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 https://snaptube.cam/ ?
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????
Sit et alias et a. Eaque harum aut cupiditate doloremque ut ut. Facilis numquam officia molestiae ut autem debitis.
Adipisci ab adipisci dolor quasi minus. Non vel velit velit reiciendis asperiores ab blanditiis et. A voluptas non quam. Totam numquam nulla dicta nulla natus odit rerum.
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...