Imagine this scenario:

You have the opportunity to buy a downtown property, with an existing 800,000 s.f.,40 storey office building on it, there are tenants occupying 80 % of the building, paying an average of$40 / s.f. in annual rents.

The land is zoned to allow another 600,000 s.f. tower to be built.Rents in the new building would be expected to startat$60 / s.f.

Construction Costsare running at$225/ s.f. average

Approvals are expected to take 18months,Design will take another 12 months and Construction to last3.5 years

So....if....

the currentinterestrate for commercial real estate loans is

3.5% and the purchase price is listed as $425M.Do you take this opportunity??? J

Provide an explanation as to why you will make or lose money!

Atwhatinterestrate and/or purchase price would you change your mind?

For this exercise you can self-selectyour groups....3 to 5 people.Use class listin Google docs to record the groups?

How are we going to do this...whatplatform for the group to share?

Whatsoftware to use?

How to allow me,as the instructor, to "look over your shoulder" as you work together on this.