Assume you have a client with a requirement for a building with 138,000 SF located in the Gowanus, Brooklyn, NY Total hard and soft costs are $241 5 SF You are trying to achieve an unleveraged yield of 6 0 The client is willing to pay a rental rate of $35 0 SF Yr Assume a building to land coverage ratio of 50 At what price will you pay for the land in terms of $ SF of Land Area and achieve your target yield Land is being offered to you at $190 00 SF of Land Area You are trying to achieve an unleveraged yield of 6 0 What is the target rent that you need to achieve your target yield

Question: Assume you have a client with a requirement for a building with 138,000 SF located in the Gowanus, Brooklyn, NY. Total hard and soft costs

Assume you have a client with a requirement for a building with 138,000 SF located in the Gowanus, Brooklyn, NY. Total hard and soft costs are $241.5/SF. You are trying to achieve an unleveraged yield of 6.0%. The client is willing to pay a rental rate of $35.0/SF/Yr.

Assume a building to land coverage ratio of 50%. At what price will you pay for the land in terms of $/SF of Land Area and achieve your target yield?

Land is being offered to you at $190.00/SF of Land Area. You are trying to achieve an unleveraged yield of 6.0%. What is the target rent that you need to achieve your target yield?

Step by Step Solution

★★★★★

3.45 Rating (168 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Scenario 1 Finding Land Price to Achieve Target Yield Given Building Area138000 SF 50 land coverage ratio Total Hard Soft Costs2415SF Target Unleverag... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

LO1 Understand human resource management and define human capital.

Figure shows a cross section of a coal loading facility on a port. Embankments (1), (2) and (4) support railway tracks on which a coal stacker reclaimer can travel. In Figure 1, the coal stacker...

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

Assume you have a client with a requirement for a building with 138,000 SF located in the Gowanus, Brooklyn, NY. Total hard and soft costs are $241.5/SF. You are trying to achieve an unleveraged...

1) Assume you have a client with a requirement for a building with 114,000 SF located in the Lehigh Valley of PA. Total hard and soft costs are $69/SF. You are trying to achieve an unleveraged yield...

Industrial Questions: 1) Assume you have a client with a requirement for a building with 114,000 SF located in the Lehigh Valley of PA. Total hard and soft costs are $69/SF. You are trying to achieve...

Assume you have a client with a requirement for a building with 138,000 SF located in the Gowanus, NY. Total hard and soft costs are $241.5/SF. Assume a building to land coverage ratio of 50%. Land...

Assume you have a client with a requirement for a building with 114,000 SF located in the Lehigh Valley of PA. Total hard and soft costs are $69/SF. You are trying to achieve an unleveraged yield of...

Assume you have a client with a requirement for a building with 114,000 SF located in the Lehigh Valley of PA. Total hard and soft costs are $69/SF. Assume a building to land coverage ratio of 50%....

Which of the following statements concerning the water hardness experiment is/are false? Select all that apply. OA Hard water is usually expressed as total parts per million (ppm) of EDTA by weight....

Refer to the previous question, but assume that the call and put option premiums are $.02 per unit and $.015 per unit, respectively. a. Construct a contingency graph for a long euro straddle. b....

What is the result of utilizing technology in business? Multiple Choice Management becomes isolated from the demands of stakeholders. Technology reduces the need for a marketing plan. Technology...

A. Net is a sole trader and reports the following for the year ended 31 December 20X2: The car that was disposed of during the year was sold for 400, which was lodged in A. Net's bank account....

Baseballs World Series is a maximum of seven games, with the winner being the first team to win four games. Assume that the Atlanta Braves are playing the Minnesota Twins in the World Series and that...

Baseballs World Series is a maximum of seven games, with the winner being the first team to win four games. Assume that the Atlanta Braves are in the World Series and that the first two games are to...

Major League Baseballs World Series is a maximum of seven games, with the winner being the first team to win four games. Assume that the Atlanta Braves are in the World Series and that the first two...

The Statewide Auto Insurance Company developed the following probability distribution for automobile collision claims paid during the past year: Payment ($) Probability 0 ............ 0.83 500...

Giving employees more responsibility, such as in job enrichment, is referred to as loading.backfronthorizontalvertical

On September 1, 2013, Franklin Inc. acquired 40% of the voting shares of Gould Ltd. Under the companys constitution, each share is entitled to one vote. On the basis of past experience, only 65% of...

P7-11 Shelton Ltd. records its transactions in euros since that is its functional currency but must present its financial statements in Canadian dollars as a requirement for the Canadian Securities...

Below is a set of transactions that are independent of each other: 1. A university receives a collection of ancient Roman history books from a donor. 2. A school receives a contribution to buy land...

2. Consider what kinds of cultural variables may account for such differences across countries.

11.5 Define the immigrant paradox.

1. Describe the major ways culture influences each of the psychological domains described in this section to impact physical health.