A 24-acre site can be purchased. The site is zoned for one-story office development. Zoning allows for lot coverage of 35%, (Paved areas count as…

A 24-acre site can be purchased.  The site is zoned for one-story office development.  Zoning allows for lot coverage of 35%, (Paved areas count as coverage in addition to buildings in this zoning code.) and the project requires 165,904 square feet of pavement for parking and vehicle maneuvering.  A general contractor quotes a GMP contract price of $110.00 per square foot, including adequate contingency and contractor’s fee.  Soft costs, including development fee and contingency are $25 per square foot.  Pro-forma rents are $20.00 per square foot (NNN), expenses are $4.00 per square foot and real estate taxes are $5.00 per square foot.  An engineering firm will pre-lease 50,000 square feet of the building at $18.00 per square foot (NNN).  It will take 12 months to build the building and a construction loan is available for 70% of hard and soft costs at an interest rate of 7.5% (interest only).  Assume that the average percentage of the loan that is outstanding for the year-long construction period is 50%.

  1. How big of a building can you build? Blank 1 (round to the nearest square foot) What is the interest expense per square foot in this budget? Blank 2 (do not include a dollar sign and round to the nearest 0.00)
  2. What could you pay for the land per square foot of building to earn 10.5% on cost (assume a 5% overall vacancy factor)? Blank 3(do not include a dollar sign and round to the nearest 0.00)

Based on the information in the previous question: 

  1. What is the average overall NNN rent you could charge to yield 12% if you pay the price for land as answered in (3.) above and vacancy remains at 5%? [4]  (do not include a dollar sign and round to the nearest 0.00)
  2. What is the breakeven occupancy level before debt service at completion and lease-up? [5]  (round to the nearest whole percent e.g. 50%)

Show more







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10