Property: Office One, New York, U$.$S$.$A$.$

Acquisition date: December $31,2023$

Purchase Price: $2024$ NOI @ $10\%$ CAP RATE

Deal Terms: $75\%$ financed with debt, $9\%$ interest$-$only, $10-$year term

$25\%$ equity ownership

Base Year $2023$: Rental Income $$1,600,000$

CAM Income $ $0$

Less: Janitorial & Cleaning $ $330,000$

Labor $ $215,250$

Utilities $ $60,000$

Management Fee $ $80,000$

Real Estate Taxes $ $80,000$

Assumptions: Vacancy Rate: $9\%$

Growth Rates: Rental Income $5\%$ Annually

Janitorial & Cleaning $3\%$ Annually

Labor $3\%$ Annually

Utilities $3\%$ Annually

Management Fee $3\%$ Annually

RE taxes Static, unchanged

Depreciable Basis: $80\%$ of cost $($calculate depreciation using straight$-$line method$)$

Owner$$s Ordinary Tax Rate: $28\%$

Solve :

A$)$ Prepare a single year analysis $($pro$-$forma$)$ for both pre$-$tax and after$-$ tax

B$)$ Provide calculations for:

$1.$ Cash$-$on$-$cash return

$2.$ After tax cash$-$on$-$cash return

$3.$ Gross Rent Multiplier

$4.$ Debt Service Coverage

$5.$ Free$-$and$-$clear return