This question is related to the Harvard Business Review $503$ Cricket Road Case. In addition to all the information provided in the $503$ Cricket Road case, you are also provided the following information:

$1)$ In September of $2003,$ Sexton received a call from Jennifer Wand, someone he knew casually from his MBA class. Through friends of friends, Jennifer had heard that Sexton was interested in redeveloping his property. As it turned out, Jennifer owned the property next door at $501$ Cricket Road, and she was interested in selling her property.

$2)501$ Cricket Road was also a similarly aged student housing apartment with other details as follows:

a$.10$ Units with $17$ students each paying $$135$ per month

b$.$ Total operating expenses including Management fees and Repairs of $$16,000$

c$.$ The land area of the property was approximately $20,000$ square feet

$3)$ At their first meeting, Jennifer told Sexton, she had spoken to a real estate broker whoquietly shopped the property to several of their clients. The broker brought forward an offer of $$165,000$ from a larger developer from the area whose intention was to tear down her existing apartment and build new student housing. The broker also presented an offer of $$150,000$ from an existing apartment owner from the area that was looking to add to add to their portfolio of apartments $$ this potential buyer is not a developer and intended to keep the existing building.

Questions to Consider for this Case:

Does building a new apartment development make sense? What are the biggest risks that Sexton faces? Based on what you know so far, explain if you think Sexton is capable of developing a new apartment building.

With all the information now available, please make a recommendation to Sexton as to his best course of action. Please show your proformas and calculations to support your recommendation.