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Winter 2014 > > > BizTucson 153 www.BizTucson.com THE REGION’S BUSINESS MAGAZINE SPECIAL REPORT 2014 BFL CONSTRUCTION SEIZING OPPORTUNITY DIVERSIFIES & THRIVES CELEBRATING 40 YEARS

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A Special Report from BizTucson magazine.

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THE REGION’S BUSINESS MAGAZINETHE REGION’S BUSINESS MAGAZINESPECIAL REPORT 2014

BFLC O N S T R U C T I O N

S E I Z I N G O P P O R T U N I T Y

D I V E R S I F I E S & T H R I V E S

C E L E B R A T I N G 40 Y E A R S

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40YEAR

BFL Construction

Garry Brav is a Tucson en-trepreneur who built his busi-ness life here from the ground up – after deciding on a whimto enroll at the University of Arizona.

He started with a bar he built on Fourth Avenue in the early ’70s, then moved into construc-tion. His success over the past 40 years is tied to his ability to adapt and diversify to address fluctua-tions in the economy and the needs of the community. He’s expanded from BFL Construc-tion into a wide-ranging “family of companies” today.

His construction company has not only built homes, movie the-aters and schools, but also the Emergency Department at St. Mary’s Hospital, the headquar-ters of bioscience technology

company Ventana Medical Sys-tems in Oro Valley and hundreds of other commercial structures in Southern Arizona

Along the way, Brav developed deep relationships with subcon-tractors, vendors, craftspeople, investors and others who share his view that integrity, depend-ability, communication, collabo-ration and a commitment to ex-cellence are the building blocks of long-lasting success.

His intellect, passion for busi-ness, tenacity and the patience to ride the economic waves over the years helped him move from bar owner to builder, developer, tech industry guru and philan-thropist. And he sees no point in stopping now. “What would I do all day?”

By Sheryl Kornman

Commitmentto Excellence

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His Father’s Legacy

Garry Brav surrounds himself with inspiration – including vibrant art by his father, Milton Brav. He keeps a book in his office that contains some 300 images of his father’s art-work – abstract paintings in bright primary hues and geometric paper sculptures. The guiding hand on the wall is a plaster cast of his father’s hand. Garry started working in his father’s food manufacturing compa-ny at age 5. “I got to see every as-pect of his business – but especially how to treat people with respect and how to negotiate.” His dad sold the business while Brav was in college and devoted his time to art. Brav then pursued his own business ventures in Tucson after graduating from the University of Arizona.

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Garry BravFounder, BFL Construction

To Succeed – DiversifyToday Brav is also a venture capital-

ist, investing in and building a luxury rental housing product that offers a quality home with granite countertops, 10-foot ceilings and private yards, along with safety and privacy within gated communities.

“I try to surround myself with people who are smarter and more competent in their discipline than I am,” he said. He hires the smartest people he can find who will adhere to the highest industry standards. They are the keys to his suc-cess. Many of his managers have re-mained with him for more than 30 years and the collective employees have more than 240 years of experience at BFL.

Working at BFL requires top employ-ee performance and skill. Those who don’t adhere to Brav’s standard of ex-cellence will find themselves moving on.

“We want to be the most profession-al construction company in Arizona. That’s the level of performance that I require and I want to deliver. That’s why clients like us. We do what we say we are going to do. The success of the business depends on this. If you don’t perform – we don’t need you.”

Brav moved from custom homes to tenant improvements in new and ex-isting commercial structures (mostly

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“Myrelationships are based onperformance.I can always look people in the eyeand know I took careof them.”– Garry Brav

Founder, BFL Construction

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Hon Dah Resort Casino and Conference Center

Pinetop, AZ

Square footage: 119,169

1997

VentanaMedicalSystems

Oro Valley, AZ

Phase ISquare footage:182,400

2001

Rancho Sahuarita Clubhouse and Water Park

Sahuarita, AZ

Square footage: 15,000

2001

Integrated Biomolecule Corporation

Oro Valley, AZ

Square footage: 21,120

2004

Ventana Medical Systems

Oro Valley, AZ

Phase IISquare footage:142,000

2007

Finisterra Luxury Apart-ment Homes

Tucson, AZ

Square footage: 327,050

2006

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BFL ConstructionOffice

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Front row from the left: Erin Stock, Carrie McClafferty, Julie Culver, Lourdes Sykes, Bernice Welch, Ashley Benjamin, JoAnne Klemmer, Leslie Schaefer, Elaine Rosen, Kim MacPhee, Danielle Seiwell – Middle row from the left: Phil Cohen, Tom Smallhouse, Max Mejia, Dan Levitt, Jr., Jennifer Mohs, Jimmy McIntyre, Luis Mendoza, Jeff Freeman, Bill Reynolds, Garry Brav – Back row from the left: Delbert Dittmer, Chris Flint, Steve Richardson, Wayne Ander-son, David Williamson, Brad Pavelich, Ken Sand, Dave Winsor – Not pictured: Ken Brandstatt, Gene Parkinson, Ron Kuipers, Robert Dunlop

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Sierra Vista Regional Health Center

Sierra Vista, AZ

Square footage: 105,000

2007

Carondelet Neurological Institute and Women’s Care

Tucson, AZ

Square footage: 166,916

2008

Northwest Hospital Parking Structure

Tucson, AZ

704 parking spaces

2008

Pima Air and Space Museum

Tucson, AZ

Square footage: 26, 574

2009

El Rio Community Health Center

Tucson, AZSquare footage: 28,000

2010

Joint Technical Education District

Tucson, AZ

Square footage: 7,400

2013

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high rises), on to commercial, then into planned communities. Along the way he redesigned the construction contrac-tor’s role. He likes to smooth the process and control costs by getting involved at the start of a project rather than getting called in when it’s time to break ground.

His ability to collaborate across spe-cialties has rewarded him with expand-ed business opportunities and a work force dedicated to getting it right the first time.

As a developer of single-family homes, he is working with second-gen-eration homebuilder David Williamson, whose oilman father created Fairfield Homes. Williamson is a visionary, who is “good at lot design,” Brav said. “I recognize it when I see it. It doesn’t just come to me without working at it – but David just sees it.” Williamson looks at large parcels of land and has the ability to maximize the attractiveness of each lot as he lays out the home sites. Brav

and Williamson’s synergy is an impor-tant key to their business growth.

Early On-the-Job TrainingBrav got his own start in business as

a child in Chicago, when this son of Austrian immigrants accompanied his father to work during summers, starting when he was just 5 years old.

“I followed Dad around all day and listened to how he handled conversa-

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tions. I developed my own business acu-men listening to my dad. I got to see how he handled every aspect of his busi-ness – but especially how to treat people with respect and how to negotiate.”

Brav’s father started early too – work-ing at age 12 in a Stop & Shop grocery for 25 cents an hour. When he served in the Navy during WWII, the store kept him on the payroll throughout his mili-tary service. After the war, he opened a Stop & Shop in Indianapolis. A couple of years later he decided to start his own business.

In his 30s, the elder Brav began to experiment with the application of new packaging technology for food manu-facturing. Brav said his father invented the frozen French fry and frozen indi-vidual appetizers – cheeses on a cracker or pastry bed – and began manufactur-ing cheese products with machinery he bought in Switzerland. It was novel then to buy a frozen food and heat it in the oven.

The factory ran two shifts process-ing cheese, forming them into triangles wrapped with foil. Later he had a Styro-foam mold made to hold ceramic crocks of cheese, which became a big seller at Christmas time. Then Brav’s father be-gan to manufacture private-label foods for Reese, Viking, S.S. Pierce, Richelieu Foods, Hickory Farms and others. It was a new concept at the time.

“I worked in the factory,” Brav said,

“I developed my own

business acu-men listening to

my dad. I gotto see how he handled every aspect of his business.”– Garry Brav

Founder, BFL ConstructionMeet the BFL TeamDelbert D. Dittmer, Owner & VP

Raised in Iowa, Delbert D. Dittmer attended college for drafting, construction principles and estimating. He operated his own successful construction business for 13 years until the mid ’80s when an economic downturn compelled him to seek work outside the Midwest.

He visited several Sun Belt states looking for a new start. He found that new start at BFL Construction in Tucson. That was 27 years ago.

Through the years he moved from superintendent to project manager. Today he is a senior VP and owner.

