You have been retained by Titan Realty Partners IV, LLC to analyze the potential sale of one of their properties. The building is a twelve (12) story 118,000 square foot Class A office building with three (3) elevators located in Richmond, Virginia. The building is currently 100% occupied. The rent roll for the building is shown below. Titan purchased the building five years ago for $20,500,000. The allocation of the purchase price between the building and land is 80/20. Current capitalization rates are 8%. The current tax rate on ordinary income is 28%.

Tenant Name	Floor	Square Footage	Lease Expiration	Rent /Square Foot
99 World	Grade Retail	14,000	March 31, 2029	$100.00
A. Emporium Co.	2	14,000	April 30, 2020	35.37
East Realty LLC	3	14,000	January 31, 2018	33.75
Ace Graphics	4	9,000	April 30, 2019	33.26
Rapid Marketing	5	9,000	October 31, 2022	27.12
SBS Architects	6	9,000	March 31, 2020	31.69
J. Burns & Assoc.	7	9,000	March 31, 2021	33.72
Asia Tours, Intl	8	8,250	July 31, 2021	34.25
ABS Management	9	8,250	April 30, 2019	29.98
Pi Communication	10	8,250	August 31, 2019	34.50
Law Office	11	7,625	January 31, 2018	31.44
First Investors Inc.	12	7,625	May 31, 2029	34.13

The building is staffed by a superintendant and two porters. The weekly payroll is $2,500.00. Payroll taxes equate to 12% of gross payroll. The employer is obligated under the Union contract to contribute $525.00 per month per employee to the Union Health Benefits Program. In addition, the employer must also make contributions to the Pension Plan in the amount of $50.75 per week per employee. Real estate taxes are based upon 45% of the purchase price. The current tax rate is $60.63 per $1,000 in valuation. The building is heated with #6 oil. The average annual consumption is 180,000 gallons at an average price per gallon of $1.62. The building consumes 87,000 KwH a month in electricity. The utility charges 12.683 per Kwh. The local water company supplies water to the building. Current rates are $165.2897 per HCF. Average water consumption is 323.178 HCF. Repairs and maintenance average $2.49 per sq. ft. The building is insured for full replacement cost. Current premiums for this typical insurance cost 62 per square foot. The nightly office cleaning (exclusive of the retail space) is done by a third party contractor. The current rate is 12 per square foot per month. The monthly elevator contract (which is all-inclusive) is $618.25 per elevator per month. All other miscellaneous costs associated with the operations of the building are 39 per square foot. Management Fee is 3% of gross potential rent. A vacancy allowance of 5% is used in comparable buildings.

Given the facts in the case, your job is to 1). create a pro forma income and expense statement, 2). determine a sales price, and 3). determine what Titans current after tax cash flow is.