scottsdale financial center iii - transwestern · 2016-07-16 · tantn 4 scottsdale financial...

QUALIFICATION LETTER TRANSWESTERN 1

SCOTTSDALE FINANCIAL CENTER III

Transwestern Leasing Services Proposal

Mr. Michael J. YooVice President

J.P. Morgan Asset Management

Ms. Lynda S. CookSenior Vice President

Lowe Enterprises Real Estate

7272 EAST INDIAN SCHOOL ROAD

TRANSWESTERN SCOTTSDALE FINANCIAL CENTER III2


Jim Achen, Jr. Senior Vice President

William B. ZurekSenior Vice President

CONTENTS

4 QUALIFICATION LETTER

8 THE APPROACH

Current Market Trends Strategy Leasing Parameters

12 STACKING PLAN

14 FLOOR PLANS WITH TENANT NOTES

20 COMPETITIVE SET

26 AREA AMENITIES

30 BIOGRAPHIES

32 CASE STUDIES

This proposal and the projections herein are based on assumptions reflecting a certain set of conditions. However, some assumptions inevitably will not materialize and

unanticipated events and circumstances may occur; therefore, actual results achieved may vary from our estimates, and the variation may be material. Transwestern extends

no guarantees and makes no warranties, expressed or implied, with respect to this projection. In that regard, neither Transwestern nor any affiliate, employee, officer, director,

shareholder, or agent thereof, shall have any liability whatsoever arising from this projection or the actual results achieved.


Dear Michael and Lynda,

Thank you for the opportunity to present our capabilities to represent J.P. Morgan Asset

Management and Lowe Enterprises Real Estate Group to provide leasing services for

Scottsdale Financial Center III. We have an exceptional track record of being able to secure

new leases and renewals while deftly managing relocations and expansions in order to

maximize asset values.

Transwestern is providing its most senior and experienced marketing team, Bill Zurek and

Jim Achen, Jr. We will leverage our relationships, execute the marketing strategy, and

deliver the results demanded by ownership. Our team is directly supported by a seasoned

in-house marketing and administrative support team.

Transwestern is a unique company. Our difference begins with our interest in truly listening

to your goals and objectives, and understanding your business. We are relationship

driven, act as stewards for our clients, and customize solutions to meet your specific needs.

Entrepreneurship flows freely through our firm in a manner that encourages our people to

consistently seek new and unique ways of doing things. Ours is a high-energy workplace –

we enjoy our work, our team members and our clients from across the country.

This relationship-driven culture enables the leasing team to foster deep relationships within

the brokerage and tenant communities, translating to higher prospect traffic and better

communication of the deal components needed to finalize leases.

We provide an exceptional brand of office space marketing to ownership. By working closely

with asset management, property management and the entire brokerage community, we

have been able to outperform the market and secure leases with some of the highest credit-

rated tenants in the country. It is the result of going the extra mile for every prospect and

tenant, taking time to determine the key components of the requirement and aggressively

executing on those components.

The following is a brief description of recent office leases that we have secured on behalf of

various ownerships. We have included the contact information from each ownership group

and encourage you to contact your counterparts to see the difference we can make for you.

Mr. Michael J. YooVice President

J.P. Morgan Asset Management

Ms. Lynda S. CookSenior Vice President

Lowe Enterprises Real Estate

June 17, 2014


n Rural Metro – 90,506 sf (Scottsdale) Matt Lederer, Vice President Real Estate, Healthcare Realty. 615.269.8172 [email protected]

We leased the entire 90,506 sf 8465 N. Pima Road building to Rural Metro in the first quarter 2014 on behalf of Healthcare Realty.

n Arcadis USA – 28,468 sf (Phoenix) Mark Jacobs, Managing Director, Oaktree Capital Management. 213.830.6321 [email protected] Tim McChesney, Managing Director, Pearlmark Real Estate Partners. 312.499.1982 [email protected]

We procured a 28,468 sf new Lease with Arcadis, a national engineering firm, that jump started a leasing campaign that leased 240,000 sf in 27 transactions over 18 months with 22 different brokers. We executed the strategy on behalf of an affiliate of Oaktree Capital Management and Pearlmark Real Estate Partners and increased occupancy from 55% to 89%, 50% faster than projected.

n Republic Services of Florida – 21,598 sf (Scottsdale) Austin Cartlidge, Associate, C-III Capital Partners, LLC. 972.868.5206 [email protected]

At 7025 N Scottsdale Road we leased 21,598 sf to Republic Services with no downtime to the Landlord and $5.00 PSF in tenant improvements.

n Cognizant Technology Solutions – 130,581 sf (Phoenix) Kevin Fay, Vice President, Northridge Capital, LLC. 202.625.7890 [email protected]

In conjunction with our property management team, we leased 130,581 SF at Canyon Corporate Plaza II with no downtime and $12.00 PSF in tenant improvements to Cognizant Technology Solutions. Current expansion discussions would increase overall occupancy of the 301,000 sf, two-building multi-tenant asset to 95%.

n DuPont – 95,133 sf (Tempe) James Bolt, Senior Vice President, Lexington Realty Trust. Now with Interventure Advisors. 646.376.4688 [email protected]

We procured a 95,133 SF new lease with DuPont at 8555 South River Road in the ASU Research Park. This lease was signed with no downtime, and no tenant improvement allowance from the landlord.

n State Farm – 107,963 sf (Phoenix) Mark Jacobs, Managing Director, Oaktree Capital Management. 213.830.6321 [email protected] Tim McChesney, Managing Director, Pearlmark Real Estate Partners. 312.499.1982 [email protected]

In a collaborative team effort between Oaktree, Pearlmark and Transwestern, we were able to lease an entire building consisting of 107,963 sf at Two Gateway to State Farm.

Michael and Lynda, we are very interested in working for J.P. Morgan Asset Management

and Lowe Enterprises Real Estate Group. We are at your service to start immediately as your

leasing team.

Respectfully,

Transwestern

William B. ZurekSenior Vice President

Jim Achen, Jr.Senior Vice President

THE APPROACH TRANSWESTERN 7

TRENDS STRATEGY PARAMETERS

MARKET TRENDS AND IMPACT ON SFC III

The state of the Phoenix office market

mid-year 2014 consists of reasonably strong

demand, decreasing vacancy rates and

moderately increasing lease rates. Although

market fundamentals are not back to pre-

recession levels, positive gains are helping

the Phoenix office market return to normal

market conditions.

Scottsdale Financial Center III is located

in the Scottsdale south submarket which

is part of the Northeast Market. While the

overall Phoenix Metro market has a 19.3%

vacancy rate with a $ 21.00 average rate,

Scottsdale South at the time of our Q1 study

showed a vacancy rate of 13.7% with an

asking rate of $22.50. While absorption was

slightly negative in Scottsdale South in the

first quarter, this will change in the second

quarter as Fresnius just leased 15,317 rsf at

Scottsdale Financial Center II and Weebly

just leased 25,000 rsf at the Scottsdale

Galleria.

