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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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Presentation Transcript
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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