The Final Assignment requires you to apply your tools to the Sofia Lofts case, but under a new set of assumptions on page 11 of the case. First re-read the Sofia Lofts case, then click here to download the new page 11 Download click here to download the new page 11. Specifically, you are to write up a brief analysis

of the case with this new page 11, primarily using your Toolkit in the analysis. Assume for Assignment purposes that your boss has asked you to provide an analysis of the proposed Sofia Lofts development.

Assume for Assignment purposes that I am your boss and I have asked you to provide an analysis of the proposed Sofia Lofts development. We are considering investing in the deal, and want your view of the project. Make a recommendation on whether you believe we should invest or not, using the tools below.

In addition to turning in a written analysis, you will also turn in an Excel file demonstrating your answers, formulas, and all work. You will upload and submit your Excel file on the next page.

Tools/items which you are required to use include:

Market Value Today (at stabilization)

Value Creation/Loss Since Development (excl. cash flow)

Average Cash on Cash Return (10-yr Avg.)

Equity Multiple (assume sale in Yr 10)

Loan Constant

Development Cost Per Unit

Most Profitable Unit Style Per Square Foot

Construction Loan Interest Paid

In addition, select no less than 5 additional tools which you believe are relevant to understanding the Sofia Lofts development. The additional tools selected should be qualitative in nature, as opposed to the quantitative tools used above.

Do not worry about any ambiguity or information which is not provided. Frequently, we are asked to review deals with limited and imperfect/unverified information. Do your best to demonstrate that you know how to apply tools to analyze a development project, and make a coherent and well-thought-out recommendation.

SOFIA LOFTS - PROJECT INFORMATION SOFIA LOFTS - PROJECT INFORMATION