Overall, market fundamentals are improving

from a landlord perspective.

SCOTTSDALE FINANCIAL CENTER III


LEASING STRATEGY

As we understand, ownerships hold

period for this asset is approximately three

years and the goal is to best position the

property for sale in order to maximize

disposition value.

Considering the overall improving market

trends, the remaining moderate vacancy and

the labor intensive rollover schedule, we will

execute a leasing program that aggressively

showcases the remaining vacancy and

emphasizes the combined strength of

ownership while strategically and delicately

renewing the existing tenancy at market

rates (please see floor plans with detailed

tenant notes).

TO ACTUALIZE THIS PROGRAM

WE SUGGEST:

SPEC SUITES AND MARKET READY SPACE

For smaller tenants it is imperative to have

one or two immediate options available, and

for larger tenants (potentially the second

floor area), a substantially demo-ed area

painted white is a requirement.

BROKER OUTREACH

This is a central element of our marketing

plan, with special focus on the leasing of

the remaining building availability. We

will also position the building as the most

broker friendly building in the submarket.

Our outreach to the brokerage community

should contain the following key messages:

n The best ready to go (spec-suites) in

the submarket

n Great location, incredible walking

distance amenities. The amenity

map will be prominently utilized

and displayed.

n Lowe and JP Morgan ownership

– a message of stability and

broker appreciation

These key messages will be delivered

personally. Upon completion of several spec

suites, we will host “Up and Coming” broker

tours at the building and each broker will

receive a $75.00 AMEX gift card at the tour.

Consistent with the personalized promotion,

we will also host monthly dinners in

Downtown Scottsdale with the more senior

tenant rep brokers in the market. We will

host approximately four brokers per dinner

per month beginning in July.

TERRANEA PROMOTION

Utilizing the Lowe Enterprises resort

of Terranea can be an exceptional

differentiator; we recommend a promotion

that for each new lease completed, the

cooperating broker will receive a two night

stay at Terranea (please see Terranea

promo piece).

ELECTRONIC MEDIA

n Building website built and maintained

by Transwestern.

n Bi-monthly e-mail blasts emphasizing


building improvements, spec suites,

Terranea, and completed leases.

LEASING PARAMETERS

The existing 25,942 sf of available space

in conjunction with approximately 57,435

rsf of rollover in the next two years creates

an opportunity for the Landlord, property

manager and leasing team to structure a

staggered rollover schedule with attractive

credit tenants in order to achieve the highest

value at exit.

Our initial recommended rental rate is $25.00

with $0.50 annual increases and up to 1

month of rent abatement per year of lease

term outside of the lease term. The rent roll

will be structured with three to ten year lease

terms, creating a staggered rollover schedule

in order to achieve the highest value at exit.

We will continuously monitor area lease rates

to optimize opportunities to increase both

lease rates and annual increases.

BROKERAGE COMPENSATION AND

COOPERATING BROKERAGE

Broker compensation is a key marketing

decision that affects a property’s ability

to compete for prospective tenants.

Promotional efforts directed at the

brokerage community begin with the

commission policy.

We suggest the following leasing

commission structure:

n For all leasing deals involving a co-op

broker, a commission equal to seven-

and-one-half percent (7.5%) of the gross

aggregate value of the first 5 years of the

lease is market standard, with five percent

(5%) to the procuring broker and two-

and-one-half percent (2.5%) to the listing

agent. For years 6-10, the commissions

are currently 50% of the schedule for

years 1-5.

n For all direct leasing deals not involving a

co-op broker, Transwestern shall be paid a

commission equal to five percent (5%) of

the gross aggregate value of the lease for

the first five years of the lease term, and

50% of that for years 6-10.

n Given current market conditions, offering

a broker bonus equal to $1.00 per

rentable square foot, on a case-by-case

basis, should be considered. The lease

term must be of three years or longer

to qualify. The bonus program is not

permanent; it can be withdrawn at

any time.

Commissions shall be earned upon full

execution of a lease between the parties,

and shall be payable one-half upon

execution of the lease and one-half upon

occupancy of the space by the tenant.


EBLAST PROMOTION MOCK-UP


STACKING PLAN90.18% OCCUPANCY

The Colony GroupSuite 50015,422 RSF10/31/17

Cornerstone AdvisorsSuite 40011,584 RSF9/30/17

DatalinkSuite 4052,551 RSF8/31/15

Nestle PurinaSuite 3009,890 RSF2/26/16

VacantSuite 3052,437 RSF

EcolabSuite 3108,983 RSF11/30/17

VacantSuite 200764 RSF

Van NormanSuite 2032,231 RSF7/31/14


Med JamesSuite 2031,264 RSF4/1/14

SynygySuite 2054,109 RSF6/16/16


ERMSuite 1005,482 RSF6/30/14

HyattSuite 1013,880 RSF12/31/16

Wealth PlanSuite 1033,068 RSF10/31/18

USA AdventuresSuite 1043,027 RSF6/30/18

FLOOR 5

29,662 SFVACANT

0 RSF

FLOOR 4

30,446 SFVACANT

1,326 RSF

FLOOR 3

37,947 SFVACANT

2,437 RSF

FLOOR 2

35,333 RFVACANT

6,209 RSF

FLOOR 4

32,303 SFVACANT

4,968 RSF

2014 2015 2016 2017



Regus Group - Scottsdale IVSuite 54014,240 RSF11/30/24

DatalinkSuite 4052,551 RSF8/31/15

Career BuilderSuite 4124,949 RSF3/31/19


Omega Legal SystemsSuite 48010,036 RSF9/30/15

EcolabSuite 3108,983 RSF11/30/17

EminessSuite 3504,890 RSF8/31/15

Jorden BischollSuite 3604,756 RSF7/31/16

Crest InsuranceSuite 3754,554 RSF10/31/19

Rowland CarmichaelSuite 2123,356 RSF6/30/18

Bank of the WestSuite 2103,947 RSF10/31/18


DPASuite 2144,170 RSF7/31/16


ComriskSuite 2203,838 RSF9/30/14


ThePacific CafeSuite 1052,137 RSF10/31/14

Weiss ReinerSuite 1101,166 RSF2/29/16

Adhesive, LLCSuite 10212,235 RSF12/31/14

Bisnett InSuite 1111,372 RSF12/31/14

2017 2018 2019 2024 VACANT

LETTER TRANSWESTERN 13


FLOOR PLANS

RENEWALS TO COMPLETE

SUITE NUMBER TENANT RSF LEASE EXPIRATION DATE/COMMENT

Suite 110 Weiss-Reiner Law, PLC & Cotto Law

1,166 rsf 2/29/16; lease renewal discussions to commence February, 2015.

