REAL ESTATE NEWS

By Craig Willett

There are not many individuals who have the ability to pick the “tops” of markets nor the “bottom” of markets. Don’t you ever wonder why so many people are buying stocks when the market is up? Why don’t people rush out and buy investments when they are tumbling? The elements of supply and demand dictate that very action, markets move higher based on demand and scarcity. Markets move lower from lack of demand and or oversupply of product. With the bidding wars pushing home prices up, the next move for office ownership will be up. The uptick in market activity for completed shell buildings is the highest it has been in nearly two years. With low interest rates and the drastic reduction in office prices – nearly 40%, the renewed demand is going to cause scarcity of well located office space. The weak businesses and business operators have closed their doors as victims of the economic downturn.

The time to buy office space is now. While nobody is perfect at picking bottoms, the decision to wait any longer to buy your next office is not likely to be rewarded with lower prices or costs. With the interest rates historically low, and all of the money being pumped in to revive the economy, a major uptick in rates in the next 12 months is likely. This event will increase your monthly payment (cost of ongoing ownership). Many banks have pulled their loans from developers not allowing them to finish buildings they have started. The uptick in demand and the lack of construction will leave very few choices for well-located office space.

While nobody is perfect, now is a great time to buy and the chance is high that you will reward yourself with lower payments than you would by waiting and greater appreciation by taking advantage of the economic circumstances that have lead to a 40% reduction in prices. Buying the right office space at the right time will bring great rewards.

The East Valley Tribune reports, “More than 10,000 people moved to town during the year that ended July 1, 2008, making it the fourth fastest-growing American community of more than 100,000 people over the past year.”

Read the full article at: http://www.eastvalleytribune.com/story/141166

By Rajiv Kapadia (rkapadia@spgstudios.net)
TI Architect

Many business owners, while aware of the numerous advantages of having a custom designed space, are often hesitant to embark upon the tenant improvement process. Perceived deterrents are often cost, time and unfamiliarity with the process. The following article attempts to shed some light on these issues and thus assist the owner in objectively determining the best course of action for their business.

The process ideally begins with an initial (often no-cost) consultation with the architect who will obtain the specifics of your project from you. This will generally include information such as project size, location, target budget, timeframes, special considerations, services desired, and so forth. Based on this you will be provided with a fee proposal and contract. You can elect to hire the engineers separately but you will almost always be better served through a single contract with the architect for both the architectural and engineering work. For a typical tenant improvement, an architect will hire mechanical, plumbing and electrical engineers as sub-contractors. On occasion, you may require the services of a structural engineer, fire-protection/fire-alarm specialist, or other specialists, depending upon the complexity of your project and the rules of the governing local jurisdiction. The architect should be able to advise you regarding these. A single contract generally makes the architect your single-point contact for all architectural and engineering issues and holds the architect accountable for the performance of his or her sub-contractors. Once you have hired the architect you will need to provide him or her with the “as-built” information, which is generally copies of the existing building plans in hard or softcopy format.

You will also either provide an architectural program to the architect, or else use his or her services to help you establish one. This is a list of your requirements and can be either a brief summary of the desired spaces and their relational dependencies, or a detailed listing of these along with other factors such as required performances of certain building elements. Put another way, it can be a simple count of rooms, their functions, and their desired proximity to one another. Or it can be as detailed as a room-by-room analysis identifying specifics such as the wall against which certain equipment will need to be installed, so that the architect knows to give you the right amount of power at that location etc. It can also be intangible items such as ensuring that certain rooms have sound privacy whereas others have a view of the exterior landscaping, which might translate to increased insulation in the walls and rooms oriented to a specific direction. The architect will then create one or more customized space plans for you, based upon these criteria.

Thereafter the process follows an iterative loop whereby the architect refines the space plan based on your feedback until such time as most, if not all, of your requirements are met and the architect is fairly confident the plan is approvable and constructible, barring any unknowns. Alternatively, it may not be possible to meet all your requirements for a number of reasons, in which event you will have either revised your requirements or agreed to proceed further on an “at-risk” basis.

Once the space plan has been finalized and marked by your approval, the architect will proceed with the construction documents. This usually involves creating the technical documents that explain to the local municipality how code requirements are being met, as well as establish the construction systems and materials for the contractors so that they may construct to the specified minimum standard. All of the engineering is completed as part of this process.

Once the construction documents are complete, they are submitted to the reviewing jurisdiction (usually city), which checks for compliance with locally adopted codes and ordinances. The plan-review officials usually will generate a list of comments or questions wherein they may reject certain portions of the documents, request further clarifications, and/or impose additional requirements. The architect, along with his or her engineering team, will review the comments and respond appropriately. Any changes stemming from such comments that involve a substantial deviation from your requirements generally should be brought to your notice. These revised construction documents are then resubmitted for second review, at the end of which either a construction permit is granted or else a second set of comments is issued by the city. On some occasions a third or, rarely, fourth set of comments may be issued, but they are generally of smaller magnitudes than previous versions, especially on smaller sized tenant improvement projects. Once the city approves the construction documents and issues a construction permit a general contractor can usually begin construction on the project immediately.

