Question
Problem 26 Intro Downtown Capital LP is a real estate investment company that is interested in acquiring an office building (the target building). A similar
Problem 26
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 $58,000,000:
Comp building Target building
Value ($) 58,000,000
Square feet 58,000 45,000
Annual rent ($) 3,364,000 3,015,000
Annual maintenance cost ($) 812,000 720,000
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
Attempt 1/3 for 10 pts.
Part 2
What is the rental capitalization rate for the comp building?
3+ decimals
Attempt 1/3 for 10 pts.
Part 3
What is the value of the target building (in $)?
0+ decimals
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