Suncor Development Co.
Southwest Contractor's 2007 Phoenix Developer of the Year

By Michèle Van Haecke

Southwest Contractor has named SunCor Development as the 2007 Phoenix Developer of the Year. The firm has millions of square feet currently under development and its $1 billion Hayden Ferry Lakeside project has re-shaped Tempe. But it is the firm's human touch on projects large and small that truly stands out.

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WhileThe people at SunCor Development Co. like people.
You can see it in their projects.

The Tempe, Ariz.-based company's planned residential communities, commercial centers and golf properties share a common goal of creating environments where people may combine what they need to do with what they love to do. "By seeing every aspect of a project through to completion, SunCor both provides places to live, work and play and creates them under a common vision and a shared set of values," says Steve Betts, SunCor president and CEO. "Our customers experience a consistent commitment to exceptional results in every aspect of our projects."

The firm's residential designs resemble villages with distinct neighborhoods clustered around centrally located businesses and preserved open space, while its commercial concepts have a human scale and emphasis on mixed-use, pedestrian-friendly design.

The human touch in SunCor projects is no accident; people are the key to the company's success, Betts says. "What sets us apart most is a work environment built around who we are, not just what we do," he adds. "It's an environment of facilitating success in our people and our projects, rather than trying to force it. Our priorities are quality and customer service; a belief that if we do great work success will be unavoidable; caring about more than just the bottom line; and a spirit of cooperation, mutual support and teamwork."

Focus on group benefits lies in the roots of the SunCor family tree. The company is a subsidiary of Pinnacle West Capital Corp., which developed it from a division of the utility company Arizona Public Service in 1986. Since then, SunCor has grown from five to nearly 900 employees and has developed projects from Arizona to Idaho. According to Pinnacle West's annual report, SunCor enjoyed record net income of $60.5 million in 2006. Its net worth is estimated at $300 million and its asset base at more than $450 million, with undeveloped land holdings in the hundreds of thousands of acres.

SunCor's homebuilding sectors serves as a flagship for the company's people-centered design philosophy. Elements common to most projects include architecture reflective of an area's cultural heritage, lush landscaping and open space, a variety of products targeted at diverse lifestyles and neighborhoods whose density drops as it moves out from a distinct center.

"We have incorporated many aspects of New Urbanism in our community designs and have even called our designs New Ruralism because much of what we do takes place in smaller, partially urban areas," says Duane Black, SunCor chief operating officer. "This is especially applicable if you consider that most New Urbanism concepts were derived from older, generally smaller neighborhoods. Walkability, a mix of uses and a diverse level of housing products are fundamental to New Urbanism and are key ingredients in our communities."

SunCor completed about 800 homes per year until 2005, when the number doubled. Record annual sales and closings have included homes in the Hidden Hills community in Scottsdale, Palm Valley in Goodyear, Coral Canyon in St. George, Utah and a section of Prescott Lakes in northern Arizona.

They've also included condominium sales in Hayden Ferry Lakeside, a $1 billion, 1.95 million-sq-ft master-planned, mixed-use project on 17 acres along Tempe Town Lake. Designed by DFD CornoyerHedrick, who recently moved its headquarters to Hayden Ferry, the development will ultimately include three high-rise office buildings and about 350 condominium units that will share four towers with retail space.

"We have a longstanding relationship with SunCor," says Scot Bennett principal with DFD. "The Hayden Ferry Lakeside project is exceptional in that it has become a Valley landmark and serves as an example of excellence in commercial design and development."

Commercial space in the first tower sold for a record $53 million in 2005, and the second office tower was recently completed with design underway for the third tower.

"The people at SunCor encourage and respect creativity," says Richard Drinkwater, AIA, principal and senior designer with DFD. "They are supportive of well-crafted environments and understand the economic value of good design."

In July 2006, SunCor announced an agreement with Starwood Hotels & Resorts Worldwide to add a 14-story Le Méridien luxury hotel to the project.

