16) An Investor is underwriting an asset for purchase. The building is 634,000 SF and has...

Transcribed Image Text:

16) An Investor is underwriting an asset for purchase. The building is 634,000 SF and has 22 tenants. The average in place annual net rent in the building is $23.57. The monthly operating expenses for the building are $431,455. a. (1pt) If the owner paid $168,400,000 for the building, what would their going in cap rate be on the acquisition? b. (1pt) What is the cap rate if the owner had only paid $68,400,000? 16) An Investor is underwriting an asset for purchase. The building is 634,000 SF and has 22 tenants. The average in place annual net rent in the building is $23.57. The monthly operating expenses for the building are $431,455. a. (1pt) If the owner paid $168,400,000 for the building, what would their going in cap rate be on the acquisition? b. (1pt) What is the cap rate if the owner had only paid $68,400,000?