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 Sample Annual Property Cash Flow Statement
Year 0 Year 1 Year 2 Year 3 Year 4
Revenue
Gross Potential Rent $350,000 $360,500 $371,315 $382,454
General Vacancy ($24,500) ($25,235) ($25,992) ($26,772)
Credit Loss ($3,255) ($3,353) ($3,453) ($3,557)
Concessions & Free Rent ($1,628) ($1,676) ($1,727) ($1,778)
Net Rental Revenue $320,618 $330,236 $340,143 $350,347

Other Income
Operating Expense Reimbursements $52,500 $54,075 $55,697 $57,368
Percentage Rent $8,750 $9,013 $9,283 $9,561
Storage Income $5,000 $5,150 $5,305 $5,464
Other Income $1,000 $1,030 $1,061 $1,093
Total Other Income $67,250 $69,268 $71,346 $73,486

Effective Gross Revenue $387,868 $399,504 $411,489 $423,833

Operating Expenses
Property Taxes ($40,000) ($41,000) ($42,025) ($43,076)
Insurance ($20,000) ($20,500) ($21,013) ($21,538)
Repairs & Maintenance ($15,000) ($15,375) ($15,759) ($16,153)
Property Management Fee ($50,000) ($51,250) ($52,531) ($53,845)
Other Expenses ($20,000) ($20,500) ($21,013) ($21,538)
Total Operating Expenses ($145,000) ($148,625) ($152,341) ($156,149)

Net Operating Income $242,868 $250,879 $259,148 $267,684

Capital Expenses
Tenant Improvements ($10,000) $0 $0 $0
Leasing Commissions ($8,000) $0 $0 $0
Construction Expenses ($15,000) $0 $0 $0
Capital Expense Reserves ($3,000) ($3,090) ($3,183) ($3,278)
Total Capital Expenses ($36,000) ($3,090) ($3,183) ($3,278)

Cash Flow Before Debt Service $206,868 $247,789 $255,965 $264,406

Debt Service
Principal Payments ($22,893) ($22,893) ($22,893) ($22,893)
Interest Payments ($51,583) ($51,583) ($51,583) ($51,583)
Total Debt Service ($74,477) ($74,477) ($74,477) ($74,477)

Cash Flow After Debt Service $132,391 $173,312 $181,489 $189,929

Purchase & Sale Metrics

Purchase Price ($2,000,000) $0 $0 $0 $0
Closing Costs ($20,000) $0 $0 $0 $0
Sale Price $0 $0 $0 $0
Costs of Sale $0 $0 $0 $0
Total Unlevered Cash Flow ($2,020,000) $206,868 $247,789 $255,965 $264,406

Loan Metrics
 Loan Proceeds $1,300,000 $0 $0 $0 $0
Loan Fees ($13,000) $0 $0 $0 $0
Loan Payoff $0 $0 $0 $0
Prepayment Penalty $0 $0 $0 $0
Total Levered Cash Flow ($733,000) $132,391 $173,312 $181,489 $189,929
perty Cash Flow Statement
Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

$321,874 $405,746 $417,918 $430,456 $260,932 $456,671

($22,531) ($28,402) ($29,254) ($30,132) ($18,265) ($31,967)
($2,993) ($3,773) ($3,887) ($4,003) ($2,427) ($4,247)
($1,497) ($1,887) ($1,943) ($2,002) ($1,213) ($2,124)
$294,853 $371,684 $382,834 $394,319 $239,027 $418,333

$48,281 $60,862 $62,688 $64,568 $39,140 $68,501

$8,047 $10,144 $10,448 $10,761 $6,523 $11,417
$5,628 $5,796 $5,970 $6,149 $6,334 $6,524
$1,126 $1,159 $1,194 $1,230 $1,267 $1,305
$63,081 $77,961 $80,300 $82,709 $53,264 $87,746

$357,934 $449,645 $463,134 $477,028 $292,290 $506,079

($44,153) ($45,256) ($46,388) ($47,547) ($48,736) ($49,955)

($22,076) ($22,628) ($23,194) ($23,774) ($24,368) ($24,977)
($16,557) ($16,971) ($17,395) ($17,830) ($18,276) ($18,733)
($55,191) ($56,570) ($57,985) ($59,434) ($60,920) ($62,443)
($22,076) ($22,628) ($23,194) ($23,774) ($24,368) ($24,977)
($160,053) ($164,054) ($168,156) ($172,359) ($176,668) ($181,085)

$197,881 $285,591 $294,979 $304,669 $115,622 $324,994

($50,000) $0 $0 $0 ($75,000) $0
($45,000) $0 $0 $0 ($80,000) $0
($30,000) $0 ($20,000) $0 $0 $0
($3,377) ($3,478) ($3,582) ($3,690) ($3,800) ($3,914)
($128,377) ($3,478) ($23,582) ($3,690) ($158,800) ($3,914)

$69,504 $282,113 $271,396 $300,979 ($43,178) $321,080

($22,893) ($22,893) ($22,893) ($22,893) ($22,893) ($22,893)

($51,583) ($51,583) ($51,583) ($51,583) ($51,583) ($51,583)
($74,477) ($74,477) ($74,477) ($74,477) ($74,477) ($74,477)

($4,973) $207,636 $196,920 $226,502 ($117,655) $246,603

$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $3,000,000
$0 $0 $0 $0 $0 ($75,000)
$69,504 $282,113 $271,396 $300,979 ($43,178) $3,246,080
 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 ($1,071,065)
$0 $0 $0 $0 $0 $0
($4,973) $207,636 $196,920 $226,502 ($117,655) $2,100,538
 Rent Roll
Unit Number Tenant Name Rent/Month SF Relative Reference
1 Charles Barkley $2,700 900 Copy Down
2 Anfernee Hardaway $2,900 1,200 Absolute Reference
3 Grant Hill $3,100 1,400 Copy Down
4 Karl Malone $2,500 1,475 Absolute Row
5 Reggie Miller $2,700 1,500 Copy Down
6 Hakeem Olajuwon $2,850 1,475 Absolute Column
7 Shaquille O'Neal $2,825 1,450 Copy Down
8 Gary Payton $2,760 1,425
9 Scottie Pippen $2,450 1,400
10 Mitch Richmond $2,000 1,550 Custom Format - 0 "SF"
11 David Robinson $3,000 1,650
12 John Stockton $2,700 1,400
Total $32,485 17,600 Tenant Name
Return Cell A3 With Copy Over

Return Cell D3 With Multiply by 2

Return Tenant Name

 Rent Roll
Unit Number Tenant Name Rent/Month SF Relative Reference
1 Charles Barkley $2,700 900 Copy Down
2 Anfernee Hardaway $2,900 1,200 Absolute Reference
3 Grant Hill $3,100 1,400 Copy Down
4 Karl Malone $2,500 1,475 Absolute Row
5 Reggie Miller $2,700 1,500 Copy Down
6 Hakeem Olajuwon $2,850 1,475 Absolute Column
7 Shaquille O'Neal $2,825 1,450 Copy Down
8 Gary Payton $2,760 1,425
9 Scottie Pippen $2,450 1,400
10 Mitch Richmond $2,000 1,550 Custom Format - 0 "SF"
11 David Robinson $3,000 1,650
12 John Stockton $2,700 1,400
Total $32,485 17,600 Tenant Name
Return Cell A3 With Copy Over
1 Charles Barkley
2
1 1
1
1 Charles Barkley
1
1 1
2

Return Cell D3 With Multiply by 2

900 SF 1800

Return Tenant Name

Charles Barkley
Acquisition & Operating Metrics Rent Roll
Acquisition Price 10000000 Unit Number Tenant Name Rent/Month
Closing Costs (%) 0.01 1 Charles Barkley 2700
Closing Costs ($) 100000 2 Anfernee Hardaway 2900
Net Operating Income 575000 3 Grant Hill 3100
4 Karl Malone 2500
5 Reggie Miller 2700
6 Hakeem Olajuwon 2850
7 Shaquille O'Neal 2825
8 Gary Payton 2760
9 Scottie Pippen 2450
10 Mitch Richmond 2000
11 David Robinson 3000
12 John Stockton 2700
Total 32485
SF
900
1200
1400
1475
1500
1475
1450
1425
1400
1550
1650
1400
16825
 Acquisition & Operating Metrics Rent Roll
Acquisition Price $10,000,000 Unit Number Tenant Name Rent/Month
Closing Costs (%) 1.00% 1 Charles Barkley $2,700
Closing Costs ($) $100,000 2 Anfernee Hardaway $2,900
Net Operating Income $575,000 3 Grant Hill $3,100
4 Karl Malone $2,500
5 Reggie Miller $2,700
6 Hakeem Olajuwon $2,850
7 Shaquille O'Neal $2,825
8 Gary Payton $2,760
9 Scottie Pippen $2,450
10 Mitch Richmond $2,000
11 David Robinson $3,000
12 John Stockton $2,700
Total $32,485
 SF
900
1,200
1,400
1,475
1,500
1,475
1,450
1,425
1,400
1,550
1,650
1,400
16,825
 Function Question
If Tony Gywnn's base rent is greater than $2,000 per month, return "YES" - otherwise,
IF
return "NO".

Function Question
If Tony Gywnn's base rent is greater than $2,000 per month and the lease term is
AND
greater than 12 months, return "YES" - otherwise, return "NO".
If Kenny Lofton's base rent is greater than $2,500 per month or the lease term is
OR
greater than 12 months, return "YES" - otherwise, return "NO".

Function Question
SUMIF What is the total square footage of all 1BR - 1BA units?
SUMIFS What is the total monthly rent for all 2BR - 1BA units on 15 month leases?

Function Question
COUNTIF How many 3BR - 2BA units exist at the property?
How many 1BR - 1BA units are paying over $1,840 per month and have a lease term
COUNTIFS
of 12 months or more?

