Description of properties
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Description of Properties. Apartment Building Requires land + construction. Class A Office Building Requires purchase of existing building. Retail Building Requires purchase of existing building. Apartment Building Property. Class-A Office Building Property. Retail Building Property.

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Description of properties
Description of Properties

  • Apartment Building

  • Requires land + construction

  • Class A Office Building

  • Requires purchase of existing building

  • Retail Building

  • Requires purchase of existing building





Conclusions
Conclusions

  • The Class-A office building property would be the preferred investment project since:

    • The rent required to meet financial obligations with the loan is approx. 17% lower than the current market rate making this project a feasible investment.

    • In addition, the NPV is the highest of the three projects evaluated at approx. $221,000.

  • According to the SFFA analysis the only property that would not be a feasible investment project is the apartment building

    • The required rent to meet the financial obligations, according to the current loan terms, is higher than the current market rate, therefore, making this project

    • The NPV is showing positive assuming the rent at market rate. However, we know that at this rate we would not be able to meet loan obligations.

  • The retail building was also an attractive and feasible investment project because:

    • The required rent to meet loan obligations is lower than the market rate by close to 14%; and

    • The NPV is $176,000.


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