28.7 Acre site (net area i.e. excluding wetlands)

Zoning Retail shopping center use

5 Spaces per 1,000 SF (Assume 800 SF/Space in parking pavement, including access areas)

40% lot coverage permitted including both parking pavement and building

Part 1 Physical (10 points)

How big of a building can be built on the site (round to the nearest 1,000 square feet)?

2) What is the most we can pay for the land to make a deal work?

Assume

$100.00 per SF building total development costs (including parking but excluding land)

$12.00 per SF building in projected Net Operating Income (NOI)

10.50% target return on costs (capitalization rate)

3)

Using the total development cost including land from Question 2a, what is annual debt service?

Assume

80% Loan-to-cost ratio

9.50% mortgage constant

4)

Assuming $12 per square foot in NNN rent and the debt service you calculated in Part 2b, what is breakeven occupancy?

Assume

$4.00 Real estate taxes per SF

$5.50 Other operating costs per SF

$9.50 Total reimbursable Operating Expenses