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Please answer with work shown!! You want to purchase an office building in Brooklyn. The property contains 32,100 square feet of rentable space and is
Please answer with work shown!!
You want to purchase an office building in Brooklyn. The property contains 32,100 square feet of rentable space and is currently occupied by multiple tenants each with differing maturities on their respective leases. No lease is currently shorter than 1 year. The annual rent in the 1" year of ownership is $45.50/sqft. The vacancy rate is 15.5%. You expect to incur collection losses (from tenant default)on 5.5% of the square feet during your first year. 11. If you buy the property at the asking price of $8,000,000, what will your 'going in' Cap Rate be? 12. If the annual irr for this property is 8.5%, then based on the cap rate in question 11, what does this imply is expected NOI growth rate for this property Step by Step Solution
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