Commercial Real Estate Interactive Course
Brought to you by CREcoin
Brought to you by CREcoin
Congratulations on reaching the final module of the Commercial Real Estate Interactive Course! The Capstone Project is designed to integrate all the knowledge and skills you've acquired throughout the previous modules into a comprehensive commercial real estate investment analysis.
The Capstone Project consists of three main components:
This project simulates a real-world commercial real estate investment analysis process. You'll be provided with property information, market data, and financial details. Your task is to analyze this information, identify the investment opportunity, assess risks, and make a recommendation.
Property Type: Class B Office Building
Location: 1250 Main Street, Midtown Business District
Size: 120,000 square feet (10 floors)
Year Built: 1998 (Renovated 2012)
Current Occupancy: 78%
Asking Price: $28,500,000 ($237.50 per square foot)
Property Image
Parkview Office Tower is a 10-story Class B office building located in the Midtown Business District. The property features a two-story lobby, four passenger elevators, on-site parking garage (150 spaces), and typical floor plates of 12,000 square feet. The building has a mix of traditional office tenants including law firms, financial services, and professional services companies.
The property underwent a moderate renovation in 2012, which included lobby updates, common area improvements, and HVAC system upgrades. The current owner has maintained the property well but has not implemented significant capital improvements in recent years.
| Property | Class | Size (sf) | Vacancy | Asking Rent ($/sf) | Year Built | Key Amenities |
|---|---|---|---|---|---|---|
| Parkview Tower (Subject) | B | 120,000 | 22% | $25.00 | 1998 | Parking, Lobby |
| Midtown Plaza | B+ | 180,000 | 10% | $28.50 | 2002 | Fitness Center, Conference Room |
| Commerce Center | B | 95,000 | 15% | $24.75 | 1995 | Parking, Cafe |
| Gateway Building | B- | 85,000 | 18% | $22.50 | 1990 | Parking |
| Metropolitan Tower | A- | 250,000 | 8% | $32.00 | 2010 | Fitness Center, Conference Center, Cafe |
| Gross Potential Rent | $3,000,000 |
| Vacancy Loss (22%) | ($660,000) |
| Effective Gross Income | $2,340,000 |
| Operating Expenses | ($1,170,000) |
| Net Operating Income | $1,170,000 |
| Cap Rate (Current) | 4.1% |
| Year | Square Feet | % of Building | Current Rent ($/sf) |
|---|---|---|---|
| Vacant | 26,400 | 22% | - |
| Year 1 | 18,000 | 15% | $23.50 |
| Year 2 | 24,000 | 20% | $24.25 |
| Year 3 | 36,000 | 30% | $25.75 |
| Year 4+ | 15,600 | 13% | $26.50 |
| Item | Estimated Cost | Priority | Timeline |
|---|---|---|---|
| Lobby Modernization | $450,000 | High | Year 1 |
| Elevator Modernization | $650,000 | Medium | Year 2 |
| Common Area Improvements | $350,000 | High | Year 1 |
| Tenant Improvement Allowances | $1,200,000 | High | Years 1-3 |
| Leasing Commissions | $600,000 | High | Years 1-3 |
| Roof Replacement | $400,000 | Medium | Year 3 |
| Energy Efficiency Upgrades | $550,000 | Medium | Year 2 |
| Total | $4,200,000 | ||
Based on the property and market information provided, your task is to develop an investment strategy for Parkview Office Tower. Consider the following approaches:
As you develop your investment strategy, consider the following factors:
Use this interactive tool to model different investment scenarios for Parkview Office Tower. Adjust the parameters to see how they impact the investment returns and overall performance.
You have successfully completed the Commercial Real Estate Interactive Course
Throughout this comprehensive course, you have gained valuable knowledge and skills in commercial real estate, including:
You have demonstrated proficiency in commercial real estate analysis and investment decision-making. This knowledge provides a solid foundation for pursuing opportunities in commercial real estate investment, development, brokerage, asset management, and related fields.
To continue your commercial real estate journey, consider these next steps:
CREcoin ($CREC) offers innovative opportunities at the intersection of commercial real estate and blockchain technology. Consider these ways to engage with the CREcoin ecosystem:
You have earned a certificate of completion for the Commercial Real Estate Interactive Course.
Thank you for completing the Commercial Real Estate Interactive Course brought to you by CREcoin.
We wish you success in your commercial real estate endeavors!
CREcoin ($CREC) is revolutionizing commercial real estate investment through blockchain technology. Our innovative approach connects digital assets with physical property investments, creating new opportunities for investors of all sizes.
As you complete this course, consider how CREcoin can be part of your commercial real estate investment strategy.