Mountains and Trails
I fell in love with mountains and hiking almost from the first day I arrived in Arizona (1978). I drove to the base of what turned out to be Camelback Mountain, parked my van, and proceeded to bushwhack up the southeast face in my Nike tennis shoes. I now know better than to bushwhack.
I labored for what seemed like hours only to get to the top and find a scout troop waiting for me. Low and behold there was actually a trail from the other side (Echo Canyon)! And so it began.
When I was 19, my friend Dan M. and I hiked down the Bright Angel trail in the Grand Canyon to the river and back in one day. I have since hiked the Canyon many times including later doing the death march (56 mile triple rimmer) with Dan M. in about 22 hours.
The early Grand Canyon experiences, including a near death experience on South Kaibab, fueled my desire to hike further, higher, deeper, longer and in varying conditions. And so it continued.
Along the way, I discovered that running the trails, up and down, was exhilarating and added to the challenge. Occasionally I can get friends to go with me on my adventures, but many times I am left to my solo endeavors. In these instances I get to cruise at my own pace and fire off endorphins that allow my thinking to be big and my spirit to soar.
In addition to countless local trails, I have climbed/hiked/run (in no particular order)…
Mt. Kilimanjaro – Tanzania, Tallest in Africa. Start hiking at 4,888′ and summit 5 days later at 19,341′. Machame route up and coca-cola down (1 day decent). Safari too. “Bathrooms” were very memorable.
Mt. Aconcagua – Argentina, Tallest in South America. Start hiking at about 9,000′ and summit 13 days later at 22,840′. Upper Vacas route up and Normal route sown (2 day decent). Most challenging adventure yet.
Mt. Rainier – Tallest in Washington, USA. Start hiking at 5,400′ and summit the next day at 14,110′. Descend same day as summit. Guide, crampons, ropes and ice axe required. Crevasses always a present danger.
Mt. Shasta – California, USA. Start hiking at about 7,900′ and summit the next day at 14,179′. Descend same day as summit. Glissading was a dangerous blast. Crampons and ice ax required. First experience with hard shell boots.
Mt. Whitney – California, USA. Tallest in lower 48 states. Start hiking about 8,400′ and summit at 14,505′. One day up and down. 22 miles RT. Running down 99 switchbacks a total rush.
Mt. Borah – Tallest in Idaho, USA. Start hiking at 7,400′ and summit at 12,668′ (which is 5,262′ in just over 3.5 miles). Chicken Out Ridge gets its name for a reason. Ice ax and crampons suggested.
Bryce Canyon - Utah, USA. So long ago, I can hardly remember. Once with daughters and once with Dan M. Beautiful scenery and memorable camaraderie.
Zion National Park – Utah, USA. So long ago. I think it started at 8,726′ summit and drops down to 3,666′. One day round strip.
Grand Canyon – Arizona, USA. Rim 2 rim 2 rim non-stop on 2 separate occasions. First hike: Bright Angel trailhead starts at 6,792′ and goes to the river at 2,460′, then up North Kaibab trail to 8,060′, then reverse order. 56 miles RT in 22 hours. Second hike: South Kaibab route slightly shorter but took 24 hours.
Mt. Humphreys – Tallest in Arizona, USA. Start hiking at 8,800′ and summit at 12,637′. One day 9.5 mile RT. Phenomenal run down.
Pike’s Peak – Colorado, USA. Start hiking at 6,700′ and summit at 14,100′. About 26 miles RT in one day. I lost the direct trail going up and after an excursion on the gravel road managed to summit. Great music provided by ex-girlfriend.
Long’s Peak – Colorado, USA. Start hiking at 9,405′ and summit at 14,259′ (16 miles RT in one day). One of the more treacherous hikes north of Keyhole. Hiked this 2 days after Pike’s Peak.
Palm Springs Skyline Trail (Cactus to Clouds) – California, USA. Starts at 450′ and we stopped at about 8,600′ at the tram station. About 12 miles one way +8 hours. Ran out of weather and time, so no summit. Took the tram down. This may be the largest single day one way elevation gain except for rim 2 rim 2 rim.
Phoenix 7 summits (2 separate occasions) – Single day 22 miles: Papago, Camelback, Piestewa, North Mountain, South Mountain, Lookout, Shaw Butte.
