1. Write an essay answering the following questions about the Case:
• Do you agree with Zaski’s vacancy assumption
• What is the likelihood capital expenditures are accurate
• What do the “Comps? tell us about the property in terms of the value
• Is there anything in the rent roll that would be of concern to a future buyer
2. Complete Waterfall in Exhibit10 in an excel page taking into account:
– North Shore Does not renew, new rent $18 with $5
Expense Reimbursement
– 5 year hold with $150K in capital improvements
– Life Company debt is 60% LTV, 7% rate – I/O
– Investors 90% of Equity, 10% Pref, 12% IRR, 80/20 split
3. Based on waterfall write a short description of:
• Evaluate Benchmarks
• As an Investor what would you ask for?