Suite 214 DPA Architects 4,170 rsf 6/30/16; lease renewal discussions to commence April, 2015.Suite 220 Comrisk Specialty Products 3,838 rsf 9/30/14; lease renewal discussion to start immediately with Comrisk if they

haven’t already.Suite 375 Crest Insurance 4,554 rsf 10/3/19; Crest Insurance would like to expand by 1,500 to 2,000 rsf. May be

able to use expansion to extend existing space term.Suite 300 Nestle / Purina 9,890 rsf 2/29/16; lease renewal discussions should start immediately.Suite 350 Eminess Technologies, Inc 4,890 rsf 8/31/15; lease renewal discussions to commence July, 2014.Suite 360 Jorden Bischoff & Hiser 4,756 rsf 7/31/16; lease renewal discussions to commence February, 2015.Suite 400 Cornerstone Advisors, Inc 11,584 rsf 9/30/17; Cornerstone has expressed an interest in additional space. Solving

expansion need may include additional term on Suite 400.Suite 405 Datalink 2,551 rsf 8/31/15; lease renewal discussions should start immediately.Suite 480 Omega Legal 10,036 rsf 9/30/15; Renewal discussions to start immediately. Possible space reduc-

tion that Cornerstone could expand into. Could lease to early extension of Cornerstone.

AVAILABLE TO LEASE

SUITE NUMBER RSF COMMENT

Suite 100 6,854 rsf Prominent main lobby exposure.Suite 106 4,968 rsf Courtyard view.Suite 205 8,006 rsf Includes 200 +/- sf of recaptured corridor. Requires relocating Med James with property or termination of month to

month tenancy.Suite 208 1,144 rsf Spec Suite.Suite 213 1,207 rsf Potential Building Conference room location. Is there a space with a balcony for the building conference room or

ground level with cool outside patio area?Suite 305 2,437 rsf Excellent proximity to elevator lobby.Suite 415 1,326 rsf 3 private offices.

FLOOR PLANS TRANSWESTERN 15

FIRST FLOOR

Courtyard view

10/31/14

Lease renewal discussions to commence February, 2015.

2/29/16

12/31/14

Not Option Right. Attempt to relocate

with property to create larger marketable in

main lobby.

Leadership in Energy and Environmental Design to downsize. Prominent main lobby exposure.6,854

6/30/18

10/31/18

12/13/14

12/13/16


SECOND FLOOR9/30/14

Lease renewal discussion to start immediately with Comrisk if they

haven’t already.

7/31/16

Lease renewal discussions to

commenceApril, 2015.

Potential building conference room location.

Is there a space with a balcony for the building

conference room orground level with cool outside patio area?

Relocate

Relocate

Assemble suites 200, 204, 206, 203, and 305 to create larger contiguous space (10,000+ RFS) with prominent building signage.

4/1/14

6/16/16

7/31/14

10/31/186/30/18


THIRD FLOOR

8/31/15

11/31/17

2/26/16

10/31/19

7/31/16

Crest Insurance wouldlike to expand by1,500 to 2,000 rsf.May be able to use

expansion to extendexisting space term.

Lease renewal discussionsshould start immediately.

Lease renewal discussionsto commence July, 2014.

Excellent proximityto elevator lobby.

Lease renewal discussionsto commence February, 2015.


FOURTH FLOOR

8/31/15

9/30/15

9/30/17

3/31/19

Lease renewaldiscussions shouldstart immediately.

3 private offices.

Renewal discussions tostart immediately. Possible

space reduction thatCornerstone could expandinto. Could lease to earlyextension of Cornerstone.

Cornerstone has expressedan interest in additional

space. Solving expansionneed may include additional

term on Suite 400.


FIFTH FLOOR

10/31/17

11/30/24


COMPETITIVE SET

SCOTTSDALE FINANCIAL CENTER I

SCOTTSDALE FINANCIAL CENTER II

LINCOLN TOWNE CENTRE SOUTH

LINCOLN TOWNE CENTRE NORTH

GALLERIA CORPORATE CENTER

SCOTTSDALE FASHION SQUARE BUILDING

CAMELBACK TOWER

PROPERTY ADDRESS 4110 N Scottsdale Rd Scottsdale

4141 N Scottsdale Rd Scottsdale

4150 N Drinkwater Blvd Scottsdale



7150 E Camelback RdScottsdale

6900 E Camelback RdScottsdal

PROPERTY NUMBER #1 #2 #3 #4 #5 #6 #7

YEAR BUILT/REHAB 1982 1989 / 2012 1999 1999 1991 / 2001 1987 1974 / 1997

RBA 106,995 150,892 115,000 115,000 401,903 120,000 125,240

NO. FLOORS/BUILDINGS 3 / 1 3 / 1 5 / 1 5 / 1 3 / 1 5 / 1 11 / 1

SF AVAILABLE 20,605 15,713 5,480 7,799 14,847 32,585 24,094

LARGEST CONTIGUOUS SF 5,626 10,229 2,757 4,047 11,422 12,803 10,611

% LEASED 80.7% 89.6% 95.2% 93.2% 96.3% 72.5% 80.8%

LEASING COMPANY C&W C&W C&W C&W CBRE C&W Newmark Grubb Knight

ASKING RENTAL RATE $25.00 $24.50 $25.00 $25.00 $28.50 $24.50 $24.00

LAST SALE DATE/PRICE Aug 2008 / $19M ($181/SF)

Dec 2011 / $21.7M ($144/SF)

Mar 2012 / $17.1M $149/SF)

Mar 2012 / $17.1M ($149/SF)

Sept 2013 / $49.3M ($123/SF)

N/A Aug 2011 / $10M($80/SF)

