MAY 14, 2014
Kiwanis Carefree signs contract to purchase new building
Kiwanis Carefree opened escrow and are in a period of due diligence for the purchase of a potential new Kiwanis Store – Marketplace. This will position the organization to substantially increase its donations and support for children’s programs in our community.
The Kiwanis Board of Directors began work on March 23 when they first learned of the availability of the Turn West property (formerly Epicurean Palette) in Cave Creek. By April 1 a confidential non-binding Letter of Intent was provided to the seller.
During the month of April negotiations were ongoing. A purchase contract was signed and escrow was then opened without the stipulation of confidentiality.
A 30 day due diligence period began on May 1. During this period the following are or will be in process. Anticipated completion dates are in parentheses:
ALTA Survey (May 22)
Appraisal (May 19)
Building inspection (May 24)
Receipt of all paper work, leases, etc. (May 6)
Possession early if Due Diligence is OK (Maybe)
July 31 closing date
If the purchase closes at the end of the due diligence period they will be able to save $28,000 per year currently being spent on the Marketplace lease. There will also be $30,000 in annual rental income for three years.
Comparison of Sites
Old Site
• Land $486,000
• Build Costs $1,600,000?
• Land 1.1 Acres and 12,000 sq. ft. Building
• Total Est. $2,086,000
• Parking 35 cars
• Rental Expense $28,000 per year
• Occupy Jan 2016
• Have to use Mezzanine
• With Mezzanine:
$193 per square foot at 10,806 sq. ft.
• Without Mezzanine:
$213 per square foot at 9,786 sq. ft.
New Site
• Land 1.4 acres and 16,193 sq. ft. Building
• $1,900,000
• Parking 64 cars
• Rental Income $30,000 per year for 3 years
• Occupy July 2014
• Safety for Volunteers all ground floor
• With Mezzanine:
$117 per square foot at 16,193 sq. ft.
* Without Mezzanine
$128 per square foot at 14,863 sq. ft.
All items currently funded will continue to be funded. No programs in the current budget are being reduced. Marketplace revenues are already up 27 percent over the same period last year.
Carefree Kiwanis has funded scholarships in the amount of $1,350,000 and over the past five years, donated $860,787 to 501C3s and $627,470 to non 501C3s for a total of over $2.8 million given back to the community.
