Subject Property: Multi-tenant Office – Inland Empire, CA
Case Study
Here’s an example of a recent office building acquisition. The analysis shows the results of a “building only” purchase compared to the results of a “building with solar” purchase.
The difference resulted in more than double the IRR (yes…double!!) and adding nearly $4Million to the property’s value in Year 1!
Building Only
IRR (10 yr. hold) = 7.19%
COC Yr. 1 = 15.69%
Occupancy Rate = 96.5%
Property Value = $10,250,000
Building – with Solar
IRR (10 yr. hold) = 15.51%
COC yr. 1 = 17.3%
Occupancy Rate = 138%
Property Value = $14,120,256
