The 3rd Annual RED Awards.

On Feb. 26, AZRE hosted the 3rd Annual RED Awards Reception at the Ritz-Carlton Phoenix to recognize the biggest, best and most notable commercial real estate projects and transactions of 2007. AZRE held an open call for nominations and, combined, had more than 100 architects, contractors, developers and brokerage firms participate in the process. All of the winning projects and brokers are featured on the following pages.

AZRE would like to thank the member companies of the selection committee for their commitment to Arizona’s commercial real estate industry: Squire, Sanders & Dempsey, Community Bank of Arizona and Camelback Volkswagen Subaru.

Click on one of the following links to download a RED Award icon to promote your award RED Awards JPG | RED Awards GIF | RED Awards PNG

BEST HOSPITALITY PROJECT:
Hotel Indigo Scottsdale

Owner: Everest Holdings
Contractor: Howard S. Wright Constructors
Architect: DLR Group
Size: 77,000 SF
Location: 4415 N. Civic Center Plaza
City: Scottsdale
Completed: October 2007

The $5.4 million, 126-room Hotel Indigo was a full remodel of a 10-year old Hampton Inn. The remodel consisted of a full gut and redesign of all guestrooms and guest bathrooms, as well as the lobby, entry stairway, public restrooms and a completely redesigned and enlarged bar/lounge area with a newly constructed 1,400 SF exterior balcony. Additionally, a new fitness center was created along with murals and artwork that appears throughout the hotel, which will be changed on a regular basis in keeping with Hotel Indigo’s concept of “renewal.”
“It is projects like this, where the client entrusts us with a vision and has the drive to stay the course to see it realized to such a high standard, that make it a pleasure to do what we do.” — Ron Hecht, Project Manager for the DLR Group
The redevelopment of the hotel and sense of renewal that is captured within the project echoes throughout the Arizona commercial real estate market. One may find the same efforts in Downtown Phoenix’s urban form visions, first-time projects occurring in the West Valley, and down to Tucson’s Rio Nuevo project. The importance of renewal, and ability to take an existing structure and create something like the Hotel Indigo, is a great example of what the state strives for within the real estate industry.

BEST INDUSTRIAL PROJECT:
McShane Westside Business Park

Developer: McShane Corp./MetLife Real Estate Investments
Contractor: McShane Construction Corp.
Architect: Dickinson Architects
Size: 1.1 million SF, 4 Bldgs.
Location: NWC & NEC of 86th Ave. & Buckeye Rd.
City: Tolleson
Completed: December 2007

The 66-acre industrial park will serve the Phoenix Southwest submarket’s growing needs. McShane designed the park to provide maximum flexibility in order to accommodate a broad range of users in the marketplace. This goal was accomplished by creating a development comprised of four, single-story industrial facilities ranging from 164,210 SF to 535,213 SF with clear heights from 28 inches to 32 inches.
As all other great developments, the McShane Westside Business Park posed several difficult challenges within the development process. Initially, an existing development agreement between the land site seller and the city of Tolleson required amendment prior to the sale to the development team. Additionally, a major water line bifurcated the site, necessitating additional engineering and site improvements. Numerous planning and construction challenges were also identified and solved by working together with the Maricopa County Department of Transportation (MCDOT) regarding the improvements that were necessary to Buckeye Road.
The ability to coordinate with municipalities to create infrastructure where there was none, and overcome planning challenges to create a successful project, is a great example for future industrial/warehouse/distribution developments throughout the Valley.

