Assume that you can build 56K square feet on the site instead of 28K used in the worksheet "BackOfEnvelope". What is the maximum residual land value that makes this development feasible? (round your answer to closest dollar amount)

Group of answer choices

a) $100/sf

b) $153/sf

c) $138/sf

d) $145/sf

A B C D E F G H GSF 28,000 NRA 26,600 Design Efficiency 95% 532,000.00 $ 20.00 2 86 0 V O UT A W N - PGI EGI 478,800.00 90% NOI 478,800.00 Going-out cap rate 7.0% Project sale 6,840,000.00 Total Construction Cost 2,800,000.00 100.00 Land 5,000,000.00 100.00 50,000 Total Project Cost 7,800,000.00 Debt 3,900,000.00 50% 17 Equity 3,900,000.00 Debt Interest 152,100.00 6.00% 0.65 1 19 20 Equity cash flow at sale 2,787,900.00 21 Equity rate of return -28.5% Not feasible 22 Hurdle rate 15% 23 24 Yield on cost 6.021051% 25 26 27 28 29 30 31 BackOfEnvelope ResidualLandValue ReplacementRent AllowableCost PPP Gap +