Real Estate Financial Modeling Case Study HELP - Getting to Purchase Price??
Hi, so I've recently applied to a RE investment firm and they gave me this case study. I've been trying to read through some case studies online, but I can't find anything that is similar to the one they gave me.
Basically, there is a target Office Building to be acquired with 1 year of renovations before being leased out to a tenant, and then an exit by Year 4. The property will be funded by equity, mezzanine, and senior debt. Now, usually, case studies provide the purchase price for the target property as well as an exit cap rate at the end to determine the returns of the investment.
However, in this case, they did not give me a purchase price nor any cap rates. They only mentioned that thefor the Investor should be 22%. How should I compute the purchase price for this? I'm stumped on how I would have to do this.