Function Question
AVERAGEIF What is the average lease term in months of all 2BR - 1BA units?
AVERAGEIF What is the average base rent for 2BR - 1BA units with a lease term of greater than 11
S months?
Solution Unit ID Tenant Name Square Feet Unit Type Base Rent

1 Cal Ripken 750 1BR - 1BA $1,850

2 Roger Clemens 750 1BR - 1BA $1,830
Solution 3 Paul O'Neill 750 1BR - 1BA $1,800

4 Rafael Palmeiro 750 1BR - 1BA $1,900

5 David Wells 750 1BR - 1BA $1,925

6 John Wetteland 750 1BR - 1BA $1,900
Solution 7 Roberto Alomar 750 1BR - 1BA $1,850
8 Tom Gordon 750 1BR - 1BA $1,800
9 Ken Griffey Jr. 750 1BR - 1BA $1,750
10 Omar Vizquel 900 2BR - 1BA $2,100
Solution 11 Juan Gonzalez 900 2BR - 1BA $2,300
12 Dean Palmer 900 2BR - 1BA $2,300

13 Iván Rodríguez 900 2BR - 1BA $2,300

14 Scott Brosius 900 2BR - 1BA $2,200
Solution 15 Jim Thome 900 2BR - 1BA $2,300
16 Kenny Lofton 900 2BR - 1BA $2,225

17 Pedro Martinez 900 2BR - 1BA $2,300

18 Damion Easley 900 2BR - 1BA $2,300
19 Aaron Sele 900 2BR - 1BA $2,400
20 Manny Ramirez 900 2BR - 1BA $2,185
21 Alex Rodriguez 900 2BR - 1BA $2,300
22 Tony Gwynn 900 2BR - 1BA $2,300
23 Devon White 1000 2BR - 2BA $2,580
24 Andres Galarraga 1000 2BR - 2BA $2,700
25 Barry Bonds 1000 2BR - 2BA $2,600
26 Greg Maddux 1000 2BR - 2BA $2,650
27 Kevin Brown 1000 2BR - 2BA $2,590
28 Walt Weiss 1000 2BR - 2BA $2,575
29 Tom Glavine 1400 3BR - 2BA $2,550
30 Gary Sheffield 1400 3BR - 2BA $2,495
31 Larry Walker 1400 3BR - 2BA $2,800
32 Craig Biggio 1400 3BR - 2BA $2,700
33 Moises Alou 1400 3BR - 2BA $2,650
Lease Start Lease End Term

1/1/2021 12/31/2021 11
12/1/2019 11/30/2020 12
6/1/2019 5/31/2020 13

8/1/2019 7/31/2020 15

6/1/2019 5/31/2020 10
4/1/2019 3/31/2020 15
12/1/2020 11/30/2021 12
7/1/2019 6/30/2020 10
4/1/2019 3/31/2020 12
3/1/2019 2/29/2020 11
4/1/2020 3/31/2021 13
7/1/2019 6/30/2020 14

9/1/2020 8/31/2021 11
12/1/2019 11/30/2020 15
7/1/2020 6/30/2021 13
3/1/2019 2/29/2020 13

4/1/2020 3/31/2021 15
11/1/2020 10/31/2021 10
2/1/2020 1/31/2021 13
5/1/2020 4/30/2021 10
1/1/2021 12/31/2021 11
6/1/2019 5/31/2020 15
5/1/2019 4/30/2020 9
6/1/2019 5/31/2020 14
4/1/2019 3/31/2020 9
9/1/2020 8/31/2021 14
3/1/2020 2/28/2021 14
7/1/2019 6/30/2020 14
9/1/2019 8/31/2020 11
3/1/2020 2/28/2021 14
12/1/2019 11/30/2020 15
7/1/2019 6/30/2020 11
10/1/2020 9/30/2021 12
 Function Question
If Tony Gywnn's base rent is greater than $2,000 per month, return "YES" - otherwise,
IF
return "NO".

Function Question
If Tony Gywnn's base rent is greater than $2,000 per month and the lease term is
AND
greater than 12 months, return "YES" - otherwise, return "NO".
If Kenny Lofton's base rent is greater than $2,500 per month or the lease term is
OR
greater than 12 months, return "YES" - otherwise, return "NO".

Function Question
SUMIF What is the total square footage of all 1BR - 1BA units?
SUMIFS What is the total monthly rent for all 2BR - 1BA units on 15 month leases?

Function Question
COUNTIF How many 3BR - 2BA units exist at the property?
How many 1BR - 1BA units are paying over $1,840 per month and have a lease term
COUNTIFS
of 12 months or more?

Function Question
AVERAGEIF What is the average lease term in months of all 2BR - 1BA units?
AVERAGEIF What is the average base rent for 2BR - 1BA units with a lease term of greater than 11
S months?
Solution Unit ID Tenant Name Square Feet Unit Type Base Rent
YES
1 Cal Ripken 750 1BR - 1BA $1,850
2 Roger Clemens 750 1BR - 1BA $1,830
Solution 3 Paul O'Neill 750 1BR - 1BA $1,800
YES
4 Rafael Palmeiro 750 1BR - 1BA $1,900
YES
5 David Wells 750 1BR - 1BA $1,925
6 John Wetteland 750 1BR - 1BA $1,900
Solution 7 Roberto Alomar 750 1BR - 1BA $1,850
6,750 8 Tom Gordon 750 1BR - 1BA $1,800
$6,800 9 Ken Griffey Jr. 750 1BR - 1BA $1,750
10 Omar Vizquel 900 2BR - 1BA $2,100
Solution 11 Juan Gonzalez 900 2BR - 1BA $2,300
5 12 Dean Palmer 900 2BR - 1BA $2,300
3
13 Iván Rodríguez 900 2BR - 1BA $2,300
14 Scott Brosius 900 2BR - 1BA $2,200
Solution 15 Jim Thome 900 2BR - 1BA $2,300
13 16 Kenny Lofton 900 2BR - 1BA $2,225
$2,291
17 Pedro Martinez 900 2BR - 1BA $2,300
18 Damion Easley 900 2BR - 1BA $2,300
19 Aaron Sele 900 2BR - 1BA $2,400
20 Manny Ramirez 900 2BR - 1BA $2,185
21 Alex Rodriguez 900 2BR - 1BA $2,300
22 Tony Gwynn 900 2BR - 1BA $2,300
23 Devon White 1000 2BR - 2BA $2,580
24 Andres Galarraga 1000 2BR - 2BA $2,700
25 Barry Bonds 1000 2BR - 2BA $2,600
26 Greg Maddux 1000 2BR - 2BA $2,650
27 Kevin Brown 1000 2BR - 2BA $2,590
28 Walt Weiss 1000 2BR - 2BA $2,575
29 Tom Glavine 1400 3BR - 2BA $2,550
30 Gary Sheffield 1400 3BR - 2BA $2,495
31 Larry Walker 1400 3BR - 2BA $2,800
32 Craig Biggio 1400 3BR - 2BA $2,700
33 Moises Alou 1400 3BR - 2BA $2,650
Lease Start Lease End Term

1/1/2021 12/31/2021 11
12/1/2019 11/30/2020 12
6/1/2019 5/31/2020 13

8/1/2019 7/31/2020 15

6/1/2019 5/31/2020 10
4/1/2019 3/31/2020 15
12/1/2020 11/30/2021 12
7/1/2019 6/30/2020 10
4/1/2019 3/31/2020 12
3/1/2019 2/29/2020 11
4/1/2020 3/31/2021 13
7/1/2019 6/30/2020 14

9/1/2020 8/31/2021 11
12/1/2019 11/30/2020 15
7/1/2020 6/30/2021 13
3/1/2019 2/29/2020 13

4/1/2020 3/31/2021 15
11/1/2020 10/31/2021 10
2/1/2020 1/31/2021 13
5/1/2020 4/30/2021 10
1/1/2021 12/31/2021 11
6/1/2019 5/31/2020 15
5/1/2019 4/30/2020 9
6/1/2019 5/31/2020 14
4/1/2019 3/31/2020 9
9/1/2020 8/31/2021 14
3/1/2020 2/28/2021 14
7/1/2019 6/30/2020 14
9/1/2019 8/31/2020 11
3/1/2020 2/28/2021 14
12/1/2019 11/30/2020 15
7/1/2019 6/30/2020 11
10/1/2020 9/30/2021 12
 Function Question Solution
VLOOKUP What is the NFL's base rent in 2023?
HLOOKUP In 2026, what is the ATP's base rent?
INDEX & MATCH What is the rent for the tenant in cell A7 in the year in cell B7?

Tenant Year
PGA 2027
 Base Rent Over Time
Tenant 2021 2022 2023 2024 2025 2026 2027
NBA $30.00 $33.00 $33.00 $33.00 $33.00 $33.00 $36.30
NFL $24.00 $24.72 $25.46 $26.23 $27.01 $27.82 $28.66
MLB $0.00 $28.00 $28.00 $28.00 $28.00 $28.00 $28.00
MLS $30.00 $30.75 $31.52 $32.31 $33.11 $33.94 $34.79
PGA $20.00 $24.00 $28.00 $28.84 $29.71 $30.60 $31.51
ATP $23.00 $23.00 $23.00 $23.00 $23.00 $45.00 $45.00
2028
$36.30
$29.52
$28.00
$35.66
$32.46
$45.00
 Function Question Solution
VLOOKUP What is the NFL's base rent in 2023? $25.46
HLOOKUP In 2026, what is the ATP's base rent? $45.00
INDEX & MATCH What is the rent for the tenant in cell A7 in the year in cell B7? $31.51

Tenant Year
PGA 2027
 Base Rent Over Time
Tenant 2021 2022 2023 2024 2025 2026 2027
NBA $30.00 $33.00 $33.00 $33.00 $33.00 $33.00 $36.30
NFL $24.00 $24.72 $25.46 $26.23 $27.01 $27.82 $28.66
MLB $0.00 $28.00 $28.00 $28.00 $28.00 $28.00 $28.00
MLS $30.00 $30.75 $31.52 $32.31 $33.11 $33.94 $34.79
PGA $20.00 $24.00 $28.00 $28.84 $29.71 $30.60 $31.51
ATP $23.00 $23.00 $23.00 $23.00 $23.00 $45.00 $45.00
2028
$36.30
$29.52
$28.00
$35.66
$32.46
$45.00
 Function Question
SUMPRODUCT What is the weighted average rent at the property?

Function Question
RATE What is the compound annual growth rate (CAGR) between 2014 and 2020 for raw land?

Function Question
ROUND What is the total rent collected in 2021, rounded to the nearest $100?
ROUNDUP What is the total rent collected in 2023, rounded up to the nearest $10?
ROUNDDOWN What is the total rent collected in 2022, rounded down to the nearest $1,000?

