Curious as to how you guys would underwrite an incremental return for a redevelopment of a existing shopping center to mixed-use asset. The way we look at the returns is via the incremental NOI on an as-is basis vs redevelopment. With the assumption being if the incremental ROI (= incremental NOI/Cost) does not exceed our cost of capital, then it makes more sense releasing the current center vs redeveloping. Seems like on a incremental return, our projects barely pencil above a 5% unlevered ROI for mixed-use.. Would you carry the land value as a cost to the project instead of looking at the incremental NOI? Happy to hear your thoughts. Let me know if I'm an idiot.
Related ContentSee more
Popular Content See all
This Fucking Sucks
+49OFFby Prospective Monkey in Investment Banking - Mergers and Acquisitions">Prospect in IB-M&A
Why would any associate+ banker choose a BB over EB?
+31IBby Intern in Investment Banking - Mergers and Acquisitions">Intern in IB-M&A
PE isn’t the best way to get into b-school
+26BSCHby 2nd Year Associate in Private Equity - LBOs">Associate 2 in PE - LBOs
Share a day that looked like a Suits/Billions episode
+24IBby Intern in Investment Banking - Generalist">Intern in IB - Gen
What's Wrong with Warburg Industrial & Business Services?
+17PEby 1st Year Analyst in Investment Banking - Mergers and Acquisitions">Analyst 1 in IB-M&A
Total Avg Compensation
February 2021 Investment Banking
Director/MD (9) $911
Vice President (31) $349
Associates (158) $231
2nd Year Analyst (97) $151
Intern/Summer Associate (92) $144
3rd+ Year Analyst (23) $145
1st Year Analyst (366) $131
Intern/Summer Analyst (304) $82