Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Solve for the green spaces Other pass throughs Potential Gross Income begin{tabular}{|c|c|c|c|c|c|} hline$5,602.62 & $5,714.67 & $5,828.97 & $5,945.55 & $6,064.46 & $6,185.75 hline
Solve for the green spaces
Other pass throughs Potential Gross Income \begin{tabular}{|c|c|c|c|c|c|} \hline$5,602.62 & $5,714.67 & $5,828.97 & $5,945.55 & $6,064.46 & $6,185.75 \\ \hline $183,452.62 & $195,714.67 & $203,428.97 & $212,445.55 & $217,889.46 & $221,385.75 \\ \hline \end{tabular} Vacancy Loss Collection Loss Total vacancy and Collection Loss \begin{tabular}{|c|c|c|c|c|c|} \hline($9,172.63) & ($9,785.73) & ($10,171.45) & ($10,622.28) & ($10,894.47) & ($11,069.29) \\ \hline($5,503.58) & ($5,871.44) & ($6,102.87) & ($6,373.37) & ($6,536.68) & ($6,641.57) \\ \hline($14,676.21) & ($15,657.17) & ($16,274.32) & ($16,995.64) & ($17,431.16) & ($17,710.86) \\ \hline \end{tabular} Effective Gross Income \begin{tabular}{|l|l|l|l|l|l|} \hline$168,776.41 & $180,057.50 & $187,154.65 & $195,449.90 & $200,458.30 & $203,674.89 \\ \hline \end{tabular} Expenses Capex \begin{tabular}{|c|c|c|c|c|c|} \hline($70,000.00) & ($71,400.00) & & & & \\ \hline($10,800.00) & ($12,600.00) & & & & \\ \hline \end{tabular} NOI Year 5 Selling Price less selling expenses Cashflow from Sale \begin{tabular}{|l|l|l|l|l|l|} \hline$87,976.41 & & & & & \\ \hline \end{tabular} Casflows \begin{tabular}{|l|} \hline \\ \hline \\ \hline \end{tabular} Property Value in Year 0 \begin{tabular}{|c|c|c|c|c|} \multicolumn{1}{c}{ Year 1 } & \multicolumn{1}{c}{ Year 2 } & Year 3 & Year 4 & Year 5 \\ \hline$87,976.41 & & & & \\ \hline \end{tabular} Part 2 Assumptions 7 Expenses for 2015 are $7.00 psf and grow at 2% per year 8 Capex Requirements are $6.00 per square foot for each lease that renews, to be paid in the first year of the extended period Lease Rollover by year as follows: 9 The Terminal Cap Rate at the end of year 5 is expected to be 10.50% 10 Selling costs for Investment Buildings are estimated at 5% of the sale price 11 To determine purchase price of building in Year 0, identify the cashflows for the 5 year hold period and discount at 9% Other pass throughs Potential Gross Income \begin{tabular}{|c|c|c|c|c|c|} \hline$5,602.62 & $5,714.67 & $5,828.97 & $5,945.55 & $6,064.46 & $6,185.75 \\ \hline $183,452.62 & $195,714.67 & $203,428.97 & $212,445.55 & $217,889.46 & $221,385.75 \\ \hline \end{tabular} Vacancy Loss Collection Loss Total vacancy and Collection Loss \begin{tabular}{|c|c|c|c|c|c|} \hline($9,172.63) & ($9,785.73) & ($10,171.45) & ($10,622.28) & ($10,894.47) & ($11,069.29) \\ \hline($5,503.58) & ($5,871.44) & ($6,102.87) & ($6,373.37) & ($6,536.68) & ($6,641.57) \\ \hline($14,676.21) & ($15,657.17) & ($16,274.32) & ($16,995.64) & ($17,431.16) & ($17,710.86) \\ \hline \end{tabular} Effective Gross Income \begin{tabular}{|l|l|l|l|l|l|} \hline$168,776.41 & $180,057.50 & $187,154.65 & $195,449.90 & $200,458.30 & $203,674.89 \\ \hline \end{tabular} Expenses Capex \begin{tabular}{|c|c|c|c|c|c|} \hline($70,000.00) & ($71,400.00) & & & & \\ \hline($10,800.00) & ($12,600.00) & & & & \\ \hline \end{tabular} NOI Year 5 Selling Price less selling expenses Cashflow from Sale \begin{tabular}{|l|l|l|l|l|l|} \hline$87,976.41 & & & & & \\ \hline \end{tabular} Casflows \begin{tabular}{|l|} \hline \\ \hline \\ \hline \end{tabular} Property Value in Year 0 \begin{tabular}{|c|c|c|c|c|} \multicolumn{1}{c}{ Year 1 } & \multicolumn{1}{c}{ Year 2 } & Year 3 & Year 4 & Year 5 \\ \hline$87,976.41 & & & & \\ \hline \end{tabular} Part 2 Assumptions 7 Expenses for 2015 are $7.00 psf and grow at 2% per year 8 Capex Requirements are $6.00 per square foot for each lease that renews, to be paid in the first year of the extended period Lease Rollover by year as follows: 9 The Terminal Cap Rate at the end of year 5 is expected to be 10.50% 10 Selling costs for Investment Buildings are estimated at 5% of the sale price 11 To determine purchase price of building in Year 0, identify the cashflows for the 5 year hold period and discount at 9%Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started