1. Are there sources of financing that understand office/ medical condominiums and can assist my goal of ownership?

Financing in today’s environment provides the buyer with several advantages.  Many owners have taken benefit of the Small Business Administration (SBA) loan programs.  These federally funded or guaranteed loans require as little as 10% down and are at attractive interest rates and terms.  Additionally, it is possible to expand the loan to include the cost of your interior space improvements and the establishment of a business line of credit.  With the line of credit in place, it is feasible to have the equivalent of 100% financing.  Several banks specialize in SBA loans and have significant experience in working with you to make the financing process go smoothly.  Our preferred lender, CIT, can provide up to 100% financing.  Richard Freeman of CIT may be contacted at (480) 477-5787 or at  https://www.smallbizlending.com/.

2. What financial advantages are there if I own rather than lease?  Are there tax benefits?

Ownership provides many financial advantages, including value appreciation, interest deductions, depreciation and tax planning strategies.  For the maximization of these ownership advantages, you should consult your tax accountant and adviser.

3. How can I manage buying my own office, when I have already a busy business/medical practice?

The key to the buying process is to have a step-by-step plan than utilizes the experience and commitment of a team of professionals.  Paragon Realty Group has the process simplified into a number of basic steps that will make the ownership process smooth and enjoyable.

4. What is the development’s overall parking ratio?

Parking is in excess of building code requirements and more that sufficient for both office and medical use.

5. Do I have covered parking and is it reserved exclusively for my use?  Do I have to pay extra for covered parking?

Included with every building and/or unit is one covered parking space for every 1,000 square feet of space.  The Owner’s Association will establish the procedures for the identification and reservation of the covered parking.

6. What kind of signing is provided for the overall development and for my building or unit specifically?  Are there directional monument signs to facilitate locating my building or unit?

            A complete signing package is provided that includes:

• Front Entry Development Illuminated Monument Displays.
• Front Entry Illuminated Monument Panel Displays.
• Business Directories.
• Unit Directional Displays to locate individual units.
• Owner Provided Illuminated Wall Signs.

What signing is permitted on my building to identify my business?

Each owner has, as part of their interior space improvements, an individual exterior wall sign installed in accordance to the regulations established by the city.

7. Who is responsible for the common areas?  Who pays for the costs of upkeep?  Do I get a say in how the common areas are managed and what my costs will be to maintain the property?

The Owners Association (the “Association”) will manage the common areas of the property.  The Association’s budget is funded by each owner on a pro-rata basis.  The costs are directly related to the Association’s budget to maintain the common areas.  Each owner is a voting member of the Association, and as such, has a direct say in the operations of the Association.  Typical costs include landscaping maintenance, exterior building maintenance and insurance and reserves for maintenance of parking lot surfaces.

8. How are repairs outside my office handled, like the roof?

The Association is responsible for the repairs to the exterior of the building, including the roof.

9. Are there CC&R’s that impact my business?  Who oversees the development’s CC&R’s?

The development has CC&R’s established for the protection and integrity of the common areas and the definition of the operation of the Association.  Included within these protections are rules and restrictions designed to maintain and enhance building value.  The initial CC&R’s have been created by the developer based upon common practice in the management of office/ medical condominiums.  In addition, the developer hires a property management firm to be responsible for the day-to-day operations of the common areas.  After the development has been three-quarters occupied, the developer turns over the responsibility of managing the Association to the owners.  At that time the owners have control and authority over the common areas.
 

10. What governs how the interior improvements to my office/medical condominium looks and sets the rules for its construction?  How do I design my office layout? Who is responsible for the improvement of my office space?  How is it done?

Just like the development itself, the overall rules for your interior space improvements are controlled by the City Planning Department and, to a smaller extent, by the CC&R’s.  Each owner is responsible for the design and construction of his interior space improvements.  Paragon offers a free space plan during the initial stage of your purchase process.  Also, Paragon, along with the architects and construction companies on Paragon’s recommended list, are specialists in designing, developing and helping you in the creation of the most optimum office/medical area.
           

11. What is a demising wall?  Do I have to have these?

When someone purchases part of a building, there will exist a wall that is shared between two owners.  This wall is referred to as a “demising wall” and is constructed under specific specifications defined within the CC & R’s in order to insure complete privacy and security.

12. How long does it take to purchase an office/ medical condominium, build the interior space improvements and move in?

The process from the signing of the purchase contract and the opening of escrow to the completion of the due-diligence is typically 30 days.  During the 30 day due-diligence, your lender will actually approve the loan and provide a commitment letter.  At this time you will work with a Paragon specialist, the selected architect and contractor to design and create the construction plans for the interior space improvements.  This process takes approximately 60 days, which can be completed prior to the purchase of the office/medical condominium.  The construction of your office will take between 90 and 120 days.