Total development costs are $250/SF. Investors are willing to pay property prices of $11.76 per dollar of

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Total development costs are $250/SF. Investors are willing to pay property prices of $11.76 per dollar of current rental income.

(a) What is the implied cap rate?

(b) What is the replacement cost rent in this market?

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Financial Management Core Concepts

ISBN: 978-0132671033

2nd edition

Authors: Raymond M Brooks

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Posted Date: Mar 21, 2024 03:38 AM

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Total development costs are $250/SF. Investors are willing to pay property prices of $11.76 per dollar of

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a To calculate the implied cap rate we can use the investors willingness to pay p... View the full answer

Financial Management Core Concepts

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