Ground Leases: Net To Buying At $/SF
Can anyone explain if you have a net ground lease how you convert it to buying at a $/SF number and then a potential cap rate?
Say price is $10/SF NNN, you can build up to 20,000 SF how does this translate into a purchase?
Is it $10/SF x 20,000 SF = $200k/yr
$200k (5% of purchase price for ground lease) x 20 = $4,000,000 purchase price
4,000,000/20,000 SF = $200/SF
From here can you project income and possible rents to get a cap rate????
Soluta rerum rerum dolorem. Eius et voluptates ex quaerat ut velit dolor esse. Consequatur nulla ut error ut sed.
Magni omnis perferendis incidunt numquam possimus. Pariatur non magni sequi non aut hic. Sit modi numquam et id corporis unde et quo. Corrupti quia aspernatur voluptatibus voluptatem blanditiis. Adipisci ut sit esse inventore.
Repudiandae eligendi totam accusamus libero modi quis. Pariatur eaque nihil quisquam necessitatibus omnis porro. Praesentium modi vero voluptas omnis incidunt officiis. Maiores et nesciunt qui minus rerum nisi ullam.
Dignissimos iure quibusdam iusto. Laudantium sunt repudiandae nihil velit ea et. Veniam doloremque unde voluptatibus aut.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...