Your client has hired you to assess the financial feasibility of developing a commercially-zoned parcel of land in the County of Henrico, Virginia. Specifics about the property include: .The total area of the subject property is 3.5 acres You have prepared a schematic layout of the site and determined that once all setback requirements are met and the minimum number of parking spaces are provided, that the maximum building size the site can accommodate is 25,000 square feet. The average commercial retail rent in this area is $30 per building square foot. . Sanitary sewer and water service is not presently available to the parcel. Costs to extend public utility lines to the parcel are estimated as follows: o Sanitary sewer extension: $22,000 o Waterline extension: $35,000 In order to achieve acceptable site distance at the entrance to the parcel, road frontage improvements are required. The cost of these improvements is estimated to be $50,000. Site development costs (grading, curb & gutter, etc.) are estimated to be $325,000 per acre. The cost of constructing the commercial building is estimated to be $95 per building square . foot. Engineering and architecture fees are estimated to be $25 per building square foot. Permit fees are estimated to be $15 per building square foot and plan review fees are estimated at $8 per building square foot. The project is estimated to take 2 years to complete. During this time, the developer will incur annual financing fees of 7.0% of the price paid for the land. Your client walks away from deals that generate an annual yield of less than 12%