GBC Group is venturing into a commercial investment property, featuring a leasable building area of 100,000 square feet with an existing tenant paying a gross rent of $50 per square foot and estimated operating expenses at 50%. The lender is proposing a permanent loan with a loan-to-value ratio of 70%, amortized over 15 years at a 5% interest rate (MPF = 0.007881). Considering a vacancy rate of 5% and a cap rate of 5%, what would be the indicated Breakeven Occupancy Ratio (BOR)? Question 10 options: 133 % 115 % 88% 106%

GBC Group is venturing into a commercial investment property, featuring a leasable building area of 100,000 square feet with an existing tenant paying a gross rent of $50 per square foot and estimated operating expenses at 50%. The lender is proposing a permanent loan with a loan-to-value ratio of 70%, amortized over 15 years at a 5% interest rate (MPF = 0.007881). Considering a vacancy rate of 5% and a cap rate of 5%, what would be the indicated Breakeven Occupancy Ratio (BOR)? Question 10 options: 133 % 115 % 88% 106%

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

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