Please correct answer and don't used hand raiting Given the following information on real estate development• Gross leasable space is 200,000 square feet• Market rent is $40 per leasable SF•The sum of hard and soft cost is $120 per GSF• Land acquisition cost is $30 per GSF.Loss factor is 10%• Stabilized vacancy rate is 5%•Operating cost is $15 per GSFWhat is the replacement rent per leasable SF to achieve a "Build to Return" equalto 20%? (keep 1 decimal in your answer)Hint: use the spreadsheet in the module to help answer the question.

Step 1:Repleaceable rent Step 2: Step 3: Step 4:

Answered: Given the following information on real…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 17EA: Gardner Denver Company is considering the purchase of a new piece of factory equipment that will...

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A commercial property has PGI of $10 million, expenses of 40% of EGI and the vacancy is underwritten at 10%. What values would the following parameters suggest for the property. Cap rate= 5%. ĒĞI Multiplier=12x and PGÍ multiplier equals 11x.
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Written report with the following content: • Appendix1: Leasing Explain the calculations. Your recommendations Objective: Should FFT lease or construct their own production facility Option 1: Construct Costs to incur: Buying land, construct building and getting ready for use (FFT has these funds available in their bank account today so no mortgage is needed) $ 1,200,000 Taxes, insurance, and repairs (per year) $110,000 Intended years of use 15 Projected market value in 15 years $ 1,250,000 Option 2: Lease Intended years of use 15 Deposit required today (this deposit will be returned to FFT when the lease contract is complete is 15 years) $ 100,000 Annual lease payment $ 160,000 Property taxes (annual) to be paid by FFT $ 15,000 Insurance (annual) to be paid by FFT $ 15,000 Required rate of return 8% Methodology: The consulting team is proposing to perform a NPV analysis and determine the benefit to leasing or construction. Based on the analysis, they will recommend the preferred option…
A commercial property has PGI of $5 million, expenses of 40% of EGI and the vacancy is underwritten at 10%. What values would the following parameters suggest for the property. 70% LTV with a rate of 4.5% and 360 month amortization schedule. Given a property value of $45 million, calculate PGIM, EGIM, Cap Rate, Cash on Cash return and DSSCR.

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