AMENITIES Underground parking, banking, corner lot, Energy Star labeled

Underground parking, on-site deli/restaurant,

corner lot

Balconies, corner lot, hotel, restaurant, parking garage

Balconies, corner lot, hotel, restaurant, parking

garage

On-site café, corner lot, atrium,

Energy Star labeled, attached covered garage

Located on regional mall property, underground

parking, corner lot, barber salon

Underground parking, conferencing facility, convenience store,

restaurant

PARKING RATIO 4.7/1000 4/1000 4/1000 4/1000 5/1000 3/1000 1/1000

COMPETITIVE SET TRANSWESTERN 21

SCOTTSDALE FINANCIAL CENTER I

SCOTTSDALE FINANCIAL CENTER II

LINCOLN TOWNE CENTRE SOUTH

LINCOLN TOWNE CENTRE NORTH

GALLERIA CORPORATE CENTER

SCOTTSDALE FASHION SQUARE BUILDING

CAMELBACK TOWER

PROPERTY ADDRESS 4110 N Scottsdale Rd Scottsdale





7150 E Camelback RdScottsdale

6900 E Camelback RdScottsdal

PROPERTY NUMBER #1 #2 #3 #4 #5 #6 #7

YEAR BUILT/REHAB 1982 1989 / 2012 1999 1999 1991 / 2001 1987 1974 / 1997

RBA 106,995 150,892 115,000 115,000 401,903 120,000 125,240

NO. FLOORS/BUILDINGS 3 / 1 3 / 1 5 / 1 5 / 1 3 / 1 5 / 1 11 / 1

SF AVAILABLE 20,605 15,713 5,480 7,799 14,847 32,585 24,094


% LEASED 80.7% 89.6% 95.2% 93.2% 96.3% 72.5% 80.8%

LEASING COMPANY C&W C&W C&W C&W CBRE C&W Newmark Grubb Knight


LAST SALE DATE/PRICE Aug 2008 / $19M ($181/SF)

Dec 2011 / $21.7M ($144/SF)

Mar 2012 / $17.1M $149/SF)

Mar 2012 / $17.1M ($149/SF)

Sept 2013 / $49.3M ($123/SF)

N/A Aug 2011 / $10M($80/SF)

AMENITIES Underground parking, banking, corner lot, Energy Star labeled

Underground parking, on-site deli/restaurant,

corner lot

Balconies, corner lot, hotel, restaurant, parking garage

Balconies, corner lot, hotel, restaurant, parking

garage

On-site café, corner lot, atrium,

Energy Star labeled, attached covered garage

Located on regional mall property, underground

parking, corner lot, barber salon

Underground parking, conferencing facility, convenience store,

restaurant

PARKING RATIO 4.7/1000 4/1000 4/1000 4/1000 5/1000 3/1000 1/1000


COMPETITIVE SET CONTINUED

CAMELBACK SQUARE PORTALES CORPORATE CENTER

THE SCOTTSDALE FORUM SCOTTSDALE SPECTRUM 7025 BUILDING SCOTTSDALE CENTRE GAINEY CENTER II

PROPERTY ADDRESS 6991 E Camelback RdScottsdale

4800 & 4900 N Scottsdale RdScottsdale

6263 N Scottsdale RdScottsdale

6710, 6720, 6730 N Scottsdale Rd, Scottsdale




PROPERTY NUMBER #8 #9 #10 #11 #12 #13 #14

YEAR BUILT/REHAB 1978 / 1988 1999 / 2004 1991 1996 / 1998 2002 1984 2000

RBA 172,690 448,575 223,000 254,922 91,148 163,312 146,770

NO. FLOORS/BUILDINGS 3 / 1 6 / 2 3 / 1 2 & 3 / 3 3 / 1 2 / 1 3 / 1

SF AVAILABLE 64,567 39,193 47,676 56,662 8,365 35,230 55,667


% LEASED 62.6% 91.3% 78.6% 77.8% 90.8% 78.4% 62.1%

LEASING COMPANY Lee & Assoc Forum Capital C&W Lee & Assoc TW CBRE CBRE


LAST SALE DATE/PRICE May 2011 / $19M($110/SF)

Mar 2008 / 172.8M($383/SF)

July 2007 / $40M($179/SF)

N/A Nov 2013 / $21.5M(235/SF)

July 2011 / $20.8M($127/SF)

Jan 2007 / $50.6M($345/SF)

AMENITIES Corner not, conferencing facility, restaurant,

covered parking garage

LEED certified, balconies, conferencing facility, fitness

center, hotel, Energy Star labeled, restaurant, underground parking

Courtyard, Energy Star labeled, restaurant,

underground parking

Balconies, conferencing facility, fitness center,

restaurant

Underground parking, newer construction,

balconies

Balconies, courtyard, water feature

LEED certified, balconies, corner lot, Energy Star labeled,


PARKING RATIO 4/1000 4/1000 4/1000 4/1000 4/1000 4/1000 3.6/1000


CAMELBACK SQUARE PORTALES CORPORATE CENTER

THE SCOTTSDALE FORUM SCOTTSDALE SPECTRUM 7025 BUILDING SCOTTSDALE CENTRE GAINEY CENTER II

PROPERTY ADDRESS 6991 E Camelback RdScottsdale

4800 & 4900 N Scottsdale RdScottsdale


6710, 6720, 6730 N Scottsdale Rd, Scottsdale




PROPERTY NUMBER #8 #9 #10 #11 #12 #13 #14

YEAR BUILT/REHAB 1978 / 1988 1999 / 2004 1991 1996 / 1998 2002 1984 2000

RBA 172,690 448,575 223,000 254,922 91,148 163,312 146,770

NO. FLOORS/BUILDINGS 3 / 1 6 / 2 3 / 1 2 & 3 / 3 3 / 1 2 / 1 3 / 1

SF AVAILABLE 64,567 39,193 47,676 56,662 8,365 35,230 55,667


% LEASED 62.6% 91.3% 78.6% 77.8% 90.8% 78.4% 62.1%

LEASING COMPANY Lee & Assoc Forum Capital C&W Lee & Assoc TW CBRE CBRE


LAST SALE DATE/PRICE May 2011 / $19M($110/SF)

Mar 2008 / 172.8M($383/SF)

July 2007 / $40M($179/SF)

N/A Nov 2013 / $21.5M(235/SF)

July 2011 / $20.8M($127/SF)

Jan 2007 / $50.6M($345/SF)

AMENITIES Corner not, conferencing facility, restaurant,


LEED certified, balconies, conferencing facility, fitness

center, hotel, Energy Star labeled, restaurant, underground parking

Courtyard, Energy Star labeled, restaurant,

underground parking

Balconies, conferencing facility, fitness center,

restaurant

Underground parking, newer construction,

balconies

Balconies, courtyard, water feature

LEED certified, balconies, corner lot, Energy Star labeled,


PARKING RATIO 4/1000 4/1000 4/1000 4/1000 4/1000 4/1000 3.6/1000


COMPETITIVE SET CONTINUED

GAINEY CENTER I GAINEY RANCH CORPORATE CENTER

SKYSONG1 SKYSONG2 SKYSONG3

PROPERTY ADDRESS 8601 N Scottsdale RdScottsdale

8777-8877 N Gainey Ranch Dr, Scottsdale




PROPERTY NUMBER #15 #16 #17 #18 #19

YEAR BUILT/REHAB 1999 1989 / 1991 / 1997 2007 2008 Under Construction

RBA 140,756 584,278 144,832 144,813 145,000

NO. FLOORS/BUILDINGS 3 / 1 2 & 3 / 3 4 / 1 4 / 1 4 / 1

SF AVAILABLE 11,809 12,257 13,290 30,536 54,015

LARGEST CONTIGUOUS SF 9,179 6,256 13,290 11,948 54,015

% LEASED 91.6% 97.9% 90.8% 78.9% 62.7%

LEASING COMPANY Cassidy Turley Lee & Assoc Cassidy Turley SUBLEASE Lee & Assoc Lee & Assoc

