New art map, webpage showcases art along shared-use path

Pima County has created a printed map and webpage of more than four dozen pieces of art along the Chuck Huckelberry Loop, Pima County’s 131-mile shared-use path.

Users are able to enjoy the art thanks to the Pima County Board of Supervisors’ longtime support of a Pima County Public Art Program. The Board established the policy back in 1990 to allocate one percent of the cost of public works’ projects on public art.

Some of the works seen along the Loop are not part of the Public Art Program, but instead are generous donations by civic-minded Loop lovers. Art helps shape the quality of life for people in Pima County by offering a form of expression that embodies the community’s spirit. It also attracts people who bring a broad array of talents and experiences to the community.

Among the clever creations Loop users will see while strolling or biking its paths:

  • A metal sculpture of bats popping wheelies while astride a mountain bike;
  • Tilework chronicling the story of Spanish explorer Juan Bautista de Anza and Padre Eusebio Kino
  • Cascading rain and raindrops depicting the abstract movement of water using 2,000 iridescent glass marbles and broken tile.

The Public Art Program is meant to not only beautify the community, but also to increase employment opportunities in the arts, actively encourage emerging artist of culturally diverse backgrounds and advance other community goals, such as youth development and delinquency prevention.

The Loop Art map is available at the County Administration Building and at Natural Resources, Parks and Recreation headquarters at 3500 W. River Road. Art lovers also may visit where they can download a PDF of the map and expand each river park segment to view a photo of each piece of art, find the name of the artist and when it was installed and read a brief description of the piece.

NAI Horizon negotiates $7M sale of largest multifamily-zoned private land holding in Central Phoenix to Scottsdale firm

PHOENIX, ARIZONA – The $7 million sale of the largest multifamily-zoned land holding in Central Phoenix was negotiated recently by NAI Horizon on behalf of the seller.

The 7.01-acre tract assembly on the east side of N. 12th Street and north of Indian School Road was sold to Scottsdale-based Deco Communities and fetched $22.92 per square foot.

NAI Horizon Vice President Kim Kristoff represented Sidney M. Rosen as trustee on behalf of a lifetime grouping of partners and trust beneficiaries. The combined R-5/R-4 zoning allows up to 311 apartment units based upon the results of a previous site plan submittal.

“Over the past four years, the property has been marketed nationwide and internationally,” Kristoff said. “Most of the national firms resisted the idea of a project on North 12th Street and have paid as much as three times more for their land acquisitions only a few blocks away and had to build structured parking as well.

“They are facing the reality of achieving $2-plus base rents and a variety of related fees (covered parking, storage, utilities, and exercise club) that bring the cost of a one-bedroom unit to more than $1,500 per month. Apartment renters, whether seasoned

professionals or entry level students, are seeking the very best rental rates for a well-designed and secure apartment in a given market location. They are willing to forego a variety of service amenities of arguable value if they can save perhaps hundreds of dollars each month and use the savings for other lifestyle choices,” Kristoff said.

The 24-lot assembly began with the first purchase by the partners 40 years ago in 1978. The property has had a typical Central Phoenix history as a collection of garden apartments and also as the home for more than 20 years of Solutions, Inc., an addiction rehab facility.

While the N. 12th Street community has begun to gentrify, it has been the home of law practices, architectural and engineering firms, small associations, insurance brokerages, and numerous other service providers. Retail in the area includes small restaurants, cafes, a coffee shop, sandwich shops, and a variety of local artists.

Considered an area of affordable housing and post-war apartment properties, the street is becoming the new value proposition for the emerging middle market developer and renovation investment opportunities. New nearby apartment projects developed by national firms include the Loft at Campbell and N. 16th Street, the Crescent and Alante at Highland and N. 16th Street, Alta Camelback at N. 7th Street and E. Camelback, Citi stretching between Highland and Camelback, and several others north and south along N. 7th and N. 16th streets.

“Kim Kristoff has absolutely been the best and most professional commercial real estate broker we have worked with in our many years of assemblage and our acquisitions of the 24 contiguous parcels,” Rosen said. “His extremely professional, persistent, in-depth, and sophisticated marketing efforts culminated with this sale to Deco Communities.”

One of the most attractive advantages of this site for Deco Communities is that it doesn’t need to build expensive parking structures. Deco can provide ample parking on grade for up to 311 units, Rosen said.