Function Question
DATEDIF What is the total length of Tim Duncan's lease term (in months)?
YEARFRAC What is the total length of Tracy McGrady's lease term (in years)?
If tenants receive renewal notices three months before lease expiration on the final day of the
EOMONTH
month, when will Kevin Garnett receive his?
Solution # of Units Unit Type SF Rent
25 Studio 495 $1,650
14 Studio 550 $1,800
1 1BR - 1BA 700 $2,000
80 1BR - 1BA 780 $2,110
44 2BR - 1BA 890 $2,400
12 2BR - 2BA 985 $2,600
3 3BR - 2BA 1,290 $2,900

Solution Year Land Value/SF

2014 $200
2015 $204
2016 $210
2017 $222
2018 $225
2019 $224
2020 $230

Solution Year Rent/SF/Year SF Leased

2020 $20.02 48,029
2021 $21.26 56,301
2022 $22.31 75,122
2023 $23.44 95,544

Solution Tenant Name Lease Start Lease End

Steve Francis 11/1/2020 9/30/2021
Allen Iverson 1/1/2020 5/31/2021
Kobe Bryant 2/1/2020 12/31/2020
Michael Jordan 3/1/2020 5/31/2021
Kevin Garnett 4/1/2020 9/30/2021
Tracy McGrady 5/1/2020 2/28/2021
Tim Duncan 6/1/2020 3/31/2021
Jermaine O'Neal 7/1/2020 12/31/2021
Yao Ming 8/1/2020 9/30/2021
Ben Wallace 9/1/2020 6/30/2021
 Function Question
SUMPRODUCT What is the weighted average rent at the property?

Function Question
RATE What is the compound annual growth rate (CAGR) between 2014 and 2020 for raw land?

Function Question
ROUND What is the total rent collected in 2021, rounded to the nearest $100?
ROUNDUP What is the total rent collected in 2023, rounded up to the nearest $10?
ROUNDDOWN What is the total rent collected in 2022, rounded down to the nearest $1,000?

Function Question
DATEDIF What is the total length of Tim Duncan's lease term (in months)?
YEARFRAC What is the total length of Tracy McGrady's lease term (in years)?
If tenants receive renewal notices three months before lease expiration on the final day of the
EOMONTH
month, when will Kevin Garnett receive his?
 Solution # of Units Unit Type SF Rent
$2,138 25 Studio 495 $1,650
14 Studio 550 $1,800
1 1BR - 1BA 700 $2,000
80 1BR - 1BA 780 $2,110
44 2BR - 1BA 890 $2,400
12 2BR - 2BA 985 $2,600
3 3BR - 2BA 1,290 $2,900

Solution Year Land Value/SF

2.36% 2014 $200
2015 $204
2016 $210
2017 $222
2018 $225
2019 $224
2020 $230

Solution Year Rent/SF/Year SF Leased

$1,197,000 2020 $20.02 48,029
$2,239,560 2021 $21.26 56,301
$1,675,000 2022 $22.31 75,122
2023 $23.44 95,544

Solution Tenant Name Lease Start Lease End

10 Steve Francis 11/1/2020 9/30/2021
0.83 Allen Iverson 1/1/2020 5/31/2021
6/30/2021 Kobe Bryant 2/1/2020 12/31/2020
Michael Jordan 3/1/2020 5/31/2021
Kevin Garnett 4/1/2020 9/30/2021
Tracy McGrady 5/1/2020 2/28/2021
Tim Duncan 6/1/2020 3/31/2021
Jermaine O'Neal 7/1/2020 12/31/2021
Yao Ming 8/1/2020 9/30/2021
Ben Wallace 9/1/2020 6/30/2021
 Function PV

If we expect the value of a 60,000 SF plot of land to increase at 4.0% per year, and we
need the land to be worth $10,000,000 in 7 years, what is the minimum value
requirement of the land today in order for us to hit our investment target?
If market rent today for retail properties in suburban Denver is $22.00/SF and we
expect market rent to increase by 3.0% per year for the next 5 years, what will market $22.00
rent be in 5 years?
If we invest in a condominium in Miami for $800,000 today and expect the value of
the property to increase by 5.0% per year, how many years will it take for the property $800,000
to be worth $1,000,000?
If land in downtown Boston was worth $100/SF 25 years ago and that same land is
worth $300/SF today, what is the compound annual growth rate of land in downtown $100
Boston?
If we invest $500,000 of equity in a 20-unit apartment building today, we believe that
this and future apartment building investments will generate 14.0% annualized returns
on our equity invested, and we want to have $2,000,000 in equity at the end of 7 $500,000
years, how much money do we need to invest at the end of each year to make this
happen?
 FV NPER RATE PMT

$10,000,000 7 4.00% $0

5 3.00% $0

$1,000,000 5.00% $0

$300 25 $0

$2,000,000 7 14.00%
 Function PV

If we expect the value of a 60,000 SF plot of land to increase at 4.0% per year, and we $7,599,178
need the land to be worth $10,000,000 in 7 years, what is the minimum value
requirement of the land today in order for us to hit our investment target?
If market rent today for retail properties in suburban Denver is $22.00/SF and we
expect market rent to increase by 3.0% per year for the next 5 years, what will market $22.00
rent be in 5 years?
If we invest in a condominium in Miami for $800,000 today and expect the value of
the property to increase by 5.0% per year, how many years will it take for the property $800,000
to be worth $1,000,000?
If land in downtown Boston was worth $100/SF 25 years ago and that same land is
worth $300/SF today, what is the compound annual growth rate of land in downtown $100
Boston?
If we invest $500,000 of equity in a 20-unit apartment building today, we believe that
this and future apartment building investments will generate 14.0% annualized returns
on our equity invested, and we want to have $2,000,000 in equity at the end of 7 $500,000
years, how much money do we need to invest at the end of each year to make this
happen?
 FV NPER RATE PMT

$10,000,000 7 4.00% $0

$25.50 5 3.00% $0

$1,000,000 4.6 5.00% $0

$300 25 4.49% $0

$2,000,000 7 14.00% $69,789

 Gross Potential Rent (GPR)
Market Rent/SF $30.00
Net Leasable Area 5,000
Gross Potential Rent

General Vacancy
Gross Potential Rent
General Vacancy 7.0%
GPR Less Vacancy

Credit Loss
GPR Less Vacancy
Credit Loss 2.0%
Net Rental Revenue

Percentage Rent
Annual Base Rent $120,000
Percentage Rent 6.00%
Annual Sales $2,400,000
Percentage Rent
 Gross Potential Rent (GPR)
Market Rent/SF $30.00
Net Leasable Area 5,000
Gross Potential Rent $150,000

General Vacancy
Gross Potential Rent $150,000
General Vacancy ($10,500) 7.0%
GPR Less Vacancy $139,500

Credit Loss
GPR Less Vacancy $139,500
Credit Loss ($2,790) 2.0%
Net Rental Revenue $136,710

Percentage Rent
Annual Base Rent $120,000
Percentage Rent 6.00%
Annual Sales $2,400,000
Percentage Rent $24,000
 Pro Rata Share
Use the floor plan to the right to calculate the pro rata share
for CVS

Triple Net (NNN)

The total reimbursable operating expenses for the shopping center are
$100,000 for the year. How much does CVS owe
the landlord if they are on a NNN lease?

Full Service Gross (FSG)

The total reimbursable expenses for the shopping center are
$100,000 for the year. How much does Chipotle owe
the landlord if they are on a FSG lease?

Modified Gross (MG)

The total reimbursable expenses for the shopping center are
$100,000 for the year, with $45,000 for property taxes, $20,000 for insurance,
$25,000 for repairs & maintenance, and $10,000 for other miscellaneous items.
How much does the Apple store owe the landlord
if they are on a MG lease, responsible for property taxes and insurance?

Base Year Stop

Starbucks is on a base year stop lease, the base year is 2017, and base year
expenses are $92,000. If operating expenses are $115,000 in 2020,
what is their total reimbursement to the landlord in 2020?
 Pro Rata Share
Net Leasable Area 11,500
CVS SF 5,000
CVS Pro Rata Share 2,000 SF

Triple Net (NNN)

CVS Pro Rata Share
COMMON AREA HALLWAY -
Total Reimbursable Operating Expenses $100,000
CVS Operating Expense Reimbursement

Full Service Gross (FSG)

Chipotle Pro Rata Share
Total Reimbursable Operating Expenses $100,000 5,000 SF
Chipotle Operating Expense Reimbursement

Modified Gross (MG)

Apple Store Pro Rata Share
Total Reimbursable Operating Expenses $65,000
Apple Store Operating Expense Reimbursement

Base Year Stop (BYS)

Base Year Expense $92,000
2020 Expense $115,000
Increase Over Base Year
Starbucks Pro Rata Share
Total Reimbursement to Landlord
 3,000 SF

OMMON AREA HALLWAY - 2,500 SF

SF 1,500 SF
 Pro Rata Share
Use the floor plan to the right to calculate the pro rata share
for CVS

Triple Net (NNN)

The total reimbursable operating expenses for the shopping center are
$100,000 for the year. How much does CVS owe
the landlord if they are on a NNN lease?

Full Service Gross (FSG)

The total reimbursable expenses for the shopping center are
$100,000 for the year. How much does Chipotle owe
the landlord if they are on a FSG lease?

Modified Gross (MG)

The total reimbursable expenses for the shopping center are
$100,000 for the year, with $45,000 for property taxes, $20,000 for insurance,
$25,000 for repairs & maintenance, and $10,000 for other miscellaneous items.
How much does the Apple store owe the landlord
if they are on a MG lease, responsible for property taxes and insurance?

Base Year Stop

Starbucks is on a base year stop lease, the base year is 2017, and base year
expenses are $92,000. If operating expenses are $115,000 in 2020,
what is their total reimbursement to the landlord in 2020?
 Pro Rata Share
Net Leasable Area 11,500
CVS SF 5,000
CVS Pro Rata Share 43.48% 2,000 SF

Triple Net (NNN)

CVS Pro Rata Share 43.48%
COMMON AREA HALLWAY -
Total Reimbursable Operating Expenses $100,000
CVS Operating Expense Reimbursement $43,478

Full Service Gross (FSG)

Chipotle Pro Rata Share 13.04%
Total Reimbursable Operating Expenses $100,000 5,000 SF
Chipotle Operating Expense Reimbursement $0

Modified Gross (MG)

Apple Store Pro Rata Share 26.09%
Total Reimbursable Operating Expenses $65,000
Apple Store Operating Expense Reimbursement $16,957

Base Year Stop (BYS)

Base Year Expense $92,000
2020 Expense $115,000
Increase Over Base Year $23,000
Starbucks Pro Rata Share 17.39%
Total Reimbursement to Landlord $4,000
 3,000 SF

OMMON AREA HALLWAY - 2,500 SF

SF 1,500 SF
 Expense Ratio Expense Ratio
If a property has gross potential rental income of $735,000, Gross Potential Rent $735,000
vacancy loss of $21,000, total other income of $85,000, Vacancy Loss ($21,000)
and operating expenses of $290,000, what is the Total Other Income $85,000
operating expense ratio at the property? Operating Expenses ($290,000)
Expense Ratio

Break Even Ratio Break Even Ratio

If a property has gross potential rent of $735,000, total Gross Potential Rent $735,000
other income of $85,000, total operating expenses Other Income $85,000
of $290,000, and total debt service of $230,000, Total Operating Expenses ($290,000)
what is the break even occupancy ratio? Total Debt Service ($230,000)
Break Even Ratio

Renewal Probability Modeling Renewal New Weighted Avg.

