Question $21$

$3\mathrm{.}3$ pts

A real estate investor has the following information on a warehouse:

Purchase Price is $$1,125,000,33,600$ leasable square feet. Initial rent of $$\frac{20}{?}$ sq$.$ ft$.$ per year and will increase $3$ percent per year, Vacancy rate of $5\%$ of gross rent per year, Operating Expenses are $40\%$ of Effective Gross Income, and Capital expenditures are $$12,000$ first year and will grow at $3\%$ per year. Mortgage is $75\%$ LTV ratio, $20$ years term and $9\%$ contract mortgage rate. Assuming that you will sell the property and there is $6\%$ selling cost at the end of year $2.$ Expected selling Warehouse price is NOI of year $3$ capitalized at $25\%.$

Compute NOI for year $1.$

$365,120$

$381,210$

$371,040$

$356,210$