Smart allocation When does paying 500 a buildable foot make sense when the market is less.
Let Madison take you through the process. The new buy at 323 W 6th.
12,000 ft for $18 million. At 3 times coverage that is $500 a foot.
The building rounds out a land assembly that has taken years. Madison now owns the block and can build a campus. With an entire block, 48,000 plus feet, the mass of a redevelopment will likely be 300,000 ft.
Plug a market price of $300 in per buildable. The entire block is now worth 90 million.
A buck and a half pre tax.
Madison continues to increase value for the shareholders.