i have provided all necessary information please help
The asset you want to acquire is called Gateway to NuLu - a fully leased and renovated office building in Loulswille, KK. All of the relevant details about the property are included in the attached agent brochure.Use the following assumptions when building your model. Operations: - The portfolio is fully occupied. You have been provided with the lease details. Model the leases, with the appropriate expense treatments and rental increases into your model. - Management fee of 3% of EGI - Property Taxes, increasing in line with the CPI - CPI increases by 3% pa for the next 10 years - All property operating expenses increase in line with the CPI - Capex reserve is 2% of EGI - Property taxes of $90,000 p.a. - Insurance of $20,000 p.a. - Maintenance, Security \& Cleaning of $80,000 p.a. - Utilities of $60,000 Exit Assumptions: - Going-out cap rate of 7.0% - Costs of Sales of 3x - Commissions of 2% - Hold period of 5 years Acquisition Assumptions: - In order to work out the bid price, adjust the price until you achieve a 15\% levered IRR. - Acquisition costs are 2.0% Debt Assumptions: - Drawdown amount of the lower of 65% LTV or 1/.DCR - 30-year amortization period - Loan term of 30 years - Interest rate of 3.0% Lender points of 2% Modeling: Use the model template provided (which matches the previous modeling scenarios) and adjust it to fit this scenario. 3.1.3 Instructions 1. Download the attached Rent Roll, Template Model, and Investment Brochure. 2. Review the information provided and complete the 5 -year financial forecasts. 3. Adjust the purchase price in order to achieve a 15% levered IRR in your modeL. 4. Submit your estimated purchase price into the next chapter, titled 93.2 Submit Your Valuation Here". When you submit your valuation, you will be told whether or not your calculation is in tine with our professional valuation based off of the same assumptions. 5. If you get stuck or your resulting valuation needs some work, you can take a look at the completed valuation in chapter =3.3 Case Stud Solution: How much should you bid for the asset? 20,000,000$20,500,00017,500,000$18,000;00017,000,000$17,500,000$18,000,000$18,500,00016,000,000$16,500,00018,500,000$19,000,00019,000,000$19,500,00016,500,000$17,000,00019,500,000$20,000,000 The asset you want to acquire is called Gateway to NuLu - a fully leased and renovated office building in Loulswille, KK. All of the relevant details about the property are included in the attached agent brochure.Use the following assumptions when building your model. Operations: - The portfolio is fully occupied. You have been provided with the lease details. Model the leases, with the appropriate expense treatments and rental increases into your model. - Management fee of 3% of EGI - Property Taxes, increasing in line with the CPI - CPI increases by 3% pa for the next 10 years - All property operating expenses increase in line with the CPI - Capex reserve is 2% of EGI - Property taxes of $90,000 p.a. - Insurance of $20,000 p.a. - Maintenance, Security \& Cleaning of $80,000 p.a. - Utilities of $60,000 Exit Assumptions: - Going-out cap rate of 7.0% - Costs of Sales of 3x - Commissions of 2% - Hold period of 5 years Acquisition Assumptions: - In order to work out the bid price, adjust the price until you achieve a 15\% levered IRR. - Acquisition costs are 2.0% Debt Assumptions: - Drawdown amount of the lower of 65% LTV or 1/.DCR - 30-year amortization period - Loan term of 30 years - Interest rate of 3.0% Lender points of 2% Modeling: Use the model template provided (which matches the previous modeling scenarios) and adjust it to fit this scenario. 3.1.3 Instructions 1. Download the attached Rent Roll, Template Model, and Investment Brochure. 2. Review the information provided and complete the 5 -year financial forecasts. 3. Adjust the purchase price in order to achieve a 15% levered IRR in your modeL. 4. Submit your estimated purchase price into the next chapter, titled 93.2 Submit Your Valuation Here". When you submit your valuation, you will be told whether or not your calculation is in tine with our professional valuation based off of the same assumptions. 5. If you get stuck or your resulting valuation needs some work, you can take a look at the completed valuation in chapter =3.3 Case Stud Solution: How much should you bid for the asset? 20,000,000$20,500,00017,500,000$18,000;00017,000,000$17,500,000$18,000,000$18,500,00016,000,000$16,500,00018,500,000$19,000,00019,000,000$19,500,00016,500,000$17,000,00019,500,000$20,000,000
