Real Estate Problem Analysis.

Boeing.2017.revised.xlsx

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Data


Assumptions					Aug-13	Aug-14	Aug-15	Aug-16	Aug-17	Aug-18	Aug-19	Aug-20	Aug-21	Aug-22	Aug-23
			Year		1	2	3	4	5	6	7	8	9	10	11
Purchase price	7,200,000
Mortgage balance	3,846,815		Rent/SF		11.32	11.55	11.78	12.50	12.75	13.01	13.27	13.53	14.50	14.79	15.09
Rentable square footage	52,400		Rental income		593,168	605,031	617,132	655,000	668,100	681,462	695,091	708,993	759,800	774,996	790,496
Rent/sf: 8/13	11.32
Base escalation	2.00%		Vacancy adjustment		0	0	0	81,875	0	0	0	0	94,975	0	0
Initial lease term	10 years
Lease expiration	7/31/16		Effective gross income		593,168	605,031	617,132	573,125	668,100	681,462	695,091	708,993	664,825	774,996	790,496
Term of renewal option	5 years
			Owner Expenses:
Operating expenses			G & A		5,150	5,279	5,411	5,546	5,685	5,827	5,972	6,122	6,275	6,432	6,592
CAM	81,000	Inflation	CAM		0	0	0	5,063	0	0	0	0	5,728	0	0
RETax	51,250	Inflation	RETax		0	0	0	6,406	0	0	0	0	7,248	0	0
Ins	35,000	Inflation	Ins		0	0	0	4,375	0	0	0	0	4,950	0	0
General & administrative	5,150	Inflation
			Net operating income (NOI)		588,018	599,753	611,721	551,735	662,415	675,635	689,119	702,871	640,624	768,564	783,903
Inflation	2.50%
			Capital reserves		7,860	8,057	8,258	8,464	8,676	8,893	9,115	9,343	9,577	9,816	10,061
Lease Renewal Year 5			Tenant improvements					289,199					327,202
Renewal probability (year 5)	75%		Leasing commissions					65,500					75,980
Months vacant	6
Tenant improvements/SF (new tenant)	20		Net income after reserves		580,158	591,696	603,463	188,572	653,739	666,742	680,004	693,528	227,866	758,748	773,842
Leasing commision/SF (new tenant)	8%
			Debt service		395,802	395,802	395,802	395,802	395,802	395,802	395,802	395,802	395,802	395,802	395,802
Lease Renewal Year 10
Renewal probability (year 5)	75%		BTCF from operations		184,356	195,894	207,662	(207,230)	257,938	270,941	284,202	297,727	(167,936)	362,947	378,040
Months vacant	6
Tenant improvements/SF (new tenant)	20													8,442,613
Leasing commision/SF (new tenant)	8%		Discouted Cash Flow	(3,413,185)	184,356	195,894	207,662	(207,230)	257,938	270,941	284,202	297,727	(167,936)	8,805,559	783,903
			IRR	12.9%											10,452,046
Acquisition cost	60,000														(313,561)
Cost associated with sale	3.00%														(1,695,873)
Terminal Cap rate	7.50%		Tenant Expenses:
			CAM		81,000	83,025	85,101	87,228	89,409	91,644	93,935	96,284	98,691	101,158	103,687
Mortgage Start Date	Aug-06		RETax		51,250	52,531	53,845	55,191	56,570	57,985	59,434	60,920	62,443	64,004	65,604
Amount	5,000,000		Ins		35,000	35,875	36,772	37,691	38,633	39,599	40,589	41,604	42,644	43,710	44,803
Rate	6.250%		Total/SF		3.19	3.27	3.35	3.44	3.52	3.61	3.70	3.79	3.89	3.99	4.09
term	25
Payment	32,983.47
Capital expenditures
Reserves	7,860