You have been asked to develop a pro forma statement of cash flow for the coming (base) year for Summer Place Mall. The information given to you is listed below.

Property Information:

SUMMER PLACE MALL

Age of Improvement 10 years

Rentable Area (RA) 400,000 square feet

Common Area (CA) 160,000 square feet

Number of Tenants 40

Financial Information:

Average Base Rents $20 per square feet

Overage Rents (5 Tenants) 50,000 square feet @ $8.00 per square feet

CAM Expenses Recoverable from Tenants 50,000 square feet @ $5.00 per square feet Average

Lease Term 3.5 years

Vacancy Equal to 10% of total rental revenue

Operating Expenses:

Maintenance/Repair $ 1,200,000

Management/administration/Leasing Expenses $230,000

Property Taxes $ 1,715,000

Insurance $105,000

Other 0

Other Information: Recurring CAPEX/Improve Allowance $ 160,000

Required: a. From the above data, develop a pro forma statement for a base year showing net operating income (NOI) for Summer Place.