You have been asked to develop a pro forma statement of cash flow for Betts Distribution Center, an Internet$-$based order fulfillment, distribution, office and 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

Rentable Space

Single TenantFinancial Information:

$\backslash$table$[[$Rent$,$$$7\mathrm{.}00$ per square foot $(7-$year term$),$ flat$],[$Recoverable Expenses from Tenant,$$1\mathrm{.}80$ per square foot, fixed$],[$Operating Expenses,$$715,000],[$Property Taxes,$$50,600],[$Insurance$,$$$15,600]]$

Other Cash Outlays:

Allowances for:

Recurring CAPEX and Improvement Allowance $$61,500$

Required:

Develop a pro forma statement for the Betts property for a base year showing net operating income $($NOI$).$

$\backslash$table$[[$BETTS DISTRIBUTION CENTER,,$],[$Rent$,,],[$Add:$,,],[$Recoveries$,,],[,,],[,,],[$Effective gross income,,$],[$Less:$,,],[$Operating expenses,,$],[$Property taxes,,$],[$Insurance$,,],[,,],[$Total operating expenses,,$],[$Recurring CAPEX and Improvement allowance,,$],[$Net operating income,,$]]$