Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 10 10 pts Suppose that a developer builds a 15,000 SF Dollar General that leases for $20. absolute net. Land costs for the 1-acre

image text in transcribed
Question 10 10 pts Suppose that a developer builds a 15,000 SF Dollar General that leases for $20. absolute net. Land costs for the 1-acre site are $500,000 and total construction costs including interest and soft costs are $3.5 million. What is the yield on cost or cap rate that the developer will need to sell at to break even? 7.00% 7.20% 7.50% 7.70% 8.10%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Leverage Space Trading Model

Authors: Ralph Vince

1st Edition

0470455950, 978-0470455951

More Books

Students also viewed these Finance questions