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Characteristic:
| 1. |
Return on investment fluctuates according to the condition of US economy, due
to rental occupancy highly determined by expansion or contraction of corporate
America. |
| 2. |
Due to long term leases (10 to 20 years), a low variation on income projection is
expected. |
| 3. |
Return on investment (not including future appreciation value of the real estate),
we usually expect 7% to 16% annually.
|
| 4. |
Every year, we increase base rent according to Consumer Price Index (or 3% to 5%) |
Example A
Investment Objective: Social Security Office Building
Location: Cuberland, Maryland
Total Usage Space: 54,000 Square Feet
Land Area: 0.34 Acr.
Purchase Price: 5,700,000
Year: 1998
Lease Term: 10 years
Total Income: 757,005
Total expenses: 187,641
Income before tax: 569,364
Return on Investment: 9.98%
Example B
Investment Objective: Cherry Hill Office Building
Location: Cherry Hill, N.J.
Total Usage Space: 430,000 Square Feet
Purchase Price: 50,000,000
Year: 1995
Lease term: 10 years
Total Income: 8,170,000
Total expenses: 570,000
Income before tax: 7,600,000
Return on Investment: 15.2%

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