“This will dramatically lower the overall development cost of the project and allow for more affordable rents, additional landscaping, and easier entry level access for apartment renters,” Kristoff said. “It was not until we tried a pre-app site plan submittal and discovered a provable building volume, on-grade parking count, and site density that were we able to speak with confidence about the real project possibilities.”

AZ Pure Water project receives Transformational Innovation Award

Project honored at national water conference

PIMA COUNTY – Pima County’s AZ Pure Water Brew Challenge project won the Transformational Innovation Award at the 33rd Annual WateReuse Symposium, Sept. 10 in Austin, Texas. The WateReuse Association honored the project for its leadership, creativity and persistence in supporting recycled water.

Every year, the WateReuse Association recognizes individuals and projects that have made significant contributions toward support of water reuse during its annual WateReuse conference, which is dedicated solely to advancing the policy, technology, innovation and public acceptance of recycled water. This year marks the second time Pima County’s AZ Pure Water Brew Challenge project participates.

Led by the Pima County Regional Wastewater Reclamation Department, the AZ Pure Water project helped change the perception regarding recycled water in many Arizona communities by using recycled water to brew beer. Using a one-of-a-kind mobile potable reuse treatment facility, the project team, which included several Southwest Water Campus partners, treated more than 80,000 gallons of recycled community wastewater to use for a brew challenge competition, which culminated at the 2017 WateReuse event in Phoenix, AZ.

One year later, Pima County’s AZ Pure Water project remains on the forefront of innovation inspiring new projects nationwide.

“It’s an honor to receive the award, but this was really a team effort with many exceptional partners making it possible,” said RWRD Deputy Director Jeff Prevatt, who led the project. “The real winners are the folks living in communities that will one day benefit from our efforts.”

Recently, the AZ Pure Water team and mobile purification truck traveled to Idaho to help the City of Boise pilot its own pure water brew project. Next stop is Texas to help the El Paso community visualize its full-scale operation, which is currently in the works.

For the latest news and information on the AZ Pure Water project, visit the AZ Pure Water Brew Challenge Facebook page.

24th at Camelback II Achieves LEED® Platinum Recertification

PHOENIX, Arizona — Hines, the international real estate firm, announced today that 24th at Camelback II has been recertified Platinum under the U.S. Green Building Council’s LEED for Existing Buildings: Operations & Maintenance (EBOM) Rating System. The property, owned by Hines and an East Coast pension fund advised by Invesco, first achieved LEED Platinum in 2013. At the time of original certification, it was the first LEED EBOM Platinum multi-tenant property in Arizona. Today, it remains the only LEED Platinum-EBOM Certified office property in the state.

The 11-story, 302,209-square-foot Class A office building was developed by Hines in 2010 and is in the heart of Phoenix’s Camelback submarket. 24th at Camelback II is located next to 24th at Camelback, an eight-story, 302,209-square-foot building, which Hines recently sold.

Some of the project highlights the team accomplished to achieve this prestigious certification include:

  • Reduced emissions from conventional commuting trips by 48.5 percent. This reduction was mainly attributed to the use of fuel efficient vehicles by building occupants.
  • Reduced indoor plumbing water use by 34.92 percent compared to standard fixtures. Existing high-efficiency fixtures will reduce water usage by approximately 813,000 gallons per year.
  • Reduced irrigation water use by 60 percent. Drip irrigation and native plantings contributed to this reduction.
  • Purchased 50 percent off-site renewable energy. Renewable energy certificates were purchased to offset the emissions for 50 percent of the building’s energy usage for two years. Together, the ECMs and offsets will result in an annual reduction of 970 Metric Tons CO2, which is equivalent to the emissions produced from the electricity use of 144 homes for a year.
  • Diverted 100 percent of durable goods waste. An electronics recycling event was held at the building for all building occupants resulting in a total of 2,213 pounds of office and home e-waste diverted from the landfill.
  • Purchased 84.54 percent sustainable cleaning products during the performance period. Sustainable purchases included Green Seal®-certified cleaning chemicals, as well as paper products with recycled content.

