Question
RETAIL REIT acquires CORE SHOPPING CENTER on 10/1/2020 for $30,500,000. Cash flows end up exactly as forecasted. However, RETAIL REIT decides to sell the property
RETAIL REIT acquires CORE SHOPPING CENTER on 10/1/2020 for $30,500,000. Cash flows end up exactly as forecasted. However, RETAIL REIT decides to sell the property at the end of Year 7 instead of Year 10. The sale price is $35,500,000. It will cost RETAIL REIT 2% of the sale price in closing costs. Prepayment penalty of 1%.
37. What was RETAIL REITs unlevered IRR? Include the cost of sale. a. 8.31% b. 8.07% c. 8.25% d. 9.12%
38. What is the prepayment penalty? a. $191,125 b. $190,816 c. $200,000 d. $198,250
39. What are the net proceeds to RETAIL REIT upon sale? Do not consider original equity contribution. a. $16.2 Million b. $15.7 Million c. $34.6 Million d. $15.5 Million
Please Answer ASAP. Need help on it really badly.
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