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 $1519.66P Street Address 5 Old Route 15 Cap Rate 6.80% City Port Trevorton Net Operating Income $103,337 State Price/SF $167 Zip Rent/SF $40 APN Oring 2.5% Fee to Buy-dek DOLLA ERA CONTACT INFORMATION GLA Listing Agent Nina McGaughy Lot Size Phone Number (424) 325-2624 Year Built Representan INVESTMENT HIGHLIGHTS Absolute Net (NNN) Investment Dollar General operales on an Absoldie Net (NNN) Lease with lonant fully responible for maintenance, neurance and taxes providing the landlord with a low maminance aut Corporate Guarantee Dollar General Corporation NYSE DC a fotune 500 company with over 80 years in benaness and $256 billon in revenu FYR Future Rent Growth 10% increases in Each Option Period There one K7% stol comes but to the one in each opon penod, providing the landed with po st growth and a hedge aga edation. Strong Tenant Commitment The koase features an anal terms of 15 Years with an additional throe Ch your opeons to extend the loase Ope 3 PM 17864 05-05-003 9300 SF 131 AC 2019 DOLLAR GENERAL b. For the same Dollar General property shown above, forecast the rent after the first 5-year option period, at the beginning of the second 5-year option period (in other words at the rent that will apply during the second 5-year option period). Explain your thought process and show your work