Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A property has 100,000 square feet leasing at $10 per square foot per year. 10% vacancies. Operating expenses of 30% of PGI. Calculate total operating

A property has 100,000 square feet leasing at $10 per square foot per year. 10% vacancies. Operating expenses of 30% of PGI. Calculate total operating expenses and NOI. Assume the property was purchased for $6 million, using no debt. What is the cash on cash return (or EDR) for the investor?

Group of answer choices

6%

8%

10%

12%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Entrepreneurial Finance

Authors: J. Chris Leach, Ronald W. Melicher

7th Edition

0357442040, 978-0357442043

More Books

Students also viewed these Finance questions

Question

Did I allow myself adequate time to generate options?

Answered: 1 week ago