Office Warehouse Condo Construction: Frequently Asked Questions

• The interest rates are so low and loan terms are so flexible that a business owner can fix his or her overhead for 25 years and have a monthly payment lower than the local lease rates. No more rent increases or landlords to deal with!
• A business owner can also gain an incredible tax advantage by deducting interest costs.
• Also, have you ever tried to sell a business without the real estate? What is good will really worth? It is often much easier to sell when the location is included in the transaction and the new owner doesn’t have to deal with changing lease terms or moving.
• There are also great benefits in building equity in the unit(s) as you pay the monthly mortgage payment. This equity has the potential to increase further as the building’s value goes up over time.

How does the condominium concept work?
The condominium concept allows individual owners to control and predict their overhead. Each condominium owner pays a monthly fee to an owners’ association. The association pays for water, sewage, insurance, and landscaping maintenance. In addition, if the association so chooses, a reserve is built up for later repairs to the road, parking area and other common areas adjacent the building. By having the association handle these issues, expenses are minimized and the individual condominium owners do not have to worry about administrative headaches. In addition, common ownership lowers the cost of repairs and maintenance by sharing the expense among all owners compared to the cost of owning a freestanding building, where all expenses are the sole responsibility of the owner.

At the completion of the building, the developer will meet with the owners and set the initial association fee based on past experience and the site evaluation. Typically, past projects have dues ranging from $120-$150 per month, per unit. After the initial fees are set the developer will turn over all aspects of management and maintenance of the owner’s association to the purchasers. This will happen at closing. The owner’s association then has the ability to adjust the dues according to their own assessment.

Is this the best office/warehouse location in town?
The I-25 corridor is the hottest location for industrial properties in Albuquerque. The development team has been able to purchase high-priced, prime real estate and produce affordable condominium units that are ideal for the small business owner. Prime commercial real estate that is priced on a per-square-foot basis is typically very expensive, as is the cost of constructing a freestanding building. The costs are often more than a small business owner can afford. You now have the opportunity to own your office/warehouse in a prime location!

Can I design my office/warehouse to suit my particular business needs?
Yes! Because we pre-sell most of our units, we have the flexibility to design each unit to match our client’s needs.

Can I make changes to my design throughout the construction process?
Yes. We have a lot of flexibility; however, if changes occur to your plan after signing the Purchase Agreement and/or once construction on your unit(s) starts, you may be billed additional architectural fees and building costs. Additional costs will be agreed-to by all parties before services are rendered.

How do I finance my office/warehouse?
We have considerable experience with Small Business Administration (SBA) financing and we recommend this option. SBA financing allows you to purchase with as little as 10% down and the loan can be amortized for as many as 25-years. The SBA program may give you the lowest monthly payment with the least money down. It’s one of our best sources of financing.

Can I use my own design/build team for my tenant improvements or can I do it myself?
Yes. You have the flexibility to use your own design/build team or do it yourself; however, because of our strict construction deadlines you must purchase the "shell" unit first. If you choose to use your own team, we will adjust the sales price of your unit(s) for a "shell" only. Once you have closed on your unit(s) you can proceed with your additional design and build process. Here, however, are a few things to consider:

1. We have spent a lot of time ensuring that we chose the most talented and economical design/build team for this project;
2. We have already streamlined the design and permitting process with all approval authorities;
3. And we have factored all costs of the design and build-out of your base unit(s)/options into the purchase price, so by choosing another team you may be paying extra.

Will there be any changes to the layout of a current construction project?
The development team firmly believes the site-plan for any construction project we have is the optimum plan for this location at this time. It is our experience however, that the site-plan might require minor changes as a result of engineering, architectural, contractor and/or city-planning initiatives or changes. Most of these initiatives or changes are outside the scope of the developer’s authority. The developer reserves the right to make minor changes to the overall site-plan to ensure the quickest and most direct route to project completion. These changes may include, but are not limited to, changing client locations, building locations, parking plans, landscaping, etc. It is our job to ensure that any changes cause minimal impact to our clients and at absolutely no additional cost. We will ALL be working together to make our current business construction project one of the most successful and innovative projects available!