You have been asked to develop a pro forma (operating statement) for a mixed-use multifamily property with 286 units:

1.  The property has 10,000 square feet (SF) of ground floor retail space. 
2. 
   
3. Due diligence reveals that monthly base rent at the subject property averages $975 per apartment unit per month. 
4. 
   
5. Expense reimbursement is estimated to be $125 per apartment unit per month. 
6. 
   
7. Space market fundamental information suggests that the retail space can be leased for $10 per square foot per year (PSF/YR) with NNN recoveries. 
8. 
   
9. Retail market vacancy averages 15%. After reviewing (space market) fundamental information, you discover that apartment vacancy in the submarket is expected to average 7.90% over the next few years. 
10. 
    
11. Last year the variable operating expenses for the subject property totaled $479,560. Annual real estate taxes are estimated at $2,500 per apartment unit. Inflation over the next year is estimated to be 3%. 
12. 
    

Develop a pro forma for the subject property.