Dittmer assigns projects to the company’s project manager/estimators and takes part in the conceptual estimating of the cost of a project. Because BFL gets in-volved early in the process, often in the design stage, preliminary cost estimates can be made without a full set of plans.

“We get in at the very beginning and stay to the end. We give pricing options and are part of the decision-making process with the client.” BFL produces fea-sibility studies for different types of construction and product – offering sugges-tions that will work with various design elements to build a long-lasting product.

“We guarantee a maximum price,” Dittmer said. “The price does not change unless there is a change to the scope of the project. All projects are completed on time and on budget.”

BFL is very selective in its choice of subcontractors. “Our prequalification pro-cess allows us to select the subcontractor that is best qualified for each type of product.”

Dittmer said BFL, now marking 40 years in business, has the experience and leadership to provide a turnkey project. It also works with a client’s architects and engineers to put together a team to execute a project, while the business owner focuses on running his or her business. “We help in the decision-making process, but the decision is made by the team. They make the best decisions,” Dittmer said.

“The BFL company slogan is ‘Expect Integrity.’ Maintaining honesty and integrity on every project is a key element to building future business relationships.”

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Code of the West

Garry Brav holds himself and others to the highest standards – and has for 40 years. He cultivates lasting relationships, pursues an unwaver-ing commitment to excellence and explores new ventures with zeal. He frequently quotes these 10 guid-ing principles from The Code of the West:

1. Live each day with courage

2. Take pride in your work

3. Always finish what you start

4. Do what has to be done

5. Be tough, but fair

6. When you make a promise, keep it

7. Ride for the brand

8 Talk less and say more

9. Remember that some things aren’t for sale

10. Know where to draw the line

Source: “Cowboy Ethics: What Wall Street Can Learn from the Code of the West” by James P. Owen.

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“starting in the label room, straight-ening stacks and stacks of labels” that would be fed into automatic labeling machinery.

Quality Control from Start to Finish

In the factory were giant kettles, up to 1,000 gallons each, which were used to prepare the different flavors of cheese – caraway, port, cheddar and Swiss and he learned quality control as he saw the equipment “perfectly cleaned over-night” by steam cleaning crews dressed in protective gear.

It was very organized. “I saw levels of supervision (in place) to make sure everything was perfectly clean” for the next day’s production, Brav said. He also traveled to New York and New Jer-sey with his father to buy the specialized manufacturing equipment for the fac-tory.

“This was very complex and exact-ing equipment specifically designed for Dad. It enabled the processed cheese to be made in a variety of shapes, then move to packaging and labeling. It’s the kind of equipment you see in food fac-tories of today and on ‘How It’s Made’ on the Science Channel.”

Garry worked every aspect of the business, including operating forklifts and working the loading docks to get product into the distribution chain. The business grew and he fully expected to become part of the company. He was poised to take on the big companies like Kraft Foods after college. Then – just as he was nearing graduation – his dad sold the company to the Pet Milk Group.

Off to ArizonaBrav was educated at a private school:

The Latin School of Chicago, but he chose not to attend an Ivy League col-lege. That decision shaped his future. While working at Chicago’s Lincoln Park Zoo the summer after graduating from high school, he met a fellow zoo worker, a University of Arizona junior.

“I was always into cowboys growing up,” Brav said. “Gene Autry, Roy Rog-ers, Gunsmoke. So just three days be-

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Meet the BFL TeamLourdes Sykes, Chief Information Officer

Lourdes Sykes started at BFL Construction as an accountant. After two years, she moved to Seattle and trained in information technology.

While in Seattle, she worked her way into an IT director position at a commer-cial real estate company. Five years later, Lourdes returned to Tucson as the IT manager for BFL.

Recently she was promoted to chief information officer. Her work in systems analysis is complex and deadline driven – which is what she loves about the new position.

As BFL President Garry Brav diversifies his business interests, the IT department is a key player in mastering the use and flow of information to execute new projects.

When sister company Preferred Apartment Builders made plans to build the AVILLA brand – luxury rental homes in gated neighborhoods – Sykes got a new set of challenges. The design-implement phase required substantial testing to meet the precise requirements of the product.

“It was a very different set up,” she said. “We had to analyze how to do it – and do it right the first time. We strive to constantly improve systems to create efficiency.”

Sykes and her team study the information needs and business processes of a project, taking on a leadership role to develop better ways of integrating tech-nology with business on that project.

She’s enjoyed her move into management. “I love interacting with people and I have a passion for numbers. I interact with every person in the office. We are proactive in design and always look to see what’s next. I get out of my comfort zone – which I enjoy. These are the challenges I like. Technology and business practices will always be advancing and you have to keep up.”

When there is an IT issue, Sykes and her team move quickly to help employees and subcontractors overcome obstacles. Systems are protected and security is the top priority. “We are proactive and put procedures in place to avoid prob-lems.” The company cross-trains and has redundancies in place. “We have a Plan B,” she said.

“Garry has a direction and vision for his company. He understands and sup-ports new ideas,” Sykes said. “He is really into technology and efficiency. He sees the value of what I present to him.”

While Brav embraces change and the use of technology, Sykes understands that his real focus is accurate up-to-date data – always.

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Meet the BFL TeamKen Sand, Project Manager & Estimator

BFL Construction’s Ken Sand is proud that at BFL “we do it all – we estimate, design and build.”

Sand, a project manager and estimator, has been with the company 23 years. Because the estimator is also the project manager at BFL, responsibility for each project doesn’t end until it is completed to a client’s satisfaction.

“We work on estimating, value engineering and product selection,” Sand said. “When you’re involved in predesign and preconstruction as project manager and communicate often with site superintendents and subcontractors, you can make sure the client’s expectations are met.”

Communication throughout the process is always polite and the project man-ager remains available to the client after completion to manage any warranty or other issues that may arise, he said. “It’s an added personal touch we offer our clients. Continuity is important – it enhances the experience.”

“During conceptual estimating, BFL’s project estimators will include items that will be needed on the project whether or not they are on the drawings at that point,” he said. “We make sure it is included so the cost and scope of the proj-ect can be properly assessed.”

Sand’s specialty is health and medical facilities. He managed BFL’s work on health clinics for El Rio Community Health Center. The six new facilities were built from the ground up. Two are LEED certified by the U.S. Green Building Council. He also managed BFL’s work on 12 COPE behavioral health facilities in Tucson and seven behavioral health facilities for SouthEastern Arizona Behav-ioral Health Services in Cochise, Santa Cruz, Graham and Greenlee Counties.

He also supervised construction of Pantano Behavioral Health’s adolescent out-patient clinic, Cottonwood de Tucson’s administration building and Department of Economic Security offices, all in Tucson. He also guided BFL’s work on several remodels of surgical suites at the University of Arizona Medical Center.

Sand began his career working with his father and uncle in the family construc-tion business in Denver. He started as a young teen during the summers. His father brought him to job sites and he learned the business by listening, watch-ing and doing. “When you grow up in the business, it’s a different type of ap-prenticeship,” Sand said.

Today “technology has changed how we do business,” Sand said. Drawings are digitized and the scope of work – how much concrete you need, the quantity of materials, the cost of materials – is calculated with precision. “We do it on the computer now. We assign a cost based on our experience with that type of product.” It adds a standard “in how you approach the complexity of an esti-mate. It’s easier this way for a client to see what you are providing.”

fore the start of fall semester 1964, he decided he wanted to attend the UA in Tucson. The headmaster at The Latin School made a call to the UA admissions director and Brav was on a plane to Ari-zona. His father agreed to pay for tuition and books and send him $170 a month, “which was a lot of money then.”

When he stepped off the plane and saw blue sky, he fell in love with Arizona. There were no dorm rooms available by then, so he went to the Student Union to look for a roommate to get an apart-ment. That’s how he met developer Ron Janoff, who had built the Carousel Apartments where he rented and the two became lifelong friends. Brav was just 17.

He joined a fraternity, Alpha Epsilon Pi, made friends easily and was its so-cial chairman in his sophomore year. To help the boys get dates, Garry the en-trepreneur started a college newspaper that published the pay phone numbers on each floor of the girls’ dorms.

He and his friends regularly enjoyed a $2.95 steak at Pack-Em Inn Steakhouse, now closed.

