ensemble real estate solutions newsletter 1st quarter 2014
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s o lu t i o n s1st Quarter a publication of ensemble real estate solutions 2014
As we ring in 2014 we take time to reflect on last year and look forward to what the New Year will bring. 2013 brought much success for Ensemble such as finalizing and launching two new medical office developments for the Phoenix market, leasing and property management engagements for two medical office facilities and adding a number of new listings to our brokerage portfolio.
Looking ahead into 2014, Ensemble will move forward on the development of another building on THE CITY at Surprise campus in Surprise, Arizona. Ensemble anticipates construction this year on the project which is a relatively new product for the industry, a medical/wellness retail building. We invite you to read further about Ensemble’s involvement with THE CITY at Surprise in the following feature article.
We are pleased that so many of you reached out in praise of the first Solutions newsletter and are excited to announce that we will begin publishing Solutions on a quarterly basis.
Best wishes to you all for a prosperous 2014!
Welcome
contents3 Feature Article
5 Market Conditions
6 Regional Transactions
7 Events and Recognition
10 Ensemble Out and About
12 Perspectives
13 Faces of Ensemble
14 Ensemble Fun
Bill MolloyManaging Director, CEO
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For More Information:
888/428-2228
www.ensemblere.com
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With a population today of 125,000 and a market trade area of more than 300,000, Surprise, Arizona is one of the fastest growing cities in the nation. The population growth also is increasing the need of residents to have convenient healthcare services. An estimated 170 more physicians are needed in the community by 2016.
In 2008, because of Ensemble Real Estate Solutions expertise in medical real estate, Surprise Center Development Co. (SCDC) selected Ensemble as its Medical Developer for the entire healthcare portion of the master planned campus, THE CITY, in the heart of Surprise. THE CITY master plan campus includes a major medical and research complex and bioscience park as a part of the master plan.
OpportunityIn 1995, Surprise was a town of less than 15,000 residents. Carefree Partners President Rick West and the Surprise City Manager saw the great growth potential for the city and Carefree Partners began to assemble parcels of land to create a 760-acre master planned urban center—THE CITY at Surprise.
THE CITY was envisioned as a place with distinguishing elements to create a downtown core that would be the center of commerce, entertainment, recreation, culture and urban living for this suburban market area today, 25 years from now and beyond.
Carefree Partners formed Surprise Center Development Co. (SCDC) and began work on the unique opportunity to “build the city from the ground up.” The project consists of a 120-acre Spring Training facility; a 100-acre government center and urban park complex; and more than 500 acres for commercial, office, residential, resort and medical complex. To date, the following projects have been completed on the development: a Spring Training facility for the
DEVELOPMENTEnsemble selected as Medical Developer for THE CITY at Surprise Campus
W Greenway Rd
N Litchfield Rd
N Bullard Ave
W Bell RdW Grand Ave/US 60
Surprise Medical Plaza
MunicipalityComponent
Planned Development: Surprise Retail Plaza
THE CITY at SurpriseSurprise Recreation
Campus
ensemble is developer
for entire healthcare portion of tHe citY
master planned campus.
Texas Rangers and Kansas City Royals, an aquatic center, tennis complex, library, park, Surprise City Hall, public safety center and courts.
In 2010, working with Banner and the City of Surprise, Ensemble and SCDC began to work on the first medical building on THE CITY Campus. Ground was broken for the two-story,
$8 million, 34,048-sq. ft. building in November 2011, and completed on schedule and on budget in October 2012. Current tenants of the building include pediatrics, OBGYN, family practice, internal medicine, imaging, lab and a Mohs micrographic surgical practice.
Ensemble Real Estate Solutions was instrumental in the success of the project at each step of the way—from site selection, project development, construction management and leasing of the space.
Phase II and Future PlansSCDC and Ensemble have identified a growing need to serve the population through a relatively new concept which merges neighborhood wellness and retail businesses at one location. This new product type, which provides services to maintain and improve health, allows healthcare providers to capture the population by bringing services to their neighborhoods and to provide community-based medical services from primary care to other ancillary services.
Ensemble is currently in the planning stages to develop a neighborhood wellness and retail center on THE CITY Campus. The program for the newly designed project will include wellness programs, physical therapy, massage therapy, podiatry, chiropractic, neuropathy, as well as complementary retail businesses.
