Question
I need typing answer urgent A 10-year-old, 80,000 SF office building in Kennesaw is for sale for $12,000,000. Using the financials below what is the
I need typing answer urgent
A 10-year-old, 80,000 SF office building in Kennesaw is for sale for $12,000,000.
Using the financials below what is the Gross Possible Income, Adjusted Gross Income, Net Operating Income, and Cash Flow.
What is the Asking Cap Rate (ROR), Return on Equity (ROE), Debt Coverage Ratio, and Asking Price Per SF?
If you want at least an 7% return on your investment how much would you pay for the complex? Is this a good deal for you at 7%?
Show all your math in detail:
Basic Financial Information:
Income - 80,000 SQ FT leased at $19/SF/ YR
Taxes - $95,000/ yr.
Repair & Maintenance - $80,000/ yr.
Legal - $18,000/ yr.
Amortization - $12,500/ yr.
Insurance - $12,500/ yr.
Utilities - $105,000/ yr.
Management - $55,000/ yr.
Capital Expenses - $40,000.00
Vacancy/ Credit Loss - 15%
Depreciation - $38,000/ yr.
Other Income - $7,000.
Equity (25%) - $3,000,000.
Loan (75%) - $9,000,000 @ 6%, Interest Only with 5-year balloon
Debt Service - $540,000. / yr.
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