While he worked on a bachelor’s degree in business administration and thought about where to go from there, Brav took a lot of psychology classes. They helped him better understand himself, he said, and he earned extra money working part-time downtown at Myerson’s and at Franklin’s selling men’s clothes.

In his senior year, he bought a 1955 Mercury for $45. He had saved $5,000 over four years, so after graduation in 1968, he bummed around the country in his Mercury visiting college friends. He then came back to Tucson and signed up as an extra in the cast of the now-classic “Catch-22,” shot in San Carlos, Sonora. He met director Mike Nichols and befriended actors Art Gar-funkel, Bob Balaban, Alan Arkin, Paula Prentiss, Martin Sheen and Buck Henry, who wrote the screenplay. The back of his head is onscreen for a moment in the final cut, as the chauffer of Orson Welles’ character.

That’s where he met Balfour Walker, a Tucson commercial photographer, and began a lifelong friendship with him

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and BMW motorcycles. Just a few years ago that they took their dirt bikes, BMW F 650 GSs, 2,300 miles down Baja and back. They also have BMW R 1200 GSs and continue to ride both bikes when they can.

Fourth Avenue Beer & BurgersBack in Tucson and with a $5,000

loan from a college girlfriend’s father and a partner, he opened a bar-restau-rant on Fourth Avenue in a small store-front and sold quality hamburgers and 10 kegs of beer a day, seven days a week, for 18 months. One of his selling points – the beer was a reliable 34 degrees. To-day the site is the bar IBT.

Brav found he was a good manager, but didn’t like the bar business. He sold it for $60,000. He bought the building for $50,000 after opening the bar – and sold it for $75,000.

What next? “There weren’t too many choices in

1973 – Hughes Tools, the Post Office, the UA, Circle K or sell real estate,” Brav said.

Rather than sell real estate, he decid-ed to build it.

He bought a lot on Wilshire Drive near Broadway and Craycroft for $7,000 and with a $35,000 loan from Southern Arizona Bank and a partner, built a house – then sat on it for a year when it didn’t sell. He got $47,000 for it when it did.

From Homes to High Rises Brav built custom homes through

the ’70s and - ahead of his time - intro-duced solar-powered homes to Tucson with solar power technology from Is-rael and Popular Mechanics magazine. People were curious to see the homes, he said, but he only sold four.

Lesson learned? “Pioneering doesn’t always pay off.”

He moved on to tenant improvements in high rises – the Home Federal Tower – after knocking on doors there for over a year looking for work. He knew he wanted longer lasting relationships with clients - built on performance. That would help him expand his portfolio.

“We put in a door for $147. It was a two-day job. Then they hired us to

Meet the BFL TeamJoAnne Klemmer, Controller

JoAnne Klemmer, controller for BFL Construction, was business manager at a nonprofit osteopathic foundation before she came to Garry Brav’s company with a degree in accounting from California State University, Fullerton.

Klemmer and her staff produce financial statements, depreciation schedules, audit preparation and many other reports for Brav and his more than 30 busi-ness entities.

“It is not a boiler-plate type operation,” she said. As Brav takes on business partners for various endeavors, “we work with his partners and their desires and needs.” On Alta Vista Communities, one of the entities building the AVILLA luxury rental home brand, she prepared numerous financial reports before and after properties were built out, including those required as construction was completed.

“The variety makes it more interesting. It’s enjoyable to put together the entire account from start to finish.” Klemmer said her work requires creativity and “that satisfies that part of me.”

As Brav began to form new sister companies, Klemmer said she asked him to stop after the sixth. “Did he listen to me? No,” she said.

Brav has been a “great mentor to me about the business world. He’s certainly sponsored a team effort” among the staff. Brav is known for his longstanding open-door policy. Anyone can talk with the boss.

Logistically, when working with so many entities, it is important “to strive for as much perfection as we can get,” Klemmer said. That requires utilizing new systems and adapting others to BFL’s changing needs. Her staff must provide calculations across all entities – determining soft costs, for instance, to give more control over the execution of development of the various properties.

Klemmer said Lourdes Skyes, the company’s chief information officer, has been “very clever in modifying the various tools that can accommodate any of the en-tities. We feel confident we can present our financials to any owner,” she said. “It goes to our credibility, in the end.”

Accounting is the hub of the company, she said, providing data to contractors, estimators, production supervisors and the owners.

She has enjoyed seeing the company grow over the 15 years she’s been with BFL. “It’s great to see all these buildings completed.”

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do another job. Six months later they wanted me to open an office there. I was working on a desk made from a door laid on cinderblocks and a file cabinet in the corner of my bedroom.”

The space he chose in the build-ing was 6 feet by 7 and cost him $42 a month. “It was perfect,” he said. He bought a desk for $70 at Super City and moved in his adding machine and files. “I was really in business now.”

He made tenant improvements to the Home Federal Building at 32 North Stone Ave. and to Arizona Bank Plaza at 33 North Stone. As it was just being finished he was introduced to a New Yorker whose company was going to get the contract for all of the tenant im-provements from Cushman and Wake-field for the new building.

“We hit it off. I took him to dinner at Palomino. We shook hands and formed a new company – BFL. The company went from $289,000 in revenue to $2.5 million in the first year. In 1984, Brav

bought out his partner.Building for Bioscience, Education & Healthcare

Brav soon branched out into highly specialized areas – bioscience, educa-tion and healthcare.

Ventana Medical Systems, which de-velops and produces human pathology diagnostic tools, chose BFL to build its world-class research facility in Oro Val-ley in 2000. Mara G. Aspinall, CEO and President of Ventana, said BFL also “successfully handled two strategic expansion projects to accommodate our global market growth.”

She added, “Nestled close to the base of the magnificent Santa Catalinas, the campus provides an inspiring, well-designed and constructed workplace for our 1,000-plus employees – and a treat for community members who visit for our cancer educational events or to en-joy the Ventana Art Gallery.”

With BFL’s sister companies, Brav is growing again, anticipating the needs of investors and communities for differ-

ent types of construction. He is build-ing high-end rental homes in Tucson and Phoenix with lavish interiors for an emerging class of renters, single-family homes near Vail, as well as affordable housing for veterans and people who are physically or developmentally chal-lenged. That construction is subsidized by government funding. The residents will be supported by local social and be-havioral health services.

After 40 years Brav still enjoys watch-ing a vision become reality and is eager to embrace the next opportunity. Over four decades his businesses grew to $60 million annually, shrank and bounced back to $60 million. “We’re set to come roaring back as the market changes, and go to the next level,” he said.

What is most important to him is BFL’s good reputation. “It’s important to perform,” he said. “My relationships are based on performance. I can always look people in the eye and know I took care of them.”

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VENTANA MEDICAL SYSTEMS

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“Looking back, the construction of the Ventana Medical Systems campus was a defining moment

in the history of our company.”Garry Brav, founder of BFL Construction, told BizTucson in the Fall 2012 edition

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1. El Rio-El Pueblo Clinic 2. Carondelet St. Mary’s Hospital 3. Surgical Suite at SVRHC 4. Sierra Vista Regional Health Center5. Carondelet St. Joseph’s Neurological Institute and Women’s Pavilion

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INDUSTRIAL EDUCATION COMMERCIAL GOVERNMENT PLACES OF WORSHIP

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INDUSTRIAL EDUCATION COMMERCIAL GOVERNMENT PLACES OF WORSHIP

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1. Integrated Biomolecule Corporation 2. SEABHS-South Eastern Arizona Behavioral Health Services-Sierra Vista 3. Sentinel Peak High School 4. Joint Technical Education District 5. City of Sierra Vista Fire Station 6. Beautiful Savior Lutheran Church

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RESORT & RECREATION PARKING STRUCTURES

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1. Hon Dah Resort and Casino 2. Rancho Sahuarita Resort 3. St. Joseph’s Hospital 4. Northwest Medical Center

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CorporationsADPAdvantage Health NetworkBenjamin SupplyBrooks FiberCARFDelta AirlinesEstes CorporationGRE SprintHewlett PackardIBMMountain Bell TelephoneOsten Kimberly Quality CarePartners Health CarePaychexPlaza ClubResearch CorporationRincon ResearchTWAXerox

Certified Public AccountantsABP Arthur YoungArthur AndersonCoopers LybrandPeat Marwick & MitchellPiper JaffrayPrice Waterhouse

Banking InstitutionsArizona BankArizona Commerce BankBanco InternationalBVAA CompassCitibankCommerce BankFirst Federal SavingsHome Federal SavingsNorthern Trust

Financial ServicesAbacusColdwell BankerCarron & BlackColonial MortgageCrown LifeDavis MortgageDirectors MortgageDun and BradstreetEquitrust ResourcesFirst MortgageFirst Union MortgageGMAC CorporationGuardian Financial PlanningH.S. PickrellJohn Hancock InsuranceMidland MutualMutual BenefitsNational Life of VermontNew York LifeNorth American MortgageNorthwestern Mutual LifeNorwest Financial

Pacific MutualPrudential AdvantagePrudential InsuranceSouthwestern Life InsuranceStandard Charter MortgageSunway AssetsUnited BankVal-EquityVNB Mortgage Corp.Waterfall EconomidisWaterfield Mortgage

NonprofitsCODACCommunity Partners of Southern ArizonaCOPE Behavioral Health ServicesEl RioLa FronteraSouthEastern Arizona Behavioral Health Services Tucson Urban League

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40BizMILESTONE

TENANT IMPROVEMENTS Over the past 40 years BFL Construction has completed hundreds of major tenant improvement projects including those highlighted here.

