Software Asset Interview Questions

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Modeling Question: Canyon is being presented the opportunity to acquire a 247,000 SF industrial building in LA leased to a single tenant that occupies 85% of the 235,000 SF rentable space. Rents are projected to be $0.75 NNN per sf per month in the first year of investment. The tenant signed a 20Yr lease 3 years ago and is paying $0.60 per sf per month. Lease payments are held constant for the first five years of the lease then increase to market rate then increase at 3% per annum. No CAPEX required. Canyon will acquire the property at an 8% cap rate to today's in place NOI. Canyon will also pay a 2% broker fee and $250K in closing cost. Holding the property for 5 years and sell at the end of the 5th year at a 9% cap rate on forward year NOI. Assume Canyon must pay 3% closing costs on the sale. Leveraging for 70% of the total transaction costs at a 7% fixed interest rate over 30 years. 1) Create a sources and uses for the transaction?
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Asset Management Analyst

Interviewed at Canyon Partners

3.9
Aug 30, 2010

Modeling Question: Canyon is being presented the opportunity to acquire a 247,000 SF industrial building in LA leased to a single tenant that occupies 85% of the 235,000 SF rentable space. Rents are projected to be $0.75 NNN per sf per month in the first year of investment. The tenant signed a 20Yr lease 3 years ago and is paying $0.60 per sf per month. Lease payments are held constant for the first five years of the lease then increase to market rate then increase at 3% per annum. No CAPEX required. Canyon will acquire the property at an 8% cap rate to today's in place NOI. Canyon will also pay a 2% broker fee and $250K in closing cost. Holding the property for 5 years and sell at the end of the 5th year at a 9% cap rate on forward year NOI. Assume Canyon must pay 3% closing costs on the sale. Leveraging for 70% of the total transaction costs at a 7% fixed interest rate over 30 years. 1) Create a sources and uses for the transaction?

There really were no unexpected question or any difficult question. In fact it seemed they were not really all that prepared to give the interview and some questions were from the cuff. I may have been one of the first interviews.
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Asset Manager

Interviewed at Auction.com

3.8
Jul 20, 2013

There really were no unexpected question or any difficult question. In fact it seemed they were not really all that prepared to give the interview and some questions were from the cuff. I may have been one of the first interviews.

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