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Commercial Property Leasable Space = 300,000 sq ft Cap Expenditures =20% of EGI Average Annual Rent = $17.

Commercial Property

Leasable Space                       = 300,000 sq ft       Cap Expenditures    =20% of EGI

Average Annual Rent            = $17.00/sq ft         LTV                          = 80%

Average Annual Rent Grwth = 2.5%/year          Loan Interest Rate   = 6%

V&C Losses                           = 8% of PGI           Amortization            = 30 yrs           

Operating Expenses             = 35% of EGI         % Bldg/Total Value = 75%

Miscellaneous Income          = $1.50/sq ft            Corporate Tax Rate = 30%

MI Annual Growth               = 2%/year               Cap Gains Tax Rate = 15%

Going-out Cap Rate             = 10.5%                   Accum Dep Tax Rate = 25%

Discount Rate                        = 10%                      Years of Ownership = 5 years

Selling Expenses                   = 6%                        Purchase Price         = $22.5M


1) What is the amount of depreciation recapture due the government upon sale of the property? Not sure

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