Question: This is a Bonnie Road Case write up. I only need help with doing a 5 year pro forma please help!! Is this a good
- This is a Bonnie Road Case write up. I only need help with doing a 5 year pro forma please help!!
- Is this a good property for Alexander to acquire? Make a table listing the pros and cons of the property. Give at least 3 pros and cons. (10 points).
Category | Pros | Cons |
Tenant Quality | ||
Rents / Leasing | ||
Location | ||
Other... |
I would or would not buy this property because....
- please help make a 5-year pro forma for the property. All analysis should be "before-tax". Ignore depreciation and taxable income. (30 points)
- What market rents per square foot are you assuming in the proforma? Explain and show calculations, if appropriate. (10 points)
- Create an amortization table (monthly) using the debt assumptions in the case: (10 points)
- If the property is sold at the end of Month 60, what is the loan balance at the time of sale? (5 points)
- What should Alexander pay for this property?
- Explain your rationale for your purchase price. (10 points)
- Calculate the following, assuming an exit cap rate of 7% using your proforma and proposed purchase price: (25 points)
- Unlevered IRR, Equity Multiple, and Profit
- Levered IRR, Equity Multiple, and Profit
- Assumptions: List your assumptions
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