ASKING RENTAL RATE $24.50 $24.50 $23.00 $25.00 $27.00

LAST SALE DATE/PRICE Apr 2007 / $52M ($369/SF)

N/A Aug 2013 / $35.8M ($247/SF)

Aug 2013 / $33.9M ($234/SF)

N/A

AMENITIES LEED certified, balconies, corner lot, Energy Star labeled,


Underground parking, corner lot

LEED certified, Energy Star labeled, newer

construction, corner lot, attached covered garage



LEED certified, Energy Star labeled, new construction,

corner lot, attached covered garage

PARKING RATIO 4/1000 4/1000 4/1000 4/1000 4/1000


GAINEY CENTER I GAINEY RANCH CORPORATE CENTER

SKYSONG1 SKYSONG2 SKYSONG3

PROPERTY ADDRESS 8601 N Scottsdale RdScottsdale

8777-8877 N Gainey Ranch Dr, Scottsdale




PROPERTY NUMBER #15 #16 #17 #18 #19

YEAR BUILT/REHAB 1999 1989 / 1991 / 1997 2007 2008 Under Construction

RBA 140,756 584,278 144,832 144,813 145,000

NO. FLOORS/BUILDINGS 3 / 1 2 & 3 / 3 4 / 1 4 / 1 4 / 1

SF AVAILABLE 11,809 12,257 13,290 30,536 54,015

LARGEST CONTIGUOUS SF 9,179 6,256 13,290 11,948 54,015

% LEASED 91.6% 97.9% 90.8% 78.9% 62.7%

LEASING COMPANY Cassidy Turley Lee & Assoc Cassidy Turley SUBLEASE Lee & Assoc Lee & Assoc

ASKING RENTAL RATE $24.50 $24.50 $23.00 $25.00 $27.00

LAST SALE DATE/PRICE Apr 2007 / $52M ($369/SF)

N/A Aug 2013 / $35.8M ($247/SF)

Aug 2013 / $33.9M ($234/SF)

N/A

AMENITIES LEED certified, balconies, corner lot, Energy Star labeled,


Underground parking, corner lot





LEED certified, Energy Star labeled, new construction,

corner lot, attached covered garage

PARKING RATIO 4/1000 4/1000 4/1000 4/1000 4/1000


SCOTTSDALE AMENITIES1. E7 3 Palms2. E2 Bespoke Inn, Café & Bicycles3. E7 Best Western Papago Inn and Resort4. B3 BEST WESTERN PLUS Sundial5. A7 The Boulders, A Waldorf Astora Resort6. E7 The Canyon Suites at The Phoenician7. A7 Carefree Resort & Conference Center8. A3 Chaparral Suites Scottsdale9. F4 Comfort Suites Old Town Scottsdale10. C9 CopperWynd Resort and Club11. D8 Country Inn & Suites By Carlson12. D9 Courtyard by Marriott Scottsdale at Mayo Clinic13. F3 Courtyard by Marriott Scottsdale Old Town14. E8 Courtyard by Marriott Scottsdale Salt River15. A3 Days Hotel Scottsdale16. D7 Days Inn & Suites Scottsdale17. E7 DoubleTree Resort by Hilton Paradise Valley-Scottsdale18. E1 El Dorado Scottsdale19. C7 Extended Stay America Scottsdale20. D7 Extended Stay Deluxe Phoenix-Scottsdale21. C7 Fairmont Scottsdale Princess22. A3 FireSky Resort & Spa – A Kimpton Hotel23. B8 Four Seasons Resort Scottsdale at Troon North24. D7 Gainey Suites Hotel25. D8 Hampton Inn & Suites Scottsdale Riverwalk26. D7 Hampton Inn Scottsdale at Shea27. E6 The Hermosa Inn, a boutique hideaway28. C7 Hilton Garden Inn Scottsdale North Perimeter Center29. D3 Hilton Garden Inn Scottsdale Old Town30. D7 Hilton Scottsdale Resort & Villas31. F4 Holiday Inn Express Hotel & Suites Old Town32. D7 Holiday Inn Express Scottsdale North33. E2 Homestead Studio Suites Hotel34. D7 Homewood Suites by Hilton Scottsdale35. E7 Hospitality Suite Resort – Scottsdale36. C4 Hotel Indigo Scottsdale

MAYO BLVD.

LEGEND TRAIL

PKW

Y.

P

IEST

EWA

PEAK

FW

Y.

DAISY MOUNTAIN DR.

SKY HARBORINT‘L AIRPORT

NORTHMOUNTAIN

PARK

PIESTEWAPEAK PARK

FALCON FIELDMUNICIPAL

AIRPORT

PHOENIX-MESA GATEWAY AIRPORT

SCOTTSDALEAIRPORT

CAREFREE AIRPORT

DEER VALLEYAIRPORT

CAMELBACK MOUNTAIN

US AIRWAYSCENTER

ARIZONASCIENCE CENTER

CHASEFIELD

PUEBLOGRANDEMUSEUM

TALIESINWEST

COMMEMORATIVE AIR FORCE ARIZONA WING

AVIATION MUSEUM

PINNACLEPEAK PARK

HEARDMUSEUMNORTH

WESTWORLD

COSANTI

MUSICAL INSTRUMENT

MUSEUM

McCORMICK STILLMANRAILROAD PARK

PHOENIX ARTMUSEUM

HEARDMUSEUM

SUN DEVILSTADIUM

SALT RIVER FIELDS AT TALKING STICK

TEMPE TOWN LAKE

PHOENIXZOO

DESERTBOTANICAL

GARDEN

PAPAGOPARK

TONTO NATIONAL

FOREST

CAVE CREEK REGIONAL PARK

SOUTH MOUNTAIN

PARK

McDOWELL MOUNTAIN REGIONAL PARK

REACH 11 RECREATION AREA


SCOTTSDALESPORTS COMPLEX

Tempe Mesa

Paradise Valley

Fountain Hills

Carefree

Cave Creek

McDOWELL SONORAN

PRESERVE

SALT RIVER PIMA-MARICOPAINDIAN COMMUNITY

FORT McDOWELL YAVAPAI NATIONScottsdale

Phoenix

SOUTHERN AVE.

BASELINE RD.

MAIN ST.APACHE RD.

UNIVERSITY DR.

CAMELBACK RD.

THOMAS RD.

VAN BUREN ST.

WASHINGTON ST.

GRAND AVE.

