Posted by Dan on January 18, 2006 at 23:34:13:
Apologies for the hideous attempt at a readable format.
Potential Office/Warehouse Development… - Posted by Dan
Posted by Dan on January 18, 2006 at 19:14:47:
Hello all, I’m looking for some opinions on an office/warehouse development I’ve been trying to put together.
It’s located on a great intersection of a large, prosperous industrial park in a metropolitan area.
It will be 2 buildings totalling 50,910 sq. ft. 20% office and 80% warehouse
Costing assumptions…
Land value; $6/sqft, net 5 acres(developed)…1,306,800
City development/platting costs… included
Finance costs assuming 3% to 3.5%… 137,319
Shell building at approx. $58.47/sqft…2,976,707
TenantImprvmnt (11 spaces 6710 sqft)$40/sqft… 268,400
Project cost…4,689,226
20% Down payment…937,845
Mortgage balance…3,751,380
Debt Assume 7.75% interest, 20 yr amort
Monthly… 30,796
Annual… 369,562
-Lease scenario-
Rent… 420,577
Less
Debt… 312,248
Less
5% avg lease commission… 21,029
Equals
BFT Cashflow… 87,300
=9.3% ROI
Any and all opinions are welcome. I think this is a good hold opportunity. Also, what do you think about a lease/purchase deal for the tenants. How would you suggest I structure such a scenario?
Thanks for your input in advance, Dan.