Question
Show your work using the standard format for the real estate operating statement (APOD) What is the NOI based upon the following data provided? Calculate
Show your work using the standard format for the real estate operating statement (APOD)
What is the NOI based upon the following data provided? Calculate the purchase price based on 8% Cap Rate.
NOI _______________________________
SALES PRICE ____________________
Industrial Building (125,000 SF)
Rent is $ 7.25 PSF NNN (Tenant pays NNN CAM, RE TAXES and INSURANCE)
Expense Data
Vacancy Rate and Credit Loss run approximately 8% per Annum
Management Fees are 5% of GOI
Utilities are paid by Tenant and are separately metered
Real Estate Taxes are $ 125,000 per year
Common Area Maintenance is $ .75 PSF Per Annum
Accounting and Legal are $ 3500 per annum.
Insurance is $ .35 PSF Per Annum
Capita Reserves are $ .15 PSF per Year
Formulas:
Cap Rate NOI / RATE
Debt Coverage Ratio NOI/Debt Service
Loan to Value Rate x Sales Price
Cash on Cash Return CFBT / Equity
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