Harvard Business Review Bonnie Road Case Study

Is this a good property for Alexander to acquire? Make a table listing the pros and cons of the property. Give at least 3 pros and cons. (10 points).

Category	Pros	Cons
Tenant Quality
Rents / Leasing
Location
Other

I would or would not buy this property because.

Create a 5-year pro forma for the property. All analysis should be "before-tax". Ignore depreciation and taxable income. (30 points)

What market rents per square foot are you assuming in the proforma? Explain and show calculations, if appropriate. (10 points)

Create an amortization table (monthly) using the debt assumptions in the case: (10 points)

If the property is sold at the end of Month 60, what is the loan balance at the time of sale? (5 points)

What should Alexander pay for this property?

Explain your rationale for your purchase price. (10 points)

Calculate the following, assuming an exit cap rate of 7% using your proforma and proposed purchase price: (25 points)

Unlevered IRR, Equity Multiple, and Profit

Levered IRR, Equity Multiple, and Profit

Assumptions: List your assumptions

Fill out this box for Question 7:

	IRR	Profit	EQM/MOIC
Unlevered
Levered