Assume you are considering an apartment development project to build 200 units with an average size of 900 sq. ft. per unit. Rents should be $1.14 p.s.f. per month. You expect a 5% (of gross revenue) vacancy rate; and expenses of about 40% of EGI. If the land cost is $1,500,000 and "all in" development costs are $79,000 per unit, what is your approximate return on investment for this project once it reaches stabilization? [Simple analysis: NOI/Cost] Ch16

	a.	4.9%
	b.	9.6%
	c.	12.2%
	d.	8.1%