Tishman Speyer announced that it has acquired The Eddy, a recently-constructed, high-rise apartment tower located on the East Boston waterfront, from Green Cities Company for $135 million.

https://bostonrealestatetimes.com/tishman-speyer-purchases-the-eddy-its-first-multifamily-acquisition-in-boston/

Built in 2016, The Eddy features 259 market rate rental apartments that include a mix of studio, one-bedroom and two-bedroom floor plans. At 17 stories, the LEED Gold certified tower is East Boston's tallest, providing unrivaled views of the Boston Harbor and the city skyline.

Do some additional outside research to come up with an estimate of Tishman's financial analysis of this project. There's enough information publicly and readily available to you. Make reasonable estimates using publicly available data. Make sure to properly cite your research using citations.

Assume that:

1) Tishman financed 60% of the purchase price using a 3% loan with 30 year amortization;

2) Tishman elects to allocate 10% of the purchase price to land;

3) Tishman intends to sell "The Eddy" for $150 million dollars after 5 years of ownership;

4) Capital Gains tax rate is 15%, Depreciation recapture/tax rate is 25%

Submit an MS Excel workbook showing your work, listing your assumptions and including calculations for the following:

Compute:

- Please upload your estimates and calculations used to derive the gross income for "The Eddy".

- Please upload the calculations used in computing Tishman's property basis and monthly debt service.

Before-Tax Cash Flow from the Property Sale (BTCFs)for scenario 3.

Before - Tax Cash Flow From Operations (BTCFo)

Debt Coverage Ratio (DCR)

Equity Dividend

Equity Dividend Rate

Debt Coverage Ratio

After Tax Cash Flow

Provide an overall synopsis of your analysis of Tishman's purchase and their contemplated sale. Should Tishman ask for a lower or higher price? Why or Why not?