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An starbucks building is for sale at a 5.5% cap rate at a price of $2,500,000. Net operating income grows at 3% a year annually
An starbucks building is for sale at a 5.5% cap rate at a price of $2,500,000. Net operating income grows at 3\% a year annually because of a 25 year lease. If the building is purchased today and sold in 5 years at a 5.5% cap rate, what is the investment IRR? Blank excel for quiz x lax 8.0% 3 , 8.5\% 5.5%
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