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Intro Downtown Capital LP is a real estate investment company that is interested in acquiring an office building (the target building). A similar office building
Intro Downtown Capital LP is a real estate investment company that is interested in acquiring an office building (the target building). A similar office building in the same area (the comp building) recently sold for $81,000,000 Comp building Target building Value (5) 61,000,000 Square feet 81,000 45,000 Annual rent (S) 3,538.000 3.015.000 Annual maintenance cost ($) 854,000 900.000 Attempt 1/3 for 10 pts Part 1 What is a value of the target building based on a multiple of net operating income (in %)? 0+ decimals Submit Attempt 1/3 for 10 pts Part 2 What is the rental capitalization rate for the comp building? 3+ decimals Submit Attempt 1/3 for 10 pts. Part 3 What is the value of the target building (in 5) 0+ decimals
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