Developer Projects

We work with owners, investors and developers looking to add onto existing properties or ones looking to build new. We work with designers and architects to deliver the project on time and on budget. We focus on proper processes to maintain efficiencies in order to give owners confidence that we will deliver the project as they expected. Give us a call to discuss your next project.

Multifamily Apartment Complexes

Are you an investor looking at buying large Multi-Family properties, but just cant find one that works? Give us a call, we work with investors to build great properties at affordable prices in order to ensure profitability right out the gate.

Why Build a Multifamily Apartment Complex

Owning a multifamily unit is a great way to create long term wealth. A problem that investors are having is finding a multifamily building already established that doesn’t need hundreds of thousands of dollars of work for a reasonable price.

Recently one of the owners of Arizona Elite Builders was called by an appraiser looking for a expert opinion on what it would cost to build a multifamily complex. He was estimating the value of a property for an investor that paid $100/sqft for this building and were planning on spending $200/sqft to renovate this old complex. The question from the appraiser was could this be build new for cheaper. The answer is YES.

Arizona Elite Builders looks for creative ways to help the developers and investors we work with. If you are an investor and are looking to get into the multifamily space or just add another complex to your portfolio, then give us a call. We work with our partners in many different ways, as a builder, as a consultant and even as a partner to keep cost down. We would love the opportunity to sit down with you in preparation for your next project.

Building an Office Verses Renting an Office

The current real estate market in the Phoenix Arizona Valley is making it more difficult for businesses to find an affordable office space to rent that will provide them everything they might need. More businesses are turning to the idea of building their own space. This way each given business can create the space that will truly work for their business. Gone are the days trying to create a space work for you with you can create the space that will be exactly what you want.

When breaking down the costs of an office space build verses renting, look at the following numbers. Office space can go from $8/sqft/year all the way up to $20 plus. There are times when you can find something that will work for you, but for most businesses you are having to do a large tenant improvement in order to get the space to work for your business. Tenant improvements can average around $35 per square foot. This has to get paid. So this either comes out of the tenant up front or it comes out of the tenant by raising their rent and or doing a longer term lease. A standard lease will be anywhere from 3-5 years for a space.

Lets put these numbers together on a 3000 sqft building.

  • 3yrs @ $14/sqft =($42,000*3)=$126,000
  • 5yrs @ $14/sqft=(42,000*5)=$210,000
  • If you have a tenant improvement of $35/sqft, that would be $105,000 on a 3000 sqft unit. You can absolutely spend less and you can spend more. It all depends on the space you find and what you are able to live with or what you are unable to live with.
  • Total costs
    • 3 years= $126,000 $105,000=$231,000
    • 5 years=$210,000 $105,000=$315,000

If you were looking at building an office for yourself, lets do some numbers.

  • Land $150,000 (.5 acres)
  • 3000 sqft unit around $165/sqft build. This price can be higher and can be a little lower depending on design, location and finishes.
    • $495,000
  • Other cost
    • Architectural $2-$6/sqft ($10,000)
    • Permits ($15,000-$30,000)- $20,000
    • Landscaping/Roads-Parking lot/Drainage/Dirt-work etc $100,000
  • Total Costs per example: $775,000
  • Down payment needed: 20%-$155,000
  • Owe after down payment $620,000
  • Monthly payment with a 5.5% interest rate, 25 year term-$4,759.18/month

Own Versus Rent

  • Own building and pay $4,759.18/month and own the building and have it be exactly what you want. Once it is paid off you own the building and have something to show for your work.
  • Rent you could spend month for the next 25 years and never get that money back. Our suggestion is take the money you would have spend on the rental to rent and do your TI and apply that money towards your down payment and own your own building.

Disclaimer- The numbers used are not exact for every project and will very depending on many different variables. Please give us a call today to discuss your specific project!

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