McDOWELL RD. McDOWELL RD.

McDONALD RD.

INDIAN BEND RD.

THUNDERBIRD RD.

DOVE VALLEY RD.RANCHO

PALOMA

DR.

STAGECOACH PASS

HAPPY VALLEY RD.

JOMAX RD.JOMAX RD.JOMAX RD.

LONE MOUNTAIN RD. LONE MOUNTAIN RD.

DIXILETA DR.DIXILETA DR.

RIO VERDE DR.

ORE

ST R

D.

DYNAMITE BLVD.

PINNACLE PEAK RD.

VIA LINDA

BELL RD.

CACTUS RD.

SHEA BLVD.

MOUNTAIN VIEW RD.VIA LINDADOUBLETREE RANCH RD.

CHAPARRAL RD.

INDIAN SCHOOL RD.INDIAN SCHOOL RD.

BROWN RD.

McKELLIPS RD.

THOMAS RD.

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GREENWAY RD. GREENWAY RD.

BELL RD.

UNION HILLS DR.

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Scottsdale Area

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Light Rail

© 2014 SCOTTSDALE CONVENTION & VISITORS BUREAU

Trolley Stop RANCHO VISTA DR.

SOLERIBRIDGE

CIVIC CENTERLIBRARY

SCOTTSDALECITY HALL

BRO

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HOTEL & RESORTS

SCOTTSDALE AMENITIES TRANSWESTERN 27

MAYO BLVD.

LEGEND TRAIL

PKW

Y.

P

IEST

EWA

PEAK

FW

Y.

DAISY MOUNTAIN DR.

SKY HARBORINT‘L AIRPORT

NORTHMOUNTAIN

PARK

PIESTEWAPEAK PARK

FALCON FIELDMUNICIPAL

AIRPORT

PHOENIX-MESA GATEWAY AIRPORT

SCOTTSDALEAIRPORT

CAREFREE AIRPORT

DEER VALLEYAIRPORT

CAMELBACK MOUNTAIN

US AIRWAYSCENTER

ARIZONASCIENCE CENTER

CHASEFIELD

PUEBLOGRANDEMUSEUM

TALIESINWEST

COMMEMORATIVE AIR FORCE ARIZONA WING

AVIATION MUSEUM

PINNACLEPEAK PARK

HEARDMUSEUMNORTH

WESTWORLD

COSANTI

MUSICAL INSTRUMENT

MUSEUM

McCORMICK STILLMANRAILROAD PARK

PHOENIX ARTMUSEUM

HEARDMUSEUM

SUN DEVILSTADIUM

SALT RIVER FIELDS AT TALKING STICK

TEMPE TOWN LAKE

PHOENIXZOO

DESERTBOTANICAL

GARDEN

PAPAGOPARK

TONTO NATIONAL

FOREST

CAVE CREEK REGIONAL PARK

SOUTH MOUNTAIN

PARK

McDOWELL MOUNTAIN REGIONAL PARK



SCOTTSDALESPORTS COMPLEX

Tempe Mesa

Paradise Valley

Fountain Hills

Carefree

Cave Creek

McDOWELL SONORAN

PRESERVE

SALT RIVER PIMA-MARICOPAINDIAN COMMUNITY

FORT McDOWELL YAVAPAI NATIONScottsdale

Phoenix

SOUTHERN AVE.

BASELINE RD.

MAIN ST.APACHE RD.

UNIVERSITY DR.

CAMELBACK RD.

THOMAS RD.

VAN BUREN ST.

WASHINGTON ST.GRAND AVE.

McDOWELL RD. McDOWELL RD.

McDONALD RD.

INDIAN BEND RD.

THUNDERBIRD RD.

DOVE VALLEY RD.RANCHO

PALOMA

DR.

STAGECOACH PASS

HAPPY VALLEY RD.

JOMAX RD.JOMAX RD.JOMAX RD.

LONE MOUNTAIN RD. LONE MOUNTAIN RD.

DIXILETA DR.DIXILETA DR.

RIO VERDE DR.

ORE

ST R

D.

DYNAMITE BLVD.

PINNACLE PEAK RD.

VIA LINDA

BELL RD.

CACTUS RD.

SHEA BLVD.

MOUNTAIN VIEW RD.VIA LINDADOUBLETREE RANCH RD.

CHAPARRAL RD.

INDIAN SCHOOL RD.INDIAN SCHOOL RD.

BROWN RD.

McKELLIPS RD.

THOMAS RD.

VAL

VIST

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R.

GRE

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RD

.

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ST.

40TH

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ST.

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.

19TH

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.

35TH

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BETHANY HOME RD.

PEORIA AVE.

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NORTHERN AVE.

CACTUS RD.

THUNDERBIRD RD.

GREENWAY RD. GREENWAY RD.

BELL RD.

UNION HILLS DR.

DEER VALLEY RD.

HAPPY VALLEY RD.

CAVE

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D.40

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T.

27TH

AVE

.

32N

D S

T.

24TH

ST.

16TH

ST.

7TH

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7TH

AVE

.

19TH

AVE

.

33RD

AVE

.

27TH

AVE

.

GUADALUPE RD.

CLOUD RD.

CAREFREE HWY.

JOY RANCH RD.

DESERT HILLS DR.

ELLIOT RD.

BROADWAY RD.

CAVE

CRE

EK R

D.

McD

OW

ELL

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A FW

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KWY.

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ST.

101

101

RED MOUNTAIN FWY.

Scottsdale Area

Downtown Scottsdale(see map at left)

Light Rail

© 2014 SCOTTSDALE CONVENTION & VISITORS BUREAU

Trolley Stop RANCHO VISTA DR.

SOLERIBRIDGE

CIVIC CENTERLIBRARY

SCOTTSDALECITY HALL

BRO

WN

AVE

.

