Hines, Westcor, and The Ellman Companies Partner with the City of Phoenix on Much-Needed Development

A developer consortium, which includes the Phoenix office of Hines, Westcor, and The Ellman Companies, announced today an innovative public/private partnership with the city of Phoenix to develop a water infrastructure upgrade project in the Camelback Core area. The program will allow the city to improve the quality of water flow for those currently living in the area and adequately meet the water needs of the area’s growing residential and commercial developments.

In April 2005, the city first publicly discussed long-term water infrastructure needs for the Camelback Core, a popular business and residential area located at 24th Street and Camelback Road. The core is part of a larger area generally bounded by 64th Street and McDowell Road and State Highway 51and Camelback Road, where current water pressures are marginal due to an overburdened water infrastructure.

Studies showed that within the Camelback Core area there is not enough water volume to provide adequate service for new, mid- to high-rise buildings or other uses with water demands that require a pump to maintain pressures with the building for domestic or fire suppression water needs. While the city had sufficient funds to capitalize the work over a decade of incremental infrastructure upgrades, the residential and commercial growth in the area continued to move forward more rapidly than infrastructure could support. This need opened the door for a unique public/private partnership, aligning the city with some of the valley’s most active developers. The infrastructure upgrade will include approximately three miles of new water line and a 33-million gallon-per-day booster pump station.

“The intersection of 24 Street and Camelback Road is the heart of one of the valley’s most vibrant village cores,” said Phoenix Mayor Phil Gordon. “I look forward to the success of this public/private partnership on this important infrastructure project allowing the continued growth of the area.”

In July, the water infrastructure development agreement was executed. Developers, together with city management, came to an agreement that Hines would oversee the project as the lead private sector project manager, along with the Phoenix Water Services Department. As a publicly-bid process, administered by Hines as a private-sector developer, the developer partners anticipate expeditious execution of the next steps in the process, the project’s design and construction.

“City Councilman Greg Stanton has been supportive of our joint efforts with the city, and Deputy City Manager David Cavazos has pledged his support as well,” said Hines Vice President William Olson. “Hines has performed similar horizontal infrastructure projects world-wide over the years, and we are looking forward to a cooperative, team-oriented execution of the project with full support of the city of Phoenix staff and leadership groups.”

The city will take on about two-thirds of the project from 32^nd Street east to 64^th Street, and Hines, Westcor, and The Ellman Companies will help fund and develop the remaining section from 32^nd Street west to 20^th Street. When complete, the water line will extend from Camelback Road and 22^nd Street south to the pump station at Indian School Road and east to 32^nd Street where it will connect to the city’s portion of the project.

Hines and the Phoenix Water Services Department staff have identified the most efficient design and scope of work for this public-private partnership, and a budget was developed using recent engineering statistics for similar types of work completed elsewhere in the Phoenix metropolitan service area.

“One of the advantages of this public-private partnership is that it will help the city of Phoenix keep up with growth and the need for infrastructure at this key core location. The infrastructure supports both new development and existing neighborhoods,” said Reid Butler, president of The Ellman Companies’ Urban Communities Division. “This infrastructure project paves the way for new in-fill development located within the Camelback Core and modernizes the city’s infrastructure for future growth. The Ellman Companies is very pleased to be involved in this infrastructure project in connection with its ownership of the site located at 2747 E. Camelback Road, which will be redeveloped with high-end residential condominiums.”

"The success of 24th Street and Camelback Road as a vibrant core for the city of Phoenix is critical,” said City Councilman Greg Stanton. “This public-private partnership will benefit nearby neighborhoods, help stimulate the economy by generating construction jobs immediately, and help our community prosper. This innovative solution could not have been reached without the city, businesses and neighborhood leaders rolling up our sleeves and working toward this common goal."

About Hines: Hines is a privately owned real estate firm involved in real estate investment, development and property management worldwide. The firm’s historical and current portfolio of projects that are underway, completed, acquired and managed for third parties includes more than 1,100 properties representing approximately 457 million square feet of office, residential, mixed-use, industrial, hotel, medical and sports facilities, as well as large, master-planned communities and land developments.

Hines has been active in the Phoenix market since 1996. The firm developed two owner-occupied projects in the Phoenix area: the US Airways Corporation Headquarters in Tempe; and the Vanguard Regional Headquarters in Scottsdale. Hines is providing property management services for both projects, as well as the Hines-developed, 300,000-square-foot, 24 at Camelback Phase I office building, which is owned by an international pension fund. The 24 at Camelback Phase II office building is currently under construction.

With offices in more than 100 cities in 16 countries, and controlled assets valued at approximately $25.6 billion, Hines is one of the largest real estate organizations in the world.

Visit hines.com for more information.

About Westcor: Founded in 1969, Phoenix-based Westcor is a wholly-owned subsidiary of Macerich. The largest owner-manager of commercial properties in Arizona, Westcor's portfolio currently consists of over 17 million square feet of retail space at 31 shopping centers, including 13 super-regional centers and 18 community and specialty centers. The company has set the industry benchmark for ground-up shopping center development, such as Chandler Fashion Center, SanTan Village and Scottsdale Fashion Square.

In addition to responsible development, Westcor takes an integrated approach to charitable giving, using a variety of resources to make a difference in the communities, including volunteer programs, contributions and our partnership with the Step Up Women's Network, a national non-profit organization dedicated to strengthening community resources for women and girls.

Additional information about Westcor is available at westcor.com. 

About The Ellman Companies: The Ellman Companies is a privately-owned real estate and investments corporation with diverse ownership interests in 88 companies throughout the U.S., Canada and the Caribbean.

Founded in 1972, Ellman has developed, owned and operated over 12 million square feet of mixed-use, retail, entertainment, office, hospitality and residential real estate. Currently, the company is one of the largest owners of land in Metropolitan Phoenix, with over 10,000 acres in five master-planned residential communities, retail and high-end condominium and apartment projects. The portfolio also includes over 1 million square feet of Class-A office space.