You are a real estate investor considering purchasing a 200,000 square foot parcel in order to build a two-story warehouse, which will be leased to four tenants. The parcel is zoned for industrial use and comes with a 2.5 FAR. The site is presently on the market for $20,000,000. Your investors are looking to achieve no less than a 15% rate of return. The improvement will contain several large loading docks and is adjacent to a main rail line and small shipping terminal. Part of the building offers refrigerated storage. You expect to lease the space to four tenants: Baskin Robbins, which occupies 175,000sf and pays a base rent of $8.25psf, Tokar Enterprises, which occupies 80,000 square feet and pays a base rent of $9.00psf, Ascella Financial, which occupies 95,000 square feet and pays a base rent of $8.50psf and ColdStone Creamery, which occupies 150,000 square feet and pays $8.00psf in base rent. The market appears relatively strong, with an expected commercial vacancy rate of 7.00%. The leases for both Baskin Robbins and ColdStone allow the landlord to recover fuel and utilities on a pro-rata PSF basis for each tenant. Though the building will be new you expect to reserve