The new wellness and retail center will contain 30,000 square feet and is set to be constructed on a high retail visibility location of the campus on Litchfield Road and Statler
Boulevard – the main arterial to the campus. The building is scheduled to open late 2014.
Future development on THE CITY Campus is planned to have a 15-acre medical and biomedical component with more than 250,000 square feet of space. There is potential to expand the medical component of the campus to up to 80 acres for a variety of centers of excellence as the market demands. Ensemble, as SCDC’s designated healthcare development partner, continues to provide counsel to SCDC regarding biomedicine, medical specialty use, technology and new development ideas for new business.
The City of Surprise is part of the New West Valley, a market trade area expected to grow to more than two million people in the next 30 years. This area encompasses an area from south of I-10, to the Yavapai County line on the north, the Agua Fria River on the east and the Maricopa County line on the west.
THE CITY at Surprise will be at the bustling center of this future growth. Healthcare services will be needed for the influx of population and healthcare will also provide high-quality jobs for the local workforce.
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The information presented has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty, or representation about it. It is your responsibility to confirm accuracy and completeness of all presentation materials. Any projections, opinions, assumptions, or estimates are used for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful independent investigation of the property to determine to your satisfaction, the suitability of the property for your needs.
LEASING
ENSEMBLE
SALES
ACTIVITY
ACTIVITY
ACTIVITY
28.1%
28.1%
8.4%
21.9%
$191M
230
vs.
Total Vacancy
Medical Office Buildings greater than 10,000 SF in Maricopa County
Vacancy Rate for Ensemble Represented Buildings
Vacancy Rate for all Medical OfficeBuildings in Maricopa County
Average Cap Rate
Total Volume based on 36MOB Transactions in Maricopa County $144
Average Sales Price per Square Foot
MEDICAL OFFICE MARKET CONDITIONS MARICOPA COUNTY, ARIZONA
4TH QUARTER 2013
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2013 Year End Regional Transactions
Ensemble Real Estate Solutions
closed out 2013 with
207 medical office transactions,
totaling approximately 620,000 SF
Below is a breakdown of where
the transactions occurred.
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ca l i fornia arizonanevada
Reno14
Transactions37,721 SF
Las Vegas52
Transactions155,042 SF
113Transactions344,702 SF
26Transactions
81,853 SF
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At an event held at the Mandarin Hotel in Las Vegas, Ensemble Real Estate Solutions accepted the TOBY award for the Summerlin I Medical Office Building located in Las Vegas, Nevada. This award of distinction was for Medical Office Building of the Year and was presented by the Nevada regional chapter of BOMA (Building Owners and Managers Association). Summerlin I is a 89,600 SF medical office building, developed by Ensemble in 1995 on the campus of Summerlin Hospital Medical Center. The building is owned by Universal Health Realty Income Trust and features an enclosed walkway to the hospital and on-site laboratory, radiology, physical therapy and dialysis, all within easy access from the Summerlin Parkway and I-25. Ensemble provides
all leasing and property management services for the building.
TOBY stands for “The Outstanding Building of the Year” and is considered the most prestigious and comprehensive program recognizing quality in buildings and rewarding excellence in building management. The competition began with an application and the entries were reviewed by a panel of judges who evaluated the building’s operations, which include tenant relation programs, community involvement, emergency preparedness, parking facilities, energy management, security standards and continuing education for the building personnel.
“I attribute much of the success of Summerlin I to the outstanding efforts provided by the building’s property management team led by Pam Villareal,” said Linda Holzapfel, Executive Director, Property Management for Ensemble. “I believe this honor is a testament to Ensemble’s philosophy of operating our clients’ buildings from an owner’s point of view and tenants-first approach.”
Summerlin I Wins ‘The Outstanding Medical Building of the Year’ (TOBY) Award
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James Stoyer receiving the 2013 TOBY Award
Emcee, Channel 8 News Dave Courvoisier,
Ensemble employees; James Stoyer,
Pam Villareal, Jim Worley, Steve Stocker
and Mary Frankert, President BOMA Nevada
Summerlin I Medical Office Building
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ensemble real estate solutions’ tracy altemus and Jamie krahne Author a Chapter in “the textbook of urgent care management”
Tracy Altemus, Executive Vice President, Healthcare Brokerage Services and Jamie Krahne, Regional Manager, Northern Nevada for Ensemble Real Estate Solutions recently collaborated on writing a chapter in “The Textbook of Urgent Care Management’” by John Shufeldt M.D. J.D., MBA, FACEP. Altemus and Krahne provided their industry expertise for a chapter in the textbook titled “Building out an Urgent Care Center”.
