Question: I need this calculated with formulas to show how it all works together. I dont know why it didnt print the grid and boxes from
I need this calculated with formulas to show how it all works together. I dont know why it didnt print the grid and boxes from excel.
REAL ESTATE FINANCE & INVESTMENT ANALYSIS As a loan officer at Chaso Manhatten Credit Union, you have been asked to make a recommendation as to the maximum loan that your bank should extend to the potential buyer of the Mountain Views Shopping Center. The rent roll is given below. Market research indicates that the current market rental for leasing a comparable vacant unit is $20.00 per square foot per year. Your research also indicates that the market rent is expected to increase by 2.25 % annually Calculate the total gross rents for the next 11 years. A template has been provided to assist you The loan is to be issued at 4.75% with monthly payments based upon a 30 year term, but it will have a ten year call term. Expenses are expected to be $3.12 per sq. foot this year and are expected to increase by 2.9% cach year thereafter. Currently all of the units are Icased but you still anticipate 3.0% in collection losses this year and for the next ten years. Further, when a lease expires, you estimate that the space will be vacant for three months. Capitalization rates are currently around 12.5%. Therefore, comparable properties are selling for about 8 times the next year's anticipated net operating income and this is expected to remain the same for the next ten years. What is the estimated value of this property using a discounted cash flow approach to valuation and a discount rate of 14% What is the discounted cash flow value of the property? RENT ROLL TENANT Northsouth Airlines TERM REMAINING SIZE(SF) 800 CURRENT RATE 5 years $20.60 Blue Goose Grocer 1325 10 years $19.65 LEASE TYPE Sicp $ 50 year Graduated + 2year Step $130/year Step 5.75/yt Graduated The Dime Store 2,000 3 years $19.75 Everyman S&L 2,100 6 years $20.15 Sam's BBQ 400 $19.10 Bill and Ted's Excellent Desserts 1.500 Step 5.80ly. 2 years $19.25 Dr. Judy's Pharmacy All-Sur Sports 3.100 Flat 2,800 Step 5.75y 8 years 3 years 520.00 S1895 Little Johns Clothing 1,500 Step $1.50 4 years $18.25 ABC Collectibles Pizza Palace 500 Flat $19.00 1,000 1 year 2 years $18.25 DWTS Dance Studio Step SLOT Step $1.25yr 2.000 3 years $19.25 REAL ESTATE FINANCE & INVESTMENT ANALYSIS As a loan officer at Chaso Manhatten Credit Union, you have been asked to make a recommendation as to the maximum loan that your bank should extend to the potential buyer of the Mountain Views Shopping Center. The rent roll is given below. Market research indicates that the current market rental for leasing a comparable vacant unit is $20.00 per square foot per year. Your research also indicates that the market rent is expected to increase by 2.25 % annually Calculate the total gross rents for the next 11 years. A template has been provided to assist you The loan is to be issued at 4.75% with monthly payments based upon a 30 year term, but it will have a ten year call term. Expenses are expected to be $3.12 per sq. foot this year and are expected to increase by 2.9% cach year thereafter. Currently all of the units are Icased but you still anticipate 3.0% in collection losses this year and for the next ten years. Further, when a lease expires, you estimate that the space will be vacant for three months. Capitalization rates are currently around 12.5%. Therefore, comparable properties are selling for about 8 times the next year's anticipated net operating income and this is expected to remain the same for the next ten years. What is the estimated value of this property using a discounted cash flow approach to valuation and a discount rate of 14% What is the discounted cash flow value of the property? RENT ROLL TENANT Northsouth Airlines TERM REMAINING SIZE(SF) 800 CURRENT RATE 5 years $20.60 Blue Goose Grocer 1325 10 years $19.65 LEASE TYPE Sicp $ 50 year Graduated + 2year Step $130/year Step 5.75/yt Graduated The Dime Store 2,000 3 years $19.75 Everyman S&L 2,100 6 years $20.15 Sam's BBQ 400 $19.10 Bill and Ted's Excellent Desserts 1.500 Step 5.80ly. 2 years $19.25 Dr. Judy's Pharmacy All-Sur Sports 3.100 Flat 2,800 Step 5.75y 8 years 3 years 520.00 S1895 Little Johns Clothing 1,500 Step $1.50 4 years $18.25 ABC Collectibles Pizza Palace 500 Flat $19.00 1,000 1 year 2 years $18.25 DWTS Dance Studio Step SLOT Step $1.25yr 2.000 3 years $19.25
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