Property #3 Property type = 3-story office building Location = Lexington, MA Year Built = 2007 Property Size = 75,000 sq feet Current Annual Rent / SF = $0/sf (building currently vacant) Renovation: 12-month conversion from conventional office to biotech office Current vacancy = 100% Renovation and TI costs = $200 / SF, spent in year 1 after purchase Pro-forma rent=your assumption, based on market research Vacancy projection: 100% vacant year 1; 7% vacant years 2-6 Annual Rent Escalation = 3% / year after renovation Operating expenses & taxes= $10/SF, increasing 3% per year Terminal cap rate= 7.0% Discount rate= 8.50% a. Create a projected 6-year annual income and expense pro forma financial statement for the Property, based on the information provided for each property and your own underwriting; start the projection on July 1, 2020 b. Show all major assumptions you used in the pro-forma Property #3 Property type = 3-story office building Location = Lexington, MA Year Built = 2007 Property Size = 75,000 sq feet Current Annual Rent / SF = $0/sf (building currently vacant) Renovation: 12-month conversion from conventional office to biotech office Current vacancy = 100% Renovation and TI costs = $200 / SF, spent in year 1 after purchase Pro-forma rent=your assumption, based on market research Vacancy projection: 100% vacant year 1; 7% vacant years 2-6 Annual Rent Escalation = 3% / year after renovation Operating expenses & taxes= $10/SF, increasing 3% per year Terminal cap rate= 7.0% Discount rate= 8.50% a. Create a projected 6-year annual income and expense pro forma financial statement for the Property, based on the information provided for each property and your own underwriting; start the projection on July 1, 2020 b. Show all major assumptions you used in the pro-forma