Instructions An industrial firm is looking to acquire West Ontario Logistics Center (5000 Main Avenue, Ontario, CA 91762). The site is currently owned and occupied by ABC Corporation who is looking to sell the site to an investor as part of a sale-leaseback. Build a cash flow (starting on January 1, 2024) considering the lease in-place and market leasing assumptions at expiration to a single tenant. How much can we pay for the property and achieve an 8% IRR? Analyze the acquisition and prepare a one-page executive summary. Include a brief background of the deal, 2-3 pros and cons associated, and a conclusion justifying your recommendation. Show any other metrics, maps, or photos you think would be useful for the team's evaluation. Land Site (Acres) NRA Year Built Clear Height Dock Doors Parking Spaces Monthly Market Rent Term Annual Rent Escalations Downtime Renewal Probability Vacancy Market Rent Growth (annual) Lease Type Inflation (Expenses, TI's, CapEx; annual) Free Rent (months) New Renew Tenant Improvements PSF Property Information MLAS 61 1,197,820 1980 28' 200 80 $1.15 PSF 60 months 3% 6 months 60% 5% 5% NNN 3% 2 1 New $3.00 Renew $1.50 Leasing Commissions New 6.50% Renew 5.50% Replacement Reserves (annual): $0.15 PSF Operating Expenses (PSF/YR) Insurance $0.20 Property Taxes $1.15 CAM $0.35 Property Management (% of EGR) 3.00% Acquisition / Residual and Exit Cap Rate at Exit in Year 12 5.50% Acquisition Costs Selling Expense 1.00% 1.50% Target IRR 8.00% Purchase Price ?? Tenant Monthly Rent Lease Term Free Rent Escalations (annual) Lease Type Leasing Commissions Tenant Improvements Roof Replacement Costs as of Today (incurred in Month 37) Rent Roll ABC Corporation $0.95 PSF 36 months 0 months 4.00% NNN (inc. management fee) 6.50% $2.00 PSF $7.00 PSF