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Realty FirmsBankers PropertiesBurke HansonCorridor Executive TitleCushman WakefieldDel Webb OfficesGrubb and EllisILIFF ThornJMB PropertiesMinnesota TitleStewart TitleTexas Gulf WesternThe Mack CompanyTitle GuaranteeU.S. Life Title

Legal FirmsBarton DuncanBilby and ShoenhairEppler Guerin & TurnerHealy & BealHirshJerry Sonenblick

Jurkowitz & KahnKimble GothreauKingston AssociatesLinden Chappa FieldsMalloy, Jones, & DonahueMorton SaullSchorr Eldridge & BangsSlutes Sakricon & RogersSnell & WilmerStreich LangWinston & Strawn

Stock BrokeragesA.G. EdwardsCharles SchwabDean WitterDunn EdwardsE.F. HuttonPaine WebberPrudential BachePrudential SecuritiesScottsdale SecuritiesShearson Lehman Hutton

Call CentersAT&TAgeisConvergysMilliken & MichaelsUnited PhysiciansUnited Plus

HealthcareCarondelet Health Network– St. Joseph’s Hospital– St. Mary’s HospitalCommunity Health SystemsHangerNorthwest Medical CenterOro Valley Medical CenterPima Heart HospitalTucson Medical CenterThe University of Arizona Health Network

Miscellaneous FirmsAmerican Board of RadiologyArizona Contract PhysiciansArizona Kidney Disease & Hypertension CentersBHP BillitonC-4 MarketingCH4M-Hill ArchitecturalGoodmans Hearing InnovationsHMW Munoz & AssociatesInterglobalJoint Technical Education DistrictKimberly ServicesMuscular Dystrophy AssociationPaul Harris TravelSam LevitzThe Olsen CorporationTransworld SystemsTucson Access CenterVentana Medical Systems

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1. 101 N. Wilmot Rd. 2. 33 N. Stone Ave. 3. Williams Centre 4. 333 & 335 N. Wilmot Rd. 5. Mary Louise Robins Elementary School

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StreamlinedBuilding Process

By Sheryl Kornman

Dave Winsor worked in home construction for 28 years be-fore he joined BFL Construction in 2008.

Though he’d worked his way up to VP of two major home-builders, after the recession hit and housing starts fell, he was laid off. A few days later, he was on the job for BFL as a con-struction manager in Green Valley for Fairfield Homes.

Today he is VP for BFL. A sister company – Preferred Apart-ment Builders – is building single-family luxury rental homes in gated neighborhoods at 11 locations in Southern Arizona.

The work requires precise production construction schedul-ing, with eight housing starts a week. Winsor said the concept is well designed and engineered to make construction move easily from start to finish. He hires the same subcontractors site

to site, guaranteeing work flow for PAB and ongoing employ-ment for the subcontractors.

PAB is completing each of the homes in about two months. Because all housing units are located at the same parcel, Win-sor is able to obtain all the housing permits at once.

“By the time the first 40 homes are built, we have all the rest of the units in the ground,” Winsor said. The schedule allows three superintendents using Smart Phones and IPads to moni-tor the construction of 184 units at once. “It’s very efficient,” he said. “Water and sewer for the entire site come online at once. Electrical is phased in as homes are completed. It’s not a classic commercial or residential product. It’s a hybrid.”

Project managers are also the project estimators and they

From left to right –Delbert D. DittmerOwner & VP, BFL Construction

Garry BravFounder, BFL Construction

Dave WinsorVP, BFL Construction

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are on the job from the start, helping to manage costs from the beginning. Throughout a project, costs are care-fully controlled.

Like Garry Brav, president of BFL Construction, Winsor concentrates on every detail. “A fifty dollar extra cost per home can be the difference between success and failure when you multiply it by 184 homes.”

The rental homes are marketed to the consumer as AVILLA in one-, two- and three-bedroom floor plans. The countertops throughout are granite and flooring is plank vinyl. Energy-efficient kitchen appliances are stainless steel and washers and dryers have a high efficien-cy rating. Clerestory windows brighten each room with natural light. The rental neighborhoods are professionally man-aged. The houses are leased as soon as they are completed.

Winsor, recently named a VP for BFL, completed his bachelor’s degree in business administration at the Univer-sity of Arizona in 1977 and has worked in the construction business ever since. He was with Richmond American for 18 years and D.R. Horton for six. He

was a VP for each company, supervising construction on thousands of homes. Winsor said he oversaw construction of a thousand homes a year for both of the home builders, growing both companies from 300 units per year to more than 1,000 units annually.

When he arrived at PAB, “we were at zero and we are now near the top in

number of permits pulled per year in Pima County.

“We have the capacity to do 500 houses in Tucson and 500 in Phoe-nix next year,” Winsor said. “Not only have we given struggling subcontractors work, but we have given them a steady flow of work. It puts them in a situation where they can hire and plan. It’s been very gratifying. I’ve been very fortunate to work for larger builders all my life and now I have the latitude to create a busi-ness environment where we don’t back charge,” Winsor said. “If a subcontrac-tor accidently breaks a window, we pay for it,” he said.

“We’ve also created a model in which the success in the occupancy rate com-pared with three-story walkups is ap-pealing to the lending institutions.” Winsor said investors were able to locate properties and commit to this luxury-home neighborhood concept early on. “I’m just lucky to be able to execute it,” he said. “I’ve always had the most sat-isfaction in providing a livable space at a cost per square foot that people can afford. And I’ve always been gratified to come up with a good cost per square foot.”

“We havethe capacity

to do 500houses in

Tucson and 500 in

Phoenix next year.”– Dave Winsor, VP

BFL Construction

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Affordable HousingSolutions

By Sheryl Kornman

Affordable housing expert Julie Culver moved from the pub-lic sector into the private to establish Partners for Housing So-lutions, a new company that creates business opportunities for investors and property owners – and shelter for low-income families, developmentally or physically disabled individuals, seniors and military veterans and their families.

Well schooled in the complexities of developing housing in a market-rate world, this work is where her heart is. Culver has two relatives who live in other states who have developmen-tal disabilities and have had to struggle to find stable housing, medical and other services.

What she is doing now will help individuals in that same situation to find a safe place to sleep, with supportive services from behavioral health agencies.

Partners for Housing Solutions can help nonprofit organiza-tions, builders and real estate investors, Culver said. It’s a win-win way to address a very real community need.

Culver formed a relationship with BFL Construction to pro-vide design-build-construction services for her projects. She knows the construction service component has the potential for problems that can derail a project. “BFL’s experience pro-vides the risk management necessary to assure project success.”

Julie CulverPresident

Partners for Housing Solutions

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Finding affordable housing is a prob-lem, especially in Tucson and Pima County, where there are more than 10,000 people on the waiting list for 5,400 Section 8 vouchers. Where do these people go for help?

This current demand started with the recession and as more and more people lost their jobs, they lost their homes and they began looking for alternative living arrangements – and that usually means rentals. As a result, prices have increased and it’s difficult to find a rental because of the demand. The fact that there are a finite number of both vouchers and rental units creates a rental bubble, Cul-ver said.

