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12. You want to find a site of at least three acres on which to build your warehouse. There are two vacant industrial site available
12. You want to find a site of at least three acres on which to build your warehouse. There are two vacant industrial site available for purchase.
- Parcel A contains 3.20 acres. Asking price is $7.50 per SF of site area. The entire site is usable. Assuming that you pay 95% of the asking price, what would you pay for Parcel A?
- Parcel B also contains 3.20 acres. The asking price is $6.95 per SF, but there is a 0.5 acre wetland in the center that needs to be filled to make the site buildable. If you buy a mitigation credit from a private wetland bank you can get a permit to fill in the wetland. The mitigation credit costs $250,000 per acre of wetland. Assume that you pay 95% of the asking price and spend the money to mitigate the wetland. How much would Parcel B cost altogether? How much is that per SF? Which site is the better choice, and why?
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