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14) You own a quality site in Milwaukee that is perfect for a grocery store. You have used a broker and negotiated a 20-year ground

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14) You own a quality site in Milwaukee that is perfect for a grocery store. You have used a broker and negotiated a 20-year ground lease with Kroger for your 150,000 SF site at $4/SF. The new building will be 20,000 SF. The lease includes 5% increases every 5 years, beginning in year 5. a. What rental income will you receive from Kroger in year 1? 4 pts b. If you wanted to sell the property after year 2 (assuming no vacancy factor and a cap rate of 7%), what is the value of the lease at that time? 4 pts

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