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Posted on Oct 01, 2024

3. Calculate the Pre-Tax Cash Flow, Net Present Value (NPV) and Internal Rate of Return (IRR) Building Sze 30,000 SF equals Appralsed Vaue Loan-To-Cost(LTC) $175

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3. Calculate the Pre-Tax Cash Flow, Net Present Value (NPV) and Internal Rate of Return (IRR) Building Sze 30,000 SF equals Appralsed Vaue Loan-To-Cost(LTC) $175 osf $5,250,000 Total Appalsed Value Land Cost $1,000,000 Construction Costs $34 psf ConstructionFinancing Rent $1,027,500 Year1 Potertial Gross Rent 100% 58% Vacancy Factor Holiding Peod Rent & Expenses Escalation LTVLand Construction Take Out Financing 10 0.8 years 386 per year beginning year 2 0.44% per month Interest Rate 525% peryear FulAmortzation over months 20 240 years Operating Expenses Devebper pays cash for portionof loan not covered by LTV Year1 $35,963 3.5 % of Potental Gross Rent Property Management 54 psf/year psf/year psf/year $127,500 Property Taxes 51 $30,000 Property insurance $2.45 $73.500 Property Maintenance Pro pety SaleEnd of Year Gross Rent Multpler (GRM 10 Dscount Rate 5.25% 3 6 7 9 10 Years Equity Contrbutlon 51,000,000 S090,075 554,504 1,191154 Potentlal Goss Rent $1058,325 $1,155,450 51,253,595 $1301506 $1340554 $1027500 $1122777 $1,5,889 -$51375 -$52915 -$57,823 -$59558 $51344 -$53,185 -$57033 Less Vacancy -$55139 -$55,080 Effective Gross Rent $976125 $1005,409 $1,035,571 $1055638 $1098,537 $1131595 $1155544 $1,235,525 $1,273522 $1,200,511 Less Operating Experses -44 229.34 -40,476.11 -41590 39 Propety Management Propety Taxes 35952 50 37,04138 -38,152.62 -39,297.19 4294111 -45555.22 45922.91 -$139323 -$143,502 -$147307 -$152,242 $166359 -$127500 $131325 $135,255 $155,809 -$151513 $30000 -531,827 -$32782 -$33,755 -$34778 -$35,822 -$35,895 $39143 PropetyInuance -$30,900 -$38,003 -577,97 -$82,725 -587,753 -$90,395 -$95901 Propety Maintenance -$73500 -$75,705 -$80315 -$85207 -$93,8 NetOpeating Income $730,437 $752,350 $774921 $798,169 S46,777 S872,180 S898,345 $925295 $709163 S822114 -$275,625 $404 305 S404 305 Less Debt Service $404305 -$404,305 -$404305 -$404,305 -$404305 -$404305 $404305 $404306 $494,B9 Pre-tax Rental Cash Flow $275,625 $304,856 $326.131 $348,044 $370,615 $393852 $417,807 $442,471 $467,874 $520,990 Sale of Property Gross Sale Proceeds $12,055890 LessLoan Payoff -$3,315950 NetSale Poceeds $8,749930 -$1,275,525 $1,304856 $1,370,615 $1,393,862 $1,442,471 $1,457874 $1,494039 $10,270 919 Pre-Tax Cash Flow $1325,131 $1,348,044 $1,417807 Net Present Value (NPV) | Internal Rate of Return (IRR) = $14,639,593 104% Pre-Tan Pre-Tax 3. Calculate the Pre-Tax Cash Flow, Net Present Value (NPV) and Internal Rate of Return (IRR) Building Sze 30,000 SF equals Appralsed Vaue Loan-To-Cost(LTC) $175 osf $5,250,000 Total Appalsed Value Land Cost $1,000,000 Construction Costs $34 psf ConstructionFinancing Rent $1,027,500 Year1 Potertial Gross Rent 100% 58% Vacancy Factor Holiding Peod Rent & Expenses Escalation LTVLand Construction Take Out Financing 10 0.8 years 386 per year beginning year 2 0.44% per month Interest Rate 525% peryear FulAmortzation over months 20 240 years Operating Expenses Devebper pays cash for portionof loan not covered by LTV Year1 $35,963 3.5 % of Potental Gross Rent Property Management 54 psf/year psf/year psf/year $127,500 Property Taxes 51 $30,000 Property insurance $2.45 $73.500 Property Maintenance Pro pety SaleEnd of Year Gross Rent Multpler (GRM 10 Dscount Rate 5.25% 3 6 7 9 10 Years Equity Contrbutlon 51,000,000 S090,075 554,504 1,191154 Potentlal Goss Rent $1058,325 $1,155,450 51,253,595 $1301506 $1340554 $1027500 $1122777 $1,5,889 -$51375 -$52915 -$57,823 -$59558 $51344 -$53,185 -$57033 Less Vacancy -$55139 -$55,080 Effective Gross Rent $976125 $1005,409 $1,035,571 $1055638 $1098,537 $1131595 $1155544 $1,235,525 $1,273522 $1,200,511 Less Operating Experses -44 229.34 -40,476.11 -41590 39 Propety Management Propety Taxes 35952 50 37,04138 -38,152.62 -39,297.19 4294111 -45555.22 45922.91 -$139323 -$143,502 -$147307 -$152,242 $166359 -$127500 $131325 $135,255 $155,809 -$151513 $30000 -531,827 -$32782 -$33,755 -$34778 -$35,822 -$35,895 $39143 PropetyInuance -$30,900 -$38,003 -577,97 -$82,725 -587,753 -$90,395 -$95901 Propety Maintenance -$73500 -$75,705 -$80315 -$85207 -$93,8 NetOpeating Income $730,437 $752,350 $774921 $798,169 S46,777 S872,180 S898,345 $925295 $709163 S822114 -$275,625 $404 305 S404 305 Less Debt Service $404305 -$404,305 -$404305 -$404,305 -$404305 -$404305 $404305 $404306 $494,B9 Pre-tax Rental Cash Flow $275,625 $304,856 $326.131 $348,044 $370,615 $393852 $417,807 $442,471 $467,874 $520,990 Sale of Property Gross Sale Proceeds $12,055890 LessLoan Payoff -$3,315950 NetSale Poceeds $8,749930 -$1,275,525 $1,304856 $1,370,615 $1,393,862 $1,442,471 $1,457874 $1,494039 $10,270 919 Pre-Tax Cash Flow $1325,131 $1,348,044 $1,417807 Net Present Value (NPV) | Internal Rate of Return (IRR) = $14,639,593 104% Pre-Tan Pre-Tax