| Base rent increases | | 0.03 | | | | | | Land Price | $ 1,000,000.00 | | | | | Comparables | Price | NOI | Cap rate |
| Increase in sales | | 0.02 | | | | | | construction cost | $ 22,000,000.00 | | | | | Property A | $ 28,750,000.00 | $ 2,300,000.00 | 8.00% |
| | | SF | Base Rent per SF (Annual) | Overage Rent | Breakpoint | Sales | | total cost | $ (23,000,000.00) | | $ 28,372,450.46 | | | Property B | $ 26,000,000.00 | $ 1,950,000.00 | 7.50% |
| Fresh Foods | | 75,000.00 | $ 12.00 | $ 0.03 | $ 1,500,000.00 | $ 4,300,000.00 | | Loan amount | $18,491,624.70 | | ($11,505,769.64) | | | Property C | $ 30,000,000.00 | $ 2,100,000.00 | 7.00% |
| Great Electronics | | 55,000.00 | $ 14.00 | $ 0.03 | $ 1,000,000.00 | $ 4,100,000.00 | | | | | | | | | | Average Cap rate | 7.50% |
| Fancy Shoes | | 45,000.00 | $ 15.50 | $ 0.03 | $ 1,000,000.00 | $ 3,700,000.00 | | | | | 2) Direct Capitalization Method | | | NOI | Value |
| 10 In-Line Tenants | | 50,000.00 | $ 18.00 | N/A | N/A | $ 3,300,000.00 | | | | | | | | $ 1,903,770.00 | $ 25,383,600.00 |
| Total | | 225,000.00 |
| DCR | | 1.30 |
| Interest pa | | 0.05 |
| Vacancy and collection losses | | 0.10 |
| Operating expenses | | 0.40 | | | | | | | | | | | | 3) Discounted Cash Flow Method |
| Depreciation years | | 39.00 |
| Tax | | 0.35 |
| | | | | | | | | | | | | | | 10 Year-old Comps. | Price | NOI | Cap Rate | Req R | Average Cap Rate |
| | | | | | | | | | | | | | | Property D | $ 18,750,000.00 | $ 1,500,000.00 | 8.0% | 10% | 9.0% |
| 1) Pro pharma statement | | | | | | | | | | | | | | Property E | $ 17,500,000.00 | $ 1,750,000.00 | 10.0% |
| Base rent | | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | | Property F | $ 20,000,000.00 | $ 1,800,000.00 | 9.0% |
| Fresh Foods | | $ 900,000.00 | $ 927,000.00 | $ 954,810.00 | $ 983,454.30 | $ 1,012,957.93 | $ 1,043,346.67 | $ 1,074,647.07 | $ 1,106,886.48 | $ 1,140,093.07 | $ 1,174,295.87 | $ 1,209,524.74 | | | | Terminal Cap rate | 9.0% |
| Great Electronics | | $ 770,000.00 | $ 793,100.00 | $ 816,893.00 | $ 841,399.79 | $ 866,641.78 | $ 892,641.04 | $ 919,420.27 | $ 947,002.88 | $ 975,412.96 | $ 1,004,675.35 | $ 1,034,815.61 |
| Fancy Shoes | | $ 697,500.00 | $ 718,425.00 | $ 739,977.75 | $ 762,177.08 | $ 785,042.39 | $ 808,593.67 | $ 832,851.48 | $ 857,837.02 | $ 883,572.13 | $ 910,079.30 | $ 937,381.67 |
| 10 In-Line Tenants | | $ 900,000.00 | $ 927,000.00 | $ 954,810.00 | $ 983,454.30 | $ 1,012,957.93 | $ 1,043,346.67 | $ 1,074,647.07 | $ 1,106,886.48 | $ 1,140,093.07 | $ 1,174,295.87 | $ 1,209,524.74 | | | NOI | PV 10% | Revenue | 10% PV of Revenue | Sum of PV |
| | | | | | | | | | | | | | | 1 | $ 1,903,770.00 | $1,730,700.00 | | | $1,730,700.00 |
| Sales | | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | | 2 | $ 1,960,623.90 | $1,620,350.33 | | | $1,620,350.33 |
| Fresh Foods | | $ 4,300,000.00 | $ 4,386,000.00 | $ 4,473,720.00 | $ 4,563,194.40 | $ 4,654,458.29 | $ 4,747,547.45 | $ 4,842,498.40 | $ 4,939,348.37 | $ 5,038,135.34 | $ 5,138,898.05 | $ 5,241,676.01 | | 3 | $ 2,019,144.21 | $1,517,012.93 | | | $1,517,012.93 |