As an informed owner, the design, engineering and permitting process does not need to be an intimidating process subject to guesswork, but rather an inclusive forum with a predictable outcome in sync with your tastes, pocketbook, and calendar.

Rajiv Kapadia is a registered architect with 20 years’ experience. As principal of SPG Studios, he has competed more than 120 medical, dental, and office projects. Examples of his work are available for viewing at www.spgstudios.net.

FOR IMMEDIATE RELEASE

Gilbert, AZ (February 18, 2009)— UTAZ™ Development announced today the Seller Carryback Program, a plan to help medical practitioners and small business owners reduce the amount required for the down payment in order to purchase office space. “The Seller Carryback is a plan whereby UTAZ™ will finance up to an additional five percent of the total project cost of new office space,” Craig Willett, UTAZ™ President and CEO revealed, “effectively reducing the down payment by half for an SBA Loan.”

Current SBA loan guidelines allow up to ninety percent financing for medical practices and small businesses. Couple that with the five percent carryback offered by UTAZ™, and the loan to value ratio totals ninety-five percent—a very favorable position for doctors and business owners with limited liquidity or a desire to leverage others’ money. This allows for business owners in these uncertain times to reduce the amount of capital they need to invest allowing them to keep more of their capital to weather the current economic times.

With yesterday’s approval of the stimulus package, all government SBA loan fees are now temporarily waived, making it more desirable for SBA lenders to provide financing. “The financing is available, rates are low, prices are great,” affirms Willett. “With only five percent down, there has been no better time to buy while holding onto more of your savings or capital.”

The Seller Carryback Program continues until April 30^th, 2009 and is available at 10 UTAZ Professional Village™ locations, including Gilbert, Chandler, Queen Creek (Pinal County), Sun Lakes, and Casa Grande. For more information call Kyle LeSueur at (480) 304-7477.

UTAZ™ Development Corporation is the creator of the “Professional Village” concept, uniquely designed to increase revenue to small businesses and medical practices that purchase offices in a Professional Village. Since 1997, UTAZ™ has developed more than 30 unique commercial office properties in the Valley. The Professional Village design elements combine visibility, prestige, exceptional locations, ample front door parking, and convenience to offer bottom-line success to small business owners, professionals, and medical practitioners.
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Banner Gateway Medical Center, near the Gateway Medical UTAZ™ Professional Village and Vista Quinta UTAZ™ Professional Village added 36 beds for a total of 176, according to the Phoenix Business Journal. See the full article at http://www.bizjournals.com/phoenix/stories/2009/01/12/daily38.html.

One of Gilbert’s most popular and successful OB/GYN offices has recently expanded to better serve patients in south Gilbert, south Chandler and Queen Creek. Valley Women for Women, a full-service, all female OB/GYN practice has opened a new 10,000 square foot office in UTAZ™’s, Mercy Point Medical Center Located at Val Vista Drive and Melrose Street just South of the San Tan 202 Freeway and the Mercy Gilbert Medical Center in Gilbert.

According to Dr. Mia Van Eken, who co-founded Valley Women for Women with Dr. Denise Belisle, more affordable space was available nearby but lacked the appeal of the single-level UTAZ™ layout. “We really place a premium on both comfort and convenience for our patients,” she said. “We didn’t want women who are expecting or visiting with small children to have to negotiate stairs or elevators.� In addition to its proximity to the hospital, we chose this building because it’s single-level and has plenty of parking right outside our entrance.”

“You can really tell this office was designed by women for women,” Van Eken said.� For a more relaxing ambience, halogen lighting is used in the reception area, and each of the four check-in desks is positioned to ensure privacy.� A curved wall with large flat-screen televisions give the space a more residential character, complemented by rich, wood paneling. The lobby’s restroom is outfitted with a changing table, and bathrooms are equipped with “pass throughs” so patients needn’t go outside with urine samples.

Beyond the reception area, each of the 18 exam rooms has been laid out so that the beds are pointed away from doors, another measure to respect patients’ privacy. � The ultra-sound room has a large-screen TV so the whole family can see and there’s a special “non stress testing” room outfitted with an oversized, leather reclining chair, flat-screen TV and low lighting to enhance relaxation.

In addition to co-founders Van Eken and Belisle, the staff includes four other doctors, five nurse practitioners and a physician’s assistant.� Services include prenatal care, delivery, postpartum care, in-office colposcopies, endometrial biopsies, LEEP procedure, Cryotherapy, Well Woman exams, med spa, in office lab services, 3/D and 4/D Ultrasound and more.

