SECTION $2$: A fictional new real estate development is described below. Use the information provided to create a unit mix table in Excel and answer the questions below. If you believe any of the necessary information is missing or ambiguous, make an assumption and note it in your answer. Write the answers next to each question and show the process for arriving to the answers in Excel. Round all answers to the nearest whole number.

PROJECT DETAILS:

We are building a Class$-$A$,$ luxury apartment building with retail on the ground level and a below$-$grade parking deck.

The building has a total of $400$ units, made up of studio $(350SF),$ one$-$bedroom $(550SF),$ twobedroom $(800SF)$ and four$-$bedroom $(1,300$ SF$)$ units. There is $7,100SF$ of retail space, and $355$ parking spaces, which are $370SF$ each.

The unit mix is $40\%$ Studios, $30\%1$BR$,25\%2$BR$,$ and $5\%4BR.$

Target monthly rents for studios are $$3\mathrm{.}33$ per SF$,$ for $1BRs$$$2\mathrm{.}77$ per SF$,$ for $2BRs$$$2\mathrm{.}58$ per $SF,$ and for $4BR$ s $$2\mathrm{.}47$ per SF$.$

Retail space will rent for $$\frac{32\mathrm{.}00}{?}$ SF per year. Each parking space will rent for $$\frac{175}{?}$ month.

Construction costs are $$225$ per SF for units, $$90$ per SF for parking, and $$105$ per SF for retail.

The land cost is $$10$ million and soft costs are $30\%$ of total construction costs.

For revenue modeling, assume that there will be $5\%$ vacancy for units, $10\%$ vacancy for retail space and that $80\%$ of parking spaces will be leased.

What is the average unit square footage?

What is the average rent per unit?

What is the gross total apartment rent per year $($before vacancy$)?$

What is the net total apartment rent per year $($after vacancy$)?$

What is the total cost to build this project?

If the complete building is $442,000$ gross SF including parking, what percentage of the building is rentable SF$?$

If operating expenses are $31\%$ of income, what is the net operating income for the property?

rentable SF$?$

$7.$ If operating expenses are $31\%$ of income, what is the net operating income for the property?

$8.$ Based on the overall cost of the building, what is the return on cost$?$

$9.$ If comparable $2BR$ units in this market rent for $$\frac{1750}{?}$ month, what percentage discount would have to be given off of the target rent in order to compete with market rents?