How to solve

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Heading $2$

Problem $4[15$ Points$]$

Property:

Acquisition date: Purchase Price:

Deal Terms:

Bast Year $2023$:

Ofilce One, New York, U$.$S$.$A$.$

December $31,2023$

$2024$ NOI @ $10\%$ CAP RATE

$75\%$ financed with debt, $9\%$ interest$-$only, $10-$year term

$25\%$ equity ownership

Rental Income $$1,600,000$

CAM Income $$0$

Less: Janitorial & Cleaning $$380,000$

Labor $$215,250$

Utillities $$60,000$

Management Fee $$80,000$

Real Estate Taxes $$80,000$

Vacancy Rate: $9\%$

Growth Rates: Rental Income $5\%$ Annually Janitorial & Cleaning $3\%$ Annually

Labor $3\%$ Annually

Utilities $,3\%$ Annually

Management Fee $3\%$ Annually

REtaxes Static, unchanged

Depreciable Basis: $,80\%$ of cost $($calculate depreciation using straight$-$line method$)$

Owner's Ordinary Tax Rate: $28\%$

Required:

A$)$ Prepare a single year analysis $($pro$-$forma$)$ for both pre$-$tax and afer$-$tax

B$)$ Provido calculations for:

Gash$-$on$-$cash returm

After tax cash$-$on$-$cash returm

Gross Rent Muthiplier

Debt Sarvice Goverage

Free$-$and$-$clear retum