I recently applied for a financial analyst position at a Real Estate Firm. and I received an assignment to complete within $2$ days to qualify for the next process. Model Assignment: Ridge Business Center Ridge Business Center is a warehouse$/$office property in Charlotte. The property includes a well$-$maintained building totalling $50,000$ sq ft in leasable area. The property has been offered for sale by the current owner at asking price of $$5$ Million. As a Financial Analyst of XYZ Investors, you are expected to identify if the property will be a good acquisition for the company. An investment must generate a minimum of $15\%$ IRR for XYZ Investors. Please build a financial model using the assumptions below to provide an answer to the Management. Required sheets have been provided. Investment Assumptions Acquisition Date $01-$Jan$-21$ Holding Period : $5$ yearstime for which the property is owned$)$ Sale Date: last day of $60$th month Terminal Cap Rate : $7\mathrm{.}5\%($ This rate is used to determine Sale Price by the following formula: Sale Price$=5$th Year NOI$/$Terminal Cap Rate$)$ Cost of Sale: $2\%(2\%$ of Sale Earnings go to broker$/$lawyer$)$ Loan Assumptions Loan Start Date$01-$Jan$-21$ Term of Loan$5$ years LTV : $75\%*$ of Price Interest Rate$4\mathrm{.}0\%$ Loan Fees$1\%$ Amortization Period$25$ years$*$ Calculate monthly loan payments, you will need an amortization schedule

Rent Assumptions $1)$ Assume rents increase every year on first day of the calendar year $2)$ Rents shown are Annual rents on a per square feet basis. Convert them to monthly rents and actual $ as and when required. $3)$ NNN leases are triple net leases, tenant has to pay their proportionate share of CAM, taxes and insurance over and above the rent $4)$ Consider Suite $1006$ as vacant for the entire duration of $5$ years Rent Roll $($ As of $31$ July, $2020)$ SuiteLeased AreaStatusLease Start DateLease End DateAnnual Rent PSFRent Increase DateRent IncreaseLease Type $($sq$.$ ft$)($mm$/$dd$/$yy$)($mm$/$dd$/$yy$)($as of $31$ July, $20)($mm$/$dd$/$yy$)$Annual $(\%)100110,000$Occupied$03-01-1803-31-28$$$12\mathrm{.}1501-3\%$NNN $100210,000$Occupied$06-01-1906-30-29$$$11\mathrm{.}5001-01-3\%$NNN $100315,000$Occupied$01-01-2001-31-30$$$10\mathrm{.}7501-01-3\%$NNN $10045,000$Occupied$03-01-1803-31-28$$$1201-01-5\%$NNN $100510,000$Occupied$06-01-1906-30-29$$$1201-01-5\%$NNN $10066,000$Vacant Total$56,000$ $$10\mathrm{.}32$ Expense Assumptions $1)$ All expenses are paid by landlord $2)$ All expenses grow $2\%$ annually Expense Assumptions Expense TypeAnnual Expense $($$$)$ CAM $$25,000$ Taxes$$75,000$ Insurance$$25,000$ Utilities$$20,000$ Repairs$$45,000$ Total$$1,90,000$ Capital Expenditure YearAnnual Amount $($$ psf$)2021$$$2\mathrm{.}002022$$$1\mathrm{.}252023$$$1\mathrm{.}002024$$$1\mathrm{.}002025$$$1\mathrm{.}00$ Please refer to the excel sheet for the case study $$ Ridge Business Center. Use functions of Excel wherever necessary, no macros should be used for the case study. Calculate Levered IRR on the investment using the data provided