Based on the following information, develop a front door Simple Financial Feasibility Analysis (SFFA) for this project estimating the required minimum market gross rent per SF that will support development

40,000 Milwaukee Downtown office building project.

Acquisition & construction cost = $1,500,000;

Estimated operating costs (to landlord) = $100,000/yr.

Projected stabilized occupancy = 95%.

Permanent loan available on completion at 9% (interest-only loan) with 130% debt service coverage (DCR) requirement on the net operating income, and 75% maximum loan-to-value (LTV) ratio.

What is the gross rent required (in square feet)?

Question options:

	$6.10/SF
	$5.31/SF
	$5.23/SF
	$4.88/SF