BEST MEDICAL PROJECT:
Banner Gateway Medical Center

Developer: Banner Health System
Contractor: McCarthy
Architect: NBBJ Architecture
Size: 383,000 SF
Location: 1900 N. Higley Rd.
City: Gilbert
Completed: June 2007

Banner Gateway Medical Center, a $210 million, 383,000 SF, 174-bed full-service acute care facility, is the largest building in the town of Gilbert. The center includes a five-story patient bed tower with a three level diagnostic and treatment building with a stand-alone central plant. Typically, a project of this size takes 24 to 30 months, but was completed in a record 20 months due to the use of BIM technology and the incorporation of experience from Banner Estrella.
Lessons learned from the construction of Banner Estrella were applied to improve Banner Gateway, as well as Banner’s overall model for future new greenfield hospitals. Additionally, evidence-based design was applied to improve the overall quality of care for patients, such as improvements found in Banner Gateway’s lighting, sound reduction and state-of-the-art equipment.
Banner Gateway is among McCarthy’s largest beneficiaries of BIM due to its complex mechanical, plumbing, electrical and healthcare technologies. Using BIM technology in the development of this medical center increased the speed of delivery, reduced change orders and made on-site labor more productive. The result was reduced project costs, shortened construction schedules and overall increased quality. Off-site prefabrication was essential in completing this project within the 20-month schedule.
The use of BIM technology and incorporation of past experiences to create a better project is a great example for medical facilities throughout Arizona — especially when it results in shorter construction schedules to benefit a growing community.

BEST MIXED-USE PROJECT:
Rome Towers

Developer: Xomsa
Contractor: The Weitz Co.
Architect: PHArchitecture
Size: 323,000 SF
Location: 1760 E. Pecos Rd. & 2920 S. Rome St.
City: Gilbert
Completed: 3Q07

Composed of 100,000 SF of office space, 25,000 SF of retail and a 198,000 SF parking garage, Rome Towers is a mixed-use environment that provides a product that is user-friendly and architecturally interesting. The mixed-use portion is comprised of two, five-story Class A towers, each with four stories of office condo space, and a ground-level retail shopping center and plaza.
An interesting feature that differentiates this mixed-use project is the parking structure, which is integrated to provide “up-front” parking for its tenants — without the use of stairs or elevators. The towers are accessible by way of an architecturally dramatic exterior core, which utilizes skywalks to connect, level-to-level, with the project’s parking structure. At 193,000 SF, the parking structure’s five-story deck accommodates up to 568 vehicles, and features an exterior skin with EIFS accents and fifth floor metal shade canopies to provide covered parking on the uppermost level.

BEST MULTI-FAMILY PROJECT — Under 100K SF:
Portland Place, Phase I

Developer: Portland Group
Contractor: The Weitz Co.
Architect: DAVIS
Size: 96,000 SF
Location: 208 W. Portland St.
City: Phoenix
Completed: June 2007

Portland Place includes a six-story condominium tower, dual two-story brownstone buildings and plans for a below grade secured parking garage, with accommodations for up to 91 resident vehicles. The condo tower includes boardrooms, conference meeting rooms and 46 condominium units ranging from 950 to 2,550 SF. The tower’s rooftop (seventh floor deck) is transformed into an entertainment area with a pool, party deck and BBQ.
Due to the location of this project within a historic neighborhood, several historic and public concerns had to be addressed. The general contractor worked with the Roosevelt Historic District in order to accommodate requirements for acceptable building aesthetics. Several design adjustments were made, including collaborating with the developer and design team to find energy-efficient, low-E, double-pane, clear glass for the project. Additionally, building material selections and colors were reviewed with the city of Phoenix to ensure conformity to the historic district’s requirements and standards.
Other challenges included changes to the building’s initial height to address the Japanese Garden’s concerns about privacy. Extra gates and fencing were also added to address city, neighborhood and the garden’s concerns about security and screening construction activities and materials. In all, Portland Place took great strides to be a “good neighbor” from start to finish. The result is an affordable, aesthetically pleasing multi-family development to serve the Downtown community.

