Retail Properties - Financial Test 1

Retail PropertiesFinancial Analysis Test 1

 



Whitney Square

is located in your market area.  Analyze it, derive a suggested list price, and complete the investment analysis worksheet on the next page.  Assume the following:  

·        Your analysis begins as of “today,” January 2, 2006·        Loan terms: 1.25 DSCR; 7.5% interest; 25-year amortization; loan rounded to nearest $1,000.·        Capitalization rate: 8%·    Market vacancy factor: 5% 

Expenses

  • CAM $3,000
  • Taxes $3,600
  • Insurance $600
  • Management 5% of Effective Gross Income
  • Reserves $0.25 per square foot

 

 

Rent Roll

 

 

 

Note: Management fees should not be included in

CAM unless this is stipulated in the lease. 


Retail Worksheet 

 

INVESTMENT SUMMARY  

 

 

 


 

Retail Answer Sheet 

 

INVESTMENT SUMMARY