You currently own a property with a 2,000 SF suite that is Probability 70% 30%
occupied by a tenant whose lease is expiring at the end of Base Rent/SF/Year $35.00 $40.00
this year. When the in-place lease expires, you believe there is Leasing Commission 4.00% 6.00%
a 70% chance they will renew at $35.00/SF for another 5 TI Allowance/SF $0 $25
years, and you will owe a leasing commission of 4.0% to the Downtime 0 Months 6 Months
broker. If they do not renew, you expect the space to sit
vacant for 6 months, and a new tenant to pay $40.00/SF with no Year 1 Year 2 Year 3 Year 4 Year 5
increases for a 5-year term, for which you would pay a leasing Base Rent
commission of 6.0% to the broker and a TI allowance of Downtime
$25/SF. Using renewal probability modeling, what is the LC
total 5-year cash flow projection for the 60 months after TI
the in-place lease expires? Total Tenant Cash Flow
 Expense Ratio Expense Ratio
If a property has gross potential rental income of $735,000, Gross Potential Rent $735,000
vacancy loss of $21,000, total other income of $85,000, Vacancy Loss ($21,000)
and operating expenses of $290,000, what is the Total Other Income $85,000
operating expense ratio at the property? Operating Expenses ($290,000)
Expense Ratio 36.30%

Break Even Ratio Break Even Ratio

If a property has gross potential rent of $735,000, total Gross Potential Rent $735,000
other income of $85,000, total operating expenses Other Income $85,000
of $290,000, and total debt service of $230,000, Total Operating Expenses ($290,000)
what is the break even occupancy ratio? Total Debt Service ($230,000)
Break Even Ratio 63.41%

Renewal Probability Modeling Renewal New Weighted Avg.

You currently own a property with a 2,000 SF suite that is Probability 70% 30%
occupied by a tenant whose lease is expiring at the end of Base Rent/SF/Year $35.00 $40.00 $36.50
this year. When the in-place lease expires, you believe there is Leasing Commission 4.00% 6.00% 4.60%
a 70% chance they will renew at $35.00/SF for another 5 TI Allowance/SF $0 $25 $7.50
years, and you will owe a leasing commission of 4.0% to the Downtime 0 Months 6 Months 1.8 Months
broker. If they do not renew, you expect the space to sit
vacant for 6 months, and a new tenant to pay $40.00/SF with no Year 1 Year 2 Year 3 Year 4 Year 5
increases for a 5-year term, for which you would pay a leasing Base Rent $73,000 $73,000 $73,000 $73,000 $73,000
commission of 6.0% to the broker and a TI allowance of Downtime ($10,950)
$25/SF. Using renewal probability modeling, what is the LC ($16,790)
total 5-year cash flow projection for the 60 months after TI ($15,000)
the in-place lease expires? Total Tenant Cash Flow $30,260 $73,000 $73,000 $73,000 $73,000
 Leasing Commissions Lease Metrics Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9
Your leasing broker helps you sign a 10-year lease with a local ice cream shop in your shopping Square Footage 3,000 Base Rent $78,000 $80,340 $82,750 $85,233 $87,790 $90,423 $93,136 $95,930 $98,808
center. The lease was signed for $26.00/SF/Year for 3,000 square feet with annual 3.0% base Base Rent/SF/Year $26.00 Free Rent ($39,000) $0 $0 $0 $0 $0 $0 $0 $0
rent increases, and six months of base rent abatement. If your leasing agreement Annual Rent Increases 3.00% Net Tenant Rental Revenue $39,000 $80,340 $82,750 $85,233 $87,790 $90,424 $93,136 $95,930 $98,808
called for a payment of 6.0% of the net contractual base rent for years 1-5 and 3.0% of the Free Rent 6 Months
net contractual base rent for years 6-10, what is the total leasing commission owed to the broker? Commissions - Years 1-5 6.00%
Commissions - Years 6-10 3.00%
Total Leasing Commission

Tenant Improvement (TI) Allowance TI Allowance

In order for the ice cream shop to agree to all other lease terms, the tenant is requesting an TI Allowance/SF $20.00
improvement allowance in order to absorb the cost of building out their store. The total Square Feet 3,000
TI allowance per square foot requested is $20. In this scenario, what is the total TI allowance Total TI Allowance
owed by the landlord?
 Year 10
$101,772
$0
$101,773
 Leasing Commissions Lease Metrics Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9
Your leasing broker helps you sign a 10-year lease with a local ice cream shop in your shopping Square Footage 3,000 Base Rent $78,000 $80,340 $82,750 $85,233 $87,790 $90,423 $93,136 $95,930 $98,808
center. The lease was signed for $26.00/SF/Year for 3,000 square feet with annual 3.0% base Base Rent/SF/Year $26.00 Free Rent ($39,000) $0 $0 $0 $0 $0 $0 $0 $0
rent increases, and six months of base rent abatement. If your leasing agreement Annual Rent Increases 3.00% Net Tenant Rental Revenue $39,000 $80,340 $82,750 $85,233 $87,790 $90,424 $93,136 $95,930 $98,808
called for a payment of 6.0% of the net contractual base rent for years 1-5 and 3.0% of the Free Rent 6 Months
net contractual base rent for years 6-10, what is the total leasing commission owed to the broker? Commissions - Years 1-5 6.00%
Commissions - Years 6-10 3.00%
Total Leasing Commission $36,909

