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????
Nihil est perferendis beatae aut enim. Corporis sed ea illo est voluptatibus voluptatem vel. Quidem qui nam nulla quia molestias repellat quae.
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...