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Can someone please show me how to do a DCF for the following problem? All the information and assumptions you need are provided below Thank
Can someone please show me how to do a DCF for the following problem? All the information and assumptions you need are provided below Thank You! Best answer gets a Thumbs up!
Retail Homework Summer Place Retail Mall - Number of tenants:32 Price = $58 million Rentable area 245,000 sq ft Common area: 80,000 sq ft Base rent: $16 per sq ft of rentable area Overage rents for 6 tenants: 35,000 sq ft @$8.00 per sq ft CAM and other expenses recoverable: $4.65 per sq ft of rentable area Vacancy 5% of rentable area base rent; Concessions/Default: 1% Operating Expense: Utilities: 584,700.00 Mgmt/admin/overhead expenses: 340,000.00 Property Taxes: 1,000,000.00 Insurance 66,000.00 Other: 35,000.00 Recurring ST repairs allowance: 160,000.00 . DCF Assumptions 5 year horizon increase base rent by 50 cents/sq ft per year increase overage rent by 50 cents/sqft per year increase CAM roverable by 3% per year Vacancy and default stays the same rate OPEX wil go up by 3% per year CAPEX expected year 3 for $500,000 Discount rate = 9% Terminal Cap rate = 5% Cost of Sale = 5%
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