Tenant Improvement (TI) Allowance TI Allowance

In order for the ice cream shop to agree to all other lease terms, the tenant is requesting an TI Allowance/SF $20.00
improvement allowance in order to absorb the cost of building out their store. The total Square Feet 3,000
TI allowance per square foot requested is $20. In this scenario, what is the total TI allowance Total TI Allowance $60,000
owed by the landlord?
 Year 10
$101,772
$0
$101,773
 Loan Terms Function
Loan Amount $7,000,000 PMT
Amortization 30 Years IPMT
Interest Rate 4.35% PPMT
Loan Term 10 Years CUMIPMT
CUMPRINC
 Question Solution
What is the total loan payment each month?
What will the interest payment be in month 72 of the loan term?
What will the principal payment be in month 42 of the loan term?
What will the total interest payments be in the first three years of the loan term?
What will the total remaining loan balance be at the end of the loan term?
 Loan Terms Function
Loan Amount $7,000,000 PMT
Amortization 30 Years IPMT
Interest Rate 4.35% PPMT
Loan Term 10 Years CUMIPMT
CUMPRINC
 Question Solution
What is the total loan payment each month? $34,847
What will the interest payment be in month 72 of the loan term? $22,600
What will the principal payment be in month 42 of the loan term? $10,987
What will the total interest payments be in the first three years of the loan term? $890,953
What will the total remaining loan balance be at the end of the loan term? $5,579,230
 Loan Terms Month Beginning Balance Total Payment
Loan Amount $5,000,000 1
Amortization 30 Years 2
Interest Only Period 0 Months 3
Rate 4.25% 4
Term 10 Years 5
Balloon Payment 6
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Principal Payment Interest Payment Ending Balance
 Loan Terms Month Beginning Balance Total Payment
Loan Amount $5,000,000 1 $5,000,000 $24,597
Amortization 30 Years 2 $4,993,111 $24,597
Interest Only Period 0 Months 3 $4,986,198 $24,597
Rate 4.25% 4 $4,979,261 $24,597
Term 10 Years 5 $4,972,299 $24,597
Balloon Payment $3,972,162 6 $4,965,312 $24,597
7 $4,958,300 $24,597
8 $4,951,264 $24,597
9 $4,944,203 $24,597
10 $4,937,116 $24,597
11 $4,930,005 $24,597
12 $4,922,869 $24,597
13 $4,915,707 $24,597
14 $4,908,519 $24,597
15 $4,901,307 $24,597
16 $4,894,069 $24,597
17 $4,886,805 $24,597
18 $4,879,515 $24,597
19 $4,872,200 $24,597
20 $4,864,859 $24,597
21 $4,857,491 $24,597
22 $4,850,098 $24,597
23 $4,842,678 $24,597
24 $4,835,232 $24,597
25 $4,827,760 $24,597
26 $4,820,262 $24,597
27 $4,812,736 $24,597
28 $4,805,184 $24,597
29 $4,797,606 $24,597
30 $4,790,000 $24,597
31 $4,782,368 $24,597
32 $4,774,709 $24,597
33 $4,767,022 $24,597
34 $4,759,308 $24,597
35 $4,751,567 $24,597
36 $4,743,799 $24,597
37 $4,736,002 $24,597
38 $4,728,179 $24,597
39 $4,720,327 $24,597
40 $4,712,448 $24,597
41 $4,704,541 $24,597
42 $4,696,606 $24,597
43 $4,688,643 $24,597
44 $4,680,652 $24,597
45 $4,672,632 $24,597
46 $4,664,584 $24,597
47 $4,656,507 $24,597
48 $4,648,402 $24,597
49 $4,640,268 $24,597
50 $4,632,105 $24,597
51 $4,623,914 $24,597
 52 $4,615,693 $24,597
53 $4,607,443 $24,597
54 $4,599,164 $24,597
55 $4,590,856 $24,597
56 $4,582,518 $24,597
57 $4,574,151 $24,597
58 $4,565,754 $24,597
59 $4,557,328 $24,597
60 $4,548,871 $24,597
61 $4,540,385 $24,597
62 $4,531,868 $24,597
63 $4,523,322 $24,597
64 $4,514,745 $24,597
65 $4,506,138 $24,597
66 $4,497,500 $24,597
67 $4,488,831 $24,597
68 $4,480,132 $24,597
69 $4,471,403 $24,597
70 $4,462,642 $24,597
71 $4,453,850 $24,597
72 $4,445,027 $24,597
73 $4,436,173 $24,597
74 $4,427,287 $24,597
75 $4,418,370 $24,597
76 $4,409,422 $24,597
77 $4,400,441 $24,597
78 $4,391,429 $24,597
79 $4,382,385 $24,597
80 $4,373,309 $24,597
81 $4,364,201 $24,597
82 $4,355,061 $24,597
83 $4,345,888 $24,597
84 $4,336,682 $24,597
85 $4,327,445 $24,597
86 $4,318,174 $24,597
87 $4,308,870 $24,597
88 $4,299,534 $24,597
89 $4,290,165 $24,597
90 $4,280,762 $24,597
91 $4,271,326 $24,597
92 $4,261,857 $24,597
93 $4,252,354 $24,597
94 $4,242,817 $24,597
95 $4,233,247 $24,597
96 $4,223,642 $24,597
97 $4,214,004 $24,597
98 $4,204,332 $24,597
99 $4,194,625 $24,597
100 $4,184,884 $24,597
101 $4,175,109 $24,597
102 $4,165,298 $24,597
103 $4,155,454 $24,597
104 $4,145,574 $24,597
105 $4,135,659 $24,597
106 $4,125,709 $24,597
107 $4,115,724 $24,597
108 $4,105,704 $24,597
109 $4,095,648 $24,597
110 $4,085,556 $24,597
111 $4,075,429 $24,597
112 $4,065,266 $24,597
113 $4,055,066 $24,597
114 $4,044,831 $24,597
115 $4,034,560 $24,597
116 $4,024,252 $24,597
117 $4,013,907 $24,597
118 $4,003,526 $24,597
119 $3,993,108 $24,597
120 $3,982,653 $24,597
121 $0 $0
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246 $0 $0
247 $0 $0
248 $0 $0
249 $0 $0
250 $0 $0
251 $0 $0
252 $0 $0
253 $0 $0
254 $0 $0
255 $0 $0
256 $0 $0
257 $0 $0
258 $0 $0
259 $0 $0
260 $0 $0
261 $0 $0
262 $0 $0
263 $0 $0
264 $0 $0
265 $0 $0
266 $0 $0
267 $0 $0
268 $0 $0
269 $0 $0
270 $0 $0
271 $0 $0
272 $0 $0
273 $0 $0
274 $0 $0
275 $0 $0
276 $0 $0
277 $0 $0
278 $0 $0
279 $0 $0
280 $0 $0
281 $0 $0
282 $0 $0
283 $0 $0
284 $0 $0
285 $0 $0
286 $0 $0
287 $0 $0
288 $0 $0
289 $0 $0
290 $0 $0
291 $0 $0
292 $0 $0
293 $0 $0
294 $0 $0
295 $0 $0
296 $0 $0
297 $0 $0
298 $0 $0
299 $0 $0
300 $0 $0
301 $0 $0
302 $0 $0
303 $0 $0
304 $0 $0
305 $0 $0
306 $0 $0
307 $0 $0
308 $0 $0
309 $0 $0
310 $0 $0
311 $0 $0
312 $0 $0
313 $0 $0
314 $0 $0
315 $0 $0
316 $0 $0
317 $0 $0
318 $0 $0
319 $0 $0
320 $0 $0
321 $0 $0
322 $0 $0
323 $0 $0
324 $0 $0
325 $0 $0
326 $0 $0
327 $0 $0
328 $0 $0
329 $0 $0
330 $0 $0
331 $0 $0
332 $0 $0
333 $0 $0
334 $0 $0
335 $0 $0
336 $0 $0
337 $0 $0
338 $0 $0
339 $0 $0
340 $0 $0
341 $0 $0
342 $0 $0
343 $0 $0
344 $0 $0
345 $0 $0
346 $0 $0
347 $0 $0
348 $0 $0
349 $0 $0
350 $0 $0
351 $0 $0
352 $0 $0
353 $0 $0
354 $0 $0
355 $0 $0
356 $0 $0
357 $0 $0
358 $0 $0
359 $0 $0
360 $0 $0
Principal Payment Interest Payment Ending Balance
$6,889 $17,708 $4,993,111
$6,913 $17,684 $4,986,198
$6,938 $17,659 $4,979,261
$6,962 $17,635 $4,972,299
$6,987 $17,610 $4,965,312
$7,012 $17,585 $4,958,300
$7,036 $17,561 $4,951,264
$7,061 $17,536 $4,944,203
$7,086 $17,511 $4,937,116
$7,111 $17,486 $4,930,005
$7,137 $17,460 $4,922,869
$7,162 $17,435 $4,915,707
$7,187 $17,410 $4,908,519
$7,213 $17,384 $4,901,307
$7,238 $17,359 $4,894,069
$7,264 $17,333 $4,886,805
$7,290 $17,307 $4,879,515
$7,315 $17,282 $4,872,200
$7,341 $17,256 $4,864,859
$7,367 $17,230 $4,857,491
$7,393 $17,204 $4,850,098
$7,420 $17,177 $4,842,678
$7,446 $17,151 $4,835,232
$7,472 $17,125 $4,827,760
$7,499 $17,098 $4,820,262
$7,525 $17,072 $4,812,736
$7,552 $17,045 $4,805,184
$7,579 $17,018 $4,797,606
$7,605 $16,992 $4,790,000
$7,632 $16,965 $4,782,368
$7,659 $16,938 $4,774,709
$7,687 $16,910 $4,767,022
$7,714 $16,883 $4,759,308
$7,741 $16,856 $4,751,567
$7,769 $16,828 $4,743,799
$7,796 $16,801 $4,736,002
$7,824 $16,773 $4,728,179
$7,851 $16,746 $4,720,327
$7,879 $16,718 $4,712,448
$7,907 $16,690 $4,704,541
$7,935 $16,662 $4,696,606
$7,963 $16,634 $4,688,643
$7,991 $16,606 $4,680,652
$8,020 $16,577 $4,672,632
$8,048 $16,549 $4,664,584
$8,077 $16,520 $4,656,507
$8,105 $16,492 $4,648,402
$8,134 $16,463 $4,640,268
$8,163 $16,434 $4,632,105
$8,192 $16,405 $4,623,914
$8,221 $16,376 $4,615,693
$8,250 $16,347 $4,607,443
$8,279 $16,318 $4,599,164
$8,308 $16,289 $4,590,856
$8,338 $16,259 $4,582,518
$8,367 $16,230 $4,574,151
$8,397 $16,200 $4,565,754
$8,427 $16,170 $4,557,328
$8,456 $16,141 $4,548,871
$8,486 $16,111 $4,540,385
$8,516 $16,081 $4,531,868
$8,547 $16,050 $4,523,322
$8,577 $16,020 $4,514,745
$8,607 $15,990 $4,506,138
$8,638 $15,959 $4,497,500
$8,668 $15,929 $4,488,831
$8,699 $15,898 $4,480,132
$8,730 $15,867 $4,471,403
$8,761 $15,836 $4,462,642
$8,792 $15,805 $4,453,850
$8,823 $15,774 $4,445,027
$8,854 $15,743 $4,436,173
$8,886 $15,711 $4,427,287
$8,917 $15,680 $4,418,370
$8,949 $15,648 $4,409,422
$8,980 $15,617 $4,400,441
$9,012 $15,585 $4,391,429
$9,044 $15,553 $4,382,385
$9,076 $15,521 $4,373,309
$9,108 $15,489 $4,364,201
$9,140 $15,457 $4,355,061
$9,173 $15,424 $4,345,888
$9,205 $15,392 $4,336,682
$9,238 $15,359 $4,327,445
$9,271 $15,326 $4,318,174
$9,303 $15,294 $4,308,870
$9,336 $15,261 $4,299,534
$9,369 $15,228 $4,290,165
$9,403 $15,194 $4,280,762
$9,436 $15,161 $4,271,326
$9,469 $15,128 $4,261,857
$9,503 $15,094 $4,252,354
$9,537 $15,060 $4,242,817
$9,570 $15,027 $4,233,247
$9,604 $14,993 $4,223,642
$9,638 $14,959 $4,214,004
$9,672 $14,925 $4,204,332
$9,707 $14,890 $4,194,625
$9,741 $14,856 $4,184,884
$9,776 $14,821 $4,175,109
$9,810 $14,787 $4,165,298
$9,845 $14,752 $4,155,454
$9,880 $14,717 $4,145,574
 $9,915 $14,682 $4,135,659
$9,950 $14,647 $4,125,709
$9,985 $14,612 $4,115,724
$10,020 $14,577 $4,105,704
$10,056 $14,541 $4,095,648
$10,092 $14,505 $4,085,556
$10,127 $14,470 $4,075,429
$10,163 $14,434 $4,065,266
$10,199 $14,398 $4,055,066
$10,235 $14,362 $4,044,831
$10,272 $14,325 $4,034,560
$10,308 $14,289 $4,024,252
$10,344 $14,253 $4,013,907
$10,381 $14,216 $4,003,526
$10,418 $14,179 $3,993,108
$10,455 $14,142 $3,982,653
$10,492 $14,105 $3,972,162
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
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$0 $0 $0
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$0 $0 $0
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$0 $0 $0
$0 $0 $0
$0 $0 $0
 LTV
Property Value $5,000,000
Loan Amount $3,000,000
LTV

LTC
Purchase Price $5,000,000
Closing Costs $75,000
Loan Fees $50,000
Construction Costs $250,000
Loan Amount $3,500,000
LTC

DSCR
Net Operating Income $300,000
Debt Service $210,000
DSCR

Debt Yield
Annual Net Operating Income $300,000
Loan Amount $4,000,000
Debt Yield

Loan Constant
Loan Amount $4,000,000
Interest Rate 3.90%
Amortization 30 Years
Annual Loan Payment $226,401
Loan Constant
 LTV
Property Value $5,000,000
Loan Amount $3,000,000
LTV 60.00%

LTC
Purchase Price $5,000,000
Closing Costs $75,000
Loan Fees $50,000
Construction Costs $250,000
Loan Amount $3,500,000
LTC 65.12%

DSCR
Net Operating Income $300,000
Debt Service $210,000
DSCR 1.43x

Debt Yield
Annual Net Operating Income $300,000
Loan Amount $4,000,000
Debt Yield 7.50%

