Question: Please answer with all steps and a brief description on how you got those steps if possible. Thank You! Question #4: Building is stabilized at

Please answer with all steps and a brief description on how you got those steps if possible. Thank You!

Question #4:

Building is stabilized at $4.7M and the purchase price is $77.8M.

- What is the cap rate?

- What is the risk premium when the 10-year treasury is at 4.3%?

Questions #5:

Givens: Four-Year Hold Period Lease: Full Service SF: 9,500 GPI: $540,720 Operating Expenses: $4.30 Rent/ Income Growth at 3% per year. Vacancy: 8% Debt: None Going-In Cap Rate: 7.2% Year Four Purchase Price: $9.2M - What is the NOI? - What is the purchase price? - Annual Rate of Return each year? - Total rate of return in year four? - Going-out cap rate? - Sale Proceeds - REDO with a NNN Lease - Compare your return between the two lease types - Which, as an owner, would you prefer to have as an investment?

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