Part One Directions
Complete pro forma for NOI
Commercial Complex 4 tenants Property will be held for 5 years
|
Tenant |
Lease Type |
Size |
Current Lease Rate |
Rent Growth |
CAM |
|
Bank |
NNN |
Outparcel |
$85,250/yr |
2.15% |
|
|
Retailer |
Percentage |
3,125 |
$4.50/ sq ft Plus 4.55% revenue |
Tenant revenue is expected to grow at 2.5% per year Year 1 Revenues are $310,000 |
Limited to $2.75 per sq foot Pro rata on sq feet |
|
Office |
9,600 |
$21.00/ sq ft |
CPI |
None |
|
|
Office |
4,375 |
$22.50/ sq ft |
CPI |
Limited to $5.25 per sq foot Pro rata on sq feet |
|
OP EX Category |
Cost |
Growth Rate |
|
Utilities |
$3.25 per sq ft |
2.85% per year |
|
Taxes |
$11,627 per year |
2.75% per year |
|
Insurance |
$2.75 per sq ft |
2.0% per year |
|
Maintenance |
$3.15 per sq ft |
3.15% per year |
|
CPI |
Rate |
|
Years 1-3 |
1.75% |
|
Years 4-7 |
2.25% |
|
Years 8-10 |
3.25% |
Part Two Questions:
- Calculate The Max Debt for this property.
- Calculate the amount of equity needed for this property.
- Calculation the Net Sale Proceeds to Owner.
|
Going In Cap Rate |
6.25% |
|
Terminal Cap Rate |
5.75% |
|
Loan Interest Rate |
3.35% |
|
Max loan to value for debt |
60% |
|
Required Debt Service Coverage |
1.42 |
|
Discount Rate |
12% |
|
Loan Amortization Period |
20 years |
|
Loan Term |
7 years |
|
Loan Fees |
2.0% |
|
Cost of Sale |
3% |
Make sure to show your work in the uploaded Excel file (be sure to show cash flows through BTCF).
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