Question: please show work 4. Using Excel, calculate the combined Present Value of the Rental Stream and Sale (no calculation for construction period) of a property
4. Using Excel, calculate the combined Present Value of the Rental Stream and Sale (no calculation for construction period) of a property with the following characteristics: Building Size: 110,000 SF, Single-Tenant (no vacancy factor) Land Value: $1,750,000 = Appraised Value Construction Cost: $245 per SF (combined hard & soft) - Appraised Value Annual Rent: $32 per SF, NNN Rent Escalation: 2.5% per annum .8 LTV, interest only @ 5.35% per annum Sale: End of year 5 Sale Price: Year 5 NOI (NNN rent) capitalized at 6.45% Remember, we are only looking at the cash events of the rental stream and the sale of the property. Do not concern yourself here with paying the bank back. That will be addressed next week when we study Net Present Value. 4. Using Excel, calculate the combined Present Value of the Rental Stream and Sale (no calculation for construction period) of a property with the following characteristics: Building Size: 110,000 SF, Single-Tenant (no vacancy factor) Land Value: $1,750,000 = Appraised Value Construction Cost: $245 per SF (combined hard & soft) - Appraised Value Annual Rent: $32 per SF, NNN Rent Escalation: 2.5% per annum .8 LTV, interest only @ 5.35% per annum Sale: End of year 5 Sale Price: Year 5 NOI (NNN rent) capitalized at 6.45% Remember, we are only looking at the cash events of the rental stream and the sale of the property. Do not concern yourself here with paying the bank back. That will be addressed next week when we study Net Present Value
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