rural with farms and live- or call 602.735.5555.

32 © Copyright Commercial Executive magazine

Industry News

Having Trouble Finding Quality Property to ID for Your 1031 Exchange? Consider a TIC Investment!

by Susanne M. Haines, VP & Branch Manager LandAmerica Arizona Office

More often than not, an exchange will fail due to the taxpayer’s place despite these limitations. Rev. Proc. 2002-22 fueled a dra- inability to identify property. Planning is said to be the key to a matic increase in TIC investments. TIC equity volume exploded to successful 1031 exchange. However, even with the best plan- $1.8 billion in 2004 compared with just $167 million in 2001, a ning, the 45th day arrives and the taxpayer is searching at the last 978 percent increase. More than $4 billion in equity was invest- minute in an attempt to find quality property to identify. After all, ed in 2005, based on information presented at the 2005 Tenant- 45 days is a short period of time to make an investment decision. in-Common Association (TICA) Symposium.

But did the investor consider a TIC? An ongoing debate within the TIC industry is whether a TIC invest- ment constitutes real estate or an investment contract under A tenant in common (TIC) interest is an undivided fractional inter- securities law. As provided by the IRS Rev. Proc. 2002-22, TICs est in real estate. TIC products available include large office build- are deeded real estate interests for purposes of 1031 Exchanges. ings, retail shopping centers, warehouses, apartment buildings, However, TICs are most commonly offered by Sponsors as and single tenant retail all of which are typically recognized as investment contracts, a financial agreement where investors con- institutional-quality commercial real estate. The foremost advan- tribute capital in expectation of a returned profit. Securities as tage of the TIC structure is that it allows an investor to acquire defined include investment contracts and therefore fall under the investment property otherwise out of reach. Rather than owning Securities Exchange Commission (SEC) guidelines. As a result, 100% of the property, the investor is able to own a mere 5%, for real estate brokers and/or agents involved in the sale or purchase example. Most importantly, it provides an increased opportunity of such investments are not entitled to a commission. to identify replacement property within the required 45 days. On November 13th, 2007 the SEC published the National The Internal Revenue Service issued Revenue Procedure 2002- Association of Realtors (NAR) request for exemption from certain 22 establishing guidelines used to determine when a TIC interest regulations regarding the sale of TIC interests. Comments are would be considered an interest in real estate for 1031 purposes. currently being taken on the issue and the SEC has not yet issued Prior to the Rev. Proc., there remained a difficult question of an exemption. However, should an exemption be issued, a whether the co-ownership of property constituted an ownership licensed real estate broker or agent predominantly engaged in interest in a business entity, which does not qualify for a 1031 and having substantial experience in commercial real estate trans- exchange. The resulting guidelines opened the door for 1031 actions would be able to collect an advisory fee. NARs request exchange investors. It is with these guidelines that the TIC indus- raises many issues, however the result will undoubtedly change try has flourished, growing exponentially each year. the existing TIC environment significantly.

Sponsors of TIC programs are able to structure investment pro- If you or your clients are having difficulty locating quality grams to comply with the general guidelines set forth in Rev. Proc. replacement property, consider the TIC 2002-22 and are able to provide alternative replacement proper- interest. It could be just the type of product magazine ty products to taxpayers. There are significant restrictions in place to fit your investment portfolio. in order for a TIC interest to qualify for 1031 treatment, including a limitation on the total number of co-owners in a property (35), Susanne Haines has over ten years of real mandatory unanimous consent by all co-owners on property estate experience in both commercial and

Executive management, and financing and disposition issues. There are residential transactions. She has over five also significant restrictions on exit strategies for the co-owners. years of legal experience, nearly four of TICs have already gained tremendous momentum in the market- which are specific to the 1031 industry.

Commercial 34 Industry News

By Ryan Harding, Public Information Officer, Arizona Department of Transportation

or Valley residents, 2008 will be a full and exciting year as Freeway and Princess Drive and to SR 51 between Shea the Arizona Department of Transportation completes of the Boulevard and Loop 101 in Northeast Phoenix. Both projects F Regional Freeway System and begins additional freeways are scheduled to be completed in the fall of 2008. under 2004’s Proposition 400. The last five-mile segment of the Loop 202 Red Mountain Freeway between Power Road and Starting this summer, carpool lanes will be extended along the University Drive is scheduled to be completed in the fall of 2008, Loop 101 Pima Freeway from Princess Drive to Tatum which will mark on-time completion of the Regional Freeway Boulevard, and along the Price Freeway from the Red Mountain System under Proposition 300, passed by voters in 1985. Freeway to the Santan Freeway.

