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Complete pro forma for NOI and BTCF Commercial Complex 4 tenants Property will be held for 5 years Tenant Lease Type Size Current Lease Rate

Complete pro forma for NOI and BTCF

Commercial Complex 4 tenants Property will be held for 5 years

Tenant

Lease Type

Size

Current Lease Rate

Rent Growth

CAM

Bank

NNN

Outparcel

$75,000/yr

1.75%

Retailer

Percentage

4,200

$4.25 sq ft

Plus 5% revenue

Tenant revenue is expected to grow at 3.35% per year

Year 1 Revenues are $350,000

Limited to $3.35 per sq foot

Pro rata on sq feet

Office

3,000

$18 sq ft

CPI

None

Office

3,800

$16

CPI

Limited to $3.65 per sq foot

Pro rata on sq feet

OP EX Category

Cost

Growth Rate

Utilities

$1.20 per sq ft

2.4% per year

Taxes

$9,500 per year

2.5% per year

Insurance

$0.50 per sq ft

1.5% per year

Maintenance

$0.85 per sq ft

3.0% per year

CPI

Rate

Years 1-3

2.1%

Years 4-7

2.8%

Years 8-10

3.1%

Part Two Questions:

  1. Calculate The Max Debt for this property.
  2. Calculate the amount of equity needed for this property.
  3. Calculation the Net Sale Proceeds to Owner.

Going In Cap Rate

6.25%

Terminal Cap Rate

6.15%

Loan Interest Rate

4.45%

Max loan to value for debt

60%

Required Debt Service Coverage

1.40

Discount Rate

11%

Loan Term

20 years

Loan Fees

2.2%

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