“I’m looking for new ways to create affordable housing. It’s not that there aren’t lots of units that need to be re-habbed, but my goal is to provide more than rehab. Rehabilitating existing units is important, but to be able to provide additional housing units is my focus.”

Finding the money for subsidized housing requires tenacity and research – and Culver has the right mix of educa-

tion and experience, both as a bank loan officer and risk assessment officer for the State of Arizona Department of Hous-ing, where she made sure allocations of state resources were appropriately uti-lized. She’s also completed coursework for a master’s degree in urban planning at the University of Southern Califor-nia.

“There are a limited number of pro-grams that will help with affordable housing, so I keep current on when new funding rounds are opening, how much money is available and the targeted populations. It’s a process that is ongo-ing. Maximizing resources to develop as many housing units as possible is a chal-lenge.”

Today’s affordable housing is not built as infill in parts of town where no one wants to live, she said. “The state wants housing built close to public transporta-tion and retail stores, charter or public schools with high performance ratings, and requires services and amenities be provided to residents.”

Her road to Partners for Housing So-lutions began in Los Angeles, where she

attended the University of California Los Angeles part-time to earn a bach-elor’s degree while working in banking. It took her 16 years of working and go-ing to school to get there.

During that period she worked in the real estate division of Bank of America and later as a VP of First Los Angeles Bank. “My focus was on construction loans for builders of entry-level homes.” That was more than 20 years ago. She developed the interest and desire to de-velop affordable rental housing.

Now her focus is on helping non-profit organizations create relationships between housing and the services they offer.

“More and more nonprofits are be-ginning to understand that if there is a lack of integration between housing and their services, their services are not as effective. For example, someone who is homeless needs services, healthcare and shelter in order to stabilize,” she said. “It has to be an integrated solution.”

The nonprofit has an ownership in-terest in the housing and provides com-munity support through the housing. It

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“BFL’s experience provides the risk management necessary to assure

project success.”– Julie Culver, President, Partners for Housing Solutions

becomes eligible for tax credits by form-ing a partnership or LLC with the equi-ty investor. Rental fees are set by HUD.

Affordable housing may be affordable to the renter – but there is no cost-cut-ting in the construction of this type of housing. “People call affordable hous-ing low-cost housing and that’s not true. Comparatively speaking, it still costs the same amount of money to build. It’s the rental amount paid by the tenant that makes it ‘affordable.’ Affordable hous-ing relies heavily on government subsidy to build.”

Typically, developers will set their rent and income levels between 40 and 60 percent of the area median income

so they are targeting a particular seg-ment of the population that is consid-ered low income.

“I welcome the opportunity to ex-plain the housing programs to nonprofit organizations because there is a learn-ing curve. I can provide information and some direction that will help them make a decision about entering the af-fordable housing market. The differ-ences between affordable and market rate housing, especially with a program such as the Federal Low Income Hous-ing Tax Credits, is very complex and the financial structures are very different.”

Culver points out what most experi-enced real estate investors accept – that

there is always risk associated with real estate development. But with affordable housing, it’s pretty much a win-win for all.

“Rents are kept affordable for 15 years, that’s mandatory, then 15 more years by extension. It really helps the economy. It puts people to work and provides long-term affordable housing for the community. It’s also good for the nonprofit organization – they become more invested in the community.”

She’s passionate about this affordable housing venture. “This really is where my heart is.”

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From left to right –Roger KarberReal Estate Developer

G.S. JaggiManaging Director Iridius Capital

Garry BravFounder, BFL Construction

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Luxurious Gated Homes No Mortgage

By Sheryl Kornman

Real estate developer Roger Karber’s move into luxury rental housing began 10 years ago with development of the Finisterra Luxury Rentals community at Tanque Verde and Kolb Roads.

He sought out Garry Brav, president of BFL Construction to handle con-struction. Together, they brought in in-vestor G.S. Jaggi, managing director of Iridius Capital.

Until then, most Tucson-area multi-family communities were built like caves, Karber said. They had three shared walls, little privacy and low ceilings. Most amenities were on the outside – in clubhouses, exercise rooms, community pools, spas and tennis courts.

But Finisterra broke that mold. Finis-terra apartments offered consumers an Olympic-sized pool, nine-foot ceilings, ceramic tile flooring, built-in flat-panel TVs under kitchen cabinets, fire sprin-klers, security alarms, private balconies and patios – even a three-bedroom two-bath option at 1,300 square feet.

Finisterra residents moved in as quickly as buildings could be construct-ed and remains one of the industry’s top performers today.

That success led Karber, Jaggi and Brav (now also CEO of BFL Ventures) to explore just how far they could stretch the product evolution – ultimately set-

tling on single-story detached luxury rental homes in gated neighborhoods.

Operating as Alta Vista Communities

Today fewer individuals see a home with a mortgage as their best long-term housing solution, Karber said – espe-cially when they can rent a new luxury home that is managed professionally. For their projects, the investors hired a woman-owned local affiliate, MEB Management Services, recognized for its consumer sensitivity.

Today, operating as Alta Vista Com-munities, Karber and his partners are developing 11 single-family detached luxury rental home communities in the Tucson area. The properties, which are marketed to consumers as AVILLA, are in various stages of completion.

Karber has nearly 40 years of Ari-zona real estate experience. He began in real estate while studying business at Pima Community College – on the advice of his father, a union pipefitter whose friends were helping to construct the Alaska pipeline back in the mid 1970s. The pipefitters were looking for investments and Karber’s father sug-gested Tucson real estate.

With support from these small in-vestors, Karber and his wife, Diane

Fitzpatrick, began buying and renovat-ing rental houses, then moved up to 10-plexes, and on to 20-, 36- and even 40-unit apartment buildings, primarily in the University of Arizona area. They improved the properties and sold them, mostly to California investors. They also participated in the 76-unit conversion of the Tucson Inn annex into student rental apartments supporting Pima Col-lege’s new Downtown Campus.

Karber’s early success as an entrepre-neur encouraged him and he wanted to make real estate development his life’s work. He interviewed with Roy Drach-man, Perry Bassett, George Mehl and Joe Freidheim, telling them he would work for free while studying economics and real estate.

“I just wanted a chance to learn how to be a developer,” he said.

Focusing on the ConsumerHis interview with second-generation

homebuilder Bill Estes Jr. paid off. He offered him a fulltime position develop-ing large new rental communities. His new boss told him to keep studying busi-ness but get the job done – and he did. That was 1979.

Karber’s first project for Estes was planning hundreds of apartments on a 40-acre site at Pantano Road and Fifth

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Street in Tucson. His second was plan-ning an apartment community on 76 acres at Pantano and 22nd Street. “It was a great opportunity and I was ready for it,” Karber said. He completed more than 2,700 apartments in Tucson and Phoenix for Estes, working on both the construction and finance sides.

With business partners, he formed ASR Investments, then merged it with the largest apartment real estate invest-ment trust in the country, managing the acquisition of thousands of apartment units.

And in a unique move at the time, Karber was able to broker group-rate cable contracts, using collective bar-gaining, for 80,000 apartment units in five states. With the fees from that deal, he started his own real estate develop-ment company, Karber Realty Advisors, always watching for changing consum-er needs during ups and downs in the economy.

He learned while working for Bill Estes Jr. that “you cannot lose focus on what the customer wants, what they can

afford and what it takes to truly satisfy their needs,” Karber said. “Rather than analyze what would work best for us as a company, Estes would focus on the con-sumer.” Bill Estes Sr. started his real es-tate development company in 1947 and by the time he left it as a private fam-ily owner, the company had built more than 40,000 Arizona housing units.

Growing Demand for Detached Luxury Rentals

In the early 2000s, Karber began to see that consumers shopping for rental housing were “losing their attraction to the traditional amenity packages that focus on the external” – the large club-house, exercise facilities, spas – and “no-body was giving them a choice. Con-sumers want choices. What they wanted was more amenities on the inside,” he said.

“We listened carefully and found there was a growing desire to have a detached luxury rental, where the maxi-mum amount we put into it would go inside the individual family’s home and into private rear yards and upgrades – including higher ceilings, better quality

energy-efficient appliances and nicer finishes.”

Karber saw that consumers in their late 20s, 30s, 40s and on into their 70s were less interested in a mortgage and were turning to other methods of grow-ing financial security. “The necessity of buying a house has gone away,” Karber said.

