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	$70,000/yr	1.5%
Retailer	Percentage	4,000	$6 sq ft Plus 5% revenue	Tenant revenue is expected to grow at 6% per year Year 1 Revenues are $450,000	Limited to $3.35 per sq foot Pro rata on sq feet
Office		2,500	$17 sq ft	CPI	None
Office		3,500	$15	CPI	Limited to $3.85 per sq foot Pro rata on sq feet

OP EX Category	Cost	Growth Rate
Utilities	$0.95 per sq ft	2.4% per year
Taxes	$13,500 per year	2.5% per year
Insurance	$0.40 per sq ft	1.5% per year
Maintenance	$0.50 per sq ft	3.0% per year

CPI	Rate
Years 1-3	3%
Years 4-7	2.9%
Years 8-10	3.1%

Part Two Questions:

1. Calculate The Max Debt for this property.
2. Calculate the amount of equity needed for this property.
3. Calculation the Net Sale Proceeds to Owner.

Going In Cap Rate	7.25%
Terminal Cap Rate	7.15%
Loan Interest Rate	5.45%
Max loan to value for debt	65%
Required Debt Service Coverage	1.35
Discount Rate	10%
Loan Term	20 years
Loan Fees	2.1%