Leveraging the comprehensive quantitative analysis recently conducted, integrate the insights gained from the fundamental unlevered tenant and
Question:
Leveraging the comprehensive quantitative analysis recently conducted, integrate the insights gained from the fundamental unlevered tenant and location analysis performed during the conclusion of week 2. In your investment recommendation write-up, address two key aspects: first, propose the maximum price considered reasonable for the acquisition, meticulously considering the distinctive locations of the various properties, lease structures and terms, and any identified risks. Second, recommend an optimal deal structure, including choices and sizes of loans. Delve into the pros and cons of each aspect, ensuring a judicious balance that reflects a thoughtful trade-off between risk and returns.
Additionally, provide a thorough examination of how the recommended final price and capital structure offer mitigants for the most prominent risks identified in the analysis. Consider how each element contributes to risk management and aligns with the overarching goal of delivering a 20% expected return. This multi-faceted approach will provide a nuanced understanding of the proposed investment strategy, emphasizing the thoughtful consideration given to risk mitigation and value optimization.