He and his investors now offer the concept of home in professionally managed new, gated neighborhoods. The rental home builder is BFL affili-ate Preferred Apartment Builders. The business brands are Aerie Development and Alta Vista Communities and the consumer brand for all sites is AVILLA. The partners are also expanding the concept to properties outside Arizona under the business name NexMetro.

By simplifying the plans for the homes, PAB is able to construct them quickly, efficiently and with precision, Brav said. GPS is used to locate utilities. This allows trenching for all the homes to be completed before slabs are poured in a production-line manner. Karber said he knew Brav’s reputation as a pre-cision builder and his experience with

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“We listened carefully and foundthere was a growing desire to have a

detached luxury rental.”– Roger Karber, Real Estate Developer

complex commercial projects such as hospital operating rooms and bio-tech facilities would be important to the suc-cess of Alta Vista Communities.

Using Technology to Speed Process

Brav said plans are digitized for si-multaneous distribution, project man-agers work with Smart Phones, iPads, and laptops, and data is stored in the Cloud so that projects move smoothly to completion in record time. Communi-cation is first and foremost throughout the process, which is supported by a solid, structured administration.

Production savings are re-invested in the home features that make the AVIL-LA product so appealing to residents.

AVILLA home sites and surround-

ing areas are landscaped with native vegetation, with an emphasis on color throughout the year. The homes’ initial exteriors were built in classic Territo-rial style, blending easily into their sur-roundings.

Newer communities are being de-signed with desert contemporary exte-riors, as part of a continuing effort to evolve the product. Each rental neigh-borhood has a community swimming pool, hot tub and ramada. Residents have covered parking and the option of garage rental.

The detached homes have private, gated backyards and clerestory win-dows atop traditional windows, similar to those in custom homes. The kitchen countertops, breakfast bars and bath-room vanities are granite, energy-effi-

cient appliances are stainless steel and full-size washers and dryers are front loading. Ceilings in all the homes are 10 feet throughout.

The first Tucson-area locations to be completed are near Orange Grove Road and La Cholla Blvd., River Road west of Oracle Road, Thornydale and Ina Roads, Sabino Canyon Road near River Road, and Tanque Verde Road at Wrightstown Road.

“They rent fast as we can construct them,” Karber said.

The developer said he still remembers how he felt as a young man moving out of his parents’ home and into his first apartment: “That apartment was my palace.” And Karber knows that what the AVILLA consumer wants most is “that same feeling in their home.”

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Sunny Future for Luxury Rental Homes

By Sheryl Kornman

Embracing new opportunities in 2012, Garry Brav and the Alta Vista Communities partners joined with Don Diamond, Ken Abrahams and Marc Sandoff to create NexMetro Commu-nities – a venture to develop and build luxury rental home neighborhoods in Phoenix and other Sunbelt cities.

As investors in Alta Vista rental home

projects, members of the new venture saw the keen consumer interest in lux-ury rental homes and the potential for expanding into other markets.

BFL Construction through its affili-ate, Preferred Apartment Builders, will build the NexMetro rental home neigh-borhoods in Arizona and provide con-struction management support in mar-

kets outside of Arizona.NexMetro’s six principal owners to-

gether have more than 200 years of experience in the development and op-eration of nearly $3 billion in real estate projects in the Southwest.

Joining Brav are Ken Abrahams, who has 30 years of experience successfully

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From left to right – G.S. Jaggi, Josh Hartmann, Don Diamond, Ken Abrahams, Marc Sandoff, Roger Karber, Garry Brav

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developing real estate in diverse region-al markets and is chairman and CEO of NexMetro Communities; Alta Vista Communities partner G.S. Jaggi, man-aging director of Iridius Capital; Roger Karber, an experienced apartment de-veloper and operator; entrepreneur and investor Marc Sandoff, and financier and developer Don Diamond

“When I first toured the rental home neighborhood and homes, I immediate-ly knew it was a winner and I wanted to be involved,” said Diamond.

To help map the future of NexMetro, Abrahams engaged a research team to examine and validate the housing prod-uct, identify key consumer demand and acceptance characteristics, and deter-mine markets where the product could be successfully deployed. The research findings inform and guide NexMetro’s plans for the future.

Built on Research & RelationshipsBecause NexMetro’s plans involve

rental home neighborhoods in markets beyond Tucson and Arizona, the com-pany is adapting the designs to suit oth-

er market conditions and local consum-er preferences. NexMetro will continue to offer discerning renters, single-story detached rental homes in gated neigh-borhoods, in highly desirable locations, featuring luxury appointments and high-end finishes, private backyards and community pools and spas.

The research also found that societal changes that have been in play for near-ly a generation, combined with the pre-vailing economic conditions that persist after the great recession, favor the rental homes. Many home renters do not want to rent a traditional single family home

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“When I first toured the rental home neighborhood and homes, I immediately

knew it was a winner and I wanted to be involved.”– Don Diamond, Partner, NexMetro Communities

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“NexMetro offers a better rental option to serve the changing way

many Americans think and feel about home ownership.”– Ken Abrahams, Chairman & CEO, NexMetro Communities

with the associated maintenance obli-gation. Furthermore, many potential homebuyers remain wary of home own-ership as a sound investment.

Abrahams cited national housing market research by Morgan Stanley which notes that these factors are “mov-ing the country towards becoming a Rentership Society.”

“NexMetro offers a better rental op-tion to serve the changing way many Americans think and feel about home ownership,” Abrahams said.

NexMetro residents enjoy uncom-promising quality with freedom from

a mortgage and maintenance, while providing privacy and a true-lock-and-leave lifestyle. One, two and three bedroom energy efficient homes have high-end finishes, including granite countertops, stainless steel appliances, upgraded flooring, private walled-in backyards and clerestory windows that flood rooms with natural light.

Researchers identified several con-sumer segments of the population that would be attracted to the luxury rental homes – including two income house-holds with no children, empty nesters/pre-seniors and financially solid work-

ing single people. As the primary deci-sion makers, women are particularly attracted to rental homes that feature privacy, luxury home appointments and professional management and mainte-nance.

Location is always important. Gated rental home neighborhoods are locat-ed in highly desirable and established residential areas – places where people want to live with nearby conveniences, services and amenities.

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Uncompromising QualityAerie Exceptional Rental Homes was

the initial luxury rental home brand created by Alta Vista Communities, consisting of partners Brav, Jaggi and developer Roger Karber. After evalu-ating the long-term potential of rental home neighborhoods and homes in Ari-zona and other Sunbelt markets and cit-ies, Alta Vista and NexMetro reviewed the Aerie brand and elected to adopt AVILLA as the future consumer brand for all existing and future rental home communities.

“We want to build a strong brand at the enterprise level, at the project level and at the consumer level,” Abrahams said. “Brand consistency is important. We want the consumer to really under-stand the continuity and integrity of this, like any well-branded product.”

MEB Management will lease and manage Alta Vista and NexMetro prop-erties. The regional firm has more than 20,000 apartments under management and 15 years of experience successfully

managing rental properties, including single-family homes in Arizona and oth-er Sunbelt states. “MEB is part of our team. They truly understand our prod-uct and are a key part of our success,” Abrahams said.

“They’ve done a terrific job leasing and managing the hundreds of luxury rental homes completed in Tucson and Marana,” Karber said. MEB has been on the job on all Aerie Exceptional Rental Homes communities developed by Alta Vista and constructed by Pre-ferred Apartment Builders.

NexMetro Communities is built upon long-term relationships and strategic partners. At the core, the partners of Alta Vista and NexMetro enjoy long-established business and personal re-lationships. In addition to MEB Man-agement, strategic partners include the Thrasher law firm, Wells Fargo Bank, Alliance Bank and numerous architects, planners, engineers and marketing spe-cialists.

“Valued relationships and teamwork are vitally important when managing a growing enterprise” said Sandoff who

has guided many growth-stage enter-prises.

Simplified Expression of DesignNexMetro also partners with munici-

palities, community leaders and nearby property owners where AVILLA neigh-borhoods are planned. The AVILLA neighborhood is a low- impact land use that can fit comfortably into estab-lished residential areas where otherwise traditional apartments or high- impact commercial uses would typically be de-veloped. NexMetro, along with govern-mental and community partners, seeks to create long- term asset value for the community as well as for its investors and lenders while providing a needed housing alternative.