For more information, call 480-782-0993 or visit www.valleywomenforwomen.com

UTAZ™ Senior Vice President of Community Development & Business Affairs, Terri Tobey was interviewed by KFNN Radio. During the 10-minute on-air segment, she discussed UTAZ™ Development’s continued success, crediting founder Craig Willett’s vision and his unique “own for less than rent^sm” business model which helps business professionals build equity for retirement through ownership in a UTAZ Professional Village™.

On June 3, UTAZ™ Development broke ground on the Maricopa Grand UTAZ Professional Village™ on the northeast corner of Desert Greens Drive and Smith Enke Road. Additionally, the Gilbert-based commercial developer has been awarded (in a unanimous City Council vote) the contract to build an 8,000 square foot public library—the city’s first—on the site, which will include more than 60,000 square feet of office space in 16 buildings. Offices will vary in size from 1,500 to 8,000 square feet and are expected to be complete in 2009. “There are few buildings of greater, long-term civic value than a first-class library,” said UTAZ™ president and CEO. “We are very honored to be selected for this project and look forward to unveiling a beautiful and much needed new facility next year.” Marciopa Community Services Director Marty McDonald plans to devote an area of the new library to small business, providing educational materials to help owners and entrepreneurs navigate the complications of owning a business, which dovetails with UTAZ™ Development’s core mission: helping small business owners. “We have had great success developing a superior product that allows small business owners to enjoy beautiful office space while realizing the benefits of ownership,” Willett said.

Consistent with other UTAZ Professional Villages™ (there are 36 in all), the Maricopa Grand UTAZ Professional Village™ will feature high quality design, distinctive architecture, abundant front door parking and monument outdoor signage—all designed to increase aesthetics and, ultimately, revenues. The complex will be ideally located adjacent to the Rancho El Dorado master-planned community as well as several community golf courses. The surrounding area has 4,000 existing homes and plans for an additional 4,000 in the near future.

On Thursday, May 22, UTAZ™ Development broke ground on the Mountainwood UTAZ Professional Village™ on the southeast corner of 164th and Riggs Road in Gilbert. This marks the company’s 20th project in or adjacent to Gilbert, and brings to just over 1.7 million the square footage UTAZ™ has developed thus far.

The Mountainwood UTAZ Professional Village™ will offer more than 47,000 square feet of office space, ranging in size from 2,000 to 9,000 square feet. The village will have 9 buildings featuring six architectural styles.

Consistent with other UTAZ™ professional villages, Mountainwood will enjoy a dynamic location in an area expected to double in population by 2011. Adjacent to the new Adora Trails master-planned community and the upcoming Greer Towne Center, the Mountainwood UTAZ Professional Village™ is also near established communities including Trilogy and Seville, a number of schools, and 10 minutes from the Mercy Gilbert Hospital. “We are thrilled to be developing our 20th project in the city we call home,” said UTAZ™ president and CEO Craig Willett. (Founded in 2002, UTAZ™ is headquartered in Gilbert.) “We are confident that this highly visible, accessible location in such a growing part of Gilbert will do nothing but help the medical practitioners and small business owners we serve strengthen their bottom line.”

Moutainwood UTAZ Professional Village™ is expected to be completed by late 2008 / early 2009.

For sales information, contact UTAZ™ at 480-776-3500.

On Thursday, March 27, UTAZ™ Development held groundbreaking ceremonies for the Visa Quinta UTAZ PROFESSIONAL VILLAGE™ near the southeast corner of Greenfield and Baseline roads. This marks the development company’s nineteenth project in or adjacent to the Town of Gilbert.

Vista Quinta UTAZ PROFESSIONAL VILLAGE™ will offer more than 62,000 square feet of space for sale or lease and will include 12 buildings. Office suites will vary in size from 1,500 to 10,000 square feet.

The location is near two hospitals: Banner Gateway Medical Center, which opened in September 2007, and Mercy Gilbert Medical Center, which opened in 2006. Medical practitioners who have purchased or leased in other UTAZ™ Development locations have reported increases to their bottom lines. The Vista Quinta project will no doubt have the same result for its owners. “Vista Quinta UTAZ PROFESSIONAL VILLAGE™ is in an outstanding location with easy freeway access,” says Craig Willett, president and CEO of UTAZ. “Small business professionals looking to amplify their visibility and build equity by owning their own office building will find this a highly desirable location where business is continuing to thrive.”

The Vista Quinta UTAZ PROFESSIONAL VILLAGE™ is now pre-selling.

For Sales Information Contact:
Terri Tobey at 480-776-3500
or 480-544-5865 mobile