Canary Wharf

* Evaluation time: 33 Years considering 3 years of construction, and 30 years of lifetime.

Using the tables (shown below and in Exhibit 1) to calculate cash flow before financing and net proceeds from sale, a DCF method was used to arrive at a NPV of $216,789 and IRR of 13.3% for a 5-year holding period at assumed vacancy of 5% (Exhibit 1). As mentioned earlier, this IRR exceeds the 12.5% initially set out, and therefore seems like a feasible project. Using a higher vacancy rate of 7%, however, lowers the IRR to a point that is no longer feasible. If holding all else same, a vacancy of 7% on the building yields a NPV of $122,420 and an IRR of 11.47% (please see table below and Exhibit 2). This IRR does not meet the minimum required and therefore the assumption of vacancy rates staying at 5% is paramount to our analysis. This aspect of the analysis is considerably risky as an assumed vacancy rate does not necessarily yield a guaranteed rate. If vacancy happens to rise, then the valuation of the property is far different than what was originally envisioned.

Cruickshank, Garth& Romano is a startup company, formed by Richard, Chris and Wayne to provide industrial, residential and commercial evaluations, and also consulting services and feasibility analyses in National Capital Region (NCR). Based on the experienced principals who enjoy good reputations, Cruickshank, Garth& Romano is aimed at providing high quality service as NCR’s top four firms which dominate the commercial appraisal market in NCR, but they tend to do business with the owners of smaller properties. Recently, because of the economic regression, to get sufficient revenue, the principals have realized that getting new larger developers is crucial to

Table 7 in the detailed analysis above shows the summary of the Discounted Cash Flow analysis performed for each of the four potential properties considered for investment. From the chart below, we observe that of the four properties, TFB has the maximum increase in reversion value at the end of the holding period, i.e. 10years. On a primarily income generation potential basis, Alison Green, with a Net Present value of the future rents at $734.29 looks attractive among the four options. Looking at the Investment ranks of the four properties with Simple returns and Discounted returns variables, Alison

Mr. Alexander is a gentleman that is looking to build his investment portfolio through residential real estate. He is looking at investing in a 4-plex in a historical district located within Boston, Massachusetts. The building is located on Revere Street and has a listing price of $350,000. Mr. Alexander is evaluating the possible commitment to understand what he stands to gain from the annual cash flows while at the same time understanding the risks involved. The subject property is located within a historical district and is not yet capable of housing tenants. Property will require significant improvements prior to inhabitation. Client

After analysis of Mr. Alexander’s proposal, it is obvious why he should take advantage of a real estate investment opportunity. The experience he would gain coupled with the added income would establish a solid foundation for making more investments in the future. To this end, however, I find Alexander’s plan for the Revere Street property falls short. A major deficiency is that his projections are almost entirely predicated on estimates and assumptions that are neither conservative nor reliable. In a similar vein, Alexander’s “DIY” approach is not only exemplar of naiveté, but also suggestive of many implications that were overlooked in his proposal. And, even more discouraging, a best-case scenario analysis reveals that even without

The real estate division was estimated to have a fair value of $13,890,000. This was determined by totaling the number of lots expected to sell within the next four years and multiplying it by the price per lot of $180,000. After determining total lot sales, a 20% discount rate was applied as suggested by current market conditions. Given the unique nature of the real estate development, it is not believed that there are any comparable developments to find a market multiple.

some initial work estimating the likely relationship between what tenants would be willing to pay

Pennyfields was part of Limehouse Chinatown. The area was known as the “Shanghai Quarter”, as many of the early Chinese migrants that settled here were from Shanghai. Similar to Limehouse Causeway, Pennyfields had Chinese stores and lodging houses, Pennyfields also housed a Christian mission for the Chinese Community, as well as a Confucian temple. Since there were no local Chinese newspapers at the time, Pennyfields had a news wall displaying news stories from China. However, due to the 'slum clearance', it is difficult to know where the news wall stood.

This case involves an investigation of the factors that affect the sale price of Oceanside condominium units. It represents an extension of an analysis of the same data by Herman Kelting (1979). Although condo sale prices have increased dramatically over the past 20 years, the relationship between these factors and sale price remain about the same. Consequently, the data provide valuable insight into today’s condominium sales market.

Option 2 (Proceed with Mid-Rise Apartment Complex, Selling in Year 10): While replacing the current structure with a more appealing mid-rise apartment complex would increase the market value of the property, it would also require financing and additional investments. Thus far, Sexton has run into several problems, beginning with the planning commission, and now higher cost estimates, financing and timing issues. Even if Sexton were to obtain financing and somehow meet the January 2005 target date, his original estimates of rental income and cash flow analysis are still not guaranteed. Exhibit 2 provides a net present value range between 103,000 and $214,000 for proceeding with the mid-rise apartment complex and selling in year 10 based on a range of cap rates.

This case investigates the factors that are affecting the sale price of Oceanside condominium units. The relationship between these factors and sale price has remained the same despite condo sale prices increasing drastically over the past 20 years.

In order to improve employee engagement scores and overall job satisfaction, Holiday Inn Fisherman’s Wharf should focus on improving the management team. Having a passionate, competent, and hands-on leadership is critical to employee engagement. They play a pivotal role in productivity and retention. Managers should show genuine interest in the employees and invest time in understanding their needs and aspirations. Checking in with them regularly to find out how they are doing can help establish relationship. In addition, being a good and empathetic listener will improve the level of trust. The employees will work harder when they are shown that they are valued and trusted. Empowering employees to make decisions and providing them with all

At the time of preparation of this syllabus, the final exam date is unknown. You will

1. Introduction 2. Analysis of current position 3. Analysis of new project 3.1 Methodologies and processes of Valuation 3.2 processes of Valuation 4. Conclusion