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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 warehouse/office property in Charlotte. The property includes a well-maintained building totalling 50,000 sq ft in leasable area. The property has been offered for sale by the current owner at asking price of $5 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 15% 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 01-Jan-21 Holding Period 5 years * time for which the property is owned Sale Date last day of 60th month Terminal Cap Rate 7.5%* This rate is used to determine Sale Price by the following formula: Sale Price=5th Year NOI/Terminal Cap Rate Cost of Sale 2%*2% of Sale Earnings go to broker/lawyer Loan Assumptions Loan Start Date 01-Jan-21 Term of Loan 5 years LTV 75%* of Price Interest Rate 4.0% Loan Fees 1% Amortization Period 25 years * Calculate monthly loan payments, you will need an amortization schedule Rent Assumptions 1) Assume rents increase every year on first day of the calendar year 2) Rents shown are Annual rents on a per square feet basis. Convert them to monthly rents and actual $ as and when required. 3) NNN leases are triple net leases, tenant has to pay their proportionate share of CAM, taxes and insurance over and above the rent 4) Consider Suite 1006 as vacant for the entire duration of 5 years Rent Roll ( As of 31 July, 2020) Suite Leased Area Status Lease Start Date Lease End Date Annual Rent PSF Rent Increase Date Rent Increase Lease Type (sq. ft)(mm/dd/yy)(mm/dd/yy)(as of 31 July, 20)(mm/dd/yy) Annual (%)100110,000 Occupied 03-01-1803-31-28 $12.1501-01-213% NNN 100210,000 Occupied 06-01-1906-30-29 $11.5001-01-213% NNN 100315,000 Occupied 01-01-2001-31-30 $10.7501-01-213% NNN 10045,000 Occupied 03-01-1803-31-28 $1201-01-215% NNN 100510,000 Occupied 06-01-1906-30-29 $1201-01-215% NNN 10066,000 Vacant Total 56,000 $10.32 Expense Assumptions 1) All expenses are paid by landlord 2) All expenses grow 2% annually Expense Assumptions Expense Type Annual Expense ($) CAM $25,000 Taxes $75,000 Insurance $25,000 Utilities $20,000 Repairs $45,000 Total $1,90,000 Capital Expenditure Year Annual Amount ($ psf)2021 $2.002022 $1.252023 $1.002024 $1.002025 $1.00 Qs 1. 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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