“I was delighted that Tracy and Jamie agreed to participate in this textbook,” said Shufeldt. “Ensemble has a long history of health care leadership and their willingness to share that knowledge is axiomatic of their customer-centric approach and professionalism.”
The textbook was written as a comprehensive guide to starting, owning, operating and selling an urgent care business. In each chapter industry professionals provide perspectives on their particular area of expertise and include “10 Key Points” which highlight the most critical components of the subject matter. The textbook is meant to be a resource for those managing an urgent care business and assist them in defining a problem, creating solutions and measuring outcomes.
”Throughout our careers at Ensemble, we’ve assisted many of our clients with their build-outs,” said Tracy Altemus. “So when Jamie and I were approached about writing this chapter, we were pleased to assist in providing our insight into the best build-out practices we have observed over the years and hope that it serves as a valuable resource to those who are thinking of opening an urgent care center.”
In the “Building Out an Urgent Care Center “ chapter authored by Altemus and Krahne they detail everything involved in the process of constructing an urgent care center from timing, identifying project delivery, approval process, qualifying contractors, permitting, bidding, funding, close out and final delivery.
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Bill Molloy, Managing Director/CEO and Tracy Altemus, Executive Vice President, Healthcare Brokerage Services for Ensemble Real Estate Solutions were recently recognized in the publication, Az Business Leaders, as influential business leaders in the state of Arizona. The publication, which is published once a year by AZ Big Media, profiles 400 of Arizona’s top executives, who are considered drivers of the economy in over 60 industry categories.
The list was originally developed through organic efforts by AZ Big Media, with an initial count of over 5,000 business leaders. From this list the publisher reached out to associations who worked with specific industry categories to establish the 10 most influential in each category. From there, a selection committee identified the top six leaders in each industry – four influential and two impact players.
Tracy Altemus’ profile was featured among three others as an influential leader in the Broker-Medical Real Estate Category and Bill Molloy’s profile was featured among three others as an influential leader in the Developers-Commercial Real Estate Category.
Bill Molloy and Tracy Altemus featured in Arizona Business Leaders 201 3 -2014
Ensemble Milestone Anniversaries
Congratulations to the following individuals who marked their 15th year with Ensemble.
Jessie Agosta
Jerry Fuller
Marina Hammersmith
Annette Lien
Pam Villareal
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Years Of15
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03/01 phoenix children’s Hospital - beach ball
03/22 John c. lincoln Health - Gold ball
Catch Ensemble at these Upcoming Events!
Marina Hammersmith showcasing renovations at Santa Fe Plaza
Ensemble sponsored and attended Sun Health’s SUNsations Gala
TOBY Awards - Summeriln I Building Engineers Stephen Stocker, James Worley, James Stoyer
Randy and Shane McPherson attending an Ensemble sponsored event for Phoenix Children’s Hospital
For more information visit these links:
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Randy explaining Santa Fe Plaza Renovations to tenants Tracy Altemus bartending for Charity
Ensemble sponsorship at the John C. Lincoln Lincoln Guild Invitational 2013
Randy McGrane served as moderator of a panel at the RealShare Healthcare Real Estate conference
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Ensemble in attendance at the Stars of the Season Gala benefitting Banner Children’s Hospital
Deb Tussing Spencer representing Ensemble at the Nevada Healthcare Forum
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TENANT REPRESENTATIONDemystifying Lease RatesBy Murray Gares, CCIM
When looking for new space often times a potential tenant tends to focus only on the lease rate which may sway them to or away from a property.
It is important to keep in mind that there are a lot of expenses that are either included or excluded in the rate depending on what type of rental rate is being used.
Most leases are either full service leases or triple-net leases.
A full service lease rate typically includes all of the operating expenses related to the building, whereas a triple-net lease rate includes none of the operating expenses.
Understanding the difference between these rates and being able to adjust for those differences is particularly important when comparing multiple spaces in order to give you an apples to apples comparison.
