You have been asked to develop a pro forma statement of cash flow for Betts Distribution Center, an Internet$-$based order fulfillment,distribution,office and warehouse property. In addition to recoverable operating expenses, the new tenant will be billed for pass throughs including insurance and property taxes, which will then be paid by the owner. The information given to you is listed below.

Property Information:

BETTS DISTRIBUTION CENTER

Age of Improvement $8$ years old

Rentable Space $232,000$ square feet

Single Tenant $10-$year lease term, net, net

Financial Information:

Rent $$7\mathrm{.}00$ per square foot $(7-$year term$),$ flat

Recoverable Expenses from Tenant $$3\mathrm{.}10$ per square foot, fixed

Operating Expenses $$780,000$

Property Taxes $$53,200$

Insurance $$18,200$

Other Cash Outlays:

Allowances for:

Recurring CAPEX and Improvement Allowance $$68,000$Required:

Develop a pro forma statement for the Betts property for a base year showing net operating income $($NOI$).$