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 Improvement10yearsRentable Area (RA)400,000square feetCommon Area (CA)160,000square feetNumber of Tenants40

Financial Information:

Average Base Rents$20per square feetOverage Rents (5 Tenants)50,000 square feet @ $8.00per square feetCAM Expenses Recoverable from Tenants50,000 square feet @ $5.00per square feetAverage Lease Term3.5yearsVacancyEqual to 10% of total rental revenue

Operating Expenses: Maintenance/Repair$ 1,200,000Management/administration/Leasing Expenses$230,000Property Taxes$ 1,715,000Insurance$105,000Other0Other Information: Recurring CAPEX/Improve Allowance$ 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.