CRE quiz 4. Commercial real estate financing ( FIN 4270 060)

Rent Roll SE 2.500 1,500 Tenant Name/Unit Type CVS Sherwin Williams Keller Williams Domino's Nail Salon Total Occupied/Avg Total % Total Monthly Annual Monthly Annual Annual Lone GLA Lease Start Lease End Type Rent PSF Rent Rent C AM CAM Revue Tom 60.0% 10/01/03 09/30/23 Mod Gross $16.00 $10,000 $120,000 $1,000 $12,000 $12,000 20 12.0% 06/01/07 05/31/22 Mod Gross SM.00 $3,000 $36.000 S350' 54,200 $40,200 15 80% to 9/23/22 Mod Gross $24.00 $2,000 $24,000 $300 $3,600 $27,500 5 12.0% 08/01/10 07/31/20 Mod Gross $22.40 $2,200 $33,600 $350' 54,200 $37.800 8.0% 05/01/18 04/30/21 Mod Gross $24.00 $2,000 $20,000 $300' $3,500 $27,000 3 100.0% $19.01' $19,800 $237,600' $2,300' $27,600' s265,200 1,000 1,500 1000 12,500 5% market vacancy 40% Expense Ratio 6.50085721177% mortgage constant 5.50% Investor's ROE Questions: What is the NOI? What is the CAP rate that should be used assuming a 75% LTV? What is the value of the property using the CAP you calculated in #2? What is the maximum loan amount (round it to the nearest hundred thousand) you would propose to maintain a 75% LTV? Using a 4.25% interest rate, 10 year term and 25 year amortization for the loan amount in #4 above; what is the monthly payment? What is the annual payment? What is the DSCR? What is the Debt Yield? What is the value per square foot? What is the break-even occupancy? Please provide 3-5 reasons to either do this loan or not do this loan. Rent Roll SE 2.500 1,500 Tenant Name/Unit Type CVS Sherwin Williams Keller Williams Domino's Nail Salon Total Occupied/Avg Total % Total Monthly Annual Monthly Annual Annual Lone GLA Lease Start Lease End Type Rent PSF Rent Rent C AM CAM Revue Tom 60.0% 10/01/03 09/30/23 Mod Gross $16.00 $10,000 $120,000 $1,000 $12,000 $12,000 20 12.0% 06/01/07 05/31/22 Mod Gross SM.00 $3,000 $36.000 S350' 54,200 $40,200 15 80% to 9/23/22 Mod Gross $24.00 $2,000 $24,000 $300 $3,600 $27,500 5 12.0% 08/01/10 07/31/20 Mod Gross $22.40 $2,200 $33,600 $350' 54,200 $37.800 8.0% 05/01/18 04/30/21 Mod Gross $24.00 $2,000 $20,000 $300' $3,500 $27,000 3 100.0% $19.01' $19,800 $237,600' $2,300' $27,600' s265,200 1,000 1,500 1000 12,500 5% market vacancy 40% Expense Ratio 6.50085721177% mortgage constant 5.50% Investor's ROE Questions: What is the NOI? What is the CAP rate that should be used assuming a 75% LTV? What is the value of the property using the CAP you calculated in #2? What is the maximum loan amount (round it to the nearest hundred thousand) you would propose to maintain a 75% LTV? Using a 4.25% interest rate, 10 year term and 25 year amortization for the loan amount in #4 above; what is the monthly payment? What is the annual payment? What is the DSCR? What is the Debt Yield? What is the value per square foot? What is the break-even occupancy? Please provide 3-5 reasons to either do this loan or not do this loan.