In addition to earning LEED Platinum, 24th at Camelback II has earned the ENERGY STAR® label every year since 2012.  With a current ENERGY STAR rating of 93, the campus is 49 percent more energy efficient than the average U.S. office building.  This translates to an estimated $1.41 per rentable square foot in annual energy cost savings and annual greenhouse gas reductions equivalent to removing 401 passenger vehicles from the road.

“By achieving LEED Platinum recertification, the local project team continues to demonstrate to our owners, tenants, prospective tenants and the community that this property is being managed to the highest standard of excellence,” said Hines Managing Director and City Leader Chris Anderson.

Hines Senior Vice President and Global Sustainability Officer Clayton Ulrich, added, “Hines has a long-standing commitment as an industry leader in sustainable, high-performance real estate and this Platinum recertification for 24th at Camelback II represents that.”

Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 207 cities in 24 countries. Hines has approximately $116.4 billion of assets under management, including $64 billion for which Hines provides fiduciary investment management services, and $52.4 billion for which Hines provides third-party property-level services. The firm has 109 developments currently underway around the world. Historically, Hines has developed, redeveloped or acquired 1,319 properties, totaling over 431-million-square-feet. The firm’s current property and asset management portfolio includes 527 properties, representing over 224 million square feet. With extensive experience in investments across the risk spectrum and all property types, and a pioneering commitment to sustainability, Hines is one of the largest and most-respected real estate organizations in the world. Visit for more information.


Metro Commercial and USAA Real Estate Announce Sale of Phoenix Office Building

25700 North Norterra Pkwy., Phoenix, AZ

Phoenix, Arizona — The investment sales team of Chris Toci and Chad Littell of Cushman & Wakefield successfully closed the sale of a north Phoenix suburban office building located at 25700 North Norterra Parkway in Phoenix, Arizona.

“The exceptional design, construction, and development attributes of Norterra West One coupled with the pristine credit of the tenant and the lengthy lease duration made this marketing effort the most competitive of my 22-year investment brokerage career”, said Chris Toci, executive managing director of Cushman & Wakefield.

The property was marketed for sale by the Cushman and Wakefield team on behalf of USAA Real Estate of San Antonio, Texas, in cooperation with local Tempe-based developer Metro Commercial Properties, Inc. The purchaser was JDM III Norterra, LLC an investment fund managed by JDM Partners (Jerry Colangelo, David Eaton, Mel Schultz).

The 3-story suburban office building is located along the I-17 Black Canyon Freeway in north Phoenix, within the master planned community of Norterra. The building was completed in June 2016 as a speculative investment office development by the team at Metro Commercial Properties and USAA Real Estate and marketed for lease by the professional leasing team of James Bayless and Ashley Brooks of CBRE.

“We’re proud to have seen Phase One of this project become reality,” said CBRE’s Ashley Brooks. “This recent activity underscores the strength of Phoenix’s office market in the second quarter of 2018, and we look forward to welcoming new companies to Norterra West Two as Phoenix’s demand for high-quality office space continues to accelerate.”

The 147,638-square-foot building is a prominent and highly visible structure along the Black Canyon Freeway and possesses 100% covered parking for 877 cars (6/1000 SF). A twin three-story building is planned by USAA Real Estate / Metro Commercial Properties development team. Construction drawings for the forthcoming Norterra West Phase Two office building are currently being assembled by Tempe architectural firm Davis, with construction permits projected in the fall of 2018. James Bayless and Ashley Brooks at CBRE have been engaged by the owner/developer to market the second phase office building to pre-lease and build-to-suit office clients.

“The design features of Norterra West Two will closely replicate the first phase building,” stated Patrick Althoff, CEO of Metro Commercial Properties. “The large efficient floor plates, abundant 6 to 8 per thousand square foot parking ratio, the planned conference/fitness amenity center, and the strong retail and residential amenity base within Norterra will provide us the attributes we need to compete for and attract strong corporate users to the building.”

In addition to the proposed second phase of office at Norterra West, additional phases of development within Norterra are being considered. Union Park at Norterra is planned for 1,100 single family homes, 1,100 multi-family units, along with hotel, office, and specialty retail and restaurants. The first phase, totaling 309 single family homes by homebuilders Ashton Woods, Cachet Homes and David Weekley Homes, will start late summer / early fall 2018.

