Project using in Excel

WICKED TOWER

Building 60000 sf 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Year 1 Year 5 Year 10

Tenant Lease Lease Lease Premises

Start End Rate SF

Gross Rent Clarke Real Estate 1/1/2014 1/1/2024 $10.50 60000 $630,000 $642,600 $655,452 $668,561 $681,932 $695,571 $709,482 $723,672 $738,145 $752,908 $767,966

Effective Gross Rent $630,000 $642,600 $655,452 $668,561 $681,932 $695,571 $709,482 $723,672 $738,145 $752,908 $767,966

Less:

RE Taxes $99,000

CAM $180,000

Cap Expenditure $6,000

Subtotal RETAX/ CAM/ Cap Ex $285,000 $285,000 $290,700 $296,514 $302,444 $308,493 $314,663 $320,956 $327,375 $333,923 $340,601 $347,413

NET OPERATING INCOME $345,000 $351,900 $358,938 $366,117 $373,439 $380,908 $388,526 $396,297 $404,222 $412,307 $420,553

Debt Service -236,370 -236,370 -236,370 -236,370 -236,370 -236,370 -236,370 -236,370 -236,370 -236,370

BT Cash Flow $108,630 $115,530 $122,568 $129,747 $137,069 $144,538 $152,156 $159,927 $167,852 $175,937

Interest -181,951 -178,594 -175,031 -171,248 -167,231 -162,967 -158,439 -153,633 -148,530 -143,112

Depreciation $4,000,000 $101,265.82 $101,266 $101,266 $101,266 $101,266 $101,266 $101,266 $101,266 $101,266 $101,266

Taxable Income $61,783 $72,040 $82,641 $93,603 $104,942 $116,675 $128,821 $141,398 $154,427 $167,929

Tax $15,446 $18,010 $20,660 $23,401 $26,236 $29,169 $32,205 $35,349 $38,607 $41,982

AT Cash Flow $93,184 $97,520 $101,908 $106,346 $110,834 $115,369 $119,951 $124,577 $129,246 $133,955

****

BT UNLEVERED IRR 9% -$4,300,000 $345,000 $351,900 $358,938 $366,117 $373,439 $380,908 $388,526 $396,297 $404,222 $5,211,560

BT LEVERED IRR 16% -$1,242,813 $108,630 $115,530 $122,568 $129,747 $137,069 $144,538 $152,156 $159,927 $167,852 $2,679,505

AT UNLEVERED IRR -$4,300,000 $93,184 $97,520 $101,908 $106,346 $110,834 $115,369 $119,951 $124,577 $129,246 $133,955

AT LEVERED IRR -$1,242,813

Inflation 0.02 1.02 $0

Assumptions:

RETaxes $1.65 psf/yr

CAM $3.00 psf/yr General Inflation Rate of 2% applied to both rents and expenses

EOY Bal $3,002,768 $2,944,993 $2,883,654 $2,818,531 $2,749,393 $2,675,989 $2,598,059 $2,515,321 $2,427,481 $2,334,223

PRO FORMA CALCULATION

Gross Potenial Income $630,000 Cap Rate 8% Loan Amt w/ LTV $3,057,188

Less: Vacancy Allow -3% -$18,900 Loan Rate 6% Loan Constant 0.0773

EGI $611,100 DSCR 1.20 Loan Amt w/DSCR $3,718,498

CAM/RETax -$279,000 LTV 75% Value $4,076,250

Cap Expenditure $0.10 -$6,000 Amort 25 year

Vacancy 3% Exit Sale $4,799,253

Net Operating Income $326,100 Cap Exp $0.10 psf/year Exit Cap Rate 8.50%

Cost of Sale 3%

Debt Service -$236,370 Project Cost $4,300,000 Land Value 300,000

Depreciable Life 39.5

Cash Flow $89,730 Initial Equity $1,242,813

Tax Rate 0.25

Mortgage Balance $2,295,685 Cap Gains rate 0.2

End Yr 10 Depr Recap rate 0.25