Asking Price on Retail Center $1,200,000 strong neighborhood, good demographics, good access and visibility tenants are small businesses no restaurants Center is tilt wall, built up tar roof, no landscaping, asphalt parking lot. Best loan available is 65% of purchase price 20 year term 8% per annum. Building 100% leased 5 years at which time all leases renew or walk away. Sale at the end of 3 years at some price. 10% closing costs on final sale. Assignment - Show all your work clearly use present value tables. 1. Calculate the sales price you would be willing to pay use your own cap rate (Remember to calculate the reserve for replacement. Assume triple net leases.) 2. Calculate the debt coverage ratio. 3. Calculate the equity required to close the purchase. 4. Calculate the first year return on investment or equity. 5. Calculate the final price you will obtain when you sell in three years. Your choice. 6. Calculate the net present value using your cap rate. 7. Calculate the internal rate of return of the entire investment. See the Fantini and Gorga Amortization Schedule attached.

Assumptions Asking Price on Retail Center $1,200,000 strong neighborhood good demographics, good access and visibility tenants are small businesses no restaurants Center is tilt wall, built up tar roof, no landscaping, asphalt parking lot. Best loan available is 5E of purchase price 20 year term Per annum Building 1008 leased 5 years at which time all leases renew or walk sale at the end of 3 years at some price 108 closing costs on final sale Assignment Show all clearly use present value tables you l Calculate the sales price you would be willing to pay use your own cap rate (Remember to calculate the reserve for replacement. Assume triple net es 2. Calculate the debt coverage ratio 3. Calculate the equity required to close the purchase 4. Calculate the first year return on investment or equity 5. Calculate the final price you will obtain when you sell in three Your choice Yea G. Calculate the net present value using your cap rate Calculate the internal rate of return of the entire investment. See the and GREg Amortization Schedule attached Assumptions Asking Price on Retail Center $1,200,000 strong neighborhood good demographics, good access and visibility tenants are small businesses no restaurants Center is tilt wall, built up tar roof, no landscaping, asphalt parking lot. Best loan available is 5E of purchase price 20 year term Per annum Building 1008 leased 5 years at which time all leases renew or walk sale at the end of 3 years at some price 108 closing costs on final sale Assignment Show all clearly use present value tables you l Calculate the sales price you would be willing to pay use your own cap rate (Remember to calculate the reserve for replacement. Assume triple net es 2. Calculate the debt coverage ratio 3. Calculate the equity required to close the purchase 4. Calculate the first year return on investment or equity 5. Calculate the final price you will obtain when you sell in three Your choice Yea G. Calculate the net present value using your cap rate Calculate the internal rate of return of the entire investment. See the and GREg Amortization Schedule attached