PARK

SCOTTSDALE

5 6 7 8 94321

F

E

D

C

B

A

SCOTTSDALE AREADOWNTOWN SCOTTSDALE

8

4

13

29

31

33

36

37

39

22

71

40

48

54

60

15

9

2

18

38

70

7

6

5

3 1

23

24

14

26

1727

28

30

3234

35

46

4955

51

61

52

58

64

42

47

16

56

68

62

5972

41

43

67

12

74

50

57

69

63

53

73

66

19

20

21

65

11 4544

10

25

HOTEL & RESORTS 37. D1 Hotel Valley Ho38. D2 Howard Johnson Scottsdale39. C4 Hyatt House Scottsdale/Old Town40. D3 Hyatt Place Scottsdale/Old Town41. D7 Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch42. D9 Inn at Eagle Mountain43. D7 JW Marriott Camelback Inn Resort & Spa44. D8 La Quinta Inn and Suites Scottsdale45. D8 Marriott TownePlace Suites Scottsdale46. D7 Millennium Scottsdale Resort & Villas47. D7 Montelucia Resort & Spa48. B1 Motel 6 Scottsdale49. E7 The Phoenician50. D9 Radisson Fort McDowell Resort51. C7 Residence Inn by Marriott Scottsdale North52. D7 Residence Inn by Marriott Scottsdale/ Paradise Valley53. E7 Royal Palms Resort and Spa54. D3 the Saguaro55. D7 Sanctuary on Camelback Mountain Resort and Spa56. E7 Scottsdale Camelback Resort57. D7 Scottsdale Cottonwoods Resort & Suites58. C7 Scottsdale Links Resort59. C7 Scottsdale Marriott at McDowell Mountains60. D3 Scottsdale Marriott Suites Old Town61. E7 Scottsdale Park Suites62. D7 The Scottsdale Plaza Resort63. D7 Scottsdale Resort & Athletic Club64. D7 Scottsdale Resort & Conference Center65. C7 Scottsdale Thunderbird Suites66. C7 Scottsdale Villa Mirage67. C7 Sheraton Desert Oasis68. D7 SmokeTree Resort & Bungalows69. D8 Talking Stick Resort70. C2 Travelodge Scottsdale 5th Avenue71. B3 W Scottsdale Hotel & Residences72. C7 The Westin Kierland Resort & Spa73. C7 Wingate by Wyndham Scottsdale74. C7 Zona Hotel & Suites Scottsdale


Plan on meeting success.

ACCOMMODATIONS243 suites, including 2 Presidential Boardroom Suites • All suites have 2 distinctive living areas • 32” flat-screen LCD HD televisions • Plug-In Marriott control panel • High-speed wireless internet service • Wet bar, refrigerator and coffeemaker • Individual climate control • Alarm clock • Cable movie channels • In-room pay movies • 2 telephones with voice mail and data ports •

iHome docking stations

RESTAURANTS & LOUNGES3rd Avenue Grill: serving breakfast, lunch anddinner with a Southwestern flair.Starbuck’s Coffee Bar: serving breakfast pastries and gourmet coffees from around the world.

RECREATION & LEISUREOutdoor swimming pool • Fitness center featuring state-of- the-art treadmills and elliptical machines all equipped with individual TV

monitors • Golf and tennis nearby

ATTRACTIONSFashion Square Mall • Historic Old TownScottsdale • Art Galleries • Scottsdale Arts

District • Scottsdale Waterfront • Scottsdale Stadium (Spring Training for the San Francisco Giants) • Salt River Fields (Spring Training for the Arizona Diamondbacks and the Colorado Rockies)

GUEST SERVICESExpress checkout • Room service • Wirelesshigh-speed internet access available in public areas and meeting rooms • Valet dry cleaning • Guest laundry • Hertz car rental • Safety deposit

boxes (at the front desk)

MEETING FACILITIES12 meeting rooms • 9,755 sq ft of total meeting space including a 1,000 sq ft outdoor courtyard • Catering and audiovisual equipment available

LOCATIONLocated in the heart of the Historic Old Town, 12 miles from Sky Harbor International Airport. Take East airport exit to 44th Street. Proceed North to Indian School Road, turn right (East). Follow to Scottsdale Road, turn left. Take first right onto East Third Avenue

SCOTTSDALE MARRIOTT

SCOTTSDALE AMENITIES TRANSWESTERN 29

Dimensions Capacity

Meeting Room Sq. Ft. Theater Schoolroom Conference U-Shape Banquet Reception

Salon 12 3’x30’x8’ 690 50 30 242 03 55 0

Salon 2 23’x30’x8’ 690 50 30 242 03 55 0

Salon 1 & 2 23’x60’x8’ 1,380 110 65 50 50 80-90 125

Scottsdale Room 23’x24’x9’ 5284 02 12 02 03 04 0

Boardroom 25’x26’x10’ 650 –– 14 –– –

Ironwood 22’x32’x10’ 704 50 242 42 03 64 0

Agave 14’6”x23’8”x10’ 333 –– 12 –– –

Cottonwood 39’6”x21’6”x10’ 850 60 40 35 32 50 50

Desert Willow 39’6”x21’6”x10’ 850 60 40 35 32 50 50

Ocotillo 39’6”x 21’6” x10’ 850 60 40 35 32 50 50

Palo Verde 39’6”x 21’6” x10’ 850 60 40 35 32 50 50

Presidential Suite 803 – 880 –– 12 –– 20

Presidential Suite 816 – 880 –– 12 –– 20

Outdoor Space

Courtyard– 1,000 –– –– 200 250


Jim Achen Jr.

Senior Vice President Office Leasing Services 602.954.9850 [email protected]

TRANSWESTERN ROLE

Jim specializes primarily in the leasing and sales of office properties on behalf of private,

institutional, entrepreneurial and developer clients.

CAREER HIGHLIGHTS

Jim’s clients include SSR Realty Advisors/MetLife, Westfund, Allstate, Princeton, Northridge

Capital, Mitsubishi Capital, Lowe Enterprises, Roth Development, BlackRock Realty Advisors,

MC Realty, Younan Properties, Thrivent, The Presson Companies, SKB, and Transwestern

Investment Company. Jim has successfully completed hundreds of transactions with

companies such as Qwest, the USDA, GSA, The Hartford, American Express, Liberty Mutual,

Verizon, Ottawa University, Collins College, Charles Schwab, U.S. Food Service and Arizona

Department of Revenue.

Jim and Bill Zurek have completed some of the largest lease transactions in Phoenix;

American Express for 169,071 square feet, Cognizant Technologies for 135,000 square feet,

and the Internal Revenue Service for 107,849 sf. During the last several years, Jim and Bill

have averaged approximately 500,000 square feet of lease transactions annually and have

been involved in approximately $500,000,000 of property sales.

Jim has been active in Phoenix commercial real estate brokerage since 1992, and during that

time he has been a consistent top producer and been awarded Presidents Club (previous

company) and Champions Club production awards based on exceptional achievement.

PROFESSIONAL AFFILIATIONS

Jim is an active member of the following organizations:

n Certified Commercial Investment Member (CCIM)n Valley Partnershipn National Association of Industrial and Office Properties (NAIOP)n Urban Land Institute (ULI)

EDUCATION

Jim graduated from the University of Arizona with a Bachelor of Science degree in Business.

He is a licensed real estate professional in the state of Arizona.

BIOGRAPHIES TRANSWESTERN 31

TRANSWESTERN ROLE

Bill specializes in the leasing and sales of office properties.

CAREER HIGHLIGHTS

Bill Zurek joined Transwestern after working with JMB Properties Company for 15 years and

PM Realty Group for 3 years. Bill executed the marketing and leasing plans for downtown

and suburban office properties on a local and regional basis. Since joining Transwestern in

1999 and forming a partnership with Jim Achen, Jr., Bill has executed over 4 million square

feet of lease transactions and approximately $375 million of property sales.

