cial terms and performance ratios (see graphic). You want to buy it at an 8.5 cap. What is your , at the 8.5 cap? Show your work. PROPERTY INFO FINANCIAL SUMMARY Tenant Dollar General Purchase Price $1,519,661* Street Address 511 Old Route 15 Cap Rate 6.80% City Port Trevorton Net Operating Income $103,337 State PA Price / SF $167 Zip 1/864 Rent/SF $40 *Offering 2.5% Fee to Buy-Side Broker APN 05-05-003
cial terms and performance ratios (see graphic). You want to buy it at an 8.5 cap. What is your , at the 8.5 cap? Show your work. PROPERTY INFO FINANCIAL SUMMARY Tenant Dollar General Purchase Price $1,519,661* Street Address 511 Old Route 15 Cap Rate 6.80% City Port Trevorton Net Operating Income $103,337 State PA Price / SF $167 Zip 1/864 Rent/SF $40 *Offering 2.5% Fee to Buy-Side Broker APN 05-05-003
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
![a. You are considering acquiring a building with a Dollar General as tenant and the following
financial terms and performance ratios (see graphic). You want to buy it at an 8.5 cap. What is your
offer, at the 8.5 cap? Show your work.
PROPERTY INFO
FINANCIAL SUMMARY
Tenant
Dollar General
Purchase Price
$1,519,661*
Street Address
511 Old Route 15
Cap Rate
6.80%
City
Port Trevorton
Net Operating Income
$103,337
State
PA
Price / SF
$167
Zip
17864
Rent/SF
$40
*Offering 2.5% Fee to Buy-Side Broker
APN
05-05-003
DOLLAR GENERAL
CONTACT INFORMATION
GLA
9,100 SF
Listing Agent
Nina McGaughy
Lot Size
1.31 AC
Phone Number
(424) 325-2624
Year Built
2019
INVESTMENT HIGHLIGHTS
Absolute Net (NNN) Investment
Dollar General operates on an Absolute Net (NNN) Lease with tenant fully responsible for maintenance,
insurance and taxes providing the landlord with a low maintenance asset
DOLLAR GENERAL
Corporate Guarantee
Dollar General Corporation (NYSE:DG) is a fortune 500 company with over 80 years in business and $25.6
billion in revenue FY'18.
Future Rent Growth-10% Increases In Each Option Period
There are 10% rental increases built into the lease in each option period, providing the landlord with positive
rent growth and a hedge against inflation..
Strong Tenant Commitment
The lease features an initial term of 15 Years with an additional three (3) 5-year options to extend the lease
w Opan
NERAL
Representative Photo](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0de230dc-73e1-408f-85fe-0d0e78ad3d1a%2F97ce7389-56d1-4c25-85bc-6242364749e5%2Fkzmv4q9_processed.png&w=3840&q=75)
Transcribed Image Text:a. You are considering acquiring a building with a Dollar General as tenant and the following
financial terms and performance ratios (see graphic). You want to buy it at an 8.5 cap. What is your
offer, at the 8.5 cap? Show your work.
PROPERTY INFO
FINANCIAL SUMMARY
Tenant
Dollar General
Purchase Price
$1,519,661*
Street Address
511 Old Route 15
Cap Rate
6.80%
City
Port Trevorton
Net Operating Income
$103,337
State
PA
Price / SF
$167
Zip
17864
Rent/SF
$40
*Offering 2.5% Fee to Buy-Side Broker
APN
05-05-003
DOLLAR GENERAL
CONTACT INFORMATION
GLA
9,100 SF
Listing Agent
Nina McGaughy
Lot Size
1.31 AC
Phone Number
(424) 325-2624
Year Built
2019
INVESTMENT HIGHLIGHTS
Absolute Net (NNN) Investment
Dollar General operates on an Absolute Net (NNN) Lease with tenant fully responsible for maintenance,
insurance and taxes providing the landlord with a low maintenance asset
DOLLAR GENERAL
Corporate Guarantee
Dollar General Corporation (NYSE:DG) is a fortune 500 company with over 80 years in business and $25.6
billion in revenue FY'18.
Future Rent Growth-10% Increases In Each Option Period
There are 10% rental increases built into the lease in each option period, providing the landlord with positive
rent growth and a hedge against inflation..
Strong Tenant Commitment
The lease features an initial term of 15 Years with an additional three (3) 5-year options to extend the lease
w Opan
NERAL
Representative Photo
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