In addition to these great challenges, I have ran the PF Chang’s half marathon twice, countless 10K’s, 10 milers and the Fountain Mountain Triathlon twice (finished once) which was 1.2 mile Saguaro Lake swim + 56 mile mountain ride + 13 mile run.
I am 51 now and still in love with the trails. Thankfully my heart, lungs, legs and knees remain strong. When I strap on my pack and take my first few steps on a familiar trail it feels like I am seeing an old friend again.
Every time I finish a big climb I swear I will never do another. And yet challenge and adventure are like a siren song. Is there one more ahead of me? Denali perhaps? Dunno. But never say never and keep on trekking.
Shaw Butte Senior Living readied for financing
In almost the year since my last post, a number of significant development have taken place which have culminated in Shaw Butte Senior Living becoming ready for its financing effort. A well respected local senior living management company Retirement Community Specialists led by Eric Johnston agreed to join the team and become a partner in the project.
Eric’s company was manager and a part owner in the Stratford, located north of Glendale Road and east of 19th Ave. He also is finishing up an assignment as receiver and manager for the Desert Springs which is on the campus of John C. Lincoln hospital. Both of these properties share a primary trade area with Shaw Butte and offer unique insight into market conditions and opportunities.
Having an operator/partner in tow, I reactivated the design process. Even though Visiquest had obtained the entitlements it needed, the buildings were crowding the higher slopes of the adjacent hillside and I was determined to make this footprint better. The solution was to combine the separate memory care and assisted living buildings into one. We also shortened the east/west building wings but went up one more level. The footprint now takes up one less acre and is less impactful on the hillside.
The rendering was updated to show the new and improved Shaw Butte Senior Living, but also the potential phase 2 retail/office/trailhead development. Click here to download PDF of this aerial view and a close up street view.
The scale of the project was reduced to 63 assisted living and 24 memory care units (original market study suggested 96-108 total units). AL has 10 studios, 50 one bedrooms and 3 two bedrooms. Memory Care now has two neighborhoods of 12 units each. Residents can still self-exit into the secured hillside courtyard. Common areas were redesigned to be more efficient and functional. View Floorplans.
The next step is critical – securing New Market Tax Credit financing, gap equity and incentives from the City to make this all fly. Previous posts have explained NMTCs. Without all of these incentives, it is doubtful the project can be built and its mission fulfilled. That mission is to provide supportive housing for low and moderate income elderly.
Shaw Butte Senior Living has a 67 page finance book. I will be aggressively making the rounds to lenders, investors and City departments in the upcoming weeks. Once we have the various financial commitments, construction drawings can be completed and this project should have legs.
Tags: Assisted Living, Broder, Infill retail, Memory Care, New Market Tax Credit, Phoenix Senior Living, Shaw Butte, Shaw Butte Village, Visiquest
Shaw Butte Village “ABCs”
Shaw Butte Village is a proposed mixed use senior living project at NEC 19th Ave & Cactus Road in Phoenix. It is a niche infill development that has much more to it than meets the eye.
The 7-acres (net) occupies nearly 1/4 mile of street frontage at the foot of Shaw Butte which is part of the Phoenix Mountain Preserve. About 4.5-acres is currently planned for 96 units of assisted living and memory care. The balance could be developed as additional senior living or retail/office. A bank branch on the corner would be an excellent use as the area is under-served. A mountain preserve trailhead with public parking is also an attractive possibility.
The commercially zoned land has height (3 stories) and density (26 du/acre) waivers which, in Phoenix, give it flexibility to be developed for multifamily, hotel, retail and office uses. Although the preliminary site plan is approved along with numerous variances and waivers, a developer could change the unit mix, product type or increase/decrease density to suit their needs.
By virtue of its infill location, Shaw Butte Village is exempt from City impact fees and benefits from the proximity of existing infrastructure. Its mature market area has over 140,000 & 430,000 people within a 3-mile and 5-mile radius respectively. Nearly 30,000 cars per day travel past the site and it is on the “going home” corner.
In addition, the site is at the very northern tip of a census tract that qualifies for New Market Tax Credit financing. This is a powerful tool that, if structured correctly, can offer 15-20% mezzanine financing (with below market interest rate) which is potentially forgiven after 7-years. This significantly lowers the cost to develop and provides substantial quasi-equity to the capital stack.
