Based on the following information, develop a front door Simple Financial Feasibility Analysis (SFFA) for this project estimating the required minimum market gross rent per SF that will support development

40,000 Milwaukee Downtown office building project.

Acquisition & construction cost = $1,500,000;

Estimated operating costs (to landlord) = $100,000/yr.

Projected stabilized occupancy = 95%.

Permanent loan available on completion at 9% (interest-only loan) with 130% debt service coverage (DCR) requirement on the net operating income, and 75% maximum loan-to-value (LTV) ratio.

What is required potential gross income (PGI) of the project?

Question options:

	$274,021
	$256,388
	$261,579
	$243,816