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possible without sacrificing the quality of the product , such as reducing the size of a common area .
They might also consider a new method of construction , one recent example of which is the new Shell station on Route 15 , she said . “ Shell built the first modular service station . It looks really good ; it was done quickly ; it was done cheaper .”
Success in the “ game ” of real estate requires due diligence , a change in mindset and / or creative solutions , Hutapea said .
The first step in purchasing a property is having an expert perform thorough due diligence . “ Check the flood zone ,” she said . “ Check the setback ; check the wetland if there ’ s any ; check the easement . Make sure you know everything there is to know about the property .”
Challenging market conditions may require a change in mindset .
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Hutapea noted a couple of recent transactions as examples of a changing mindset . The former Hotel Santa Fe , a 100-room hotel in Tamuning , recently sold for $ 8 million . “ The buyer transformed it to temporary worker housing ,” she said . “ They just got their permit . Now it ’ s available for lease .”
Perez Bros . sold its lot in Harmon for $ 6.75 million to Smithbridge Guam , which is using the lot as a precast yard , according to the company ’ s website . Perez Bros ., no longer in the construction industry , did a 1031 exchange and purchased Trophy Condominium in Yigo . The 14-unit property had been bought by a military contractor in 2021 for $ 1.89 million and then sold to Perez Bros . for $ 3.3 million . “ They were only renting at $ 900 when they bought it in 2021 ,” Hutapea said . “ Now the rent is at $ 2,000 .”
Another creative solution in the real estate game is seller financing . With standard 30-year fixed interest rates at 7 to 8 percent , a buyer might ask the sell-
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Siska Hutapea
er if he / she is willing to do , for example , 5 percent on a $ 5 million property . “ If you do that , what happens is yes , the sale price is $ 5 million but the present value - because the interest rate is only 5 percent - is only $ 4.3 million compared to the $ 5 million sticker price ,” she said .
Outside the bases , significant development is taking place along Route 3 in Dededo and Yigo due to the construction of the new Marine Corps Base and other facilities at Andersen Air Force Base .
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Photo by Frank Whitman
Once the pace of military construction subsides , workers will be hired for facility maintenance , creating demand for development in the area .
There is also significant commercial development proposed along Route 15 in Mangilao / Barrigada “ because of the announcement of the medical complex activity there ,” she said . The newest low-income housing tax-credit project is near the former Nimitz golf course , which is also in that area . “ The Route 3 area is the growth corridor right now along with Route 15 ,” she said .
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