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NAME Leverage Worksheet 1. Amelia Pond wants to purchase an industrial building. She has identified one with NOI of $1,650,000. She thinks she can purchase
NAME Leverage Worksheet 1. Amelia Pond wants to purchase an industrial building. She has identified one with NOI of $1,650,000. She thinks she can purchase it at a 6% cap rate. What price would she pay? 2. Amelia can come up with $10 million for a down payment. If she borrows the rest, what percentage of the purchase price must she borrow? 3. If cap rates shift to 8%, what percentage of the value of the building will be levered? 4. If the debt service due is 5% interest only, what is the debt service coverage ratio
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