SEICENTO A Northern California real estate company is considering diversitying is real estane portfolio and buying your old ice buting in pland did a thorough study of the market and the leases that are in place. The company estimates that next year's net operating income will be $100,000. Its projections allow to estimate that after the first year the annual net operating income will be rising by 57,000 each year for 5 years after which is expected to grow by 8 percent per year for a few years in the foreseeable future. It plans to own the property for 8 years and then sell it at a price determined using information on all applicable How many from the list below That's something you need to figure out comparable properties terminal cap rates. The chosen comps will all be considered equally important in determining the subject property's expected terminal value. The company requires a 15 return on this investment. Below is the information on several office buildings with similares and amenities that recently sold in Upland and surrounding area. First, under each recently sold buildingsinformation put YES if it should be treated as a comp and Otherwise il Bldg 2 $1.000.000 Big 3 $1.200.000 Bldg 4 5900,000 Big as 51.200.000 Bildgao $1,100.000 Bldg 7 31,000,000 Bldg 1 Recent sale price 41,100,000 Arength yes transaction 1st year NO 580.000 yes no yes no res $100,000 590.000 5130 5110,000 13 years old $120.000 Previously sold three years ago to its second ce as a 10 year old building $110.000 will be a 13 year old Twice as old as the subject building in a couple weeks property Other info 5 years old Built in October 2007 Comp? if you can do the math in Excel with correct referencing to cells with intermediate results. This will allow you to avoid rounding errors. Otherwise, increase decimal places the more the better say, 6 or even higher Calculate the company's estimated future net operating incomes for the entire holding period. Round to whole dollar. Don't use the "S" sign. Year 1 Year Year Year NOI Estimated reversion value of the subject property equal Round to whole dollar. Don't put Estimated current value of the subject property is 5 Round to whole dollar. Don't put Estimated going in caprate for the subject property is assumingitis purchased for no more than what is worth Round to 2 decimal places. Don't put .. for 1.2 put 1.23 Estimated not caprate for the subject property is Round to 2 decimal places. Don't put wig for 1.21 put 1.23 SEICENTO A Northern California real estate company is considering diversitying is real estane portfolio and buying your old ice buting in pland did a thorough study of the market and the leases that are in place. The company estimates that next year's net operating income will be $100,000. Its projections allow to estimate that after the first year the annual net operating income will be rising by 57,000 each year for 5 years after which is expected to grow by 8 percent per year for a few years in the foreseeable future. It plans to own the property for 8 years and then sell it at a price determined using information on all applicable How many from the list below That's something you need to figure out comparable properties terminal cap rates. The chosen comps will all be considered equally important in determining the subject property's expected terminal value. The company requires a 15 return on this investment. Below is the information on several office buildings with similares and amenities that recently sold in Upland and surrounding area. First, under each recently sold buildingsinformation put YES if it should be treated as a comp and Otherwise il Bldg 2 $1.000.000 Big 3 $1.200.000 Bldg 4 5900,000 Big as 51.200.000 Bildgao $1,100.000 Bldg 7 31,000,000 Bldg 1 Recent sale price 41,100,000 Arength yes transaction 1st year NO 580.000 yes no yes no res $100,000 590.000 5130 5110,000 13 years old $120.000 Previously sold three years ago to its second ce as a 10 year old building $110.000 will be a 13 year old Twice as old as the subject building in a couple weeks property Other info 5 years old Built in October 2007 Comp? if you can do the math in Excel with correct referencing to cells with intermediate results. This will allow you to avoid rounding errors. Otherwise, increase decimal places the more the better say, 6 or even higher Calculate the company's estimated future net operating incomes for the entire holding period. Round to whole dollar. Don't use the "S" sign. Year 1 Year Year Year NOI Estimated reversion value of the subject property equal Round to whole dollar. Don't put Estimated current value of the subject property is 5 Round to whole dollar. Don't put Estimated going in caprate for the subject property is assumingitis purchased for no more than what is worth Round to 2 decimal places. Don't put .. for 1.2 put 1.23 Estimated not caprate for the subject property is Round to 2 decimal places. Don't put wig for 1.21 put 1.23