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