In a perfect world this project will be financed with a HUD 232 loan, although this has yet to be done in conjunction with New Market Tax Credits. We are diligently exploring the possibility.
Last, but certainly not least, the Shaw Butte Village is across the street from the well occupied 550 unit Christian Care CCRC. Their campus is predominately independent living with some antiquated assisted living and SNF. Shaw Butte Village was designed to compliment the Christian Care offering and we anticipate a powerful symbiotic relationship between the two communities.
For more information, click to download the informational PDF or contact Joel Broder at 480-767-1330 and jbroder@vqholdings.com.
Tags: Assisted Living, Broder, Memory Care, New Market Tax Credit, non-profit healthcare, Phoenix Senior Living, senior living, Shaw Butte, Shaw Butte Village, Visiquest
CITY APPROVES PRELIMINARY SITE PLAN
It has been a long road, but on Thursday, January 27, the City of Phoenix Development Services Department approved the Shaw Butte Village preliminary site plan. Of course there a few contingencies, but nothing I did not expect. The official approval report “to-come”.
This review and approval came after 3 pre-application meetings, 1 rezoning, 1 zoning modification, 3 variances, 2 technical appeals and a grading waiver. An abandonment, final plat, working drawings and CC&R’s are still ahead.
We have retained CB Richard Ellis to engage in a national marketing campaign to help find a suitable partner or developer for the assisted living and memory care component of the project.
We have also asked the City DSD staff to advise us on the possibility of taking the “wings” of the assisted living development up one additional story while at the same time shorten their depth. This would effectively pull the buildings down the hillside, helping to ease tensions with the hillside preservation community and reduce development costs.
A favorable interpretation of what a “story” is in the context of our sloping hillside condition is required. Hopefully if we get a favorable determination, we will be allowed to proceed on a design modification (in the construction drawings phase) without going back through the preliminary site plan review process. Can you say “Substantial Conformance”?
To be continued…
Tags: Assisted Living, Broder, Memory Care, New Market Tax Credit, Phoenix Senior Living, Shaw Butte, Shaw Butte Village, Visiquest
Shaw Butte Village Preliminary Site Plan Submitted, Finally!
Yesterday was a “red-letter day”. After starts and fits, convulsions, excitement, disappointment, numerous challenges overcame and more than $150,000, we submitted the Preliminary Site Plan to the City of Phoenix for review.
Preliminary Site Plan
The plan (with 19th Ave on top) depicts a first phase of 64 assisted living units and 32 memory care units snuggled up against the North Mountain Preserve. The second phase, shown as a blank place holder in the submitted plan, is targeted for 12,000 square feet of retail/office and a bank pad. The third phase could be a trailhead and parking for what I hope will be a future hillside trail or two. See the renderings below (showing 19th Ave on the bottom) for a depiction of what all three phase might look like.
Aerial Rendering of Phases 1-3
With any luck, we will meet with the City in the next 6-8 weeks and receive the green light to move forward with our first phase plans. At the same time, we will discuss the possibility of shortening the wings of the assisted living building and building up one more level (just on the wings). This would allow us pull off of the hillside quite a bit in exchange for going more vertical. In order to accomplish this, we would need an interpretation from the City that these plan changes would comply with the zoning stipulation height/story restrictions.
In other matters…failing to get Christian Care to be part of Shaw Butte Village, we enlisted the help of CB Richard Ellis (NYSE:CBG) to assist in locating a suitable senior living/healthcare developer to partner with us, or alternatively, buy the AL/MC site outright. This nationwide marketing effort should begin in earnest by mid-January.
Tags: Assisted Living, Broder, Infill retail, Memory Care, New Market Tax Credit, Phoenix Senior Living, Shaw Butte Village, Visiquest
PHOENIX DAB OVERTURNS CMR DECISION ON GRADING WAIVER
Shaw Butte Village can now submit preliminary site plan for approval.
On November 19, 2010, the City of Phoenix Development Advisory Board (DAB) heard my appeal of the City Manager’s Representative (CMR) decision to deny my request for a Shaw Butte Village grading waiver. The DAB voted 9-3 in favor of my appeal.