Loan Constant
Loan Amount $4,000,000
Interest Rate 3.90%
Amortization 30 Years
Annual Loan Payment $226,401
Loan Constant 5.66%
 Deal Metrics Loan Constraints
Purchase Price $10,000,000 LTV 70%
Appraised Value $10,000,000 LTC 65%
Closing Costs $100,000 DSCR 1.25x
Total Capital Costs $1,500,000 Debt Yield 7.50%
Interest Rate 3.90%
Amortization 30 Years Loan Sizing
Year 1 NOI $575,000 Size Loan By
Loan Amount
Maximum Loan Amount
LTV
LTC
DSCR
Debt Yield
 Deal Metrics Loan Constraints
Purchase Price $10,000,000 LTV 70%
Appraised Value $10,000,000 LTC 65%
Closing Costs $100,000 DSCR 1.25x
Total Capital Costs $1,500,000 Debt Yield 7.50%
Interest Rate 3.90%
Amortization 30 Years Loan Sizing
Year 1 NOI $575,000 Size Loan By LTV
Loan Amount $7,000,000
Maximum Loan Amount
LTV $7,000,000
LTC $7,540,000
DSCR $8,127,182
Debt Yield $7,666,667
 Cap Rate Solution
Purchase Price $3,000,000
Net Operating Income $170,000
Cap Rate

NOI Solution
Purchase Price $7,500,000
Cap Rate 5.15%
Net Operating Income

Purchase Price Solution

Net Operating Income $275,000
Cap Rate 4.80%
Purchase Price

Exit Value Solution

Year 10 Projected NOI $300,000
NOI Growth/Year 3.00%
Exit Cap Rate @ End of Year 10 5.00%
Sale Price
 Cap Rate Solution
Purchase Price $3,000,000
Net Operating Income $170,000
Cap Rate 5.67%

NOI Solution
Purchase Price $7,500,000
Cap Rate 5.15%
Net Operating Income $386,250

Purchase Price Solution

Net Operating Income $275,000
Cap Rate 4.80%
Purchase Price $5,729,167

Exit Value Solution

Year 10 Projected NOI $300,000
NOI Growth/Year 3.00%
Exit Cap Rate @ End of Year 10 5.00%
Sale Price $6,180,000
 Operating & Sale Assumptions 5-Year Hold Period Analysis
Purchase Price $5,000,000 Acquisition Year 1 Year 2 Year 3
Closing Costs (as % of Purchase Price) 1.00% NOI $0 $300,000 $312,000 $324,480
Going-In Cap Rate 6.00% Capital Expenses $0 ($5,000) ($5,150) ($5,305)
Year 1 Capital Expenses $5,000 Cash Flow Before Debt Service $0 $295,000 $306,850 $319,176
Assumed Annual NOI Growth 4.00% Principal Payments $0 ($52,831) ($54,984) ($57,224)
Assumed Capital Expense Growth 3.00% Interest Payments $0 ($119,038) ($116,886) ($114,646)
Exit Cap Rate 6.50% Cash Flow After Debt Service $0 $123,130 $134,980 $147,306
Costs of Sale (as % of Sale Price) 2.50% Purchase Price ($5,000,000) $0 $0 $0
Closing Costs ($50,000) $0 $0 $0
Debt Assumptions Sale Proceeds $0 $0 $0 $0
Loan Amount $3,000,000 Costs of Sale $0 $0 $0 $0
Loan To Value (LTV) 60% Total Unlevered Cash Flow ($5,050,000) $295,000 $306,850 $319,176
Interest Rate 4.00% Loan Proceeds $3,000,000 $0 $0 $0
Amortization 30 Years Loan Payoff $0 $0 $0 $0
Total Levered Cash Flow ($2,050,000) $123,130 $134,980 $147,306
Return Metrics
Discount Rate 7.00% Cash-on-Cash Return Calculations
Unlevered Net Present Value (NPV) Unlevered Cash-on-Cash
Levered Net Present Value (NPV) Levered Cash-on-Cash
Unlevered Internal Rate of Return (IRR) Positive/Negative Leverage
Levered Internal Rate of Return (IRR)
Unlevered Equity Multiple
Levered Equity Multiple
Unlevered Average Cash-on-Cash
Levered Average Cash-on-Cash
is
Year 4 Year 5
$337,459 $350,958
($5,464) ($5,628)
$331,996 $345,330
($59,555) ($61,981)
($112,315) ($109,888)
$160,126 $173,461
$0 $0
$0 $0
$0 $5,615,321
$0 ($140,383)
$331,996 $5,820,268
$0 $0
$0 ($2,713,425)
$160,126 $2,934,973

tions
 Operating & Sale Assumptions 5-Year Hold Period Analysis
Purchase Price $5,000,000 Acquisition Year 1 Year 2 Year 3
Closing Costs (as % of Purchase Price) 1.00% NOI $0 $300,000 $312,000 $324,480
Going-In Cap Rate 6.00% Capital Expenses $0 ($5,000) ($5,150) ($5,305)
Year 1 Capital Expenses $5,000 Cash Flow Before Debt Service $0 $295,000 $306,850 $319,176
Assumed Annual NOI Growth 4.00% Principal Payments $0 ($52,831) ($54,984) ($57,224)
Assumed Capital Expense Growth 3.00% Interest Payments $0 ($119,038) ($116,886) ($114,646)
Exit Cap Rate 6.50% Cash Flow After Debt Service $0 $123,130 $134,980 $147,306
Costs of Sale (as % of Sale Price) 2.50% Purchase Price ($5,000,000) $0 $0 $0
Closing Costs ($50,000) $0 $0 $0
Debt Assumptions Sale Proceeds $0 $0 $0 $0
Loan Amount $3,000,000 Costs of Sale $0 $0 $0 $0
Loan To Value (LTV) 60% Total Unlevered Cash Flow ($5,050,000) $295,000 $306,850 $319,176
Interest Rate 4.00% Loan Proceeds $3,000,000 $0 $0 $0
Amortization 30 Years Loan Payoff $0 $0 $0 $0
Total Levered Cash Flow ($2,050,000) $123,130 $134,980 $147,306
Return Metrics
Discount Rate 7.00% Cash-on-Cash Return Calculations
Unlevered Net Present Value (NPV) $157,306 Unlevered Cash-on-Cash 5.84% 6.08% 6.32%
Levered Net Present Value (NPV) $517,973 Levered Cash-on-Cash 6.01% 6.58% 7.19%
Unlevered Internal Rate of Return (IRR) 7.74% Positive/Negative Leverage POSITIVE POSITIVE POSITIVE
Levered Internal Rate of Return (IRR) 12.48%
Unlevered Equity Multiple 1.40x
Levered Equity Multiple 1.71x
Unlevered Average Cash-on-Cash 6.33%
Levered Average Cash-on-Cash 7.21%
is
Year 4 Year 5
$337,459 $350,958
($5,464) ($5,628)
$331,996 $345,330
($59,555) ($61,981)
($112,315) ($109,888)
$160,126 $173,461
$0 $0
$0 $0
$0 $5,615,321
$0 ($140,383)
$331,996 $5,820,268
$0 $0
$0 ($2,713,425)
$160,126 $2,934,973

tions
6.57% 6.84%
7.81% 8.46%
POSITIVE POSITIVE
 Operating & Sale Assumptions 5-Year Hold Period Analysis
Purchase Price $5,000,000 12/31/2021 6/30/2022 12/31/2023
Closing Costs (as % of Purchase Price) 1.00% Acquisition Year 1 Year 2
Going-In Cap Rate 6.00% NOI $0 $300,000 $312,000
Year 1 Capital Expenses $5,000 Capital Expenses $0 ($5,000) ($5,150)
Assumed Annual NOI Growth 4.00% Cash Flow Before Debt Service $0 $295,000 $306,850
Assumed Capital Expense Growth 3.00% Principal Payments $0 ($52,831) ($54,984)
Exit Cap Rate 6.50% Interest Payments $0 ($119,038) ($116,886)
Costs of Sale (as % of Sale Price) 2.50% Cash Flow After Debt Service $0 $123,130 $134,980
Purchase Price ($5,000,000) $0 $0
Debt Assumptions Closing Costs ($50,000) $0 $0
Loan Amount $3,000,000 Sale Proceeds $0 $0 $0
Loan To Value (LTV) 60% Costs of Sale $0 $0 $0
Interest Rate 4.00% Total Unlevered Cash Flow ($5,050,000) $295,000 $306,850
Amortization 30 Years Loan Proceeds $3,000,000 $0 $0
Loan Payoff $0 $0 $0
Return Metrics Total Levered Cash Flow ($2,050,000) $123,130 $134,980
Discount Rate 7.00%
Levered Net Present Value (NPV)
Levered Internal Rate of Return (IRR)
Levered Net Present Value (XNPV)
Levered Internal Rate of Return (XIRR)
riod Analysis
9/30/2024 3/31/2025 9/30/2026
Year 3 Year 4 Year 5
$324,480 $337,459 $350,958
($5,305) ($5,464) ($5,628)
$319,176 $331,996 $345,330
($57,224) ($59,555) ($61,981)
($114,646) ($112,315) ($109,888)
$147,306 $160,126 $173,461
$0 $0 $0
$0 $0 $0
$0 $0 $5,615,321
$0 $0 ($140,383)
$319,176 $331,996 $5,820,268
$0 $0 $0
$0 $0 ($2,713,425)
$147,306 $160,126 $2,934,973
 Operating & Sale Assumptions 5-Year Hold Period Analysis
Purchase Price $5,000,000 12/31/2021 6/30/2022 12/31/2023
Closing Costs (as % of Purchase Price) 1.00% Acquisition Year 1 Year 2
Going-In Cap Rate 6.00% NOI $0 $300,000 $312,000
Year 1 Capital Expenses $5,000 Capital Expenses $0 ($5,000) ($5,150)
Assumed Annual NOI Growth 4.00% Cash Flow Before Debt Service $0 $295,000 $306,850
Assumed Capital Expense Growth 3.00% Principal Payments $0 ($52,831) ($54,984)
Exit Cap Rate 6.50% Interest Payments $0 ($119,038) ($116,886)
Costs of Sale (as % of Sale Price) 2.50% Cash Flow After Debt Service $0 $123,130 $134,980
Purchase Price ($5,000,000) $0 $0
Debt Assumptions Closing Costs ($50,000) $0 $0
Loan Amount $3,000,000 Sale Proceeds $0 $0 $0
Loan To Value (LTV) 60% Costs of Sale $0 $0 $0
Interest Rate 4.00% Total Unlevered Cash Flow ($5,050,000) $295,000 $306,850
Amortization 30 Years Loan Proceeds $3,000,000 $0 $0
Loan Payoff $0 $0 $0
Return Metrics Total Levered Cash Flow ($2,050,000) $123,130 $134,980
Discount Rate 7.00%
Levered Net Present Value (NPV) $517,973
Levered Internal Rate of Return (IRR) 12.48%
Levered Net Present Value (XNPV) $565,974
Levered Internal Rate of Return (XIRR) 13.35%
riod Analysis
9/30/2024 3/31/2025 9/30/2026
Year 3 Year 4 Year 5
$324,480 $337,459 $350,958
($5,305) ($5,464) ($5,628)
$319,176 $331,996 $345,330
($57,224) ($59,555) ($61,981)
($114,646) ($112,315) ($109,888)
$147,306 $160,126 $173,461
$0 $0 $0
$0 $0 $0
$0 $0 $5,615,321
$0 $0 ($140,383)
$319,176 $331,996 $5,820,268
$0 $0 $0
$0 $0 ($2,713,425)
$147,306 $160,126 $2,934,973
 Operating & Sale Assumptions 5-Year Hold Period Analysis
Purchase Price $5,000,000 Month Ending
Closing Costs (as % of Purchase Price) 1.00% Month
Going-In Cap Rate 6.00% Year
Year 1 Capital Expenses $5,000 NOI
Assumed Annual NOI Growth 4.00% Capital Expenses
Assumed NOI Growth Frequency Annually Cash Flow Before Debt Service
Assumed Capital Expense Growth 3.00% Principal Payments
Capital Expense Growth Frequency Annually Interest Payments
Acquisition Date 12/31/2021 Cash Flow After Debt Service
Sale Month Month 60 Purchase Price
Exit Cap Rate 6.50% Closing Costs
Costs of Sale (as % of Sale Price) 2.50% Sale Proceeds
Costs of Sale
Debt Assumptions Total Unlevered Cash Flow
Loan Amount $3,000,000 Loan Proceeds
Loan To Value (LTV) 60% Loan Payoff
Interest Rate 4.00% Total Levered Cash Flow
Amortization 30 Years

