Building Square Footage of BSF Definition Assignment

Assignment Task

1) Calculate the total building sq. ft. (BSF) for a property, if the lot size is 10,000 sq. ft. and FAR is 4.8.

2) Assume that in the above-listed property, you want to build a 6-story building, each story requires 15% of the floor area for circulation (corridors, staircase), and only 80% lot coverage is allowed. Calculate how many residential units you can fit in the property, if each residential unit is 680 sq. ft. (Assume equal number of units in each floor).

3) Why is it important to take care of any damages in buildings immediately? Explain with an example.

4) Explain any two steps in the development process with examples.

5) What is the construction interest rate today at 30 days LIBOR plus 200 bps.

6) If you pay $1million for a property with an NOI of $100,000, then what is the Cap Rate?

7) Compare the above listed property with the second property that will cost you $1.6 million and has a NOI of $150,000. As an investor which property will you choose to make the investment? Explain.

8) Calculate annual payment amounts on a ten-year loan of $100,000 at an annual interest rate of 4.5%.

9) In the above question, assume that your investor requires DSR of 1.6 at year one and your building has annual NOI of $25,000. To get DSR of 1.6, by how much you will need to increase the loan amount and the annual payment amount? (Hint: use goal seek function.)

10) How is the Low Income Housing Tax Credits allocated per state? Name two other tax credit programs.

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