This was the last technical impediment, that I know of, before I can resubmit my preliminary site plan for City approval. The decision by the DAB allows me to grade 100% of the property. Before the decision, I was only allowed to grade 35% of those areas where the slope exceeded 10%. In Shaw Butte Village’s case those sloped areas occupied about 25% of the property! Without the grading waiver, the development would have likely not been feasible.
My argument to the DAB had two parts. The first part: there was a long standing City policy that exempted lots from the Hillside Ordinance when they contained less than 1/3 of their area in +10% slope. I was advised early on in the process about this alleged policy and it was confirmed (and not disputed) throughout the rezoning and early Preapplication processes. I believe the City planners were confused about the Policy as well. It was created by a disconnect between the Zoning and Subdivision ordinances. Although the DAB was sympathetic to my plight, and some members suggested this confusion needed to be addressed by the Planning department, the DAB held that there was no such exemption either by policy or code.
The second part: I argued that I needed the waiver to effectively develop the property due to the narrowness of the site and technical site plan constraints having to do with proposed uses. Again, while they were sympathetic and supportive of the project, the DAB could not find my argument as justification (per the ordinance) that allowed them to overturn the CMR’s decision.
But the chairman of the DAB, a former CMR himself, skillfully explained to the board (and I am embarrassed to say – me) what the ordinance did allow the board to consider in making a favorable decision. After considerable questions, answers and discussion, the DAB found that the CMR did not fully consider one or more of the hardships contained in the ordinance that would have resulted in a favorable decision to grant the grading waiver. And consequently, they overturned his decision.
I am pleased to say that the DAB was one of the most intelligent and professional bodies I have come in contact with at the City. Their chairman, Larry Litchfield, was a master facilitator. He had a superb grasp of the issues and the process, not to mention a great temperament. Whichever way the decision would have gone, I can honestly say that they exhibited care, thoughtfulness and common sense in their deliberations.
The CMR, Mo Glancy, was always the consummate professional. He too has a great temperament. Although I did not like or agree with his initial denial of my grading waiver, I could not disagree with the way he conducted himself. And he did leave the door open for the DAB to reverse his decision. Even the planner, Steve Noblet, who is my team leader on this project showed up at the DAB meeting to sincerely wish me luck and show his support for the project.
As many people know, I can be a passionate fighter for my projects and my positions. I do not possess the gift of great temperament that so many City officials and staff possess. I hope they know I do not take their adverse positions personally. And I hope they understand and respect my determination as well.
But I will close on this note. If I am to be successful in attracting New Market Tax Credits for this catalytic infill redevelopment project and get the balance of the financing accomplished, I need the support and participation of the City (financial and otherwise). This will take active leadership and vision from several City departments, the Mayor and the City Council. It’s game on.
Tags: Assisted Living, Broder, Memory Care, New Market Tax Credit, Phoenix Senior Living, Shaw Butte, Shaw Butte Village, Visiquest
New Market Tax Credit Conference
Aka Rocket Science Conference
10/25/2010
Last week, I attended the New Market Tax Credit conference in Chicago. The last session was a panel of tax lawyers, a tax accountant and an investment banker. It dawned on me that this is what a conference of rocket scientists was probably like. X+y2/4mc=?
The room was filled with some extremely smart people. It took me back to my days of partnership taxation class at ASU. And just like 1981, I paid rapt attention.
I was at the conference to learn what I could in furtherance of financing Shaw Butte Assisted Living and Memory Care. By the time I left, I had clarity on what needed to be accomplished and how. Let the heavy lifting begin.
One of the additional benefits of attending the conference was how nice it was to be among a group of people for whom mission-driven work was their livelihood and their pleasure. Sure the conferees were in business to make money, but there was more to it than just that.
The same can be said for the Assisted Living and Memory Care business. Consequently, I am rather enjoying the challenge of doing a mission-driven project.
One last take-away from the conference — Shaw Butte Village has the potential of being a true mixed-use catalytic redevelopment project. It could not only include the assisted living and memory care but retail, medical office and trailhead parking as well.
Tags: Assisted Living, Memory Care, New Market Tax Credit, non-profit healthcare, Phoenix Senior Living, Shaw Butte, Shaw Butte Village, Visiquest
Village at Surrey Hills
As beautiful today as the day I married her.
Over the weekend I drove out to Cave Creek to have a look at the Village at Surrey Hills. I was pleasantly surprised.
