Please include steps thankyou!!! Problem $2.$ Percentage $($Overage$)$ rents

A retail tenant has agreed to pay a base rent, plus $6\%$ of the sales above $$300,000.$ Sales are expected

to grow at $4\%$ per year. Current sales are $$350,000.$

What are the expected sales in year $3?$

What is the expected overage rent to be earned in year $3?$

ures unless otherwise noted

Asking Price:

Number of Units

Average Rent per unit

Current Vacancy

Proforma Vacancy

Misc Income:

Property Taxes

Repairs and Maintenance

Management, Common Area Utilities, Other Expenses

CAPEX

The property is approved for a $75\%$ LTV loan with $2$ points at $4\mathrm{.}75\%$ interest rate, with a $5$ y year term on a

$25$ year amortization schedule $($balloon payment due at the end of year $5.)$

Reconstructed Operating Statement:

What is the PGI for this property?

What are the proforma V&C losses?

What is the proforma EG for this property?

What are the operating expenses for this property?

What is the CAPEX for this property?

What is the NOI for this property?

What is the dollar amount of the loan for this property?

What is the annual Debt Service for this Property?

How much Equity is needed to purchase this property?

What is the BTCF for year $1$ for this property?

Valuation:

Given the cap rate on similar projects is $8\mathrm{.}25\%,$ what is the value of this project?

Given the EGIM on similar projects is $6\mathrm{.}5,$ what is the estimated value of this project?

You expect the NOI to grow at $2\mathrm{.}5\%$ each year. The cap rate for this project is estimated at $8\mathrm{.}5\%$ in $5$

years. Selling expenses are estimated at $5\%.$

What is the projected NOI for year $3?$

What is the projected NOI for year $6?$

What is the projected selling price?

What is the projected net selling price?

Given a discount rate of $10\mathrm{.}25\%,$ what is the value of this project $($use DCF approach here$)?$

Ratio Analysis: Compute the following year one ratios for this project.

Cap Rate

Cash on Cash Return $($Equity Dividend Rate$)$

EGIM

Operating Expense Ratio