Return Metrics
Discount Rate 7.00%
Levered Net Present Value (XNPV)
Levered Internal Rate of Return (XIRR)
Levered Equity Multiple
 Operating & Sale Assumptions 5-Year Hold Period Analysis
Purchase Price $5,000,000 Month Ending 12/31/2021 1/31/2022 2/28/2022
Closing Costs (as % of Purchase Price) 1.00% Month Acquisition Month 1 Month 2
Going-In Cap Rate 6.00% Year Acquisition Year 1 Year 1
Year 1 Capital Expenses $5,000 NOI $0 $25,000 $25,000
Assumed Annual NOI Growth 4.00% Capital Expenses $0 ($417) ($417)
Assumed NOI Growth Frequency Annually Cash Flow Before Debt Service $0 $24,583 $24,583
Assumed Capital Expense Growth 3.00% Principal Payments $0 ($4,322) ($4,337)
Capital Expense Growth Frequency Annually Interest Payments $0 ($10,000) ($9,986)
Acquisition Date 12/31/2021 Cash Flow After Debt Service $0 $10,261 $10,261
Sale Month Month 60 Purchase Price ($5,000,000) $0 $0
Exit Cap Rate 6.50% Closing Costs ($50,000) $0 $0
Costs of Sale (as % of Sale Price) 2.50% Sale Proceeds $0 $0 $0
Costs of Sale $0 $0 $0
Debt Assumptions Total Unlevered Cash Flow ($5,050,000) $24,583 $24,583
Loan Amount $3,000,000 Loan Proceeds $3,000,000 $0 $0
Loan To Value (LTV) 60% Loan Payoff $0 $0 $0
Interest Rate 4.00% Total Levered Cash Flow ($2,050,000) $10,261 $10,261
Amortization 30 Years

Return Metrics
Discount Rate 7.00%
Levered Net Present Value (XNPV) $536,616
Levered Internal Rate of Return (XIRR) 12.84%
Levered Equity Multiple 1.71x
3/31/2022 4/30/2022 5/31/2022
Month 3 Month 4 Month 5
Year 1 Year 1 Year 1
$25,000 $25,000 $25,000
($417) ($417) ($417)
$24,583 $24,583 $24,583
($4,351) ($4,366) ($4,380)
($9,971) ($9,957) ($9,942)
$10,261 $10,261 $10,261
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$24,583 $24,583 $24,583
$0 $0 $0
$0 $0 $0
$10,261 $10,261 $10,261
6/30/2022 7/31/2022 8/31/2022 9/30/2022 10/31/2022 11/30/2022 12/31/2022 1/31/2023 2/28/2023
Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Month 13 Month 14
Year 1 Year 1 Year 1 Year 1 Year 1 Year 1 Year 1 Year 2 Year 2
$25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $26,000 $26,000
($417) ($417) ($417) ($417) ($417) ($417) ($417) ($429) ($429)
$24,583 $24,583 $24,583 $24,583 $24,583 $24,583 $24,583 $25,571 $25,571
($4,395) ($4,410) ($4,424) ($4,439) ($4,454) ($4,469) ($4,484) ($4,499) ($4,514)
($9,927) ($9,913) ($9,898) ($9,883) ($9,869) ($9,854) ($9,839) ($9,824) ($9,809)
$10,261 $10,261 $10,261 $10,261 $10,261 $10,261 $10,261 $11,248 $11,248
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$24,583 $24,583 $24,583 $24,583 $24,583 $24,583 $24,583 $25,571 $25,571
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$10,261 $10,261 $10,261 $10,261 $10,261 $10,261 $10,261 $11,248 $11,248
3/31/2023 4/30/2023 5/31/2023 6/30/2023 7/31/2023 8/31/2023 9/30/2023 10/31/2023 11/30/2023
Month 15 Month 16 Month 17 Month 18 Month 19 Month 20 Month 21 Month 22 Month 23
Year 2 Year 2 Year 2 Year 2 Year 2 Year 2 Year 2 Year 2 Year 2
$26,000 $26,000 $26,000 $26,000 $26,000 $26,000 $26,000 $26,000 $26,000
($429) ($429) ($429) ($429) ($429) ($429) ($429) ($429) ($429)
$25,571 $25,571 $25,571 $25,571 $25,571 $25,571 $25,571 $25,571 $25,571
($4,529) ($4,544) ($4,559) ($4,574) ($4,589) ($4,605) ($4,620) ($4,635) ($4,651)
($9,794) ($9,779) ($9,764) ($9,748) ($9,733) ($9,718) ($9,703) ($9,687) ($9,672)
$11,248 $11,248 $11,248 $11,248 $11,248 $11,248 $11,248 $11,248 $11,248
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$25,571 $25,571 $25,571 $25,571 $25,571 $25,571 $25,571 $25,571 $25,571
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$11,248 $11,248 $11,248 $11,248 $11,248 $11,248 $11,248 $11,248 $11,248
12/31/2023 1/31/2024 2/29/2024 3/31/2024 4/30/2024 5/31/2024 6/30/2024 7/31/2024 8/31/2024
Month 24 Month 25 Month 26 Month 27 Month 28 Month 29 Month 30 Month 31 Month 32
Year 2 Year 3 Year 3 Year 3 Year 3 Year 3 Year 3 Year 3 Year 3
$26,000 $27,040 $27,040 $27,040 $27,040 $27,040 $27,040 $27,040 $27,040
($429) ($442) ($442) ($442) ($442) ($442) ($442) ($442) ($442)
$25,571 $26,598 $26,598 $26,598 $26,598 $26,598 $26,598 $26,598 $26,598
($4,666) ($4,682) ($4,697) ($4,713) ($4,729) ($4,745) ($4,760) ($4,776) ($4,792)
($9,656) ($9,641) ($9,625) ($9,609) ($9,594) ($9,578) ($9,562) ($9,546) ($9,530)
$11,248 $12,275 $12,275 $12,275 $12,275 $12,275 $12,275 $12,275 $12,275
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$25,571 $26,598 $26,598 $26,598 $26,598 $26,598 $26,598 $26,598 $26,598
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$11,248 $12,275 $12,275 $12,275 $12,275 $12,275 $12,275 $12,275 $12,275
9/30/2024 10/31/2024 11/30/2024 12/31/2024 1/31/2025 2/28/2025 3/31/2025 4/30/2025 5/31/2025
Month 33 Month 34 Month 35 Month 36 Month 37 Month 38 Month 39 Month 40 Month 41
Year 3 Year 3 Year 3 Year 3 Year 4 Year 4 Year 4 Year 4 Year 4
$27,040 $27,040 $27,040 $27,040 $28,122 $28,122 $28,122 $28,122 $28,122
($442) ($442) ($442) ($442) ($455) ($455) ($455) ($455) ($455)
$26,598 $26,598 $26,598 $26,598 $27,666 $27,666 $27,666 $27,666 $27,666
($4,808) ($4,824) ($4,840) ($4,856) ($4,873) ($4,889) ($4,905) ($4,921) ($4,938)
($9,514) ($9,498) ($9,482) ($9,466) ($9,450) ($9,434) ($9,417) ($9,401) ($9,385)
$12,275 $12,275 $12,275 $12,275 $13,344 $13,344 $13,344 $13,344 $13,344
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$26,598 $26,598 $26,598 $26,598 $27,666 $27,666 $27,666 $27,666 $27,666
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$12,275 $12,275 $12,275 $12,275 $13,344 $13,344 $13,344 $13,344 $13,344
6/30/2025 7/31/2025 8/31/2025 9/30/2025 10/31/2025 11/30/2025 12/31/2025 1/31/2026 2/28/2026
Month 42 Month 43 Month 44 Month 45 Month 46 Month 47 Month 48 Month 49 Month 50
Year 4 Year 4 Year 4 Year 4 Year 4 Year 4 Year 4 Year 5 Year 5
$28,122 $28,122 $28,122 $28,122 $28,122 $28,122 $28,122 $29,246 $29,246
($455) ($455) ($455) ($455) ($455) ($455) ($455) ($469) ($469)
$27,666 $27,666 $27,666 $27,666 $27,666 $27,666 $27,666 $28,778 $28,778
($4,954) ($4,971) ($4,987) ($5,004) ($5,021) ($5,037) ($5,054) ($5,071) ($5,088)
($9,368) ($9,352) ($9,335) ($9,318) ($9,302) ($9,285) ($9,268) ($9,251) ($9,234)
$13,344 $13,344 $13,344 $13,344 $13,344 $13,344 $13,344 $14,455 $14,455
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$27,666 $27,666 $27,666 $27,666 $27,666 $27,666 $27,666 $28,778 $28,778
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$13,344 $13,344 $13,344 $13,344 $13,344 $13,344 $13,344 $14,455 $14,455
3/31/2026 4/30/2026 5/31/2026 6/30/2026 7/31/2026 8/31/2026 9/30/2026 10/31/2026 11/30/2026
Month 51 Month 52 Month 53 Month 54 Month 55 Month 56 Month 57 Month 58 Month 59
Year 5 Year 5 Year 5 Year 5 Year 5 Year 5 Year 5 Year 5 Year 5
$29,246 $29,246 $29,246 $29,246 $29,246 $29,246 $29,246 $29,246 $29,246
($469) ($469) ($469) ($469) ($469) ($469) ($469) ($469) ($469)
$28,778 $28,778 $28,778 $28,778 $28,778 $28,778 $28,778 $28,778 $28,778
($5,105) ($5,122) ($5,139) ($5,156) ($5,173) ($5,191) ($5,208) ($5,225) ($5,243)
($9,217) ($9,200) ($9,183) ($9,166) ($9,149) ($9,132) ($9,115) ($9,097) ($9,080)
$14,455 $14,455 $14,455 $14,455 $14,455 $14,455 $14,455 $14,455 $14,455
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$28,778 $28,778 $28,778 $28,778 $28,778 $28,778 $28,778 $28,778 $28,778
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$14,455 $14,455 $14,455 $14,455 $14,455 $14,455 $14,455 $14,455 $14,455
 12/31/2026 1/31/2027 2/28/2027 3/31/2027 4/30/2027 5/31/2027 6/30/2027 7/31/2027 8/31/2027
Month 60 Month 61 Month 62 Month 63 Month 64 Month 65 Month 66 Month 67 Month 68
Year 5 Year 6 Year 6 Year 6 Year 6 Year 6 Year 6 Year 6 Year 6
$29,246 $30,416 $30,416 $30,416 $30,416 $30,416 $30,416 $30,416 $30,416
($469) ($483) ($483) ($483) ($483) ($483) ($483) ($483) ($483)
$28,778 $29,933 $29,933 $29,933 $29,933 $29,933 $29,933 $29,933 $29,933
($5,260) ($5,278) ($5,295) ($5,313) ($5,331) ($5,348) ($5,366) ($5,384) ($5,402)
($9,062) ($9,045) ($9,027) ($9,010) ($8,992) ($8,974) ($8,956) ($8,938) ($8,920)
$14,455 $15,611 $15,611 $15,611 $15,611 $15,611 $15,611 $15,611 $15,611
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$5,615,321 $0 $0 $0 $0 $0 $0 $0 $0
($140,383) $0 $0 $0 $0 $0 $0 $0 $0
$5,503,716 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
($2,713,425) $0 $0 $0 $0 $0 $0 $0 $0
$2,775,968 $0 $0 $0 $0 $0 $0 $0 $0
9/30/2027 10/31/2027 11/30/2027 12/31/2027
Month 69 Month 70 Month 71 Month 72
Year 6 Year 6 Year 6 Year 6
$30,416 $30,416 $30,416 $30,416
($483) ($483) ($483) ($483)
$29,933 $29,933 $29,933 $29,933
($5,420) ($5,438) ($5,456) ($5,474)
($8,902) ($8,884) ($8,866) ($8,848)
$15,611 $15,611 $15,611 $15,611
$0 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0 $0
***Use the data below for the data table exercises***
Purchase, Sale, & Operating Metrics
Purchase Price $10,000,000
Going-In Cap Rate 6.00%
Exit Cap Rate 6.75%
NOI Growth 3.50%

