The much-prized Concord site led Boston Properties to want to build a quality 148,000/SF office development using quality building materials and quality architecture. It would not come cheaply. Estimated costs, including land, were $25 million in 1984, or over $169/SF, which at $23.50/SF rents gross, less $1.00 for vacancy and reserves and $5.50 in operating costs and real estate taxes, would yield $17.00/SF or 10.0% on costs. The costs traditionally could be financed with a conventional loan of 80% -- requiring 20% equity including the value of the land. At market at a 9% capitalization rate, the value was estimated to be about $189/SF or $28 million.

1. Vacancy Rate: 10%
2. 
   
3.   

2.1. Create a one-year proforma using the template below for 1984: (black boxes do not need to be filled out) 1984 Proforma/P&L Net Rentable Area Gross rent/sf Gross Potential income Vacancy (use mkt vacancy) Effective Gross Income Operating Expenses Net Operating Income Total Per sf 2.1. Create a one-year proforma using the template below for 1984: (black boxes do not need to be filled out) 1984 Proforma/P&L Net Rentable Area Gross rent/sf Gross Potential income Vacancy (use mkt vacancy) Effective Gross Income Operating Expenses Net Operating Income Total Per sf