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RE 01 03 Office Acquisition Part 1 After
RE 01 03 Office Acquisition Part 1 After
Property Name: Name 1201 Broadway Real Estate Taxes % Property Value: % 4.00%
Location: Name New York, NY Real Estate Taxes Annual Growth Rate: % 2.0%
Months in Year: # 12 Replacement Reserve per RSF per Year: $ / sq. ft. / Yr $ 2.50
Rentable Square Feet (RSF): sq. ft. 25,000 sq. ft. Replacement Reserve Annual Growth Rate: % 3.0%
Property Management Fees % EGI: % 3.0% Common Area Utilities per RSF per Year: $ / sq. ft. / Yr $ 3.00
Common Area Utilities Annual Growth Rate: % 3.0%
Common Area Maintenance (CAM) per RSF per Year: $ / sq. ft. / Yr $ 5.00
Common Area Maintenance Annual Growth Rate: % 3.5%
Acquisition Costs (% Gross Acquisition Price): % 1.00% Selling Costs (% Gross Sale Price): % 1.50%
Loan Issuance Fees (% Total Debt): % 1.00%
Senior Loan Loan-to-Value (LTV) Ratio: % 50.0% Mezzanine Loan-to-Value (LTV) Ratio: % 10.0%
Senior Loan Interest Rate: % 5.00% Mezzanine Cash Interest Rate: % 7.00%
Senior Loan Amortization Period: # Years 25 Mezzanine PIK Interest Rate: % 3.00%
Senior Loan Maturity: # Years 5 Mezzanine Amortization Period: # Years N/A
Mezzanine Maturity: # Years 5
Operating Partner Equity Contribution: % 10.0%
Asset Management Fee % Initial Equity Invested: % 1.5%
Profit Split Below IRR Hurdle: % -
IRR Hurdle (Based on Levered IRR to LPs): % 10.0%
Profit Split Beyond IRR Hurdle: % 20.0%
Baseline Rent per Square Foot: $ / sq. ft. / Yr $ 120.00 $ 124.80 $ 129.79 $ 134.98 $ 139.03 $ 143.20 $ 147.50
Rental Growth Rate: % 4.0% 4.0% 4.0% 3.0% 3.0% 3.0%
(+) Base Rental Income: $ 1,200,000 1,248,000 1,297,920 1,349,837 1,390,332 1,432,042 1,475,003
(-) Absorption & Turnover Vacancy: $ - - - (202,476) - - -
(-) Concessions & Free Rent: $ - - - (438,697) - - -
(-) Tenant Improvements (TIs): $ - - - (51,000) - - -
(-) Leasing Commissions (LCs): $ - - - (215,974) - - -
Baseline Rent per Square Foot: $ / sq. ft. / Yr $ 105.00 $ 110.25 $ 115.76 $ 120.39 $ 125.21 $ 128.96 $ 132.83
Rental Growth Rate: % 5.0% 5.0% 4.0% 4.0% 3.0% 3.0%
(+) Base Rental Income: $ 735,000 771,750 810,338 842,751 876,461 902,755 929,838
(-) Absorption & Turnover Vacancy: $ - - - - (131,469) - -
(-) Concessions & Free Rent: $ - - - - (284,850) - -
(-) Tenant Improvements (TIs): $ - - - - (35,700) - -
(-) Leasing Commissions (LCs): $ - - - - (140,234) - -
(+) Expense Reimbursements: $ 280,000 285,600 291,312 297,138 257,619 309,143 315,325
Baseline Rent per Square Foot: $ / sq. ft. / Yr $ 90.00 $ 95.40 $ 100.17 $ 104.68 $ 108.86 $ 112.13 $ 115.49
Rental Growth Rate: % 6.0% 5.0% 4.5% 4.0% 3.0% 3.0%
(+) Base Rental Income: $ 540,000 572,400 601,020 628,066 653,189 672,784 692,968
(-) Absorption & Turnover Vacancy: $ - - - - - - -
(-) Concessions & Free Rent: $ - - - - - - -
(-) Tenant Improvements (TIs): $ - - - - - - -
(-) Leasing Commissions (LCs): $ - - - - - - -
(+) Expense Reimbursements: $ 300,000 306,690 313,536 320,543 327,714 335,054 342,566
Numerical Year: Year 2017 2018 2019 2020 2021 2022 2023
Historical: Projected: Stabilized
Property Pro-Forma: Units: FY17 FY18 FY19 FY20 FY21 FY22 Year:
Revenue:
(+) Base Rental Income: $ $ 2,715,000 $ 2,841,750 $ 2,968,862 $ 3,090,621 $ 3,198,048 $ 3,293,989 $ 3,392,809
(-) Absorption & Turnover Vacancy: $ - - - (202,476) (131,469) - -
(-) Concessions & Free Rent: $ - - - (438,697) (284,850) - -
(+) Expense Reimbursements: $ 580,000 592,290 604,848 617,681 585,333 644,196 657,891
Potential Gross Revenue: $ 3,295,000 3,434,040 3,573,710 3,067,130 3,367,062 3,938,186 4,050,700
(-) General Vacancy: $ (240,000) (249,600) (259,584) (269,967) (278,066) (286,408) (295,001)
Effective Gross Income (EGI): $ 3,055,000 3,184,440 3,314,126 2,797,163 3,088,996 3,651,777 3,755,700
Expenses:
(-) Property Management Fees: $ (91,650) (95,533) (99,424) (83,915) (92,670) (109,553) (112,671)
(-) Common Area Maintenance (CAM): $ (125,000) (129,375) (133,903) (138,590) (143,440) (148,461) (153,657)
(-) Common Area Utilities: $ (75,000) (77,250) (79,568) (81,955) (84,413) (86,946) (89,554)
(-) Insurance: $ (50,000) (51,250) (52,531) (53,845) (55,191) (56,570) (57,985)
(-) Real Estate & Property Taxes: $ (1,000,000) (1,020,000) (1,040,400) (1,061,208) (1,082,432) (1,104,081) (1,126,162)
(-) CapEx, TI, and LC Reserves: $ (62,500) (64,375) (66,306) (68,295) (70,344) (72,455) (74,628)
Total Expenses: $ (1,404,150) (1,437,783) (1,472,132) (1,487,807) (1,528,491) (1,578,066) (1,614,657)
Net Operating Income (NOI): $ 1,650,850 1,746,657 1,841,994 1,309,356 1,560,505 2,073,712 2,141,043
NOI Margin: % 54.0% 54.8% 55.6% 46.8% 50.5% 56.8% 57.0%
Adjusted Net Operating Income: $ 1,650,850 1,746,657 1,841,994 1,309,356 1,511,918 2,073,712 2,141,043
Adjusted NOI Margin: % 54.0% 54.8% 55.6% 46.8% 48.9% 56.8% 57.0%
Debt Yield: %
Total Returns: $
Total Initial Investment: $
Cash-on-Cash Multiple: x
Historical: Projected:
Waterfall Returns Schedule: Units: FY17 FY18 FY19 FY20 FY21 FY22