1-Variable Data Table

Sensitize the Unlevered IRR based on NOI Growth

2-Variable Data Table

Sensitize the Unlevered IRR based on NOI growth and exit cap rate

Conditional Formatting
Highlight all Unlevered IRR values that exceed 9.0%

***Use the data below for the data table exercises***

Purchase, Sale, & Operating Metrics
Purchase Price $10,000,000
Year 1 NOI $600,000
Exit Cap Rate 6.75%
NOI Growth 3.50%
IRR 8.58%

Goal Seek
Use Goal Seek to calculate the purchase price which
would make the unlevered IRR exactly 10.00%

***Use the data below for the scenario analysis exercises***

Purchase, Sale, & Operating Metrics
Purchase Price $10,000,000
Going-In Cap Rate
Exit Cap Rate
NOI Growth

Scenario Analysis
Use VLOOKUP and the drop-down feature to return the pro forma
returns for each scenario

Scenario Analysis
Investment Scenario Best Case
Unlevered IRR
 Acquisition Year 1
Purchase Price ($10,000,000)
NOI $600,000
Sale Price
Net Unlevered Cash Flow ($10,000,000) $600,000

Effect of NOI Growth on Unlevered IRR

2.50% 3.00%
8.58%

Effect of NOI Growth & Exit Cap Rate on Unlevered IRR

8.58% 2.50% 3.00%
6.25%
6.50%
6.75%
7.00%
7.25%

Effect of NOI Growth & Exit Cap Rate on Unlevered IRR

8.58% 2.50% 3.00%
6.25%
6.50%
6.75%
7.00%
7.25%

Acquisition Year 1
Purchase Price ($10,000,000)
NOI $600,000
Sale Price
Net Unlevered Cash Flow ($10,000,000) $600,000

Acquisition Year 1
Purchase Price ($10,000,000)
NOI $0
Sale Price
Net Unlevered Cash Flow ($10,000,000) $0

Scenario Going-In Cap Rate Exit Cap Rate

Best Case 6.25% 6.50%
Base Case 6.00% 6.75%
Weak Case 5.75% 7.00%
 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9

$621,000 $642,735 $665,231 $688,514 $712,612 $737,553 $763,368 $790,085

$621,000 $642,735 $665,231 $688,514 $712,612 $737,553 $763,368 $790,085

n Unlevered IRR
3.50% 4.00% 4.50%

p Rate on Unlevered IRR

3.50% 4.00% 4.50%

p Rate on Unlevered IRR

3.50% 4.00% 4.50%

Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9

$621,000 $642,735 $665,231 $688,514 $712,612 $737,553 $763,368 $790,085

$621,000 $642,735 $665,231 $688,514 $712,612 $737,553 $763,368 $790,085

Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9

$0 $0 $0 $0 $0 $0 $0 $0

$0 $0 $0 $0 $0 $0 $0 $0

NOI Growth
4.00%
3.50%
3.00%
 Year 10

$817,738
$12,538,656
$13,356,394

Year 10

$817,738
$12,538,656
$13,356,394

Year 10

$0
$0
$0
***Use the data below for the data table exercises***
Purchase, Sale, & Operating Metrics
Purchase Price $10,000,000
Going-In Cap Rate 6.00%
Exit Cap Rate 6.75%
NOI Growth 3.50%

1-Variable Data Table

Sensitize the Unlevered IRR based on NOI Growth

2-Variable Data Table

Sensitize the Unlevered IRR based on NOI growth and exit cap rate

Conditional Formatting
Highlight all Unlevered IRR values that exceed 9.0%

***Use the data below for the data table exercises***

Purchase, Sale, & Operating Metrics
Purchase Price $9,045,000
Year 1 NOI $600,000
Exit Cap Rate 6.75%
NOI Growth 3.50%
IRR 10.00%

Goal Seek
Use Goal Seek to calculate the purchase price which
would make the unlevered IRR exactly 10.00%

***Use the data below for the scenario analysis exercises***

Purchase, Sale, & Operating Metrics
Purchase Price $10,000,000
Going-In Cap Rate 6.25%
Exit Cap Rate 6.50%
NOI Growth 4.00%

Scenario Analysis
Use VLOOKUP and the drop-down feature to return the pro forma
returns for each scenario

Scenario Analysis
Investment Scenario Best Case
Unlevered IRR 9.94%
 Acquisition Year 1
Purchase Price ($10,000,000)
NOI $600,000
Sale Price
Net Unlevered Cash Flow ($10,000,000) $600,000

Effect of NOI Growth on Unlevered IRR

2.50% 3.00%
8.58%

Effect of NOI Growth & Exit Cap Rate on Unlevered IRR

8.58% 2.50% 3.00%
6.25%
6.50%
6.75%
7.00%
7.25%

Effect of NOI Growth & Exit Cap Rate on Unlevered IRR

8.58% 2.50% 3.00%
6.25%
6.50%
6.75%
7.00%
7.25%

Acquisition Year 1
Purchase Price ($9,045,000)
NOI $600,000
Sale Price
Net Unlevered Cash Flow ($9,045,000) $600,000

Acquisition Year 1
Purchase Price ($10,000,000)
NOI $625,000
Sale Price
Net Unlevered Cash Flow ($10,000,000) $625,000

Scenario Going-In Cap Rate Exit Cap Rate

Best Case 6.25% 6.50%
Base Case 6.00% 6.75%
Weak Case 5.75% 7.00%
 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9

$621,000 $642,735 $665,231 $688,514 $712,612 $737,553 $763,368 $790,085

$621,000 $642,735 $665,231 $688,514 $712,612 $737,553 $763,368 $790,085

n Unlevered IRR
3.50% 4.00% 4.50%

p Rate on Unlevered IRR

3.50% 4.00% 4.50%

p Rate on Unlevered IRR

3.50% 4.00% 4.50%

Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9

$621,000 $642,735 $665,231 $688,514 $712,612 $737,553 $763,368 $790,085

$621,000 $642,735 $665,231 $688,514 $712,612 $737,553 $763,368 $790,085

Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9

$650,000 $676,000 $703,040 $731,162 $760,408 $790,824 $822,457 $855,356

$650,000 $676,000 $703,040 $731,162 $760,408 $790,824 $822,457 $855,356

NOI Growth
4.00%
3.50%
3.00%
 Year 10

$817,738
$12,538,656
$13,356,394

Year 10

$817,738
$12,538,656
$13,356,394

Year 10

$889,570
$14,233,118
$15,122,688