You have been asked to develop a pro forma statement of cash flow for the coming (base) year for Summer Place Mall. The nformation given to you is listed below. Property Information: SUMMER PLACE MALL Age of 10 years Improvement Rentable Area (RA) 430,000 Common Area (CA) 172,000 square feet square feet Number of Tenants 40 Financial Information: Average Base Rents Overage Rents (5 Tenants) CAM Expenses Recoverable from Tenants Average Lease Term Vacancy $20 per square feet 53,000 square feet @ $8.00 per square feet 53,000 square feet @ $5.00 per square feet 3.50 years Equal to 10% of total rental revenue Operating Expenses: Maintenance/Repair Management/Administration/Leasing Expenses Property Taxes Insurance $ 1,275,000 $233,000 $ 1,722,500 $108,000 0 $ 167,500 Other Other Information: Recurring CAPEX/Improve Allowance Required: . From the above data, develop a pro forma statement for a base year showing net operating income (NOI) for Summer Place. Answer is not complete. SUMMER PLACE MALL Revenue: Base rents Add: Overage rents $ 8,600,000 CAM recoveries 2,120,000 860,000 Less: Vacancy 800,000 Effective gross income $ 7,850,000 Less: Operating expenses Management/Administration/Leasing 1,200,000 Property taxes 1,715,000 x Insurance Maintenance/Repair 105,000 0 Total operating expenses 3,338,500 Recurring capital expenses Net operating income $ 3,506,000 4,344,000