Your company is contemplating the acquisition of an aged commercial property that's expected to be in rvice for another 25 years. Current tenants have recently committed to extended lease agreements, ggesting the annual rent of $500,000 is likely to be steady for the initial five years. Post that, expect a 10% ke in this rental amount at the end of every five-year span for the property's remaining tenure. You ticipate that the first year's operational costs, inclusive of tax, will amount to $100,000, with an annual crement of $5,000 from the second year onwards. After the 25-year timeframe, you plan to demolish the ructure and vend the land, projecting a net gain of $80,000. Given an alternative investment offering a yearly turn of 12%, what's the utmost sum you'd part with currently for the aforementioned property and land?

An owner of the ATRIUM Tower Office Building is currently negotiating a five-year lease with ACME Consolidated Corporation for 20,000 rentable square feet of office space. ACME would like a base rent of $11 per square foot (PSF) with step-ups of $1 per year beginning one year from now. Required: a. What is the present value of cash flows to ATRIUM under the above lease terms? (Assume a 10% discount rate.) b. The owner of ATRIUM believes that base rent of $11 PSF in (a) is too low and wants to raise that amount to $15 with the same $1 step-ups. However, now ATRIUM would provide ACME a $53,000 moving allowance and $130,000 in tenant improvements (Tls). What would be the present value of this alternative to ATRIUM? c. ACME informs ATRIUM that it is willing to consider a $14 PSF with the $1 annual stepups. However, under this proposal, ACME would require ATRIUM to buyout the one year remaining on its existing lease in another building. That lease is $6 PSF for 20,000 SF per year. If ATRIUM…

A property worth $16 million can be refinanced with an 85% loan at 9.5% over 20 years. The balance on the current loan is $12,148,566. Loan payments are $113,302 per month. The loan balance in 10 years will be $8,396,769. If the property is expected to be sold in 10 years, what is the incremental cost of refinancing? a)11.18% b)12.42% c) 10.45% d) 10.94%

A building is expected to require $1,000,000 in capital improvement expenditures in five years (60 months). The building's net operating cash flow prior to that time is expected to be at least $20,000 at the end of every month. How much of that monthly cash flow must the owners set aside each month in order to have the money available for the capital improvements, assuming monthly interest rate is 1.5%? Group of answer choices $14,332.83 $13,609.73 $12,666.67 $10,393.43