At the same time, many new projects funded by Proposition Other projects starting this year will include adding two miles of 400, which was passed by voters in 2004, will begin. One of the roadway to SR 85 from Southern Ave to I-10 and improving major objectives will be to add additional general-use and HOV passing lanes along SR 74. Traffic interchanges will be added lanes to existing freeways to help with congestion. I-17 will be on I-17 at Dove Valley and improved on the Loop 101 Agua Fria widened from the Loop 101 to Carefree Highway in the North Freeway at Thunderbird. Valley by adding two new lanes in each direction, as well as constructing the I-17/ Loop 303 future interchange. I-10 will also Beyond construction, ADOT will continue efforts to study and

be widened in the West Valley from Loop 101 to Sarival Avenue evaluate four proposed new freeways in the Valley, including the Commercial with two new lanes in each direction as well. The Loop 202 Red South Mountain Freeway, Loop 303 and an I-10 reliever route in Mountain Freeway will be widened between SR 51 and Loop the West Valley. 101 in Phoenix and Tempe. These projects are scheduled to be completed in 2010.

More information on Executive The Loop 101 Pima and Price Freeways will get additions of ADOT’s Valley projects carpool lanes this year. Carpool lanes are already being added is available at to the Loop 101 Pima Freeway between the Red Mountain www.azdot.gov/valleyfreeways. magazine

35 Industry News

Perception vs. Reality

by Barbara Lloyd, CCIM

I was recently asked by a residential realtor if things were There are perhaps other silver linings that aren’t taken into as bad in commercial real estate as they are in residential. consideration. The slow down in the current housing is I answered her question with a question, “Are things really keeping Phoenix affordable which will keep our metropoli- that bad in real estate in general or has it been hyped by tan area attractive to corporations and business looking to the media’s needs to create a story?” That is a question relocate their employees. If we put it in perspective we that I bring up often as I educate buyers in our current shouldn’t be too pessimistic that our housing prices, which owner/user commercial real estate market. have escalated at rates some over 150% in value, have perhaps depreciated by less than 20%. The slow down in overall development has also made contractors more • Prime is currently at 7.25%, a relatively low accessible which may lead to a gradual decrease in recent- interest rate, often times making a lease vs. ly soaring construction costs. own scenario favorable to owning.

• Funding is still available, despite the very “Phoenix is a unique and dynamic realistic scare in mortgage lending; there are still loans available for those with suit- marketplace compared to other areas able credit and down payments. of the country and we should • Owner/User real estate inventory is up, not fall into the self-fulfilling prophecy potentially making this a favorable market for potential buyers to submit offers. often created by negative publicity”

• Unemployment is low and Arizona’s economy and population is still growing. Keeping these points in mind, one should consider if now • Over the long term Arizona’s metro areas is the time to invest in real estate in which to locate their will continue to grow and real estate in business. Phoenix is a unique and dynamic marketplace these markets should appreciate. Evaluating compared to other areas of the country and we should not whether a company plans to be in their fall into the self-fulfilling prophecy often created by negative space long-term or short-term will affect publicity. whether buying in these submarkets today makes sense in the overall business plan. Barbara Lloyd has been in the commercial real estate industry since 1997, beginning in sales and leasing in 1999. She special- It is accurate that sales for owner/occupied space have izes in office and industrial sales, leasing magazine slowed and inventory on the market is increasing, however and commercial investments. Ms. Lloyd what is behind the slowdown? Is it a perception of fear has closed over $85 million of commercial that is keeping potential buyers on the sidelines? I would real estate transactions totaling over like to point out the reality of certain fundamentals in our 600,000 square feet. Barbara Lloyd, CCIM

Executive market today.

Commercial 36 For Sale • For Lease • Wanted On The Market

ALLRED PARK PLACE SEC of Loop 202 & Price Road, Chandler AZ Available for Lease or Sale R-30 Roof Insulation Phase I Completion in the Upscale Lobby with 4th Quarter 2008 providing Restroom Core Included +/-258,000 SF of Class A Excellent Visibility from Loop Office Space 202 and Price Road Mark Krison Scott German Additional Land Available for Located at a Major Two- (602) 735-5670 (602) 735-5538 Build-to-Suit Freeway Interchange Robert Crum Carole Uhrig 5/1,000 Parking; Within One Mile from (602) 735-5522 (602) 735-5260 Covered Parking Available Chandler Fashion Center Mall

© 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 representation 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 repre- sent the 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 your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. Commercial Executive To place an ad, please contact: Christina O’Callaghan, Publisher Commercial Executive magazine

Direct: (480) 567-4772 magazine Email: [email protected]

37 Brokers Council

Broker’s Council

Commercial Executive magazine is creating a Broker’s Council to help us select qualified candidates for the “Featured Broker” each month. The nomination form on page 39 outlines the qualifications for the “Featured Broker.”

