You've just taken your first job for GTA Property Management and Developments, a large estate firm in Etobioe specializing in the management of rental housing complexes. GTA is planning to buy Ford Haven, a recently built, 200-unit, affordable housing development in the Rosedale area of central Toronto. Your supervisor directs you to estimate operating cash flow (NOI) for Ford Haven, by preparing an explicit pro forma statement of its cash flows over the coming year, based on the data in the project description below.

• The Ford Haven complex consists of forty studio, 81 bedroom apartments and 82 two-bedroom apartments
• All rental leases for units have a fixed 12 month term
• Beginning today, which is the first of the month, leases specify monthly rents for these 3 types of units of $550, $600, and $800. Each new lease specifies that these current monthly rents will be charged over the next six months, and then an escalator clause in each lease species rents for each type of apartment will rise to, respectively, $560, $610, and 810, where they will remain until the end of the current 12-month lease, All new tenants will, of course remain valid on unchanged terms until they end, when those tenants will also need to vacate or renew their leases on the same rems as new tenants. All of the existing tenants however, are expected to renew their leases on these new terms for an additional 12 months
• Existing managment currently has the following apartment types leased prior to today on these terms:
• ten studios were leased 3 moths ago at a monthly rent of $500;
• twenty one bedroom units were leased 2 months ago for a monthly rent of $580; and
• ten 2 bedroom units were leased 1 month ago for $805
• All other occupied units have today been leased or renewed, on the terms for new leases described above. Four studios, six one-bedroom units and six two-bedroom units are currently vacant and expected to remain so for the next 12 months

GTA has the following internal forecasts for other revenues and operating costs accruing to the complex:

• during the coming year, Ford Haven will generate revenue from laundry facilities, the awarding of an exclusive cable TV contract, parking, plus fees from new deposits on apartment and overdue rent payments. The GTA estimate for the total of all other such income over the coming year is $200,000
• GTA plans to charge for heating and AC it will provide, on a compulsory basis to its tenants, and forecasts that net revenue over the coming year from this source will be $100 per month for each occupied unit
• Total turnover and operating expenses are forecast to be $100 per month for each occupied unit during the next year.
• During the next year, GTA forecasts that $100,000 will be required for recurring, make ready expenses, such as carpet, paint, and drywall repair, while another $250,000 will be required for non-recurring items such as counter tops, parking lot repairs, and so on.
• Finally, a total of $10,000 in service fees will be paid to companies hired by GTA to provide marketing services for the complex.