Question
Mr Student has owned a mini storage for 5years There is a mortgage for $ 3,000,000.00 Year 1, NOI is $ 400,000.00 is growing 2%
Mr Student has owned a mini storage for 5years There is a mortgage for $ 3,000,000.00
Year 1, NOI is $ 400,000.00 is growing 2% per year.
The current cap rate for this type of investment is 8% and going -out cap rate is higher by 0.5% to reflect the risk associated with passage of time.
Cost of SALE is projected to be 4% Calculate
a) Current value?
B) Current Equity?
C) Terminal Value?
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Financial Accounting
Authors: Belverd E Needles, Marian Powers
10th Edition
0547193289, 9780547193281
