PROFORMA. Create a 3-year pro forma: Assumptions: 1 7. (8 total pts) 2 3 von WN Financing Loan to Value Debt Service Yr 1 Purchase Price Gross Rent CAM/Property Tax Cap Ex Vacancy Cap Rate:Initial Cap Rate: Exit Sales Costs at Exit Rent Increases Expense Increases (CAM/CapEx) $8,600,000 $1,200,000 annual $300,000 annual $10,000 annual 0% 8.00% 8.25% 0% 75% LTV $432,000 annual $410,000 interest $22,000 principal $400,000 interest $32,000 principal $390,000 interest $42,000 principal 8 Yr 2 Yr 3 9 10 11 12 13 14 15 5% per year 0% per year Assuming a project sale at end of Year 3, show the annual cash flows and determine the Unlevered IRR and the Levered IRR: 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 C)2 points 33 34 35 How much equity will be required to purchase the building? 36 37 38 39 PROFORMA. Create a 3-year pro forma: Assumptions: 1 7. (8 total pts) 2 3 von WN Financing Loan to Value Debt Service Yr 1 Purchase Price Gross Rent CAM/Property Tax Cap Ex Vacancy Cap Rate:Initial Cap Rate: Exit Sales Costs at Exit Rent Increases Expense Increases (CAM/CapEx) $8,600,000 $1,200,000 annual $300,000 annual $10,000 annual 0% 8.00% 8.25% 0% 75% LTV $432,000 annual $410,000 interest $22,000 principal $400,000 interest $32,000 principal $390,000 interest $42,000 principal 8 Yr 2 Yr 3 9 10 11 12 13 14 15 5% per year 0% per year Assuming a project sale at end of Year 3, show the annual cash flows and determine the Unlevered IRR and the Levered IRR: 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 C)2 points 33 34 35 How much equity will be required to purchase the building? 36 37 38 39