Bill’s clients include Oaktree Capital Management, Pearlmark Real Estate Partners,

Northridge Capital, Gaedeke Group, C-II Capital Partners, Ryan Companies, Wall

Enterprises, and Lexington Corporate Properties Trust. Bill has successfully completed

transactions with tenants such as Arcadis US, Cognizant Technologies, State Farm Insurance,

Qwest, GSA/ TSA, The Hartford, American Express, Liberty Mutual, Bar S Foods Company,

Sogeti, Republic Services, U.S. Food Service and Health Choice Arizona.

PROFESSIONAL AFFILIATIONS

Bill is a member of the National Association of Industrial and Office Properties (NAIOP) and

is a Board Member of Transwestern.

EDUCATION

Bill graduated from Arizona State University with a Bachelor of Science degree in business

administration. He is a licensed real estate professional in the state of Arizona.

William B. Zurek

Senior Vice President Office Leasing Services 602.954.9856 [email protected]


1. Gateway Center - Norstan / BlackBox TechnologiesThe Challenge Relocate four existing Tenants including a 6,946 sf Tenant to another building in the office property. Norstan’s lease did not contain a Substitution of Premises clause. A new Lease for 107,000 sf with a commencement date deadline was at risk.

Strategy Work closely with asset management and property management to structure an amendment that would be attractive to teh Tenant’s local and corporate leadership and the Landlord.

Results Transwestern was able to relocate Norstan to a 5,576 rsf space in another building within the office complex enabling the Landlord to secure a 107,000 sf Office Lease with State Farm Insurance. Subsequent negotiations with Norstan are underway to expand by 1,426 sf and extend by three years.

2. 7025 North Scottsdale Road - USA BarcelonaThe Challenge Securing new leases is a class A office building under special servicer management.

Strategy Drive leasing velocity under restrictive economic leasing parameters.

Results Transwestern was able to lease a 2,700 sf suite to USA Barcelona for one year at $25.00 psf in an “as-is” condition. Once the direct ownership was in place, Transwestern was able to negotiate a four year extension and expansion of the Premises

by 2,250 sf with USA Barcelona. The Lease provided with $9.00 psf in tenant improvements and a starting rental rate of $26.00 prsf.

PHOENIX CASE STUDIES

3. Pima Office Pavilion - Rural Metro The Challenge Built in 2008, the building languished at 0% occupancy for years. The building had been previously under marketed and had the perception in the marketplace as a medical building without an amenity base.

Strategy Awarded the leasing assignment. We immediately began re-emphasizing the building as a true office destination with highly efficient floor plates, a strong parking ratio and excellent freeway access. The immediate area amenities were illustrated much more thoroughly and the immediate proximity to executive housing and easy access to substantial labor bases and Phoenix Sky Harbor were aggressively marketed. In addition to standard marketing, we

began an intense schedule of meeting the best tenant representation brokers at the building in small groups to thoroughly showcase the building.

Results Transwestern completed an 11 year lease for the entire 90,000 square foot building within nine months of taking the assignment. Due to the strategic and aggressive marketing of the space, the negotiations were competitive between two high quality tenants which allowed ownership to leverage negotiations to increase the lease rate, reduce tenant improvement cost and accelerate the occupancy schedule.

CASE STUDIES TRANSWESTERN 33

5. ASML Building - Dupont / Air Products The Challenge ASML Building is a 95,000 square foot Class “A” office and clean room environment. Transwestern leased 95,000 square feet to DuPont / Air Products

Strategy ASML leased the entire building and when the marketing listing was secured, ASML still had three years remaining on the in place lease obligation; This was coterminous with the expiration of the in place CMBS debt. Without new tenancy, securing new debt would not be possible and the building would most likely be given to the lender. Due to the highly specialized nature of the improvements our marketing was directed at high tech companies as well as the research arm of Arizona State University. During this time, a fluid conversation was initiated with ASML in order to negotiate either a buyout or sublease should a replacement tenant be identified.

Results A joint venture between DuPont and Air Products (DANM) was identified as having the ability to utilize the building due to growing demand from Intel for their services. However, DANM was not willing to initially take the entire premises, and the existing CMBS debt forbid the Landlord from accepting a termination buyout. A co-location sublease agreement was crafted between ASML and DANM while simultaneously negotiating a new ten year lease between DANM and the Landlord which would commence immediately upon expiration of the in place ASML lease. The Landlord will have absolutely no occupancy down time, no tenant improvement cost and will be able to refinance under favorable terms to cash flow the asset for an additional ten years.

6. Canyon Corporate Plaza/Major Fortune 500 Lease with Cognizant Technology Solutions The Challenge American Express exercised an early termination right for 60% of this 301,845 square foot Class A asset.

Strategy Broadly market the upcoming Class A space availability locally and through national relationships.

Results We actively engaged a long term national brokerage relationship representing a growing credit tenant through face-to-face meetings, multiple walkthroughs of the premises, and several

proposals and counter proposals. Our goal was to minimize both tenant improvement and eliminate downtime costs. Intense negotiations yielded a new twelve year lease for 130,000 square feet with Cognizant Technology Services, tripling Cognizant’s Phoenix office presence. The lease terms included $12.00 psf in tenant improvement costs and zero downtime. Our relationships with CD Commercial and Julian J. Studley Inc., continues to generate new business.

4. Gateway Center - Snap On Tools - Regional OfficeThe Challenge Market Spec suites within a 432,000 sf three building office complex.

Strategy Work with asset management, property management and leasing to create dynamic Spec Suites with the ability to expand.

Results Transwestern was able to secure a new lease with Snap-On Tools for 2,498 sf. The space was a combination of a 1,498 rsf Spec Suite and a 1,000 sf of adjacent availability.


This proposal and the projections herein are based on assumptions reflecting a certain set of conditions. However, some assumptions inevitably will not materialize and

unanticipated events and circumstances may occur; therefore, actual results achieved may vary from our estimates, and the variation may be material. Transwestern extends

no guarantees and makes no warranties, expressed or implied, with respect to this projection. In that regard, neither Transwestern nor any affiliate, employee, officer, director,

shareholder, or agent thereof, shall have any liability whatsoever arising from this projection or the actual results achieved.


T 602.956.5000 F 602.956.5333www.transwestern.com

2415 East Camelback Road, Suite 900Phoenix, Arizona 85016

Jim Achen, Jr.Senior Vice President 602.954.9850 [email protected]

William B. ZurekSenior Vice President 602.954.9856 [email protected]

scottsdale financial center iii - transwestern · 2016-07-16 · tantn 4 scottsdale financial...

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