BEST MULTI-FAMILY PROJECT — Over 100K SF:
Scottsdale Waterfront Residences

Developer: OWR Development & Geoffrey H. Edmunds
Contractor: OWR Construction
Architect: Opus Architects & Engineers
Size: 500,000 SF
Location: 7175 E. Camelback Rd.
City: Scottsdale
Completed: 2Q07

Scottsdale Waterfront Residences has been said to be the highest profile high-rise luxury residential condominium project in the history of Scottsdale. As part of south Scottsdale revitalization efforts, the massive multi-family development has converted an aging shopping center in the heart of the city’s downtown into a waterfront development. Multiple projects, such as Reflections on the Canal and Safari Drive, now have a thriving market to work in.
The $240 million development encompasses two 13-story towers and 198 units, ranging from 1,100 to 5,00 SF. The project was virtually sold out prior to completion, at an average per unit price of more than $1.2 million. The project was designed to be an environment in which individuals could escape to luxury living, without having to compromise immediate access to their favorite restaurants, shops and galleries. The common areas and condominium homes also represent an exacting eye toward detail.
Scottsdale Waterfront Residences is a fantastic example of delivering a property at the right place, at the right time and with the right features to become one of Arizona’s new landmark developments.

BEST OFFICE PROJECT:
Hayden Ferry Lakeside Phase II

Developer: SunCor Development Co.
Contractor: McCarthy
Architect: DAVIS
Size: 300,000 SF
Location: 60 E. Rio Salado Pkwy.
City: Tempe
Completed: May 2007

Phase II — a $55 million, 12-story office tower with 156-car underground parking structure — maintains the quality of Hayden Ferry Lakeside’s campus, which is touted to be one of the highest in the Valley. Aside from the modern conveniences and upscale nautical-themed interior design, the project used several construction innovations on its exterior to further capture the impression of being under water.
Several challenges were overcome throughout construction by effective project management. The project was constructed on top of an existing and fully operational parking garage and office campus. The foundation of the office is supported by 100 caissons drilled 3 feet into the bedrock and through 10 to 15 feet of groundwater. During the timeframe of the project, there was a shortage of glazers, so the general contractor had to use skilled carpenters to expedite the curtain wall construction. Lastly, the city’s active use of Tempe Town Lake required safety vigilance to avert potential public hazards.
Hayden Ferry Lakeside has set high standards for future developments in the Tempe Town Lake area. Phase II is currently the tallest building in the city of Tempe, and the overall master-planned development is the first development along Tempe Town Lake.

BEST OFFICE CONDO PROJECT:
Plaza Leyenda

Developer: VP Commercial
Contractor: Palisade Construction
Architect: DPA Architects
Size: 71,000 SF
Location: 10781 N. Frank Lloyd Wright Blvd.
City: Scottsdale
Completed: April 2007

Comprised of 10 one and two-story buildings, totaling approximately 71,000 SF of office condominiums, Plaza Leyenda overcame several site planning obstacles — which limited the amount of land available for development. Challenges included a substantial cross slope inherent to the property, coordination with overhead power lines governed by APS, WAPA and DOE, and the incorporation of a NAOS 100’-0” scenic corridor along Shea Boulevard.
The project embodied innovation by viewing these obstacles as opportunity, thereby creating a dense campus atmosphere, interior courtyards, split level floor plans and panoramic views from interior office space — made possible by the sloped terrain.
The ability to capitalize upon a challenging site, and create a unique project, is what makes Plaza Leyenda a stand-out office condo project.

BEST REDEVELOPMENT PROJECT:
SkySong 1

Developer: Higgins Development Partners & The Plaza Companies
Contractor: Sundt Construction
Architect: DMJM Design
Size: 157,000 SF for Building 1
Location: 1475 N. Scottsdale Rd.
City: Scottsdale
Completed: August 2007

The redevelopment serves as an anchor and hub for technological innovations, as well as a portal for expanding global trade with a focus on collaboration and cooperation with Arizona State University. Located between Downtown Scottsdale and the ASU main campus in Tempe, SkySong acts as a catalyst for revitalization and further redevelopment of the area. Since SkySong was announced in 2005, private investments in new businesses and residential developments have sprung up around it.
SkySong 1 is a 157,000 SF, four-story structure. ASU will be one of the key tenants of Phase I, occupying approximately 80,000 SF with units focused in three areas: entrepreneurial support and development, interdisciplinary research programs in engineering-related fields, and education technology. Several premier ASU programs that facilitate the transfer of technology developed at ASU into the marketplace and develop new entrepreneurial talent from within the University and business community will be located at SkySong. Other tenants in SkySong 1 include Canon USA Inc., Finao Capital, Qwest Communications and American Solar.
At build-out, SkySong will have 1.2 million SF of office, research and retail space, a hotel/conference center and residential units. The project will position Greater Phoenix, Scottsdale and ASU as global leaders of the knowledge economy and substantially benefit the residents and businesses of southern Scottsdale. The center will be home to organizations and activities that commingle and stimulate new forms of global commerce, research, technology, art, education and economic development.

