Question: Consider the following cash flow statement for a property fully leased to a new tenant on a NNN basis beginning in Year 1: Year 1
Consider the following cash flow statement for a property fully leased to a new tenant on a NNN basis beginning in Year 1:
| Year 1 | |||
| Potential Base Rent | $750,000 | ||
| Free Rent and Concessions | $0 | ||
| Absorption and Turnover Vacancy | $0 | ||
| Total Rental Revenue | $750,000 | ||
| Expense Recoveries | $350,000 | ||
| Total Tenant Revenue | $1,100,000 | ||
| Other Revenues | $0 | ||
| Potential gross Revenue | $1,100,000 | ||
| Vacancy and Collection Loss | $0 | ||
| Effective Gross Revenue | $1,100,000 | ||
| Recoverable Opex | $350,000 | ||
| NonRecoverable Opex | $50,000 | ||
| Total Opex | $400,000 | ||
| Net Operating Income | $700,000 | ||
What is the Net Operating Income for Year 2 if the scheduled base rent grows by 10% and all expenses grow by 2.5%?
What would the Year 1 NOI be if there were 3 months of downtime before the tenant's lease began AND the tenant had received 3 months of free base rent during the year?
What is the Y1 NOI return if the property was purchased for $15M?
What is the Y1 Levered NOI return if the property was purchased for $15,000,000, and had a $10,000,000 mortgage with annual debt service payments of $350,000?
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solution 1 To calculate the year 2 net operating income NOIwe first need to update the revenue and expenses based on the growth rate scheduled base rent growth 750000110 825000 expense growth 40000012... View full answer
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