An investment in a property is made for $1,000. The property is held for 3 years with an annual non-escalating cash flow of $65 in Year 1 through Year 3. On day 1 of Year 4 (prior to the collection of any operating cash flows), the asset is sold and generates net sales proceeds of $2,000. The partnership structure includes a non-compounding, cumulative Annual Preferred Return of 8%. What is the Cumulative Unpaid Preferred Return to both Sponsor and Investor as of the end of Year 2?

Real Estate Financial Modeling / Questions / An investment in a property is made for $1,000. The property is held for 3 years with an annual non-escalating cash flow of $65 in Year 1 through Year 3. On day 1 of Year 4 (prior to the collection of any operating cash flows), the asset is sold and generates net sales proceeds of $2,000. The partnership structure includes a non-compounding, cumulative Annual Preferred Return of 8%. What is the Cumulative Unpaid Preferred Return to both Sponsor and Investor as of the end of Year 2?

Jul 03