REAL ESTATE NEWS

1. Scarcity - “Don’t miss out”

a. Premium locations are selling.
UTAZ frontage inventory has been reduced by 37% in Q3 2009
b. The Southeast Valley is the only Arizona submarket that experienced positive absorption in 2Q09
c. New office construction has virtually halted
d. Absorption increased from 6,437 SF 1Q09 to 211,732 SF 2Q09

2. Affordability - “Buy low”

a. Prices have dropped over 30%
b. Prime rate at its lowest since 1955
c. Interest rates expected to increase
d. Every half percent hike equates to ~$10/sf loss
e. 95% financing available

3. Equity - “Pay yourself first”

a. Asset (ownership) vs. Liability (leasing)
b. Save over 30% compared to leasing
c. Future value of an office vs. future value of a lease

Is it time yet?

UTAZ Development
480-304-7477

Sources
1a, 2a: UTAZ data, 2b,c,d: Cushman & Wakefield 1Q & 2Q09 Report, 2b: http://www.wsjprimerate.us/wall_street_journal_prime_rate_history.htm, 2c: http://mortgage-x.com/general/indexes/prime_rate_forecast.asp, 2e: http://www.utaz.com/news/2009/02/18/when-money-is-tight-utaz-eases-the-burden/, 3b: http://www.utaz.com/buy-vs-lease-office/

Gilbert – Ironwood Gilbert LLC in Paradise Valley (Ironwood Cancer and Research Centers, Dr. Parvinder Khanuja, principal) paid $1,825,250 ($175 per foot) to purchase a 10,430-square-foot medical office building located at 3855 S. Val Vista Drive in Gilbert. The seller was Mercy Point Medical Center, Inc., an affiliate of UTAZ Development Corporation in Gilbert (Craig Willett, president). The seller was represented by Kyle LeSueur of UTAZ Real Estate Corporation in Gilbert. The building sold in shell condition. The buyer intends to occupy with Ironwood Cancer and Research Centers, which has multiple valley locations including Chandler and Mesa. UTAZ is pleased to welcome Ironwood Cancer and Research Centers to the Mercy Point Medical Center.

Gilbert – MDNB LLC in Gilbert (Dr. Tim Bryan, principal) paid $476,084 ($180 per foot) to purchase a 2,648-square-foot medical office building located at 4365 E. Pecos Road in Gilbert. The seller was Power Ranch Professional Village Development LC, an affiliate of UTAZ Development Corporation in Gilbert (Craig Willett, president). The buyer was represented by Sheila Bale of Prudential CRES in Scottsdale. The seller was represented by Kyle LeSueur of UTAZ Real Estate Corporation in Gilbert. The building sold in shell condition. The buyer intends to occupy with a family practice. UTAZ is pleased to welcome Dr. Tim Bryan to the Power Ranch Professional Village.