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Poppies Corp. 2005
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PLAN 1376 |
1376 sq. ft. |
Project Summary: A mirror image of Poppies Corp Wood Street construction, this project was also designed to meet the city of Phoenix’s affordable housing guidelines. This in-fill lot was just south of downtown Phoenix and less than a half block from the Henson Projects - one of the city’s most notorious neighborhoods. During construction, the City began the process of tearing down the Henson Projects which helped increase neighborhood real estate values and also provided Poppies Corp with potential buyers from the displaced community. We quickly decided to build a mirror image of the Wood Street project (three bedroom, 2 bath home of approximately 1376 square feet).
Status: Construction of the home began in April of 2005 and was completed in August, 2005. The home was put on the market in July during construction and received multiple offers in less than 24 hours (it was eventually sold at a price over list). Due to delays on the buyers financing, escrow on the sale finally closed in early October.
Financial Summary: The in-fill lot was purchased at a price of $17,500. Construction costs totaled close to $84,000 and with escrow fees, interest payments on the construction loan, property taxes and other carrying costs; the total cost of the project was about $107,500. Pre-construction, the home was valued at $125,000 for the purposes of acquiring the construction loan. However, a continuing strong market and a lack of decent affordable housing in the area resulted in a sale price of over $162,000 ($166,240 contract price less seller contributions).
Total out of pocket investment costs = $23,727.
Total net pre-tax profits = $43,584.