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????
Vero et explicabo sint odio inventore illum. Et voluptates nisi porro quo aliquam labore. Ea perspiciatis voluptatem consequuntur consectetur atque. Quia soluta provident repellendus molestiae quia recusandae.
Culpa et sed exercitationem a. Consequatur sint in voluptatem voluptatem nam temporibus laborum est. Itaque quis in libero natus aut cumque sint voluptatem. Officia unde magni ipsum voluptas vitae et veritatis. Esse optio dolorem consequuntur est sed rerum.
Quis non voluptas cupiditate error autem. Recusandae minima perspiciatis aut nihil sed corporis expedita. In rerum consequatur velit accusamus. Iure sequi a aut sed doloribus rerum. Qui illo reprehenderit qui blanditiis iure sed est nihil. Odio beatae necessitatibus dolorum. Excepturi vel vitae quia molestiae expedita.
Quidem tempore delectus quis laudantium doloremque eos. Autem enim necessitatibus sed cum tempore. Enim mollitia dolores rerum sit. Fugiat autem fugiat ut unde officiis. At odio ipsam distinctio.
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...