1. What is the proposed Net Operating Income?
   1. $5,210,000
   2. $4,878,500
   3. $6,538,500
   4. $6,630,000

2. What is the Total Cost To Achieve Developer Return
   1. $65,205,000
   2. $32,365,000
   3. $97,570,000
   4. $1,660,000

3. What is the total of Hard Costs, Soft Costs, and Contingency?
   1. $65,205,000
   2. $32,365,000
   3. $97,570,000
   4. $1,660,000

4. How much can the developer pay for the land to achieve a 5%return?
   1. $65,205,000
   2. $32,365,000
   3. $97,570,000
   4. $1,660,000

5. In the event rent estimates are revised to $3.30 PSF,
   1. the developer can pay more for the land.
   2. the developer can pay less for the land.
   3. there is no impact on what the developer can pay.

6. In the event construction bids for hard costs come in at $268PSF,
   1. the developer can pay more for the land.
   2. the developer can pay less for the land.
   3. there is no impact on what the developer can pay.

Transcribed Image Text:

PROPOSED DEVELOPMENT Size/Units Gross Rentable SF Net Rentable SF after Loss Number of Units Average Size Per Unit Income Assumptions Monthly Rent Per Unit PSF Vacancy Factor Service & Other Income Per Unit Annual Operating Expenses Per Unit Cost Assumptions Hard Cost Per Gross SF Soft Cost Percent of Hard Cost Contingency Return Requirement Developer Required Return 200,000 170,000 200 850 $3.25 5.0% 1,200 $8,300 $270 15.00% 5.00% 5.00% PROPOSED DEVELOPMENT Size/Units Gross Rentable SF Net Rentable SF after Loss Number of Units Average Size Per Unit Income Assumptions Monthly Rent Per Unit PSF Vacancy Factor Service & Other Income Per Unit Annual Operating Expenses Per Unit Cost Assumptions Hard Cost Per Gross SF Soft Cost Percent of Hard Cost Contingency Return Requirement Developer Required Return 200,000 170,000 200 850 $3.25 5.0% 1,200 $8,300 $270 15.00% 5.00% 5.00%

Answer rating: 100% (QA)

Net operating income Annual renta income 3251700001215 6298500 Service and other income 120020... View the full answer