Question: You have been asked to develop a pro forma statement of cash flow for Betts Distribution Center, an Internet-based order fulfillment/distribution/office/warehouse property. In addition to
You have been asked to develop a pro forma statement of cash flow for Betts Distribution Center, an Internet-based order fulfillment/distribution/office/warehouse property. In addition to recoverable operating expenses, the new tenant will be billed for pass throughs including insurance and property taxes, which will then be paid by the owner. The information given to you is listed below.
Property Information:
| BETTS DISTRIBUTION CENTER | |
|---|---|
| Age of Improvement | 8 years old |
| Rentable Space | 208,000 square feet |
| Single Tenant | 10-year lease term, net, net |
Financial Information:
| Rent | $7.00 per square feet (7-year term), flat | |
|---|---|---|
| Recoverable Expenses from Tenant | $1.90 per square feet, fixed | |
| Operating Expenses | $720,000 | |
| Property Taxes | $50,800 | |
| Insurance | $15,800 | |
Other Cash Outlays:
| Allowances for: | |
|---|---|
| Recurring CAPEX/Improve Allowance | $62,000 |
Required:
a. Develop a pro forma statement for the Betts property for a base year showing net operating income (NOI).
Required:
a. Develop a pro forma statement for the Betts property for a base year showing net operating income (NOI).
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