Stargaze Properties is evaluating the purchase of two apartment complexes built in 1994. Failure to maintain the properties in recent years has prevented increases in rents for the last four years, with occupancy rates falling below 80 percent. Stargaze plans to purchase both complexes at a combined cost of $30 million. The complexes will ultimately be soldto investors as limited partnership units. Prior to resale, both complexes will be renovated, which should increase occupancy rates to 95 percent so that rents can be increased to market levels. The proposed renovation will take one year (during which time both complexes must be vacant) and require an immediate investment of $10 million. The complex having the more desirable location can be sold at the end of one year for $28 million. The second complex will be sold for $18 million at the end of three years, with expected rentals during year 2 and year 3 of $3 million. Assuming there are no taxes on limited partnership investments in real estateand that cash flows received at date 1 and date 2 can be reinvested at 2.5 percent, determine the reinvested rate of return for the limited partnership and explain why the reinvested return is greater or less than the internal rate of return for the project.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more
Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;