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?

 

GSF NRA PGI EGI NOI Going-out cap rate Project sale Total Construction Cost Land Total Project Cost Debt Equity Debt interest Equity cash flow at sale Equity rate of return Hurdle rate Yield on cost 28,000 26,600 Design Efficiency 532,000.00 $ 478,800.00 478,800.00 7.0% 6,840,000.00 2,800,000.00 $ 5,000,000.00 $ 7,800,000.00 3,900,000.00 3,900,000.00 152,100.00 2,787,900.00 6.021051% 20.00 50% 90% 100.00 100.00 50,000 -28.5 % Not feasible 15% 6.00% 95% 0.65