You have been asked to develop a pro forma statement of cash flow for the coming (base) year for Summer Place Mall. The information given to you is listed below. Property Information: SUMMER PLACE MALL Age of Improvement 10 years Rentable Area (RA) 430,000 Common Area (CA) square feet square 172,000 feet Number of 40 Tenants Financial Information: Average Base Rents, Overage Rents (5 Tenants). CAM Expenses Recoverable from Tenants Average Lease Term Vacancy Operating Expenses: Maintenance/Repair Management/Administration/Leasing Expenses Property Taxes Insurance Other Other Information: Recurring CAPEX/Improve Allowance $20 per square feet 53,000 square feet @ $8.00 per square feet 53,000 square feet @ $5.00 per square feet 3.50 years Equal to 10% of total rental revenue $ 1,275,000 $233,000 $ 1,722,500 $108,000 $ 167,500 Required: a. From the above data, develop a pro forma statement for a base year showing net operating income (NOI) for Summer Place. Answer is complete but not entirely correct. SUMMER PLACE MALL Revenue: Base rents Add: Overage rents CAM recoveries Less: Vacancy Effective gross income Less: Operating expenses Maintenance/Repair Management/Administration/Leasing Property taxes Insurance Total operating expenses Recurring capital expenses Net operating income 0000 424,000 265,000 $ 8,600,000 ( 902,400 $ 8,386,600 1,275,000 233,000 1,722,500 108,000 3,338,500 167,500 3,506,000 4,880,600