Assume you have a client with a requirement for a building with 138,000 SF located in the Gowanus, Brooklyn, NY. Total hard and soft costs are $241.5/SF. You are trying to achieve an unleveraged yield of 6.0%. The client is willing to pay a rental rate of $35.0/SF/Yr.

1. Assume a building to land coverage ratio of 50%. At what price will you pay for the land in terms of $/SF of Land Area and achieve your target yield?
   1. 117.69
   2. 170.69
   3. 230.89
   4. 301.21

2. You conduct market research. Assume that land is being offered to you for $190/SF. Does buying land at the offering price will allow you to achieve your target yield?

true or false

3. Land is being offered to you at $190.00/SF of Land Area. You are trying to achieve an unleveraged yield of 6.0%. What is the target rent that you need to achieve your target yield?

a. 37.29

b. 92.73

c. 22.31

d. 29.73

4. Land is being offered to you at $190.00/SF of Land Area. You are trying to achieve an unleveraged yield of 6.0%. You conduct market research and find the prevailing rent is $40.0/SF. Proceeding with the development if you secure a leasing deal with a tenant at the prevailing market rent allows you to surpass your target return?

true or false