University is deciding whether to invest in a property or not. The property has 4 floors which
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Question:
Utilities are $1.00 for sf/yr and maintenance is $0.75 per sf/yr. The market price is $25,000,000. Similar properties trade at only 5% cap rate.
Calculate the property’s first-year NOI. Finally, using the given cap rate, do you believe Drexel University should invest in this property? What if the cap rate was 3.7%?
Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
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