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Styles 16) An Investor is underwriting an asset for purchase. The building is 634,000 SF and has 22 tenants. The average in place annual net

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Styles 16) An Investor is underwriting an asset for purchase. The building is 634,000 SF and has 22 tenants. The average in place annual net rent in the building is $23.57. The monthly operating expenses for the building are $431,455. a. (1pt) If the owner paid $168,400,000 for the building, what would their going in cap rate be on the acquisition? i. 8.5% ii. .057% iii. 5.8% iv. 8.9% b. (1pt) What is the cap rate if the owner had only paid $68,400,000? i. 14.3% ii. 21.8% iii. 4.3% iv. 13.4%

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