Using the following assumptions in the pro forma: 108,000 apartment building with 87% efficiency and hard...

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Using the following assumptions in the pro forma: 108,000 apartment building with 87% efficiency and hard cost per square foot of 192/SF Land cost of $2MM; Soft costs of 20% Expense ratio of 35%; DSCR of 1.20x A loan with an interest rate of 7.5%, 30-year amortization, 10-year term, underwritten to 5% vacancy Rents averaging $3/FT per square foot per month with income trending at 3% and expenses at 3.5% Cap rate of 6% The cash-on-cash return is $ choose your answer... choose your answer... %; the IRR is choose your answer... ✓%; and the equity available for distribution to the investors is about Using the following assumptions in the pro forma: 108,000 apartment building with 87% efficiency and hard cost per square foot of 192/SF Land cost of $2MM; Soft costs of 20% Expense ratio of 35%; DSCR of 1.20x A loan with an interest rate of 7.5%, 30-year amortization, 10-year term, underwritten to 5% vacancy Rents averaging $3/FT per square foot per month with income trending at 3% and expenses at 3.5% Cap rate of 6% The cash-on-cash return is $ choose your answer... choose your answer... %; the IRR is choose your answer... ✓%; and the equity available for distribution to the investors is about

Answer rating: 100% (QA)

Solution To determine the IRR we need to calculate the net operating income NOI and the total initia... View the full answer