1102 E University LLC | Application Preview
1102 E University LLC is applying for government grants to fund necessary upgrades after their property was rezoned from RM4 to NC by the City of Mesa. The improvements include bringing the property up to code with drainage systems, new landscaping, parking lot repairs, and compliance with ADA requirements. They plan to submit bids for verification and express a strong preference for grants but are open to considering government loans.
The business anticipates that by meeting the new zoning requirements, they will be able to increase lease rates by 10% annually, enhancing the property’s value and attracting a wider variety of tenants. With the completion of the upgrades, they expect existing tenants to expand, increasing rental income.
The Reichard Family, who has owned the property since 1976, has a long-standing history in real estate, running Reichard Realty Inc since 1973. They have consistently leased the building, prioritizing tenant quality and stability even during challenging economic conditions.
In terms of competition, they identify two nearby properties: an office building to the west and a strip mall to the east, with both facing challenges in occupancy, particularly due to the pandemic. The competitive edge for 1102 E University lies in their reliable tenants, specifically hair and nail salon owners, who cannot operate remotely. They have maintained a strong relationship with these tenants, recently renewing leases and keeping them informed about the rezoning process.
Overall, the funding will not only help meet city compliance but will also revitalize the property, ensuring it serves as a valuable asset to the community while supporting the businesses that operate within it.
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General Information
Business Registration Number: 83-2984882
Location: GILBERT, AZ, United States
Length of Operation: 1 year 5 months. Beg
Number of Employees:
Annual Gross Income:
Annual Gross Expense:
Open to Loans: YES
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Funding Usage
Rezoned from RM4 to NC with City of Mesa. They are requiring us to bring property up to code with drainage, new landscaping, curbing, block wall on north side, sidewalk corner to ADA codes, 2 driveways to have current ADA butterfly opening, redo parking lot pavement, wall for garbage bins, above ground retention, etc. I would like to send both bids for verification. We prefer grants, but will consider government loans.
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Business Plan
By rezoning, we will be in a better position to bring up the lease rates by 10% each year, our new code requirements from City of Mesa rezoning requirements will bring up value of our property, and we will be open to different types of business leasing in our building. Once rezoned, our tenants can expand into Suites 4-5, we will bring in more rent with our new lease requirements. We (Reichard Family) have owned this property since 1976. We began our family real estate office Reichard Realty Inc in 1973 up on Main Street in Mesa. We moved to this location in 1976 and have owned this property, maintaining its value inside and outside, as we grew our business. We now lease the building to tenants in Suites 1-3. Once upgrade codes are complete, we will have a valuable property to be a standard in our community. We have consistantly leased out this building since 1976. Even if we had to go a little below average rents in area. We value our tenants and are more concerned about quality of tenant, and finding that balance to maintain tenants, and help support needs of their business.
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Self Identified Competition
We are investors and our top 3 competitors would be owners of properties to our West and East. 1. West is an office building our family built to mirror our building in early 1980's. We don't own it now, but currently they have a mix of office, medical tenants. 2. To the East is a strip mall who primarily are medical offices, half are not leased. 3. Across the street at 1045 E. University Dr. brick building 1 out or 4 office suites of 1500 sf each are leased at $2500 p/month. 3 are vacant. Office space is tough right now with COVID requiring everyone to work from home. Our Hair and Nail Salon owners have to work at the salon location, they can't work from home. People have to come in to get nails and hair done. We value our tenants, who have been loyal tenants since Sept 2013. We just renewed their lease Oct. 2019 for another 3 years! We have kept them in the loop of process of rezoning. Now that we have construction bids, and once construction begins, their business will be impacted by dust, noise, disruption in general. We hope it will be minimal, and quick to get all code requirements done.
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Contact Applicant
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