| Great Electronics | | $ 4,100,000.00 | $ 4,182,000.00 | $ 4,265,640.00 | $ 4,350,952.80 | $ 4,437,971.86 | $ 4,526,731.29 | $ 4,617,265.92 | $ 4,709,611.24 | $ 4,803,803.46 | $ 4,899,879.53 | $ 4,997,877.12 | | 4 | $ 2,079,380.15 | $1,420,244.62 | | | $1,420,244.62 |
| Fancy Shoes | | $ 3,700,000.00 | $ 3,774,000.00 | $ 3,849,480.00 | $ 3,926,469.60 | $ 4,004,998.99 | $ 4,085,098.97 | $ 4,166,800.95 | $ 4,250,136.97 | $ 4,335,139.71 | $ 4,421,842.50 | $ 4,510,279.35 | | 5 | $ 2,141,382.37 | $1,329,629.98 | | | $1,329,629.98 |
| 10 In-Line Tenants | | $ 3,300,000.00 | $ 3,366,000.00 | $ 3,433,320.00 | $ 3,501,986.40 | $ 3,572,026.13 | $ 3,643,466.65 | $ 3,716,335.98 | $ 3,790,662.70 | $ 3,866,475.96 | $ 3,943,805.48 | $ 4,022,681.59 | | 6 | $ 2,205,203.06 | $1,244,779.64 | | | $1,244,779.64 |
| | | | | | | | | | | | | | | 7 | $ 2,270,895.93 | $1,165,328.68 | | | $1,165,328.68 |
| | | | | | | | | | | | | | | 8 | $ 2,338,516.31 | $1,090,935.12 | | | $1,090,935.12 |
| | | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | | 9 | $ 2,408,121.14 | $1,021,278.44 | | | $1,021,278.44 |
| Sales revenue | | | | | | | | | | | | | | 10 | $ 2,479,769.09 | $956,058.33 | $ 28,372,450.46 | $10,938,807.88 | $11,894,866.21 |
| Fresh foods | | $ 984,000.00 | $ 1,013,580.00 | $ 1,044,021.60 | $ 1,075,350.13 | $ 1,107,591.68 | $ 1,140,773.09 | $ 1,174,922.02 | $ 1,210,066.93 | $ 1,246,237.13 | $ 1,283,462.81 | $ 1,321,775.02 | | 11 | $ 2,553,520.54 | $894,993.37 |
| Great Electronics | | $ 863,000.00 | $ 888,560.00 | $ 914,862.20 | $ 941,928.37 | $ 969,780.94 | $ 998,442.98 | $ 1,027,938.25 | $ 1,058,291.21 | $ 1,089,527.07 | $ 1,121,671.74 | $ 1,154,751.93 |
| Fancy Shoes | | $ 778,500.00 | $ 801,645.00 | $ 825,462.15 | $ 849,971.17 | $ 875,192.36 | $ 901,146.64 | $ 927,855.51 | $ 955,341.13 | $ 983,626.32 | $ 1,012,734.57 | $ 1,042,690.06 | | | | | Value | $24,035,125.95 |
| 10 in-line tenants | | $ 900,000.00 | $ 927,000.00 | $ 954,810.00 | $ 983,454.30 | $ 1,012,957.93 | $ 1,043,346.67 | $ 1,074,647.07 | $ 1,106,886.48 | $ 1,140,093.07 | $ 1,174,295.87 | $ 1,209,524.74 |
| Total rent | | $ 3,525,500.00 | $ 3,630,785.00 | $ 3,739,155.95 | $ 3,850,703.98 | $ 3,965,522.91 | $ 4,083,709.37 | $ 4,205,362.84 | $ 4,330,585.75 | $ 4,459,483.60 | $ 4,592,164.98 | $ 4,728,741.74 |
| Vacancy and collection losses | | $ (352,550.00) | $ (363,078.50) | $ (373,915.60) | $ (385,070.40) | $ (396,552.29) | $ (408,370.94) | $ (420,536.28) | $ (433,058.58) | $ (445,948.36) | $ (459,216.50) | $ (472,874.17) |
| EGI | | $ 3,172,950.00 | $ 3,267,706.50 | $ 3,365,240.35 | $ 3,465,633.58 | $ 3,568,970.62 | $ 3,675,338.43 | $ 3,784,826.55 | $ 3,897,527.18 | $ 4,013,535.24 | $ 4,132,948.48 | $ 4,255,867.57 | | | 4) Unleveraged IRR |
| Operating Expenses | | $ (1,269,180.00) | $ (1,307,082.60) | $ (1,346,096.14) | $ (1,386,253.43) | $ (1,427,588.25) | $ (1,470,135.37) | $ (1,513,930.62) | $ (1,559,010.87) | $ (1,605,414.09) | $ (1,653,179.39) | $ (1,702,347.03) |
