2. You've just taken your first job for GTA Property Management and Developments, a large real estate firm in Etobicoke specializing in the purchase and management of rental housing complexes. GTA is plannng to buy Ford Haven, a recently built, 200-unit, affordable housing development in the Rosedale area of central Toronto. Data required to describe the economic performance and profitability of Ford Haven appears in Appendix II below. On the basis of this data, your supervisor orders you to: a. state the estimated NOI (net operating income) for the coming year for the Ford Haven housing complex2 b. state the estimated net cash flows for the coming year for this same housing complex by augment- ing your pro forma statement with the anticipated outlays for recurring and non-recurring items described in the situation below.3 a The Ford Haven complex consists of forty studio, eighty one-bedroom apartments and eighty two- bedroom apartments. All rental leases for units have a fixed twelve-month term. Beginning today, which is the first of the month, leases specify monthly rents for these three types of units of $550.00, $600.00, and $800.00. Each new lease specifies that these current monthly rents will be charged over the next six months, and then an escalator clause in each lease specifies rents for each type of apartment will rise to, respectively, $560.00, $610.00, and $810.00, where they will remain until the end of the current twelve-month lease. All new tenants will, one year from today, either renew their leases or vacate their units. The leases of existing tenants will remain valid on unchanged terms until they end, when those tenants will also need to vacate or renew their leases on the same terms as new tenants. All of the existing tenants, however, are expected to renew their leases on these new terms for an additional twelve months. Existing management currently has the following apartment types leased prior to today on these terms: ten studios were leased three months ago, at a monthly rent of $500.00; twenty one-bedroom units were leased two months ago for a monthly rent of $580.00; and ten two-bedroom units were leased one month ago for $805.00 All other occupied units have today been leased or renewed, on the terms for new leases described above. Four studios, six one-bedroom units and six two-bedroom units are currently vacant and expected to remain so for the next twelve months. Besides the above data, GTA has also provided you with its internal forecasts for other revenues and operating costs accruing to the complex. These are as follows: during the coming year, Ford Haven will generate revenue from laundry facilities, the awarding of an exclusive cable TV contract, parking, plus fees from net deposits on apartment and overdue rent payments. The GTA estimate for the total of all other such income over the coming year is $200,000.00 GTA plans to charge for heating and air-conditioning it will provide, on a compulsory basis, to its tenants, and forecasts that net revenue over the coming year from this source will be $100.00 per month for each occupied unit. Total turnover and operating expenses are forecast to be $400.00 per month for each occupied unit during the next year. During the next year, GTA forecasts that $100,000.00 will be required for recurring, make ready expenses, such as carpet, paint, and drywall repair, while another $250,000.00 will be required for non-recurring items such as countertops, parking lot repairs, and so on. Finally, a total of $10,000.00 in service fees will be paid to companies hired by GTA to provide marketing services for the complex. 2. You've just taken your first job for GTA Property Management and Developments, a large real estate firm in Etobicoke specializing in the purchase and management of rental housing complexes. GTA is plannng to buy Ford Haven, a recently built, 200-unit, affordable housing development in the Rosedale area of central Toronto. Data required to describe the economic performance and profitability of Ford Haven appears in Appendix II below. On the basis of this data, your supervisor orders you to: a. state the estimated NOI (net operating income) for the coming year for the Ford Haven housing complex2 b. state the estimated net cash flows for the coming year for this same housing complex by augment- ing your pro forma statement with the anticipated outlays for recurring and non-recurring items described in the situation below.3 a The Ford Haven complex consists of forty studio, eighty one-bedroom apartments and eighty two- bedroom apartments. All rental leases for units have a fixed twelve-month term. Beginning today, which is the first of the month, leases specify monthly rents for these three types of units of $550.00, $600.00, and $800.00. Each new lease specifies that these current monthly rents will be charged over the next six months, and then an escalator clause in each lease specifies rents for each type of apartment will rise to, respectively, $560.00, $610.00, and $810.00, where they will remain until the end of the current twelve-month lease. All new tenants will, one year from today, either renew their leases or vacate their units. The leases of existing tenants will remain valid on unchanged terms until they end, when those tenants will also need to vacate or renew their leases on the same terms as new tenants. All of the existing tenants, however, are expected to renew their leases on these new terms for an additional twelve months. Existing management currently has the following apartment types leased prior to today on these terms: ten studios were leased three months ago, at a monthly rent of $500.00; twenty one-bedroom units were leased two months ago for a monthly rent of $580.00; and ten two-bedroom units were leased one month ago for $805.00 All other occupied units have today been leased or renewed, on the terms for new leases described above. Four studios, six one-bedroom units and six two-bedroom units are currently vacant and expected to remain so for the next twelve months. Besides the above data, GTA has also provided you with its internal forecasts for other revenues and operating costs accruing to the complex. These are as follows: during the coming year, Ford Haven will generate revenue from laundry facilities, the awarding of an exclusive cable TV contract, parking, plus fees from net deposits on apartment and overdue rent payments. The GTA estimate for the total of all other such income over the coming year is $200,000.00 GTA plans to charge for heating and air-conditioning it will provide, on a compulsory basis, to its tenants, and forecasts that net revenue over the coming year from this source will be $100.00 per month for each occupied unit. Total turnover and operating expenses are forecast to be $400.00 per month for each occupied unit during the next year. During the next year, GTA forecasts that $100,000.00 will be required for recurring, make ready expenses, such as carpet, paint, and drywall repair, while another $250,000.00 will be required for non-recurring items such as countertops, parking lot repairs, and so on. Finally, a total of $10,000.00 in service fees will be paid to companies hired by GTA to provide marketing services for the complex