To be a member of our Broker’s Council, you must meet one of the following qualifications: • You must be a Principal or Managing Partner/Director with a recognized commercial real estate brokerage firm in Arizona • OR, you must be a sponsor of Commercial Executive magazine.*

The time commitment for membership on our Broker’s Council is very manageable: • Commercial Executive magazine will meet with the Broker’s Council on a quarterly basis for lunch and to review the nominations. • All meetings will be held at Capital Grille in Phoenix.

Membership on Commercial Executive magazine’s Broker’s Council has its benefits: • We are offering the Valley’s commercial brokerage firms an opportunity to represent their respective firms. If there is a nominee that you strongly favor (or oppose), you have the opportunity to be present and express your opinion. • The quarterly meetings with Commercial Executive magazine provide an opportunity to meet and network with potential clients and other industry leaders in a social and non-competitive environment. • Each month, we will profile one of our Council members within Commercial Executive magazine and on www.cem-az.com

Membership on Commercial Executive magazine’s Broker’s Council is limited to 20 members.

Sincerely,

Christina O’Callaghan Christina O’Callaghan magazine Publisher

Executive *Contact Christina O’Callaghan for sponsorship options and availability.

Commercial 38 Broker of the Month Nomination Form

Arizona’s Trade Publication for The Commercial Real Estate Industry

Criteria for Nomination: Featured Broker • 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 Marc Hertzberg Grubb and Ellis/BRE Commercial Co. by Dana Bos • Images by: Kay & ed Marc Hertzberg, Senior Vice President, On the day I interview rubb & specializing in Industrial Commercial Real Estate for G • Active in the real estate community his company are liter- ercial; representatives from Ellis/BRE Comm ew BRE Commercial is a locally owned ally ringing in the New Year by ringing the closing bell at the N ommercial is a locally owned affili- York Stock Exchange. BRE C e one ate of Grubb and Ellis and its office in Phoenix has becom affiliate of Grubb and Ellis and its pany that is known for provid- of the top three markets for a com ing worldwide property solutions. Hertzberg is proudFeatured of his office Brokers ediately identifies one key con- office in Phoenix has become one and his team’s success and imm tributor; most agents are stock holders, not typical for this • Dedicated to the industry and involved in hy, according to Phoenix of the top three markets for a National Organization. Perhaps that is w ommercial has become Business Journal, Grubb & Ellis/BRE C ommercial Brokerage firm in Phoenix, with over company that is known for providing the largest C ploy- Ninety Sales Professionals and a staff totaling over 150 em my business. Even ees. Hertzberg puts it more succinctly, “I am pany, we are sole proprietors, worldwide property solutions though we work for a large com professional activities such as committees, which means there’s no ceilingTyler to your potential.” 13 associations or boards &ComAndersonmercial Executive magazine Sean Cunningham Two Industry Veterans Nominee Name: Look Back

by Dana Bos Images by: Kay & Co.

Since th e early 80s, Tyler A nderson and Se Company: Cunningham of C an B Richard Ellis have b bers of th een mem- e Phoenix commercial real estate munity. W com- ith over 50 years of com exp bined erience, the pair and their te the sale am specialize in of multifamily properties.

Commercial E xecutive sat down with this d learn about th uo to eir early days in the business and Address: evolution they’ve observed since then. the One Big Family In 1980, w hen Cunningham ha from d just graduated Northern Arizona U niversity, Coldwell Banker (which eventually becam e CB Richard Ellis) and Grubb & Ellis were the tw o established companies L to R: Sean Cunningham in town, he recalls. An attorney associate and Tyler Anderson Cunningham’s fathe of r, M ike Tiffany, re p Phone: Peter Pocklington resented who owned the E Oilers ho dmonton ckey team at the time and ing apa was purchas- rtments through Ha nk Ragland at Coldwell

C ommercial Execu Fax: tive magazine 13

Email:

Submitted by (required): Name: Who Will Be Company: the Next Phone:

Email: Featured

Reason for Nomination: (You may attach a separate sheet to submit more information) Broker?

Please fax or email to Christina O’Callaghan: FAX: (480) 699-7419 • Email: [email protected]