Construct an income proforma operating statement using the following information.

• Show the following:
  • PGI (rental income and other income itemized), shown in whole dollars and $/SF
  • Vacancy & collection loss, shown in whole dollars and as a percentage
  • EGI, shown in whole dollars and $/SF
  • Operating expenses, shown in whole dollars and $/SF
  • OER, shown as a percentage
  • NOI, shown in whole dollars and $/SF

Subject: 312,000 SF warehouse

Income:

• Market rent is $7.25/SF with industrial gross terms. Industrial gross in this market means the landlord pays for taxes, insurance, common area maintenance (CAM), management, and replacement reserves.
• The property receives other income from leasing trailer parking spaces. They currently lease 40 spaces for $80/month.

Vacancy and collection loss:

• Market vacancy in this market is 2.5%. Market collection loss is 0.25%.

Operating expenses:

• Insurance: $0.12/SF
• Real estate taxes: $2.20/SF
• CAM: $0.25/SF
• Management fee: 4% of EGI
• Replacement reserves: Based on a sinking fund factor for $3.50/SF for 4 years in an interest-bearing account with a rate of 3% (annual compounding).

Construct an income proforma operating statement using the following information.

• Show the following:
  • PGI (rental income and other income itemized), shown in whole dollars and $/SF
  • Vacancy & collection loss, shown in whole dollars and as a percentage
  • EGI, shown in whole dollars and $/SF
  • Operating expenses, shown in whole dollars and $/SF
  • OER, shown as a percentage
  • NOI, shown in whole dollars and $/SF

Subject: 312,000 SF warehouse

Income:

• Market rent is $7.25/SF with industrial gross terms. Industrial gross in this market means the landlord pays for taxes, insurance, common area maintenance (CAM), management, and replacement reserves.
• The property receives other income from leasing trailer parking spaces. They currently lease 40 spaces for $80/month.

Vacancy and collection loss:

• Market vacancy in this market is 2.5%. Market collection loss is 0.25%.

Operating expenses:

• Insurance: $0.12/SF
• Real estate taxes: $2.20/SF
• CAM: $0.25/SF
• Management fee: 4% of EGI
• Replacement reserves: Based on a sinking fund factor for $3.50/SF for 4 years in an interest-bearing account with a rate of 3% (annual compounding).

Your client asks you to indicate a cap rate for the subject property using the DCR technique, using the following parameters:

• 80% loan-to-value ratio
• 3.5% interest rate (monthly compounding)
• 30-year amortization
• 1.15x DCR

What is your cap rate indicated by this technique? Using the NOI from question 3, what would that indicate is the value of the subject property (rounded to the nearest $10,000)?

please answer all the three questions