Set up an annual proforma and derive an appraisal valution for the property below. Submit one file (excel is by far the quickest way to do this, though can use a word file), showing all work (use formulae in excel cells and show formulae explicitly if you use a word document). You must show work or risk losing points. Quote your answer to the nearest $1,000. You are appraising an office property that consists of a total of 24,000 sqft of rentable space. Assume a holding period of 5 years, and that the property will sell at a cap rate of 10% at the end of year 5, with selling expenses of 5% of the gross price. Rent comparables indicate that an appropriate price per sqft is $1.67. For subsequent years 2, 3,..., you expect market rents to rise by inflation, 2% per year. Typical comprable office space in your market runs at a vacancy and collection loss rate of 20% of PGI. You are renting cell tower space on the roof for $5,000/yr, with a one-time jump of 10% in year 3, and growing at inflation each year thereafter (4, 5, ...). Fixed expenses and reserves will grow 3% per year. For year 1, these expenses are: RE taxes: $60,000; insurance: $10,000; CapEx: $10,000. Variable expenses are a fraction of effective gross income: 5% for maintenance, 1% for janitorial, 3% for utilities, 10% for management, 2% for leasing commissions, and 1% for TI. Comprarable properties sell at a 12% discount rate.