a single tenant net leased property with a new 15-year lease with annual 3% increases....
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Finance
a single tenant net leased property with a new 15-year lease with annual 3% increases. Year 1 NOI is $125,000. You buy the property on day 1 of the lease paying $2,500,000. You estimate that the exit cap will be 50 basis points higher than your going in cap rate. Expected return is 8.0%.
What is the terminal value in Year 7?
$2.7 million
$3.1 million
$2.8 million
$2.3 million
Assuming a Year 10 sale, what portion of the IRR is associated with the sale of the property?
60%
70%
25%
30%
A competing investment with 50% of the IRR associated with the sale of the property would be considered riskier than the property considered.
True
False
What is the terminal value in Year 7?
$2.7 million
$3.1 million
$2.8 million
$2.3 million
Assuming a Year 10 sale, what portion of the IRR is associated with the sale of the property?
60%
70%
25%
30%
A competing investment with 50% of the IRR associated with the sale of the property would be considered riskier than the property considered.
True
False
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