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Owning vs. Leasing

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HF11 makes property ownership a reality. For many businesses, ownership provides numerous benefits over conventional leasing.

Owning

Total Area
(Unit #110)

4,163 SF

Price PSF

$250

Total Price

$1,040,750

Improvements
(est. 18% buildout / $120 PSF)

$89,921

Total Investment Cost

$1,130,671

Down Payment (25%)

$282,668

Mortgage Amount

$848,003

Interest Rate

4.00%

Amortization Period

25 Years

Leasing

Total Unit Size

4,163 SF

Net Lease Rate PSF
(incl. 18% improvement buildout)

$16.00

Monthly Net Rent

$5,551

Annual Net Rent

$66,608

Inital Lease Term

5 years

Mortgage Payments (5 years)

Monthly

$4,461

Annually

$53,528

TOTAL MORTGAGE PAID

$267,640

TOTAL PRINCIPAL + INTEREST PSF

$12.86

TOTAL INTEREST PAYMENTS PSF

$7.58

Lease Payments (5 years)

Monthly

$5,551

Annually

$66,608

TOTAL RENT PAYMENTS

$333,040

TOTAL PAID PSF

$16.00

Remaining Mortgage Balance (after 5 years)

$738,220

Principal Reduction

$109,783

Total Savings vs. Leasing

$65,400

Net Benefit to Owning (Total)

$175,183

Net Benefit to Owning (Annualized)

$35,037

Return on Investment as Owner

12.39%

Mortgage calculation is based on 25% down payment, 4.00% interest rate and 25 year amortization. Calculation also does not include appreciation in value of unit.