Question 3 (20 points) Constnrct an Income proforma operating statement using the follcwrng Infcnnatlon - Showthefollowing. 0 PGI (rental income and other income itemized), shown in whole dollars and $75F Vacancy 6' collection loss, shown in whole dollars and as a percentage EGI, shown in whole dollars and $JSF Operating expenses, shown In whole dollars and NSF OER, shown as a percentage NOI, shown In whole dollars and $st 00000 Subject 312,000 SF warehouse Income: - Market rent Is $7 25ISF With Industrial gross terms. Industrial gross in this market means the landlord pays for taxes, Insurance, common area maintenance (CAM), management, and replacement reserves. - The property receives other Income from leasing trailer parking spaces They cunentjy lease 40 spaces for $807monlh Vacancy and collection loss - Market vacancy in this market is 2.5%. Market collection loss IS 0 25% Operating expenses. - Insurance $012/SF - Real estate taxes $2 QDISF - CAM: $0.25ISF - Managementfee 4%01 EGI - Replacement reserves Based on a sinking fund factor for $3 50ISF for4 years In an interest, bearing account with a rate of 3% (annual compounding). Your answer Step 1 Ware house SF = 312000 Market rent = $7.25 per SF Market rent income = $7.25 I: 312000 = $2,262,000 trailer parking space Income=$80'12=$960 Total rent income=$2,262,360 Market vacancy = 2.5% = 2.5% X $2,262,960 = $56,574 Market collection loss = 0.25% = 0.25% x $2,282,960 = $5657 .4 Step 2 Operating expenses are Insurance = $0.12 per SF = $0.12 It 312000 = $37,440 Real estate taxes = $2.20 per SF = $2.20 x 312000 = 5686400 CAM = $0.25 per SF = $0.25 x 312000 = $78000 Step 3 Effective Gross mm) = Total Income - market vacancy - market collection loss = 52262360 - 56574 - 5657.4 = $2,200,728.6 Management fee = 4% 0t EGI = 4 % x2,200,726.6 = sss,ozs.1 Step 4 Income statement; Particulars Amount Total rent Income 2,262,960 -Market vacancy 56,574 -Markel collection loss 5657.4 eEflective gross Income 2,200,728 6 Operating expenses 37,440 elnsurance 686,400 eCAM 78,000 Management fees 88,029 1 Net Income 1,310,859 5 (amount in Mm net income = $1,310,8595