G the analysis will show that by meeting the needs of

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Unformatted text preview: ion, and the overall “story” for the site. Think of this as a chance to “pitch” your project, e.g. “The analysis will show that by meeting the needs of …, and leveraging it appropriately, the project produces superior returns.” Separately attach the four-page set of printouts from the spreadsheet template that incorporates your product mix from 3.a. and your chosen mortgage financing option. GENERAL COMMENTS: Homework 2 is meant to be a bit of fun. This could be an exercise that proves useful in the future, so take care to observe carefully; consider orientation (e.g. the east side of College Avenue, which runs north/south, is much more animated than the west side; in general, the North Side of Dryden Road is more animated than the south side ), “natural” auto/pedestrian traffic patterns, barriers to movement, the mix of uses on the various blocks, apparent long-term land use trends. Homework 2 is also meant to provide an intimate view of the mainstream treatment of real estate investments as financial assets. The analysis contains the classic four elements: 1. Set of Assumptions, including the estimate of initial costs and capital structure 2. Annual Revenue, Expense, and Cash Flow Projections to debt and equity capital 3. End of Holding Period estimates of sale price, remaining mortgage balances, and the equity reversion 4. Investment Analysis; NPV, IRR, Cash-on-Cash Returns, Coverages – “The Decision Metrics” ATTACHED MATERIALS Table A and discussion Spreadsheet Template – Base Case 2 HA...
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