| Net Operating Income | | $ 1,903,770.00 | $ 1,960,623.90 | $ 2,019,144.21 | $ 2,079,380.15 | $ 2,141,382.37 | $ 2,205,203.06 | $ 2,270,895.93 | $ 2,338,516.31 | $ 2,408,121.14 | $ 2,479,769.09 | $ 2,553,520.54 |
| DS | | $ 1,464,438.46 | $ 1,464,438.46 | $ 1,464,438.46 | $ 1,464,438.46 | $ 1,464,438.46 | $ 1,464,438.46 | $ 1,464,438.46 | $ 1,464,438.46 | $ 1,464,438.46 | $ 1,464,438.46 | $ 1,464,438.46 | | Year | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | Year | 9 |
| BTCF | | $ 439,331.54 | $ 496,185.44 | $ 554,705.75 | $ 614,941.69 | $ 676,943.91 | $ 740,764.60 | $ 806,457.47 | $ 874,077.84 | $ 943,682.68 | $ 17,882,011.46 | | | NOI | $ (4,508,375.30) | $ 1,903,770.00 | $ 1,960,623.90 | $ 2,019,144.21 | $ 2,079,380.15 | $ 2,141,382.37 | $ 2,205,203.06 | $ 2,270,895.93 | $ 2,338,516.31 | NOI | $ - 0 |
| ATCF | | $ 289,660.56 | $ 316,723.91 | $ 344,364.35 | $ 372,587.97 | $ 401,400.50 | $ 430,807.24 | $ 460,813.03 | $ 491,422.21 | $ 522,638.59 | $ 17,421,146.18 |
| DCR | | $ 1.30 | $ 1.34 | $ 1.38 | $ 1.42 | $ 1.46 | $ 1.51 | $ 1.55 | $ 1.60 | $ 1.64 | $ 1.69 |
| Equity CF | $ (4,508,375.30) | $ 439,331.54 | $ 496,185.44 | $ 554,705.75 | $ 614,941.69 | $ 676,943.91 | $ 740,764.60 | $ 806,457.47 | $ 874,077.84 | $ 943,682.68 | $ 17,882,011.46 | | | IRR | 41.98% |
| Total Equity CF | $ (4,508,375.30) | $ 289,660.56 | $ 316,723.91 | $ 344,364.35 | $ 372,587.97 | $ 401,400.50 | $ 430,807.24 | $ 460,813.03 | $ 491,422.21 | $ 522,638.59 | $ 17,421,146.18 |
| Depreciation | | $ (564,102.56) | $ (564,102.56) | $ (564,102.56) | $ (564,102.56) | $ (564,102.56) | $ (564,102.56) | $ (564,102.56) | $ (564,102.56) | $ (564,102.56) | $ (564,102.56) |
| Beg Principle | | $ 18,491,624.70 | $ 17,939,222.29 | $ 17,358,557.93 | $ 16,748,185.68 | $ 16,106,585.62 | $ 15,432,160.09 | $ 14,723,229.67 | $ 13,978,029.02 | $ 13,194,702.49 | $ 12,371,299.49 |
| End Principle | | $ 17,939,222.29 | $ 17,358,557.93 | $ 16,748,185.68 | $ 16,106,585.62 | $ 15,432,160.09 | $ 14,723,229.67 | $ 13,978,029.02 | $ 13,194,702.49 | $ 12,371,299.49 | $ 11,505,769.64 |
| Principle paid | | $ 552,402.41 | $ 580,664.36 | $ 610,372.25 | $ 641,600.06 | $ 674,425.53 | $ 708,930.42 | $ 745,200.65 | $ 783,326.53 | $ 823,403.00 | $ 865,529.86 |
| Intrest | | $ (912,036.06) | $ (883,774.10) | $ (854,066.21) | $ (822,838.41) | $ (790,012.93) | $ (755,508.04) | $ (719,237.81) | $ (681,111.93) | $ (641,035.46) | $ (598,908.60) |
| Taxable income | | $ 427,631.38 | $ 512,747.24 | $ 600,975.44 | $ 692,439.18 | $ 787,266.88 | $ 885,592.46 | $ 987,555.55 | $ 1,093,301.81 | $ 1,202,983.12 | $ 1,316,757.92 |
| Taxes | | $ (149,670.98) | $ (179,461.53) | $ (210,341.40) | $ (242,353.71) | $ (275,543.41) | $ (309,957.36) | $ (345,644.44) | $ (382,655.63) | $ (421,044.09) | $ (460,865.27) |
| 5) | BTIRR | 22.83% |
| | ATIRR | 19.31% |
SJBRANA
FinalMINICASE.xlsx
