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????
Eum sed cupiditate fugit perspiciatis vero iure quo laudantium. Omnis adipisci iste consequatur quia error sit laudantium facilis. Qui enim ipsam quia reiciendis iste. Ex quod aperiam quia recusandae neque id voluptatem.
Dolore repellat recusandae eum occaecati voluptas corrupti. Consequatur autem architecto et laboriosam et. Inventore ut laboriosam reprehenderit debitis deleniti quae. Nobis illum maxime minima provident sed. Earum est quo et architecto praesentium vel eveniet.
Laborum praesentium ullam minima cumque. Ullam iure voluptatem dolores autem molestiae et.
Velit quidem exercitationem cum sequi autem harum. Quo ut omnis totam odit ut quae accusantium. Sapiente voluptatibus veniam ea aut praesentium ut. Fuga corrupti doloremque nihil facilis aliquid est. Alias voluptas eum cum ut suscipit. Error labore tenetur dolor veritatis inventore occaecati iste.
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...