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In this case, I will analyze the goals and objectives of Bailey as well as the other participants. The sealed bid auction indicates that they are willing to take a chance on the market and try to receive high bids. There is no problem with the government participant besides using permits to do renovations. There is no financing constraints, so the lending is not an issue. In my analysis I did a five year discounting cash flow, NPV and IRR of upgrading the office building as well as condo converting.
That way there will be a good analysis of facts that we can base a decision on. The office conversion I feel is a less risky bet for David...
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