C. The 10,000 square foot building has an NNN lease, rent is $16 per SF per year, vacancy is 10% of all PGI, and expenses are 30% of PGI Rent. Calculate the:

i. PGI (Potential Gross Income)

ii. EGI (Effective Gross Income)

iii. NOI (Net Operating Income)

D. On a 25,000 SF building with a fun service gross lease with rent of $24 per square foot per year, vacancy is 10%, Expenses are 35% of PGI. Calculate the:

i. PGI (Potential Gross Income)

ii. EGI (Effective Gross Income)

iii. NOI (Net Operating Income)

General Assumptions Income Inflation Expense Inflation Cap Rate Discount Rate Property Tax Increase 3.00% 3.00% 5.50% 8.50% 2% Number of Units SF Rent/SF Income Assumptions Unit Type REG 1 BED 1 BED + DEN REG 2 BED 685 120 30 150 Rent per Month $1,995.00 $2,175.00 $2,790.00 $2.91 $2.47 $2.63 Annual Rent $2,872,800.00 $783,000.00 $5,022,000.00 880 1,060 Total 300 $8,677,800.00 Rentals Per Month 8 Other Income Assumptions Type Clubhouse Private Garages Structured Parking Misc income Discounts and Premiums Price Per Month $150.00 $0.00 $25.00 450 Annual Income $14.400,00 $0.00 $135,000.00 $0.00 $126,000.00 $35.00 Total $275,400.00 Potential Gross income Vacancy and Collection Loss Effective Gross Income Operating Expenses Type % of Purchase Price Per Unit Per Month % of EGI $18.00 $45 00 $20.00 $15.00 $155.00 $25.00 (per unit per year) 1.50 Electricity Water (Landscape Trash General Maintenance Insurance Property Taxes Management Fees Reserves for Replacements Elevator Maintenance Pool Maintenance Leasing Employees Maintenance Security Annual Expense -564 800.00 $162,000.00 -$72.00000 -$54.000.00 -$558 000 00 $7,500.00 -$1,350,000.00 $429.753.60 -$300 827 52 -$21,600.00 $57,600.00 -$107 438 40 -$128.926.08 $0.00 5.00% 3.50% $6.00 $16.00 1.25% 150% $0.00 Total Operating Expenses $3,314,445.60 Net Operating Income Capital Improvements Purchase and Sale Purchase Expenses Sale Expense 650% Investor Cash Flow Internal Rate of Return 8.84% Net Present Value $2.281545.55 Income Assumptions Unit Type REG 1 BED 1 BEDDEN REG 2 BED $1,995.00 $2,872,800.00 $2,958,984.00 $3,047,753.52 $783,000.00 $806,490.00 $830,684.70 $5,022,000.00 $5,172,660.00 $5,327,839.80 $3,139,186.13 $ass, 605.24 $5,487,674.99 $3,233,361.71 $881,273.40 $5,652,305,24 $3,330,362.56 $907,711.60 $5,823,874.40 $3,430,273.44 $3,533,181.64 $3,639,177.09 $3,748,352.40 $3,860,802.97 $934,942.95 $962,991.24 $991,880.97 $1,021,637.40 $1,052,286.53 $5,996,530.63 $6,176,426.5S $6,361,719.35 $6,552,570.93 $6,749,148.06 $2.63 $2.790.00 SS.022.000.00 Total 300 $8,677,800.00 $8,938, 134.00 $9,206,278.02 $9,482,466.36 $9,766,940.35 $10,059,948.56 $10,361,747.02 AM AM $11,322,560.73 A M Other Income Assumptions h Clubhouse Price Per Monch $150.00 $14,400.00 $16,207.33 $16,693.55 $18,788.73 $19,352.40 450 $135,000.00 $14,400.00 $0.00 $135,000.00 $0.00 $126,000.00 $15,735.27 $0.00 $147,518.15 Structured Parking Misc Income Discounts and Premiums $14,832.00 $0.00 $139,050.00 $0.00 $129,780.00 9.780.00 $15, 276.96 $0.00 $143,221.50 $0.00 $129,780.00 $129,780.00 $151,943.69 $0.00 $129,780.00 $156,502.00 $0.00 $129,780.00 $17,194.35 $0.00 $161, 197.06 $0.00 $129,780.00 $17,710.18 $0.00 $ 166,032.97 $0.00 $129,780.00 $18, 241.49 $0.00 $171,013.96 $0.00 $129,780.00 $176,144.98 $0.00 $129,780.00 $181,428.71 50.00 $129,780.00 $35.00 $126,000.00 $129,780.00 $275,400.00 $275,400.00 $283,662.00 $288,278.46 $293,033.41 $297,931.02 $302,675.55 $308,171.41 $319,523.16 $319,035.45 $324,713.11 $330,561.11 Poba Gross income $8,953,200.00 $9,221,796.00 $9,494,556.48 $9,775,499.77 $10,064,871.37 $10,362,924.11 $10,669,918.43 $11,647,273.85 A Vacancy and Collection Less $358,128.00 $368,871.84 $379,782.26 $391,019.99 $402,594.85 $414,516.96 $426,796.74 $439,444.90 $452,472.51 $465,890.95 $479,711.95 Effective Gress Income $8,595,072.00 $8,852,924.16 $9,114,774.22 $9,384,479.78 $9,662,276.51 $9,948,407.14 $10,243, 121.69 M A $11,181,382.89 A Operating Bypass PricePerUnit Per Mond of EG $72,932.97 $75,120.96 $77,374.59 $79,695.83 $82,086.70 $84,549.30 $87,085.78 $45.00 Electricity War (Landscape $64.800.00 $ 162,000.00 $72,000.00 $64,800.00 $162,000.00 $72,000.00 $66,744.00 $166,860.00 $74,160.00 $68,746.32 $171,865.80 $76,384.80 $70,808.71 $177,021.77 $78,676.34 $81.0376.63 $83.467.73 S85.971.77 $88.SS0.92 5 91207.45 $9.943.67 $96.761.98 $609,741.67 S628.033.92 $646,874,93 $155.00 $25.00 (per unit SS58,000.00 $7,500.00 ) $558,000.00 $574,740.00 $591,982.20 57.725.00 $2.9 $1,350,000.00 $1,327,000.00 Awwwww $666,281.18 $8.955.39 $1,520,319.27 $686,269.62 $9.224.05 A $706,857.71 $9.500.78 M $728,063.44 $9.785.80 $1,613,374.97 A $749,905.34 $10.079.37 M $1,432,630.80 $1,461,283.42 $1,490,509.08 5442.646 21 945 3.50% $948 194.25 General Maintance Insurance Property To Managment for Res for Replacements aver Mainance Peel Mainance Leasing Employees Mainance Security $300.827.52 $21,600.00 $25.040.32 $6.00 $16.00 $300,827.52 $21,600.00 $52,600.00 $102,438.40 $128,926.08 $0.00 $309,852.35 $22, 248.00 $59.328.00 $110.661.SS $ 132,793.86 $319,017.10 $22,915.44 $61 107.84 $113.934.68 $136,721.61 $0.00 $328,456.79 $23,602.90 629019 112 30600 $140,767.20 $338, 179.68 $24.310.99 $64,829.31 $120,778.46 $ 144,934.15 $66,224.19 $124,355.09 $149,226.11 $358,509.26 $25,291.53 $68,777.41 $128.039.02 $153,646.83 $0.00 $369,133.72 $26, S65.28 $ 70,840.73 $131.833.47 $158,200.17 $0.00 $380,076.91 $22,362.23 $72,965.96 $135.741.75 $162,890.11 $0.00 $391,348,40 $28,183.10 $75,154.94 $139.767.29 $167,720.74 $0.00 $402,958.04 $ 29,028.59 $77,409.58 $143.913.58 $172,696.30 $128,926.08 $0.00 Total Operating Expanse $3,314,445.60 $3,400,378.97 AM $3,578,379.96 $3,670,084.56 $3,766,080.28 $3,863,737.62 www $4,172,791.79 A Net Operating Income $5,806,099.83 $5,280,626.40 $5,452,545.19 $5,626,574.37 $0.00 $0.00 $0.00 $5,991,291.95 $0.00 $6,182,326.37 $0.00 $6,379,384.07 $6,582,651.61 $6,792,321.24 $7,008,591.10 $7,231,665.41 $0.00 $0.00 $0.00 $0.00 Capital Improvements Purchase and Sale $1,350,000.00 $8,546,513.66 Investor Cash Flow $91,350,000.00 $5,280,626.40 $5,452,545.19 $5,626,574.37 $5,806,099.83 $5,991,291.95 $6,182,326.37 $6,379,384.07 $6,582,651.61 $6,792,321.24 AM General Assumptions Income Inflation Expense Inflation Cap Rate Discount Rate Property Tax Increase 3.00% 3.00% 5.50% 8.50% 2% Number of Units SF Rent/SF Income Assumptions Unit Type REG 1 BED 1 BED + DEN REG 2 BED 685 120 30 150 Rent per Month $1,995.00 $2,175.00 $2,790.00 $2.91 $2.47 $2.63 Annual Rent $2,872,800.00 $783,000.00 $5,022,000.00 880 1,060 Total 300 $8,677,800.00 Rentals Per Month 8 Other Income Assumptions Type Clubhouse Private Garages Structured Parking Misc income Discounts and Premiums Price Per Month $150.00 $0.00 $25.00 450 Annual Income $14.400,00 $0.00 $135,000.00 $0.00 $126,000.00 $35.00 Total $275,400.00 Potential Gross income Vacancy and Collection Loss Effective Gross Income Operating Expenses Type % of Purchase Price Per Unit Per Month % of EGI $18.00 $45 00 $20.00 $15.00 $155.00 $25.00 (per unit per year) 1.50 Electricity Water (Landscape Trash General Maintenance Insurance Property Taxes Management Fees Reserves for Replacements Elevator Maintenance Pool Maintenance Leasing Employees Maintenance Security Annual Expense -564 800.00 $162,000.00 -$72.00000 -$54.000.00 -$558 000 00 $7,500.00 -$1,350,000.00 $429.753.60 -$300 827 52 -$21,600.00 $57,600.00 -$107 438 40 -$128.926.08 $0.00 5.00% 3.50% $6.00 $16.00 1.25% 150% $0.00 Total Operating Expenses $3,314,445.60 Net Operating Income Capital Improvements Purchase and Sale Purchase Expenses Sale Expense 650% Investor Cash Flow Internal Rate of Return 8.84% Net Present Value $2.281545.55 Income Assumptions Unit Type REG 1 BED 1 BEDDEN REG 2 BED $1,995.00 $2,872,800.00 $2,958,984.00 $3,047,753.52 $783,000.00 $806,490.00 $830,684.70 $5,022,000.00 $5,172,660.00 $5,327,839.80 $3,139,186.13 $ass, 605.24 $5,487,674.99 $3,233,361.71 $881,273.40 $5,652,305,24 $3,330,362.56 $907,711.60 $5,823,874.40 $3,430,273.44 $3,533,181.64 $3,639,177.09 $3,748,352.40 $3,860,802.97 $934,942.95 $962,991.24 $991,880.97 $1,021,637.40 $1,052,286.53 $5,996,530.63 $6,176,426.5S $6,361,719.35 $6,552,570.93 $6,749,148.06 $2.63 $2.790.00 SS.022.000.00 Total 300 $8,677,800.00 $8,938, 134.00 $9,206,278.02 $9,482,466.36 $9,766,940.35 $10,059,948.56 $10,361,747.02 AM AM $11,322,560.73 A M Other Income Assumptions h Clubhouse Price Per Monch $150.00 $14,400.00 $16,207.33 $16,693.55 $18,788.73 $19,352.40 450 $135,000.00 $14,400.00 $0.00 $135,000.00 $0.00 $126,000.00 $15,735.27 $0.00 $147,518.15 Structured Parking Misc Income Discounts and Premiums $14,832.00 $0.00 $139,050.00 $0.00 $129,780.00 9.780.00 $15, 276.96 $0.00 $143,221.50 $0.00 $129,780.00 $129,780.00 $151,943.69 $0.00 $129,780.00 $156,502.00 $0.00 $129,780.00 $17,194.35 $0.00 $161, 197.06 $0.00 $129,780.00 $17,710.18 $0.00 $ 166,032.97 $0.00 $129,780.00 $18, 