The partners acknowledge there is al-ways risk in real estate investment, yet all those involved in NexMetro “have tremendous range and reach – which serves to help with risk management and protect the downside,” Jaggi said.

The construction process is one way that risk can be managed. The integra-tion of construction management into

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the ownership team provides a signifi-cant level of involvement and alignment of interests. Throughout the entire pro-cess, improvements are made to both accommodate renters’ desires and im-prove the efficiency of construction. For example, Brav said, “master bedrooms have been enlarged to accommodate a king-sized bed and establish a true mas-ter suite.”

Various industry benchmarks and metrics are used to keep work moving efficiently and accurately. GPS is used to locate utilities within one inch of

the future slab so that trenching can be completed before any pads are poured. Homes are built efficiently and to high standards by experienced subcontract-ing crews whose safety is monitored by onsite project managers. Local building inspectors are cooperative and timely, ensuring the efficient execution of each product.

“The sophistication and complexity of the product can be easily under es-timated,” said Brav. “The building sys-tems and components used to execute them guarantee a long-lasting product,”

he said.“It’s very efficient to build, to oper-

ate and to live in – and that efficiency is because of a simplified expression of design. It ‘lives’ fairly low-tech. Lift the hood and there’s a sophisticated level of planning, process and application of building methods and systems.”

NexMetro anticipates breaking ground in Phoenix and Dallas in 2014 with expansion into other western Sun-belt markets by 2015.

“Valued relationships and teamworkare vitally important when managing

a growing enterprise.”– Marc Sandoff, Partner, NexMetro Communities

BizVENTURE

BizTucson Magazine is published quarterly by Rosenberg Media, LLC.,Tucson, AZ © 2014 All rights reserved. Reproduction in whole or in part without written permission is prohibited. Opinions expressed in columns or articles do not necessarily reflect the views of the publisher.

For information regarding advertising or subscriptions, please contact Steve Rosenberg at 520-907-1012 or, [email protected]

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David WilliamsonPresident & CEOFairfield Homes AZ

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Second-Generation Home Builder

By Sheryl Kornman

Fairfield Homes AZ is developing six sites for new homes in Southern Ari-zona. For five of the projects, President and CEO David Williamson teamed with partner Garry Brav, president of BFL Construction.

Williamson worked with Brav on commercial projects and knew their combined experience would make an ideal homebuilding team. “Garry has a lot of integrity. He’s a very bright man who knows construction.”

Williamson is a second-generation de-veloper who has already left a legacy in the desert. He partnered with his father Lowell Williamson and Paul F. Oreffice, of Dow Chemical to acquire the pub-licly traded Fairfield Homes’ brand in the early 1990s.

Residential developments included more than 10,000 homes in Green Val-ley and Tucson. Fairfield in the Foothills, a community in the Catalina foothills, was one of the company’s most notable early projects.

David learned the real estate business working alongside his father. They were partners until his father died in 2012.

His dad grew up in the Great Depres-sion and studied music. But his educa-tion was interrupted by military service. Flying a B-17 mission toward the end of World War II, the plane was shot down over Germany. He spent the remainder of the war in a POW camp. The expe-rience changed him, and with strong determination, he moved on to become a successful oil explorer in the United States and Canada.

Through a serendipitous introduc-tion, he met one of the McGuire Sis-ters, Dorothy. They married and she

left the famous singing trio to raise her children, David and Rex, in Calgary, Alberta, Canada. David’s collection of his mother’s gold records and father’s WWII memorabilia, including his Pur-ple Heart, is displayed in his office.

The family moved from Canada to Paradise Valley, near Phoenix, and Low-ell began to buy land in Southern Ari-

zona. David left Vanderbilt University to join his father and learn the business of real estate.

In the 1970s, Lowell bought 2,000 acres of Rooney Ranch. On 500 acres, he built the first destination resort in Tucson – now the Hilton El Conquis-tador Golf & Tennis Resort. It featured three golf courses, 31 tennis courts, a swimming pool, hiking and jogging trails, horseback riding and fine dining.

Each room has a view of the mountains. The remaining acreage from this pur-chase became the modern-day sites for Honeywell and La Reserve.

On the eastside, the partners bought 320 acres located at the corner of Sabino Canyon Road and Snyder Road, now the gated community

Sabino Mountain.In 1987, the company purchased 540

acres in Green Valley. With more than 1,200 homes built, this is now the Fair-field Homes’ community Las Campa-nas. The company is currently building the remaining 300 of the 1,590 lots.

Homebuilding was a successful part of the Williamsons’ business ventures. From the mid-1990s through early 2000, Fairfield Homes built 250 to 300 homes a year in Green Valley. With a shift in the economy, the company took a break from developing homes and sold sites to Meritage Homes and Pepper Viner Homes in 2001.

The Fairfield Homes name and brand, however, remained with the company.

David continued with land develop-ment and land purchases. The compa-ny owns four golf courses and a hotel – the Wyndham Canoa Ranch Hotel in Green Valley. In addition, he sold the site for Green Valley’s first hospital, cur-rently under construction.

In 2008, he returned to homebuild-ing, joining with Brav to form Fairfield Homes AZ – a nod to the brand that has been widely recognized in the region for nearly 40 years. Williamson leads the business end while Brav focuses on con-struction, his expertise for the past four decades.

continued on page 208 >>>

“The J-6 Ranch is a

really beautiful place, cooler, with a higher elevation than

Tucson, at 4,300 feet.”– David Williamson

President & CEO Fairfield Homes AZ

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In Green Valley, the partners have three sites within the 6,400-acre Canoa Ranch property – the Villas with 40 lots for townhomes, the Estates with 24 lots for single-family homes and the upcom-ing Resort Villas with 28 lots. Canoa Ranch also includes a mix of commer-cial with offices, a hotel and an 18-hole golf course on the property. David is partnering with American Land Fund for a future phase of Canoa Ranch, in-cluding 1,500 home sites.

The company recently broke ground on J-6 Ranch, where they partner with Redhawk on 150 lots. The homes will be 2,000 to 3,300 square feet on 3.5-acre parcels. The area features vast grasslands and is about 10 minutes east

of Vail and 30 minutes from downtown Tucson. “It’s a really beautiful place, cooler, with a higher elevation than Tuc-son, at 4,300 feet,” David said.

With 70 lots, Fairfield Homes AZ will be one of the largest builders in the private residential golf community of Stone Canyon, located in Oro Valley. The semi-custom homes will be along the Jay Morrish-designed golf course.

Rock formations and varied eleva-tions offer a unique landscape for home-buyers – but can require special consid-erations in the homebuilding process to preserve natural rock outcroppings. “Care is taken to preserve the land-scape,” Brav said.

In addition to innovating for each site, Fairfield Homes AZ keeps an eye on

changing consumer expectations – es-pecially retirees. According to the part-ners, green-building principles, modern recreation centers and additional ame-nities that help contribute to an active lifestyle have become increasingly valu-able to homebuyers.

“Retirement is evolving. How people retired 20 years ago is not how they re-tire today,” David said.

Projects on the horizon for William-son include developing an area west of the Biosphere for a new community called Cielo. David expects to build 3,000 homes on 4,000 acres – starting in 2017. “It’s a nice opportunity for the future,” he said.

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“Garry has a lot of integrity.He’s a very bright man who knows

construction.”– David Williamson, President & CEO, Fairfield Homes AZ

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From left to right –G. S. JaggiManaging DirectorWindRock Wealth Management

Brett K. RentmeesterPresident & Chief Investment OfficerWindRock Wealth Management

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Trusted Quarterback Wealth Advisors

By Sheryl Kornman

WindRock Wealth Management is a new independent in-vestment management firm based in Tucson that seeks out in-novative investment opportunities for entrepreneurial-minded investors.

The principals at WindRock believe that the mainstream traditional stock-and-bond portfolio will fail to deliver satisfac-tory results for investors in the decade ahead. They are finding promising investment solutions beyond Wall Street for high-wealth individuals and business owners.

The WindRock founders are seasoned financial adviser Brett K. Rentmeester and successful entrepreneur and inves-tor G. S. Jaggi.

Rentmeester has been advising CEOs on investments since he was 22 – first as a manager of Arthur Ander-son’s Private Client practice, then as co-founder of a wealth management group in Chicago that grew to $3 bil-lion in assets from 2002 to early 2013. He’s a magna cum laude graduate of the University of Arizona and holds an MBA from Northwestern University. Rentmeester serves as WindRock’s president and chief in-vestment officer.