The Money Source, Purchases $7.5 Million Office Building in Phoenix

3138 E. Elwood Dr., Phoenix, AZ

Dramatic Growth Leads The Money Source to Participate in Trend Towards User Ownership

Phoenix, Arizona – The Money Source, a privately held, national mortgage company, has purchased a freestanding office building at 3138 E. Elwood Dr. (directly off I-10 and University) as its new Arizona headquarters. The Money Source purchased the $7.5 million building to accommodate its rapid expansion over the last several years.  The company chose to purchase its own stand-alone building to meet the needs of its specialized mortgage services.

“The buyer was very interested in acquiring this particular office building because of its excellent location,” says Greg Hopley, executive vice president with Colliers International in Greater Phoenix.  “Moreover, this was a very strategic purchase that allows opportunity of additional square footage to accommodate future expansion in Phoenix.  The commercial real estate community throughout Phoenix has witnessed a growing trend of companies seeking ownership of freestanding properties to take advantage of owner-user benefits.”

“We quickly realized this office building offered everything we need to successfully expand our business,” says Mike Mirshahzadeh, CRO and managing partner of The Money Source.  “We will move into this facility with several hundred employees, but plan to grow that figure to over 500 in the near future.  We are experiencing excellent growth here in Phoenix and believe this is the ideal site for dynamic expansion.”  Mirshahzadeh has more than 20 years of experience in the mortgage industry and was the founding leader in moving to Phoenix from San Francisco.

The 77,118-square-foot Class “A” office building was purchased for $7,500,000. The commercial building sits on approximately five acres of land. The highly successful mortgage company was in need of an Arizona headquarters facility close to various freeways and dense employment areas of Phoenix.  The Money Source provides mortgage services throughout the Greater Phoenix metro area, and throughout the US, with offices in New York, The Bay Area, Connecticut, Dallas, Detroit as well as the Greater Phoenix area.  In addition to providing traditional mortgage services, the firm also provides mortgage insurance services for its clients.

The newly purchased office building offers frontage on Elwood Drive and features built-out offices, conference rooms, break rooms, bull-pen, beautiful lobby area and other spaces required for company functions.  The large, secured parking lot also was an important element for The Money Source.  The building was originally constructed in 1998 and has been remodeled over the past few years. The Money Source has plans to occupy 100% of the building.

Hopley represented The Money Source in the purchase negotiations.  Arnold Phoenix Southbank LLC sold the property and was represented by Jones Lang LaSalle.

Queen Creek Unified School District Breaks Ground on Elementary School at Cadence

Students turn dirt at QCUSD Ground Breaking (courtesy photo)

MESA, ARIZONA — Community members, political leaders, Mesa Mayor John Giles, Harvard Investments and members of the Cadence at Gateway team joined Queen Creek Unified School District (QCUSD) officials on September 10, 2018, to celebrate the groundbreaking of QCUSD elementary school #7. The new school, which is not yet named, is in the Cadence at Gateway community located in the northern part of the district’s boundaries. QCUSD has hired DLR Group to design the district’s seventh elementary school. Chasse Building Team is serving as general contractor.

“This school will be a great addition to our high-achieving district, especially for the families in the northern part of our boundaries,” said QCUSD Superintendent Perry Berry. “It will be a state-of-the-art facility that offers many amenities including a mastery learning model, leadership opportunities, and a STEAM focus.”

The new school, which serves students in Pre-K through fifth grade, consists of two single-story buildings and two, 2-story buildings. The buildings frame a central courtyard, extending learning and gathering opportunities to the outdoors. Large garage doors open to make room for large group activities, dining, assemblies, and events in the courtyard. Shared specialty and breakout spaces, including the smart lab for technology-based, hands-on programs and the wet lab maker space counterpart enhance STEAM curriculum and encourage collaborative teaching across the campus.

In addition to classrooms and labs, the school includes a multi-purpose gym and performance space, a commons area that doubles as the cafeteria, two music rooms, a media center, administrative offices, playgrounds, and athletic fields.

Funding for the new school comes from the Arizona School Facilities Board and a voter-approved bond.

Find out more about Cadence at Gateway and what makes it the premier residential community in Arizona by visiting ( or follow us on Facebook, Twitter and LinkedIn. Builders include Lennar and its NextGen® homes, Gehan Homes, Pulte Homes and David Weekley Homes. The Grand Opening is set for October 20, 2018.