241.49 $0.00 $171,013.96 $0.00 $129,780.00 $176,144.98 $0.00 $129,780.00 $181,428.71 50.00 $129,780.00 $35.00 $126,000.00 $129,780.00 $275,400.00 $275,400.00 $283,662.00 $288,278.46 $293,033.41 $297,931.02 $302,675.55 $308,171.41 $319,523.16 $319,035.45 $324,713.11 $330,561.11 Poba Gross income $8,953,200.00 $9,221,796.00 $9,494,556.48 $9,775,499.77 $10,064,871.37 $10,362,924.11 $10,669,918.43 $11,647,273.85 A Vacancy and Collection Less $358,128.00 $368,871.84 $379,782.26 $391,019.99 $402,594.85 $414,516.96 $426,796.74 $439,444.90 $452,472.51 $465,890.95 $479,711.95 Effective Gress Income $8,595,072.00 $8,852,924.16 $9,114,774.22 $9,384,479.78 $9,662,276.51 $9,948,407.14 $10,243, 121.69 M A $11,181,382.89 A Operating Bypass PricePerUnit Per Mond of EG $72,932.97 $75,120.96 $77,374.59 $79,695.83 $82,086.70 $84,549.30 $87,085.78 $45.00 Electricity War (Landscape $64.800.00 $ 162,000.00 $72,000.00 $64,800.00 $162,000.00 $72,000.00 $66,744.00 $166,860.00 $74,160.00 $68,746.32 $171,865.80 $76,384.80 $70,808.71 $177,021.77 $78,676.34 $81.0376.63 $83.467.73 S85.971.77 $88.SS0.92 5 91207.45 $9.943.67 $96.761.98 $609,741.67 S628.033.92 $646,874,93 $155.00 $25.00 (per unit SS58,000.00 $7,500.00 ) $558,000.00 $574,740.00 $591,982.20 57.725.00 $2.9 $1,350,000.00 $1,327,000.00 Awwwww $666,281.18 $8.955.39 $1,520,319.27 $686,269.62 $9.224.05 A $706,857.71 $9.500.78 M $728,063.44 $9.785.80 $1,613,374.97 A $749,905.34 $10.079.37 M $1,432,630.80 $1,461,283.42 $1,490,509.08 5442.646 21 945 3.50% $948 194.25 General Maintance Insurance Property To Managment for Res for Replacements aver Mainance Peel Mainance Leasing Employees Mainance Security $300.827.52 $21,600.00 $25.040.32 $6.00 $16.00 $300,827.52 $21,600.00 $52,600.00 $102,438.40 $128,926.08 $0.00 $309,852.35 $22, 248.00 $59.328.00 $110.661.SS $ 132,793.86 $319,017.10 $22,915.44 $61 107.84 $113.934.68 $136,721.61 $0.00 $328,456.79 $23,602.90 629019 112 30600 $140,767.20 $338, 179.68 $24.310.99 $64,829.31 $120,778.46 $ 144,934.15 $66,224.19 $124,355.09 $149,226.11 $358,509.26 $25,291.53 $68,777.41 $128.039.02 $153,646.83 $0.00 $369,133.72 $26, S65.28 $ 70,840.73 $131.833.47 $158,200.17 $0.00 $380,076.91 $22,362.23 $72,965.96 $135.741.75 $162,890.11 $0.00 $391,348,40 $28,183.10 $75,154.94 $139.767.29 $167,720.74 $0.00 $402,958.04 $ 29,028.59 $77,409.58 $143.913.58 $172,696.30 $128,926.08 $0.00 Total Operating Expanse $3,314,445.60 $3,400,378.97 AM $3,578,379.96 $3,670,084.56 $3,766,080.28 $3,863,737.62 www $4,172,791.79 A Net Operating Income $5,806,099.83 $5,280,626.40 $5,452,545.19 $5,626,574.37 $0.00 $0.00 $0.00 $5,991,291.95 $0.00 $6,182,326.37 $0.00 $6,379,384.07 $6,582,651.61 $6,792,321.24 $7,008,591.10 $7,231,665.41 $0.00 $0.00 $0.00 $0.00 Capital Improvements Purchase and Sale $1,350,000.00 $8,546,513.66 Investor Cash Flow $91,350,000.00 $5,280,626.40 $5,452,545.19 $5,626,574.37 $5,806,099.83 $5,991,291.95 $6,182,326.37 $6,379,384.07 $6,582,651.61 $6,792,321.24 AM