WindRock’s co-founder Jaggi is also managing director of Iridius Capital in Tucson, a private invest-ment firm offering WindRock clients exclusive access to opportunities in real estate, private lending and in-ternational cross-border investments. Jaggi previously was founder and CEO of First Magnus Financial. Rentmeester’s been Jaggi’s wealth ad-visor for many years.

They formed WindRock after “we found we had similar phi-losophies” regarding entrepreneurial investments, Jaggi said. Both invest in the projects they recommend to their clients.

“We are a unique option for investors who share our en-trepreneurial mindset,” Jaggi said. Clients are encouraged to think globally in a changing world about their financial future and look beyond stocks and bonds – to consider, among other

options, emerging real estate projects led by respected com-munity-based entrepreneurs.

Enter Garry Brav. He and Jaggi partnered in the success-ful development Finisterra Luxury Apartments, built by Brav’s Preferred Apartment Builders. WindRock clients have exclu-sive access to opportunities that Jaggi and Brav pursue through their operating company Alta Vista Communities.

Today that opportunity is AVILLA – a gated-communi-ty luxury home product being built throughout the Sunbelt states. Jaggi said this concept is striking a chord with a growing demographic of Americans who don’t want to own a home – including empty nesters, single working people and pre-se-

niors who want the freedom of renting luxury homes in communities of like-minded individuals.

“Luxury rental real estate is a great investment niche for the economic times ahead. It’s shelter. It’s funda-mental. Demand will remain strong,” Rentmeester said.

“At WindRock, we bring clients in-novative, interesting opportunities that are hard to find, that investors don’t have access to at most investment firms. We partner with well-respected entrepreneurs like Garry Brav. That’s how you find compelling investment opportunities,” he said.

“We play a trusted quarterback-adviser role, serving as a client’s ad-vocate.” WindRock works in coopera-tion with that individual’s or business owner’s team of advisers, including attorneys and accountants.

“We deal with a more sophisticated client who wants someone who can help them navigate what has become a more and more complex financial environment. By understanding their overall wealth, we become a trusted voice.”

WindRock has offices in Tucson and Chicago, serving cli-ents nationwide.

In today’s economic environment, innovative investment

“Wepartner with

well-respected entrepreneurs

like Garry Brav. That’s how you find compelling

investmentopportunities.”– Brett K. Rentmeester

President & Chief Investment OfficerWindRock Wealth Management

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solutions for wealth management are more critical than ever, Jaggi said. “We pay close attention to macroeconomics – the big picture of the world.”

To preserve wealth and make money, investors need to address two key chal-lenges ahead. “In the near term there is a struggle to find reasonable returns in a world of zero interest rates. In the lon-ger term, inflation is the major unfore-seen risk,” Rentmeester said. “Clients must position for this looming inflation-ary risk – a result of too much debt, un-sustainable spending and unprecedent-ed money printing.”

Rentmeester and Jaggi see the com-mon way of investing money as an out-

dated model. It assumes things are nor-mal most of the time. Rentmeester said the stocks and bonds world has been good for 40 years driven by declining interest rates – but stocks and bonds are no longer poised to benefit in a future of higher interest rates.

“The writing is on the wall that we will stay in a weakened low-growth world – here, in Europe and Japan,” Rentmeester said. “To counter those forces, governments are printing money – to attempt to paper over the weak-ness,” he added.

“It’s a dangerous game with a bad outcome. Policymakers are once again inflating financial bubbles and creating dangerous imbalances. While they have temporarily postponed the problems, they have failed to address the roots of

the 2008 crisis – which are still all there, only bigger.”

To protect clients from the forces ahead, WindRock advocates allocations in tangible or hard assets – investments such as precious metals, farmland and real estate.

“The better path for high-wealth cli-ents is to invest in things like emerging real estate opportunities – luxury rental homes in gated communities and farm-land in the Midwest leased to tenant farmers. Investments like these can pro-vide a more reliable return if inflation returns,” he said.

WindRock is rooted in a passion for collaboration in the spirit of entrepre-neurship, Jaggi said. “We think like busi-ness owners – because we are business owners.” Biz

“We pay attention to macroeconomics– the big picture of the world.”– G. S. Jaggi, Managing Director, WindRock Wealth Management

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Garry BravCEO, BFL Ventures

“Garry isa connector of people,ideas andfinancial

resources.”– Brenda Goldsmith, Executive DirectorEl Rio Health Center Foundation

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Building CommunityBy Sheryl Kornman

Garry Brav’s success over the past 40 years began with BFL Construction. The visionary entrepreneur has since diversified into a “family of compa-nies” including BFL Ventures – through which he invests in emerging technolo-gies developed in the region and is in-volved with a host of community non-profits.

Brav serves on the Southern Arizona Leadership Council and has for the past two years, along with other big business leaders and small business owners. The group identifies regional issues and busi-ness opportunities, and provides collec-tive leadership to improve the economic climate and quality of life in the region.

Brav supports the Science Foundation of Arizona and, through venture capi-tal activity, encourages the expansion of bioscience ventures in the community.

He participates in Desert Angels, an organization of accredited investors who meet monthly seeking opportuni-ties to invest in early stage or startup ventures in the Southwest. The more than 95 members have invested $25 mil-lion since 2000 in more than 60 com-panies.

Companies selected for funding are developing cell-based therapies for HIV, therapies for colon cancer, labware for genetics research, sports nutrition fruit-flavored energy gels, a GPS tracking de-vice children can wear. The investors are also funding commercialization of the SynCardia temporary CardioWest Total Artificial Heart. Investors have supported a biomedical nanotechnol-ogy company developing therapeutic approaches to cancer, traumatic brain injury and stroke, as well as a cryobank

that allows individuals to store their fatty tissue and stem cells for use in cosmetic and reconstructive surgeries. Desert An-gels also funds nonmedical technologies, including toys developed for children with special needs.

More than 25 years ago, Brav began fundraising for the American Cancer Society, eventually serving as develop-ment chair and board chair. He began his association with the charity when a client urged him to get involved raising money for cancer research. His first act of charity for the nonprofit organiza-tion was a stunt. He went to “jail” in an improvised cell in the basement of Uni-versity of Arizona Medical Center. He had to make successful fundraising calls to earn his way out.

“It was fun and it made me feel good,” he said. “Now, we do a lot of charitable work.”

BFL is the title sponsor for El Rio Community Health Center Founda-tion’s annual fundraising gala. BFL also supports the work of Tucson Values Teachers, United Way and other chari-ties. At one point, 100 percent of BFL employees were donors to United Way.

Brav said the construction work by BFL on six clinics for El Rio Commu-nity Health Center and for other non-profit organizations – while not a dona-tion of services – is especially rewarding for him. The new El Rio buildings bring medical services closer to the commu-nity health center’s populations.

“Garry understands the nonprofit and for-profit sectors and sees the im-portance of both in creating a thriving community. He is a connector of peo-ple, ideas and financial resources – an

out-of-the box thinker and visionary who enjoys executing projects that will have an impact on the lives of others,” said Brenda Goldsmith, executive direc-tor of the El Rio Health Center Foun-dation.

“He is an engaged business leader who understands the importance of developing a culture of philanthropy within his companies. He has been very supportive of El Rio Community Health Center and many nonprofit or-ganizations – sharing his business ex-pertise, serving on boards and being a generous donor.”

BFL also built the Joint Technical Education District school building for Pima County’s publicly funded tech-nical education programs, which help young people train for immediate em-ployment in computer science, fire sci-ence, nursing, cosmetology, mining and automobile repair. “Everything JTED touches is just outstanding,” Brav said.

In October 2013, BFL donated con-struction and related services to Edge High School, a nonprofit education or-ganization that works with at-risk youth at two school sites in Tucson. The com-pany installed new flooring and ceiling tiles, repainted, and added electrical capability for video conferencing in the school’s boardroom at the Himmel Park site.

BFL also built publicly funded fa-cilities for agencies that serve people with behavioral health issues, including Cope, La Frontera, CODAC, South-Eastern Arizona Behavioral Health Ser-vices, Tucson Urban League, Commu-nity Partnership of Southern Arizona and Primavera.

Garry BravCEO, BFL Ventures

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