paper do today part of a project

Hi Dr. ,

We wanted to know if our group can use an actual listing of mine for Project 2. It is a $23 mil mix use retail and office center in Broward county. Walgreens and Bank of America are two national tenants that are currently in the center.  The $2.5 mil downpayment will represent almost 11%. Please advise. 

hes answer was

Yes, you are welcome to use this property. You will probably need more than 2.5M as a down payment, but I am ok with that. You can use any down payment amount that is suitable for this project.

Good luck and please let me know if you have any questions for me.

Hi Team,

Dr. said we can use my real life listing. Please let me know if everyone is in agreement. We should figure out what our downpayment should be. We will need more than 10% probably. I will create number 1 and 2 . 

first part of project so you could look how is coming along Part 1: 

Introduction:

The following report is an analytical summary of a retail mixed use building our group is considering for purchase for $23 million. We are evaluating the income producing property and deciding wether or not to purchase the property. We are analyzing the expected levered before tax return. The report will provide a full property description, make reasonable assumptions about the NOI growth rate. We will also calculate terminal growth rate, current mortgage interest rate along with the downpayment requirement and required rate of returns. Terminal cap rate will also be analyzed. We will show the maximum price that we are willing and able to pay for this property. In addition, a sensitivity analysis will be performed as well. This report will give a full overall picture of the commercial property on wether it is a good investment or not. 

Part 2:

Property Description:

This outstanding 3 story retail/office shopping

center has retail spaces on the first floor, offices

on the second and third floor. The property is located at 

2901 Slirling Road Hollywood, FL 33312. The office building

is attached to the adjacent strip center with a

separate folio number. The property sits directly

on Stirling Rd. featuring high traffic volume and great exposure!

The national anchor tenants are: Bank of America,

Walgreens Pharmacy and Crossfit. Ample Parking

is provided in the front and rear of plaza. The

long term leases with the anchor tennants are Triple Net

and the CAM expenses are passed through to the  tenants.

Property has significant "upside" due to under market rents and market recovery. 

Rentable square footage is 92,695. Currently the property is 97% occupied. 

Property was built in 1987. Significant property improvements were added recently. 

Currently the property is completely up to date. 

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