Project cost $18,600,000

$18,600,000 divided by 58,000 SF = $320.00 per square foot

A prudent investor would look for a project to pay back its cost over 5 years. Therefore the following calculation would apply:

5 years = 60 months

$18,600,000 divided by 60 months = $310,000 per month

$310,000 per month is what the project should generate in order to be a good investment.

This revenue should be generated through rent paid by the tenants of the project. To establish the rent to be paid, the following calculation would be applied:

$310,000 X 12 months = $3,720,000 per year

$3,720,000 divided by 58,000 square foot = 64.137931 R.O. $65.00 per square foot.