Income-Generating Commercial Real Estate Investments

Excel sheets encouraged, and 2-3page maximum additional writing.

Q1. Follow the example of “Alison Green”, finish Exhibit 1 to 4 for the other three properties.

Q2. Finish Exhibits 5 to 7 for “Ivy Terrace” only. Exhibit 5 can be programmed using a spreadsheet. You can follow the format used in Exhibit 5 for “Alison Green” or use the more standard format of DCF model discussed in class. In the end, we only need to compare the two properties to each other to draw some conclusions.

Q3. In general, what would you consider as the major risk for each of the four properties? (Only outlines are needed, 1-2 pages.)

Is recommended that each student build a spreadsheet model for the discounted cash flow model