At the end of the day the real economic decision on one space over the other is— how much does one space cost on a monthly basis for everything in comparison to another.
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murray garesSenior Vice PresidentTenant/Buyer Representation
Murray Gares has over 20 years of experience in tenant/buyer representation in the metropolitan Phoenix area.
Murray is an invaluable source of in-depth local market knowledge relating to both medical and general office.He has successfully represented hundreds of tenants and buyers during his career, including individual practitioners, major hospital operators and municipalities.
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Fac e s o F e n s e m b l e
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Frances Amatisenior property manager
long beach, california
When did you join Ensemble and what do you do?
I joined Ensemble in 2007 as a Senior Property Manager. In 2010 I assumed responsibility for Ensemble’s California medical portfolio
and in 2012 I assumed Ensemble’s Washington and Texas assets. I am responsible for property operations, tenant improvements, capital
renovations and repairs for the portfolio.
Faces of Ensemble was created as a way to get to know our employees. Each month Ensemble highlights an employee by having them respond to a series of questions. The following individuals were featured in the last quarter. Please visit Ensemble’s Facebook page to see the full responses from our team members.
When did you join Ensemble and what do you do?
I joined Ensemble in September 2008 as a utility engineer and was promoted to building engineer in 2010. I’m responsible for 3 buildings, which include 700 Shadow Lane, 2010 Goldring Ave, and 2020 Goldring
Ave, totaling 120,000 of combined square footage in my portfolio. I oversee all of the physical operations of the buildings including HVAC
controls, safety, building maintenance, vendor management and maintaining tenant relations.
Marc Feselbuilding engineer
las vegas, nevada
When did you join Ensemble and what do you do?
I initially joined Ensemble in January 1999 as a property manager for the east valley portfolio where I oversaw the day to day operations
including management, leasing and construction. I left the company for a while in 2001 and when I came back, I took on my current role in brokerage where I do everything - from securing new listings, showing
property, negotiating leases to preparing property budgets.Marina Hammersmith
senior vice presidentHealthcare brokerage services
phoenix, arizona
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turkeybowl
Hatday
FUN
Turkey Bowl Fun
at Ensemble!
Ensemble employees from all offices recently gathered
in Phoenix for the company’s annual Turkey Bowl and had a chance to relax, meet co-
workers from other offices and have some fun in the sun on
a Friday afternoon. This year’s contests included Flag Football,
Cornhole, Pin the Tail on the Turkey and a Chili Cook-off.
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winners
games
football
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pin the tailon theturkey
defeated swim
chili cook-off
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cornhole
turkey bowl
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For more information:
Tracy alTemus, ccImdirect: 602/[email protected]
888/428-2228www.ensemblere .com
FEATURES
surprise medical plaza at tHe citY13995 w statler blvd ■ surprise, arizona 85374
■ Developed and managed by ensemble real estate solutions■ located in the heart of surprise at the main entrance of the newly created surprise civic center■ Energy efficient construction■ Anchored by Banner Health Women’s Center and Primary Care Center and by Affiliated Dermatology■ close proximity to banner Del e. Webb and banner boswell medical centers■ phase ii coming soon with up to 15,000 sf available
for lease
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N
Public SafetyBuilding
SurpriseMunicipal
Courts
Police Dept. Fire Admin.
City Hall
Communiversity@ Surprise
HeardMuseum
West
Paradise Ln
Statler Blvd
Litchfield Rd
Tierra Buena Ln
Bullard Ave
Maricopa CountyNorthwest RegionalCourthouse
Channel11
DreamCatcherPark
Surprise Lake
SurpriseRegionalLibrary
Surprise Park
AquaticCenter
Surprise Stadium
SurpriseTennis andRacquet Complex
CH ParkingGarage
Surprise Dog Park
Civic Center Dr
To Bell Rd To Bell Rd
To Greenway RdTo Greenway RdTo Greenway Rd
COMING SOON
SurpriseWellness Village
Surprise Medical Plaza
at ensemble real estate solutions, our in-house
expertise is built upon 30 years of maintaining a
sole focus on the healthcare real estate market.
this translates into providing you the industry’s
most knowledgeable and trusted resource for an
all-inclusive service provider.
888/428-2228www.ensemblere .com
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