JLL Healthcare Report: The race is on to meet patients where they are

Katie McIntyre

Phoenix aligns closely with national trends, healthcare market strength

PHOENIX, Arizona – Rising patient numbers and real estate spending point to long-term resilience for healthcare-related buildings – and Phoenix is no exception, according to JLL’s latest U.S. Healthcare Real Estate Outlook report and healthcare experts within the Phoenix office of JLL.

According to JLL, the key trends driving U.S. healthcare real estate that apply equally in Phoenix are:

Using new types of real estate in new and more locations to continue to capture growing patient demand. 

    More diverse facilities improve the patient experience and win brand loyalty. Innovative settings such as 24-hour emergency care centers, urgent care, wellness and micro-hospitals are popping up in valuable retail locations.

“In Phoenix, well-known names in Phoenix like Banner, Dignity and Honor Health want to be where the population is, making areas like Gilbert, Goodyear and even emerging communities like Laveen very popular for off-campus medical office locations,” said JLL Senior Associate Mari Lederman.

Offering the right location with the right care – no more, no less – to mitigate decreasing reimbursements and operating income pressures.

    Outpatient centers often are less expensive to construct and operate than traditional hospitals.

“One of our clients, Cancer Treatment Centers of America, recently opened two off-campus clinics – one on North Phoenix and one in Scottsdale – designed specifically to offer chemotherapy treatments,” said JLL Senior Associate Katie McIntyre. “They are actively pursuing more outpatient care centers now, the first of which will open in the Valley next April.”

According to JLL, on-campus medical office building vacancies sit at 17.6 percent while off-campus vacancy rates have decreased to 14 percent. Through this migration, many users are looking for second-generation space to mitigate rising rents and construction costs, and offer a way to create space that works with their particular use.

Expanding and renovating inpatient settings to accommodate longer stays.

    With 10,000 Americans turning 65 every day for the next 20 years, there is an increased need for more effective space in more locations to serve older adults. Also, inpatient facilities will increasingly be focused on the sickest and most acute care needs, keeping hospitals a crucial piece of the healthcare delivery puzzle.

“Our large retirement population makes this extremely important in Arizona,” said McIntyre. “As the aging patient population increases, the demand for more medical office buildings will also increase.”

Click here to access JLL’s full U.S. Healthcare Real Estate Outlook. For other local and national JLL research reports, visit the JLL Phoenix research page at

Cushman & Wakefield Sells 13.7 Acres in Southeast Valley

Mesa-based Multifamily Developer Plans Class A Apartment Project

PHOENIX, Arizona – Cushman & Wakefield completed a 13.7-acre sale at SanTan Phase III, located south of the southeast corner of SanTan Village Parkway and Ray Road in Gilbert, Ariz. SanTan Development Group, Inc., an entity formed by Mesa-based LeSueur Investments, purchased the property from Cisterra Santan Village Phase III, LLC, a company formed by San Diego-based Cisterra Development, for $9.4 million.

Brent Moser, Mike Sutton and Brooks Griffith with Cushman & Wakefield’s land group represented Cisterra Development in the transaction.

The 13.7-acre site, within SanTan Phase III, is permit ready with approved building plans. SanTan Development Group, Inc. plans to re-assess the Class A apartment project, which is in a location becoming a high-growth restaurant and entertainment pocket.

“Property is fully improved with numerous walkable amenities, making it a unique suburban development opportunity,” said Moser.

In the second quarter of 2018, multifamily development continued to grow in the Metro Phoenix market with 9,646-units completed across 45 properties, year-to-date according to Cushman & Wakefield research. The Mesa/Gilbert submarket currently has 1,091-units under construction and another 2,675-units planned.

ADOT’s largest excess land sale for $28.7 M will help fund I-10 widening in Phoenix

Agency sells parcel near Sky Harbor Airport for $28.7 million

PHOENIX – The Arizona Department of Transportation has sold a parcel of land it owned along Interstate 10 in Phoenix for $28.7 million, the largest sale of excess property in the agency’s history.

The 21-acre parcel, which includes several buildings, is located along the north side of I-10 near Phoenix Sky Harbor International Airport.

As has been done with some previous excess property sales, proceeds from the sale will be used for an upcoming project to widen I-10 between the Loop 202 (Santan Freeway) and the I-17 “Split” interchange near Sky Harbor. That project is scheduled to start construction in 2021.

