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 $8$ years old

Rentable Space $200,000$ square feet

Single Tenant $10-$year lease term, net, net

Financial Information:

Other Cash Outlays:

Allowances for:

Recurring CAPEX and Improvement Allowance $$60,000$

Required:

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