What is the replacement cost rent in this market

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1. Total development costs (including sufficient profit for the developers) are $200/SF. Cap rates in the asset market are 8%. What is the “replacement cost rent” in this market?

$20.00/SF.

$16.00/SF.

$12.50/SF.

$10.00/SF.

2. Two major risks in development are site and construction risks. Both risks are nearly eliminated by the time which of the following events occurs?

Formal closing on the land purchase.

Certificate of occupancy.

Construction begins.

Development loan originates.

Reference no: EM131359624

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