The development had held up exceptionally well. All of the many details I had put into the project were still vividly on display. And the quality showed through. The fences had not cracked. The paint had not peeled or rusted. The stone looked gorgeous. The views were still breathtaking.
There were a few dramatic differences though. The sign at the entrance said something like, “comfortable elegance from the 300’s”. And by my count there were 44 condos under construction. That is 2/3 of the revised site plan.
It appears V@SH had implemented my proposed restructure by increasing density and going to stacked flat 4-plexes. At least so it appeared, with underground utilities installed, some foundations poured and the start of framing on at least one building.
Kudos to the new owners for execution. I cannot wait to see the new construction finishes and the happy homeowners enjoying “the life they deserve.” Hey — that was my tagline!
Tags: Village at Surrey Hills, Visiquest
One Step Closer to Reality
Hurdles remain.
Last month, Visiquest had two more hearings at the City in an effort to fine tune the Shaw Butte Village entitlements. We were successful in both efforts. The zoning adjustment hearing reduced the rear yard building setback to 15’ as requested. The planning hearing made several changes to the zoning stipulations as requested, the most important of which gave us greater grading flexibility on sloped areas.
Unfortunately, we now need a grading waiver (yes, another public hearing) to allow us to grade the rear yards per the site plan which was approved in the planning hearing. After that, we have to take our preliminary site plan back to the development services department for approval.
The Phoenix Mountain Preservation Council (PMPC) objected to our requests in both hearings. This was based on their zero tolerance for grading slopes above 10% in contravention of the Hillside Grading Ordinance. I understand and respect their position. However, the slopes in question make up a small percentage of the property, and we intend to mitigate the visual effect on the hillside and the view from the streets and neighboring properties.
On balance, this project will make a dramatic and much needed improvement to the neighborhood. Still, we have some convincing left to do.
Also last month, we received our Revenue and Expense Appraisal from the national consulting firm Tellatin, Short & Hansen. The study showed significant excess demand relative to supply for assisted living and memory care both in the private pay and Medicaid waiver categories. Based on the various revenue, expense and absorption projections from the appraisal, Shaw Butte makes sense to develop today. Returns on investment looks good.
So our “book” is now done and out on the street. It includes all the technical, market and financial data for a prospective operator or financier to evaluate this +$20,000,000 project. We are aggressively seeking a non-profit operator to partner with us in this development. Said operator may need little to no equity if we are successful in attracting New Market Tax Credits. To that point, I will be in Chicago at the Novogradac & Company New Market Tax Credit conference in mid-October.
The Executive Summary, project “book” and the appraisal are available for review by qualified prospects.
Tags: Assisted Living, Memory Care, New Market Tax Credit, non-profit, non-profit healthcare, Phoenix Senior Living, senior living, Shaw Butte, Visiquest
City shows support for Shaw Butte Village trailhead
I was excited to receive a letter today in the mail from the City of Phoenix Parks Department. In it, Director Dale Larsen writes that the City is supportive of a trailhead location within our Shaw Butte Village development at 19th Ave & Cactus Road. Visiquest wants to create a shared parking lot for the trailhead that would enhance the mixed use nature of the project.
Our vision would include a new trail leading to the top of Shaw Butte which could connect to the existing Shaw Butte trail (on the east). The creation of an “over and back” trail to 7th Street is very exciting for an old trail runner like me.
For those readers who may not recall, Visiquest owns the 9 acres at the NEC of 19th Ave & Cactus Road in Phoenix, backing up the Phoenix Mountain Preserve. It is zoned C-2 commercial with a waiver allowing 3 story height and 26 unit per acre in multifamily development. We are completing the entitlements on 5.5 acres for 64 units of assisted living and 32 units of memory care. The remaining 3.5 acres is being subdivided into 4 retail and office pads.
The retail component of this project would benefit from the extra neighborhood traffic generated by the trailhead.
3D Rendering in Progress
Visiquest intends to sell the senior living land to an owner/operator. Our sister company, Niche Residential, expects to vertically develop the property thereafter. The retail/office portion is also available for sale and/or development.
Tags: Assisted Living, Memory Care, non-profit healthcare, Phoenix Senior Living, senior living, Shaw Butte, Shaw Butte Village, Visiquest
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Joel Broder is CEO of Visiquest, an Arizona real estate investment and development company.
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