Next task is to build a complete proforma to determine the value of each property type.

The holding period is ten years. All need assumptions are listed below. The proforma is to be

constructed in excel. In order to receive full credit, the excel file must be fully functional. This

means there has to be a way to change any assumption and the entire proforma through to the

valuation updates. If you have to go into any cell and change a formula it will not be considered

a fully functional proforma.

BONUS: create a two way data table for cap rate and discount rate

Apartments

units $20$

rent $ $1,475$ monthly

Vacancy collections $6\mathrm{.}00\%$ of PGI

Parking $ $150\mathrm{.}00$ monthly $($half of units rent additional space$)$

Other $1\mathrm{.}00\%$ of PGI

OPEX $29\mathrm{.}00\%$ of EGI

CAPEX $2\mathrm{.}00\%$ of EGI

RE Taxes $ $150\mathrm{.}00$ per unit per month

Insurance $ $2,000\mathrm{.}00$ per unit

Going Out Cap Rate $7\mathrm{.}15\%$

Cost of Sale $3\mathrm{.}15\%$

Discount Rate $9\mathrm{.}25\%$

Purchase Price $ $3,400,000$ of a comparable property

Growth Rates

PGI

$5\mathrm{.}00\%$ per year for $3$ years

$3\mathrm{.}50\%$ per year for $4$ years

$2\mathrm{.}75\%$ per year rest of proforma

Parking

$ $10\mathrm{.}00$ per space per month for $5$ years

$ $5\mathrm{.}00$ per space per month for rest of proforma

OPEX

$0\%$ per year for $5$ years

$0\mathrm{.}50\%$ per year for rest of proforma

CAPEX

$0\%$ per year for $5$ years

$0\mathrm{.}50\%$ per year for rest of proforma

RE Taxes

$ $15\mathrm{.}00$ per unit per month for $5$ years

$ $20\mathrm{.}00$ per unit per month for rest of proforma

Insurance

$ $50\mathrm{.}00$ per unit per year for $5$ years

$ $75\mathrm{.}00$ per unit per year for rest of proforma

Office Space

Square Feet $21,000$

Rent $$20\mathrm{.}00$

Vacancy collections $15\mathrm{.}00\%$ of PGI

Parking $60$ Spaces

Parking Rent $$125$ monthly

Expense Collection $65\%$ of OPEX, RE Taxes and insurance

OPEX $29\mathrm{.}50\%$ of EGI $($expense collection excluded$)$

CAPEX $2\mathrm{.}25\%$ of EGI $($expense collection excluded$)$

RE Taxes $1\mathrm{.}50\%$ of PGI

Insurance $$42,000$ per year

Going Out Cap Rate $17\mathrm{.}15\%$

Cost of Sale $8\mathrm{.}25\%$

Discount Rate $15\mathrm{.}00\%$

Purchase Price $$3,290,000$ of a comparable property

Growth Rates

PGI

$5\mathrm{.}00\%$ per year for $3$ years

$3\mathrm{.}50\%$ per year for $4$ years

$2\mathrm{.}75\%$ per year rest of proforma

Parking

$ $10\mathrm{.}00$ per space per month for $5$ years

$ $5\mathrm{.}00$ per space per month for rest of proforma

OPEX

$0\%$ per year for $5$ years

$0\mathrm{.}50\%$ per year for rest of proforma

CAPEX

$0\%$ per year for $5$ years

$0\mathrm{.}50\%$ per year for rest of proforma

RE Taxes

$0\mathrm{.}15\%$ per year for $5$ years

$0\mathrm{.}25\%$ per year for rest of proforma

Insurance

$ $750\mathrm{.}00$ per year for $5$ years

$ $1,250\mathrm{.}00$ per year for rest of proforma

PLEASE READ: Submit an excel file with the information