The $105 million, 183-room European hotel will be topped by 44 residential units that will enjoy special access to the hotel's noted amenities and services. Salt Lake City-based Layton Construction's Phoenix office is the general contractor on the hotel, which is targeted for completion in 2009.

St. Louis-based McCarthy Building Co. has served as general contractor for every other project at Hayden Ferry Lakeside to date. The firm's Arizona operation is located within the first office tower completed on the Hayden Ferry site.

"It has been a real privilege to work with SunCor because it is such a quality-minded developer with a long-term vision," says Bo Calbert, vice president of McCarthy. "SunCor could have spent a lot less money on this project, but it was all about developing a quality product that goes beyond normal real estate development."

The mixed-use project garnered attention from the start. "We see mixed-use as the future," says Randy Levin, the Suncor's vice president of design and urban development. "Integrating uses in a complimentary and practical way is a great way to lessen infrastructure costs, create a more pedestrian-friendly environment, reduce automobile dependency and allow people to live and work in the same area."

An example is Palm Crossing, a 175-acre commercial complex that anchors the developer's Palm Valley planned community in Goodyear, a rapidly growing city west of Phoenix. It includes a 40-acre auto mall and a shopping center, plus retail, office and light industrial space.

Marina Heights is another mixed-use project generating interest in Tempe.

Planned for a 1-mi stretch of Tempe Town Lake waterfront owned by Arizona State University, the project calls for a 1.6-million-sq-ft complex to house offices, condos and retail space. The timeline for the project is still unknown because university representatives have yet to give city officials a formal plan.

SunCor often serves as projects' master developer but also primary homebuilder, commercial developer and builder and operator of amenities such as golf courses. Involvement at multiple levels is part of what makes the company successful and a good work partner, says Dave Tilson, vice president of client services for Renaissance Cos., a Phoenix-based contractor.

"Most developers fly over a project at 1,000 ft," he says. "SunCor flies over their projects at 500 feet."

SunCor also displays a willingness to take responsibility for challenges such as environmental issues, Tilson says.

Renaissance served as general contractor for SunCor's Rio West Business Park, an office and light industrial complex near Tempe Town Lake.

Renaissance was prepared to address the site's primary challenge, its previous use as a landfill, but when the time came to do so, they found that SunCor had already solved the problem.

"SunCor takes the risk out of it for you because they're on the site every day," he adds. "They monitor it for you while keeping the end-user in mind every step of the way. There's a reason that within a month of finishing, their buildings are 100% leased."

In December, Southwest Contractor's juried competition selected Rio West Business Park as its 'Best of 2006' Industrial Project.

SunCor's meticulous attention doesn't stop with the big things. In 2005, it received entitlements for Perimeter West, which will become the state's largest industrial park, to be located on 1,200 acres off Loop 303 and Interstate 10 on the western edge of metro Phoenix.

The project presented an opportunity to work with the best, says Craig Bergstrom, executive vice president with Layton Construction of Phoenix.

"We saw SunCor as a large player in the marketplace whose reputation is very good," Bergstrom says. "We finally got the opportunity to work with them and it's going well."

Layton teamed with SunCor to build Palm Valley 303, a 400,000-sq-ft cross-back facility in Perimeter West.

Communication became a vital component during the fast-tracked project's plan revisions, which numbered nearly 500, Bergstrom says. He credits SunCor's active participation in constructability reviews for the positive outcome.

"It's a simple process," he adds. "The owner, architect and contractor understand that process and want to be part of it. SunCor is a knowledgeable developer that understands you will get a better product, sooner and with fewer problems through that process."

Betts says SunCor makes complex projects seem simple because, "Our people, our values, our shared vision and a culture of passion and love for what we do set us apart from other companies. We are happy people doing what we love. We have built an organization with the kind of people who align with that way of being."

Useful Sources
For more information on SunCor Development, visit their website at www.suncoraz.com