How much would the cost be for the subject property (per SF basis) in order to...

How much would the cost be for the subject property (per SF basis) in order to produce a feasibility annual rent of $43.00/SF

Site 5.36 acres

Land value $12.00

Net rentable area of building 89%

Building size 100,000SF

Cap rate 9.25%

Vacancy rate 5%

Management 5.5% of EGI

Real estate taxes 1.2% of value

Variable expenses are $200,000

Fixed expenses $500,000

Replacement reserves $200,000

Expert Solution

Note: Conversion of acres to sq ft was done from google
Since land value per unit was not mentioned, I have assumed it to be on per sqft basis

Effective Gross Income = Gross Rent - Vacancy Rate

Value of Property = Net Operating Income / Cap Rate
= 2,702,067.90 / 9.25%
= $29,211,544.86

Cost of Property = Value of Property - Replacement Reserves
= 29,211,544.86 - 200,000
Cost of Property = $29,011,544.86

jeff jeffy answered 1 year ago

Taxpayer files bankruptcy, basis of property subject to reduction is limited to?

Danny's MegaHouse has property insurance on a replacement cost basis with a $5,000 per occurrence deductible....

Danny's MegaHouse has property insurance on a replacement cost basis with a $5,000 per occurrence deductible. It can install automatic sprinklers in its warehouse for an initial cost of $10,000. The sprinklers will last five years. Annual maintenance of the sprinklers will be $1,000, payable at the end of each year for the first four years from the time of installation. If Wood installs the sprinklers, it will deduct one-fourth of the installation price at the end of each year...

How much should you deposit into a bank account annually in order to buy a property...

How much should you deposit into a bank account annually in order to buy a property that you expect to cost $231400 in 4 years if the account pays 3% annual interest? You are able to deposit $1355 quarterly into a bank account that is paying 14% annually. How much will you be able to accumulate after 8 years? (Express your answer as a positive number and to two decimal places.)

A property is subject to taxation at a rate of $2.69485 per $100 of value. If...

A property is subject to taxation at a rate of $2.69485 per $100 of value. If the property has an assessed value $275,000 the tax amount due would be? a. $74,108.38 b. $ 741.08 c. $7,410.84 d. $7,425.00 e. $7,140.84 Which of the following describes a Gross Lease? a. A lease in which the tenant pays rent plus defined operating expenses related to the property. b. An agreement in which the tenant pays a fixed amount of rent and some...

How much does signboard maintenance cost per year?

How much Human Resources cost would be allocated to Cafeteria?

Marshall Welding Company has two service departments (Cafeteria and Human Resources) and two production departments (Machining and Assembly). The number of employees in each department follows. cafeteria 20 human resources 30 machining 100 assembly 150 Marshall Welding uses the step-down method of cost allocation and allocates cost on the basis of employees. Human Resources cost amounts to $1,200,000, and the department provides more service to the firm than Cafeteria. How much Human Resources cost would be allocated to Cafeteria? a....

How much would you need to deposit in an account now in order to have $6000...

How much would you need to deposit in an account now in order to have $6000 in the account in 5 years? Assume the account earns 2% interest compounded daily. $ You decide to contribute to a mutual fund that averages 3.6% return per year. If you contribute $225 quarterly. Round all answers to the nearest cent as needed. a) How much will be in the account after 15 years? $ b) How much of this money did you deposit?...

Question