- Investment Analysis Model
($ USD in $ as Stated, Unless Otherwise Noted)
Operating Assumptions: Units: Units:
Property Name: Name Real Estate Taxes % Property Value: % 4.00%
Location: Name 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. Replacement Reserve Annual Growth Rate: % 3.0%
Property Management Fees % EGI: % 5.0% 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%
Insurance per RSF per Year: $ / sq. ft. / Yr $ 2.00
Insurance Annual Growth Rate: % 2.5%
Acquisition and Exit Assumptions: Units: Units:
Acquisition Date: Date Exit Date: Date 1905-01-31
Acquisition Price per Rentable Square Foot: $ / sq. ft. $ 1,000.00 Exit Cap Rate: % 6.00%
Acquisition Price: $ $ -
Exit Price: $ #DIV/0!
Implied Going-In Cap Rate: % #DIV/0! Exit Price per RSF: $ / sq. ft. #DIV/0!
Acquisition Costs (% Gross Acquisition Price): % 1.00% Selling Costs (% Gross Sale Price): % 1.50%
Loan Issuance Fees (% Total Debt): % 1.50%
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%
Limited Partner Equity Contribution: % 90.0%
Acquisition Sources and Uses of Funds:
Uses of
Sources of Funds: Funds:
Senior Debt: $ - Acquisition Price: $ -
Mezzanine: - Acquisition Costs: -
Operating Partner - Equity: - Loan Issuance Fees: -
Limited Partners - Equity: - Replacement Reserves: -
Total Sources: $ - Total Uses: $ -
Historical: Projected: Stabilized
Rent Roll & Operating Assumptions: Units: FY99 FY00 FY01 FY02 FY03 FY04 Year:
Property-Wide Operating Assumptions:
New Lease Term (Years): # Years 10
Renewal Probability: % 70.0%
# Months of Downtime for Non-Renewal: # 6
Free Rent and Capital Costs: New: Renewal:
# Months of Free Rent: # 6 3
Tenant Improvements (TIs) per RSF: $ / sq. ft. / Yr $ 10.00 3.00
Leasing Commissions (LCs) % Total Lease Value: % 3.0% 1.0%
Office Tenant #1 - Full Service (FS) Lease:
Rentable Square Feet Occupied: sq. ft. 10,000 sq. ft.
Lease Expiration Date: Date 2019-12-31
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) - - -
Office Tenant #2 - Single Net (N) Lease:
Rentable Square Feet Occupied: sq. ft. 7,000 sq. ft.
Lease Expiration Date: Date 2020-12-31
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: $ #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Tenant #3 - Retailer - Triple Net (NNN) Lease:
Rentable Square Feet Occupied: sq. ft. 6,000 sq. ft.
Lease Expiration Date: Date 2024-12-31
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: $ #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Annual Capital Costs: $ - - - (266,974) (175,934) - -
Replacement Reserve Amount: $ - - - - - - - -
Numerical Year: Year 1900 1901 1902 1903 1904 1905 1906
Historical: Projected: Stabilized
Property Pro-Forma: Units: FY99 FY01 FY02 FY03 FY04 FY05 Year:
Revenue:
(+) Base Rental Income: $ $ (285,000) $ (278,250) $ (275,939) $ (283,971) $ (277,782) $ (286,115) $ (294,699)
(-) Absorption & Turnover Vacancy: $ - - - (202,476) (131,469) - -
(-) Concessions & Free Rent: $ - - - (438,697) (284,850) - -
(+) Expense Reimbursements: $ #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Potential Gross Revenue: $ #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
(-) General Vacancy: $ 2,760,000 2,870,400 2,985,216 3,104,625 3,197,763 3,293,696 3,392,507
Effective Gross Income (EGI): $ #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Expenses:
(-) Property Management Fees: $ #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
(-) Common Area Maintenance (CAM): $ - - - - - - -
(-) Common Area Utilities: $ - - - - - - -
(-) Insurance: $ - - - - - - -
(-) Real Estate & Property Taxes: $ - - - - - - -
(-) CapEx, TI, and LC Reserves: $ - - - - - - -
Total Expenses: $ #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Net Operating Income (NOI): $ #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
NOI Margin: % #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
(-) CapEx, TIs, and LCs: $ - - - (266,974) (175,934) - -
(+) Capital Costs Paid from Reserves: $ - - - - - - -
Adjusted Net Operating Income: $ #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Adjusted NOI Margin: % #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
(-) Cash Interest Expense on Senior Debt: $ - - - - -
(-) Cash Interest Expense on Mezzanine: - - - - -
(-) Senior Debt Principal Repayment: $ - - - - -
Cash Flow to Equity Investors: $ #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
PIK Interest on Mezzanine: $ - - - - -
(+) Ending Senior Debt Balance: $ - - - - - -
(+) Ending Mezzanine Balance: $ - - - - - -
Total Debt Balance: $ $ - $ - $ - $ - $ - $ -
Debt Yield: % #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Interest Coverage Ratio - NOI: x #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Interest Coverage Ratio - Adjusted NOI: x #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Debt Service Coverage Ratio (DSCR) - NOI: x #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Debt Service Coverage Ratio (DSCR) - Adjusted NOI: x #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Historical: Projected:
IRR Calculations: Units: FY99 FY01 FY02 FY03 FY04 FY05
Project Cash Flows (Unleveraged IRR):
(+) Proceeds from Sale of Property: $ - - - - #DIV/0!
(-) Selling Costs: $ - - - - #DIV/0!
(+) Adjusted NOI (Cash Flows to All Investors): $ #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
(-) Property Acquisition Price: $ - - - - - -
Total Project Cash Flows (Unleveraged IRR): $ $ - #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Unleveraged Internal Rate of Return (IRR): % #DIV/0!
Total Returns: $ #DIV/0!
Total Initial Investment: $ -
Cash-on-Cash Multiple: x #DIV/0!
Cash Flow to Equity Investors (Leveraged IRR):
(+) Proceeds from Sale of Property: $ - - - - #DIV/0!
(-) Selling Costs: $ - - - - #DIV/0!
(+) Cash Flows to Equity Investors: $ #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
(-) Debt Principal Repayment Upon Exit: $ - - - - -
(-) Initial Equity Investment: $ - - - - - -
Total Cash Flows to Equity (Leveraged IRR): $ $ - #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Leveraged Internal Rate of Return (IRR): % #DIV/0!
Total Returns to Equity: $ #DIV/0!
Invested Equity: $ -
Cash-on-Cash Multiple: x #DIV/0!
