Please review a current live deal that we are working on and answer the

following with the assumptions below: What is our Stabilized Yield on Cost?

General Assumptions

Property is single tenant

Vacant at Closing

Secure a lease starting at $$10$ PSF NNN with $3\%$ annual escalations in Month

$6^{th}$ of ownership

Property is $50,000SF$

Purchase Price $-$ $$5,000,000$

Acquisition Fee $-2\%$

Leasing Commission $-6\mathrm{.}75\%$ of Net rent

Investor Equity $-35\%$

Debt Assumptions

Senior Debt $-65\%$

Interest rate $-7\mathrm{.}75\%$

Amortization $-25$ years

Term $-5$ years

Origination Fee$-1\mathrm{.}5\%$

Attorney's Fees $-$ $$2500$

Appraisal $$3,000$

Due Diligence Cost

Phase $1-$ $$2500$

PCA $-$ $$2500$

Legal $-$ $$2500$

Mise $-$ $$3000$

Operating Capital $-6$ months Reserves

Debt Service $-$ P&I

Insurance $-$ S$\mathrm{.}65$ PF annually

Taxes $-2\mathrm{.}7\%$ Milage rate

Utilities $-$ $$1000/$ mo

Property Management Fees

$5\%$ gross Rents

Reinvestment Reserves $-$ $$\mathrm{.}10$ PSF

Asset Management Fee $-1\mathrm{.}5\%$ of Gross Rents

Construction to be done at closine

$$300,000$