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Ridge Business Center Ridge Business Center is a warehouse / office property in Charlotte. The property includes a well - maintained building totalling 5 0
Ridge Business Center Ridge Business Center is a warehouseoffice property in Charlotte. The property includes a wellmaintained building totalling sq ft in leasable area. The property has been offered for sale by the current owner at asking price of $ Million. As a Financial Analyst of XYZ Investors, you are expected to identify if the property will be a good acquisition for the company. An investment must generate a minimum of IRR for XYZ Investors. Please build a financial model using the assumptions below to provide an answer to the Management. Required sheets have been provided. Investment Assumptions Acquisition Date Jan Holding Period years time for which the property is owned Sale Date last day of th month Terminal Cap Rate This rate is used to determine Sale Price by the following formula: Sale Priceth Year NOITerminal Cap Rate Cost of Sale of Sale Earnings go to brokerlawyer Loan Assumptions Loan Start Date Jan Term of Loan years LTV of Price Interest Rate Loan Fees Amortization Period years Calculate monthly loan payments, you will need an amortization schedule Rent Assumptions Assume rents increase every year on first day of the calendar year Rents shown are Annual rents on a per square feet basis. Convert them to monthly rents and actual $ as and when required. NNN leases are triple net leases, tenant has to pay their proportionate share of CAM, taxes and insurance over and above the rent Consider Suite as vacant for the entire duration of years Rent Roll As of July, Suite Leased Area Status Lease Start Date Lease End Date Annual Rent PSF Rent Increase Date Rent Increase Lease Type sq ftmmddyymmddyyas of July, mmddyy Annual Occupied $ NNN Occupied $ NNN Occupied $ NNN Occupied $ NNN Occupied $ NNN Vacant Total $ Expense Assumptions All expenses are paid by landlord All expenses grow annually Expense Assumptions Expense Type Annual Expense $ CAM $ Taxes $ Insurance $ Utilities $ Repairs $ Total $ Capital Expenditure Year Annual Amount $ psf $ $ $ $ $ Qs Please refer to the excel sheet for the case study Ridge Business Center. Use functions of Excel wherever necessary, no macros should be used for the case study. Calculate Levered IRR on the investment using the data provided. Help me calculate : IRR
You must calculate the sections mentioned below on this page, you can add assumptions or other information you deem relevant to this dashboard page
Purchase Price
Net Sale Price
Net Cash Flow Before Debt yearly
Net Cash Flow After Debt yearly
Sources and Uses of Cash Flow Returns & Yields
Sources Total Equity Multiple
Debt Levered IRR
Equity Levered Profit
Total Return on Equity
Uses Total
Acquisition
Loan Fee
Capital Expenditure
Total
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