BEST RETAIL PROJECT:
Tempe Marketplace

Developer: Vestar Development Co.
Contractor: McCarthy/Adolfson & Peterson
Architect: Butler Design Group
Size: 1.3 million SF
Location: SWC of Loop 101 & Loop 202
City: Tempe
Completed: Fall 2007

Tempe Marketplace is a $350 million true lifestyle/entertainment destination that was created to fill a void in the market for a major retail, dining and entertainment district. However, while the location is considered the front-door to Tempe, the site itself was far from construction-ready when the developers first got their hands on it.
Vestar had to do a tremendous amount of environmental cleanup from a geotechnical standpoint. A large amount of construction debris had been dumped on the site amid the multiple landfills, and the developers had to gather up 100 separate parcels of land, owned by 50 different people, before they could even begin preparing the site. It took more than five years to assemble all the parcels to the 130-acre site. Clean up of the entire site required a procedure called DDC (deep dynamic compaction) before any construction could begin.
When construction finally began, there was no market in the area. Tempe Marketplace turned 130 “dirty” acres into a hip eat-drink-shop-entertainment center in Tempe, and allowed others to see development potential in the surrounding area.

BEST PUBLIC PROJECT:
Chaparral Water Treatment Facility

Developer: City of Scottsdale
Contractor: Archer-Western Contractors
Architect: Swaback Partners
Size: 71,000 SF on 29 acres
Location: Hayden & McDonald Dr.
City: Scottsdale
Completed: April 2007

This year, AZRE received several exemplary projects within the public sector. This award was created to recognize the efforts made by municipalities with the commercial real estate industry to create a better quality-of-life for residents through smart developments. The Chaparral Water Treatment Facility was selected this year for the project’s successful design of an otherwise unpleasing but necessary facility.
The Chaparral Water Treatment Facility was built to treat the city of Scottsdale’s Salt River Project allocation. The capacity is 30 million gallons per day, which is more than sufficient to meet projected demands south of the Arizona Canal. The design goal for the project was to combine art and architecture into one form and serve as a transition to an adjacent 20-acre park. Using shade and shadow as a design tool, the transition is softened by weathered, woven metal sculptures and artistic tensile canopies. In addition to these aesthetic elements, the facility was engineered to lesson its impact on the neighborhood and surpasses the city’s water quality goals.
This project is an example of a great product through private-public partnerships, which is an emerging trend within the commercial real estate community.

SUSTAINABILITY AWARD:
NAU Applied Research & Development Facility

Developer: Northern Arizona University
Contractor: Kitchell Contractors
Architect: Burns, Wald-Hopkins Architects
Size: 60,000 SF
Location: 1501 S. Knoles Dr., Bldg. 54
City: Flagstaff
Completed: September 2007

Designed as an environmentally sustainable facility, NAU ARD achieved the highest level of certification — LEED Platinum — from the U.S. Green Building Council. This facility is the only building in the U.S. to achieve this distinction at 7,000 feet above sea level.
Some of the “green” highlights for which NAU ARD is being recognized are that 91% of the construction waste produced was recycled; 57% of the materials used in the building were manufactured within 500 miles of the project, saving transportation costs and fuel consumption; the building generates 20% of its own power using renewable energy strategies, including photo voltaics; and uses approximately 60% less energy than a traditional office building — giving an expected savings of $1 million in utilities over a 20-year period.
“The Applied Research and Development Facility will stand as a testament to sustainability and green building for years to come. And if it can be done here, it can be done anywhere.” — Marty Olson, Project Director for Kitchell Contractors

For the winning Brokers of the Year, check out our
March/April 2008 issue of AZRE!