The property has been sold to Exeter 4425-4535 East Elwood LLC, a Philadelphia-based developer. ADOT purchased the property, west of State Route 143 (Hohokam Expressway), in 2011.

“Our engineers determined how much of the property would be needed for I-10 widening,” said Michael Craig, manager of ADOT’s office of property management. “The timing was right to sell the excess portion and put those dollars into the upcoming project’s budget.”

Under an agreement, the new owner will remove sections of three buildings on the property that currently extend into the area ADOT will need for the I-10 improvements. Several businesses, including cabinetry and shipping firms, have been leasing space on the property.

ADOT advertised the parcel earlier this year and conducted several tours for potential buyers. Eight bidders took part in an auction of the property.

Industry Veteran to Launch Velocity Retail Group’s Management Services Division

Mark Villalpando, Sr Vice President, Velocity Retail Group Management Services Division

PHOENIX, ARIZONA – Velocity Retail Group announces the hiring of Mark Villalpando as Senior Vice President and Designated Broker of the firms newly launched Velocity Management Services division.  The division will work with our new and existing clients to maximize property value and investment returns.

In addition Mark will be the Senior Vice President of Development for Accelerated Development Services, Velocity Retail’s affiliate company.  This company provides a resource for Velocity’s clients to handle their build-to-suit expansions as well as construction management.

“In order to continue to provide excellent service across each of our business platforms and serve our development partner clients we have formed Velocity Management Services.  Mark’s background, experience and industry knowledge are a perfect complement to our organization,” said Dave Cheatham, President of Velocity Retail Group and Accelerated Development Services.  “Our clients require solutions that provide a consistent service delivery level regardless of whether its brokerage, development services, consulting, or asset management.  For Accelerated Development Services, Mark will expand upon our build-to-suit and construction management services for our tenant clients,” he added.

Mark has an impressive and varied career which includes practicing real estate and corporate law, developing community and neighborhood retail projects throughout the west, establishing a bank and serving as chairman, and working with two national retailers as they opened over 150 stores.  Most recently, he has consulted with national retailers on portfolio optimization, lease management and growth strategies, as well as providing asset management services for commercial projects.

“I have worked with the leadership group at Velocity Retail for most of my career.  I have always considered them to be market leaders, and on the cutting edge of what retail clients are seeking.  I am eager to launch this new division, and work with the build-to-suit tenants on their construction management.  This will provide another layer of services that will continue the firm’s reputation of always providing excellence in all we do,” said Villalpando.

Mark is an Arizona native, and holds a Jurisdoctor degree from Harvard Law School, and a Bachelor of Science degree from the University of Arizona.

Mark can be reached at:  602-682-8190 email:

Master plan under development for extending the Loop

The Pima County Regional Flood Control District and Natural Resources, Parks and Recreation Department are developing a master plan that includes conceptual alignments of extensions of the Chuck Huckelberry Loop that follow secondary drainage systems of the major river system.

The planning is meant to guide further investment and development of the Loop to fully integrate the shared-use path as an active recreational element in the urban area. Specific plans for extending the Loop are under development for the following segments:

The master plan also will address tributary washes to the major river system, including Arroyo Chico, Arcadia, Alamo, Rosehill, Ventana, Pontatoc, Finger Rock, Pima and others. Priority planning will be given to any tributary washes where there are either partially developed greenways or planned greenways.

The development also aligns with goals set forth by the County’s Attractions and Tourism Department and Economic Development Office, which includes promoting Pima County and the Loop as a destination for those keen on outdoor recreation. On the economic development side, County officials also have found that the Loop has played a role in attracting employers to the region.

Born out of the disastrous floods of 1983, the Loop began taking shape when Pima County taxpayers started investing their Flood Control District dollars in building soil-cement banks along the metropolitan waterways to guard against future flooding. The County took the opportunity to build along those overbank areas a river park system that has become one of the most popular recreational facilities in the region.

Today, the Loop is a system of paved, shared-use paths and short segments of buffered bike lanes connecting the Rillito, Santa Cruz, and Pantano River Parks with the Julian Wash and Harrison Road Greenways. It extends through unincorporated Pima County, Marana, Oro Valley, Tucson, and South Tucson. The connections are the result of Pima County’s cooperative partnerships with these jurisdictions.